Hi all

I am seriously considering opeining a Retro Game Shop. I have worked in London for 14 years and I'm sick of commuting, long days and I yearn to work closer to home and doing something I actually enjoy and have a passion for.

My dilemma

I would prefer to choose a shop that's rent is not too high which is hard for me as in my area the rates are generally high. It would need to been seen from a main road to attract custom and ideally have some parking close by. However starting a business from scratch is quite scary. I wont go into too much detail but you can imagine what is involved in setting up a business.

Now comes the dilemma, there is currently a retro game shop approx 2 mins walk from my house. Its not a great one to be honest as its layout and design are pretty poor. His consoles are generally in poor condition and overpriced. In fact, all the things he sells are overpriced!

However, he has a lot of stock of PS1, PS2, PS3, Xbox, Xbox 360, PSPS titles and a very small amount of Master System, Megadrive games. He also sells DVD's which is pointless as these can esily be picked up from any car boot these days for about 50p to 1! His current business model sucks! He does not have a website or even sell on Ebay!

What saves him is that he also operates a mailbox system which has existed in the premesis for over 40 years. There is also a tiny studio flat attached to th eback which can bring in rent of about 400 per month. The rent for the shop is 500 a month which is extremely low for the area, BUT you get very little passing trade at the weekend because of its location. During the week though, there is a primary school opposite and a secondary school just down the road. But he does need make the most of this!

I see the potential here. He values the business at 35,000. I don't. I have not yet asked to see his records which would show me the actual figures. I'm guessing that the rent of the flat and mailbox service makes up most of the value.

So, I stuck at the moment. Buying this place would mean earning money straight away via the mailbox service, I would inherit stock straight away and could begin to trade. However, I do not value the business as he does, until I see the accounts.

Help please, all advice is much appreciated!

I didn't find the right solution from the internet.

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