|
the most important thing about c-stores is the location. You cant advertise with a c-store so location is key to attracting customers.
The second is inventory turnover, if you are not selling items fast, it's a death sentence to your business as most inventory you own are perishable. Around 70% of inventory you can purchase at a costco, including tobacco so that is a plus. Purchasing $90 000 of tobacco onto your amex card = 1 free flight right there. Getting decent suppliers is important for the remaining 30%. I find that Pepsi/Coca Cola are very nice, with generous rebates and free stuff. Same goes for Frito-lay and Old Dutch, they will buy back at a discounted rate for expired goods. SYSCO was nice but they jacked up the prices alot recently. IMO I think it is too hard to develop a C-store around Vancouver/DT, too much competition, If you sold gasoline as well, maybe. Be advised that you need at least $1 million to invest in anything in Vancouver.
As for deducting expenses, meals/entertainment/clothes/laptop dont EVER deduct, they are pointless to a C-store owner and more towards realtors, accountants etc. my parents got audited once and although we passed they frowned on our suburban lease, saying that it is too luxurious, they only let it go after we told them that it is better than a silverado + pick up cover. If my dad listened to my whining and got a Escalade ESV, we would've got fined $20-30 000?
Oh and watch out for wal-mart, if they move into the neighbourhood = good-bye c-store!
|