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Should I buy a shop?

kwalitykwality 620 Posts
edited May 2007 in Strut Central
My girlfriend has been managing a little womens fashion boutique for 13 months, and it's owner wants to sell up and have another baby. My girl and I have put in a hell of a lot of work, but we always kinda held back because it wasn't our business. Now she's offered my girl a great deal (10k for everything, 6k of which is bond and will be returned after the lease is up) but it's still a pretty big deal for us. I'll keep working my dayjob so there'll be some steady money.I've grown up around businesses and have a pretty good head for figures, and my girl has developed great relationships with her clients so do you think it's worthwhile? Right now the business is covering its costs and providing a small wage without great stock and little marketing.I know there's some strutters who are in business themselves - what should we be looking out for? What made you actually throw down and do it? What were the hidden surprises for you?

  Comments

  • street_muzikstreet_muzik 3,919 Posts
    depends on numbers
    $$$ brought in daily, foot traffic, location, etc.

    places like this come and go on a daily. I'd do a lot of research first.
  • DrBorisQDrBorisQ 298 Posts
    Just make sure you do your due diligence VERY throughly, you don't want any nasty surprises.

    I don't know what your current workload is, but be aware of the workload you are taking on. i.e the bookkeeping etc. work can be quite onerous.

    Also, have a longer term plan. Do you want to own it for 5, 10, 50 years? Are you building it up to sell it off, or planning to expand or diversify the business?

    Just my thoughts having been involved in small business/consulting to SME's, not necessarily the be all and end all.

    peace and good luck.
  • DJ_WubWubDJ_WubWub 874 Posts
    My old man has been in the rag trade for over 35 years ( in womens fashion, 9 stores and wholesale business) and in his time has seen so many people go under. He advised me never to buy a shop unless I had fully researched every aspect of the business (location,outgoings,stock,maketing etc.)

    But from the kind of investment you are making you wont lose a house even if it doesn't work. As your partner has been working there she would know what sort of income it can generate and would know what clientele it attracts.

    If you do all the sums and it feels right...

    Life is about taking risks and change so I'd say go for it.
  • tripledoubletripledouble 7,636 Posts
    definitely add some dollar bins
  • SoulOnIceSoulOnIce 13,027 Posts
    definitely add some dollar bins

    Yes, these always bring in the most desirable customer.

  • kwalitykwality 620 Posts
    definitely add some dollar bins

    Yes, these always bring in the most desirable customer.


    Man I thought about it though! Cheers for everyone's feedback, I've just gotten the figures and will be going through them all tonight. Anyone with hookups in the rag trade holla!!!

    Seriously though, I'm grateful to everyone, and I still wanna hear from everyone - anyone get screwed on insurance? What sort of marketing has worked the best for people?

    Cheers all, if it wasn't womens clothing I'd offer you all hookups!
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    The first 13 months are crucial so if the business is still standing and growing that is a good sign.
  • knewjakknewjak 1,231 Posts
    Just make sure you do your due diligence VERY throughly, you don't want any nasty surprises.

    this is true. make sure that the new baby is the real reason for the sale.
  • kwalitykwality 620 Posts
    The first 13 months are crucial so if the business is still standing and growing that is a good sign.

    Yeah, I kinda took it like that. And I'm 100% certain the baby, plus their other businesses are the reason for the sale. Cheers for everyone's advice, I appreciate it.

    I'm going through the numbers tonight with my father who's a brutal accountant, so if that works I guess we'll own a shop. It's pretty crazy, but I guess you gotta grow up at some stage. Now all I need is some hookups on fresh clothes from around the world - strutters become buyers!
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