How do I find out if a muffler shop depends on walk-in traffic from its location?
Ask the shop to sort a year of jobs by how the customer found it: walked in, phoned, was referred, or came from a fleet or garage. Compare that with what the location offers, such as visibility, signage and traffic. If walk-ins carry the shop, a move or a change next door could hurt it.
Ask whether the shop tracks how customers arrive. If it does not, sample invoices or add a question at the counter during your review period, and share the method with the seller so the result is credible. Ask neighbouring businesses what they notice, in a friendly way. Shop owners nearby often know about changes coming to the road or the building long before anyone announces them. A short chat costs nothing and often tells you more than a brochure.
Visit at different times and watch. Note how many people come off the street, what they ask for and how long they wait. Walk the surroundings too. Look at the parking, the signs, the neighbours and any road work or development that could change the flow.
Compare this with the lease. If the business depends on the site, a short or uncertain lease makes it riskier, so read its terms with your lawyer. Ask what the landlord has planned for the property. Finally, test how much would follow. Phone and referral customers may stay if the shop moves, and walk-ins may not. A broker, if one is involved, can sometimes share what they know about the area.
Key takeaways
- Sort a year of jobs by how each customer found the shop.
- Visit at different times and study the traffic, parking and surroundings.
- Read the lease with your lawyer, since the site may be part of the value.
Related reading
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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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