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?
See if you can get full financials for the business and get an accountant friend to look them over closely… Would you assume half the liabilities? What obligations (like leases etc) does the business have?
You know a lot about the business but the owner knows more about the actual financial picture. $7k may or may not be a fair price. How much work would the owner do? Would they expect you to do much more while he/she cuts back? You need to have some agreement that covers all these contingencies. So do an initial screen on the financials. Then if it still looks ok, get an experienced lawyer involved to think through the various scenarios and put together an agreement that covers you.