owning your own business - advice needed

[dragonflys]

I have a fantastic possibility of buying a small business, in something that i would really like to do.
It is an established business and the current owner is retiring.

What sort of questions to I need to ask, apart from last 3 years accounts etc? And what sort of things do i need to investigate?
The business is a small shop in a small town and has approx 4 part time staff.

Any advice would be appreciated. I am more than capable of running the business but have never bought one before so this is where i am uncertain.

Thanks : )

 

[Slinkyunicorn]

Get a local accountant and solicitor to look at things for you - will cost you but it may stop you from making an expensive mistake

 

[Nugget La Poneh]

Do plenty of research, find a good solicitor that deals in commercial sales which include employee handovers (I know of a very good, well respected one in Norwich if you want his details) as this will save you money in the long run. If you need a mortgage or loan you will need a watertight business plan, and frankly is best practice to have one even if the banks aren't involved as it can highlight any failings or opportunities

Also, not sure about retail, but I know in hospitality you need to allow about 30-50% of the sale price in contingency, and I should imagine you will need an independent stock auditor. If you are going through an agent, they should have copies of the accounts, or be able to get them for you rather than asking the current owners direct. Ask how they run it in terms of sole traders, partnerships or limited company. If you don't have an accountant, might be worth looking into as depending on what is currently set up, might determine profitability.

Check any websites and email addresses etc are being sold with the business.

There is lots more, but mind has gone blank!

 

[dragonflys]

Yes thank you, I will do that. Realised I should have put this in soapbox probably!

 

[TTK]

Get sound professional advice as above but also Just hang around outside & in the area and watch the passing trade (footfall). See how easy it is to park & how aggressive parking enforcement is - it may be no one will visit the premises for that reason alone. Look around for planning notices & search on line. You get the idea.