Buying a restaurant takes more than just enthusiasm—it takes a whole lot of careful planning and forethought. While there’s no shortage of steps before you reach the finish line, there are a few you can take early on to help ensure that your path is a smooth one.
Here are four things you can do to prepare for a restaurant purchase…
1) Look into financing options
Will you buy all of your equipment? Leasing and financing may be a good option, depending on your circumstances. The monthly fees are often quite affordable, and payment plans can be spread out over a relatively long period of time.
When it comes to financing your restaurant, will you use a business line of credit (which is flexible and allows you to pay back only what you use) or a more traditional business loan? Being able to cover your startup costs is a huge part of a restaurant purchase, and it requires a lot of consideration.
2) Think through the type of business you want
Before delving into a restaurant purchase, you’ll want to think long and hard about what type of business is right for you. For example, if you buy an existing restaurant, you’ll have a strong foundation and a lot of your permits in place—plus, it will likely take you less time to open.
Franchises are another way to go. They provide extensive support, brand recognition, and the peace of mind that comes with knowing you’re buying into a successful business model.
Of course, if you’re starting from scratch, you’ll have the ability to customize absolutely everything about your eatery. Unfortunately, this can be one of the most challenging paths to take.
3) Put thought into your location
You may think you know exactly where you want to set up shop, but it pays to keep an open mind. There’s so much more to choosing a location than simply settling on an area you like.
From foot traffic and visibility to parking and the types of businesses nearby, there’s a lot to keep in mind. In other words: your restaurant location is far from an afterthought, and it deserves some serious thought.
4) Do a ton of research
Do you know all there is to know about commercial leases? What about liquor licensing? Do you understand all the regulations and bylaws that pertain to eateries? The truth is, opening a restaurant is an incredibly complicated endeavour.
Fortunately, you don’t have to do it all on your own. By assembling an ultra-helpful team (which should include the right business broker, legal representative, and financial advisor, among others), you can help ensure that you’re well-informed for one of life’s biggest purchases!
RAMPING UP TO MAKE YOUR RESTAURANT PURCHASE? REACH OUT TO LEARN HOW I CAN HELP AT EVERY STEP!
