When Starting or Buying a Retail Business
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.
- Shopping
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9 Responses
From the article "Three Roads to Business Ownership" http://www.powerhomebiz.com/vol18/ownership.htm here are the pros and cons of starting a business vs. buying an existing business:
Starting Your Own Business.
Starting an independent business of your own offers several advantages. You are free from contractual obligations required from franchisees, and from any precedents established by the previous business owner. You are able to start on a fresh, clean slate with total control on how the business is shaped and managed. You are free to offer a pioneering and proprietary product that could help you dominate your market. You can start with a bang, or at a slower pace, depending on your resources and entrepreneurial goals. There is no required upfront investment that you must raise; except for the level that you think your business requires to be successfully launched. You can choose the location you want, determine the products and service that you market, and decide whether you need employees or not.
The downside of starting a business from scratch could also be numerous. A new business entails greater risk than buying an established business or franchise. You need to determine whether a need exists for your products or service; and if it does, work to create awareness and branding. The start-up process also necessitates you to do the groundwork process by yourself – from business licenses and permits, establishing relations with suppliers, and establishing a customer base to support operations. Many new start-up businesses, particularly home businesses, find it hard to secure financing given the lack of operating histories and inexperience of the people involved.
A new business will require a longer period of time to show profits, if at all. Entrepreneurs who decide on venturing on their own must be willing to dedicate considerable time and energy to establishing and nurturing the business.
Buying An Existing Operation.
Buying an existing business offers several pluses worth noting. For one, it reduces the time and cost associated with establishing a new business. Someone else has gotten the company started, and much of the legwork associated with starting out is already completed. The customer base has already been established, and relationships with suppliers have been created. In some cases, you can even continue the status quo once you take over, particularly if the business is doing well. Some business buyers even employ the former owner either on a part-time or a full-time basis on a limited time to help ease the transition process. In addition to eliminating a competitor, the former business owner can even share with you tips and experiences he or she have had in running the business, thereby shortening your learning curve.
The biggest advantage to buying a firm is that the business already has a proven track record. As a result, you may have an easier time in securing financing. Plus, there is shorter waiting time for a business to become profitable because your existing inventory and receivables can already generate income for you from your first day. A business is also less likely to fail if it has been around for quite some time.
However, you should be aware of some of the common pitfalls in buying an existing operation. For one, the cost may be too high compared to starting a business from scratch as a result of inflated estimates of worth. The business may not be performing as well as expected and there may be inherent operational and logistical problems that may not be apparent until after the sale. Equipment and inventories may be obsolete. Receivables may be stale and uncollectable. Customer relations may not be all that well, and relationships with suppliers might be in bad shape. The distribution system may be falling apart and the physical location of the business may not be ideal. Also, be wary of potential personality conflicts with the employees and managers, who may or may not welcome you as the new owner.
I think a lawyer would be your best bet, though you may have already tried this.. or the local area chamber of commerce.
In the case of chain stores most if not all items are either approved or purchased at the central office. To get started call and ask for the Purchasing Department. Since each organization has unique procedures ask them what you have to do to get your merchandise in their stores.
In the case of single location stores just walk in and talk to the boss.
Payment terms tend to vary from industry to industry. You will have to ask what they are. Generally speaking, when dealing with off-the-shelf merchandise stores don't have contracts with their suppliers. Again practices vary from industry to industry.
A final suggestion. Ask whoever you purchased rights from for a brief run down on industry practices.
Hope this helps
Jerry-the-bookkeeper
I think the problem you are encountering is due to the fact that the guys at the junkyard are of pretty low intelligence to start with. Why else would they work at a junkyard? i don't know that there is anything you could do other than where a low cut top and talk like a blond. Tell them how much money you have to spend before asking them if they have the part.You can easily play there own game against them. Let's say you need an alternator bracket. Tell them you only have five bucks and giggle a lot. It will work. If you try to show them your intelligence it would be like giving a hammer to a handless man. It would offend him and he would respond accordingly.
Get the delivery vendor's license first as well as the EIN number and fictitious name .
You would do this first because , if your company is going to have a website and you don't have the goods , then what are your customers going to see ? Yes you will need an EIN number just to certify the importance of actually having a serious business. The benefits of having an EIN number is basically it's easier to get Business grants and loans . The fictitious business name filing is because , A fictitious business name, assumed name, or DBA (short for "doing business as"), referred to as "trading as" in the UK, allows you to legally do business as a particular name at minimal cost, and without having to create an entirely new business entity. You can accept payments, advertise, and otherwise present yourself under that name. In fact, if you present your business under a name other than your proper legal name without proper notification, it may be considered fraud. Fortunately, filing for an assumed name is so easy and inexpensive, there's really not much excuse for not filing one.
I hope I helped you out GUURRRRLLLL !!!!!!!!
Now if you don't mind I have a question for you .
What's it like in ohio?
The most fulfilling thing that I ever did was to join a charitable organization. I have been in it for the past 3-4 years. The time and effort that I spend giving to others less fortunate, has made me appreciate even the little things in life.
You sound like you may need a greater purpose too. Give it a shot. You would not believe how much better my life seems now.
JC Penny has great suits that are usually on sale. I got my full suit, that is fitted perfectly for me, for $13. since it was on sale and there was a coupon for a rebate in the newspaper. With stuff costing more, you can still look good if you do your homework of what to buy and where to buy it.