running a pet shop

[coralfarmin]

My wife is in process of, opening a pet shop, actuly it is already open and fully stocked...the only shop in town and for many towns around.

I never wanted a actual shop but, she insisted that its better to buy one already running.....the salt section is lame at best so atleast I can help her here.

Any advice on how to avoid costly mistakes while transitioning the ownership, she is scheduled to take over first of september.

 

[coralfarmin]

forgot to mention I'll be doing all the tank and general maintence for her, there are no dogs or cats ....1 iquana 1 snake and several birds....mice, hamsters etc.

she plans to leave the store as is since it is sucssful, except I plan to make a full blown salt section(she approves)....I notice every person walking in looks at the saltwater fish and asks how hard it is to keep them.

 

[Anonymous]

have you inspected everything, AC, structure, etc? Is there enough power to handle future upgrades?

 

[coralfarmin]

ac is new structure is great....rental

she is just buying the stock and taking over, contingent on the lease remaining the same

 

[Anonymous]

ac is new structure is great....rental

she is just buying the stock and taking over, contingent on the lease remaining the same

I got the renting part, but, some rentals the AC, sprinkler heads, etc are a tenant upkeep obligation. This can kill a business. Sprinkler heads rust, they break and flood stores. I know a store that this cost them so much they folded that very month. Check what is a TI (tenant improvement) and what is the landlords obligation. Some leases you even have to pay to upkeep the parking lot, etc. These little details can be a deal breaker so keep en eye out for them.

As for the structure, it doesn't matter who is responsible in my reasoning as if it needs work it will highly impact your store. Sure they may have to pay, but the loss of business sometimes is not regain'able. Customers are fickle. Few times coming to the store and your closed, cross them off the list.

I'm just highlighting things that most don't usually. They pay attention to filters and such and end up getting nailed with a $20K AC bill, etc.

 

[coralfarmin]

thanks greshamh

I'll check everything.this is a small store on the main street so the city keeps up the parking and its right straight across from the police station.

 

[coralfarmin]

http://www.freeimagehosting.net/image.p ... e85845.jpg ill try to post a few pics to give a idea of the size

 

[coralfarmin]

http://www.freeimagehosting.net/image.p ... 36b97d.jpg not very good pictures since i took them with my phone down, the center is over 30 20 gallon high tanks on stainless racks and the tens and 20 longs are on the walls...there is about 40 10 gall and 20 20 highs on the walls. I need to go take better pictures of the outside and inside

 

[coralfarmin]

oh...the price tag was just $10,000 I've known the owner awhile , he has cancer, the reason for selling the store.

 

[Anonymous]

First picture

Second Picture

Got a store front shot? Looks like it's in decent shape and you can't beat that price 8O

 

[swsaltwater]

Cant beat the price, looks like thats whats there in inventory. HVAC being landlords reponsability is a big plus, seend that put out a few stores. Make sure the owner leaves all the inventory and does not do a blow out last minute sale before takeover. Guy I bought my shop from did that, sold 1500 dollar tanks for 200 bucks and fish were basically given away. I forced him to take 40 k off the sale price after that since contract was not final. I got lucky........

 

[coralfarmin]

I have a poor front shoot since it was raining...I'll get a good one next time, but it looks newish

 

[coralfarmin]

http://www.freeimagehosting.net/image.p ... 9a4f72.jpg

here is the poor front pic, I was in the car when I took it, it is spotless in the back section, storage huge fiberglass sinks overhead averages 850$..rent, lights, water etc...

we are crossing our fingers, they are actualy leaving everything in the back, front and all, they even stocked the fish..they are getting older (70-80+) and been in the business since the 60's all over the US

 

[Anonymous]

Cant beat the price, looks like thats whats there in inventory. HVAC being landlords reponsability is a big plus, seend that put out a few stores. Make sure the owner leaves all the inventory and does not do a blow out last minute sale before takeover. Guy I bought my shop from did that, sold 1500 dollar tanks for 200 bucks and fish were basically given away. I forced him to take 40 k off the sale price after that since contract was not final. I got lucky........

Great point. I've seen that happen as well. It's best to get it all in writing I'd say.

 

[coralfarmin]

thanks, we plan to have a lawyer look it over first, everything will be in writing, great advice thanks

 

[coralfarmin]

since we have financing and the stores been running awhile....how bout a busness plan, should we work on it before or after aquiring the shop

 

[Anonymous]

since we have financing and the stores been running awhile....how bout a busness plan, should we work on it before or after aquiring the shop

IME it's best to enter knowing what your plan is, so do it now as best you can.

 

[coralfarmin]

thanks, for the advice

 

[reefrash]

As Gresham said, it's good to have a plan, I wouldn't start any business without tweaking numbers like crazy.

If you have limited space you may want to consider carrying livestock and equipment that emphasizes nano reefs, not only are they popular, they are a stepping stone for people that may give you time to dial in your systems for larger tanks and more advanced customers.

 

[coralfarmin]

I have plenty of room, I will have a nano(10 gall) on the checkout counter though. Most coral will be held at home in a greenhouse system , that I still have to build, and sold online, but the store will have a full blown salt section......to start I have a oceanic 25 gall octagon that will be the store display for live coral....I will add a rock vat and a shallow fiberglass vat of coral for sale.

then just take it a day at a time, I love nanos also.....even a 10 gall

I am looking into a acrylic retail bio unit for the salt fish.