Garage Business - What is actually for sale here?
Discussion
This is for sale just around the corner from me. I have never looked at businesses for sale and don't really understand the process or what is actually involved. Do you know any good websites with information for beginners? This is purely hypothetical at the moment as I don't have the money to buy it, but I would like to know more as its something I could potentially like to do in the future. Opinions?
https://www.rightbiz.co.uk/buy_business/for_sale/1...
https://www.rightbiz.co.uk/buy_business/for_sale/1...
So its basically £70k + £1300 rent a month + two staff to pay?
It is a good tyre garage but they definitely don't make the most of it. I have never seen any advertisements from them which seems strange since there are two large tyre places in the main town which always seem very busy. I am sure it would have a lot of potential with a bit of effort put in. They don't even have a website!
It is a good tyre garage but they definitely don't make the most of it. I have never seen any advertisements from them which seems strange since there are two large tyre places in the main town which always seem very busy. I am sure it would have a lot of potential with a bit of effort put in. They don't even have a website!
Is it the business that is available or is it the property? Its slightly odd that the business name is cut out the advert, after all if you are local, and you are likely to be if interested in this business, you'll know it anyway as the OP obviously does.
If taking on any business like this check what the lease terms are, and check that the lease is protected under the Landlord and Tenant Act 1954. You dont want to build up the business, get to the end of the lease term and find that the landlord is marketing the property and has you over a barrel on rent and other terms.
If taking on any business like this check what the lease terms are, and check that the lease is protected under the Landlord and Tenant Act 1954. You dont want to build up the business, get to the end of the lease term and find that the landlord is marketing the property and has you over a barrel on rent and other terms.
Does a tyre place need a website? Well other than merely as an online presence? If you have a website how do you keep it updated with latest prices etc? My suspicion is that most people will phone around to see what deals they can get.
Equally does one actually want to be the cheapest? Is there any money in it if you are cheapest?
Last time my car was serviced by a local independent garage he advised that the fronts were heading towards needing replacing. Didnt need doing immediately and he quoted a price. I wouldnt have dreamt of taking my car to him for tyres as he is MOT and servicing. However his tyre price seemed competitive which a ring round demonstrated, so a couple of months later he got the job.
I suspect the trick is to get known locally as being independent, reliable and competitive, once that happens its word of mouth and as long as prices remain reasonable you wont need to be the cheapest.
Equally does one actually want to be the cheapest? Is there any money in it if you are cheapest?
Last time my car was serviced by a local independent garage he advised that the fronts were heading towards needing replacing. Didnt need doing immediately and he quoted a price. I wouldnt have dreamt of taking my car to him for tyres as he is MOT and servicing. However his tyre price seemed competitive which a ring round demonstrated, so a couple of months later he got the job.
I suspect the trick is to get known locally as being independent, reliable and competitive, once that happens its word of mouth and as long as prices remain reasonable you wont need to be the cheapest.
Sorry to hijack the thread but how does this stuff work? I saw a place near me that's £40k lease and they state a £160k turnover. That sounds to me like the owner of the business also owns the building and is looking for somebody to lease the building (and business) from them for £40k.
Does that sound right?
Does that sound right?
MagicalTrevor said:
Sorry to hijack the thread but how does this stuff work? I saw a place near me that's £40k lease and they state a £160k turnover. That sounds to me like the owner of the business also owns the building and is looking for somebody to lease the building (and business) from them for £40k.
Does that sound right?
Doesnt mean he owns the building.Does that sound right?
He may want £40K for the business, fixtures and fittings, but you will lease (rent) the building from the landlord....it is possible he owns the building and you will rent it off him.
AceOfHearts said:
So its basically £70k + £1300 rent a month + two staff to pay?
It is a good tyre garage but they definitely don't make the most of it. I have never seen any advertisements from them which seems strange since there are two large tyre places in the main town which always seem very busy. I am sure it would have a lot of potential with a bit of effort put in. They don't even have a website!
That's a bit simplistic.It is a good tyre garage but they definitely don't make the most of it. I have never seen any advertisements from them which seems strange since there are two large tyre places in the main town which always seem very busy. I am sure it would have a lot of potential with a bit of effort put in. They don't even have a website!
Here's a list ( not full) of the costs you'll be working with, can't estimate them:
Rent
Business rates (though it oddly says there are none)
Service charge
Staff wages
Electric
Gas
Water
Insurance public liability
Insurance contents fire and theft
Insurance building
Cleaning materials
Licences
Phone
Internet
Maintenance
Repairs
Capital improvements
Sundry items.
I'm not looking to put you off as it may prove to be a good site to trade from but that's what you are buying essentially, the right to trade from that site using the existing fixtures and fittings.
Now, imagine you owed £70,000 and the bailiffs turned up. Would they be able to remove goods/property to cover that debt? If the answers no and it probably is then there's your answer to the real value.
As it happens I'm not far from there either if you're serious about looking into it PM me.
Edited by Thankyou4calling on Sunday 10th January 18:47
dmsims said:
Why is the turnover so low ?
From what I gather from being there a few times, no advertising and whilst the mechanic there is excellent the guy behind the till seems grumpy and doesn't do a lot. I only ever deal with the mechanic. I don't know where they are from but I think they might be brothers.It is always quiet in there and every time I have been they seem to be fiddling with the bangers laid up in the car park (instead of making money?)
Its a shame really as its a great space and I think has a lot of potential, but is obviously not working well as they are
Chrisgr31 said:
Does a tyre place need a website? Well other than merely as an online presence? If you have a website how do you keep it updated with latest prices etc? My suspicion is that most people will phone around to see what deals they can get.
Where do you think they get the garage phone numbers from? The Phone Book? Its not untypical of this type of business not to have a website but you only have to look at the largest players in the market and the amount they spend on online marketing. They don't do it because it looks nice to do, they do it because it generates customers and ultimately revenue.Chrisgr31 said:
Is it the business that is available or is it the property? Its slightly odd that the business name is cut out the advert, after all if you are local, and you are likely to be if interested in this business, you'll know it anyway as the OP obviously does.
If taking on any business like this check what the lease terms are, and check that the lease is protected under the Landlord and Tenant Act 1954. You dont want to build up the business, get to the end of the lease term and find that the landlord is marketing the property and has you over a barrel on rent and other terms.
AgreeIf taking on any business like this check what the lease terms are, and check that the lease is protected under the Landlord and Tenant Act 1954. You dont want to build up the business, get to the end of the lease term and find that the landlord is marketing the property and has you over a barrel on rent and other terms.
The ad does not mention its the busness for sale or the good will etc. Perhaps the business is just moving to a better location! ?!!!
Likely to be the 'business' as in the name/goodwill etc but sensible to get confirmed.
I bought a petrol station 18 yrs ago, three months after taking over the baliffs arrived to take away the shelves, fridges, tills and lots more. The previous owner had leased them and not told me, and my solicitor said it was not his job to check this. Got very messy for a few weeks , I survived and learnt my lesson, beware when buying a business as another poster said earlier you might pay a lot for nothing of value.
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