Business advice?
Registered User
Joined: Jan 2002
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Take a week off and just sit in a corner of the restaurant all day to see for yourself how much money is pulled down a day.
The numbers say it could be profitable but are the numbers correct and I didn't see any money for YP advertising or any promotional $$ at all.
The "all cash business" ploy is pulled quite often to inflate the income.
Chinese can be quite lucrative since it is such low overhead (food wise) but what happens if the cook quits. Can you run it?
The numbers say it could be profitable but are the numbers correct and I didn't see any money for YP advertising or any promotional $$ at all.
The "all cash business" ploy is pulled quite often to inflate the income.
Chinese can be quite lucrative since it is such low overhead (food wise) but what happens if the cook quits. Can you run it?
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Joined: Jan 2004
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From: Minneapolis, MN
Originally Posted by Incubus,Oct 31 2006, 07:47 PM
If I could make $100,000 with a business in 1 year, I would NOT be selling it for $45,000. I would hire someone to run it rather than sell for that price. The numbers don't match. Also, find a bank that will give you $20,000 to buy a business that has no books.
Joined: Oct 2000
Posts: 17,288
Likes: 39
From: Nashville
Originally Posted by Wildncrazy,Nov 1 2006, 09:08 AM
Take a week off and just sit in a corner of the restaurant all day to see for yourself how much money is pulled down a day.
The numbers say it could be profitable but are the numbers correct and I didn't see any money for YP advertising or any promotional $$ at all.
The "all cash business" ploy is pulled quite often to inflate the income.
Chinese can be quite lucrative since it is such low overhead (food wise) but what happens if the cook quits. Can you run it?
The numbers say it could be profitable but are the numbers correct and I didn't see any money for YP advertising or any promotional $$ at all.
The "all cash business" ploy is pulled quite often to inflate the income.
Chinese can be quite lucrative since it is such low overhead (food wise) but what happens if the cook quits. Can you run it?
you beat me to it!
A week should give you a pretty good idea of what kind of $ is coming in, etc....
goodluck.
ps.... i thought I wanted to run an already established conveince store, but decided for various reasons that I didn't. They claimed it netted $80k per year but had no tax returns, bla bla bla...... was selling it for $100k..... #'s didn't work out....
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Joined: Mar 2001
Posts: 2,535
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From: seaforth, sydney, nsw
i have no doubt that the culvers stores do that. thats about $40k a week. about right for a restaurant that opens day and night. but u seem to forget the original intention of this thread, the guy wasnt looking at buying that type of business, he wasnt looking to spend over $3million dollars, and i doubt that he would want the logistical matters that comes with running a restaurant of that magnitude.
also, it seems that although u may turn over $2mil, it also looks like u need to buy a lot of inventory off culvers, reducing ur profit margins.
im not dismissing franchises, they r a good opportunity for people without any knowledge, but speak to anyone that has owned a franchise for more than 5 years, and i guarantee u that 99% of them would say that knowing what they know after that time, they would never do it again. franchises suck the life out if u
also, it seems that although u may turn over $2mil, it also looks like u need to buy a lot of inventory off culvers, reducing ur profit margins.
im not dismissing franchises, they r a good opportunity for people without any knowledge, but speak to anyone that has owned a franchise for more than 5 years, and i guarantee u that 99% of them would say that knowing what they know after that time, they would never do it again. franchises suck the life out if u
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Joined: Nov 2002
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From: Monteagle, TN
I would say, that restaurant makes about 35-40K net per year.
Note: remeber to always observe any business for a good period of time. Basically work for free for the current owner. That way you get trained at the same time as verifying the actual gross.
Note: remeber to always observe any business for a good period of time. Basically work for free for the current owner. That way you get trained at the same time as verifying the actual gross.
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Joined: Jul 2005
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From: Your mom's house, AZ
No books, no deal.
Given the limited info available, the price is too low. Something's amiss here. Maybe the lease is up soon or their is some big repair being put off. Assuming everything is on the level this place should be offered for 3-5x that much.
Offer to buy it if the owner will carry 100% of your loan, zero down. That'll force his hand.
Given the limited info available, the price is too low. Something's amiss here. Maybe the lease is up soon or their is some big repair being put off. Assuming everything is on the level this place should be offered for 3-5x that much.
Offer to buy it if the owner will carry 100% of your loan, zero down. That'll force his hand.