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

November 29, 2023

by a searcher from Michigan State University in Los Angeles, CA, USA

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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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

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 redacted Good luck.

Reply by a professional
in Saskatoon, SK, Canada

Taking the route of using someone else's credentials is often the ONLY route available in your spot. You don't have to use an agency to accomplish this though. If you have the contacts, send feelers and structure a deal that is mutually beneficial.

Good Luck!

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