Northern Maine: taking over business (as an outsider) (Presque Isle, Caribou: lease, home)

[Snowmon]

I am kicking around the idea of taking over an established business in the Caribou/Presque Isle area. I have lived in PI since last spring, and so I am fairly aware of the issues of the economy here, and the long winters...I was here last April and couldn't believe all the snow still here!

Anyway it looks like there are some people on this forum w/long time experience in this area, and I am wondering how the folks up here would be with a newcomer in a long-established small business. So far I think the people are all quite nice, but not quite as welcoming as I would hope, I figure this may happen since we are from 'away'...I'm from NY state but have lived all over the US. Of course social activities are limited here, which doesn't help .

I do like it here though, I like the outdoors, the slower pace of life, all that, so that is why I'm considering making a go of it. My wife has a steady income, so we wouldn't be totally dependent on the business.

ok sorry to ramble...

[Northern Maine Land Man]

Service and stock are the keys. If you provide good customer service and convenient hours you'll be successful. Ask customers if there is something else you would like them to stock. This is true whether the business is hardware, cars, a restaurant or specialty shop of some kind.

[Snowmon]

That is true, thanks. Any general business start up advice is needed too, I am new at all this!

[kellysmith]

It's not unusual for a business to have two sets of books. One will be shown to you if interested in buying the business, the other is the actual bottom line of the business. I would have a discussion with the seller and ask if they have two sets of books. Based on how they squirmed when they responded, I'd weigh heavily in my decision making process. You probably will never see the second set of books, but if there is one, making the seller aware of the fact that you are not totally naive would be a benefit.
Other than that, it's like NMLM says. One other item is if it's retail, you will want to spend most of your time in the store. Even in the County, it's hard to get honest help if they see the boss never there. At least that's what I'm told. I've got a couple friends who have owned mom and pop type stores and they both said the help stole them blind. That's not a knock on the County, that's just the way it is all over I'm afraid.

[ljotis]

The county, isn't really the worry, though people will always try to lend out hands to their brothers and sisters that have been there forever and a day. The bigger the town, the better your chances of staying afloat, places like easton, mars hill, ect, are hard to keep business because of the small population and the generally older population that are "set in their ways" which will mean spending 5 bucks more on going down the road to see their old friend. Time and patience are both needed in starting a business there, but like she said, you may want to see bottom line, because alot of businesses in the county do go under, its hard up there, very little money floating around even between the farmers :P

[mommax3plus2]

i think that being from away could actually be helpful in a business situation in maine. my fil returned to his childhood home with a wife and children from away. having been raised here and understanding the 'clannish' nature of some of the old time rural maine communities he taught his family to stay neutral in all situations and not be drawn in by any one side of anything (and there are a lot of things) as they needed both sides in order to survive as a business.
the down side is that by doing this, although their business was very succesful, they never established any real friends, nor did they get involved with town affairs (politics, church, school) that may have offered them a chance at getting to know people a little better. although they know everyone, their closest (and i would say only) friends are seasonal people. i suppose they would be considered good people from away as they kept to themselves and never 'interfered' in the goings on in town, but not many have the desire to be alone in a crowd.

[AustinB]

Originally Posted by kellysmith

It's not unusual for a business to have two sets of books. One will be shown to you if interested in buying the business, the other is the actual bottom line of the business. I would have a discussion with the seller and ask if they have two sets of books. Based on how they squirmed when they responded, I'd weigh heavily in my decision making process. You probably will never see the second set of books, but if there is one, making the seller aware of the fact that you are not totally naive would be a benefit.
Other than that, it's like NMLM says. One other item is if it's retail, you will want to spend most of your time in the store. Even in the County, it's hard to get honest help if they see the boss never there. At least that's what I'm told. I've got a couple friends who have owned mom and pop type stores and they both said the help stole them blind. That's not a knock on the County, that's just the way it is all over I'm afraid.

Just a note... employee theft happens all over. Not all employees steal, but you always remember the ones that do!

[mainebrokerman]

depends on the small business, many variables....
have you talk to noncompeting owners of similar businesses?
what are the industry trends,,? especially during a tight economy

when looking at a business,,not only look at present sales, but take note of where to increase sales,,whether thru increased service or goods....also look at margins,,,sales mean little if they arent profitable,,,and research where the margins should be in the industry(alot of info online, also can look on bizcomps, an analysis, of similar businesses sold,,and criteria of valuating a business,,

some businesse owners ,,like the blue sky,, meaning,,they have not documented all funds,,yet the asking price of the biz, is based on what it "could" do.
banks dont go on thin air,,,

will the owner, hold a lease??

owning a business, is 90% attitude,,,,you need to be able to connect with customers,,
and as a business,,,you need to differentiate yourself,,,amongst the others,,,unique items or products, and advertising,,is a major key,,,

good luck!!!!!!!!!!!!!!!!

[Snowmon]

Thanks for all the posts, they have been a help!
It is a bit scary to consider this w/the economy, but on the other hand, if everyone sits and waits for things to get better...well you know how that goes.

About being there all day, that is great advice, I hadn't thought about it yet, but I know what you all mean. I worked at a candy shop in high school, and though I would never steal anything, I ate a lot of profits I'm sure- the owner was never there.

I have another question though, is the population around Caribou/Presque Isle growing or shrinking? I can't seem to get a straight answer to that, everyone disagrees or is comparing the downtowns to some idea of what is was like when they were kids.

Thanks!

[kellysmith]

Snowmon,
I would say the population of PI/Caribou has stopped the decline and if anything has increased a little over the past few years. It's funny, some friends and I had a discussion last evening about the size of schools in the County. Schools are now ranked A, B, C, and D as to size. It used to be LL, L, M, and S. I can't rememeber the cutoff for a school to be Double L, but it was somewhere above 500 I think. Well, back in the 60's, Fort Kent, Madawaska, Limestone, Fort Fairfield, Presque Isle, Caribou and Houlton were all Double L schools. (classification for sports). Currently there are no A schools in the County (an A school is what used to be considered Double L)
With that said, the population Countywide has dropped substantially. But as I said earlier, I think it has bottomed out and turned the corner a little. More and more you see folks moving in that want to get away from the rat race. I actually think 911 was the turning point as more and more folks are looking for rural lifestyles.