Buying a newsagent (any owners)

[Wilmslowboy]

A good friend of mine is returning to the UK, after 20 years of global corporate roles, a bad divorce (and redundancy) has decimated him financially and his willingness to get back on the corporate ladder.

He is looking to buy a small business that he can run for the next 15 years and this caught his eye, looks like a good deal (perhaps too good). 26% of net profit seems very high for retail, I guess it excludes the owner's 'wages'.

He appreciates it will be long hours etc however wondered if there are any other things to watch out for ?

News, cigarettes and sweets are all declining markets ?

cheers

[Wilmslowboy]

Thanks for all the replies.

Will suggest he digs a little deeper.

[Wilmslowboy]

DSLiverpool said:

I know an Italian deli in St Albans that has them queuing down the road (2m gap) but seriously it does amazingly well.

There are easier ways to make money, what’s he into, what excites him? I bet we can think of something for him.

His career has been HR and projects for the largest global blue chips, but really wants to leave all that behind.

Very hard-working, and smart but now wants something he can just pour his efforts into, without worrying about all the politics of the corporate world, or the undue stress of a start-up and high risk.

Not interested in becoming rich, but has lost pretty much everything, so needs to buy a job for the next decade and a half that can allow him to build up a decent nest egg for retirement (to supplement his ok pension he will get).

He is happy to explore most things.

[Wilmslowboy]

Redarress said:

If he is forward facing so able sell his HR skills to companies. He is more likely to make more money at this rather than any retail. I have made the assumption that he has skills to offer businesses.
He would be able to work from home so no premises outlay

He has done chargeable project work into blue chips (through a consultancy), as well as huge amounts as an employee, but this no longer appeals, he wants a much more simple life.

His plan B would be to become a day rate 'contractor' (people change, projects etc) which he could easily do, turning over £150k+ a year (less expenses, Corp and PAYE tax). But this would largely keep him in the corporate world.

His heart is set on a beautiful laundrette, convenience store, online retailer.....

Given more time, he would probably be a good candidate for a dominos type franchise.

[Wilmslowboy]

hotchy said:

I'll give him a year. ....

Great - straight talking insight - thanks

I'm going to forward it onto him.

[Wilmslowboy]

Freshprince said:

I speak from experience having grew

https://www.betterretailing.com/store-profiles/

Brillant insight - thanks.

[Wilmslowboy]

Contacted the agent three times (two calls, left messages and email), asking for additional information - no reply.

Either the seller has got cold feet or the agent is a bit pants.


My friend has upped his budget to £250k, (higher if it can be funded with some debt), looking for a well-establihsed business that can be run by someone with management and commercial skills (e.g no technical/ engineering background) - location agonist.

Any alternate places to look beyond Daltons ??

[Wilmslowboy]

Andeh1 said:

Surely a bed and breakie would be a better shout?

Probably need to get to a mini-hotel before it makes >£100k a year.

[Wilmslowboy]

TCS1 said:

Christie & Co usually have a range of stores from the owner run freehold type up to large format, leasehold stores run by staff.

Thanks, taking a look now.

[Wilmslowboy]

Glasgowrob said:

Does said friend want to buy a taxi company ?

Thanks

A bit niche, and also I thought it was a bit hard for a 'town outsider' to make a success of one.

[Wilmslowboy]

Upped his budget to over £250k, a few interesting online businesses now being explored, could be a model to buy a 2 or 3 subscale online companies and run them collectively.


Still chasing up the broker for the original conveiance store.