publican wannabe

Chilled_mole

Hi everyone, long time reader, first time poster lol

I guess the beginning is always a good starting point, basically, i'm thinking of investing in a pub/restaurant business. I wont lie, i'm terrified, and know very little about running my own business, however, i'm fortunate to have a wealth of information with both friends and family all of which are willing to support me in my possible future?

I guess the question is, would this be a wise move with the economy the way it is? ... My understanding is food is going up in price, and general user spending is going to plummit somewhat?! ...

It's still 'early doors' yet! a friend of mine who owns a restaurant is currently considering the possibility of going into it with me? naturally he'd bring an awful lot of custom to the table, which would be a bonus, plus, he has quite a few more covers to play with in the pub?

It all sounds very romantic and cosy! ... but I guess I just want to have every base covered! that way, there would be very few surprises really!

Also, anything else I should consider?

also, I apologise if this is in the wrong area?

thanks for your time guys?

Stubbarama

Are you looking at staring up a restaurant or buying a going concern ?

What type of establishment is/will it be ?

Chilled_mole

it'll be a going concern! ... but both my 'potential' business partner and I have discussed expanding the dry side of it! (moving the current pokey eatery part to a larger part of the establishment)

at the moment they claim to be making in the region of £235k T/O P/A ... 90% wet 10% dry .... so on paper, this would be an incredible opportunity ... however, what's on paper left us both with our tongues firmly pressed into our cheeks ...

hope that answered your question?

I'm learning slowly lol, and i'm trying to do everything methodically. And, to keep my motivation up! lol ... cos this is an age old dream of mine tbh, and it's only in the last few months I've thought, 'you know what! !!!!!! it! I can do this' lol

Debt_Free_Chick

£235k turnover ..... OK ... What's the profit?

Chilled_mole

they only outline G/P at being 58% ...

HOWEVER! the rent is in the region of £700 p/w which in my opinion! is extautionate! ... would you agree? ... short of it being a missprint?!

obviously i'm not only looking at the one place! ... i'm just seeing what kind of stuff is available?! and where to start really!?

mountainofdebt

well for what it's worth I would be very wary of going into business (whatever busines that was) if I didn't have a clue as to what I was doing.....yes taking advice from friends/family is all very well but they can just walk away from any mess can't they?

Also I think going into business with a friend will change the dynamics of that friendship.

What business expereince do you have ?

Stubbarama

To be honest without knowing a lot more facts its hard to help.

Where is the pub ?
What is the location like ?
What is the clientele base ?
Is the income distributed across the week ? or geared towards peak times (i.e business people during the week, or a weekend bar etc)
What is the size of the place (for £700 pw) ?
Does it include liveing quarters for you ?
Will you be "managing the restaurant & pub ? or one ?
Will you take a wage or split profits ?
Is it freehold or leasehold ?
Are you tied into a brewery ?
Do you have commitments (family, kids etc) ?
Will the investment leave you in financial strain ?

Chilled_mole

sorry for the ridiculous delay!?!?!? ... had logging on issues, anyway

ok ... lol

the pub is located on a fairly busy main road! just outside the Peak District! passing trade would be high, however, there is other
pub/restaurants on the same stretch of road

The location is beautiful! an awful lot of money in the area! (all huge detached properties etc) there's a football ground next door to the
place, so this would give excellent trade on Match nights, possible menu adjustment needed on said days!

Clientele i'm not 100% sure of, but at a guess it'll be rich students, older regulars, match day families/regulars/louts not including the
regular returning custom my colleague would bring with him!

income i'm not sure of yet! but my colleague is looking over the said accounts as we speak!

as for its size, erm, not sure how to answer it! it's a detached property, apx 4 rooms downstairs, (not sure of capacity) bear garden,
upstairs is 2/3bedroomed

yes, it include living quarters lol

I guess I'd be the manager of the bar, my colleague the restauranteer! ... (not got this far in the discussion with him yet)

dunno about the wage or split profits, again, further discussion is needed but personally it'll be split profit

leasehold! .....

I believe we would be yes

I have family yes, but if I don't change my lifestyle soon I'll explode

I really haven't a clue in all honesty! ... I guess i'd be putting more hours in working, so, in a way I wouldn't have much opportunity to
spend anything! ... there's so much to consider such as do I sell my house or do I rent it! do I move into the pub, do I have it as a lock
up and rent the room!? ...

basically, I don't have all the answers i'll be honest, and like I say, i'm thinking about it!

moutainofdebt - in answer to your question, I have very little to no experience of running a pub! ... I don't even have my licence yet! ...
I have absolutely no plans in going out tomorrow and buying one!?! ... I'm starting from the ground up, speaking to you guys is one step?
getting certificates/licences is another (training courses are available for these things teaching you essentials on 'running your own pub')
getting financial advice is next etc ... My family would never turn their back on me in times of need lol. Yes, it would change friendship
dynamics, I couldn't agree more, this is a risk we're both willing to take?!

silvercar

There is a guy that posts on the bankruptcy board called MikeStHelens (or something similar). He went down the route you are looking at and it bankrupted him; I'm sure he could tell you what to look out for.

Pez2

Erm, the fact that you think you can attract rich students, families and football louts all to the same pub suggests to me that you don't have much of an idea of what you actually want this pub to be like.

Pobby

Word of warning.As it is leasehold be very careful with the lease conditions as it is more than likely a full repairing lease.Also make sure that you have adequate break clauses.Using a solicitor is essential.