An FSBO website can do a lot to educate you on businesses for sale in your area. Even if you’re not ready to buy yet, these directories will give you an idea of how much you can expect to pay. Buying a business for sale by owner doesn’t mean that you must go into the deal without a broker’s advice. The seller is simply representing himself on his end of the sale. It is not a good idea to buy any type of business without the help of a lawyer and a financial advisor, preferably the kind that know a lot about your industry.
With a restaurant or bar, there is certain equipment and licensing you will need in order to do business. Depending on whether the establishment serves alcohol, you may also be force to pay for expensive liability insurance. For people that are new to restaurant ownership, a broker can do a lot to help ease their anxiety and ensure a smooth transition for owner-operators.
Finding a Restaurant on an FSBO Website -
Before you start clicking away on the listings on an FSBO website, ask yourself if running a restaurant is what you really want to do. This is not an easy business to break into, and unless you’ve managed a restaurant in the past, there is a lot you must learn. Many entrepreneurs choose a restaurant or bar business because they like the idea of it and they think it’s somewhat glamorous, but the day-to-day work involved in running a successful eatery can be exhausting at best.
Ask yourself how much you will enjoy managing the books and dealing with cash. Most restaurants are “cash businesses” and they run at a fast paced, so it’s easy to lose track of your cash expenditures unless you have an easy bookkeeping system in place.
A broker can help you uncover any potential problems with the business by reviewing the most recent inspection reports, hiring someone to look closely at the equipment, speaking with patrons and employees, and looking at the economic realities of the neighborhood.
This may seem like a lot of work just to buy a small business, but every minute you spend in due diligence will be useful at the negotiation table. To begin your search for that perfect restaurant business - look no further than the FSBO website at BizSale.com.