Should I buy an existing alterations shop or start one at home?
It comes down to what you need on day one. An existing shop brings a location, referral accounts, trained staff and equipment, but also a lease and obligations. A home start is slower and lighter, and rests entirely on your own skill. Decide which of those two trade-offs fits your plans, skills and savings.
Both routes can work, and neither is automatically better. The check list for a tailor or alterations shop helps you review a specific shop. This page is about the earlier question of whether to buy one at all, or to begin on a smaller scale from your own home.
What an existing shop brings
A shop in operation comes with customers who already know where to go, a visible location, and usually equipment you would otherwise buy piece by piece. Some shops also hold referral relationships with dry cleaners, bridal stores or menswear retailers. Ask which of these will actually pass to you, since many depend on the seller personally.
What starting at home gives you
A home start keeps fixed costs low and lets you learn the work and the customers at your own pace. The trade-offs are visibility, space for fittings, and growth. Before you plan around a home setup, ask your municipality and your insurer what they allow for customer visits, and ask your lawyer what a lease or condo rules might say.
Your own skill
Alterations include hems, zippers and tailoring on formal and bridal pieces, and the difficulty varies widely. Ask yourself honestly what you can do well and fast. If you will rely on staff, ask whether they would stay for you. If you will do the work yourself, a shop with machines you do not need may add cost without adding value.
Questions to settle first
- How much of the shop’s trade depends on the current owner?
- Could you build the same referral accounts yourself, and how long would it take?
- Can you manage the lease and staff on top of the sewing?
- Would a smaller start, then a later purchase, suit you better?
Related reading
12 pages on the same subject, grouped by topic.
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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 CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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