Business

START OR BUY A RESTAURANT BUSINESS

By August 5, 2019 October 2nd, 2019 No Comments
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Will you start or buy a restaurant business. Follow the checklists in this article on how to start or buy a restaurant business to be successful.

Start a new restaurant business

  • What are the market demand and need for this product/service?
  • Can a market be created?
  • What is the level of competition?
  • Is the market growing, static or declining?
  • What is the anticipated selling price?
  • What are the costs involved in:
    • producing
    • operating
    • distributing
    • marketing?

What could the business yield in terms of profit and is that sufficient reward?

How much finance will be required and is it possible to acquire it?

What legal requirements will apply?

Is there any special experience or technical expertise required?

Buy an existing restaurant business

  • Why do the existing owners wish to sell?  Try to determine the real reason.
  • Have you had experienced business friends look over the business?
  • Have you looked at other similar businesses?  How does this one compare?
  • Have you assessed the competition?
  • Is the business in a good location?
  • Will the site, building and lease be suitable for your future plans?
  • Have you discussed the conditions of the lease with your solicitor?
  • Have you investigated all the relevant laws in your State pertaining to this kind of business?
  • Have you been given the statutory forms and trading figures for the past three years?
  • Have you seen documentary evidence to support the trading figures you have been shown?
  • Have you checked out the business with suppliers, customers and staff?
  • Have you checked the ownership and condition of the plant and equipment included in the sale?
  • Have you checked the value of stock included in the sale?
  • Is the figure asked for goodwill reasonable?
  • Are you expected to take over any liabilities previously incurred?
  • Will you need any additional equipment/fittings/renovations?
  • Have you checked the availability of supplies and credit from existing suppliers?
  • Have you obtained a quote for insurance cover?
  • Have you re-assessed the operating costs to reflect your way of running the business?
  • Do you know how much money you need to borrow and is it available?
  • Have you discussed all of the above with your accountant?
  • Has he or she verified the accuracy of the figures you have been given?

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