Post a new topic
    2 Replies Latest reply on Jul 1, 2009 5:08 AM by RanksIntl

    Convenience Store?

    Pseudonym Newbie
      My father and I have recently been discussing starting up a small convenience store in a local office building. The space for rent is about 1,000 sq. ft., and the rent is set at about $1,450 a month. We are in south Texas. The building itself is 8 stories tall and I would guesstimate houses anywhere from 32-50 offices. I am not really sure about how much traffic it gets. I will try to get more details on this soon. There is also an adjoining building of approximately the same dimensions.

      There have been a few delis that attempted to use this space, and the last one was making money but according to the owner not enough to really cover the amount of work she was doing. To be honest, she was making full meals as well as simple sandwiches so I can certainly understand that. In speaking with the owner of the building, we've found that we might be able to get a deal on the rent (we were thinking of asking for $1,250 a month) as the store could help bring in clients to any empty offices.

      Let me know if I'm giving too much detail or not enough, I'm trying to give you a feel for why I think this might work.

      The nearest convenience store is not very far away, but because of the stoplights and traffic it takes about 10 minutes or more to get there and back.

      The idea I have is just for a very basic convenience store. Obviously we would not sell alcohol, and even though there are smokers in the building, I'm lax to sell cigarettes just because of the license requirements, fees, and potential liability it could bring to the store. I was thinking pre-wrapped sandwiches, burritos, bottled/canned sodas and a fountain drink, and some basic office supplies - you know, pens, pencils, paper, etc. as well as asprin, rolaids, the likes. Candy bars, chips, newspapers, etc. I don't really want to mess around with things like hot dogs or anything that requires more preparation than a pot of coffee. We won't have to worry about installing a bathroom because the building already has them.

      Ideally, we would like the store to be self-sufficient with perhaps 2 or 2.5 employees. Our hours of operation may vary, but initially we were thinking something like 7a-2p - just enough to catch people on their way in in the mornings and then the lunch rush. There is also a small university here that operates in the evenings, and that may be a potential venue for more business if we were to keep later hours.

      I have no idea about opening a convenience store, to be honest. I have a close friend who is a tax guru who can help us handle the legal issues (licensing as an LLC or Inc., etc), however what I am looking for is resources. I need a way to find what numbers I should be crunching as far as cost vs. profitability. I am very new to this, and honestly we just started brainstorming today. I don't expect anyone to have all the answers, but if you could point me in the direction of some resources (even printed media from a library), I'd really appreciate it.
        • Re: Convenience Store?
          LUCKIEST Guide
          Convenience Store, Welcome

          To keep my answer short, SCORE has ALL the answers. SCORE is FREE both in person and online. Your local SCORE office in Texas should be able to help you crunch the numbers.

          Also go to Members page and share some info.

          Good luck
          • Re: Convenience Store?
            RanksIntl Adventurer

            The more detail the better!

            The first step that I always suggest is creating a business plan. The reason behind this is it will first help you to determine if there is a market for your business before you get too deep into it and because it will force you to ask yourself questions which will in turn answer questions that you already have...if that makes any sense. Also, it will be integral if you are looking for any outside financing.

            The majority of c-stores are connected to gas stations which bring in 60% of the revenue. Since you won't have this you should maximize all of the other resources provided to you. For instance selling tobacco products. In a store with a gas station they are 14% of the revenue so they will no doubt attribute a lot more to your store and are therefore may be worth the extra hassle. Alcohol does also bring in revenue but not nearly as much so you should be fine without it.

            To figure out a lot of your financials you may need to source your local market. Determine the demand for your business right now. There are a lot of factors that will go into creating your financials.

            Some of the basic statements that you will need are:

            1. A balance sheet which will be any detail on your assets, liabilities and equity
            2. Profit/ loss statement which is any profit you anticipate as well as all cost anticipated.

            There is more but a lot to put into a forum post. If you want to email me at the address in my profile I can send outlines, etc