Owning any retail business in the current economic climate is a challenge. However it’s also a ‘golden’ opportunity.
What would you rather do? Purchase a retail business at the peak of the market (last peak was 2007) and pay the ‘peak’ price. Or obtain a bargain at the bottom of the market which can only move up?
Although I’ve included yet another article from "Gerry Harvey" – love him or hate him, he certainly knows the retailing trends in Australia (see article below).
Underperforming retailers are closing – often business owners have seen a decline in sales from 2008 to now – and they’re worn out, frustrated and tired.
A perfect time to make them a ‘fair’, yet realistic offer.
The challenge for you – if you decide to purchase a retail business right now- it to be able to maintain a positive profit figure in the current consumer market. Certainly paying too much for the business and stock won’t help.
However, if you have bought well, kept a very close eye on your stock levels and marketed your store using some of our low cost marketing strategies – then you’ve really got a lean and profitable store with good sales growth potential when consumers return to spending (which they will). Not only will you take advantage of the increase in cash-flow, but also capital growth too!