Tough Decisions

[debilorrah]

Ok someone is going to HAND you a feed store and you are questioning that? Did I get that right?

 

[justbugged]

I have to say that you and BF will both work a lot more than 50 hours a week if you own the store. There is a lot of paperwork besides just manning the front counter and loading feed into people’s cars. Someone already mentioned about the lack of documentation being a big flag for needing to know if this lady has been paying all the taxes on her business. Because if she hasn't and you take over then you can possibly become libel for any unpaid back taxes that the previous owner hasn't paid. The IRS doesn't care who was responsible for the taxes not being paid, they will just come after anyone that is associated with the business. I also get the feeling that you have probably not ever been paid with a check. That would tell me that things like insurance and state and federal taxes have not been paid. It won’t hurt to check with the city to see if they have any input about you taking over this part of her business.

Another thing you want to make sure of is that the agreement you have with her is in writing. I repeat Get everything in Writing!. It won't hurt anyone, and it will save everyone a world of hurt if something goes wrong. This includes the agreement that you will have with your BF concerning the running of the business. It doesn't matter how much you love and trust the other person, it you have it in writing then there is so much less chance that something could be misunderstood, or mismanaged. You will also have to figure out how the two of you will man the store for all of the hours that it is open. I can't see how the business will support any employees anytime in the near future. Beside there are two of you to do the work.

I would also ask about what she plans to do with her side of the business when she passes. If she has no family, then it is possible that part of the business could be held in limbo, until the state figures out who might own it. It is also possible that it could be held by the state indefinitely. I am curious as to whether or not you are going to just buy her stock and take over the rental of the store, or if you are going to buy the business name and ETC also? Sometimes it is just easier to start a business from scratch, than try take over a business that has a large new debt right from the start of your ownership.

Okay I figured that is enough of the negatives about the opportunity. My first reaction to your first post was Go for it. It sounds like you can't go wrong, and that you will always regret not taking the chance. It is a great idea about opening a pet photography studio upstairs. I can see that bringing in some more income.

 

[NYboy]

I own a business in the animal field. most important is what is the income of your clients? When money gets tight pets are one of the first things people cut back on. Change the name of the business ( something close to old name) get LLC. This way you are not responable for her old bills or taxes. You will be working 4 times longer and harder! I dont know about your state, but Ny kills a business owner with all the diffrent insurance they make you carry. that alone can really add up.

 

[cmjust0]

Most opportunities are once in a lifetime opportunites, and they almost never fit into our plans. My experience has been that if you take advantage of opportunites as they come, you can usually decide later to walk away and not be much worse for the wear. If you walk away now, though, you can almost never decide later to not not take the opportunity you passed up.

 

[ranchhand]

Quote:
This is a HUGE red flag. Does she pay taxes? That alone will tell what the profit is or is not.

I agree with Sonoran, this is what first shouted at me. The current owner probably has other income that is not being mentioned.

I'd jump at the opportunity, but only after some careful professional research. Remember the adage, if it seems to be to good to be true.....

I DO hope it becomes a dream come true, but please be very careful!

for you!

 

[lorieMN]

check out what needs to be checked on,,but in my experience,,sometimes you have to jump and let fate do its thing..