Help needed as to what to do?

julie8314dave

Good Morning everyone.

Just wanted some friendly feedback as to what to do? we have a sandwich bar /tearooms with a large garden and living accomodation above premises, it is a very olde worlde building with lots of nooks and crannys with original beams and old faishoned black and white style. (just to give you a brief outlook)

mY HUSBAND AND I run it with another member of staff who is fantastic, however we have completely lost interest in the business now and want to move on with other ideas. (we have had the business for a little over 3 years.

We have put the business up for sale 2 months ago and not even a viewing yet , have reduced price still no luck.

My question is does anyone have any ideas, as to whether it would be a good idea to rent it out to maybe a husband & wife team to run and what would you think our return should be.

The current rent is £2.5oo a quarter, plus there is an income of £500 per month from the living accomodation, ( the tenant would leave if needed to)
At present the business is taking between £850.00 to £1,000 per week.
Hours 8.30 to 2.30 Mon-Fri 9-2 Saturday. Every thing is homemade from scratch.
What would be a good way to do this.
Any thoughts anyone?

steve1980

What is your current net profit? Is the business listed on Rightmove etc?

julie8314dave

£54,000 , no with an independant agent, (who we brought from) did not know that you could put it with rightmove, being a business.
Thanks

steve1980

Ok, I'm assuming that you're up for sale at a figure of around £110,000?

If the agent you are with is on Rightmove then they can offer it on there.

julie8314dave

Thanks for replying, We were up for £66,500 and have just reduced it by £7,500.
Thanks,
I believe it is on with Daltons weekly.

steve1980

So you're massively underpriced then!

Is the lease long term or short term?

Where abouts is the business? Is it in a village? What sort of competition do you have?

julie8314dave

Lease is long term, up for renewell 2013 we have a clause in it to be a further 10 years if we need it, the business is in Hailsham east sussex, there is a sandwich bar opened up across the road from us with nil business. and a very poor wetherspoons (for food)

steve1980

I would suggest then the agent isn't pushing or advertising it to the right people. Daltons is no where near as good as it proclaims to be. All I ever got from it was calls to turn every business advertised into a takeaway!

Are you in a sole selling rights contract with your agent? I would assume you are as they are really taking the mickey with it.

I found (I think) your Daltons entry. Not exactly selling it!

http://www.daltonsbusiness.com/cafes-for-sale/sandwich-bar-and-coffee-shop-with-accommod-east-sussex-uk/244128

Nothing about turnover, profit, length of lease, anything.

julie8314dave

yes they do have a sole selling rights contract, that is the right business, what do you think i should do now then?
Many THanks.

steve1980

Looking at the figures you quoted in #1 I want to query a few numbers.

Weekly takings average at £925 per week = £48,100
Income from Flat at £500 per month = £6,000

Total = £54,100 Gross Profit.

Now, if you are on the market priced at £59,000 your net profit must be around £29,000, not £54,000.

You need to speak to the agent and find out why people are not interested, what is the feedback from people that are looking at the details, although if they are anything like the Daltons write up then it's no wonder you haven't had anything.

julie8314dave

i spoke to agent who told me that he had just sold a business in hastings with a net profit of £56,00 for £50,00 with bigger accomodation he said that ours was £52,00 net profit, so i do not really know without looking at accountants figures.