Tips On Buying a Convenience Store For Sale
Just like any other business venture, looking into purchasing a convenience store such as 7-Eleven, Circle K or BP is something that you should consider very carefully. Though different businesses have different components that you need to consider before getting involved, most business opportunities will have some general characteristics that you can use to give you a better judgment of what you are getting into.
The area in which the convenience store is located is a key factor in what kind of success you will have in the business. When you are narrowing down the different available convenience stores, take note of their location. This will be important because the most successful convenience stores are those that are located in an area with high traffic volume. If you have a Texaco located off of an interstate ramp in an area where there have been no convenience stores for quite some time, you are almost guaranteed to get customers who are traveling on the interstate. If you know of a specific area has a great deal of road construction or will be involved in heavy road construction in the coming months, it might be smart to keep looking for another location. These types of situations tend to divert customers to other areas, which will cause a loss in business.
As with any business, you will need to evaluate the competition in the area. Are there other convenience stores in the area? Are there franchise convenience stores near by? You should also do some research to see if there are plans to build new convenience stores in the area since this could pose a threat in the future.
Another consideration is to see if you could add an ancillary service such as a McDonalds, Subway, or Taco Bell to your c-store. If you are moving into an area where your competition already has ancillary services in their business, you should determine whether you could do the same to your business.
If you a considering buying a franchise convenience store, you need to know what will be included in the franchise agreement. What percentage of revenue does the franchisor charge for advertising and other business expenses? What does the franchise offer and is there a franchise transfer fee for franchise resales?
There are advantages and disadvantages for buying a convenience store. Most of these are specific depending on the type of operation you are buying. For example, if you buy into a franchise convenience store such as 7-Eleven or Circle K, you will already have the advantage of buying a name brand business and the associated goodwill. In addition, most franchisors will support their stores by providing training and advertising. One advantage of having an independent store is that you can decide what products and services you would like to have in your store and you do not have to pay any franchise fees or royalties. You also have a lot more freedom in running your business. For example, if you want to add the ancillary service of a Subway, this is entirely up to you (with the approval of Subway).
In conclusion, you need to first decide whether you want to invest in a franchise or an independent convenience store. You will need to research the location, the competition and the demographics of the area.
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