Should I buy an existing hot tub store or start one?
Buying an existing hot tub store gives you a brand line, a showroom and past customers from day one, but you take on its stock and obligations. Starting one lets you choose your lines and layout, but you must win dealer approval and build trust. Compare what each path asks of you before the first season.
Both paths lead to the same place: a showroom, a brand to sell and customers who come back. They differ in how you get there and what you carry on the way. This page lays out what to compare. It does not tell you which path to take, because that depends on your money, your experience and the market where you want to work.
Getting a brand line
A newcomer asks a manufacturer for a dealer line and may be asked about location, display commitments and experience. A buyer may inherit a line if the dealer agreement and the manufacturer allow the change in owner. Either way, speak to the brands early. Ask your lawyer what the agreement says before you commit, and read it more than once.
Customers and service
A hot tub is not a one-time sale. Owners need water-care products, covers, parts and service for years. An existing store may bring that stream with it, along with service records and possibly work promised to earlier buyers; ask your lawyer what carries over. A new store starts with none of it. See the same question for a cell phone store for the general pattern.
Display stock and the first season
Showroom units tie up money, either yours or a lender’s. Ask what stock comes with an existing store and how it is financed, and work out what a new showroom would cost to fill. Then think about the first selling season. A buyer may arrive with sales already in motion, while a new store must fund its stock and marketing before it earns anything.
Related reading
13 pages on the same subject, grouped by topic.
Buying
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- Expert answerWhat changes when I buy a hardware store that belongs to a dealer-owned co-op?
- Expert answerWhat should I check before buying a paint store?
- GuideBuying a furniture retailer in Canada
- GuideBuying a building supply dealer in Canada
- Expert answerWhat should I check before buying a sewing machine dealership?
- Expert answerHow does big-box and online competition affect buying a cell phone store?
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 CanadaGovernmentInventory financing: What it is and how it works
- 04Business Development Bank of CanadaGovernmentWhat is inventory
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