Monday, July 11, 2011

Should i lease a convenience store?

I have had a floral and gift shop in a small town for 3 months. It has not done that well and i will be closing it at the end of the month. It is not just me but all the merchants in the town are getting worried because they say they have never seen it this way at this time of yr. My husband wanted to lease a cigarette and convenience type store before i opened this one but at the time it was too much money. Now the lease has come down considerably and it was a thriving store when the owners had it open. They are old and decided to retire.They had it leased to some other couple and they in turn leased it to someone else who they say was on drugs and ruined a lot of things in the store and then stole equipment and left. It has been closed again since about 3 months ago. What equipment that was not stolen is still there. It has a deli which is fully equipped with seating. It has gas pumps and it's main seller was cigarettes. My husband wants me to open it and do the deli and cigarettes and stock the store as a convenience store is. It would take about $25,000 to do this and we would have to get a loan for part of this. I have always worked in these type of businesses and don't mind the work but making flowers is my passion. There are 2 extra rooms that were used as a small apt. that i could run a flower shop from also. I just don't know what to do. The store is on the main interstate with a lot of tourist traffic. It has been open and operating since 1979 until these last people had it. The owners made a good living from it. I just worry about the economy because gas is so expensive and so are cigaretes which will be the mainstay. Although i know people have to have gas and lots of people smoke and are not going to quit. I just can't stand to think i mightt fail again in another store. The lease on this place is only $500 which is cheap for a store like this but then we would have a payment for the loan we would get to help stock the store and i will have to put my rental home up for collateral but the rent i receive from it should pay the payment. My banker says he thinks it will do good because there is no other place from about 5 miles from nearest town with convenince store til the next down which is about 18 miles form this store. Really puzzled on this one.

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