10997 started this topic @ 03:07 on 28/09/2003
HI FOLKS,
ADVICE GRATEFULLY ACCEPTED. I HAVE LOOKED AT A POST OFFICE/NEWSAGENTS I WOULD LIKE TO BUY TODAY. IT HAS TWO BEDROOMED ACCOM AND A TURNOVER OF 165000 PER ANNUM ON TOP OF THIS A P/O SALARY OF 28,000 PER YEAR, I WOULD LIKE TO BUY THIS BECAUSE I COULD HOUSE MY SONS ON SITE AND ALSO EMPLOY ONE OF THEM. I WOULD BECOME POST MISTRESS I NEED A CHANGE IN DIRECTION. I FEEL THERE IS SOME ROOM FOR IMPROVEMNT AS THEY DO NO PAPER DELIVERIES AND THERE IS A MARKET IN THE AREA, ALSO ALL THE CARDS THEY SELL ARE ON SALE AND RETURN THUS REDUCING THE PROFIT MARGIN. I ONLY HAVE 20000 TO INVEST IS THIS PIE IN THE SKY OR FEASABLE, OBVIOUSLY I WOULD NEED TO GO THROUGH THE ACCOUNTS FOR THE LAST 3 YEARS BUT, AM I ALLOWED TO OR DO I NEED TO PAY AN ACCOUNTANT.THERE ARE A NUMBER OF OTHER IMPROVEMENTS THAT COULD BE MADE BUT I THINK UNWISE UNTIL ONE GETS TO KNOW THE CUSTOMER BASE AND WHAT IT WANTS. ADVICE APPRECIATED
RE: POST OFFICE/NEWSAGENT
emplaw | 28/09/2003 04:03 PM
Given the current climate with the sub-post offices I would look long and hard at any figures taking out the post office salary to see what would happen to the business in the event of that being closed as is happening all around the country. I would also talk to similar business owners in other areas about their experiencesin set ups like the one you are considering as there are a lot of hours to cover in the day with a paper round and newsagents. An investment of £20,000 if this is your only money is very low and means your loan to value ration is high. This is known as a high gearing and will place pressure on your day to day cash flow so getting an accountant to look at the figures and also looking at the state of the shop, lifestyles of the present owners should give you a more rounded picture of the accuracy of the figures.
I would also ask the outogoing owners whether you could spend a couple of ays with them in the shop to look at the clientelle and also take stock of the number of transactions so you can check out the takings on the accounts against your own experience. Given the post office also will bring in customers you need to know a lot more about the arrangements and transfer of this aspect of the business.
Good luck!
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Lee Schwartz Lime One Ltd www.limeone.com 01244 852550
RE: POST OFFICE/NEWSAGENT
nigel101 | 29/09/2003 08:48 PM
I would say if you've only got £20k you wont get a loan inless you can secure it with a house. You could rent out the bedrooms. But why are they selling?? You have to ask yourself if you where earning nearly £200k a year why would you even consider selling.
cheers
RE: POST OFFICE/NEWSAGENT
10997 | 30/09/2003 08:16 AM
quote:
Originally posted by nigel101
I would say if you've only got £20k you wont get a loan inless you can secure it with a house. You could rent out the bedrooms. But why are they selling?? You have to ask yourself if you where earning nearly £200k a year why would you even consider selling.
cheers
RE: POST OFFICE/NEWSAGENT
10997 | 30/09/2003 08:18 AM
Hi,
Thanks for the interest, the postmaster is 66yrs old and wants to retire he had hoped his daughters would take over but unfortunately they have other interests,
regards
10997
quote:
Originally posted by nigel101
I would say if you've only got £20k you wont get a loan inless you can secure it with a house. You could rent out the bedrooms. But why are they selling?? You have to ask yourself if you where earning nearly £200k a year why would you even consider selling.
cheers
