Buying an existing business????

I have an oppurtunity to buy a barber shop (I work there and my boss is retiring and selling) He gave me a wonderful offer of $5000.00 for it all. The building is in a shopping center and is leased. As of now the rent on the building stands at the same price as it was 25 yrs ago due to rent control. This barber shop has an excellent customer base (mine included). My question is: What do I do to get the ball rolling? How can I make it a smooth transaction? I am 25 yrs old and have an excellent oppurtunity that I cant pass up. Thanks in advance

Normally, the sale price of a barber shop is 1x to 1.2 x annual gross earnings. You can discuss the purchase with your boss by giving him some cash up front and the rest on a monthly basis over three years. In addition, ask him to stay working in the shop for six months or 1 year to help you with the transition. If you don't have enough cash up front, discuss it with your boss how you can pay him monthly over three years and a lump sum at the end. The most important part is to have this transaction in writing. You may want to have one condition to have your boss continue to lease the place and sublease it to you.

Equipment is probably leased, so just take over.

Good luck

The $5,000 is for goodwill and if you were working there and he wants to leave the cost should be only for the equipment if it's worth it.

ok, building is leased, you want to check that the lease will continue under the same terms for you, and check what terminating the lease would cost if the business doesnt do as well.

Check what equipment is owned and what is part of the lease.
Check what license you need to operate. Health department and state sales tax.

The price normally includes goodwill, and equipment and is often based on the income of the business. If you are confident that the customers will stay with you it sounds like an excellent deal.

It might be wise to pay a lawyer to check the business sale, making sure you dont buy any liabilities(debts)

Put up a sign announcing the bosses retirement and saying you are taking over the business and you appreciate their future business.