Should I buy a local stained glass supply store?

Definitely check out the rent, utilities and landlord. My closest retail stained glass store was kicked out by her new landlords. Do you have any experience in running a retail store? You must keep up with taxes, payroll, inventory etc. There is the cost of a business checking account and credit card fees. Good Luck,

I own a retail store and my retail sales are up over last year and last year was up over the year before that. I've had my store for over 15 years. You can make any business work if you work at it. Does this business include the realestate? Get a look at the Schedule C on the tax returns for the past three years. Have an accountant go over it so you know what the profit and loss is. Have someone from the SBA come in and help you evaluate the business. If you have little business experience you might have a tough go at it. There's more to running a retail shop than just selling supplies and making things.

A couple of comments.

First, don't be blinded by "stars in yer eyes". If that business was such an opportunity, the current employees (at least one of them) would be figuring out a way to buy it. Ain't nobody ever had a business for sale that wasn't "prosperous". A sale for "health reasons" ususally means they are sick and tired of losing their ass. A profitable business with a 25 year history ought to have a younger family member or an insider that is willing and able to take over without announcing to the entire client base that the business is for sale. That is a totally dumb move on the current owner's part. I'd NEVER advertise to my customer base that I was thinking of selling.

Having owned a retail store (in an entirely different industry), I can tell you first hand that it takes a special psyche to be successful in retailing. You have to be willing to work at least 50% more hours than the store is open each week. If you are open 6 ten hour days, you better figure on spending 80-90 hours there to do the office work, cleaning, stocking, writing payroll checks, ordering supplies, bookeeping, etc. It ain't a rose garden. And of course, you'll have the personnel problems...those already trained people may not choose to stay on, so you'll be looking at hiring people who have little to no experience in an area where you will need the most support. Or doing it all yourself.

Good luck.

Geez everyone is so cynical. I'll tell you what you want to hear, and you provide the answers. What do you want out of this? You say you love the business, and they are always busy. That's 2 great reasons right there. Do you need to make a primary living, or just supplement? Big question. Not too many artists make enough to live and then retire on. If the price is right, and you fully unsterstand what running a retail business is, then why not make yourself happy? Money isn't everything. Being happy is. You may always regret not doing this.

I agree that personal happiness is primary. And not going for the brass ring when you can may lead to regrets. You are right.

But don't throw good judgement to the winds. Businesses are easier to get into than they are to get out of.

Thanks for all the advice. There's a lot to think about. I may be getting in over my head at the current level of my business experience. To answer Glassman's question: It would have to be the primary source of income for me. I agree happiness is more important than money but then not having enough money to live would make the happiness rather short-lived. I'll have to think & pray hard about it and hope I don't regret the decision either way it goes.

Thanks again, Cathy

Have an accountant look at the books and tell you what it's worth.

Cathy many times all it takes is youth, energy, and willpower to turn a stagnant business into a new place. How many times have we seen a little "dive" change hands and become a thriving business. I was working in my garage when I got a call from my local SG shops' owners father. "She's running the place into the ground, she doesn't even have any solder", he said of his daughter. "JK, make me a reasonable offer and the place is yours", he told me. I was doing OK, but not great, working out of my garage. I really had to think about this a long time. I bought it for a song. Little inventory but a cheap rent and a legitimate storefront. 20 years later, it was the right decision. If as you say they are already successful, then why not buy it for a really great price. Inventory plus, and make it happen.

Who else is around you? Are there other places nearby? Go sit across the street in a parking lot , observe, hell, go in and introduce yourself and look around. Just don't say, "I might be your new competition" but be low key and honest. Se what others are doing and how well, not how well they tell you. Sit in the parking lot away to observe, see how much traffic they really have on different days besides payday... learn, lots to learn,

experience.

Just to add to my little story.... when I started out there were 5 other SG places within a few miles. In a matter of a short few years there are none left except me. I could never figure out of it was a good or bad thing!

Ok, since you've all been so helpful (thank you) I will give you another consideration that would weigh in the decision: What I am doing now and would continue if I didn't buy the store. As I said I've been working in stained glass since 2001. Up to 2004 it was just a hobby and I did things for myself. In 2004 I declared myself a business officially to the state and started doing craft shows (some limited success there but mostly just covering expenses). I also established myself on the web at

My money making job for the past 10 years has been as a computer programmer. I recently left that line of work having tired of it and am now a full-time student studying graphic design/computer animation at a local community college. I had saved up money for this transition. The plan is (was?) to get the graphic design degree and then a job most probably doing web site design and/or computer animation. This I feel would use my artistic talents as well as my computer background. I would still continue the craft shows and a small presence on eBay. I would hope this would lead to some happiness too but I wouldn't be my own boss (unless I free-lanced).

So those are basically my alternatives. Anyone have any different thoughts than already expressed?

Cathy

It sounds like you don't really have any business experience, especially to jump in and take over a retail shop. If you want to design and do web design, I doubt you have time to do that if you're running a retail store. this is a decision you will have to make. I think you need to go and talk to a counselor at the SBA so you can get a real idea as to what's all involved. Also, running a full time retail shop won't give you the time to do craft shows. If you want to run a retail shop then you have to be prepared to take on real commisions that can take a lot of time. Talk to the SBA, your banker and your accountant before you do anything.

Andy

Just to clarify to Andy (and anyone else reading): I definitely realize the store would be the full-time attention. I never thought it would be store and web design or store and shows. It is definitely an either/or decision. The web design plan was already going when suddenly this other opportunity presented itself. And I also realize I have very limited business experience which I mentioned already (which was where I was hoping the present staff would stay on).

"And I also realize I have very limited business experience which I mentioned already (which was where I was hoping the present staff would stay on)."

I would never rely on the staff to handle any of the business affairs that you should have experience (or at least knowledge) in. Employees come and go and often times they take with them valueable information to competitors. Like I said, go see the SBA, your banker, your accountant and even an attorney. The SBA will be your best source of face to face information. Remember, you get what you pay for and the advice here is free. :-)

============================================================== Somewhere in the earlier threads, someone opined that if it was a great deal and going concern, why did not the current staff show a major interest in buying it?

I have been in business (here comes the FLAMES) for about 26 years, a home based, low to no overhead, plenty of free time to "play" and refuse what I did not want to do, supply galleries with lampshades, (no suncatchers from me) freedom to "close" referral type business and teach 3x to 2x to 1x to 0x a week at the local/loco community college (no more of that). I have seen all SG shops/stores in the area come, swear they would/could put me out of business, sell supplies, teach glasses and do commissions..........LEAVE. Perhaps specializing in shades (GOOD ONES) has given me an edge, as well as the skill to market them MYSELF!!!!!!!! In many other of my posts I have always stressed YOU MUST KNOW HOW LONG IT TAKES ( I run a time clock and still do) to make any project and all the costs involved in producing it......with a store you have EVEN MORE COSTS before you even get to score a piece of glass. I too, agree that if you can financially afford to "work for free" for about a year, not obsess enough to make you SICK, follow your heart..AFTER you explore all the time and expense in owning your own business!

Not everyone is "adaptable" to working for ones self.....likewise where would we be if there were NO self-employed store owners?

howard

Anyone can be a web designer. Heck 12 year olds are doing it. How many can say they are real stained glass artists? Go for it. Buy it for a song. What's the worst that can happen? My guess is that the worst case scenario is that you won't make as much money as you want/like/need. At that point you'll sell it to someone else and maybe take a small hit, and go back to the real world of paychecks. You may never have this chance again. Entrepreneurs take risks.

JK,

You've mentioned buying the store "for a song" a couple times. Do you have a price range in mind that would qualify as a song? The notice the owner sent said they are wanting to sell the business for $15,000 which would include the company "goodwill" (whatever that is actually), the customer lists, office equipment, tools, etc. The inventory they will sell at wholesale rates and estimate the value being $70,000. They also gave an itemized list of 2005 expenses totalling approx. $110,000. No mention of what the 2005 income was.

If I remember, this store has been around for 25 years? I'm guessing that maybe half of that $75K inventory figure is obsolete. It's glass that is no longer "fashionable", etc. Ugly colors, bad textures and the like. Personally, I wouldn't invest a penny in anything but full sheets of current catalog items. And then only from Spectrum and Kokomo and Bullseye. Any other glass mfg I'd discount heavily because it will be slow selling. Partial sheets and scrap are just that, scrap. New, unopened boxes of metal came are worth wholesale. Opened boxes? How much is damaged, twisted, etc? Tool inventory is probably worth wholesale, unless the packages are shopworn. You have to remember that inventory has no particular value other than a commodity to be exchanged for cash to buy more inventory with. Having "inventory" that nobody will buy at any price actually costs you money. First, that money tied up in obsolete or badly selected inventory is money you could have had otherwise invested that would have actually made you money. Second, you are paying rent on floor space to house the stuff you can't sell.

The leasehold improvements, such as glass racks and work tables and counters have "some" value. They'd have to be made out of solid walnut, though, to be worth $15K. IMO, customer lists aren't worth the paper they are printed on. How much office equipment can a retail store have, anyway? And how obsolete is it? Shop tools are used....every day you could buy enough used cutters and pliers and soldering irons on eBay to replace what you'd be buying for a few hundred$$.

Itemization of expenses will tell you a lot. You need to know what the sales figures are, too. You need a breakdown of sales by supplies, custom work, and classes.

Knowing what the beginning of the year inventory is, adding the cost of the goods purchased, and subtracting the ending inventory will tell you what the cost of the merchandise sold was. You also need to know what part of the purchases were consumed internally for custom work.

If you can scan the expense statement and email it to a few of us we can give you lots better information. You have photos of the place?

For GODS SAKE, call SCORE. The service corps of retired executives gives me access to SMART people who think differently than I do. They charge nothing and are very good at asking questions that make you ask SOLID questions to broaden your perspectives. These guysa can help you flesh out your decision making process......

There is one universal truth to being in business, (anywhere else for that matter)

YOU DON'T KNOW WHAT YOU DON'T KNOW.

Scott.