I've had a proposition from a work colleague, I'll list the facts below. My gut instinct is negative but I just want some business advice before I turn it down completely.
The main idea:
The main idea is that I start up a business with my work colleague as a "silent partner". He will provide the financial backing while I work at the shop. I mentioned to him that a coffee and cupcake shop which commissions wedding cakes would be best but he is swaying towards a cake shop which also sells equipment. His business knowledge is coming from a friend of his and he has just started up a physiotherapy business.
I currently work for the government, which means my job is safe for the time being. There aren't any redundancies or pay cuts in my job. I earn about £1100 a month and have expenditures of £700 per month in direct debits etc + living costs eg groceries. I currently live at home and do cakes as a hobby. It takes me 10 minutes to get to work each day.
The location he has in mind is Bourton-on-the-Water - http://en.wikipedia.org/wiki/Bourton-on-the-Water. It is village about an hour away from my home. It has a population of 3297 people. My colleague says there were approx 1 Million tourists who visited there last year though I can't find any information which supports this. This is predominantly a tourist village and so it is seasonal. The shop would be located on the main high street in the village where rent would be between £1000 and £1500 per month.
I would have to leave my job. I have no business knowledge. I don't know what his motivation is to risk so much money. I don't know how the "profit" if there is any... would be split. I don't know how "silent" he will be. He has said that once he has made back his initial outlay plus say £100,000 profit then he is happy to value the business and sell his half to me.
My gut instinct is to say no, but I wouldn't want to miss out on an opportunity at doing something I love.