How to buy a small business?

Question

i am going into photography, and i am thinking of buying a small business in the future if i am successful. I am just confused about how you go about buying a business, as all businesses seem to be leasehold. I dont understand why you have to pay thousands of pounds to buy the property and then pay rent on top? Where does the money go. Just thought if you buy it you own it. Couldnt you just buy a house and get permission to do it from home instead. thanks

Answer 1

You are buying the business - the equipment, lease, contacts, assets etc. you are not buying the property.  The business is the commodity.

Answer 2

If you want to set up a business then you don't need to buy an exsting business - you can set up on your own.  

If you want to get premises you can rent rather than buy them.

There is no such thing as a leasehold business.   Leasehold iis a form of legal title to a property (the other common type is Freehold)

If you buy a business then you are paying for whatever assets it owns. In the case of a smal photography business the largest of these is probably goodwill - the value of the business' reputation, client base etc.

Answer 3

The main asset is a the business trade (customers). This translates into goodwill.

If you bought a shop Tesco you'd get all their customers, so they'd expect more than the value of the premises.

Answer 4

I take it you're in Britain. Contact the Inland Revenue Service and see what are the advantages and disadvantages of having a business in your home instead of paying rent for a shop.

Answer 5

Yes - do it from home. I feel the concept of town centre shops will die out over the next century.