For context I work at a small coffee shop . They have been established for 15 years… before Covid the business isness was VERY busy . The coffee shop to be at. During Covid the company had to switch managements and business began to decline . Right now it pays enough to operate and pay employees (this includes myself)
I’ve been working there for 2 years. I recently expressed to my boss I want to start my own business venture but I don’t know if the time is right . I love what I do and the neighborhood I’m in. I find a lot of joy in building and creating a community . She saw this and my dedication and hope for the place and offered me half of the business ess and profit made from it.
What am I getting myself into? I feel this offer is amazing and something I would really love doing. I’m young and don’t have much to loose… or maybe I do and that’s why I’m posting. I’m willing to invest 7k into the company but nothing more. But a lot of my time and dedication would be to bring business back in .
What do I need to think about ? Pros and cons?
There isnt such a thing as luck. When you are prepared to take advantage of opportunities, others might see it as luck. And you are prepared when you have the education or experience to do so.
Gross sales of $860K for a coffee shop is significant. Unless the rent is ridiculously high, I have little doubt that this can be turned into a very profitable business. It sounds like your boss does not know what she is doing. She took over a profitable business and made it unprofitable. Then, she offers you half, when you don’t even know what a CPA is. This is going to be a blind leading the blind situation.
Again, opportunity is seized by whoever is prepared. If your boss offered 50% ownership to me, I have the experience and ability to bring this back to profitability. On the other hand, you definitely lack the knowledge and experience to do this. I do not believe this is an opportunity you can take advantage of this current moment.
The current moment is not forever. I wasn’t born knowing what I know, and a hard working person like you is fully capable of learning everything I did. If you have a few months to make the decision, you can try to take some online accounting courses, and basic brick and mortar courses. No, I did not go to school for this. And people who go to school for it are not necessarily qualified to run a business. It will be very different from what you have done before, and you might find you don’t want to do it. And that is ok. But if you find that this is something you enjoy and want to do, I know you will succeed.
Lastly, my guess right now is that the store is overstaffed and you can bring it to 2020 profitability by figuring out how to schedule shifts properly. That is likely the biggest factor, and you’ll have to figure out the rest. If this is something that you are uncomfortable doing, I suggest you do not take this deal.