short a local biz
 

What if I see a local shop opening up and I know that it is going to fail and fail quickly...how can I profit from this?

Re: short a local biz
 

If an entrepreneur invests in a small business and it fails, he loses his investment. There is no way to profit from this aside from buying stuff at a discount when it comes time from him to liquidate.

Re: short a local biz
 

This one is WAYYYYY far-fetched, but it's the only thing that I can think of that's even possible (and I think that this is maybe a 1% shot at best):

Go explain it to the owner, figure out a way to help him liquidate somehow and lose less money, negotiate yourself a percentage of the loss-savings?

Re: short a local biz
 

you could just make some sort of bet with the owner, ie. you would book his action. it could be a cheap way for him to leverage his business.

Re: short a local biz
 

[ QUOTE ]
What if I see a local shop opening up and I know that it is going to fail and fail quickly...how can I profit from this?

[/ QUOTE ]

Ask to "borrow" the business for a year. Sell it. When it fails, buy it back at a discount, pocket the difference, and return it to the original owner.

eastbay

Re: short a local biz
 

[ QUOTE ]
Ask to "borrow" the business for a year. Sell it. When it fails, buy it back at a discount, pocket the difference, and return it to the original owner.

[/ QUOTE ]

could this actually be done legally/practically with a privately owned company?

i'd imagine when you "lend" your company you're also "lending" all rights to control it which would make it stupid to lend out a company you're trying to run, but i imagine it could at least theoretically be done with a portion of the company?

Re: short a local biz
 

[ QUOTE ]
[ QUOTE ]
Ask to "borrow" the business for a year. Sell it. When it fails, buy it back at a discount, pocket the difference, and return it to the original owner.

[/ QUOTE ]

could this actually be done legally/practically with a privately owned company?

i'd imagine when you "lend" your company you're also "lending" all rights to control it which would make it stupid to lend out a company you're trying to run, but i imagine it could at least theoretically be done with a portion of the company?

[/ QUOTE ]

Theoretically, maybe, but I was kidding.

eastbay

Re: short a local biz
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Ask to "borrow" the business for a year. Sell it. When it fails, buy it back at a discount, pocket the difference, and return it to the original owner.

[/ QUOTE ]

could this actually be done legally/practically with a privately owned company?

i'd imagine when you "lend" your company you're also "lending" all rights to control it which would make it stupid to lend out a company you're trying to run, but i imagine it could at least theoretically be done with a portion of the company?

[/ QUOTE ]

Theoretically, maybe, but I was kidding.

[/ QUOTE ]

i figured you were, but it might not be impossible. am i dumb?

Re: short a local biz
 

[ QUOTE ]
Theoretically, maybe, but I was kidding.


[/ QUOTE ]

LMAO!! I have a friend named Albert, he specializes in BBQ restaurants. As soon as a new one goes up in town he goes to the owner and tells him to call him when he is ready to sell. Naturally the restaurant fails, Albert pays pennies on the dollar, puts his well known name on it, runs it for 3 to 6 months then sells it for a massive profit.

The great thing is that sometimes he rebuys the same restaurant three or four times, profiting on each exchange.

Jimbo

Re: short a local biz
 

on second thought, the lack of liquidity could be a slight problem [img]/images/graemlins/laugh.gif[/img]