Should I buy a C-Store? (1 Viewer)

[Garrett Lundy]

The owner of a local Mom & Pop convenience store has decided to sell the shop and run for Florida before its too late.

His asking price is reasonable, the business is a known money-maker, the building is structuraly sound.

Now before I decide to call my trusty business attorney, is there anyone with experience in owning a C-Store tat might give me some friendly advice? Also a few parties have expressed intrest, so I'm trying to cram as much C-store research I can before I lose my chance to buy.

 

[Malcolm R]

Your biggest headache will be staffing, unless you have a family large enough to cover all shifts.

My parents have owned one for about a year. If they could find dependable/trustworthy/motivated staff, it would be a cakewalk. But it's pretty hard to find such candidates.

 

[Frank Zimkas]

I would find a reputable HVAC/R contractor and have them inspect all of the refrigeration equipment. You might find that some of the equipment is in mint condition, or you might be in for some very expensive repairs/replacements. Generally speaking a refrigeration compressor should last 15-20 years with proper maintenance. If the equipment is nearing the end of it' normal life span you could have some major repair bills to deal with.

Contact your insurance provider and invest in a policy that will cover the cost of product replacement if your refrigeration system(s) do fail. It can save you a ton of cash.

 

[LewB]

Isn't C-store clerk a statistically dangerous job due to all the armed robberies ?

I've never owned a business but I would echo the sentiment that you need to have a family member there 24/7. Cash businesses are tough due to the fact that you need someone to watch the till. I'd imagine that cases of beer and cigs could be a tempting item for your graveyard clerk.

 

[CalvinCarr]

Is the C-store a convienence store or country store? Your in Ky. so I wasn't sure.....

 

[Garrett Lundy]

I'm in NY. Its a convenience store.

Anyway, This is the quinesential "small town" that hasn't had a homicide in 25 years, and no armed robberies that anyone can remember. Plus a fairly large percentage of business is Credit/Debit card these days... a percentile that will only get larger in the future.

The business is actually a mini-plaza that also rents-out store fronts to a liquor store, a tanning salon, and an oil company (all of which would be paying rent).

 

[Joe Spratley]

Before you put any of your own money on the line I recommend reading this book for buying businesses with no money down. If you don't put any of your own money in and it doesn't work out you can walk away without being bankrupt.

http://www.amazon.com/exec/obidos/tg...books&n=507846

 

[Philip_G]

My first question would be why are they selling?
have you seen the financials? is the store profitable?
will you make a reasonable return on your investment? or could you make more in a secure investment?

 

[CalvinCarr]

Sorry...I didn't have my glasses on...

Make sure you look at their books. You don't want to inherit any leins.

 

[Scott Strang]

Assuming of course that they don't have "double books".

 

[Chris]

A lot of businesses sell for honest reasons; though. I know my parents plan, make money or no, to sell their business in November.. primarily because they will both be over 62 and have considered that their retirement savings