People thinking of establishing a business can approach it in one of several ways. One is to start a brand new venture from the ground up, and another way is to take over a going concern. A North Carolina couple recently opted for the second method by purchasing an established swimwear store.
The retail operation had been up and running for over a decade and had developed relationships with many local swim teams and coaches. The owner was considering retirement and approached the couple about taking over the business. Although they were regular customers, the couple had no retail experience. However, they did have marketing know-how, and they were well known in the local community.
The couple immediately went about expanding the reach of the business. The store already attracted customers from as far away as Virginia, but the couple plans to improve the company’s online presence in an effort to cast an even wider net. The couple believe that building up walk-in traffic will present the biggest challenge. The location and size of the store are a disadvantage, and the quality and price of their merchandise is higher than the mass produced alternatives sold in malls and by big-box retailers.
Some of the most important business decisions are made very early on. The way a business is structured is of vital importance, and making an uninformed choice in starting up a business can have serious ramifications later on. An attorney with experience in this area may be able to advise a client about the relative benefits and tax consequences of the different forms of business entities. The attorney may also be able to assist a client who is considering a business acquisition.
Source: WRAL, “NC couple takes plunge, buys swimwear business”, Lisa O’Donnell, October 09, 2013