Hi, I have a small business in the construction industry & am trading as a sole trader for the past twelve years. It has been a had slog all of the way, plenty of work in the boom but I didn't make a healthy profit at any stage. Really it has been a struggle most of the time & especially for the last few years.
I am down to one employee who has been working on a three day week and a lot of the time in the past two years weeks with no work on & off.
For the past eighteen months I have stated doing sub-contract work for a company dealing in the same type of work that I do. I have been doing work for this company two & three days a week and for the past while full weeks in a row.
This works out well as my employee carrys out the work for my own business which obviously keeps him in consistent work.
This works very well for me even though I do a lot of travel & long hours for the company I sub-contract to. The hardest part is maintaining my own business & at the same time working for another guy. I'm not complaining as I'm beginning to have a bit of money now in my business account.
Now the company owner wants me to commit to doing work for him more on a full time basis.
We've had a few brief meetings lately about this as his company has got a lot busier this last while and has a lot of solid contracts on his books.
In our last brief meeting he purposed to take over my business, including my employee and my existing work.
We are going to have a meeting to discuss this in detail early in the week.
I hope I have explained this well enough.
I am absolutely delighted about this but I need to know my stuff before entering into this.
I know I will have my accountant & solicitor involved with this but I just thought I'd put this up go get opinions on it.
My current employee just lives next door & he will have to travel for about an hour to his new place of work, he won't like that. (He is also related through marriage!)
Will I have to give him redundancy.?
How will I value my business?
What else should I be thinking about.
Any help much appreciated
I am down to one employee who has been working on a three day week and a lot of the time in the past two years weeks with no work on & off.
For the past eighteen months I have stated doing sub-contract work for a company dealing in the same type of work that I do. I have been doing work for this company two & three days a week and for the past while full weeks in a row.
This works out well as my employee carrys out the work for my own business which obviously keeps him in consistent work.
This works very well for me even though I do a lot of travel & long hours for the company I sub-contract to. The hardest part is maintaining my own business & at the same time working for another guy. I'm not complaining as I'm beginning to have a bit of money now in my business account.
Now the company owner wants me to commit to doing work for him more on a full time basis.
We've had a few brief meetings lately about this as his company has got a lot busier this last while and has a lot of solid contracts on his books.
In our last brief meeting he purposed to take over my business, including my employee and my existing work.
We are going to have a meeting to discuss this in detail early in the week.
I hope I have explained this well enough.
I am absolutely delighted about this but I need to know my stuff before entering into this.
I know I will have my accountant & solicitor involved with this but I just thought I'd put this up go get opinions on it.
My current employee just lives next door & he will have to travel for about an hour to his new place of work, he won't like that. (He is also related through marriage!)
Will I have to give him redundancy.?
How will I value my business?
What else should I be thinking about.
Any help much appreciated