Convenience Store Business

[waddy41]

^How big is the place? Location?
Does it come with existing furniture, invenotry, anything?

[RollingStone]

Originally Posted by waddy41

^How big is the place? Location?
Does it come with existing furniture, invenotry, anything?

The shop is in North Vancouver and everything is included. The place is one of the bigger c-stores I've looked at, I am not sure of the exact measurements but its about double the size of a downtown C-Store. The building is quite old but I don't really care about that. The owners will also provide training.

The C-store has been around for a really long time and the current owners have operated it for 5 years. The reason they told me they are selling is because they are getting older and want to get into something else. (they have a teenage daughter that helps run the store)

Financing is not an issue, I already have the money ready. Thanks!

[Manic!]

Originally Posted by RollingStone

The shop is in North Vancouver and everything is included. The place is one of the bigger c-stores I've looked at, I am not sure of the exact measurements but its about double the size of a downtown C-Store. The building is quite old but I don't really care about that. The owners will also provide training. Financing is not an issue, I already have the money ready.

Training? Once the cheque clears there out of there. An Accord or A TSX will not cut it. You need an SUV or a pickup truck. What type of equipment does it have? Don't include Coke or Pepsi coolers because if they had it there way you would 20 of their coolers in the store. Does you wave a walk in cooler? Does it have a Slurpee machine? because they are really expensive? How much storage room is there because you can never have enough.

[no_clue]

did you sign a non-disclosure contract and did they provide you with up to date financial statements? "The reason they told me they are selling is because they are getting older and want to get into something else" is probably the most common excuse in the world. Check with your broker to see how long it has been on the market.Make sure to review every word in the contract, im assuming the purchase price includes the land,building,equipment and current inventory. What part of North Van? lonsdale, deep cove, lynn valley? I hope you researched thoroughly, with traffic/competition/density etc

Best of luck

[RollingStone]

I am not buying anything right now, I just plan on meeting with the agent to get more information.

I am not buying any building or property, just the business. The business has a really big walk in cooler and IRRC they don't have any coke/pepsi coolers. (this probably means I will have to buy pop from costco as well?) I will check if they have a slurpee machine next time I am there.

My dad has a Honda Fit that I can borrow, will that work? (it can fit a lot more than either the Accord or TSX)

P.S. what type of specialists do I need to hire to complete the transaction (I know I"ll probably need a notary). I don't have an accountant and I plan on using the one they are using now for the time being. Do you guys think thats a good/bad idea? I just want the transition to be as seamless as possible and change as few things as possible in the beginning.

As for the training part, my dad has experience with buying established businesses before. He told me all I have to do is to insert 'a month of training' before the final transaction is complete in the contract.

Thanks for your quick replies guys, I really appreciate it!

[RollingStone]

Some points I missed:

The store is in the Lonsdale area. One thing I really liked about this location was that the surrounding neighbourhoods are all apartments = higher population density. I did not get to see the storage area/office when I spoke with the other last time I was there. All I could see was that they have a kitchen (which I probably will gut out and use for storage)

[RollingStone]

no_clue

how do I go abouts researching traffic/competition and density? thanks!

[Manic!]

Originally Posted by RollingStone

no_clue

how do I go abouts researching traffic/competition and density? thanks!

traffic
stand in front of the store and count

competition and density
go for a walk around the neibourhood

Thats the cheapest way of doing it

[no_clue]

exactly what manic said.

specialists, you need a business lawyer. A financial adviser wouldnt hurt as well.
All your cars won't cut it, maybe the TSX as long as it only has the driver, no passengers.
did you take note of the parking stalls/convenience factor? I assume you are using icx.ca or mls.ca to find this business, be wary, the listing descriptions tend to be overly optimistic. When you get the financial forms, review it carefully especially the rent, you are just a tenant and note if you can make the business turn around.

Pepsi/Coke labled coolers are provided by the company I believe as long as they have exceptional product placement/exclusive rights. Costco only sells cans, not bottles and limited selections so you will have problems if you cant get a supplier. the big problem I think is dairy products, many people have different brand loyalty (dairyland, island??, forest? forgot the rest). for example I only drink dairyland products. However dairyland and its parent company saputo are assholes and charge $$$, so you gotta take note of which brand you will carry.

[Manic!]

Originally Posted by RollingStone

I am not buying anything right now, I just plan on meeting with the agent to get more information.

I am not buying any building or property, just the business. The business has a really big walk in cooler and IRRC they don't have any coke/pepsi coolers. (this probably means I will have to buy pop from costco as well?) I will check if they have a slurpee machine next time I am there.

My dad has a Honda Fit that I can borrow, will that work? (it can fit a lot more than either the Accord or TSX)

P.S. what type of specialists do I need to hire to complete the transaction (I know I"ll probably need a notary). I don't have an accountant and I plan on using the one they are using now for the time being. Do you guys think thats a good/bad idea? I just want the transition to be as seamless as possible and change as few things as possible in the beginning.

As for the training part, my dad has experience with buying established businesses before. He told me all I have to do is to insert 'a month of training' before the final transaction is complete in the contract.

Thanks for your quick replies guys, I really appreciate it!

By pop were ever you can get it cheapest but there is a lot of stuff you can only get from Coke/Pepsi like Monster and Rockstar Energy drinks.

We go to Costco 3 and some times 4 times a week. 12 to 24 4l jugs of milk bread, muffins, candy, chocolate bars, pop, water and other stuff. no way would it fit in a fit. A number of times we have to fold the ML seats down to fit every thing. A few weeks back we ordered a whole pallet of 1.5 liter water from Costco. trip one was in the ML and my Dad picked up some of the water and regular stuff we get. Trip 2 was we my Ford explorer Sport track and it was full inside and out.

[RollingStone]

Are c-stores normally really slow paced? As in you only get one or two customers in at a time, every 15 mins or so? I noticed this in all the c-stores I visited (except for 7-11).

As for the c-store I PM'ed you guys about, there is free parking on the street and free parking at the back of the building if that makes any difference.

This place's rent is also $4800/month do you guys think this is really expensive? I think that includes management fee/insurance. (I will make sure when I meet up with them) Thanks!

[sh0n]

Wow

Very useful information. Never store owning and operating a c-store that way

Makes me want to think twice about it.

[willystyle]

Originally Posted by RollingStone

no_clue

how do I go abouts researching traffic/competition and density? thanks!

Statistics Canada or if you got the dough, hire a consulting firm to do a thorough market analysis for you.

[RollingStone]

Update: I am going to pass on this North Shore c-store, the rent is just way too high.

I found another one that has higher sales and much lower rent. But it's asking price is double. Doing research on it now.

I really appreciate the feedback guys, keep them coming!

[waddy41]

maybe you should google "Owning convenience store"

[RollingStone]

Originally Posted by waddy41

maybe you should google "Owning convenience store"

Thanks, I am already subscribed to a few c-store/entrepreneur sites, all the same I'll keep searching for more. If you know any good sites/forums please let me know.