Business Overview

RESTAURANT BUSINESS FOR SALE
HIGHLIGHTS
• 1,200 SF restaurant with basement space as well
• 38± seat capacity with additional outdoor seating
• Great opportunity in a highly sought-after location in town
• Turnkey operation with all FF&E

Financial

  • Asking Price: $99,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the true reason and the one they say to you might be 2 totally different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of other reasons. This is why it is extremely vital that you not depend entirely on a seller's word, however rather, utilize the seller's response in conjunction with your total due diligence. This will repaint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that earnings margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be met or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in brand-new consumers? Most times, companies have repeat consumers, which create the core of their daily revenues. Particular variables such as brand-new competition growing up around the location, road building and construction, and also personnel turnover can influence repeat customers and also adversely influence future revenues. One essential point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the greater the chance to develop a returning customer base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the local median family income effect future income prospects?