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Advice needed for taking over a shop

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  • 30-01-2014 11:21pm
    #1
    missygalaxy
    Registered Users Posts: 3 ✭


    Hi,
    I'm thinking about taking over a newsagents but i don't really know any think about Vat, Paye, Business rates. The other over heads (rent, wages electricty etc) i can work out the figures of & i reckon it's worth a shot. Any advice i'll gladly take but especially regarding Vat. When people say you get the vat back what does this mean or how does that work?
    Thanks :)


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    #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    It sounds like going out to buy a car, then driving it without ever having actually learned how to drive. You need to do two things first. Learn the business by working in it and do a Start Your Own Buisness Course. This will at least give you the very basics. You may not find it quite so attractive once you see what is actually involved.
    This may seem harsh but the reality of doing it is very much tougher!


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    #3
    Iwernia
    Registered Users Posts: 149 ✭✭Iwernia


    As long as you are prepared for seriously long hours to make ends meet. I have seen the demise of many a small newsagents & convenience over the last few years with costs going through the roof & margins going through the floor. Is there a similar size shop in a neighbouring town that you could ask for advice?


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    #4
    CIARAN_BOYLE
    Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    missygalaxy wrote: »
    Hi,
    I'm thinking about taking over a newsagents but i don't really know any think about Vat, Paye, Business rates. The other over heads (rent, wages electricty etc) i can work out the figures of & i reckon it's worth a shot. Any advice i'll gladly take but especially regarding Vat. When people say you get the vat back what does this mean or how does that work?
    Thanks :)

    You buy €123 worth of goods vatable at the standard rate (23%). You then sell those goods for €246. You then have to hand the revenue the difference between vat on purchases and vat on sales ie €23.

    A lot of small businesses get an accountant to work out paye/vat for them. If needed someone here can recommend one for you.


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    #5
    Markcheese
    Registered Users Posts: 8,484 ✭✭✭Markcheese


    Do you have an accountant ??
    I'm guessing not one you can talk to, otherwise you wouldn't be on here ??
    Do you have access to the books of the current business ?? Why not .. And can you get someone (like a decent accountant) who can understand them PROPERLY..ie what's not written in them ... Also what are you going to do differently to the current management ?
    Longer opening hours will only work if there are customers around to make it worthwhile... And it'll probably be you doing earlies and lates cos it mightn't be worth paying staff...
    Run with the idea for now.. Even if you bail before you commit you'll find out what you don't know..
    Go and use other business's on the street/area,at different times of the day. talk to their staff or operators you'll get a
    feel for what's happening and what time and type of customers are around...
    The rates bill will listed on the business's accounts... On top of that you'll have to pay water charges,refuse fees, insurance for the business and probably building insurance for the landlord... Thats before you get to phone, power ,public liability ,staff liability ect ect ect .. and find out about length of lease and rent reviews..
    In saying that nothing ventured nothing gained,just don't be afraid to back out just before you fully commit
    If it does suit...

    Slava ukraini 🇺🇦



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    #6
    Markcheese
    Registered Users Posts: 8,484 ✭✭✭Markcheese


    By the way everything has a vat rate .. Some are zero , most of what you'd be selling a lot more ... Basically anything you buy to use ,bags, services , shelving, esb ,phone ,company vehicle expenses you'll get the vat amount that you've paid to your supplier back from revenue....almost Everything else that you buy to sell you give the vat amount to revenue... So what you charge isn't what you get to run your business with it's what you charge less the vat that you've collected for the government...
    Might be a bit rambleing ,the vino is kicking in ...

    Slava ukraini 🇺🇦



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    #7
    DubTony
    Registered Users Posts: 3,269 ✭✭✭DubTony


    missygalaxy wrote: »
    Hi,
    I'm thinking about taking over a newsagents but i don't really know any think about Vat, Paye, Business rates. The other over heads (rent, wages electricty etc) i can work out the figures of & i reckon it's worth a shot. Any advice i'll gladly take but especially regarding Vat. When people say you get the vat back what does this mean or how does that work?
    Thanks :)

    I hope you're not spending any money to get into this shop.
    With respect, you seem rather clueless. There's a hell of a lot more to running a shop than what you've outlined above.

    Search through my previous posts in this forum. There might be something useful in them for you.


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    #8
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    You may not think you gave much information away in OP but from it its clear that it is a bad idea at the moment as it seems you have no relevant newsagents experience and no relevant general business experience which combined makes it a really unlikely to work out well. As Peter says get some relevant experience and go on a start your own business course and then see if you still think its a good idea.


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