I want to buy a fabric store.

[Pudge99]

OK with all that is going on in my life ya'll must think I am nuts even thinking about this.
There is a fabric store for sale in a small town in Nebraska (7000 people I think). The store has been there since the '70s and according to those I have talked to people drive from outlying cities to this fabric store. I have been speaking with the man who owns it. It was his wife's shop really and she recently passed and their daughter is running it but from what I understand it is not her life goal to run this shop. The town is roughly 40 miles from where my hubby is trying to find a job. A little farther than he wanted to live from work but I think I can work on him.
I have to figure out where the money would come from. If I can work that out I need to go take a look at the shop and speak with the owner in person.
I can't help but wonder if this would be my silver lining or just another dark cloud in the thing I call my life.

[lendube]

Oh, Gina! I think as long as you do your homework very carefully, you've got the spirit and intelligence to make it work. That's my impression of you, a hard working, sensible person. Sounds like it might be a good fit for you. Good luck and please keep us posted.

[pucktricks]

I'll agree with Lennie, do A LOT of due diligence, and then do some more. Here's my understanding of what to do when buying a business: look at their profit margin, look at expenses, find out what they're doing for advertising, and I'm sure there are a million other things to look into. But, if it goes through, WOW, what a blessing. I know the lady who opened the Bernina store by me, did it with a lot of her retirement money, and is living her dream. I think this could be a similar thing for you, but I wouldn't suggest the using the retirement money part.

But, that seems like such a cool opportunity!

Ticia

[vickki]

I would definately want to see their profit and expenses for a year....Their total inventories,and how old it is.Approx.how many people are sewers in the town....Even if you could go to the store as a shopper yourself..park outside and count how many people goes in and comes out with a bag in probably a couple of hours,even mingle with the customers and find out what kind of service they give....Woo what an opportunity for you......

[temom]

I'd say you have gotten some very good advice. And I'd look at the books for the last several years.
I would also say that you should only do it if you and hubby were in 100% agreement.

[Here_Fishey]

One other thing, and this applies to starting any business. Make sure that you will be able to support this store for THREE YEARS. Do not expect to make a profit (or even any sort of living wage) before that point, and do expect to keep putting money into it for those three years. Also be prepared to put in a lot of hours doing the not so fun stuff of bookkeeping and paying bills.

I don't want to rain on your parade. I do think that owning a fabric store would be a very fun business to own. I just want you to look at this realistically. You can make it work if you are prepared to put in the hours and the money.

Good Luck.

[Upholsteress]

Gina,

Before you try to secure money.. go ahead and talk to the daughter. Spend some time with her and in the shop. The advice you have been given so far is excellent... you HAVE to know the biz records inside out and understand what the store has done in the past couple years or so and what you're likely to face in the coming months.

The little town south of us has a fabric store that does VERY WELL. He focuses on quilters. BUT! he also sells all the fancy sewing and embroidery machines... and they offer classes and a few years ago - opened another store in another town and they compete very well against Jo-Ann Fabrics. There is another shop about 10 miles further south than that... he too does well and he sells and gives classes on the embroidery and quilting hobbies.

My point.. I think you would need to sell more than fabric to make a living. The good news is.. as a retailer -- you are free to sell anything that is legal.

Look up the demographics of your area ... project a 50 mile radius.. and research the median income of the area. See if your store and a list of base clientele.. you can find all the info you need on the internet I bet. See how many other stores sell fabric ... don't count on what people say... you can't survive with only 15-20 enthusiastic quilters... you need to bring LOTs of folks in and KEEP them coming in regularly.

A good outline of writing a biz plan would help you seek the detailed info you need to make a sound biz decision.

Hope this gives you some ideas of where to start.

I wish you the best!

[Pudge99]

We would not be counting on this business as our main income. Hubby will have a real job with real dependable income. I should add that this is not only a fabric store, from my understanding they have a contract with a drycleaner and a shoe repairer and are the place in town to rent your tux. Really sounds like the people who own it saw the needs of their city and filled them.
I plan to do lots of research before commiting to this. The first bit of research is into grants and loans as I don't have this kind of moolah just sitting around. Reality is that we probably won't be able to afford it, but I won't know unless I try.

[Pudge99]

Cheryl,

You make sound points. I was hoping you would came across this post and give me some pointers. I have found some info about the store online, estimated sales for the year and how long they have been in business, approximate employees. Employees could also be a problem as they come with the store and have worked there for years. They could be really helpful or make my life a living hell if they were dreaming of owning the store one day.
I am trying to work out a trip up there to check out the store. I am hoping to make it a househunting trip also because wether or not I buy this shop we will be moving to that area.

[pucktricks]

So, out of curiosity, why'd ya'll decide on that area?

Ticia

I'll be in your area next week!