Article contributed by Henry Galasso, East Coast Stores
Has the thought of buying or selling a business crossed your mind? If so, you probably have some questions. Let’s start with a familiar, yet old saying that refers to both the purchase and sale of a business; “Location, Location, Location.” Regardless of the truth in that phrase, a lot more is involved in the process. The most important aspect of buying or selling any business is the answer to the following question: “What motivates consumers to choose to patron your establishment?” The answer is simple — East Coast Stores!
East Coast Stores is the key motivator in bringing top notch consumers to your place of business. Whether it be those that are looking to start a new venture and purchase your establishment, or you are the one ready to hand the reins of your business over to a qualified buyer, the answer is the same!
Circling back to the process of buying or selling a business and how to truly understand what brings customers into your business, we break this process down into the sections that essentially make up East Coast Stores LLC.
When buying or selling a Food Retail Business there are six (6) necessary steps to follow:
- Location of the Business
- What products/services are offered?
- What marketing is in place already?
- Growing/Growth of Food Retail Business
- Value of the Business
- Next Steps
At East Coast Stores your broker works side by side with you through each of them ensuring your experience is positively seamless and smooth.
Remember that location means far more than just the physical address of the business. Location includes knowledge about the current lease in place and whether it is transferable/assignable, long term, renewable, etc. It also includes knowing if your business location has anchor tenants that are long term, short term or temporary. Remember that the traffic these anchor tenants produce can affect the overall value of your business as well.
Besides the logistics of location, believe it or not, roadwork, construction, and utility work affect the location discussions when buying or selling businesses. Keep in mind, most cities and towns undergo roadway construction once every ten years or so. You may want to do some research in your city hall to see when last work was done in your desired area.
The most important advice for step one when discussing the topic of location is to look past the surface and think of any situation that directly impacts your purchase or sale goals and research the thoroughly.
What Products/Services are offered?
Make sure the product or service you are interested in buying or selling is one you have continued interest in providing to your customers. Decide whether you want a business that is product centered and is driven by the products/services it offers or if you want a business that can be run Absentee Owner and handled by hired personnel.
Either choice you make, remember to identify the types of products or services the consumers are continuously wanting and make them readily available.
What Marketing is in place?
Advertising is, for some retail businesses, what brings the consumers to your door. When deciding whether to buy or sell your food retail business, you must decide how you want to get it out there/find it. This being said, it is imperative that you have a clear audience goal in mind. For instance, if you are buying a food retail business, you are the audience member seeking the business and you now look for marketing that draws you in. Something that is eye catching and won’t let you forget it.
On the reverse side, if you are selling your business, you want to make sure you are gearing your images, buzz-words, catch phrases, and anecdotes to your prime audience; the buyers you want to buy your company! Hundreds of dollars every day are spent on advertising and marketing strategies for all kinds of industries so make sure if marketing is what brings those customers in and what gets those buyers to the door, you are doing it consistently!
Growing/Growth of a Food Retail Business:
Keeping in mind that whether you are buying or selling a Food Retail Business, the concept of growth must remain at the forefront of your mind. When we talk of growth we mean expansion of a business.
In terms of purchasing a business, one might look to find a franchise that already has multiple locations and have growth already within the business. Others might look for an establishment to have the potential to expand and become a multiple location business. Regardless of which side of the fence you are on, growth is the equivalence of success in this case.
When we discuss selling of a business and the concept of growth we talk about the prior years of the business and how they have grown from the beginning to present. This conversation gives prospective buyers a glimpse into what potential their future might be like within different industries.
Value of a Food Retail Business:
There is no “golden set of rules” to follow when discussing the value of a business; rather, it is simply how much the business is making. This is the one component that needs to be considered when determining asking price of a business.
Once you have laid out all your options and have decided to buy or sell a business, the next step should be to contact Henry Galasso and his team of brokers at East Coast Stores LLC.
Henry Galasso CBI, owner and operator of East Coast Stores LLC, is among the top Business Brokerage firms servicing New York, New Jersey, Connecticut, and Long Island. Starting his company from the ground up in 2001, it is no surprise he recorded top sales for the 2015-2016 and 2016-2017 years making East Coast Stores LLC your one stop intermediary firm with the power to make the experience of getting the buyer and seller to conform with transactions relating to business and commercial property sales. Henry, along with his prestigious team of brokers, understands the importance involved in selling a business you have spent years building, or the excitement that comes from buying a new business venture. Either way, we are here to help make this important transaction very smooth and seamless! The ability of Henry and his team to analyze a business and determine profitability using a business’s goodwill, leasehold values, and the terms and asset conditions of the business/property making this the team to work with. From Henry’s past experience involving the growing of food retail and online retail stores, he has had continued success in brokering within the same industries. When you become a part of the East Coast Stores family as either a buyer or seller, you are guaranteed to get impeccable attention to detail and the sense of accomplishment as you work side by side with your broker. We will help discover what fundamentals set your business apart from others as well as keep open and honest communication. You will have access to our database of listings and/or clients depending on your individual needs. Most importantly, our sensitivity to time management will definitely make East Coast Stores your priority choice!”