Take Over an Existing General Store

The store's existing local customers: residents, seniors, workers, and seasonal or passing visitors.

Everyday sales at a markup on stock, with revenue from day one. You can add products, services or longer hours to grow sales, and trim waste or costs to improve margins.

• Reading financial statements
• Negotiating a purchase and lease
• Staff management
• Inventory control and customer service

• Check whether licences and permits (food, tobacco, alcohol, lottery) transfer to a new owner or must be reapplied for, with your provincial regulator and public health unit
• Check the lease terms, remaining length and renewal rights before you buy
• Verify the sales figures and the value of stock independently, as the seller's numbers may be optimistic
• Asset sale versus share sale has different tax and liability effects, so get professional advice
• Commercial general liability and property insurance, plus WCB/WSIB coverage for staff (rules vary by province)
• A large purchase brings loan repayments, so plan for slow months and winter dips
• Existing staff and customers may be loyal to the former owner, so plan a gentle handover

Estimates suggest startup costs typically around $100,000 to $400,000, depending on the store, its stock, fixtures and the price agreed with the seller. A large purchase brings loan repayments, so plan for slow months and winter dips.

Monthly revenue is typically estimated around $40,000 to $150,000, depending on the store's existing customers, location and range. Verify the seller's sales figures and stock value independently, as they may be optimistic. The starting estimate is at least 50 hours a week.

Check whether food, tobacco, alcohol and lottery licences and permits transfer to a new owner or must be reapplied for, with your provincial regulator and public health unit. Also check lease terms and renewal rights, and get professional advice on asset versus share sales.