Things to consider when buying a shop 

26/04/2018 05:01



Buying a shop has both benefits and drawbacks for new business owners.

It’s a fair bet that if the previous shop owner has reaped success with the location you may also fare well and often there will be trained staff and suppliers already established, quickly removing some of the obstacles for you and allowing you to pick up and continue to run a successful business.

This blog offers insights about where businesses should look for stores as well as things to consider before agreeing to rent or purchase a premises for a retail business.



Where to look for shops for sale


The internet is your greatest resource when it comes to sourcing a worthy shop location. There are a number of online directories that you can use, all of which will allow you to search using specific criteria such as business sector, asking price and location. Some of the best are as follows:

-  Daltons Business, www.daltonsbusiness.com/buy/retailbusinesses-for-sale

-  BusinessesForSale.com,  http://uk.businessesforsale.com

-  RightBiz, www.rightbiz.co.uk


Factors to consider


Once you’ve found a shop that seems ideal and meets important elements of your criteria, it’s important that you consider certain factors that could have an impact on the success of your business.



Why is the shop up for sale?


There are a number of reasons why a particular premises may have gone up for sale and you need to be careful to consider ones that will adversely impact your business. For example, if the previous owner is selling because of nearby competition that is negatively affecting their business, you will want to assess whether this competition is going to continue to challenge the business.



What about competitors?


You’ll need to consider both the strengths and weaknesses of your competitors and also find out if there are any plans for large retail parks to be built in the area any time soon.



Profits of the business


It’s important that you find out whether the profits for the business have been consistent over the years that it has been operating and if they haven’t been, you’ll need to ask about the reasons behind this. Is the cash flow seasonal? If so, it may be necessary for you to open an overdraft for a certain period of the year. 

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