How do I take over a business the seller ran from home?
List what physically sits in the seller’s home, agree how and when it moves, and decide where the business will operate. Take over the phone number, mail and online listings, and time the move so customers see no gap. Ask your lawyer and the municipality about home-business rules.
A business run from a kitchen table, spare room or garage has no clear line between the business and the house. That makes the handover more physical than usual. Equipment, stock and paperwork may be mixed in with the family’s belongings, and the seller’s home address may be everywhere customers look.
Inventory what is in the house
Walk through the home with the seller before closing and list every item that belongs to the business: tools, machines, stock, supplies and files. Photograph it, and match the list to the purchase documents. Agree who packs it, who pays for moving it and the date it leaves. Anything left off the list is likely to be disputed later.
Records, address, phone and mail
Customer lists, invoices and supplier details may live on the seller’s own computer or in a drawer. Make sure you receive complete copies and that personal material is kept out. Move the business phone number, email and website to you. Change the address on listings and suppliers’ files, and arrange mail forwarding so nothing is missed in the first months.
Where will customers go?
Decide early whether customers come to a new location, whether you operate from your own home, or whether you serve them at their premises. Tell regulars in good time and explain the change plainly. Plan the move around your busiest periods, so orders keep going out while boxes move. See what to do in the first week for the early steps.
Rules for working from home
Whether a business may operate from a particular home, and whether a licence is needed, depends on local rules, and those can limit customers visiting or signage. Ask your lawyer and your municipality before you commit to a location. Do not assume the seller’s arrangement carries over to you.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I take over a business after closing?
- Expert answerWhat should I do in the first week after buying a business?
- Expert answerWhat if equipment is broken or missing after I take over a business?
- Expert answerDoes a buyer need its own licence before the sale closes?
- Expert answerWhat should I avoid changing in my first 90 days as a new owner?
- GuideTaking over a business after closing
- Expert answerWhat should I check before buying a home-based business?
- Expert answerWhat should I check before buying a group home?
- Expert answerShould I buy an existing group home or start one?
Selling
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 02BizPaL (federal, provincial/territorial and municipal governments)GovernmentBusiness Permit and Licence Information
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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