Page 58 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 3: Pre-Store Opening

Notes
How to find the right business for you?
Make a list of retail type businesses you would not like running and then do the same for
the ones you would like to run. The list that you like is the areas you should concentrate
on. Liking what you do and making money is the likely step to being happy with your
company. It is also a business if other factors are reasonable, you will have a very good
chance of success running. Making money in a business that you do not like is not enough
for most people. Over time they will come to dislike going to work and will eventually
sell out.
Another factor that is not always considered by a new owner is the hours you will need to
be at work. Some one always needs to be there during store hours. If you have a large
older family this may be an easy problem to solve. On the other hand if your spouse has
a job and you are the only one available you will be elected to work the hours that need to
be covered. This may be necessary at the beginning as you may not be able to have all the
employees you need to cover the store hours. Some people in the food franchise business
have discovered that all they purchased was a gruelling job with endless hours of work.
If you were purchasing a successful existing business with employees, you would be wise
to find out what the staff plans to do when you take over the company. You really need to
find out what key employees are planning. This could be critical to the continued success
of the company and keeping the business on an even keel.
A great suggestion right after you take over is to have a meeting with all of the employees
to introduce yourself and discuss any significant changes you plan to make in the near
term. You would be smart to keep changes at a minimum for a while if the business is
already doing very well. Change to show who is boss is a stupid thing to do.
Money makes the deal happen
Money is the key ingredient when buying a business. A cash deal will be the cheapest and
the easiest to complete. Finding additional money over what you can put up is the next
common hurdle that a new owner has to face. Some would-be owners have other assets
that they can use as collateral to make a loan. Other potential owners will approach the
business lenders that can be found on the Internet. Many will have spoken with their
banker or relatives. If you can get the extra money from disinterested third parties you
should be able to buy the business for a better price since you are offering a cash-out deal.
Bringing the needed money to the table makes for a better bargaining position.

Buying on terms from the owner will usually cost more money in the price and interest.
Many owners do not want to stay connected and will not consider a terms deal. The best
you can do is making the offer and see how the current owner replies.
Conclusions
The retail business is a smorgasbord of possible business ventures. The yellow pages of
any major city will verify the huge number of possible business types. It does not matter
what your interest are, you will find a business to help you with your needs. This opens
the door for you to either buy or start a business that you have an interest in owning. Your
basic interest will help you live with the business once you own it. It is a strong factor in
the success of the business. Running a business you like will be very helpful in facing the
day each morning when you get up and have to go to work.

The wonderful world of retail business is so diverse that there is room for just about any
kind of retail business. People with very specific needs will go to special retail shops and
those with usual needs to go to the stores that are most convenient for them to go to. This
area of ownership really comes down to the interest of the owner.
Contd....

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