Home – New Forums Other discussions Attention sole traders looking to retire/ sell out of their small business Reply To: Attention sole traders looking to retire/ sell out of their small business

  • Total posts: 3
bb1, post: 210431 wrote:
I can see the benefits for the apprentice, gets to try out the business, and if they like it, take up the option.
The drawback I can see for myself is you are open to tyre kickers and time wasters just looking to fill in X months of time and than move on.

As an example you broker a deal between me and joe blow, that joe works for 6 months than has the option to buy. I teach joe the ropes for the 6 months, he learns all my tips and tricks, gets familiar with my client list. 6 months is up, and Joe says no not interested, but has gained heaps of experience, great benefit for Joe.

but for me I am 6 months down the track, invested time in Joe, because jobs just take longer when trainging someone, I still want to sell the business, but Joe is gone I have paid my money to you, and I have to start the sales process again. Plus I run the risk that Joe takes of with my client list, and approaches them on the side.

I can only see benefits for the prospective purchaser and heaps of drawbacks for me, who after 6 months am left trying to sell the business.

Initial thoughts are no

This is great feedback that I will incorporate into the plan.

I am designing into protections for seller so there is more upside and downside is mitigated. Examples are shorter trial period then apprentice must opt-in to purchase. if joe was to pull out then TMA could purchase and match with another apprentice. The contract would have non-competition clauses prevent apprentice from starting side business in same area. The main upside is that the sole trader is able to get value out of a business he/she has worked many years instead of just walking away with nothing.

Once again thanks for insightful feedback from ST perspective.