Does an alterations shop depend on a bridal shop referral to stay busy?
Ask the seller for work orders sorted by source. If a single bridal shop sends a large part of the work, the alterations shop is exposed to that relationship, so find out whether it will continue after a sale. Ask the seller to arrange an introduction if the link is strong.
Request a breakdown of jobs by how the customer arrived: bridal referral, dry cleaner, walk-in, repeat client or online. Compare how much income each source adds, not just how many jobs. Bridal work often pays more per piece, so a small number of referrals can matter a lot.
Ask whether the arrangement is written or just a handshake. Find out who set it up and whether it rests on a personal friendship with the seller. Ask if the bridal shop would meet you before the sale. A short conversation can tell you much about whether the work will stay.
Check for seasonal swings, since wedding work tends to bunch up. Ask what fills the quiet times, and whether the shop does everyday repairs and hems as a base. If the referral is vital, ask your lawyer about building the introduction and a handover period into the purchase terms. Also think about how you could widen your sources afterward. Ask too how the bridal shop chose this alterations shop, and what it would take to lose that trust. Late or poor work can end a referral quickly. Learn what the shop does to keep the partner satisfied, and whether the current owner has a competitor nearby trying to win the same business.
Key takeaways
- Sort work orders by referral source and income.
- Ask if the bridal arrangement is written and transferable.
- Meet the referring shop before you decide.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I find a tailor or alterations shop for sale?
- Expert answerWhat should I check before buying an alterations or tailor shop?
- Expert answerWhat should I do in the first months after buying a tailor or alterations shop?
- Expert answerShould I buy an existing alterations shop or start one at home?
- Expert answerHow can I tell if a home care agency depends on one referral source?
- Expert answerHow do I find a bridal shop for sale?
- Expert answerWhat happens to customer dress orders and deposits when a bridal shop is sold?
- Expert answerHow do I judge the sewing machines and pressing gear in a tailor shop?
Selling
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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