Buying new or existing? You be the judge

(07 /05 /2012)

The place is humming and packed to the rafters. Come on, let’s buy it.

But how many times have you seen after a takeover that a busy restaurant or café becomes lifeless?

Yes I have heard that you inherit the staff, the reputation and the formula for success.  But there is something you will never get and that is the soul and vision of the previous owner.  The way they looked after their customers and staff.  The whole experience came from how their business was managed.

Also what do you think you can do to improve the profits if the place is running right you are already full and busy? Many first-time restaurant owners buy these busy, well operated restaurants when they become available for sale. Premium costs are paid for businesses that running well. After the changeover challenges are often experienced impacting the businesses profitability. As a result a return on investment can take significantly longer to achieve.

Start new, put your own mark on the place.  It is far more cost effective to find a closed down place with the entire gear ready to go, just turn the key and start. Always remember that the landlord with and empty space is more inclined to help you start, than the one with the busy operation already happening. The person who has the least amount of emotional involvement in these deals always wins!

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