We don’t
often advertise stalls for sale on Victraders but we did advertise one this
week and it has raised a few questions. In particular, should you be selling
your business on the basis of current takings or potential takings?
The global
retail industry is in recession, or at least the brick’s’n’mortar category is.
Retailers who sell strictly on line or have a strong online component may be
doing better. The industry is transitioning from the old way of retailing to the
new way and it will sort itself out in due course. It might take a few years
but there will be a new retail order of profitable retailers.
So, right
now stall sellers are selling potential. They are selling a framework which,
with the right input, can be a significant business in the future. That input
might be global buying, new product injection, and an online sales structure
including websites and social media. Marketing online has great potential and
opportunities to sell through Facebook and Instagram are improving all the
time. If you have taken advantage of the SBMS mentors you will know of that
potential.
But all that
potential is likely to be built on a sound bricks’n’mortar base. We know there
are many pure online retailers who have introduced physical shops because they
know shops are an essential part of the full offer. Even Amazon is doing that.
It is true
that making a profit in retailing is difficult at the moment. But this is an
industry in transition, and for those willing to take on the challenge, stalls
at The Queen Victoria Market have a real attraction – low cost, access to big
crowds (particularly tourists), and a flexibility found in few other
categories.
You may have
decided it is time to move on. You have operated in a time of traditional retailing
that now needs new skills and a new approach. Your business has value,
particularly if you have good spots and a potential buyer will recognise that
value. Handing over to new operators, passing the baton, whatever you call it,
is a great opportunity for the right entrepreneur. That is worth something. Don’t
sell yourself short.
By Greg Smith
By Greg Smith