How to buy a coffee shop

Starting a business from scratch isn’t the only way to get started. Buying coffee shops for sale can help you to hit the ground running. Here’s how to find a good deal.

Buying an Existing Business

Buying an existing business can be less risky than just starting out. When you buy a business you take over something that is hopefully generating profits and cash flow. You will get an established customer base and reputation as well as employees who are already familiar with all aspects of the company. Furthermore, when you look into coffee shops for sale you don’t need to reinvent the wheel. There’s no need to set up new policies, procedures and systems since there’s already a formula in place.

Making the Right Choice

When you begin looking into buying a business, consider what size you’re looking for in terms of locations, employees and sales. Also pinpoint a geographical area for the business and assess the costs of operating in that area including taxes and wages. Once you’ve chosen a region you can start looking for coffee shops for sale that meet your requirements. Look in the local classifieds and run a “wanted to buy” ad in local papers to find what you want. Just because a coffee shop isn’t listed doesn’t mean it’s not for sale. Put your networking abilities to use and you’re bound to find the perfect coffee shop.

You might like to consider contacting a business broker to find coffee shops for sale. They can help you to negotiate deals for a commission fee as well as prescreening the business for you; helping you pinpoint the perfect shop, negotiating fees and assisting with paperwork.

Whether you decide to use a broker when seeking coffee shops for sale or go it alone, you will need to put together an acquisition team consisting of an attorney, accountant and banker to help you. These are essential advisors when it comes to due diligence that is, reviewing and then verifying all the relevant information about the coffee shop you’re considering. Once due diligence is done, you’ll know exactly what you are buying.

If the business still looks viable once the preliminary analysis is done, your acquisition team can start examining the coffee shop’s potential returns and the asking price. Whichever method is used to ascertain a fair market price for the coffee shop, your assessment of the value should account for issues like earnings history, financial wealth and growth potential along with intangible assets like a brand name.

If ascertain an idea of the company’s future financial needs and returns, ask the current business owner and accountants to offer up projected financial statements. Income statements, balance sheets, footnotes, cash flow statements and tax returns for at least the last three years are all key indicators of the shop’s health. Such documents can help you with conducting a financial analysis that will outline any underlying problems and offer a closer look at a range of somewhat less tangible information.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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