Is a used tire shop profitable?

[Gavin Kitzi]

I have the option to have a used tire shop put in my name. It's in the middle of town and quite a few customers come everyday. It does need a little renovation though. The particleboard roof tiles are trashed and it needs new lights. But it has machine(s). Not the newest machines but machines that get the job done. It needs to be cleaned too. Floor and walls. But it gets business. I just feel like it it had a little renovation itd be better but it needs in the thousands to fully renovate it. I'm just wondering if itd be worth it to invest in?

[Marcus Auerbach]

@Gavin Kitzi impossible to ultimatley answer your question, but here is what you can do: have your CPA look at the financials of the last years. Find the sceletons in the closets, looks for angry customers, issues with former emplyoee's, talk to the insurance agent etc. 

Find a contractor who can give you a ball park number (before you sign anything on the business, you want a firm estimate) on what you want to spend on upgrades. It will probably be more than you think. But people like a clean shop that looks nice and you will probably get more business. Also, can you add other services, new tires, oil change etc. Make sure you understand also, how much the machines cost and what will you do if one breaks and you need a new one? or a repair.

Ask your CPA to help you crunch numbers and projections, see what the worst case scenario would look like, what the best case could be.  

Also, do you want to own a tire shop?