You've already heard a great deal of great advice here - I'd add a couple of elements:
1.) What do you really want to do this potential business for? What's your motivation? If you're highly motivated, upfront money may seem different now than later. Likewise, a passing hobby is far different than feeding yourself or a family - cheap rent or otherwise.
2.) What are your differentiators? You can throw a rock and hit an online version of a record store, and everyone is popping up a record store in every antique mall in the country. What's going to make you different?
3.) Selling 'your' inventory is more difficult than selling 'inventory.' 'Your inventory' has a personal attachment to it that could negatively impact you very quickly.
4.) What's the real time commitment? How much is your actual 'profit' after you factor in all the real time you'll have to invest? Then take that and compare it to the answer to #1.
5.) The immediate value of the previous owner's business is slight more than zero but far less than you're been talking about paying for it. The previous owner is looking for a number to get out of the shackles of that business, while there's virtually no upside for you. If you can't negotiate a non-compete then perhaps you can work on a draw or something where you are splitting the costs over time in order to minimize your overall financial risk. Actual partnership where you both share in the business with you taking on some sweat equity while not having to fork over the entire nut. If he wants out, that shouldn't be an issue for him unless he's looking to either pay off something or finance something else. If he's not willing to discuss it, then you know what you're truly walking into.
6.) Virtually every used record store that I know also deals in new product in order to get people in the store - especially 'new' customers. That's a significant upfront investment that can go stale as distributors wont give you terms until you've established a track record with them. That can be crippling if you're forced to buy $10K of product but only sell 30% of it within any reasonable time period.
Again, not to be disrespectful. Best of luck with it.
1.) What do you really want to do this potential business for? What's your motivation? If you're highly motivated, upfront money may seem different now than later. Likewise, a passing hobby is far different than feeding yourself or a family - cheap rent or otherwise.
2.) What are your differentiators? You can throw a rock and hit an online version of a record store, and everyone is popping up a record store in every antique mall in the country. What's going to make you different?
3.) Selling 'your' inventory is more difficult than selling 'inventory.' 'Your inventory' has a personal attachment to it that could negatively impact you very quickly.
4.) What's the real time commitment? How much is your actual 'profit' after you factor in all the real time you'll have to invest? Then take that and compare it to the answer to #1.
5.) The immediate value of the previous owner's business is slight more than zero but far less than you're been talking about paying for it. The previous owner is looking for a number to get out of the shackles of that business, while there's virtually no upside for you. If you can't negotiate a non-compete then perhaps you can work on a draw or something where you are splitting the costs over time in order to minimize your overall financial risk. Actual partnership where you both share in the business with you taking on some sweat equity while not having to fork over the entire nut. If he wants out, that shouldn't be an issue for him unless he's looking to either pay off something or finance something else. If he's not willing to discuss it, then you know what you're truly walking into.
6.) Virtually every used record store that I know also deals in new product in order to get people in the store - especially 'new' customers. That's a significant upfront investment that can go stale as distributors wont give you terms until you've established a track record with them. That can be crippling if you're forced to buy $10K of product but only sell 30% of it within any reasonable time period.
Again, not to be disrespectful. Best of luck with it.