If you're thinking of buying a Bottle Shop in St Kilda East, there are several things you should do before making an offer. The buyer's due diligence checklist is different than the seller's because buyers are more likely to negotiate on price and terms. Here are some things to consider:
Look at the premises
When you're conducting a due diligence inspection of a bottle shop, there are three things to look at: the building itself, its location and the surrounding area.
- The premises should be in a good location - one that's well-lit, with plenty of parking and accessible by customers and delivery vehicles.
- The premises should be well maintained - with clean floors, walls and windows throughout; no graffiti on any part of the building (inside or out); working smoke alarms; all fire exits clear; no rubbish lying around in or near the bottle shop; no visible pests such as cockroaches or flies; internal fittings such as refrigerators are clean inside and out; all glass shelves are sparkling clean (if any)and in good condition; and all lights are working.
The premises should be big enough - to allow for expansion if necessary (for example, if you're buying a bottle shop on the outskirts of town, it may not make sense to buy one that's only 500 square metres); and it should have sufficient parking for customers, delivery vehicles and staff members.
Examine the lease
A lease is a legal agreement between you and the seller that dictates how long your business can operate in that location, as well as terms of rent and other fees.
Make sure to read through all of the details of the lease before signing anything. If there are any issues with it, be sure you negotiate with the landlord or tenant to try and come to an agreement before moving forward with purchasing.
You also want to make sure that any special conditions on the lease aren't problematic for you when looking at buying bottle shop. For example, if there is a clause about only being able to sell wine on Sundays but this isn't possible for you due to your target market being craft beer lovers then this could cause problems later down the line!
Talk to suppliers
Talking to suppliers is an important step in the due diligence process. They can help you get a better picture of the current health of the business, lease, and financials. You can also ask about competition, staff, and customer demographics.
-What are the main problems the business is facing? -How can you help them solve these problems? -Do they have a good working relationship with their landlord, suppliers, and customers?
-Do they have a good relationship with the staff? -What are their projections for growth in the next few years? -What is your role going to be? Why do they want you there?
Doing your due diligence is the best way to ensure that you’re buying a good business. Don’t be afraid to ask the tough questions about Bottle Shop St Kilda East and make sure that everything you need is in place before committing to this long-term investment.