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We recently added a new store to our line of stores and that is the very reason I am late producing this podcast. But since it is all still very fresh in my mind, I wanted to share some issues most of you encounter when doing the final closing on a gas station business.
I came up with a checklist so anyone can just write them down and make sure to check each and every item before signing off on a deal. You can apply to this to most any retail business purchase and save money.
Assuming you found the business that you like and negotiated a price and now setting up a closing date for you to take over. the day of the closing typically an inventory management company comes in that you hired and counts all the retail inventory and gives you the report and you pay the seller the cost of that inventory and you are in business.
There are many moving parts to a business closing process that you need to be aware of. If done wrong they can cost you thousands of dollars but following these 8 step check-list can save you thousands , so please do pay attention.
8 Closing Checklist
- Check the merchandise pricing to make sure they are not out or range
- Negotiate the retail to cost percentage of the inventory you will be paying to the seller
- Meet with the employees and explain to them what is taking place
- Plan with seller for transfer of all regulatory licenses
- Transferring all utilities under your company
- Notifying all vendors about the change
- Identifying all unsalable merchandise at the closing day
- Follow proper Inventory counting process
The book I mention in this episode is The School of Greatness: A Real-World Guide to Living Bigger, Loving Deeper, and Leaving a Legacy by Lewis Howes
Business 911
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