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Opening Record Store

Looking for advice from my fellow audiogoners...I have the potential to move into a store front that is already being operated as a record store (lps only) and become the new shop proprieter/owner. The owner has offered me the space (rediculously cheap rent) in a good area of town. He has had his store for about 5 years now and has a steady customer base. He will be taking all of his inventory and record storage bins that were in the store.He has a web site set up already and signs out front indicating the name of the shop...I plan on rebranding the shop with name change and interior upgrades. It is not a large space maybe 800-1000 square feet. I have a rather large inventory of my own so my up front investment of vinyl would be minimal. The owner wants me to buy him out..basically give cash in return for his customer base and the potential to get my hands on pretty good collections. I am trying to come up with a fair valuation of something like this and I am looking for advice..What do you think something like this is worth? Thank you in advance.
fromunda
millercarbon's avatar
millercarbon
12,531 posts
 
Northern California Bay Area. 

California???! No one in their right mind is opening a business in California! Democrats have so thoroughly screwed California the people trying to flee can't, there aren't enough rental trucks to move them all out! Hong Kong I can understand, its far enough away and Americans are such global zeroes they don't even know the country has been in a state of virtual siege for going on a year now. But California, surely everyone knows the state is second only to Illinois, or maybe NY in corruption, taxes, crappy schools, nanny state regulations, and disrespect for property rights and the rule of law. All of which- guess what?- are pre-requisites for a successful growing business economy.

You would have to be mental to open a business in California. Mental, or democrat. But I repeat myself.
birdfan's avatar
birdfan
175 posts
 
Oh Millercarbon.     Your thumbnail pic explains you...., YOU'RE A GENIUS!!!!

.. and probably probably a really stable one... 

but to the OP , $10k will buy some great speakers, think used Wilsons!! 
au_lait
352 posts
 
Money pit.
au_lait
352 posts
 
Which record store in the Bay Area? I’ll tell if store is worth it hahaha. But no, just the fact that you’ll have to deal with buying collections and/or b2b accounts with distributors is reason enough to not do it. Vinyl is in the tank right now and business is only online.
builder3
763 posts
 
Ask to see his tax records and books. Hire someone that knows what they're looking at. That will give you an idea of the worth of the business. If he balks at that, walk away.
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