Buying my LFS

[Graham'sReefs]

I have been working/managing my lfs for about 2 years now as the only employee besides the owner and now thinking about buying it from him. Any advice from business owners past or present about thing to think about/look out for when getting into the industry would be awesome.

 

[Humblefish]

Ask to see financials for the past few years! Most LFS are unprofitable nowadays, unless they have a strong maintenance side of the business.

 

[jsvand5]

Ask to see financials for the past few years! Most LFS are unprofitable nowadays, unless they have a strong maintenance side of the business.

Definitely.
Make sure it’s not for sale because it’s a money pit.

 

[mike550]

Wow that sounds very exciting! Congrats! Ive worked with a number of folks who have bought and sold businesses and here are a few thoughts. The good news is that since you’ve been working there you probably have a sense of how profitable the store is and what you might want to do to enhance profitability. My sense is that agreeing on a purchase price will be the hardest thing. It easy to value assets, liabilities, and such but the owner will say there is good will in the company and the brand has value. Once you have the purchase price think about how you’ll pay for it and how long you might want the owner to stick around to help transition the business..maybe even tie the sale price to him helping to grow the business while he’s there. Finally, lock him up so he can’t start a new LFS across the street. Guessing a one year lockup and no new store within 25(?) mile radius or something like that. Hope this is helpful

 

[Graham'sReefs]

Thanks all! Very helpful. Me and the owner are very close sense I am the only employee( probably should have put that originally) we do alright being the only store in the area but like most stores nowadays not the most profitable, but I see room for improvement.

 

[The Aquatic Arsenal]

Wow, what an amazing opportunity!!! There is always room for improvement. You may want to think about a way to aquaculture corals if you can. I believe that is the future of the hobby, and there aren't LFS's/vendors focusing on it. I wish you the best of luck!

 

[willieboy240]

I’m a small business owner. It’s a life style. You take it home with you , you live it. Small businesses will chew you up and spit you out. But at the end of the day. Your the shot caller. Your destiny is in your hands by your own decisions. You have to be a certain type of person to be a small business owner. If you are the kind of person that just goes home after work and does your own personal stuff. Then it’s not for you.