Buying a Business
Many people believe that running a business successfully is just a matter of hard work. That is wrong. Hard work alone is not enough! If you are looking to buy one, you should investigate it as thoroughly as if you are involved in a public takeover of a major listed company. Many are successful and provide a substantial living for their owner.
On the other hand, many may fail, leaving the owner in a desperate situation, often at the risk of losing the family home and other assets. You owe it to yourself and your family to be advised properly. Some of the issues that need to be addressed when buying one:-
- How does your takeover affect existing staff?
- Will I be responsible for their long service leave, sick pay or holiday pay?
- What Government fees (local and state) apply to the purchase?
- What do I get when I pay for goodwill?
- What structure should you choose? Sole trader, partnership or limited liability company.
- How important is my lease?