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Question on Buisness

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I have the opportunity to purchase a archery shop that has been established since 1976. Owner owns the building, and carries Hoyt, PSE, AR and NAAG. Does good buisness, but last year was a slow year, due to slow year and not promoting the shop. I know most clients that come through and have comitment of 1 shooter and 1 bow tech to help with work and scheduling of hours. Building is located close to a large Outdoor Retail Store chain that sends several customers over our way that they can't take care of. Price is $15,000 plus inventory cost. Is this a good way to start or?

Thought this would be the best section of the site to post this question.

Thanks for any advise.
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· Member # 75
3,499 Posts
If the price is 15K plus inventory, just how much good will does the cash buy in an archery shop? Guranteed customers?

You should communicate with all of his suppliers and be sure of continued relationship.

Check his taxes for last year. Do not rely on an accounting report. Find out how much he paid taxes on last year and previous years.

If the store location is good and you want to stay there, be absolutely certain that there are no pending redevelopment plans, zoning changes, adverse road plans, etc that would impact the location that the seller may know and not tell you.

Check to make sure that the property owner has no tax problems, occupancy permit problems, pending sunset provisions to variances or conditional zoning.

During your due dilligence time period, attempt to purchase title insurance for the property and the business use. This is important because the title company will also search for skeletons.

Just how much slow moving inventory does he expect to sell to you? Slow moving inventory is worth nothing to you. Remember that you can buy quick moving inventory yourself from any distributor.

Be sure that equipment and tools are not old and of limited usefullness.

What is to keep this guy from starting up a new archery shop in a location he likes better with your 15K and getting both Hoyt and Mathews?

Unless and until you know the answer to all these questions and observations, you are not adequately prepared to buy the business.

· Registered
674 Posts
Discussion Starter · #3 ·
I have contacted most of our reps and questioned them about continued service, they have all stated that nothing would change since they are all familiar with myself.

We went over the tax reports for last year, talked with the same agent in which he uses, agent assured me everything would stay as is as far as policies and pricing. Only have about 5 bows not of current year, bow shop has been run very efficient. Most equipment is under 3 years old, 1 press kept around for crossbows, is over 5. The owner is experiencing severe health problems and having to cut his load severly, he is a pastor for a church in the area.

Current in shop bow inventory is 9 2003 Hoyts, 5 2003 PSE, 2003 Reflex's, 5 2002 PSE's, 10 AR's. Currently have 11 Hoyts on order. Arrows we usually keep about 30 dozen fletched, with around 5 of each set back for MTO.

Thanks this is really helping me, any other suggestion or questions I need to ask.

· Registered
23 Posts
mobowhunter, if I'm guessing right, I've been in that store many times. Looks to me like that is a great location for any business, plenty of traffic and easy to get to. Hope you get it and do good there. We shoot 3D all over this area, so we are always looking at new bows, arrows, releases, etc., and will probably catch you in there one of these days. Good luck..........Nockem

· Registered User
74,554 Posts
Always offer lower

Remember it doesnt hurt. Usally takes a while to establish a reputation and sounds like this guy has done that. Economy is not the best right now. Although I just worked sale here in Okla this weekend at my dealers shop and you would be hard pressed to see economy was slow. Hunters are going to buy. Right now is the prime time of year. Next two months are the best. Good Luck, long hours and full time committment.
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