Overall cost of buying established business

Get Real

Hi guys,

I am currently looking at purchasing a leasehold on a small corner shop.

It costs 10,000. I have been to said shop and it is in turn-key condition, 3 weeks of training will be provided.

I have experience in retail management and now want to go it alone, I have 25,000 in total, after the 10,000, and presuming a leasehold interest rent of 1000 per month, do I have enough money to start off? The shop is profitable, owner retiring.

I know there are many other costs involved, but would just like some rational, constructive feedback.

Thaks

jimmii

That isn't much wiggle room. There must be something else to this are you sure you won't have stock costs on top of that? A shop that has a €1k a month lease would normally have stock worth a good bit more than €10k at any one time.

Without knowing all the details €10k for a profitable shop on the face of it looks very low even if they are retiring and want a quick sale.

What competition is there locally? Is there a risk that it was the current owner that was the reason behind previous customer loyalty? It can be hard to judge how a change of ownership is going to effect repeat customers for us our customers have alternatives not too far away but they come to us because of us.