Potentially Life Changing decision - looking for input
So ... yesterday I headed over to my favorite yarn store in Centreville. And ... it's for saleAs far as I know, they're not going out of business. The owners are in the midst of personal difficulties, and I think they're looking to sell it and avoid the legal issues that may come between them
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However, having followed my main dream of being an artist in real life, I know it can be rather daunting, and hard to maintain day in and day out. Hence, I have questions/bullet points...
- Is the store itself for sale, as in the actual piece of real estate ? Or is the store as a business for sale, and there would be rental overhead and others fees ? Find out what the exact overhead would be, including the utilities needed to run the store. Get average bills rates for all overhead so you have an idea of monthly running expenses.
- If you buy it, for whatever price, what exactly, does that include ? The store, the furnishings, the POS system, the inventory ? Does it include computers currently there and whatever software is on them ? Cash registers, inventory systems ?
- If the systems, computers, etc. transfer with the store, what is the age and condition of these systems ? Is it an outdated POS system that will need serious updating ? Is it a printer that is on the fritz more than it works ? What accounts with utility companies will transfer with the store ?
- Will accounts the store currently has with wholesale suppliers transfer over to you, or will you need to establish all new accounts ? Is the current buyer of product in the store a staff person who is staying ?
- The staff wants to stay on. Does every single staff person want to stay on ? Is the store well staffed enough that your first few weeks could be spent learning how all the systems in place work ? Who is currently writing the schedules ? Do you know how to write a good retail business schedule ? Can the staff run the store if for some reason you cannot get there ?
- What kind of insurance or benefits are provided for the staff, if any ? What kind of overhead does the staff represent, and will you be keeping all current policies in place ? Payroll fees, taxes, etc. Accountants are SUCH a good thing to have !
- What are the current hours of the store ? Would you change any of the hours ? Holidays and special days ? How would this affect holidays you spend with your family ?
- In terms of raising the capital/getting the loan, how is your credit ? Do you have assets or collateral to secure a loan ? Some lenders will want a detailed business plan if you go for a small business loan. If you can qualify for a loan in the current climate, you should be able to get a sweet deal, but the qualifications may be complicated.
Continued...
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- What would you be giving up in order to have this dream ? What hobbies or sideline activities in your life would get 'eaten' by the store ? What would the monetary impact be on your life if the store/business goes poorly ? You have a family with kids, what will be the impact on them ?
- In my own life, I live under the poverty level of income, but I only have a dog, a cat, and two snakes to worry about. I don't have to send any of them to college. I have made the knowing choice to live this way, making this little money, because I am ultimately happier this way. Not everyone can handle worrying about money and not being financially secure.
- Some of my points come from having worked in a retail store that the owner neglected. The POS and computer systems were constantly in need of updates, the AC/heat pump was broken more than it worked, and there was no security system whatsoever. I loved the store and its customer base, but disliked working in a place where everything was falling apart. I thought about being the owner of a place like it, and how much would have to be fixed/repaired/replaced. It's daunting when little things start going wrong, because it can quickly avalanche.
- I have worked management and written schedules. I have also worked retail were the manager couldn't write a schedule to save her life. Maintaining a happy staff includes writing a schedule properly, paying attention to who can work what and when. With a small staff it is usually easier.
- Think about all the small details, to get a sense of the larger picture. You walk into the store in the morning. Are you turning off a security system ? Where are the light switches ? When is the electric bill, or the alarm system bill due ? You turn on the registers. Something is wrong with one - where is the number for the repair service or tech support ? It is often the little details of running a business daily that bog you down and drive you batty.
- One other suggestion I have - see if you can hang around the store for a day. Watch the staff and owners, watch what their daily routine is like. This will give you a feel for how it runs, how it could run with you, perhaps, and what the current state of the store is. You should also be able to get a lot of questions answered in a day like this.
If your do pursue this dream, be aware it may be fleet of foot and wily. Be prepared for long days of battling logic all in pursuit of it.
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I've received some information from the store and I can tell you that it would be an assumption of the current space/name/inventory as it currently stands.
The rest are questions I have to digest and answer.
Your input is very appreciated and very welcome. Write anytime!
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Keep us updated as this evolves, as I certainly want to be in the know should you proceed.
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