You did not give the price but you want to know what to do. Without that information, it is impossible to help you.
The items you mentioned are very inexpensive and have little value except that they are already there, but they have some great disadvantages. Customers will think that you are the same company. There may be 40,000 customers, but they will think you are the same company. They will either not shop your booth because they have decided not to patronize the old company, or they will come expecting their very specific favorite items, not yours.
If you are not offering the exact products, a full change in looks is more appropriate. This is the only way to get that "Grand Opening", new business curiousity and excitement.
The former business will be doing a big campaign to attract their old customers and they will get them.
In essence, what you are buying is a sublease of the rights to that type of product. Have you been approved by the market and is a sublease allowed?
The value of the license is nothing, as you must have your own. You cannot buy someone else's business license. Fees will be paid by you again. Have you contacted the health dept? Also, you will be subject to any code updates that were not necessary for the former business, as they may have been grandfathered in to an old code.
What you are really buying is the rights to a certain type of product with no direct competitors. But this may also be subjective. You could get competitors based on a different value of product.
I have just done something similar in a high end market, but here are the legalities. Some of the vendors offer similar products, but they are not offering a certain level of product in their exclusive lines. I now have a contract for, "all things gourmet", making my product different, but not unique. Now there will be competitors with different price points. These options are strictly controlled by the market.
In our market, the vendors can sell their businesses as ongoing, but in these cases as with any where fixtures and decor are purchased, the value is in the intent to run it as an ongoing business, not a new one. Yes, it is cheaper to just walk in, but to keep it looking the same and change the product will not be your best move.
The demand for that volume will change everything and you absolutely will not be able to do it yourself, bringing you to another dilemma. You will need employees. Now your house has become a business, you must re-zone to commercial and your taxes will go up. You have many more requirements with an employee and in many cases, this is strictly forbiddden in a home kitchen situation. This means you must bake everything for that volume by yourself. You will then need an employee that will represent your business for a relatively low income. Good luck with that. The quality of the work force has deteriorated. Control over cash will be none.
You cannot bake all night, import products, work all day, close down, and do it again 4x per week. This new venture with employees requires a business/accounting plan to determine feasibility. Have you done a sf calculation and compared it all other options? Also, if the bakery does not get a buyer before they close, that space with improvements will be completely free except for a new lease. Have you seen their lease? hav you talked with the market? I'm sure they must approve you.
Do you have the capital for the venture? You will need to have equipment capable of providing for this capacity. This means costs plus you plus profit after taxes. Again, this is math, not a feeling or opinion. If you can't do these calculations, hire someone who can. If you have to hire someone for this, then you will also need to hire a bookkeeper/accountant... another ongoing expense not necessary with a home business. Home business finances are forgiving but retail miscalculations because of a lack of business experience can be devastating.
Remember, they started this venture from scratch, but you are buying an ongoing business with the intent to change the product and not the look/name. This is not a normal business path.
The items you mentioned are very inexpensive and have little value except that they are already there, but they have some great disadvantages. Customers will think that you are the same company. There may be 40,000 customers, but they will think you are the same company. They will either not shop your booth because they have decided not to patronize the old company, or they will come expecting their very specific favorite items, not yours.
If you are not offering the exact products, a full change in looks is more appropriate. This is the only way to get that "Grand Opening", new business curiousity and excitement.
The former business will be doing a big campaign to attract their old customers and they will get them.
In essence, what you are buying is a sublease of the rights to that type of product. Have you been approved by the market and is a sublease allowed?
The value of the license is nothing, as you must have your own. You cannot buy someone else's business license. Fees will be paid by you again. Have you contacted the health dept? Also, you will be subject to any code updates that were not necessary for the former business, as they may have been grandfathered in to an old code.
What you are really buying is the rights to a certain type of product with no direct competitors. But this may also be subjective. You could get competitors based on a different value of product.
I have just done something similar in a high end market, but here are the legalities. Some of the vendors offer similar products, but they are not offering a certain level of product in their exclusive lines. I now have a contract for, "all things gourmet", making my product different, but not unique. Now there will be competitors with different price points. These options are strictly controlled by the market.
In our market, the vendors can sell their businesses as ongoing, but in these cases as with any where fixtures and decor are purchased, the value is in the intent to run it as an ongoing business, not a new one. Yes, it is cheaper to just walk in, but to keep it looking the same and change the product will not be your best move.
The demand for that volume will change everything and you absolutely will not be able to do it yourself, bringing you to another dilemma. You will need employees. Now your house has become a business, you must re-zone to commercial and your taxes will go up. You have many more requirements with an employee and in many cases, this is strictly forbiddden in a home kitchen situation. This means you must bake everything for that volume by yourself. You will then need an employee that will represent your business for a relatively low income. Good luck with that. The quality of the work force has deteriorated. Control over cash will be none.
You cannot bake all night, import products, work all day, close down, and do it again 4x per week. This new venture with employees requires a business/accounting plan to determine feasibility. Have you done a sf calculation and compared it all other options? Also, if the bakery does not get a buyer before they close, that space with improvements will be completely free except for a new lease. Have you seen their lease? hav you talked with the market? I'm sure they must approve you.
Do you have the capital for the venture? You will need to have equipment capable of providing for this capacity. This means costs plus you plus profit after taxes. Again, this is math, not a feeling or opinion. If you can't do these calculations, hire someone who can. If you have to hire someone for this, then you will also need to hire a bookkeeper/accountant... another ongoing expense not necessary with a home business. Home business finances are forgiving but retail miscalculations because of a lack of business experience can be devastating.
Remember, they started this venture from scratch, but you are buying an ongoing business with the intent to change the product and not the look/name. This is not a normal business path.
