What should I check before buying a paint-your-own-pottery studio?
Check how the studio earns from walk-ins and from parties, what bisque and glaze stock comes with it, how long firing takes, and how many finished pieces are waiting for pick-up. Then confirm the lease, the kilns and the staff who run the painting floor. These show whether the business runs without the owner.
A paint-your-own-pottery studio works differently from a wheel-throwing studio. Customers walk in, choose a piece, paint it and leave it to be glazed and fired. The business lives on foot traffic, birthday and group bookings, and a smooth line from painted piece to finished piece. Your checks should follow that line, from the front door to the kiln and back to the customer.
Read the booking mix
Ask the seller to split sales between drop-ins, birthday parties, school and corporate groups and any retail. Ask for the booking calendar and how far ahead groups usually book. A studio that depends on a few party customers or on one season carries a different risk from one with an even spread. Ask whether the booking system, the deposit terms and the customer list transfer to you.
Look at stock, glazes and firing
Count the unpainted bisque on the shelves and ask who supplies it, on what terms and how long deliveries take. Check glaze stock and the paint-on supplies. Then look at the kilns: their age, their service records and whether one failure would stop the studio. Ask how many days a piece waits before firing and before it is ready, since long waits upset customers.
Ask about the pick-up backlog
Finished and unclaimed pieces on the shelves tell you about customer habits. Ask for the studio’s policy on uncollected pieces and how it has been applied. Also ask how prepaid visits, party deposits and gift cards are tracked, since your lawyer will need to know what is outstanding. Your lawyer can say how those obligations are handled in the sale.
Confirm the lease and the people
- Ask for the lease, its remaining term and whether the landlord will consent to an assignment.
- Meet the staff who run parties and ask who handles the glazing and firing.
- Ask whether the seller will stay for a handover period.
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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 CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 04Business Development Bank of CanadaGovernmentWhat are financial statements?
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