If you are thinking of buying a retail store, consider 15 tips offered by the North American Retail Hardware Association. The first five can be found in Friday’s blog, the second in yesterday’s blog. And the final five are:
11. Government Regulations: What federal, state and local government regulations apply to the physical facilities and operations? Environmental review? Safety and health rules? Employment discrimination laws? Tax rules? Public access rules? Zoning and building codes? What licenses and permits are needed?
12. Location: What about the neighborhood? Is it growing or deteriorating? What about the customer base? Age? Income? Home ownership? Will the location attract enough consumer traffic? What other stores or shopping areas might divert customers from your proposed location? What other stores or shopping areas might attract customers? Is parking sufficient and convenient? Is it easy to get into and out of your parking lot?
13. Competition: What competition is already in the area? What could be coming? What are the strengths and weaknesses of possible competition? How would the store you propose to buy compete with these competitors?
14. Personnel: How many people will you need? In what capacities? What will your payroll costs be? How will you compensate employees? Will current employees stay with the store? Where will you find new employees? Will family members be involved?
15. Advertising: Can you create and execute an effective advertising program? Do you know someone who can help you?
Good tips, worth heeding, I would say.