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?

  • RunRide@alien.topBEnglish
    1·
    11 months ago

    This is both a huge opportunity but also a big risk. For starters, you need to look at all of the critical business documents. Profit and Loss statements, balance sheet, leases, bank statements, and on. If you don’t know what any of those are, start doing research. Ideally, you know a competent business owner who can help you with this.

    Things to watch out for: debt on the company, expensive leases that have a personal guarantee, relatives of the owner having an interest in the business.

    Also, you will need a partner agreement with the current owner. You are going to be ‘business married’ to them and you need to document exactly how the relationship is going to work. Who owns what? How are you paid? What if you want out? For this, you will want some of a lawyers time to draw up a fair one.

    Good luck!

    • heelstoo@alien.topBEnglish
      1·
      11 months ago

      In addition to this, find your own financial advisor and have them look at the documents and give you their opinion.

    • hueyflyer469@alien.topBEnglish
      1·
      11 months ago

      This is good advice OP, and if you don’t know how to do this, find someone you know and trust who does and ask for their help. If the business is doing decent, doesn’t have much debt, and you think you can add value to what they’re doing already, it could be a great opportunity. If they have declining revenue, aren’t making much profit and have sizable debt, not a good idea. So don’t make a decision either way until you see some numbers you are confident in.

    • MajesticBowler7178@alien.topBEnglish
      1·
      11 months ago

      Real question: by business married does this mean you also are personally responsible to pay any debt accrued prior to the business marriage?

      And how would one exit a potentially sinking ship on the risk side?