Everyone needs to eat to live, and over time we’ve established a habit of making this process a social one. As such, a restaurant for sale is one of the most popular businesses to buy, and one which may represent an even more attractive purchase proposition if you have a particular taste for a certain type of food!

Conduct due diligence when looking to buy restaurant business even though your heart, or even your stomach, might tell you that this is the vocation for you. This industry is very competitive and there are many elements you want to consider. Allocate a period of time, experts recommend four weeks, to observe the operation of the business. This should enable you to get a good feel and to smooth out any peaks or troughs before you make your final decision.

You have several key areas to investigate including the premises, the financials, the equipment, lease, the operations and the employees. Do not be afraid to bring in experts, including an accountant experienced in the food business to help you, but as you go through your observation period, use your general business sense and a good portion of common sense to observe how everything works, especially from a client point of view.

For your paper and number crunching chores, expect to review the tax returns, profit and loss statements, cash flow worksheets, inventory records, employee records, equipment agreements, maintenance schedules, all necessary licenses, health inspections certificates and a history and copy of the lease.

When reviewing the financial documents, it’s essential to keep in mind that the restaurant business has a large volume of cash sales. Surprisingly often, many business owners decide to siphon off some of this cash for themselves, not reporting it to save on taxes. Over time this is not a good practice as this money could have been used for marketing purposes, and when it comes purchase business assets, it can be very difficult to prove income and therefore worth.

When you are inspecting the property, look at it from an overall perspective as well as in detail. Can it be adequately seen from nearby major roads, is signage appropriate, well-maintained and presentable? Are there any other major competitors and are they overbearing? What is your first impression when arriving in the parking lot? Take a look at external dumpsters and trash removal areas to make sure that these are as well-maintained as possible and are unobtrusive.

Moving inside, what is your first impression of the decor. Is the waiting area pleasant and contributory to the overall ambience? Is there adequate signage for bathrooms, emergency exits? Pay close attention to the bathrooms. They should be in perfect working order, comfortable and impeccably clean and well-maintained. In a restaurant, everything, repeat everything should be clean, presentable and in full working order.

Most of the equipment contained in a restaurant and specifically within its kitchen is subject to certification, inspection and permitting. Check to see that this is all up-to-date and timely. While every element of the equipment should be operated according to the letter of the law, you must also ensure that regular maintenance and cleaning schedules are top-notch. For major items and appliances, see whether contractor warranties are available and can be transferred to you.

Very often a lease can be a potential stumbling block when looking at a restaurant for sale. The landlord will want to ensure that the business is being operated as efficiently as possible and may be wary of transferring or issuing a new lease to someone who does not have much experience. Look for terminology within the lease stating that transfers will “not be unreasonably withheld,” and aim to ensure that you get at least as favorable terms during your tenancy. This would be a good time to assess the overall viability of the environment within which the business operates. If in a strip mall of some kind, are the anchor stores in good shape and do the majority of other businesses also appear sound? You do not want to see an anchor store disappear and the overall visitor level to the area decline.

When you analyze the operations of the business, you want to learn how the current owner operates and whether there are any immediate issues or challenges that you will have to take into account. Look closely at any “special arrangements” or unique selling points that involve a particular individual, a style or presentation of food. You want to be sure that these elements are transferable or will be present when you take over.

A restaurant will likely rise and fall on the strength of its employees. While you can expect a high turnover in any kind of restaurant, if you see some loyal staff and a good “team spirit” this can be a definite plus. Check to see how people are hired, the terms and conditions offered to them and exactly how they are paid.

While you should insist on an observation period, before you are involved in formal discussions with the seller why not kill two birds with one stone and visit the restaurant for a few nice dinners or lunches with other companions? You don’t have to show your hand at this stage and can get a really good feeling by observing how the staff come and go, the operation within the kitchen ideally and in general get an opinion of whether everything is orderly and well-structured during the busiest times.

Richard Parker is the President and founder of the prestigious Diomo Corporation – The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.

Mindfreezer

Attention Internet Marketers – what you are about to witness is the shocking truth about Mind Freezer. Allow me to present the truthful facts that they did not want you to know. I’ve done all the dirty work for you. Luckilly for you all you have to do is pay attention… We have all seen the ‘overhyped’ products out there. Everyone claims that they have next big thing. Everyone claims that ‘using their simple’ system, you life as a marketer is going to change dramatically. It’s hard to point out the good from the bad even for me. Sales pages are getting more and more convincing by the day… But since i have nothing but time on my hands, i try them all! Here’s my honest review on the Mind Freezer Cash System

This course is honestly one of a kind. This training is stupidly simple.. that’s the funny thing about it. The stuff actually works, and he explains it in a way that even a toddler would understand. I’ve been marketing and writing reviews for quite a long time now and it’s not too often that a ‘guru’ teaches or tells me something that i dont already know… But honestly enough, this course has a lot of new material that even the most advanced marketers would find interesting. It is hard to stress how much everyone really needs this course. But the bottom line is, it is insanely powerful, yet tremendously easy. I’ve never said this abut a program before, but the results are almost guaranteed.

One thing I really like about this course is that they teach it as if you’re a complete beginner, and they gradually work their way to a more advanced level. He literally spoon feeds you everything there is to know. So even if I had no clue at all about internet marketing, from this course alone I would have everything i need to know, and it will put me far ahead of the game.

However … (this may turn alot of you away) if you’re looking for a magic carpet ride, this is not it. Good results are not going to happen magically, YOU have to make it happen. In this guide Imran gives you all the resources and everything you need to make it a great success.. it is then up to you to apply it, and put in the necessary work to make it happen (which in this case, it shouldn’t be too hard to do). So if you are to take part in this training, please do not sign up with the intensions of getting a ‘get rich quick scheme. ‘ Although it is possible, that is not what the Mind Freezer System is about. People with that type of mindset are not going to last long, thats guarantee. If you are serious about making money online, dedicated to internet marketing, and ready to take it to the next level, then the Mind Freezer System is going to be the best fit for you. If you aren’t then i strongly suggest you try something else.. Tough

I really recommend this training to anyone who wants to make an easy, decent amount of money on the internet. Because we all know that the best way to make this happen, is to get an insane amount of traffic. Without traffic, you dont have anything. Without traffic your website is just taking up space on the world wide web, for nothing, right? You have to be able to reach people.. People have to know you exist. And the more your site appears on someone’s screen, the more money you’re going to make, point blank.

He also gives out a lot of ways to get ‘Targeted Free Traffic’ which is extremely important. If you know anything about marketing, then know that you can be extremely profitable with targeted free traffic.. You can’t lose. Check out my full Mind Freezer Review

This is a Must See Course If you want success online, the Mind Freezer System will be your best investment. It’s pretty much guaranteed to make an easy impact on your website traffic. Which means a HUGE impact on your profits. So come claim your spot on the team and get aboard. I promise you wont regret it.

Mind Freezer

The process of gas station valuation can be a tricky business. Quite apart from the question of how you approach the actual valuation itself, you have many variables to take into account including principally whether the property is leased or owned and whether it is owned or part of a franchise agreement with a major oil company, for example. Above all else, remember to conduct a proper process of due diligence and pay particular attention to financials when trying to arrive at a good value proposition.

As an individual looking to buy gas station business, you must be prepared to make certain assumptions and decisions yourself and not to rely on the often partial information supplied by the seller. When all is said and done, it’s up to you to determine what the business is actually worth to you personally, as in most cases, the amount the business owner believes the gas station is worth rarely has anything to do with its real-world value.

In a traditional sense, there are usually two principal ways of looking at gas station convenience store valuation, and these are generally asset-based, where the income-producing assets are valued and totaled individually to reach the buy business price, or cash flow based, which is by far the most popular. In this particular instance, the overall profit is adjusted in relation to specific expenses, multiplied and then used to reach a price. The multiple is essentially the premium placed on the business and can be anything from one, up to five times this figure.

Before you can arrive at a value that you are happy with, you need to have certain fundamental questions answered. If the business occupies rented property you must engage with the landlord. Often times, landlords aren’t interested in setting up a new leases unless they’re quite confident that the new tenant has a significant amount of experience operating this particular kind of enterprise. However, even though they may have concerns about a potential new tenant, they are almost always willing to negotiate, as the idea of seeing their property sitting around empty is quite hard to accept!

As an owner of a gas station and convenience store you will have many different suppliers and vendors, some of which are absolutely critical to the ongoing success of the business. Never assume anything and make sure that you can enjoy an ongoing good relationship and great trading terms with these entities.

When it comes to cash sales, if the seller cannot prove it then you cannot include it as part of your value assessment. Some gas station owners will pride themselves on the amount of cash sales and put this to you as almost something magical. Remember that they have benefited from not paying taxes on this income, almost always cannot prove that it exists and cannot expect to therefore earn a premium from it.

Most often you will want to consider using the total owner benefit as a base to create a valuation for the business. This is defined as the net income of the business added to the owner salary, any perks, depreciation and interest less any amount that you might have to put aside for capital projects assessed. With regard to average business valuation, gas station or convenience stores that are full service will often command 2 to 3 times whatever the owner benefit figure it is. If it is a smaller establishment and self service, 1 to 2 times. Consider the volume of trade versus the amount of hours that you will have to put in. A 24-hour, seven-day a week establishment takes a lot of management and oversight.

While business financials and owner benefit multiples are primary to your decision-making process, remember to consider a host of other variables:

• During the process of observation, use a period when you actually count the number of patrons coming in and out of the station to enable you to come up with a good average for traffic.

• Remember that you should aim for between 25 and 33% return on your cash investment when purchasing a business such as this, although if you are going to be an absentee owner you should be prepared to accept a lower return.

• Watch out if the owner appears to be working excessive hours or is reliant on a number of his family members to help him staff the operation. Pay attention to employee records and costs and ask yourself whether you are prepared to be as hands-on as he appears to be.

• Consult with local authorities to see if there are any major road construction projects planned. Sometimes these are inevitable but can have major disruptive forces.

To really focus the attention of the seller as you establish a value for the gas station for sale, why not ask him or her to engage in an “earn-out” scenario, where a portion of the sale price is returned to them over a period of time subject to certain conditions. This will ensure that you have their full attention during the disclosure phase!

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.

When looking to buy liquor store business, the process of due diligence goes way beyond just an assessment of the presented financials. It’s essential that you’re able to readily access all the necessary documentation, review information and research personnel as you carefully verify every detail of what you’re being told. It is recommended that you allocate at least four weeks for this process and do not be tempted to rush to judgement. Some issues may only come to light over a period of time and thus you should proceed carefully.

There are some decisions that you can make about buying a liquor store business before you immerse yourself fully in the due diligence process. While you may engage in a lot of number crunching and foot work as you go forward, is there anything that you have learned about the industry to this point, or about this specific business, its location or its owners thus far that should give you pause for thought? If for instance, you’ve already seen that the financial documents are incomplete for reasons stated by the seller, or the general condition of the store or its assets aren’t to the standard you had been led to believe, inventories are not complete, certificates, inspections or licenses are compromised for whatever reason – all are very good reasons for you to move on and start looking for a better investment elsewhere.

For a process of due diligence to be complete, you will need to concentrate on seven different areas:

1. The Premises.

We’ve already covered the crucial importance of allocating not less than four weeks to this endeavour, and you should reach an agreement with the seller for this set period of time so that you can personally observe the day-to-day operations of the business. First of all, you’re going to need to assess the inside and outside of the place of business and figure out a rough estimate of what you might need to pay out to replace, repair or upgrade. Don’t forget that the attitude of the employees is extremely important when it comes to the potential success of any retail business, and therefore you should immediately look into how the current employees interact with the customers. Are they always personable, attentive, prompt? Personal issues or conversations should not be apparent. Ask yourself whether the store looks good, has a good ambience, appears fresh and clean, has well-maintained restrooms and break areas and is generally spick and span.

You must also ensure that you are happy with the general location of the business, the surrounding stores, the type of people who frequent the area, the accessibility and especially beware of any pending major road construction in the area as this often has a significant bearing.

2. The Financials.

As a minimum, you will need to review the profit and loss statements, the balance sheets and tax returns. You would do well to employ the services of an accountant who is experienced in the liquor business to help you here. Look at all the supplier invoices and reconcile them to revenues. This may be a time intensive process but you will be able to determine your margins this way. Be very aware of any transactions that involve cash, especially if it involves your suppliers. You will need to get written confirmation from the suppliers of their ongoing terms.

Remember some of these industry benchmarks:

• gross margin should be between 24 and 28%.

• rent should be 7% of revenue maximum.

• product mix should be up to 70% liquor or up to 40% wine.

• labor should represent 5 to 7% of revenue.

• net profit should be 8 to 12% of revenue.

• inventory should be turned over between eight and 10 times per year.

3. The Equipment.

All equipment and furnishings should be in adequate working order and not in immediate need of repair or replacement. As such you should review all the maintenance and service records and look for yourself to see if all refrigeration cases are clean and well-maintained and all other equipment is well looked after.

4. Vendor Agreements.

Your wholesalers and suppliers are absolutely essential when you purchase liquor store business assets and you must get to know them well during your due diligence. Can arrangements be transferred to you or will you have to make new ones? You do not have to be prepared to settle with the existing suppliers or vendors and you should really investigate as many options or opportunities as you can. You may, for example, see better terms elsewhere and this knowledge will be great ammunition when you come to negotiations and peace of mind.

5. Lease Contracts.

Always be sure the lease is transferable or that there are no obstacles ahead of you. You must be able to assume or acquire a long-term lease before proceeding.

6. Operations.

It is likely that you will need a number of licenses and this should be a particular area of concern when it comes to a liquor license. Sometimes these may not be assigned or transferred or other onerous terms may be set by jurisdictions.

Go through the daily procedures from opening time to closing time; who has access to keys and alarm settings? Does the business have a procedure for emergencies of any kind? Ask the seller to provide you with an optimal inventory level. Ensure that you review all insurance certificates and be adequately covered for all eventualities. You will need to talk with credit card processors and merchant banks and be prepared to move to access better rates if necessary.

7. The Employees.

As this can be a significant cost and liability area, be focused here. Check each member’s compensation, especially if there’s any possibility of cash being paid “under the table.” If you see that there is a high turnover of employees, ask yourself why. Is there a procedure in place for training? While the seller will often be wary about letting his employees know that the sale is in process, you nevertheless need to analyze each employee individually, assess their loyalty and competence and adjust your plans accordingly. Understand that certain procedures may be quite traditional to them and you should ask yourself how you feel they will react if you need to make significant changes. If one or more employees are absolutely critical to your success, you will need to meet with them prior to consummating a contract.

When you find a liquor store for sale, if you conduct your due diligence correctly you will have the opportunity to see exactly how the business ticks, and you won’t be in for any surprises when you take over.

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.

Anyone wanting a website of their own whether for personal hobbies or for business purposes has to consider a lot of things. Using a web server hosting service is one of the first things that you have to consider in order for you to maximize your potential profits. Finding a ..

Source: Internet