Taking Over Cafe Business...

Hello there,


I'm new to the forum and am wanting some advice on taking over a small caf!. Hope someone can help?
I have a small amount of money and have seen a caf! that I'd like to purchase as it would be fulfilling a dream.
I have no business experience whatsoever but have been told, and read, that this is an ideal starter business.
I have been volunteering in the caf! to gain experience and to get a feel of the place but really do need to know step by step, what I need to do and know before making an offer.
The owner has been more than helpful by allowing me to work in there and give me advice herself but I need other peoples input as (perhaps cynically) she may just be telling me what I want to hear.
Is there some sort of check list and dos and don'ts that you guys can make me aware of?
ANY help/advice would be greatly appreciated.
Many thanks,


Gail
«13

Comments

  • ~Beanie~
    ~Beanie~ Posts: 3,043
    Combo Breaker First Post First Anniversary
    Forumite
    Have you seen the books/accounts, seen what kind of profit it makes (if any)? What is the current owners reason for selling?

    Why have people told you this this would be an ideal starter business? Would you be working here alone or employing staff?
    :p
  • I have seen the books/accounts but I honestly don't know what I am looking at. Am I allowed to take them to show to an accountant/solicitor?
    The reason for her selling is that she now wants to pursue other interests.
    The current owner works alone apart from a Saturday girl.


    Gail
  • Comms69
    Comms69 Posts: 14,229
    Name Dropper First Anniversary First Post
    Forumite
    gail.wls1 wrote: »
    I have seen the books/accounts but I honestly don't know what I am looking at. Am I allowed to take them to show to an accountant/solicitor?
    The reason for her selling is that she now wants to pursue other interests.
    The current owner works alone apart from a Saturday girl.


    Gail



    You're looking at the big number at the bottom that reads profit.


    I'd suggest if you cant read books you shouldn't run a business. How will you manage the day to day expenses, bills, planning?
  • seashore22
    seashore22 Posts: 1,443
    First Anniversary First Post Combo Breaker
    Forumite
    edited 5 October 2017 at 9:33AM
    Any catering experience op?

    I would also say that 99% of the time someone selling something is going to tell the prospective buyer what they want to hear. I hope it wasn't the current owner who told you that it would be an ideal starter business.

    Restaurants and similar businesses are very hard to run successfully and make a decent living from. It would probably be my last choice for a beginner business venture, especially for someone with no experience at all.
  • Everyone has to start somewhere right? I just need someone, who isn't the seller, to explain it all to me.
    I have no experience in catering.


    Gail
  • seashore22
    seashore22 Posts: 1,443
    First Anniversary First Post Combo Breaker
    Forumite
    Sorry my previous reply was a bit negative. I would also love to run a cafe or b and b, but I don't do it because I'm realistic about the stress and sheer hard graft involved.
    ,
    If someone asked this question who had a head for business, knew a bit about the industry and was realistic about what it entailed, I would say go for it if it's what you really want to do. Obviously some cafes are successful and do make money.

    However your post says to me that you aren't that person. How old are you?
  • motorguy
    motorguy Posts: 22,452
    Name Dropper First Anniversary First Post
    Forumite
    gail.wls1 wrote: »
    Hello there,


    I'm new to the forum and am wanting some advice on taking over a small caf!. Hope someone can help?
    I have a small amount of money and have seen a caf! that I'd like to purchase as it would be fulfilling a dream.
    I have no business experience whatsoever but have been told, and read, that this is an ideal starter business.
    I have been volunteering in the caf! to gain experience and to get a feel of the place but really do need to know step by step, what I need to do and know before making an offer.
    The owner has been more than helpful by allowing me to work in there and give me advice herself but I need other peoples input as (perhaps cynically) she may just be telling me what I want to hear.
    Is there some sort of check list and dos and don'ts that you guys can make me aware of?
    ANY help/advice would be greatly appreciated.
    Many thanks,


    Gail

    You need to get an accountant to look at the accounts ASAP.

    I'm assuming its leasehold, so how long is the lease remaining as you will be liable for it even if you cease trading until you find another [STRIKE]victim [/STRIKE]tenant.

    aking on a business with no previous experience can be a fantastic way to make a small fortune - out of a large one. Tread with extreme caution. T

    How long has the previous owner been operating the Cafe? Invariably even in a business making no money / losing money people stick it for a couple of years. If she has been running it for less than say 3 years, alarm bells need to be ringing with you as to WHY shes getting out. Leaving to "pursue other interests" could translate to "its losing money hand over fist and i want out".

    Very few people sell a goose thats laying golden eggs, so if shes getting out, you need to know the real reason why

    How much is she charging you for this "investment"?
  • seashore22
    seashore22 Posts: 1,443
    First Anniversary First Post Combo Breaker
    Forumite
    I have to say that, in the nicest possible way, if you have to come on to MSE and ask for advice then you're probably not ready to take this on.

    We don't know you, don't know the business, don't know where this is and it's all too vague.
  • motorguy
    motorguy Posts: 22,452
    Name Dropper First Anniversary First Post
    Forumite
    gail.wls1 wrote: »
    Everyone has to start somewhere right? I just need someone, who isn't the seller, to explain it all to me.
    I have no experience in catering.


    Gail

    Gail, whilst i admire your optimism, there is a very real chance you are being sold a pup by the owner in terms of presenting it as a viable business when really its making no money or making a loss. You need to make sure you arent. Dont underestimate how ruthless people will be if they see an opportunity to offload something thats a pup on to some poor victim.

    Having customers in through the door does not mean shes making money. Turnover doesnt mean anything either. You need to see hard evidence its making money - if you cant then [STRIKE]walk [/STRIKE]run away.
  • motorguy
    motorguy Posts: 22,452
    Name Dropper First Anniversary First Post
    Forumite
    Some basic questions :-

    Whats the turnover for the last 3 years?
    Whats the rent?
    Whats the lease term?
    When is the lease up for a rent review?
    How much are you being charged for buying the business?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards