The Dream of Owning a Pottery Studio: My Journey from Instructor to Potential Owner
In a quiet corner of our bustling town lies a small, inviting pottery studio where I’ve dedicated the last few years of my life teaching the art of pottery. This studio has been more than just a workplace for me; it’s a creative sanctuary where I’ve grown both personally and professionally. Over the past year, I’ve taken on additional responsibilities, such as managing administrative tasks and enhancing our social media presence. These efforts have doubled our net income from $45,000 to $90,000 annually—not a fortune, but certainly a step in the right direction.
As I reflect on these achievements, the idea of owning the studio has become increasingly appealing. Despite the fact that the venture isn’t a goldmine, I find immense joy in this work and believe I could sustain a comfortable lifestyle with it, thanks to my modest personal and business expenses.
My boss and I have had numerous discussions about the possibility of me purchasing the studio. He plans to relocate with his wife to her homeland in a year’s time. We’ve forged a strong friendship, and I’ve learned a great deal from him as a mentor, which makes negotiating a fair purchase price challenging. He’s proposed a $150,000 price tag, presenting a comprehensive list of assets and financial reports from the past few years, with the assets valued at $90,000.
One of my main concerns is that the asset valuation seems based on their original purchase prices, despite heavy wear and tear on equipment like pottery wheels and the kiln. I wonder if it would be reasonable to negotiate based on their depreciated value, but I’m unsure if this is the norm in such transactions.
Additionally, I’ve inadvertently increased the business’s income, which my boss now uses to project future earnings. This makes me question if I should have approached the situation differently.
Seeking advice, I’m planning to consult my mother’s accountant and financial advisor to gain a deeper understanding of the purchase process. Despite the complexities, my desire to own the studio remains unwavering. If I don’t proceed with the purchase, my boss might be compelled to sell off the assets at a substantially reduced price, which neither of us wants. Although it’s possible he could find another buyer, we both recognize the uncertainty that comes with waiting for the right opportunity.
As I navigate these uncharted waters, I appreciate any insights or experiences others might share. This venture is a leap of faith, and I’ll continue exploring the possibilities to turn my dream of owning the
One Comment
What an inspiring journey you’re on! Transitioning from instructor to potential studio owner definitely presents both excitement and challenges. Regarding your question about asset valuation, you’re correct to consider the wear and tear on the equipment. Typically, negotiations do account for depreciation based on current market conditions and the actual usable value of the assets. It might be worthwhile to gather some comparable sales data from similar studios to bolster your stance during negotiations.
Additionally, since you’ve already demonstrated your ability to increase revenue, you might want to propose a purchase structure that reflects this growth, perhaps incorporating a performance-based payment plan. This could include an initial payment based on the depreciated value of assets, supplemented by future payments tied to the studio’s success post-sale.
It’s also excellent that you’re consulting with your mother’s accountant, as a well-rounded financial perspective is crucial. Consider reaching out to other studio owners or industry groups to gather additional insights; their experiences could offer invaluable information from those who have walked a similar path. Best of luck with your negotiation and the potential purchase—it’s clear that your passion for pottery and dedication to your craft will serve you well in this new chapter!