When Starting or buying a retail business

Resources home >> Business buyer articles >> When Starting or buying a retail business

change text size: A A A

When Starting or buying a retail business

9/11/2007 - by: Acquireo Team - Director of Marketing, Acquireo.com

Retail businesses cover a huge group of stores that sell every product known to man. Retail stores can be in the grocery business or sell parts for the automobile. The retail business that you want to own should be in an area of interest to you so that you approach it with an inner passion. If you love messing with cars then a parts business would be a retail business you could enjoy. The same could be said for antiques or rugs. The products your store would sell depend on the knowledge you bring to the business. Specific interest in certain things that people will buy will give you an edge when speaking to customers. If you were an expert in a certain field this would be a natural area to sell products to the customers. Finding a business for sale in a category may take a business broker to find or the buyer could start one up from the ground up.

There are so many retail categories that you will need to speak with a business broker to get an idea of the businesses that may be for sale. You may go looking for one type of business and find another that looks even better. You would also be wise to check the local papers for businesses for sale by owner. Another choice is the large number of franchises that are available to a retail store buyer. There are advantages to a franchise store in this crowded field of retail outlets.

If you are of the mind to start one of your own, you will have to be very careful about the location so as to get a shot at traffic that passes the store. A shopping center with a large traffic base like a name grocery store would be a good place for almost any kind of retail store. Location is extremely important in the retail store business. The passing traffic can make a store or kill it off. The lack of traffic is hard to overcome for most retail stores. A unique niche store will also get business if it is a one of a kind for the area. People will drive out of their way to get to a special store that sells what they are looking for. If your store fits that bill, you will get customers. A me-too store will have a difficult time in an out of the way location.

Another way to look for a retail store is to look at the ones that are successful in your area. Why do they have a following and is their product line different than other stores. Try to think of what you could do to be unique in your area and eliminate the me-too look for your business. A really different store can do well if there is a need for the products it sells. Difference for just that is not going to hack it. Find a need and fill it is a standby statement for success.

How to find the right business for you

Make a list of retail type businesses you would not like running and then do the same for the ones you would like to run. The list that you like is the areas you should concentrate on. Liking what you do and making money is the likely step to being happy with your company. It is also a business if other factors are reasonable, you will have a very good chance of success running. Making money in a business that you do not like is not enough for most people. Over time they will come to dislike going to work and will eventually sell out.

Another factor that is not always considered by a new owner is the hours you will need to be at work. Some one always needs to be there during store hours. If you have a large older family this may be an easy problem to solve. On the other hand if your spouse has a job and you are the only one available you will be elected to work the hours that need to be covered. This may be necessary at the beginning as you may not be able to have all the employees you need to cover the store hours. Some people in the food franchise business have discovered that all they purchased was a grueling job with endless hours of work. If you were purchasing a successful existing business with employees, you would be wise to find out what the staff plans to do when you take over the company. You really need to find out what key employees are planning. This could be critical to the continued success of the company and keeping the business on an even keel.

A great suggestion right after you take over is to have a meeting with all of the employees to introduce yourself and discuss any significant changes you plan to make in the near term. You would be smart to keep changes at a minimum for a while if the business is already doing very well. Change to show who is boss is a stupid thing to do.

Money makes the deal happen

Money is the key ingredient when buying a business. A cash deal will be the cheapest and the easiest to complete. Finding additional money over what you can put up is the next common hurdle that a new owner has to face. Some would-be owners have other assets that they can use as collateral to make a loan. Other potential owners will approach the business lenders that can be found on the Internet. Many will have spoken with their banker or relatives. If you can get the extra money from disinterested third parties you should be able to buy the business for a better price since you are offering a cash-out deal. Bringing the needed money to the table makes for a better bargaining position.

Buying on terms from the owner will usually cost more money in the price and interest. Many owners do not want to stay connected and will not consider a terms deal. The best you can do is make the offer and see how the current owner replies.

Conclusions

The retail business is a smorgasbord of possible business ventures. The yellow pages of any major city will verify the huge number of possible business types. It does not matter what your interest are, you will find a business to help you with your needs. This opens the door for you to either buy or start a business that you have an interest in owning. Your basic interest will help you live with the business once you own it. It is a strong factor in the success of the business. Running a business you like will be very helpful in facing the day each morning when you get up and have to go to work.

The wonderful world of retail business is so diverse that there is room for just about any kind of retail business. People with very specific needs will go to special retail shops and those with usual needs to go to the stores that are most convenient for them to go to. This area of ownership really comes down to the interest of the owner.

If you are looking to own a retail store,Acquireo has a variety of retail businesses listed by brokers and private sellers below:


author: Acquireo Team

Related articles
  • Buying a retail business
    If you're thinking about buying a retail business, there is a lot that you must consider outside of the basic nuts and bolts of the business ...
  • Buying A Business? Here's how to do it right!
    There's a reason why buying a business is referred to as a "buying process". There are a substantial number of steps involved and much to co ...
  • After you buy a business
    After you buy a business, what should you do? That question has many answers and it depends on the kind of business you purchased. It also ...
  • How to run a retail store
    Retail businesses sell all types of merchandise and are not limited to what is sold in a five and dime or a dollar store. The items sold co ...
Contribute to the resources!

share the wealth

Do you have expertise and want to contribute an article? Please contact us. If accepted, we will permanently post your article with your bio, contact info, and a link to your website.

Stay Updated

FREE NEWSLETTER

Sent once a month. Quick and easy to read. And delivered the way you want.

Sign up for Acquireo Today for FREE!
 


BrokerlogicsTM

For Business Brokers

BrokerLogics, exclusively for business brokers, lets you manage your account and add or modify all your Acquireo business for sale listings in one convenient place.

> Business broker accounts

FEATURED BUSINESS BROKER



Find more brokers in the Acquireo
Business broker directory