subject: Opening a Dollar Store; Tips About Buying an Existing Store [print this page] Opening a Dollar Store; Tips About Buying an Existing Store
Opening a dollar store is much like starting other businesses. It requires the entrepreneur to be a quick study as all of the important aspects of starting and then operating this complex business need to be correctly handled. As with many other small businesses there is also the need to know how to handle then assume a huge number of very different roles. But what about purchasing an existing store? Would this be a better option? The store is already open; saving startup time. There are vendors already supporting the business; meaning no searching, creating that first big order, or stocking the shelves. Trained employees are already in-place; each an expert at a job.
But before you get too excited about this opportunity, take a step back and really examine the business opportunity in front of you. While opening a dollar store from scratch does take lots of learning, money, time and effort, in some cases that option is far superior to purchasing an existing store. Read on for some of the important considerations for those who are thinking about purchasing an existing dollar store business.
Why are they selling
Ask this immediately; but do not stop there. Confirm their answer to make sure it is not an attempt to cover for bigger issues with their business. There are some very logical, legitimate reasons which would make total sense. Make sure the reason you receive fits that category.
Carefully examine the company books
Here is where your accountant comes in and can be invaluable. Carefully examine the books. The numbers should support everything the owner is saying about sales growth or decline, and actions taken. Make sure to obtain details about any unexpected changes you find.
Other considerations
Steps one and two must show positive results. In the case where they do, it is time dig in deeper and carefully examine the other pieces of the puzzle. The list below will help you get started. Be sure to consult with your accountant and attorney to develop the entire list.
o Location
o Right Products Mix
o Existing Business Strengths
o Existing Business Weaknesses
o Existing Customer Base
o Current Customer Care
o Surrounding Businesses (Competition)
o Overhead
o Surrounding Community
If you decide buying an existing store is a better option than opening a dollar store from scratch be sure to thoroughly examine any business you are interested in buying. Do not be hasty. Ask questions. Verify everything. Ask your accountant to examine the company books. Remember; pre-planning and then opening a new dollar store would take time. Take that same time to insure you make the best possible decision before purchasing an existing store.
