Business start up query

My siblings and I have been offered an opportunity to start up a business. It is proposed that a Service Station property be transferred into our joint ownership split four ways. Approximately 100k is required to get the business reopened. This includes about 30/35k to complete renovations and 70k working capital.
My querys are that as all four of us are PAYE workers, what is the best way to structure this business? Ltd Co./ Is sole trader possible with four individuals?/Unlimited company?

Also regarding getting finance would the property as security be enough to secure the finance from a bank or would we collectively be required to contribute personally?

Are we best approaching banks collectively or individually?Would prefer not to have to put personnel savings into business.

Advice greatly appreciated.

Mixing family and business can be dangerous. Do you have a business plan in place?

Best to go to your local County Enterprise Board & have a chat with their business advisor. Service is free of charge & s/he should be able to point you in the right directly.
[broken link removed]

I know of 2 service stations in the Limerick area that opened and closed within a couple of yeasr, both costing the owners a great deal. The margin was too tight for both, hours were too long and recovering the initial outlay on fixtures after closing was impossible. The only model I think works (i.e turns a reasonable profit) is the larger franchise type station with a lot of footfall. The family connection could end horribly if it all went wrong. I'm no expert in this field but IMO I'd run a mile from this.

I agree that going into business with family can be hard but to be honest going into business with anyone is difficult.
Before you start get everyone together and set down the ground rules, i.e. who’s doing what and do family commitments take precedent over work (is it ok to take time off because little jonnie is sick etc).
The first legal agreement you need to trash out is the “what happens if it all turns ugly” agreement. That means you decide how and when you call it a day and how the losses will be split. After that the rest is relatively straight forward.

To the OP,

have you or your siblings any experience of working in a service station business?

Limerick Service Station

I would suggest that you contact an existing established operator like Amber Oil www.amberoil.ie or AppleGreen etc who would be good at evaluating the opportunity and also possibly supporting you through a franchise (or similar arrangement). I know from locations that both companies selected previously (including 'so called' run down areas), that they have successfully opened and re-opened previously closed down stations. Best wishes and hopefully you'll reserve me a free fill up when you are up and running!

Thanks for the well intended comments, although perhaps i wasnt to the point with my first post. There are no real issues with being involved with family in business. For every problematic family business there are many more success stories. I m aware of the tight margins that exist in the business. I m under no illusions, it has the potential to operate a profit but it is no goldmine either. A major international brand are interested in franchising the site and a lot of work has already been done.
My real query was really just about what business model would suit us considering we are PAYE workers and not really interested in opinions regarding the the viability of such an enterprise or the risks of going into business with family. There has previously been a Service Station on this site but never run to its full potential. Thanks again for the comments.

Hi Mcdanish
In my opinion a company would be the most suitable model for you. Your other siblings would be co-directors and shareholders. You should have a shareholders agreement which would outline the rules that you can all agree on e.g. salaries, exit strategy etc.
Given that you are all PAYE workers you may also qualify for the Seed Capital Scheme which gives business owners a tax relief for investing in their own businesses.

Best of luck
NumbrCrunchr