When it comes time to buy a convenience store, finding the right location is key to buying a successful business. Convenience stores live and die on convenient and easy access for customers to drop by and make their purchases, whether the store is located in a shopping center, along with a gas station, or is a standalone business. While the due diligence phase will allow prospective buyers to examine the financials before they buy a convenience store, here are some highly effective techniques for scouting out the location to determine if it is an asset to the business.
Check On The Location Multiple Times A Day
If you plan to buy a convenience store, most buyers will come to the location to determine how easy the store is to access along with parking and road conditions. However, to get a true picture of how well customers are getting to and from the store, prospective buyers should check multiple times during the course of a day. What if during morning and evening rush hours, traffic backs up and blocks access? These types of issues are essential to find out before you buy a convenience store.
Be Your Own Mystery Shopper Before You Buy A Convenience Store
Like test driving a car, take a tour of the store. Buy gas if the store offers it. Make a few purchases inside and try to pay with a credit card. Use the bathroom and peruse the aisles. The condition of the store on a normal working day can reveal a lot to an entrepreneur looking to buy a convenience store. Take a moment to talk to the cashier and ask a few questions about how well the store is being run. The more details you can attain from the mystery shop, the more informed purchase decision you'll be able to make.
Visit Comparable Locations
Similar to the above tip, try talking to the managers and owners of other convenience stores in the area. Most owners would be glad to 'talk shop,' giving you the opportunity to find out information from another location before you buy a convenience store. However, if you are under a confidentiality agreement, remember you are not permitted to discuss any details of the purchase deal you are currently engaged in.
Focus On Safe Neighborhoods
In this industry, it is especially important to buy a convenience store in a safe neighborhood. There are a few ways to find out which location is in a good area. Crime rates are recorded by cities and are available for review. You can also check recent police blotters as well. A great way to get an instant answer is to politely ask a police officer who is on duty in the area.
These tips are designed to educate buyers who want to buy a convenience store and turn it into a successful business. However, it is important to note that although location plays a critical factor in the purchase decision, due diligence should also be performed by reviewing financial records and inventory before a final offer is made.
Looking to buy a convenience store business? See all convenience store businesses for sale in California - or sell a convenience store business and reach thousands of c-store buyers. Also keep up to speed on the California convenient store market (with industry business brokers & experts) with upcoming BizBen Online Talk Shows & Webinars.
About The Author: Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily). Peter Siegel can be reached direct at 866-270-6278 to discuss selling a convenience store, financing a convenience store purchase, or buying a California convenience store.
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|Matt Sadati, Business Broker, SF Bay Area, Northern CA
I have Engineering and Law, JD degree, with over 30 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 33 businesses each having one to 30 branches.
|Mike Brewer: Liquor License Brokers, ABC Consulting Services
Liquor license brokerage and consulting services. We provide: Alcohol License Transfers Application Consulting & Processing, Liquor License Purchases & Sales, City Zoning Permits & Land Use Entitlements, Public Convenience or Necessity Findings and Letters. Phone Mike Brewer direct at 800-437-1100.
|AJ Rana - Business Broker, San Francisco Bay Area
Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Ranvir S. Sandhu, Esq. - Legal Services For Buyers And Sellers
I've worked at top Bay Area law firms and have extensive experience with business entity formation, mergers, dissolutions, conversions, employment matters, including experience in reviewing and negotiating transactional documents such as leases and purchase agreements.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
|Joe Ranieri, Business Broker, Orange & LA County Areas
Having owned retail/restaurant businesses for over 20 years, my interest turned to listing and selling businesses rather than owning them. I specialize tend to specialize in Orange County high volume restaurants, fast food independents and chains, bars and liquor stores. Call 714-292-5448.
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