Convenience Store Decisions Community » Ask the Experts

1. deekessler
   Member

   My husband and I are considering purchasing a convenience store that is located on the edge of a national forest in the Colorado mountains. They currently sale everything from groceries, fishing lic & equipment, small souveniers, candy, pop & beer. We have owned our own business before, providing a service, however, this would be quite different. Business is slower in the spring, busy in the summer and somewhat busy in the fall (hunting season). Currently they are closed during the winter months. The closest gas station is 17 miles away. We would like to make fuel available, including diesel for the RV's, add fountain drinks & flavored coffees, and other possibilities. Can someone guide us on
   1) How to find information on what it would cost to bring
   fuel in the area and how we might go about it?
   2) How do you determine the worth of the business?
   3) What is the normal process of buying the business? We would be buying the building, land it sits on & inventory.(There are no comps available to assist with an appraisal for commercial businesses, only residential)
   4) And any other information that would be helpful or suggestions on where to go to find the information.
   THANK YOU SO VERY MUCH FOR YOUR HELP!

   Posted 3 months ago #

2. bertlathrop9n
   Member

   The way I was taught years ago is to use multiples of annual profit.It is very normal to use two and one half to three times annual net profit before income tax.In your case plus the actual value of the land.

   Posted 3 months ago #

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