Should I buy a hydraulic hose shop or start one?

A hose and fitting shop looks simple from the counter. Behind it sit supplier relationships, assembly skill and customers who trust the shop to have the right hose when a machine is down. Whether to buy or start depends on how much of that you would rather build yourself and how much you would rather inherit. Neither answer suits everyone.

What a start-up builds from nothing

A new shop needs a stocking account with a hose and fitting manufacturer, and the manufacturer decides whether to offer one. It needs crimp specifications and the know-how to assemble hose correctly. It needs a counter location that contractors already drive past, a list of fleet and farm accounts, and perhaps mobile vans. Each takes time before any of it earns.

What an existing shop hands over

An existing shop may bring a working counter, equipment, stock, trained staff and customers who already call. The difference is that you are paying for these, and some may not move with the sale. A supplier account is a good example, because the supplier will set its own terms for a new owner.

Making the comparison fair

To compare fairly, ask the existing shop the same questions you would face as a start-up. Which accounts transfer? Does the lease carry over? Do the technicians stay? Our page on buying an existing machine shop or starting one walks through a similar choice for a related trade.

Questions to settle before you decide

• How long could you go without income while a start-up builds its accounts?
• Which parts of the shop would you have to learn on the job?
• What would you need the seller to stay on for after closing?