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Several decades ago, a gas station was a gas station, and a convenience store was a convenience store. If somebody had told me back then that these two completely different businesses would merge and become commonplace on America’s highways and byways, I would have thought it couldn’t be true.

But when you pause to consider it, the merger makes a quite a bit of sense. When people stop for gas, why not offer them a chance to spend even more money on the things that they might also want – coffee, soft drinks, snacks, and other inexpensive items? Perhaps even a pair of sunglasses to reduce the glare from the road?

So, why not jump at purchasing a convenience store when you purchase a gas station?

Well, perhaps… But before you choose what you’re going to do, you should answer these two fundamental questions:

• Question #1. If a convenience store is already part of the gas station business, is it profitable? If it isn’t, can you turn it into a money-maker?

• Question #2. If a convenience store isn’t currently part of the business you’re thinking about buying, is it worth your while to add it? Bear in mind that you need not hurry to add one, if none is present. You can add one at your convenience, when it’s financially worth your while.

Estimating Potential Costs and Profits.

Whether or not a convenience store is currently part of the business you’re thinking about buying, here is a checklist of expenses that can assist you with evaluating the additional costs. Compare these costs to profits (or potential profits) and you will be able to make an educated estimate of a convenience store’s profit potential. Never accept the Seller’s figures regarding these expenses. You’ll have to look everywhere you can to produce cost estimates that you can personally verify.

Insurance – If there is currently a convenience store present, how much is the insurance payment? Keep in mind, the level of insurance that’s already in place may not be sufficient. Speak with an insurance broker to determine what kind of coverage you really need along with the overall cost. You’ll quickly learn that if a convenience store is part of the package, you’re going to require a lot of additional coverage for liability, workers compensation for staff, and more…

Payroll – You’ll have to hire and pay employees to staff your convenience store. You might also have to pay benefits. Ask the Seller of the business about who staffs the store. If he or she is having underpaid family staff it, it can be problematic reaching an accurate estimate of what your employee expenses will be when you’re the owner.

Utilities – Convenience stores need to be well lit. They also need to be heated in winter and cooled in summer. Those costs can really add up.

Retail Payment Systems – These include accounts to process credit cards, cash registers and more. If up-to-date systems aren’t in place, you will need to upgrade all of them.

Lottery Terminals – Quite a few shoppers purchase lottery tickets when they purchase gasoline. Installing a lottery terminal may seem like a fantastic way to increase your income, but before you begin counting on this additional income, contact your local state lottery authority to find out about the expenses involved with utilizing a terminal.

Signage – To maximize profits, you’ll need high-visibility signage to show customers that a top quality convenience store is part of your business. If signs aren’t there, you’ll need to purchase them and put them up yourself.

Paving, Snow Removal, Landscaping and Other Associated Costs – Customers need to be able to park in convenient locations and walk safely to your store. Those factors make it more expensive to run a gas station/convenience store than it otherwise would be to operate a gas station alone.

Questions to Ask the Seller If a Convenience Store Is Already Part of the Business You’re Buying:

• What is your current inventory and what is it worth? (Remember not to count perishable items such as dairy products or returnable products such as magazines.)

• How much profit have you been generating from convenience store sales?

• Please provide an approximate breakdown of your revenues between gas sales and retail, and a further breakdown of the retail sales.

• Is your convenience store a franchise that is separate from your fuel operations?

• Do you operate the convenience store as well as the gasoline station part of your operation – or is the business split? If the operations are divided, how is that structured?

• Do you have automated inventory tracking and control systems in place?

• What products are you selling in your convenience store, and how much volume/profit is tied to each of them?

• Who are your suppliers for tobacco, beverages, coffee and all of the other retail offerings?

• Do you sell lottery tickets? What are the costs and profits?

• What hours are you open? Which hours of operation are the most – and least, profitable?

So, should a convenience store be part of the deal when you decide to purchase a gas station? Should you think about adding one, if none is already there? To find out what’s best for you, you should get a good pen and go through the checklist above. You should ensure you’re buying a station that’s profitable not only at the moment, but for many years to come.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream of buying a business.

Despite an economic downturn, poor sales, sky-rocketing unemployment and a banking emergency, this actually may be a great time to think about purchasing a business. The reason is really very simple: it’s currently a buyer’s market, which means the market for buying a business is ideal.

Buy business trends are on the upswing, with sellers relaxing their purchase business terms because there are fewer qualified buyers, third-party financing becoming near impossible, and opportunities to negotiate a really good deal for a business for sale aplenty.

However, the receptive environment for purchasing a business doesn’t mean you should march ahead without establishing specific buy business fundamentals. It’s quite common for highly motivated, yet inexperienced buyers, to pay out far too much for a business which has no real chance of staying afloat, even in better than average times.

First and foremost, it’s important to know the purchase business climate before even considering whether to own a business. At the moment, the buying a business market is being significantly damaged by the present economy and there is very little small business lending happening. Consumer confidence that the economy will turn around sometime in the near future is at rock bottom, and many businesses are experiencing multi-month declines. For these reasons, it’s crucial when pursuing a business for sale to negotiate a good deal that will assure your protection both now and in the future if the economy doesn’t improve relatively soon.

Before deciding whether to own a business during these tumultuous times, there are six basic buy business steps to follow. By following prudent buy business guidelines, you’ll position your new business to succeed irrespective of the economic environment.

Here is a look at the six important steps to buying a business:

1. Request Several Previous 12-Month Profit & Loss Statements. Normally, a seller would provide year-end financial statements, any interim statements and tax returns for buy business inquiries. But considering the present economic environment, you’re going to need to review the business for sale financials from the present date and back to the past 12 months, as well as financials from the previous 12 months and the 12-month term before that too. This will give you a better picture of the overall health of the business for sale.

2. Be On The Lookout For Hidden Expense Cuts. With a business for sale, many sellers try to make the company look better by making cuts to enhance profits. When looking over the financials, review the expenses for marketing, advertising and payroll by performing an item-by-item comparison over quite a few periods and comparing the number to sales or income. Furthermore, a review of the balance sheet will show whether inventory has been cut or if shareholders or owners contributed their own money to improve the company’s bottom line.

3. Review The Customer Base. When purchasing a business, understanding the existing customer base is essential. Although a business may be performing well, sales might show problems. If you chose to own a business where sales are dwindling, be sure to adjust the purchase price accordingly and have a new sales and marketing strategy in place.

4. Negotiate Earnouts. These are purchase business terms based on performance. Linked to the purchase price, earnouts are assurances that the business for sale can survive in the current economic climate and grow in the near future. Once you’ve completed a comprehensive analysis of the books, set an asking price that reflects the present performance of the business and its potential stability for possible future declines. It’s essential to negotiate a performance-based deal, especially if the buy business evaluation shows a loss or no recent stability or growth. With an earnout structure, the seller receives the balance of the purchase price when certain targets are met in the future. Earnouts can be based on profitability, sales, or retention of customers.

5. Insist on Seller Financing. As far as lenders are concerned, this is not a buy business climate. So the likelihood of you acquiring financing for purchasing a business are slim to say the least, especially if you don’t have much collateral or no business ownership experience. As such, it’s important that the seller finance the entire purchase business price or a large portion of it.

6. Don’t Be Intimidated By Business Brokers. They represent the seller, so it’s their job to present a positive buy business environment. As such, you need to take control of the deal.

When purchasing a business, it’s crucial that you acquire all the key financial and performance data which has anything to do with the business for sale. This information is your bargaining tool when meeting with the seller. You can own a business and be successful at it if you make well informed purchase business deals with the seller to limit your risk. Despite the current business climate, it’s exciting to own a business and nothing should stand in your way of realizing your dream.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation - The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream of buying a business.

So, you’ve finished your due diligence process, spoken with all your advisers and professional consultants, completed all the essential steps to properly value a business, arranged your financing and taken the leap. Now, how should you go about ensuring that you’re new baby gets through the pivotal phase of transition and prospers over the long haul?

You will already know quite a lot about the business and its requirements before you take control of the keys. You should also have carefully prepared your own comprehensive plan by now. This is one of the essential prerequisites when you plan to own a business. They say that when you move a house plant from one position to another, it goes into shock. The same analogy can be used when it comes to the business, and you will need to ensure you minimize the “shock”.

The first thing that you have to bear in mind is that you will need to focus intently on your goals. Now, probably more than ever, it is essential that you’re not distracted and that you allocate as much time as is humanly possible to this new enterprise.

If possible, look to having the former owner add some much-needed stability by staying on premises for a pre-set span of time. He or she can act as an advisor and can be seen (but maybe not heard as much) by clients, customers, employees and vendors. It would be best to avoid making any “across the board” changes, as clients and employees may react negatively. If you make small changes, make sure that you view the results before you progress to make others.

You should invest the necessary time to get in touch with all the important players – your staff and your vendors. Create a one-on-one, personal relationship with each of your staff from the very start. Maintaining employee morale at the outset is vitally important and make sure that you establish a positive mode of communication. Look to making contact with every vendor that you’ve got,and if you can, work toward establishing a good relationship with all of these essential players.

The previous owner and employees represent a wealth of information and you should make sure that you gather this data before you consider implementing new procedures. You might be giving the orders, but you’re still “the new guy”, so always ensure that your decisions are based on a sound foundation.

Don’t be tempted to throw out any procedures, especially record-keeping and bookkeeping. You need to be able to compare where you are now and where you are going in the future, with previous results. You will not be able to make informed decisions otherwise.

Your customers, who pay the bills after all, are used to being handled in a certain way. By all means, review the customer relationship policies and procedures, but don’t be tempted to make any wholesale changes. Your goal is to keep those customers at all costs and to make sure that they are happy during the transition.

You may now own a business in an unfamiliar industry. It is important to get to know the ins and outs of the industry as quickly as possible. Familiarize yourself with the technology, software, programs, procedures and how to handle potential problems in the future.

Creating goodwill is one of the primary objectives now. When you purchase business assets, one of the key elements is this goodwill and whilst somewhat intangible, it is very valuable. Consider doing something for all your key players – clients, employees and vendors. Give some kind of an introductory special offer, of some significance, to your clients. Think of an enhancement that you can offer your employees, maybe some improved working conditions or an upgrade to their terms of service.

In summary, remember that you now own a business which is dynamic. You must pay particular attention to the crucial early days and ensure that you grow the company and achieve your ultimate objectives.

Richard Parker is the President and founder of the Diomo Corporation - The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream of buying a business.

The one thing, in one word, that you need to know when buying a business is PREPARATION. That eleven letter word is so powerful because it is what separates a successful buyer of a business from the rest. It’s preparation that gives business buyers the chance to jump on great opportunities when they show up. They sense a great thing when they come across it because they always follow clearly laid out preparation guidelines.

When buying a business, you need to be prepared in every aspect of the buying process. Your search for business opportunities is futile unless you know how to recognize a sound investment. And that takes preparation. In order to get prepared, it means knowing business operations inside and out.

Let’s consider the importance of preparation when buying a business. With it you will know the important questions to ask a seller. You will discover the essential areas of a business to look into. You will know the key issues to review and which business materials to request from the seller. You will come to a fair price to offer. And you will always know exactly which particular clauses in the terms of a sales agreement to negotiate.

Educating yourself on the business buying process is fairly easy when you think about all the information which is readily available online and spelled in books. Preparing yourself for a business opportunity involves knowing the industry, identifying the competition, knowing the market’s future predictions and identifying avenues of financing.

Before buying a business, preparation is also necessary for conducting a business valuation, formulating questions to ask the seller, identifying the strengths, weaknesses, areas of growth and problem areas of the business, and negotiating the main areas in order to formulate a good deal.

Nothing frustrates a seller more than having to answer inquiries from buyers who are not prepared. When purchasing a business, prospective buyers are expected to possess at least a little business knowledge before signing any sort of contract with a seller. If you’re not prepared to commit to a purchase and sales agreement, it’s best not to waste the seller’s time.

Even though you may be a first-time buyer, it’s usually expected that you’re well-prepared to engage in the purchasing a business process. By gaining knowledge about all aspects of the business buying process, you will have the preparation needed to close the deal on the business opportunity you seek.

A consistent mistake made by most people buying a business is to deal with things as and when they appear. But buying a business is a major investment and not one that should be left to a haphazard strategy. You can avoid common, yet costly, mistakes through preparation.

When purchasing a business, the secret to success is finding out everything you can about the business and its industry before engaging in any sort of contract. As you progress through the business buying process, learn all you can about the company’s financials and everyday business operations. Through solid preparation, you can rest assured that you are buying a business that is sound and positioned well for future growth.

One major mistake you can make when buying a business is to underestimate all that is involved in purchasing a business. Without proper preparation, you will quickly feel overwhelmed and without the knowledge to make key decisions or understand issues that you might encounter. The buying process is complex and includes many different stages, but with the proper knowledge and research, you can be well prepared to face them all with confidence.

When it comes to buying a business, the wise saying, “If you fail to prepare, then be prepared to fail,” so aptly applies. Preparation is the key to success when looking to buy a business that is sound and profitable. It is also preparation that will lead you in running and growing a success venture for many years to come.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream of buying a business.

When it comes to generating sales, business consultants everywhere say it’s not only your verbal communication that makes or breaks the deal. Instead, it now been realised that nonverbal communication is the main factor for achieving successful sales.

Communication skills are a main area business coaching evaluates in a person or company. While spoken and written interaction are fundamental aspects of interpersonal communication, what’s being understood through nonverbal communication is of value too.

In the opinion of business consultants everywhere, eye contact, body language and active listening are all crucial aspects of nonverbal communication. Studies delving into communication skills discovered that nonverbal messages are 55% of the effectiveness in the delivery of your sales message, compared with 38% for voice inflection and just 7% for the words which are actually spoken.

A executive coach will concentrate their attention on your communication skills. Some areas to consider when enhancing nonverbal communication skills are:

1. Eye Contact. Really good eye contact, say big business business consultants, is an absolutely crucial nonverbal sales technique. From the point of view of business coaching experts, eye contact plays a significant part in developing credibility and strong interpersonal communication.

2. Active Listening. Active listening, according to business coaching professionals, is being aware of what another person is saying by silently giving supportive clues, like a nod of your head or expressive eyes, and then verbally restating their concerns. As business consultants point out, active listening establishes customer rapport and helps you to more effectively tailor your sales message to a customer’s needs. A business coach, executive coach, or executive management training are absolutely excellent resources for acquiring skill in the domain of effective listening.

3. Body Language. Most business coaches or executive coaches will tell you that a exceptional leader is someone who radiates confidence and enthusiasm with their posture alone. That’s why so many organisations implement executive management training to teach their sales staff essential body language approaches. For example, a receptive stance is folding your hands in a relaxed manner in front of you and expressing your undivided attention. A calm, receptive posture helps to establish a trusting business relationship.

4. Voice Tone. When you communicate verbally, business consultants will suggest you use a warm and enthusiastic tone, with an alteration in inflection to emphasise important points. A successful sales pitch, according to executive management training courses, should have the proper balance of emotion and energy. A business coach or executive coach is an excellent resource for honing your tactics.

5. Facial Expressions. Your feelings and thoughts show on your face, in particular your eyes and mouth. Business coaching can help you with developing approachability through your smile and eyes.

6. Gesturing. While it’s good to use gestures to keep your sales message interesting, business coaching shows you how not to overdo them. Through executive management training, you can learn the proper balance of gesturing with your hands, head, or eyes so the listener will remain focused on what you’re saying.

Executive management training can help you with creating awareness of your active and passive communication, and then help you to understand it’s role in your upcoming success. In the vast majority of instances, a business coach or executive coach finds that closing a sale is based almost completely on an individuals communication skills.

Alan Gillies is the Managing Director of the L2L Group, specialising in supplying Executive Coaching, Training and Consultancy Services to Businesses around the World. Want to find out more about these insightful business building success strategies? Get Alan’s absolutely essential FREE Business Pack right now!