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Brando
 
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Join Date: May 2006
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Business help please

I have a retail location which I've held together through tough times and it has strengthened and done pretty well (at least it's still open).
I have an opertunity to get involved in a business like to mine across town but in a better location, mines not great but paying bills.
I can get more sales at this new location and higher end sales at that. Overall it's a great opertunity for advancement.
I have employees I could repurpose and management help there as well. I do technical work at my current location and can do the work for the new location and easily suck up that need.
It's smaller sq ft so I wouldn't be able to close my first store and move it there it's just not big enough. I could close my current location and do work from a satalite shop if need be but then I feel I'd be wasting money as I still make sales I'd loose doing that.
I feel like I can't pass this up. I'm only 45 so it's a good time for it.
So my option really is to have both stores and run them both with the help of some skilled employees I trust. It's not expensive, I'd need more inventory for the new store that I don't have, and I think I could figure that out as well.
What am I forgetting?
It's a Jewelry store and we do everything. I do lots of trade work for locals in the industry.
I'm not the brightest bulb but smarter than most the duds out there. What am I missing?
I hate big gambles but also don't like missing the boat.
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Old 10-01-2014, 02:48 PM
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Do you personally run your current store 100% of the time it is open? Or do you already have someone you trust on occasion?
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Old 10-01-2014, 03:29 PM
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Go for it! You sound like a pro.....what could go wrong?
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Old 10-01-2014, 03:36 PM
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Brando
 
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I have two girls I trust to be there when I need to drive the pcar out of town. They're capable and smart women. Trustworthy. They care about my bottom line.
One is full time the other part time wanting more. She's excited to fill in the gaps.
Old 10-01-2014, 03:51 PM
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Taunter of Asshats
 
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What do you mean by 'get involved'?

Partnership? Then I say hell no!..... or are you buying/starting a new store?
Old 10-01-2014, 04:37 PM
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Brando
 
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Good question. I'll own it but the option is there for partnership. I'm too selfish to partner up unless it means making someone care more about success. Tell me about good and bad of partnership.
It's an existing store or I just would not be intrested at all. I bought a store years ago that existed and would never do any other way. Starting up a store is seriously expensive.

Last edited by quattrorunner; 10-01-2014 at 05:09 PM..
Old 10-01-2014, 04:57 PM
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I am not to in tune with the jewelry business and not sure exactly how much you create or do in house but from your post sounds like maybe you have that capability.
Being a person who runs a small business I would look at keeping the current
location and adding the second. The first could be more of a wholesale, discounted items that are maybe not current or selling well and design repair location. The second new location could be your "retail" location fed by the wholesale location keeping only high end products you have that fits the locations market.

If the new location is a partnership I would suggest a strong written agreement by a professional that spells out every last detail.

Good luck on what ever you decide!
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Old 10-01-2014, 05:47 PM
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Brando
 
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My current location is not a great neighborhood but next to one. The new one is in a really nice outside shopping mall. It's high end and they need the jewelry store. There is only the one. This is too good to be true.
I design jewelry so there is nothing I can't do and this new store would more or less be supported by the old location as its a heavy technical design and repair facility. I do work for many stores and this one would be more profit when I do the designs for it. I'm talking myself into it. Only problem is lease. I don't have heavy liquid assets and they might need that.
Who knows about leasing companies and basic requirements?
Old 10-01-2014, 06:12 PM
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Are there vacancies near the new location? If so, the landlord may bend over backwards to keep a jewelry store there. Having a store go dark hurts the entire mall area.

If the mall is full, you may have less wiggle room for negotiations, but the one thing I know for sure, the landlord wants to keep the doors open.
Old 10-01-2014, 06:53 PM
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beancounter
 
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I'd recommend you work with a good attorney to help with a purchase & sale agreement. Is the business you're looking at operated as a sole proprietorship, or is there a legal entity involved? If a legal entity, you have the option to purchase the entity as a whole, or just the business assets can be purchased from the entity. Asset purchase is generally in the buyer's best interest. Consider whether there are any intangible assets that are important to you if you purchase the business. Is the name of the store valuable or would you change it? Any client lists, special designs, or other proprietary processes or info that are part of the business that you want to own when the dust settles? Do you want the seller to sign a non-compete agreement to keep him/her from opening a new store right across from the one you buy? Having all this kind of stuff in writing is important.
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Old 10-02-2014, 06:53 AM
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How does a jewelry store not have 'heavy' liquid assets?

Is your product designed by you? Could it be the issue is your designs?

I'm wondering if this existing store you're looking at going to isn't having some financial troubles and just needs someone else to help cover a lease they can't get out of.
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Old 10-02-2014, 07:35 AM
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I'd need to see the detailed financials: It sounds like you will be adding complexity to your business if you take on the additional store. Are you ready for the additional workload, even with competent managers?

I always plot my personal needs and desires against the expected return on investment financially before I take on new work.
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Old 10-02-2014, 07:37 AM
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remember, a step up can be a step out. absolutely no partnerships.
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Old 10-02-2014, 07:59 AM
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Quote:
Originally Posted by john walker's workshop View Post
... absolutely no partnerships.
That got my vote.
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Old 10-02-2014, 08:09 AM
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I have watched more than one person I know grow their business to multiple locations, and then find themselves stretched so thin, that they spilled the whole apple cart, and either went under, or are back to a simple operation.
Just think long and hard , and be honest with yourself about what you want from the biz, and the commitment that you are willing to give to it.
Bigger is not always better, but .... with more risk, can also come more reward...
Best of luck either way..
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Old 10-02-2014, 08:11 AM
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Brando
 
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Quote:
Originally Posted by berettafan View Post
How does a jewelry store not have 'heavy' liquid assets?

Is your product designed by you? Could it be the issue is your designs?

I'm wondering if this existing store you're looking at going to isn't having some financial troubles and just needs someone else to help cover a lease they can't get out of.
Thanks, yeah I forgot about my inventory. My attourny reminded me that I actually do have lots of that last night.
No the store is strong but challenged with bad management. They lost 5 stores in two years beause of some shady ethical practices that resulted in some jail time. This is the last store and the owner is not well as of late. Stress etc..has cost him his health. I don't want the name, just the location and business.
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Last edited by quattrorunner; 10-02-2014 at 10:38 AM..
Old 10-02-2014, 10:25 AM
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Brando
 
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Quote:
Originally Posted by Seahawk View Post
I'd need to see the detailed financials: It sounds like you will be adding complexity to your business if you take on the additional store. Are you ready for the additional workload, even with competent managers?

I always plot my personal needs and desires against the expected return on investment financially before I take on new work.
Good question. I have the space, tools and capability to handle both stores repairs and custom. I currently have all three employees here as competent bench jewelers/designers. I'm probably the only store in Vegas that can say that. I could unload some of my trade clients if I get too busy with my own work, I've done that before. They always come back if I need them later.
Nothing ventured nothing gained?
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Old 10-02-2014, 10:29 AM
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Brando
 
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Quote:
Originally Posted by fastfredracing View Post
I have watched more than one person I know grow their business to multiple locations, and then find themselves stretched so thin, that they spilled the whole apple cart, and either went under, or are back to a simple operation.
Just think long and hard , and be honest with yourself about what you want from the biz, and the commitment that you are willing to give to it.
Bigger is not always better, but .... with more risk, can also come more reward...
Best of luck either way..
Thanks good points. I too have witnessed this. I need to think it through completely which I haven't done yet but the easy points are that costs are lowish with the new store being only like 700sqft rent is low sorta. Payrol is also not crazy with two employees there at first.
Iv'e seen guys go big or go home and then just go home after loosing millions.
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Old 10-02-2014, 10:33 AM
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Brando
 
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Quote:
Sounds like it's time to make the two girls partners! Use their buy in money to shock the other store
Yeah it's an option. I like the idea of giving them something as an incentive to help me and motivate them for success.
I don't know.
Old 10-02-2014, 06:48 PM
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