What should I ask about a bookstore’s author events and book club customers?
Ask how often events are held, who arranges them, and what they bring in beyond ticket sales. Then ask about the book club members: how many are regulars, how they are reached, and whether they come for the shop or for the owner.
Events give a bookstore a voice in its neighbourhood, so it matters whether they are planned well or rely on one personality. Ask for the event calendar and records of attendance, sales and costs for recent months. Find out how authors and publishers are contacted, who handles the paperwork, and whether any partner organizations, libraries or schools help.
Ask what an event really earns. Some bring in book sales on the night and in the days after, while others cost more in staff time than they return. A fair assessment includes hosting, setup, promotion and refreshments. If a few events lead to a loyal group of buyers, note it, and ask how you could tell.
Then look at the book clubs. Who leads them, where do they meet, and do members get a discount or special orders? Ask how the shop keeps in touch, whether through an email list, social media or in person. If the owner personally runs the clubs, plan for how that relationship will carry on. Your accountant can help sort event costs from regular operations, and your lawyer can advise on contact lists. Ask, too, what the shop would stop doing if the events ended.
Key takeaways
- Ask for the event calendar with attendance, sales and costs.
- Work out whether events pay for themselves or mainly build goodwill.
- Find out who runs each club and how members are kept in touch.
Related reading
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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 CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
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