How Do You Buy A Used Bookstore?
Buying a used bookstore is slightly different from buying other retail outlets because the inventory comes from less traditional sources. Books are purchased at library sales, thrift stores and from individuals. Other than that, standard practices and indicators of a successful business are the same. Make sure that you’re qualified to operate this type of business or will have the resources to hire someone who is. Keep all of the following considerations in mind before you buy a used bookstore. Go over the store’s bookkeeping records carefully. Pay close attention to net profit and cost of goods sold. Make sure the overhead costs are reasonable for the store’s location. Rents and utilities are higher in some areas, so take that into consideration. Have the owner prepare a list of contracts you will have to honor with Web providers, cleaning services, vendors or advertising obligations like Yellow Pages. Find out if you’ll be able to break any of these contracts before you make an offer
