Thinking about taking over a existing carpet shop

Discussion in 'Introduce yourself' started by IRCARPET, Jan 28, 2020.

  1. IRCARPET

    IRCARPET New Member

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    Hi I am new to the forum, I am in talks of taking over an existing carpet shop as owner is retiring in the north east. anything to watch out for?
     
  2. Spacey

    Spacey Super Moderator Staff Member

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    Which shop
     
  3. Rugmunching

    Rugmunching Well-Known Member

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    Yeah look out for spacey, he's nosey ;)
     
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  4. IRCARPET

    IRCARPET New Member

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    Sorry- I do not want to make it public yet- when/if I take over I will announce it
     
  5. JB Flooring

    JB Flooring Well-Known Member

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    What area?
     
  6. IRCARPET

    IRCARPET New Member

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    Sorry not saying at the moment- would like advice please
     
  7. Neilydun

    Neilydun Well-Known Member

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    I would have thought some questions to ask would be,

    What is the current profit/loss/turnover ? How does it compare to the cost ?

    Is the customer base commercial/domestic or a mixture. Would the customers remain loyal to the current owner or the shop ?

    Are there improvements that could be made to improve productivity ?

    Are there any clauses in the lease, that will require you to make repairs. How long is the lease ?


    What experience do you have in retail & in flooring ?
     
  8. Paul webb

    Paul webb Well-Known Member

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    Might be worth checking out Google, Facebook, etc. Just to make sure they don't have a tonne of bad reviews, as they will become yours, also worth looking at the fitting diary, it will give you an idea of how consistent the sales are, obviously make sure they don't have any bad or outstanding credit accounts with suppliers
     
  9. Paul webb

    Paul webb Well-Known Member

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    It also might be worth speaking to the reps,they shouldn't give you any details of the business, but they might have an opinion on it
     
  10. Rugmunching

    Rugmunching Well-Known Member

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    Like it's already been said, I'd be looking at the reputation of the company first from the customers point of view then checking what volume of work load goes through there...
     
  11. Glenn H

    Glenn H Well-Known Member

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    All the above, always curious about taking over existing businesses... if its thriving then why would you walk away/retire
     
  12. Distinctive Adam

    Distinctive Adam Well-Known Member

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    Also how solid is the customer base and will it be likely that the fella will look to work out of a van in the future and keep some of his customers etc
     
  13. Samson

    Samson Well-Known Member

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    Biggest problem most new carpet business owners have is getting accounts with manufacturers, and progressing beyond the Lifestyle brand budget shop. It takes years. Sometimes many years. If the shop is of this nature, it is worth very little, probably nothing, and you may as well start from scratch rather than wasting money buying one.
    Alternatively if the shop is a limited company with extensive manufacture accounts that will be transferred to you, then it has real value, but will likely cost upwards of 50K. However, you will be still starting from scratch, and will need to prove yourself to customers old and new.
    I went down the latter route. If you are thinking of buying a long established shop and need more advice you can PM me.
     

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