Does anybody have any experience in this endeavour at all?
I have been offered the opportunity to buy out a private retail small shop. I have been to the shop and spent a few hrs just to see for myself and from a lay man's perspective, it looks juicy.
Discounting a bit of elbow grease and the impact such a venture will have on my social life, I will be happy to hear of any things I need to be aware of.
Don't worry, I will still be here and you may all be offered fab discounts.  |
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By *olgateMan
over a year ago
on the road to nowhere in particular |
What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at? |
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By (user no longer on site)
over a year ago
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?"
This + if you take the asking price and divide it by last year's net profit, what number does it give you (one decimal place please) |
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?"
Is the property part of the deal or is it on a lease...if so how long is the lease and what is the provision for rent increases. Why is the current owner selling? Ideally get the average monthly income for as long a period as possible to assess trading trends. Lots to go into but that's where a good accountant could help you out. Good luck. |
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?
Is the property part of the deal or is it on a lease...if so how long is the lease and what is the provision for rent increases. Why is the current owner selling? Ideally get the average monthly income for as long a period as possible to assess trading trends. Lots to go into but that's where a good accountant could help you out. Good luck."
Current owner selling because she has moved on to bigger and better things which means she can't be in 2 places at the same time. |
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"Ask why are they selling up... look at local developments happening.. ie an asda opening near by.. the community etc"
Local developments; can I get that from the council or do I simply have to rely on hearsay and concrete signs? |
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?
This + if you take the asking price and divide it by last year's net profit, what number does it give you (one decimal place please)"
As closely as possible the answer is 1.0 |
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By (user no longer on site)
over a year ago
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Is it leasehold? If so check up on any scheduled works as you'll be paying for them, take your time, run the numbers and then run them again.
How long a lease are you buying? |
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"Think about how long you can survive if the business isn't doing to well for the first 6-12 months, Do you have money tucked away to help you out ?
"
Do you know Tina Titz? ( the chocolate link).
Anyway, in answer to your question, let's say I could just tick over and probably not be able to drive far for fab meets |
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By (user no longer on site)
over a year ago
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I'd forget the idea of buying a corner shop and consider mounting a take over bid for an established company like Google or Amazon or Apple or Microsoft,,, or even one of the coffee shop type places that don't pay tax on their profits...  |
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"Is it leasehold? If so check up on any scheduled works as you'll be paying for them, take your time, run the numbers and then run them again.
How long a lease are you buying?"
A monthly rolling contract. Not a lease. And tbh, one of the cheapest I have seen. The only worry there is the landlord could raise the rent anytime. |
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"I'd forget the idea of buying a corner shop and consider mounting a take over bid for an established company like Google or Amazon or Apple or Microsoft,,, or even one of the coffee shop type places that don't pay tax on their profits... "
If only I had 500 million in a Swiss bank. |
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By (user no longer on site)
over a year ago
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?
This + if you take the asking price and divide it by last year's net profit, what number does it give you (one decimal place please)
As closely as possible the answer is 1.0"
OK well anything below 2.0 is good for a small business. The only thing I'd be concerned about is supermarkets are increasingly stocking niche foods, there's a huge polish section in our local tesco for example. So my only advice is to have a clear strategy about what someone can get at your store that they can't get cheaper somewhere else. |
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By (user no longer on site)
over a year ago
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"Is it leasehold? If so check up on any scheduled works as you'll be paying for them, take your time, run the numbers and then run them again.
How long a lease are you buying?
A monthly rolling contract. Not a lease. And tbh, one of the cheapest I have seen. The only worry there is the landlord could raise the rent anytime. "
In business, as with most things, if it looks too good to be true it probably is.
A monthly rolling contract would raise alarm bells for me.
Are you able to meet with the landord and get a feel for them?
Do they own any other business lets? If so have a chat with them to see what relations are like |
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"Ask why are they selling up... look at local developments happening.. ie an asda opening near by.. the community etc
Local developments; can I get that from the council or do I simply have to rely on hearsay and concrete signs?"
Look at council planning permissions etc. They are not confidential |
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"Is it leasehold? If so check up on any scheduled works as you'll be paying for them, take your time, run the numbers and then run them again.
How long a lease are you buying?
A monthly rolling contract. Not a lease. And tbh, one of the cheapest I have seen. The only worry there is the landlord could raise the rent anytime.
In business, as with most things, if it looks too good to be true it probably is.
A monthly rolling contract would raise alarm bells for me.
Are you able to meet with the landord and get a feel for them?
Do they own any other business lets? If so have a chat with them to see what relations are like"
 |
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"What is the turnover less overheads? That is your profit. Are you buying any of the stock? Does the current owner owe money to suppliers? How much do you value the goodwill at?
Is the property part of the deal or is it on a lease...if so how long is the lease and what is the provision for rent increases. Why is the current owner selling? Ideally get the average monthly income for as long a period as possible to assess trading trends. Lots to go into but that's where a good accountant could help you out. Good luck.
Current owner selling because she has moved on to bigger and better things which means she can't be in 2 places at the same time. "
but she could put in someone to run it for her, which if it was doing well one would think she may do..? |
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look out for footfall - how many people walk past..
