Retail business experience??

[bud8fan]

Well guys/gals, here is the deal!

I work part time at a family owned retail business and the owner asked me today if I would be interested in purchasing the business from her.
This has been a dream of mine for a long time but I could really use some advice and or ideas on the subject prior to making my decision!

I know the merchandise end of this business inside and out but as far as running it on my own???

Any advice would be greatly appreciated!!




Russ

[Nebe]

IMHO If you can afford to buy the business, you gotta ask yourself and the boss lady some questions.... Firstly ask why your she is selling... What if they are on the brink of going out of business? Ask her if she would be willing to stay around for a little bit to train you to do what she does...

good luck though, sounds like a great opertunity

[goosefish]

Do it Russ! If you've dreamed about it then I would really consider doing it. Hindsight can hurt, missed opportunities and all of that. For me, I know there have been times in the past, that I cant change now, of things that I really should have bit on.
As for retail help, sounds like your nearly there. Get to know the books, the buying and selling: you'll get better feedback than this.
My advice is simple, give it a gooooooooooooooooooooooooooo

[Clammer]

see the books =& make sure you know all the details on the lease=not just the amount

PS ==Russ I need a black Snoopy car ofn tony,s

[JohnR]

Books, books, books - and a small biz accountant you can trust

[Clammer]

Geez=Russ I have 15.5 years of accounting working for ITT=============================================== ======not a chance Bud=been there ,done that =but anything else ya need=ask

[bud8fan]

Thanks for the tips guys!

The business is not failing as I am pretty much as much a part of it as the owner is so I know.
Sure things get tough certain times of the year but most business' see that.

The reason for her selling is that she has been given a opportunity of a lifetime by her father(owns the plaza that the shop is in as well as a ton of condo's and real estate). He is going to train her to become the property manager for everything when he retires. And this requires 40+ hrs a week so she wont have time for the business.

If I do go ahead with this I will relocate it in a more affordable location.

[Nebe]

Originally posted by bud8fan
If I do go ahead with this I will relocate it in a more affordable location.

Does she know this?? that might bum her out maybe

[MakoMike]

Bud8,
Re "If I do go ahead with this I will relocate it in a more affordable location"

Be very careful, there are three secrets to a profitable retail business, location, location and location. Moving it might lead to disaster, OTOH if its a real specialty retail operation, no competition, moving might not make a difference. But if you depend on walk in business, be very careful about moving.

[Raven]

do you have one? or are you going to be operating on a "we shall see how it goes" ideology. Thats rather risky. But some risks are worth taking!! Since you didnt mention it...how are you going to finance the purchase of the business? its a big consideration and if you have to borrow money then the lender is going to want to see a business plan as well. Then theres the sub-division of duties to perform as to who does what.
These questions can in part be answered by the small business administration who will put you in touch with the right people to talk to who have the job of taking a business idea or plan and giving you their professional opinion of its merits (for free) (just my thoughts ok) as for relocating the whole business to a different area you might consider opening a second location without moving first and see if it takes off like a wild fire. if not you'll still have the origional in good shape to keep in business
and then you would have the option of closing that location later on. At least....think in terms of growing your business....

[bud8fan]

Guys,

This is an already established business that has been doing decent for the past 5 yrs.

It is also a specialty shop and there are only 3 others in the state.
The main customer base is established and they all know me very well so its not like I would be trying to establish it from scratch.

The way the business is run is pretty straight forward and all I would be doing is tweaking the existing dealings. The first thing I would do is add an internet extension to the business. This would give me an avenue to move inventory that doesnt sell at the storefront location.

The main reason for moving the location would be to save on rent.
Sure the location its in is proven but then again even where it is there are times when you might not see a customer for hours.

This purchase would be basically simple. I would be buying the name and current inventory along with display cases and racks.
So its not like I would have to deal with purchasing the building etc.

[Bliz]

There's your opportunity Russ!...

GO FOR IT!

[UserRemoved1]

Russ I am self employed....14 years now. PM me and we can discuss pro's and cons..maybe give you some ideas...

[PoplarMan]

i sell poplar

[chris L]

butt are you popular ?

[PoplarMan]

Why yes i am poplar

[chris L]

butt are you popular ?

[Crafty Angler]

Bud8 -

First ask for a Profit and Loss Statement and show it to a good CPA. Ask to see all relevant financial reports in detail, in fact - receivables, payables, any long-term liabilities you might be assuming, etc. If they hem and haw, tell 'em thanks anyway.

Then ask yourself if you want the stress and long hours of owning a small business. My wife and I have had our own small business for almost 20 years now and I can tell ya that at times it's not exactly a trip to the beach. Trust me when I tell ya that in many cases you're a lot better off being one of the Indians than the chief. In my case I just got sick of working for a$$holes although I gotta admit I did have a coupla smart businessmen for bosses who I emulated and it helped my own business. I figured if I gotta work for an a$$hole it might as well be me.

If everything looks kosher then go ahead, but be sure to get a lawyer and incorporate the business as a sub-S corporation. It limits your personal liability and also has tax advantages, both of which are extremely important.

If everything looks good, God bless ya, man and best of luck. You may not get wealthy but there is a great feeling of independence and self-reliance. Just don't go off all starry-eyed without preparing yourself for the challenge - kinda like hitting the rocks during a big swell just sure tonite's the nite for that 50 and forgetting your Korkers.