Should I buy a bike shop?

[Vapin' Joe]

One question to ask yourself is how long do you think the current bike boom will last? It is very much a fashion thing and will probably collapse over a short period, leaving you with a vastly reduced customer base and a lot of investment to recoup. Self employment can be rewarding, but it is precarious. I left a safe council job thirty years ago to work for myself, I like being my own boss but the guy I started on the council with same day as me is still there and looking to retire in a year or two with a good pension and a decent lump sum payoff. He is at the moment recovering from a hip replacement on full pay and staying in a rehabilitation centre in Devon owned and paid for by his union. A major health problem would cause me a big financial headache so you will be gambling with your health too.

 

[Drago]

I recall reading somewhere that the typical self employed person earned a third less than the average wage slave, yet worked a third longer each week.

 

[Kajjal]

If you have no retail experience, a shop may come as a shock to you. It is unbelievable how rude and difficult and ignorant average Joe can be. They get particularly nasty when faced with a grudge spend such as a repair bill. I'll never forget being abused by a customer who accused us of rushing his headset bearing by washing his bike before working on it. I can also not forget the customer who insisted that we sold him a bike with a rubbish derailer which kept on breaking off, once even ripping out of the frame. The problem was that he had no idea how to shift and through brute force, managed to break it off. The derailer wasn't strong enough, he claimed. There's no use trying logic and reason with these people. They want to fob off the expense to someone else at all cost.
Further, running a repair business requires a lot of experience. It is not a job for a newbie. If you intend hiring experience mechanics, then yes, give it a go. If you are not an experienced mechanic and want to wing it, rather don't.
Having said that, some of the best people in the world came into our shop and I'll also never forget them. But the ones I had to show the door really spoils things. Retail is hard. Very hard.

Very good post and insight into bike shops from behind the counter.

 

[steve50]

Why is the business up for sale?
What is their current turnover per annum?
More and more people are turning to the internet to buy bikes / parts / clothing etc
Can you afford to gamble your retirement funds on an uncertain business / future?

 

[biggs682]

its a question a relation of mine asked himself earlier this year , when he got the accounts for the last 2 years his accountant told him not to bother as hardly any profit being made by current owner and this was a Giant dealer

 

[screenman]

To quote Steve50 " What is their current turnover per annum?"

Turnover for vanity and profit is for sanity, they are often a very long way apart and a high turnover can still ean huge losses.

I have spent the last 15 years helping people set up businesses, the one's that succeed are the one's with sales and marketing skills.

 

[Dayvo]

Sounds like a great idea, but possibly too much of a gamble with more to lose than you would gain.

Buy a cake shop instead.

 

[screenman]

28 years ago after selling a business with high overheads I decided the next one I wanted was one with low overheads. In reality what I earn on the first morning of each week pays for my business fixed costs for the following week, nice and stress free. Whereas when I had the car sites I had to often work 25 days of the month just to pay costs, more money certainly but a lot more stress.

 

[Booyaa]

I say go for it. Good luck.

 

[PaulB]

Tons of useful info here. Thanks for all who've contributed.

Essentially, after realising I am genetically structured to be unable to accept any form of management over me, I've always wanted to be my own boss so when I saw this yesterday, I discovered the owners are retiring and so selling the shop, I became interested. Despite all the warnings on here, for which I thank you all, I am more motivated to make to jump that not and I will know more about things tomorrow as I've got an appointment to view the business with the agents. I'll pass on any info I gather.

 

[screenman]

I say go for it. Good luck.

On what experience do you base that tip?

 

[screenman]

Tons of useful info here. Thanks for all who've contributed.

Essentially, after realising I am genetically structured to be unable to accept any form of management over me, I've always wanted to be my own boss so when I saw this yesterday, I discovered the owners are retiring and so selling the shop, I became interested. Despite all the warnings on here, for which I thank you all, I am more motivated to make to jump that not and I will know more about things tomorrow as I've got an appointment to view the business with the agents. I'll pass on any info I gather.

Fine, you will though not have one boss but hopefully many, us business owners call them customers though.

 

[subaqua]

Fine, you will though not have one boss but hopefully many, us business owners call them customers though.

and those of us who work on social housing projects call them tenants !

 

[sight-pin]

It's probably been said here already but you'll at least need to see the books and have them checked if you can.

 

[Vapin' Joe]

Tons of useful info here. Thanks for all who've contributed.

Essentially, after realising I am genetically structured to be unable to accept any form of management over me, I've always wanted to be my own boss so when I saw this yesterday, I discovered the owners are retiring and so selling the shop, I became interested. Despite all the warnings on here, for which I thank you all, I am more motivated to make to jump that not and I will know more about things tomorrow as I've got an appointment to view the business with the agents. I'll pass on any info I gather.

Good luck if you do go ahead.