Advice appreciated

[Netty]

Does anyone have any comments/experience to share regarding running your own business.

Not exactly work at home - but a friend has the opportunity to take over an existing business. Rented premises, all office equipment etc included. They are confident they can do the job, and I would probably be helping with admin, (typing letters, etc) either in the office (about an hours drive from here) or, hopefully from home.

Business at the moment (has been going approx 10 yrs I think) is doing very well, and no reason that things should change in the near future.

Just wondered what hidden costs there may be, ie how much "working capital" is reasonable etc.

Any comments appreciated.

[choice]

I should imagine if the business is established a look a the books will reveal all the hidden costs. It depends tbh what it is doing as to the costs etc. Sorry might not have helped at all!
Vicki
x

[babybiz]

Before jumping in your friend really needs to look at the books to see what is going on and then to do a future prediction. There is no right or wrong figure it all depends on the business but owning your own although tough is really rewarding :) Good luck to her but just advise her to make sure she's 100% confident about it before she takes it on :)
Tashxx

[Netty]

Thanks, it's an IT recruitment agency, basically, so providing his existing clients stay (a few large companies, locally) it is a case of interviewing people wanting to get/change jobs and then matching them with vacancies, or chasing companies up, I guess, for placements. Friend confident on that score (can talk to anyone, lol - especially about computers etc!).

She does have to get the books, thats in the pipeline, I think - and will obviously show office costs (rent/rates/electric/phone etc and office supplies) just wondered if there were other obvious outlays, or is it a case of having some money to live off until the cash flows in - instead of out!

Present owner has made it work very well - seems almost too good to be true ....

[babybiz]

Thanks, it's an IT recruitment agency, ...

DH is a recuritment consultant for the building industry, will ask him what he thinks.