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Other Added - Tips and Traps When Buying an Existing Restaurant Business
Distributorships that dominate the world of distribution by always performing in the upper quartile of their industry and those which will play an even greater role in the foreseeable future generally have characteristics that often create a large and incredibly complex set of independent relationships between highly diverse groups of people. Problems with staffing and retention often apparent in their counterparts, the lower quartile performers, may not be due to bad hires or a low unemployment rate. In fac
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on wha
Customer service is an integral part of our job and should not be seen as an extension of it. A company’s most vital asset is its customers. Without them, we would not and could not exist in business. When you satisfy our customers, they not only help us grow by continuing to do business with you, but recommend you to friends and associates.The practice of customer service should be as present on the show floor as it is in any other sales environment.The Ten Commandments of Customer Service
Here are ten things to take into account when buying an existing restaurant business:
1.Be sure you find out everything you can about the location. Has it been a restaurant for a long time? Does it have enough parking? Can you get a good lease (the lease shouldn't be more than 10%, and preferably 5% or less, of the gross sales)? Is it secure? Does it meet permit requirements? One of the biggest problems new restaurant owners face are undisclosed issues with the building or landlord, or a lease that is impossibly high.
2.Verify the current business is doing the sales the owner claims. Most independent restaurants have terrible books, and often the owner won't disclose their tax returns, because they are underreporting their income. It is very difficult, therefore, to know exactly how much business they are doing. If you never see anyone in the place, however, and they are claiming great sales, you should be very suspicious. You should be using a restaurant specific financial projections tool to help you estimate all your startup and operations costs, such as the one available from www.restaurantfunds.com.
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on wha
For the most part, Christian motivational speakers concentrate on two areas that may overlap. The first is spreading the gospel. This does not mean that they are training for the priesthood. It means that they apply the Bible’s teachings to anything and everything going on in the world today and they speak about it at whatever opportunity arises.In the past several years, with the country leaning more and more to the right, popular radio and TV shows have sprung up, and Christian motivational speakers
1.Be sure you find out everything you can about the location. Has it been a restaurant for a long time? Does it have enough parking? Can you get a good lease (the lease shouldn't be more than 10%, and preferably 5% or less, of the gross sales)? Is it secure? Does it meet permit requirements? One of the biggest problems new restaurant owners face are undisclosed issues with the building or landlord, or a lease that is impossibly high.
2.Verify the current business is doing the sales the owner claims. Most independent restaurants have terrible books, and often the owner won't disclose their tax returns, because they are underreporting their income. It is very difficult, therefore, to know exactly how much business they are doing. If you never see anyone in the place, however, and they are claiming great sales, you should be very suspicious. You should be using a restaurant specific financial projections tool to help you estimate all your startup and operations costs, such as the one available from www.restaurantfunds.com.
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on wha
How well do you look after your customers? Most companies probably think they do a good job, but the addition of technology into large, national call centers has caused many organizations to focus on technology solutions as opposed to people solutions.1. If your call center uses a feature where a customer can leave a number where they can be reached by the next available customer service representative, turn it off and hire more customer service representatives.2. A call center manager must re
2.Verify the current business is doing the sales the owner claims. Most independent restaurants have terrible books, and often the owner won't disclose their tax returns, because they are underreporting their income. It is very difficult, therefore, to know exactly how much business they are doing. If you never see anyone in the place, however, and they are claiming great sales, you should be very suspicious. You should be using a restaurant specific financial projections tool to help you estimate all your startup and operations costs, such as the one available from www.restaurantfunds.com.
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on wha
The CEO of a company represents a company’s culture. Important –- regarding change -- is whether the role of the CEO is more that of a manager who is safeguarding the current culture or one who is leading a (cultural) change.The difference between leading a company and managing the same is not a secret. Leaders take the lead and come (up) with a new direction. The manager is the custodian of the (new) direction. Let’s take Google as an example. Larry and Sergey were leading the company (before it made
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on wha
Who should apply for a credit card merchant account online? Why, you should, of course, if you want to grow your business and maximize sales volume! In this day and age, more and more business functions are moving into cyberspace, which means that business owners must be ready to travel to this relatively unknown domain if they want to maintain strong customer ties and stay a step or two ahead of the competition. Don’t worry if you’re not Web savvy; most online processes that are geared to the general consum
3.Make sure you understand what your actual payroll costs will be. The current operation may be profitable because the owner has his family working for free, and the employees are paid under the table. Don't base your figures on what the current owner is doing, base it on what it is actually going to cost you to run, then see if it still makes sense.
4. Figure out where the customers are coming from, and make sure you will continue to get them and can grow the business. If the location is maxed out, or if the customer base is likely to go with the current owner because they are mostly friends of his, find that out ahead of time.
5.Be wary of owners that require all cash buyouts. If they aren't willing to take at least a reasonable portion of the price of their business over time, it may be because they know something you don't about your chances of success once the deal closes.
6.Get the owner to sign a fair non compete agreement. You don't want them to open a new place right down the street from the place you just bought using the money you paid them, and then have them take all the business you thought you would be getting.
7.Find out how seasonal the business is going to be. It may look great during the summer tourist season, but turn out to be a money loser the other nine months of the year. Talk with other owners in the area, and try to get at least bank statements showing deposits going back a few years so you can see what the sales trends are going to look like for you.
8.Figure out ahead of time what kinds of terms you can get from the vendors who supply the food. This is going to ma
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