Buying a Retail Business or Store: Everything You Need to Know

Looking for a business to buy? It’s important you make an informed decision and consider everything that’ll be required of you to open and operate it. Buying a retail business might seem simple and straightforward, but there are important considerations to make before you go through with it. Let’s look at how you go about buying a retail store, the challenges you’ll face as a retail store owner, and a potential alternative in opening a ProSource Wholesale location.

Steps to Buying a Store

1. Create a business plan. You should create a comprehensive business plan that includes goals, milestones and how you plan to reach them, your target market, an analysis of your direct competition, and financial projections.
2. Look for businesses for sale in your market. Make sure to investigate the history, customer reviews, ease of location access for customers, and any potential problems of any business you consider buying.
3. Calculate your startup costs. You should research the costs of buying a retail business in whichever industries you’re considering. These costs may include your initial inventory, the purchase price, rent/lease of a location, renovation costs, initial marketing costs, hiring and staff wages, and more.
4. Secure funding. This may involve using personal savings, taking out a loan, or finding investors.
5. Register your business. Make sure the business is registered with all the necessary agencies, such as local, state, and federal ones. You should also obtain all necessary licenses and permits to operate.
6. Market the business. Create a marketing strategy to help get the word out about your business and attract customer attention. This may involve renaming/rebranding the business.
7. Grand opening. If you rename, rebrand, or renovate your new business, hold a grand re-opening to announce the availability of your business to your local market.

Retail Business Challenges

To pursue success in retail, buying a retail business is just the start. There are a lot of moving parts to owning a retail business, and you should be prepared to address those challenges.

• Business hours: Be prepared to keep regular business hours, including weekends and holidays, to be accessible to customers.
• Managing employees: Avoid stretching yourself too thin by running the business solo; develop skills to manage employees effectively.
• Employee turnover: The U.S. Bureau of Labor Statistics reported in May 2024 that the average turnover rate in retail in the U.S. is approximately 60%. Be prepared to regularly hire and train new employees.
• Market trends: Keep a close eye on changing market trends affecting your products.
• Store maintenance: Ensure store maintenance and organization to enhance customer convenience and their shopping experience.
• Location costs: Include location costs like rent, leases, utility fees, and property taxes in your budget and pricing strategy.
• Competitive pricing: Balance keeping your prices competitive with covering your expenses.

Wholesale Franchising: An Alternative to Retail

Retail can be profitable but demanding. However, there’s an alternative that may suit you better: buying and operating a franchise like ProSource Wholesale.

ProSource Wholesale is a franchise that focuses on providing flooring, kitchen, and bath products to professional contractors, without having to perform installations. By focusing on this market, ProSource franchisees operate in the home improvement industry, which market analyst company IBISWorld reported in November 2023 has a market value of $258 billion.

Unlike most retail stores, ProSource Wholesale uses a membership-based business model. This lets you operate when it’s convenient for your trade pro customers and yourself, instead of having to keep to traditional business hours. ProSource provides you with expert advice and guidance, ongoing training and support, market research, technology and IT services, and site selection assistance. Finally, ProSource provides you with a proven business model and a recognized brand, helping you build a loyal, long-term customer base.

Build a Booming Business with ProSource

We’re eager to tell you more about how joining our franchise can help you find success in the home improvement industry. Submit a franchise form today to learn more about your franchising opportunity with ProSource Wholesale.