leasehold

[brighton]

I'm in the early stages of looking to start up a business and need some info on leasehold

 

[Jayne]

What sort of info' exactly?

Jayne

 

[brighton]

like what exactly is it .. a one off payment so for eg £30000 for a shop am i buying the stock or just somebody elses customer base

 

[Jayne]

When it says it is leasehold, it means you will pay rent on it.

So if you were buying a business at £30,000, you would pay that and then you would have rent to pay too.

Did they tell you if it would be a new lease? Or are you taking on an existing one?

Jayne

 

[brighton]

an existing one.. basically tired of working for other people and not getting rewarded so looking at ideas for myself one of which is a bridalwear shop . i have experience in fashion retail management at top end high st and also a small independent boutique... I just dont know where to start other than I can sell!!

 

[Jayne]

Right then, when a business is being sold as leasehold, it means you will have a landlord and rent to pay, you are only buying the business bit.

When a business is being sold Freehold, it means you would be buying the building and business (no rent to pay! Possibly a big mortgage instead..lol)

Before you buy a biz, ask for a copy of the draft figures of the books. If you don't understand these, an accountant will be able to look at them for you and explain them to you.


Most of all, take your time and don't rush into anything.

Jayne

 

[Jayne]

Oh forgot to say, if it says SAV in the sale notes, it's means stock at valuation, you will have to pay for this on top of the sale price! Sometimes stock is included, but not often, check first.

Jayne

 

[brighton]

it does say stock inc but how do i know if its a good price , what do i compare it to .. am i being really naive what are the benefits of buying someone elses business instead of starting up on your own

 

[gordonthegofor]

I would think established customer base is about the only up side of buying an exsting business

 

[Jayne]

When you moved into the business, there would have to be a stock check before you paid for the stock. You only pay for what there is and the people selling the stock would need to provide you with a copy of the stock check and cost of the items.

Your accountant would be able to tell you if it was a good price for the business, that's why I said to get one to look at the draft figures.

The benefits of buying someone elses biz, is that it's already built up for you and bringing in a good proven profit. It would be up to you then, to keep it that way.

Jayne

 

[gordonthegofor]

Jayne are you missing the bakery

 

[brighton]

thanks jayne you have clarified a few things for me..

 

[Jayne]

NO :lol:

I keep waking up early though :evil:

Jayne

 

[gordonthegofor]

Jayne that will pass in time (get well soon LOL)

 

[brighton]

one more thing if this business has been up for sale for a long time should i avoid it may this be down to price

 

[Jayne]

thanks jayne you have clarified a few things for me..

You are welcome, any more questions, just post on here and we'll look after you

Jayne

 

[gordonthegofor]

depends on the books eg profit

may be they were asking to mutch befour

but as Jayne says seek profecanal advice