New preschool business

[NotAsYoungAsIWas]

I have the opportunity of buying the preschool I have worked at for the last ten years. I have never owned a business and don't even know the basics. Am planning on doing some research today but ANY advice would be greatly appreciated

leasehold or freehold or casual letting?

How much is it for sale at? How many places?

If you dont buy it then will it close and you can just open up a new one in the same space (thinking village hall type arrangement)

Is it in a building owned by a school?

The preschool is set in two halls rented from the local parish council. If I took it on I would continue to use the settings, the name and keep on all staff. My main concerns I suppose relate to the 'business' side of things - laws, paperwork, taxes etc etc. I know that the present owner will help initially but it's just taking that BIG step at 45!

Well first you need to see what security of tenure there is. What kind of lease is it on? You could buy it and then the village hall committee decide not to rent to you anymore.

How long have the other staff been there? What would the redundancy liability be if it folded?

Is it currently a limited company? If not what is it exactly that you would be buying?

Your LA will have specialist advisors who will be able to offer advice. Call them and ask for support. I cant see that the value will be much more than the value of the 2nd hand toys unless it is making a large profit (which is unlikely) . If they didn't sell to you then it would close and you could contact the village hall and asked to set up a new provision- so it doesn't have a great worth as a business. I also assume that they will be taking all the money out of the business- how will you pay staff etc as the grant comes in installments.

Lots of early years provisions is closing as the new minimum wages make it unaffordable.

pre-school are usually charities- are you sure that it isn't?

Seems odd that it has a large value? I'm a volunteer on the committee at our local nursery run in a village hall, it would be impossible to 'sell' it, it's a registered charity so I'm not sure it's even possible? there is not really much to sell, toys, reputation, name etc, but as far as I know you sell a business mostly based on profit, which bearing in mind the pittance the government pay for the free hours we have to deliver is non existent, in fact we have to fundraise to just pay the basics.

As far as I know it doesn't have a high value and there is no committee behind it. To my knowledge it's not a limited company and I'm not in it to make a lot of money (as I know it's not possible!!) I'm having a preliminary meeting tomorrow with the owner - I would like to know what to ask without sounding over keen (if that makes sense?)

Will you be able to deliver 30 hours? Is the hall free all day? If not you may struggle when that come in unless your parents dont qualify. Is there a chance the local school may open a nursery- lots of expansion in school nursery provision at the moment

Speak to the LA- they have specialist advisers,