Working in the restaurant industry can be a tough job. If you have worked in this industry first hand, then you know that they do not always treat entrepreneurs with the nicest of manners. Most of the time many entrepreneurs realize that after they have had a somewhat successful coming up within their franchise that once it is out there for all the world, they can sell their restaurants and make a pretty penny.
You may be in a financial bind, or you may want to lead yourself into a new opportunity with your entrepreneurship. No matter what the case may be when you sell your business remember these few tips and guidelines to help you along!
Realize just how much your restaurant franchise is worth!
When someone is looking to invest in and buy your restaurant, they will want you to lay out all the financial situations right on the table for them even if you have negative things to say. If you have just decided you want to sell your restaurant you do need to allow, yourself to order all the financial data you have regarding your restaurant together and in place. Make sure your profits and the offerings for your business(es) have been bolstered. When looking to buy your franchise or business investors want something that has had a lot of high-quality sales and has cash rolling in with a steady roll in rate. When you try selling, remember you want to show the potential buyer that your place is worth the risk and that your business has a lot of potential within it. Make sure you lower prices so cash can flow in more frequently before you have your business placed on the market. When trying to sell a restaurant it may take almost six months if not longer to finally sell your business which means you can increase your profits significantly before the sale happens and cut certain costs out of the scenario, so your business is rising and is on top of everything.
You do need to realize depreciation will always be involved with any assets inside your company. This could mean anywhere from the food equipment all the way down to the technology you use within your restaurant. Over time everything will eventually start to drop within the second that you purchase it and have it placed inside your building and installed. After this happens, the value of your assets within your company may take a hit and drop a little. With all that being said you need to make sure you have a fair price selected when selling your business to the buyer or potential buyer.
2. Selling your liquor license off
You have assets to your name even when your business starts to go out of business so keep that in mind. If you have a liquor license, this holds a lot of value of course, depending on your location that is. Whenever you close down your restaurant or business, you run your license will become inactive but can be resold to a potential buyer. A lot of others choose to go through services of liquor license brokers such as Licence Locates Inc. to not have to worry about all the extra added stress. You will essentially have to pay the providers with a certain price of a fee, but it is “usually always worth investing in because they can help you figure out a fair price with the current market guidelines.” says Robert Ferguson, a Vancouver restaurant broker.
3. Use a Restaurant Real Estate Specialist
When you want to snag a deal and list your company with a potential buyer, you would be smart to go through using the help of a trained professional real estate business brokerage. Brokerage professionals will be able to share where the market is currently sitting at and where it may end up. They also know where and how to find the best potential buyers and understand the restaurant business a lot better than most which will be helpful if you’re trying to sell the business and keep it up and operating while doing so.
4. Vamp up Curb Appeal
You need to make sure the exterior and interior of your building is spotless and appeals to the buyer. You want the buyers to see the outside and think to their-selves how inspired they are to now check out the inside. The physical condition of your building is just as crucial as the financial situation your business is in at the given moment. Make sure you have professional painters come out and repaint the surfaces of the indoors and outdoors of your restaurant. Also, you need to make sure all windows are fixed or replaced, do not have any trash on the curbs or within site of the building. The interior needs to be spaced nicely but have things set up in an orderly fashion to let potential buyers picture the way they want certain things.
5. Sell as a Commodity
Do you feel as if your restaurant is thriving and living up to your fullest expectations? The staff you have hired are they loyal to your restaurant and towards you? The furniture within the building is it all still intact and not damaged and makes your reservation list stay open or do you always fill up as soon as the one spot empties? If so then you may be better off to sell the restaurant as an entire asset to another person or potential buyer because sometimes if a person is looking to run and own a restaurant they may not want to start from scratch. This will give them the upper hand to be able to continue where you left off and knew they will for sure have a great staff to work with, loyal customers, and a menu already built and ready to go.
If you want to sell your restaurant as a business you need to realize that this process may be very long and drawn out but no doubt with these tips you’ll be able to make a very profitable sale once the direction is all the end goal is all figured out.