Opening Record Store

@fromunda 

Sorry in advance if these items are old news to you, I’m just trying to help....

I think putting together a business plan would be time well spent. Working the details out will require you determining profit margins, expenses, and what your breakeven would be in order to make a profit and perpetuate the business. 
Couple of questions/ comments:

1. If you open a business can you capture the customer base without his location, etc? What are you really gaining? 
2. When you figure your profit model, use numbers that reflect an inventory you don’t already own. That should give you a more realistic idea of your cost of goods. 
3. A good, thorough, business plan template will walk you through items to consider. It will be time consuming but worthwhile work. If you struggle with the business plan and hate the process, business ownership may not be for you. 
4. A friend of mine sold many albums in flea markets, music stores, etc. He dealt with stealing, people took advantage of his good nature regarding quality, sometimes swapping their poor album into a sleeve and taking his 33. Video cameras slowed the shenanigans...

5. Ask to see the guy’s books. He should be able to show you balance sheets, statements of revenues and expenditures, and past tax returns.  This is generally required by someone purchasing a business to determine a fair price to pay. His books will also give you an idea of his expenses like utilities, advertising, insurance, salaries and wages if any, and some yet to be determined. 

To be a great deal it should capture your heart and your head. If the numbers don’t make a compelling case, consider waiting for an opportunity that does.

Best-

My advice is to carry out DUE DILIGENCE!

How many stock items are in the store? Will it attract enough turnover?

Could you put stock online or on Discogs?
🇦🇺

I don’t understand why you’d need to pay anything.
If you're changing the name, there will be no follow
through whether you pay him or not.
Does he own the building? If so then pay him rent.
If he doesn’t, cut a deal with the real owner of it.
Then you are looking at paying $10k for good will
and a customer list. If you can rent that location,
or one close by, his old customer base will find you
without you needing to spend $$ as he is no longer
in business in that area.

He is going to be your direct competitor. He is only leasing space he doesn't want or need. Reach out to the owners of the successful YouTube channel and record store spinmeroundstore or Noble Records another great YouTube / record store and seek their advice on what it takes. Have enough capital to pay 6 months rent, utilities and liability insurance with out any income. Wish you the best.

I am not a business person but have a good friend that is, and has sold businesses before.  She has told me there is a formula (there is probably more than one) based on the business's annual income, of which you pay a percentage as a purchase price of the business.  I understand that having a written business plan is a must and I would agree that it would be wise to seek professional assistance from someone who knows business.  Also, check out the term "blue sky" and how it applies to a business's clientele.  This in itself could be a vital consideration.

On the other hand, it is well-known that one of the greatest obstacles to making a dream come true, are the people in your life that tell you, "you can't do it."  Maybe with the right prep, accurate knowledge, and operating on reason rather than emotion, maybe you CAN  do it.  

Good luck!

MuiskHEAD