Anyone own a variety store?

[mgonza]

Remember, 4k is the initial cost. The capital needed to actually have a functioning retail location is easily 10 times that after factoring in monthly leased rent, insurance, utilities, and labor plus unexpected costs. With that being said this is America. Success can not be achieved with out risk.

 

[Ballplayer]

I have the unusual opportunity to buy a turn key store for about 4k it is full of stuff and could literally open it as is. I would have rent etc to deal with but am curious as to the profit margins Etc. has anyone failed at one of these? I figure for 4k it's worth a shot.

Be careful that your not buying a $100K hidden debt in accounts payable along with the mechandise, people unknowingly get hooked everyday ! Good Luck

 

[Mossy Broke]

Being a variety or curio type shop I would try to expand the business with online ventures. That way your selling on a huge marketplace. There is a wholesale cast iron place down the road from me that I would pick stuff up from and sell on ebay. Made good extra money with it.

 

[eflat]

Remember, 4k is the initial cost. The capital needed to actually have a functioning retail location is easily 10 times that after factoring in monthly leased rent, insurance, utilities, and labor plus unexpected costs. With that being said this is America. Success can not be achieved with out risk.

This is the closest to what I was gonna say. From experience I can say making rent on a storefront in a good area is VERY hard. You have to compete with big box dollar stores and it takes a LOT of customers buying $1 to $20 at a time to make rent, payroll, utilities, operating costs (stupid stuff like office supplies, soap, toilet paper, paper towels, cleaning supplies etc.) Then and only then can you pay yourself. You have to have enough money to pay your personal bills and keep you and your family up for at least 6 months, just in case you don't make a dime. I know lots of people don't but it is in your best interest and good practice. This will be a venture that will consume ALL of your time, so if you already plan on keeping your current job or business to live off of then this probably isn't the venture for you because you will need to oversee everything until you are making money. I am NOT trying to discourage you, I am just letting you know some of the hardships that can come along with running a business like this. Also keep in mind that yes, it is stocked now but you will have to replace that stock weekly if not several times a week with merchandise or your shelves will get bare quick and that is the quickest way to start losing business. If you decide to do this then I wish you the best of luck.

 

[KennesawJoe]

Thanks Eflat, most are CLUELES about the costs of having a retail store!

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Clueless....LOL

 

[shaneadams90]

Wise words here!

FIXED COSTS!!! I wouldn't make a move without seeing the books of the store you are looking to purchase. Also, what kind of lease are you stepping into IF ANY? No lease could be good, or it could mean that the day you take "ownership" of the store your new landlord Jacks up the rent OR kicks you out all together....

Lots to think about...best of luck...happy to answer any questions I can...

This is the closest to what I was gonna say. From experience I can say making rent on a storefront in a good area is VERY hard. You have to compete with big box dollar stores and it takes a LOT of customers buying $1 to $20 at a time to make rent, payroll, utilities, operating costs (stupid stuff like office supplies, soap, toilet paper, paper towels, cleaning supplies etc.) Then and only then can you pay yourself. You have to have enough money to pay your personal bills and keep you and your family up for at least 6 months, just in case you don't make a dime. I know lots of people don't but it is in your best interest and good practice. This will be a venture that will consume ALL of your time, so if you already plan on keeping your current job or business to live off of then this probably isn't the venture for you because you will need to oversee everything until you are making money. I am NOT trying to discourage you, I am just letting you know some of the hardships that can come along with running a business like this. Also keep in mind that yes, it is stocked now but you will have to replace that stock weekly if not several times a week with merchandise or your shelves will get bare quick and that is the quickest way to start losing business. If you decide to do this then I wish you the best of luck.

 

[Lockout]

How much does the company owe other people ??? CHECK their debt first!!!

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check their tax history past 5 years

 

[rwurbanwildlife]

How do you know the person selling the business? Sounds like you are buying an inventory then taking over a lease and utility bills. Is the store opened now or is it closed? Also, can you get payroll records?

 

[jcraig30540]

I would definitely consider it, even if the inventory that is included is crap you could use that location and setup to sell whatever you like if the current stuff didn't do well. But if 4k is going to strap you for cash, or come close, i would probably play it safe and pass. There are tonnes of unseen expenses in small business. I know firsthand so if you need advice feel free to message me

 

[ch035]

The plan would be to buy the inventory and everything in the store ie computers,carts etc and then work out a lease. I would retain my job and my wife and mother in law would run it. She stays at home with my kid anyway so if it completely failed I would be out the 4k but still able to live.