[trekbiker2006]

To start i have a chance to buy a bike shop in my area for the sum of 30,000 thats for the shop contracts the whole thing just wondering what other people think possibly if someone owns a bike shop and could give me some insight any comments would be greatly appreciated

thanks chris

 

[Transcend]

what the hell? there must be some HUGE debts you would be assuming. Most shops I know have more then that in inventory alone.

Add in tools, service contracts etc....you start to see thats something must be fishy?

 

[firetoole]

woooo that's uber cheap unless...


it's a Schwinn dealer

 

[maxyedor]

I hope thats either $300,000 $3,000,000 or it's in some other currency. Any shop worth owning would cost a lot more than that.

 

[jimmydean]

There was a shop in Hood River for sale for $35k, nearly all the inventory was not paid for (I guess IH and a bunch of others do the pay when sold deal).

I would look at how well the business was/is doing and what sort of clients the shop has. I know Troy at Santiam did a ton of research before he bought out the owner. he was the manager for years before purchase too, and he didn't go in alone.

I wouldn't mind owning a bike shop, but I also like having money to spend too

 

[OGRipper]

Hate to be skeptical but if it looks to good to be true it probably is...$30K sounds really low but not unheard of for an independent shop with an owner that just wants out. If the shop is a business entity like a corp or an LLC, you want to buy the assets, not the company itself - that way you won't get any undesired liabilities. Be careful about whatever liabilities you agree to assume, and make sure there is a solid lease with some time remaining that can be assigned to you without the landlord's consent or a rent increase. If the Landlord's consent is required, get it BEFORE you sign a purchase agreement or put in a provision that allows you to back out of the deal if you can't get the consent without a rent increase.

Make sure the inventory is paid for and/or you know the status of those accounts.

Lastly, the contracts you mentioned may or may not be so easily transferrable, and you may not get the same extensions of credit from suppliers. To the extent they are important you will want to find out in advance that you can take over without losing key accounts.

 

[Changleen]

If you have to ask the question on RM, you're not ready to buy it.

 

[SXtrailrider]

If your going to make your own buisness as a bike store you better amke it an online store. You will make more $$$ that way.

 

[Transcend]

If your going to make your own buisness as a bike store you better amke it an online store. You will make more $$$ that way.

You clearly have no idea what you are talking about, but thanks for trying.

 

[maxyedor]

If your going to make your own buisness as a bike store you better amke it an online store. You will make more $$$ that way.

How do you propose he gets market share away from the fine online retailers we have already. You should have sarted an online shop 3-5 years ago, the boat has sailed IMO.