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.
“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).