I want to buy a fabric store.

[MartySews2]

Gina, it takes about 5 years before you will begin to show a profit. Do you have the financial resources for running the business without a profit? Have you met with the state tax enforcement agency? You will need to know what tax forms are required for starting your business. Most sales tax forms are due quarterly. Find out if there are any delinquent taxes on the business (State Dept of Revenue). If so, run don't walk away. My DH is a Revenue agent and he is amazed at how many people buy businesses without knowing about the tax liens on the business. Delinquent sales taxes are the most common reason that businesses fail. Real estate agencies don't usually check this out as they only check for property liens. What type of customer base is there in your community? Is it enough to support the business until you can get the online sales going? Do you have a reliable shipping company for the business? How many employees will you need to operate the store? You will have to pay unemployment insurance plus provide health insurance for the employees plus FICA fees and Social Security. Just some things for you to think about.
Marty

[Pudge99]

Marty,

Generally that five years before you make a profit thing is associated with starting a business from scratch.
This business brings in enough income as it stands to pay for itself. This includes the taxes, replacement inventory, employees wages, and the loan payment. We do have money set aside to cover lean times just in case. There won't be enough money to pay me much of a wage, but since most of my money right now goes to fabric, I'll just pay myself in fabric until I get the online business up and running.
I have checked into all the other stuff you have mentioned and all looks good from where I stand. My biggest concern right now is having a building inspector check the place out and getting that inventory counted. Oh yeah and decide if this is REALLY what I want to do with the rest of my life.
I am signing myself up for some business courses that are offered through our school district, Accounting, Writing a Business Plan, and Starting an Online Business. The latter two are one day classes but the Accounting is an actual college course I believe. Wish me luck! Been a long time since I have sat in a classroom.

[MartySews2]

Gina, I'm rooting for you and hope I didn't give the impression that I wasn't. My DH just tells me about how people buy existing businesses with no clue as to the financial liability, tax liens, etc. Am glad that you got that worked out. Buying a business is a huge commitment of not only our resources but our time (especially family time) and energy. Know that many prayers are with you as you determine if this is your calling or not.
Marty

[temom]

Gina, are there any classes such as bookkeeping for small businesses? That would be much more helpful than a college accounting class. I'm a bookkeeperr by trade, and I haven't used a single thing that I learned in my one college accounting class. Also, if you use a software program such as quicken or quickbooks, you really don't need a college level class.

[DorothyL]

Marty, I work around a lot of abstract researchers and when property changes hands in New York they search for every type of judgment or lien possible (even unpaid credit cards) against both the seller and the buyer of a property. It might be different in other states though.
Dorothy

[Thisket]

Something that may have already been mentioned-, I think what is a part of the unknown is the person who ran the store. The person who passed. She may have been a big part of the success of the business. She probably knew her customers by name and what their needs were. She may have also been a bit more forgiving if someone could not pay right away and helped them out. Building the relationship with the community is a part of the success. I would suggest going to the quilters meetings and get to know the community and how you might fit in. If every person expects the same type of business arrangement that they had with the original owner, you may find that you can not maintain the store and their expectations. I am looking at doing something like this in the future. Not a fabric store, but a cottage service industry sewing totes and cases for things. I know I need to attend the area guilds and meetings to get to know those who will be my customer and find out who does not shop local and why. Good wishes to your adventure. I will keep an eye on your qwest, and take the advise you have been given to help me too.

[Jo Ann]

I have a suggestion for someone who would like to sell fabric, but doesn't want an actual brick and mortar store. Why not sell on ebay? Start small and work up. You can realize a profit in very little time. You can buy fabric as you have the money. I have an ebay store in which I sell fabric and things I sew. I started with only a few items and in just three months I was clearing over $1,400. a month! I love fabric and have many times thought of opening a store, but then when I realize working from home I can make just as much money as I would if I had a store. And this way I can work from home and I am not tie down to being somewhere at a certain time. There is just so many good things about selling on ebay.