How have you overcome not having a certain license to operate the business?

by a searcher from Michigan State University

1 year ago

Does anyone have experience acquiring a license that is required for operating a specific business (e.g. glazing, landscaping, etc.) where the license typically takes several years of industry experience to obtain? I'm in CA where it seems they're strict on this? 

I have come across Responsible Managing Officer (RMO) agencies that connect you with someone where you use their license. Is this a typical route?

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searcher

Also here in Texas you can get a Contractor who is considered a Master and use his license and pay him a fee.
He or she would ultimately be responsible to for the job.

7 months ago | like reply | 0 likes

lender from Eastern Illinois University

I agree with Logan. If you have a key employee with the credentials that you can get on an employment contract, that will work. Having a partner, even if a minority partner, that has the required licensing and could step in can work as well. Having the seller that holds the license remaining an owner in the business can work as well. Not that you are looking to use SBA financing, but now that the SBA allows partial business acquisitions you can keep the seller in for less than a 20% ownership interest and they would not need to guarantee the loan and you could continue to use their license to operate the business and technically you can give them an employment agreement for as long as you want as they are still an owner. Happy to talk through strategies at any time here or at --@----.com Good luck.

1 year ago | like reply | 3 likes

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