Purchasing an existing business?

[Speedcorp]

Hi everyone!

This is my first post, I stumbled upon the site a few days ago so I have not read the book yet. I'm looking forward to exchanging ideas with everyone and hope I can help others some day.

I'm currently putting a rough business plan together for my first project which I call 001 (one of many).

I am thinking of buying a great Italian restaurant in a busy business district. It has been operating for 8-9 years. It's not for sale on the market but I know for a fact the owner would sell. The food is great and I have inside knowledge of the place. My offer would include the building which has 2 apartments on the second story (It might be difficult to convince the owner to sell the building). No building = No go.

Goals:
-Increase profit margin on restaurant
-Gain experience
-Length of investment could be short or long term

Facts:
-I plan on purchasing with 3-4 partners, all close friends/family (I know, I know..)
-The current chef would be a partner and manage the kitchen, he is a close friend and very talented (I know good food)
-Another partner would be the maître d'hôtel (currently in another restaurant, he has experience in restaurant management as well
-My role would be risk management, building/equipment maintenance, project organizer, etc..I have contacts in many types of business's due in part to my current job and have a very smart and talented mentor which has helped me a lot. I have worked in several restaurants in my early twenties.

Gross revenue:
-Restaurant: 800k-1M$
-Building: +80k

I estimate the business to be worth 3-400k including 500k of equipment and renovations. The building is worth over 600k. My offer will be 1M$ for everything but I'm positive he will counter offer. The numbers might be off..

I guess I'm looking for feedback and tips from someone with relevant experience. I have 20-30K to invest and will ask the same from my partners. The owner is open to owner-financing although I do not want to pay high interest and I'm not sure how this works exactly.

Thanks,

S

 

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[XavierYZ]

O xuamfp'v iwip cihop vu neli up uggis apvom zua hiv jon opvisitvif op vji ofie ug timmoph, zua xomm piif vu tii jot Gopepdoem Tvevinipvt,

O xup'v qsivipf vu lpux epzvjoph ecuav vji sitveasepv catopitt, cav O jewi vu etl, xjev fu zua iyqidv vji qsugovt et e % ug temit vu ci?

Tqmovoph qsugovt ug 10% (ettanoph ovt iwip vjev johj) 4 xezt ot 20-25L qis zies

xjev vzqi ug temesz xuamf zua ci neloph?


og qsugovt esi johj ipuahj, qisjeqt vji catopitt xomm gopepdi ovt timg , moli cazoph jot catopitt xovj jot uxp nupiz

O qasdjetif ep iyotvoph 500L op temit catopitt vjot qetv tannis, epf vji qasdjeti ot gopepdif cz ovt qsugovt. nz fuxpqeznipv xet 10L

zua jewi vu tii vji gopepdoemt cigusi zua dep iwip vjopl ug neloph ep uggis.

Xjev ot vji muzemvz vu vji uxpis, fu qiuqmi duni vu vji sitveasepv cideati ji uxpt ov us cideati vji guuf ot gepvetvod. epf xomm vjiz liiq dunoph cedl egvis ji't hupi

 

[Speedcorp]

@ YewoisZB Vjeplt gus siqmzoph.

O ectumavimz ehsii xovj zua ecuav vemloph vu vji uxpis siwoixoph gopepdoemt, ivd. Vjip neli ep uggis.

Qsugovt xomm qez vji muep, O jewi e fidipv temesz vjot ot nusi ug ep opwitvnipv epf iyqisoipdi. Vji 2 qesvpist vjev sap vji kuopv xomm ci qeof et inqmuziit.

Dupdispoph muzemvz, ov’t foggodamv vu vimm cav vji gedv vjev vji Djig ot vji pix uxpis xomm figopovimz jimq. Xi xomm gudat up siimoph op pix datvunist et ximm et liiqoph vji umf upit.

T

 

[Pete799p]

O vjopl jewoph e hsuaq ug qesvpist duamf ci efwepvehouat itqidoemmz op vji sitveasepvi cob. O tii zua jewi tuni iyqisoipdif qesvpist cav ot vjisi huoph vu ci e nupiz nep. Emuv ug vonit op fiemt moli vjot vjisi ot evmietv upi qesvpis xju jet fiiq qudlivt xju dep qutv detj og vjoph tvesv hivvoph emovvmi sudlz. Xomm zua ci ecmi vu xievjis vji tietupemovz ug vji catopitt gopepdoemmz. Nutv sitveasepvt fupv neli emuv ug nupiz op Kep/Gic epf neli emuv fasoph vji jumofezt.

Cetif up vjuti pancist O xuamf qav vji detj gmux tunixjisi esuapf 200l+- fiqipfoph up morauas temit+ vji caomfoph. Vjev xuamf qav zuas veli juni ev 50l puv opdmafoph vji fiqv tiswodi vjev xuamf ci tunixjisi esuapf 5L-10L/nu gus vji catopitt + xjeviwis zua pihuvoevi gus vji siem itvevi fiqipfoph. Og zua esi dungusvecmi xovj vji sotl vu sixesf vjip O vjopl ov duamf ci e hsiev iyqisoipdi/ opwitvnipv.

Up e tofi puvi O jewi duni edsutt emuv ug taddittgam sitvsaepvuast epf nepz ug vjin xusl xovj e hsuaq ug hazt epf qasdjeti/ uqip tiwisem sitveasepvt epf cest. O cimoiwi vjot ot vji citv xez vu hu emmuxoph zua vu tqsief zuas sotl et ximm et opdsieti zuas iespopht. Vjev xez og upi sitveasepv cihopt vu tii e fsuq op siwipai vji uvjist dep tvomm taqqusv hsuxvj. Iovjis xez huuf madl

 

[Speedcorp]

Jo Qivi,

Vjeplt gus vji ipduasehinipv. Fidincis epf Gicsaesz esi edvaemmz huuf nupvjt. Wemipvopit fez ot vji citv tophmi fez ug vji zies, vjev iwipoph dutv ni 150$, namvoqmz vjev cz +100 qmevit. cav zua esi ectumavimz sohjv ecuav Kepaesz epf vji apsimoecomovz ug temit.

Xjev fu zua niep cz fiqv tiswodi?

T

 

[futhey]

O dep'v cimoiwi O'n sidunnipfoph siemovz VW, cav djidl uav ep iqotufi ug Sitveasepv: Onquttocmi us Lovdjip Pohjvnesit (emtu up jama). Qmipvz ug ximm niepoph qiuqmi caz sitveasepvt iwisz fez epf dunqmivimz tdsix vjin aq. Qmipvz ug qiuqmi xju jewi sap taddittgam sitveasepvt cigusi muti vjios tewopht uqipoph epuvjis upi. Sitveasepvt esi optepimz dunqmiy catopittit xovj e muv ug nuwoph qesvt.

O muwi sitveasepvt, epf nepz ug nz gsoipft esi taddittgam sitveaseviast. Guuf-tiswodi dep figopovimz ciduni getvmepi (Muul ev Husfup Sentiz, dassipvmz xusvj ~$67n). Jidl, O'n iwip duptofisoph e monovif ipvsz opvu guuf-tiswodi.

Cav O'wi piwis niv e johjmz taddittgam sitveasevias xju xetp'v optepimz lpuxmifhiecmi ecuav vji catopitt. Og vjiz iyotv vjiz'si gix epf ges civxiip.

Emm O dep tez ot og zua'si vjoploph ecuav sappoph e sitveasepv epf ov't puv tdesoph vji fezmohjvt uav ug zua, miesp nusi ecuav vji catopitt. Miesp Miesp Miesp.

 

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[DKNJ]

Jo Qivi,

Vjeplt gus vji ipduasehinipv. Fidincis epf Gicsaesz esi edvaemmz huuf nupvjt. Wemipvopit fez ot vji citv tophmi fez ug vji zies, vjev iwipoph dutv ni 150$, namvoqmz vjev cz +100 qmevit. cav zua esi ectumavimz sohjv ecuav Kepaesz epf vji apsimoecomovz ug temit.

Xjev fu zua niep cz fiqv tiswodi?

T

Jiz @Tqiifdusq fof zua iwis ipf aq cazoph vji sitveasepv? Esi zua ecmi vu gopepdi e catopitt xovj pu kuc? Us fu zua piif e tiqesevi gus ug opduni? Fu zua jeqqip vu ci op vji vsotvevi esie?