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Overall cost of buying established business

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  • 01-03-2015 1:18pm
    #1
    Get Real
    Registered Users Posts: 903 ✭✭✭


    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 :)


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭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.


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