Should I buy an existing refill store or open a new one?
Buying an existing refill store hands you regular customers, supplier and drum-return arrangements, dispensers and a community following. Starting new gives you your own site, products and design with none of the inherited habits. Weigh each by the questions it leaves you to answer, and check the seller’s claims before you rely on them.
Both routes can work for a refill or zero waste shop, and neither is simply better. The choice turns on what you want to inherit and what you would rather build yourself. Treat the points below as questions to put to the seller and to your advisers, and decide only after you have seen the store’s actual records and talked to its suppliers.
What an existing store hands over
An established shop may come with regular refill customers, working supplier terms, drum-return routines and dispensers already installed. Ask which of these are really transferable. A relationship that exists only between the owner and one supplier may not continue, and equipment may be older than it looks. The seller’s explanation of each item should match what you see and what the suppliers say.
Brand and community
Many zero waste shops are known for a person, a set of values and a local following. That reputation can be an advantage if you share it and a problem if you plan to change course. Ask how customers found the shop, whether the mailing list and social accounts transfer, and whether the owner will help with introductions for a period.
What starting new gives you
Opening your own store lets you pick the site, the layout, the suppliers and the product range from the beginning. You also build every customer relationship yourself and take on the full time and cost of fitting out a shop. Compare that with taking over a shop and changing what you want to change.
Questions to settle first
- Which supplier and lease terms continue after a sale?
- What equipment must be replaced soon?
- How much of the business depends on the current owner?
- Would you change the product mix, and can you under the existing arrangements?
A similar decision for another refill-style retailer is set out in should I buy an existing water store or open a new one.
Related reading
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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 CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
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