shadowkitty
Mistress of Shadows
So my husband and I are in a position to buy a small business. We don't have a lot of cash to throw around but two great opportunities have come up. Both with pros and cons. We don't need to make a lot of profit to be comfortable. But we are torn between doing something we love for less profit, or something safe for more profit and opportunity to buy a house. I'd like to hear anyone's thoughts about these two opportunities.
Business 1:
Small vintage, secondhand, retro furniture and knickknacks, collectibles shop.
Pros - Cheap, cheap rent( cheap enough for us to buy business and put down 12 months rent and buy stock, and then sort out our car situation) Great landlord who is open to us doing whatever we want to the shop. May even offer the building to us to buy. Established regular customers. Something both hubby and I love. opportunity to put other things in the shop, like my art etc..
Cons- Shop situated in an industrial area. not much foot traffic, not much profit (opportunity to change this though). Shop is 40 minutes to 1 hour drive away from home. Would need to market shop, advertising etc..
Business 2:
Furniture and home-wares business with well known brand name.
Pros - Popular, well known brand throughout Australia, no need to advertise. Opportunity to make a LOT of profit. Great company to deal with, you basically have their name, buy their stuff, but what you do with it, and your shop is up to you, they hold nothing over you..it is not a franchise. You don't even have to stock their merchandise exclusively. Warehouse in our area making it more convenient to get new stock, or have customers pick up bigger items from the warehouse. shop owner may be open to part payment of business..
Cons - more expensive to buy. Shop in another town about 30 minutes away and not in the best of locations, still has 18 months lease (this may be able to change and we could move the shop down to our town, but this would involve a big move, fitting out new shop etc...) this all hinges on someone taking over lease on old location. Bigger risk, taking up all of our money. Commercial rent down our way is a little more expensive and sparse.
Business 1:
Small vintage, secondhand, retro furniture and knickknacks, collectibles shop.
Pros - Cheap, cheap rent( cheap enough for us to buy business and put down 12 months rent and buy stock, and then sort out our car situation) Great landlord who is open to us doing whatever we want to the shop. May even offer the building to us to buy. Established regular customers. Something both hubby and I love. opportunity to put other things in the shop, like my art etc..
Cons- Shop situated in an industrial area. not much foot traffic, not much profit (opportunity to change this though). Shop is 40 minutes to 1 hour drive away from home. Would need to market shop, advertising etc..
Business 2:
Furniture and home-wares business with well known brand name.
Pros - Popular, well known brand throughout Australia, no need to advertise. Opportunity to make a LOT of profit. Great company to deal with, you basically have their name, buy their stuff, but what you do with it, and your shop is up to you, they hold nothing over you..it is not a franchise. You don't even have to stock their merchandise exclusively. Warehouse in our area making it more convenient to get new stock, or have customers pick up bigger items from the warehouse. shop owner may be open to part payment of business..
Cons - more expensive to buy. Shop in another town about 30 minutes away and not in the best of locations, still has 18 months lease (this may be able to change and we could move the shop down to our town, but this would involve a big move, fitting out new shop etc...) this all hinges on someone taking over lease on old location. Bigger risk, taking up all of our money. Commercial rent down our way is a little more expensive and sparse.