1st time buyer of the lease of a Convenience Store
This is the ad which I think would suit me and my mother in are first business. We both have worked in shops before and both believe that it cant be that hard to run are own convenience store. We are thinking about buying the lease of an existing running business. In order to finance this we will get a loan in the region of £60,000. Profitable COUNTER NEWS, CONFECTIONERY, TOBACCO, GREETING CARDS, STATIONERY, ICES, SOFT DRINKS, slight CONVENIENCE GROCERIES. Features Single fronted medium sized Sales Shop, approx. 13 ft. frontage x 25 ft. depth, with lino floor, fluorescent lighting and fully equipped including modern adjustable shelving, 2 greeting card display stands with drawers, Walls’ ice cream deep freeze (on loan), plus 1 additional deep freeze, upright double-door drinks fridge, upright single-door drinks fridge, counter, 2 electronic cash registers, etc. Turnover WE ARE INFORMED the turnover averages £6,200 p.w. in our opinion offering further potential to increase in the right hands. Wholesale newsbill £950 p.w. Gross profit 17% approx. Staff The business is at present operated by a husband and wife team with the assistance of 1 part time staff. Opening Hours Monday – Saturday inclusive – 6 a.m. – 7 p.m. Sunday opening – 6 a.m. – 1.30 p.m. Closing 1 p.m. – 3 p.m. for lunch Accommodation The accommodation with FULL GAS FIRED CENTRAL HEATING comrpises: 2 bedrooms (1 double, 1 single) Bathroom with bath, w.c. and wash hand basin Lounge Kitchen Outside Medium sized garden. Driveway with parking. Tenure We understand that subject to satisfactory references the landlady is prepared to grant a new 10 years lease at a rental of approx. £8,300 p.a. exclusive of rates, with rent reviews. Uniform Business Rates: £2,650 p.a. approx. + water rates (metered). PERSONALLY INSPECTED AND HIGHLY RECOMMENDED Price TO INCLUDE THE SECURE LEASE, GOODWILL, FIXTURES & FITTINGS, £44,000, plus STOCK AT VALUATION (£15,000 approx). SUBSTANTIAL LOAN TO AN APPROVED APPLICANT Please comment on anything we have missed out on, or any surpises which we will be hit with. And if you think its a good business to start off with? etc etc… Please reply…
Peter, I would say ther first thing you need to do is go shopping. Check out the store over a number of occasions during the week. Is it busy? how much are customers buying etc ? Is this the one for you ? Maybe talk to some customers after they leave to see what they think about it. Second thing is get someone to go over the accounts (yes i know I am biased being a bean counter) to make sure they are real. A lot of folks are happy to spend £60,000 on a set of unaudited books that could be full of rubbish. It isnt hard to dress up a dying business to look good for 12 months of accounts. Final thing is to get a lawyer to check the terms of the lease are all ok. And if it all stacks up, make an offer. You should be able to recoup the proffesional fees if they are half decent proffesionals as they should give you some bargaining chips. Finally make sure the stock is all there, and there is a proper stock count done for the change over. Another common area of dispute. On the loan – I would be suprised if anyone will pay 100% – you will probably need to contribute some of your own capital. Hope this is of help to you. James Smith Chartered Accountant http://www.uktaxshop.co.uk 01284 764436
James Smith [i]Chartered Accountant[/i] www.jamesesmith.co.uk --------------------------- Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
Hi Peter, If you want to send over the lease ( a copy) either by fax if under 10 pages to 0870 240 6780 or by post we can look over it for you firstly for free, if there are problems we can give you a quote for the work and explain why it must be done. There will also need to be some searches which we recommend which show up local area issues etc.
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