Hi everyone,

I am a student and a part-time employee at a small shoemaking shop. My boss is planning to retire soon and he is looking for a buyer for his business. I have been working at this shop for 3 months now and I really enjoy it. I have learned a lot from my boss and I have a good relationship with the customers.

I have always dreamed of owning my own business and I think this is a great opportunity for me. However, I don’t have enough money to buy the business outright. My only income is the salary I get from working at the shop.

I am wondering if anyone here has any advice or experience on how to buy a business from your boss. Is there a way to finance the purchase with a loan or a partnership? How do I negotiate a fair price and a smooth transition? How do I prepare a business plan and a budget?

I would appreciate any help or guidance you can offer. Thank you for reading.

  • kcsstrategy@alien.topBEnglish
    1·
    1 year ago

    I would ask him to stay on as a silent partner for a while. There is so much you don’t know since you’ve only been in for 3 months. A business like this is very hard to sell so I wouldn’t worry about a line out the door. Is he in good health? Can you count on him being around? Is there any debt? Are you in a lease? What assets does the business own? The other thing to remember - and this is shitty - if he can’t sell the business then the business will just close. Leaving a space, and a clientele who wants the service. You could wait for that day and scoop it all up at a discount. However, I don’t recommend that as your first choice. The first choice would be continued mentorship, a silent partner, and he gets a monthly or annual payout from you for his help.

  • Bob-Roman@alien.topBEnglish
    1·
    1 year ago

    “A small shop built on the ground up.”

    If business owns its premises, the owner may be willing to sell you the goodwill or cash business.

    Here, boss retains property ownership and you pay what is referred to as NNN or triple net; monthly rent, liability insurance, and annual property tax.

    He may also be willing to do seller financing. Here, you would make a down payment (i.e. 20 or 30 percent or more of market value) and he loans you the remaining amount and charges you interest on unpaid balance like a bank would.

    Downside

    “Most of the competitors are closed and retired.”

    Reason for this is shoe cobblers is an industry that has been in decline for a long time.

    This is due primarily to shoe design (solid heels, throwaway) and economics (China).