Author Topic: Good time to take over pet store business?  (Read 2370 times)

Offline devittjl

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Good time to take over pet store business?
« on: September 30, 2016, 03:24:04 PM »
I have an opportunity to take over a pet store business in the West Puget Sound area. Is this a good time to get into this type of business? I don't want to be a doom and gloomer but sometimes the economic situation makes me hesitate to take on most of the business ideas I get, especially if they are a business with non-essential goods.

Details
Established business for 5 years
$155000 gross sales last year
Downtown area
Poor web presence (facebook, website)
Sells premium dog/cat food and supplies

I see lots of opportunity for growth with classes, dog washing station. Lots of opportunity with creating a better web presence for attacting customers. It is close ferry, business, college and houses. I would be able to take on the business without debt, but would deplete emergency savings. I have sufficient non-business income to cover my living expenses.

What are this group's thoughts?

Offline Mr. Bill

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Re: Good time to take over pet store business?
« Reply #1 on: September 30, 2016, 04:30:39 PM »
Well, on the positive side, people will always love their pets.  But...

$155,000 gross sales doesn't sound like much money left after cost of goods sold, rent, salaries (if there are any employees), taxes, and other expenses.

Pet food and supplies are available from lots of competitors (including Amazon).

Classes and dog-washing obviously can't be purchased online, but check out what is already available nearby.

Is downtown a good location for this sort of business?  How many people (and pets) live nearby?  Because I'm thinking that downtown commuters would probably do their shopping/classes/dog-washing close to home, and not downtown.

Improving the businesses' web presence is good, but showing up in the first page of a Google search (or even the first 10 pages!) is difficult (and mostly under Google's control).  (I've been learning this the hard way, with a website I built for a local roofer.  Nice website, but nobody ever sees it.)

I don't mean to be all negative, but this is the time to look at the negative side dispassionately.

Good luck, whatever you decide!

Offline ID_Joker

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Re: Good time to take over pet store business?
« Reply #2 on: September 30, 2016, 04:47:53 PM »
Ditto Mr Bill.  Calculate the net you expect to get off that gross income.  How much are they asking for the business? How many times earnings is it?  Could you deploy the capital somewhere else for a better ROI with less labor input on your side?

Offline never_retreat

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Re: Good time to take over pet store business?
« Reply #3 on: September 30, 2016, 07:27:32 PM »
Gross sounds way off. Did you leave off a digit? That's not enough money for any retail business to stay open.
There is a pet store (dog and cat) only and he seams to do well. Pet smart, pet value and another chain are all within 2 mile radius.