Purchasing cafe - resources/advice needed

[Inkan]

Hi all

I am looking at buying a cafe. I am based in Brisbane but it will be somewhere outside of Brisbane. I saw one yesterday which definitely has potential. I was given financials for the last 6 months. Any advice of who to talk to and where to go next would be greatly appreciated.

Thanks

[CruzAccountant]

Speak to an accountant to go through the figures with you, and also discuss business tructures, tax planning, etc...

[Golfing Director]

Congratulations! I have previously owned a cafe and restaurant, plus 3 catering businesses and I have always had a love affair with food and the hospitality industry in general.

Although I now sell catering equipment to the industry, Australia wide I also offer many free resources that will help you on your journey. Please use as many of these resources as you would like to and even speak with my staff should you like clarification on your equipment needs.

My website is http://www.sydneycommercialkitchens.com.au/ and go to the FREE Resources page.

Good luck and I hope it is a successful venture.

[Kellyg]

Hi Inkan

Well done for taking the big step. Before you say yes to anything definitely get some advice from an accountant and even a solicitor especially when it comes to looking over the sale contract.
Don't forget to make sure you also look at establishing some clear and definite systems for your business that covers things like:

• on & offline filing and data storage
• your account management / bookkeeping processes
• your database system and processes for implementing and maintaining it (this is essential for your marketing)
• your point of sale system - is it integrated into all of the above to save you time and money as you grow
• you staff recruitment and management - what systems will you put in place to make sure they don't cost you more than they make you
• don't forget your insurances and internal audit processes
• your pricing structures and your plans for increasing prices in line with CPI over time

If you need help with any of these or just want more information feel free to get in touch - I currently work with cafe's and restaurants in the Redcliffe area and would be happy to share some of my resources.

[DS_BVS]

Hi

Just to add to some of the good points above, try to get financials beyond 6 months to give to an accountant in public practice to analyse for you.

Also, have a really close look at a couple of areas:

1. Look very closely at the till tapes and reconcile these back to the bankings

2. Check the menu on offer (even for fast food) and look at the performance of the menu & look for any high input low margin items.

Hope this helps.

[chris_king435]

Correct me if i'm wrong, But i thought you would be asking for the financial records for the last 2 years not previous 6 months. You want to be looking for any negative patterns over the previous two years to see if they are bailing out.

Chris

On a side note, it's good to see someone from this forum operates SCK. I spend a bit of time looking at your site and it has been very helpful with the research i've been doing lately

Originally Posted by Golfing Director

My website is http://www.sydneycommercialkitchens.com.au/ and go to the FREE Resources page.

[King]

agree on the 6 months v 2 years, plus spending money on a good accountant. Even $2k would be a worthwhile amount to spend in the end if it means getting the right questions answered.

[The Cafe Ninja]

Or just contact me and I'll do a full assessment for $990+GST...