What should I check before buying a stationery or greeting card store?

A stationery or greeting card store looks like a gift shop, but the checks are different. Much of the shop’s look and its steady income can depend on arrangements with card companies and on accounts with schools and offices. Those arrangements are easy to miss from the front door. These are the points to put to the seller before you commit time or money.

Card fixtures and company programs

Ask who owns the card racks. Some are owned by the store, and some stay the property of the card company that supplies them. Ask whether any display or supply program is written down, whether it can pass to a new owner, and whether the company has to approve the change. Get the answer from the company, not only from the seller.

The seasonal calendar

Back-to-school and the card holidays usually shape the year. Ask to see sales month by month across several years, and ask what the seller does in the slow stretches. Your closing date matters too, because buying just before a peak means ordering stock with little notice. Compare your cash plan to the calendar.

School, office and business accounts

Ask which accounts are standing customers and which are occasional. Find out whether orders are in writing, who the contact is at each customer, and whether the relationship depends on the current owner. A buyer should hear this from the customers where the seller allows it, once the sale is confirmed.

Print, copy and dated stock

If the shop prints, copies or engraves, look at the equipment, its service history and whether it is owned or leased. Then look at the dated stock. Planners and calendars lose their sales window, so ask how the seller counts them and how the count is handled at closing.

The general retail checks are in what to check before buying a gift shop, and what happens to gift cards when a store sells covers outstanding balances.