Convenience Stores
I'm looking at purchasing a convenience store, does anyone have any experience with these? It seems like it's a business dominated by immigrants and I was wondering why other than it's an easy business to get into.
I understand the hours are long but other than that I don't see any drawbacks. There are 4 that are for sale in my city. From the information I have been able to research on my own and gather from RE agents, it's a cash business that's main source of sales are from cigarettes/lotto. (Anywhere from 40-60% of the business is cigarettes)
Obviously I need to do my due diligence but all 4 of these stores are claiming weekly sales of anywhere from 10-15k and lotto commissions of anywhere from 30-45k/year. 3 of the 4 stores claim net income is 100k/year (without labor costs) The one that doesn't claim 100k is stating about 75k net income.
Obviously lotto income is verifiable as is their sales of cigarettes.
It just seems if that these stores were that profitable why are they dominated by immigrants? Wouldn't everyone try and get into them? I'm also don't want to be in a position where I purchase a business that is dominated by immigrants and I am considered an "outsider" or something and I am shunned by that community and be in a spot where it makes it difficult for me to get supplies, join buying groups, organizations etc.
Also these business are all for in the $200k range. That would seem to correlate with net income figures at 2x net income. if they were dead business would they ask the standard 2-2.5x rate?
It would be rather unusual for a white guy to buy a convenience store but my industry died and I am looking at purchasing a business.
Does anyone know anything?
I understand the hours are long but other than that I don't see any drawbacks. There are 4 that are for sale in my city. From the information I have been able to research on my own and gather from RE agents, it's a cash business that's main source of sales are from cigarettes/lotto. (Anywhere from 40-60% of the business is cigarettes)
Obviously I need to do my due diligence but all 4 of these stores are claiming weekly sales of anywhere from 10-15k and lotto commissions of anywhere from 30-45k/year. 3 of the 4 stores claim net income is 100k/year (without labor costs) The one that doesn't claim 100k is stating about 75k net income.
Obviously lotto income is verifiable as is their sales of cigarettes.
It just seems if that these stores were that profitable why are they dominated by immigrants? Wouldn't everyone try and get into them? I'm also don't want to be in a position where I purchase a business that is dominated by immigrants and I am considered an "outsider" or something and I am shunned by that community and be in a spot where it makes it difficult for me to get supplies, join buying groups, organizations etc.
Also these business are all for in the $200k range. That would seem to correlate with net income figures at 2x net income. if they were dead business would they ask the standard 2-2.5x rate?
It would be rather unusual for a white guy to buy a convenience store but my industry died and I am looking at purchasing a business.
Does anyone know anything?