business offer , should we go for it? long but need advice

[*charmalea*]

1) If you were to take it, I'd def move closer. You would both be working longer hours than you imagine (but you don't mind if it's your business!)

2) Is it the SAME business DH works in now? sotra - DH works for a comapny - larrys business is a self employed business been running for 23 yrs

3) If so - will Mercedes allow this deal to happen? What sort of agreements are there already in place? I'm reading it as Larry has a separate business - yeah? yes larrys business is different to merc , mainly older cars out of warranty , Merc has nothing to do with it once DH has left and quit BUT it would be wrong if DH was fixing mercs outside of work if he was still working there .

4) That is a CRAPLOAD of tools to hand over....included in the lease yeah? yes inc in the lease , if he was to sell it would be $55 g all up inc tools , and the name etc . but we dont have the money to buy as we have no collateral of savings to buy outright


5) I understand they have the books, but I'd recommend a business expert/growth expert take a look at the books too.- yeah we though about that

6) I'd also get an IBIS report or something similar revealing the state of the luxury car industry. If Mercedes are cutting costs, I'd assume this new business would have the same issues Merc has.

im not sure if he have the same issuses as merc, hes not dealing with selling cars which is where car comapanies struggle . if anything as his prices are cheaper, people start to seach for a cheaper mechainic to fix thier car , merc has a huge mark up and charge a crap load per hr , Larry charges $100 in gst and its just larry , no staff. Larry doesnt do brand new cars , only out of warrnty and after market parts/OEM.

7) Once Larry leaves the business will be different - are there staff to deal with?
no, no staff , its just him doing the work , his wife does the books . DH can take on a part timer /apprentice if he needs a hand later on

8) You would need to be a bit more than a receptionist to make it worthwhile - can you do accounts/invoicing etc? yeah i ment all that , id take a course in bookkeeping to help out DH

9) Did it turnover $100k, or was that profit?
it was $100k income

Jeez, got enough questions Lulu?

keep em coming .

regaruing the house , we dont have to live there we thought about a unit nearby .

[Lulu]

6) If people are slowing down buying the cars that you will the in future be servicing, this will impact - maybe in 3-5 years, but it will impact. Get the IBIS report on the state of the 2nd hand car industry and service industry. Don't automatically think people will search for a cheaper mechanic, it's not necesarrily true at the upper end. In fact lots of people feel happier paying more iykwim? This is where the IBIS report comes in.

8) As part of handover, get the wife to train you in the books - a course will come in handy later but that's the bestest training you'll get to start with

9) DO get an independent expert to look at the books - WELL worth any $$$ it will cost you. Not necesarrily an accountant, a business growth expert...

[*charmalea*]

thanks Lulu , i will be meeting the wife this week .

what does IBIS stand for how do we obtain a report ?

[Lulu]

Hmm, not sure - I belong to a Business Enterprise Centre and get them freeeeeeeee woo hoo! Maybe Google IBIS World and go from there? It dpesn't necesarrily mean you shouldn't go for it, you might just have to adjust your approach with the knowledge of whats ahead.

I think the first port of call would be finding a business enterprise expert - they can lead you from there. They should be good (if they know their marketing etc) for helping you though the 'Under New Management' stuff - making sure people know there is a 'Merc trained Specialist' on board - that Larry has happily handed on the business because he knows his customers are in good hands yadda yadda yadda...

[*charmalea*]

thanks for the advice Lulu , we are into our 2nd week of business and tripled what we estimated to get us by so fas so good !!