Has anyone ever owned or even better, purchased a convenience store? Or even thought about it? haha
The reason I am asking, a local gas station has came for sale recently in my area. I live in very rural North Carolina. The gas station has been there for probably a good 25 years.
The current owners have let the business run down. They had employees (family members) stealing cash, they stopped purchasing inventory (such as ciggs, candy, ect!) so in result customers stopped coming out of frustration. End result, people stopped coming as often...which has ruined the business.
From talking to my dad, who is interested in purchasing the business (along with me but he is a "regular" there)...a long time employee (non thief), they would bring in 2,500 per day when the business was ran correctly.
I don't know much about the convenience store business, but I would assume a safe estimate would be a 10% profit on overall revenue. Pretty much not making anything on gas, but making probably 20%+ or more on items in the store. I think that is a safe estimate, which would put profits around 90k.
Then I know I would have employee expenses, insurance, and power bill.
Some other details, the store is on 2 acres of land.
They were asking 250k, and willing to owner finance 125k.
They are no down to 200k and I would assume they would be willing to finance half of that. They are wanting out and pretty desperate at this point.
Lastly, they don't want to show tax returns. I would assume this is because one, the business has went down and they probably don't file close to what they should so it is probably way off.
Ten years ago, the business was purchased for $130k.
Any questions, advice would be greatly appreciated.
The reason I am asking, a local gas station has came for sale recently in my area. I live in very rural North Carolina. The gas station has been there for probably a good 25 years.
The current owners have let the business run down. They had employees (family members) stealing cash, they stopped purchasing inventory (such as ciggs, candy, ect!) so in result customers stopped coming out of frustration. End result, people stopped coming as often...which has ruined the business.
From talking to my dad, who is interested in purchasing the business (along with me but he is a "regular" there)...a long time employee (non thief), they would bring in 2,500 per day when the business was ran correctly.
I don't know much about the convenience store business, but I would assume a safe estimate would be a 10% profit on overall revenue. Pretty much not making anything on gas, but making probably 20%+ or more on items in the store. I think that is a safe estimate, which would put profits around 90k.
Then I know I would have employee expenses, insurance, and power bill.
Some other details, the store is on 2 acres of land.
They were asking 250k, and willing to owner finance 125k.
They are no down to 200k and I would assume they would be willing to finance half of that. They are wanting out and pretty desperate at this point.
Lastly, they don't want to show tax returns. I would assume this is because one, the business has went down and they probably don't file close to what they should so it is probably way off.
Ten years ago, the business was purchased for $130k.
Any questions, advice would be greatly appreciated.
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