by Leigh Goessl

Created on: August 24, 2008   Last Updated: June 16, 2011

Convenience stores are a lucrative opportunity to consider if you are looking to run your own business. If you are thinking about purchasing an existing convenience store, there are a few things you should consider before you buy.

You'll want to learn all you can about owning a convenience store and if this is your first time it might be a good idea to network with other convenience store owners to get their perspective. Talking with people, preferably successful ones, is a great way to gain some insight. You may even find one willing to act as your mentor.

• Nuts and bolts of purchase
As you embark upon your journey to running your own business, there are several things you'll need to do. You'll want to establish a feasible business plan. When you start up any business, it's smart to establish a business plan which outlines your strategies, market analysis, projections, niche market, competitive analysis and any other constraints.

Convenience stores come in many shapes and forms. For instance some have gas stations, others do not; other stores are linked with a brand name such as "Subway" or "Baskin Robbins" as a service and you want to take this option into consideration and the details involved in this kind of partnership.

Next you'll have to look at the financial particulars. Do you have enough money to make a down-payment? How much will you need to borrow? You will undoubtedly need to get a lender to invest in your business and you will have to demonstrate you meet the criteria and can afford to pay back your loan.

• Franchise vs. independent store
When purchasing an existing convenience store you can opt to buy into a franchise or run an independent establishment. If you choose to go the franchise route, you will have to examine the chain's requirements and see if you meet their personal and financial criteria in order to apply to become a franchisee and buy from the current owner.

There are pros and cons to franchise vs. independence. If you buy into a franchise, you have the ability to capitalize on an already established name, but you also will be held to maintain specific standards and have to pay royalty fees to the corporation. In the independent convenience store you have the freedom to carry any kind of products you choose and any profit you make is yours to keep. The con to this is you will have to establish your own reputation since you aren't linking your business to an already well-known and publicized name.

If you do decide a franchise

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