# new to av



## marc anthony (Dec 5, 2012)

I want to buy a friends home theater business. Can anyone tell me where i should start.


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## Tonto (Jun 30, 2007)

Wow, I am certianly not a busness guru, but I wonder right off the bat what could be the value of such a business. Is he selling his equipment for setting up/calibrating HT's? Does he stock an inventory of stuff? I think we need a bit more information on the deal.


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## marc anthony (Dec 5, 2012)

business is about 8 years old. 2 employees. averages about 300000/yr in revenue. stocks some equipment. business is appraising around 100k-160k. includes all equipment and office space.


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## Wardsweb (Apr 2, 2010)

As with any business, you need to do some research on the different levels of home theater, make a determination where you want to align yourself and come up with a business plan. Just buying a company does not guarantee long term growth or income. 

You have to determine how involved you want to be in the day to day operations. The more removed you are, the more important it is to have someone in your place that knows what they are doing. This translates to money. Labor costs are your number one business expense. 

Get with your bank and see what line of credit you can get. You don't want to fund the business cash flow out of pocket. 

I've just glanced over the tip of the iceberg. There is a lot to think about and get aligned when running a business. It should not be taken lightly or quickly. You have a lot of homework to do.


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## Mike P. (Apr 6, 2007)

Welcome to the Home Theater Shack, glad to have you with us!

Thread moved to AV Home Theater forum.


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