iv been offered to take over a business

yogimotorsport

Ok im a 24 year old qualified mechanic,i was a service manager in my last job in a main dealership for 3 years i recently left due to down sizing of the business from main dealership to independant garage,my plan was to travel or work in London or australia had it all planned.
My boss/old boss has decided to retire fully from the motor industry but rather then seeing the garage close down and lie abandoned he has offered it to me to take over trading under a different name but with the same objective to sell and repair cars,
The deal is that i pay him a very small weekly rent and work on my own,all lifts,computers,tools etc come with the deal and he will pay water rates,insurance and council rates( because its his building and his pride wants it to stay open,he knows that a sale is unrealistic)
I dont know if im here looking for advice or reassurance:D
Would i be mad at 24 to take over a garage in these economic times?what would i need as in must i declare as sole trader?how would this affect my tax payments,or is there anyone that could help me as im going from unemployed to a business owner?

yogimotorsport

yogimotorsport wrote: »

Ok im a 24 year old qualified mechanic,i was a service manager in my last job in a main dealership for 3 years i recently left due to down sizing of the business from main dealership to independant garage,my plan was to travel or work in London or australia had it all planned.
My boss/old boss has decided to retire fully from the motor industry but rather then seeing the garage close down and lie abandoned he has offered it to me to take over trading under a different name but with the same objective to sell and repair cars,
The deal is that i pay him a very small weekly rent and work on my own,all lifts,computers,tools etc come with the deal and he will pay water rates,insurance and council rates( because its his building and his pride wants it to stay open,he knows that a sale is unrealistic)
I dont know if im here looking for advice or reassurance:D
Would i be mad at 24 to take over a garage in these economic times?what would i need as in must i declare as sole trader?how would this affect my tax payments,or is there anyone that could help me as im going from unemployed to a business owner?

Sounds like a great opportunity for you. Grab it by the horns and give it a crack for 6 months and see can you make a nice profit. If not Australia will still be there...
Check the books first though and see what the place is turning over. If its making a big loss as it stands mightnt be the best idea as it would be tough to turn around

blue4ever

Before you grab it - and I'd suggest you do:
Have a look at the accounts for the previous business to see that the potential t/o.
Have a look at the VAT filings (see if there's and discrepancies;))
I'd strongly suggest a limited company, to at least arrest some of the potential liability.
Look at the insurance side - both indemnity and normal cover
You are 24 - have a look at the open plan insurance costs/ trade cover.

Discuss the costs with the previous owner, line by line - and see if any will be different if you take them over.

But - the best of luck with it.

C

ssbob

Get a good accountant. Look thrrough the books. You will need to distinguish a cut off point so that when you take over the business then suppliers of your boss will not coming knocking on your door looking to get paid.

If you are in Cork feel free to PM me.