Take over an existing tobacconist

The shop's existing regular customers, plus passing trade from its location.

Retail margin on tobacco, cigars, accessories and any extra lines. You pay more upfront but may have trading history to judge the numbers. Treat any turnover figure as a claim to verify against several years of tax returns and BAS statements, because a large share of tobacco sales goes to taxes and the margin you keep is much smaller than turnover.

• Reading business accounts
• Retail and customer service
• Negotiating a lease and purchase price
• Stock and cash control

• Licence rules on changes of ownership, which differ by state and territory, so check before you commit
• Whether the reported turnover is realistic given tax costs and competition from illegal tobacco
• Lease length, rent reviews and location restrictions that may affect the shop
• Past compliance issues with the premises, so ask for checks as part of due diligence
• Security, theft risk and insurance (public liability, contents, business interruption)
• Rules on vapes and nicotine products, which are tightly restricted, so check what the shop may legally stock

Estimates suggest costs are typically around $80,000 to $300,000, depending on the shop, its stock, fit-out, lease and the purchase price you negotiate. Reading the business accounts carefully is an important step.

Monthly revenue is typically estimated at around $30,000 to $100,000, depending on the shop's location and regular customers. Check whether reported turnover is realistic given tax costs and competition from illegal tobacco.

Check licence rules on changes of ownership, which differ by state and territory. Also check lease length and rent reviews, past compliance issues with the premises, security and insurance, and what the shop may legally stock, including vapes and nicotine products.