Should I buy an existing video game store or start one?
Buying gives you a store with trade-in stock, regular customers, supplier accounts and a lease already in place, but you inherit its weaknesses and pay for what the seller built. Starting gives you control and a clean slate, with a slower start. Which fits depends on your cash, your game knowledge and how much risk you can carry.
Both paths can work for a game store, and neither is simply better. An independent or retro store lives on trade-in stock and on a local following, and both can take a long time to build. Buying can shorten that time. Weigh the up-front cost against the time with your accountant. The points below are for weighing the two, not for making the call for you.
What an existing store gives you
A running store has stock the owner has already bought and sorted, supplier accounts, a customer base, a location and a name people know. It also has staff who know the work. Ask which of these you would really receive. Stock can be old, accounts can be tied to the owner, and a name can fade quickly if the owner leaves.
What starting fresh gives you
A new store lets you choose the location, the lease, the mix of new and used, and the look. You inherit no old stock or old habits. You also build the following from zero, find trade-in sources and learn pricing by trial. BDC sets out the steps in buying a business, which helps when you compare it to starting.
Questions to settle first
- How much cash can you put in, and how long can you go without a salary?
- Do you know used and retro games well enough to buy and grade them?
- Would the seller stay for a handover and introduce you to regulars?
- Is the lease in place, and would the landlord accept a new tenant?
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 CanadaGovernmentWorking with a broker to find a business to buy
- 04Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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