Pros and Cons of Taking Over an Existing Business
Why, exactly, is the current owner looking to sell? Is the property and business being sold because the business is failing, or is the owner just looking to retire? Many times an owner has invested time and resources in a successful restaurant only to discover that he has no heirs or family members interested in continuing after the original owner has gone.
If the business is doing well, it might be more cost effective to take over an already existing restaurant. Some of the advantages and disadvantages to this option include:
-a customer base that is already in place. - expenses incurred while running a restaurant could be tracked for at least a year or better. This would give you a more realistic idea of what the actual expenses are involved in running a restaurant on everything from the cost of produce to the monthly expenses needed for things like your insurances, fees, utilities, wages, etc. You would also have a better idea of profits generated by the location. Chances are that the current owner can introduce you to the greengrocer and butcher who already deliver supplies to the location. The same is true for other services that the owner uses for things like garbage pick-up, restaurant supplies like linens, etc. If your municipality and state allow it, these licenses might be able to be transferred with the sale of the restaurant. If not, the disadvantage is that you would have to reapply for and obtain these before you could open for business.
If the business is not succeeding, is it possible to fix it so that it will?