If you could buy a small gun shop... Jan 19, 2018 23:23:24 GMT -6 via mobile
Post by weapon on Jan 19, 2018 23:23:24 GMT -6
These are not questions I would expect you to answer on a forum but ones you may want to ask yourself before jumping on a small business, particularly a gun store:
Does he have a solid customer base? If so, will they move on to a different shop if he decides to open up another gun store at a later date? If there is any possibility of that, you may want to consult an attorney in your area to see if a noncompetition clause in the sales contract would be enforceable in your state.
Do you have cash reserves set aside to you cover you if there any problems (FFL issues)/slow sales periods?
Have you had a chance to look at the accounting books? If you buy the business (name, location, etc), are old creditors or service providers (telephone, electric company, landlord), etc going to come after the business for payment?
Location issues can be a big problem. Would you own the building or is he leasing it from someone else? A new owner often feels like a perfect time for a rate increase from a landlord’s perspective. If you are in city limits, is the city planning to re-zone the area in any way that might screw you? Basically, “how much are all of the monthly expenses at the current location and is there any reason they might increase?” Don’t forget about liability coverage for accidents and so on.
Is the local customer base the “buy local” variety or the “screw him, I can get it $5 cheaper online” variety?
If you are buying the inventory, is it 100% clear of previous creditors claims?? Does the current owner have any bad blood with any distributors or direct sources for guns, ammo, accessories?
What is the current reputation of the store and the store in its present location? BBB conplaints? Good or bad online reviews? Even if you change the name of a business, putting the same type of business in the same location can haunt you. “That place right there is that gun store that screwed me...” and that type of thing.
There are lots of potentially problematic issues with a brick and mortar business. Dig up every shred of info you can find.