Home – New Forums Starting your journey Looking at purchasing a small cafe in regional vic

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  • #987919
    CaraTee
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    Hubby and I are looking at buying a small cafe in regional vic. We are meeting the owner for an informal chat today. She does not have any official figures or books to hand over at this stage. She just put it on the market last week.

    Any tips or pointers on what we should ask?

    My initial plan after today would if we wanted to proceed was to
    – do up business plan (need her books as well for this)
    – work with a mentor from sbmv to go through their books, plan and asking price to see of it seems like a worthwhile venture
    – take completed business plan to our financial adviser and account (they work in close partnership) for their feedback and then get adviser to help us get finance

    Does this sound reasonable?

    Background of business and us
    -small regional town three km from home
    -established about five yrs ago after she sold her small iga supermarket
    -not sure why she selling officially she told me that she wants to put it on market before she gets sick of it and she knows from supermarket it can take a few yrs to sell. She is older and kids grown up so possibly looking at retiring or another business or maybe just less responsibility
    -her daughter works there but is not in position to take over and run on her own the owner said
    -open mon – sat 8.30-6.30
    -gourmet take away (everythin made on site)
    -dh and I are both chefs back in Melbourne before we moved
    -dh is now a chippy
    -I have been an office manager for a financial planner for past five yrs
    -on maternity leave at present. I have an 18mth old and 6mth old

    All we know is she is asking $85k wiwo

    #1164866
    Jenny Spring
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    CaraTee, post: 190769 wrote:
    Hubby and I are looking at buying a small cafe in regional vic. We are meeting the owner for an informal chat today. She does not have any official figures or books to hand over at this stage. She just put it on the market last week.

    Any tips or pointers on what we should ask?

    My initial plan after today would if we wanted to proceed was to
    – do up business plan (need her books as well for this)
    – work with a mentor from sbmv to go through their books, plan and asking price to see of it seems like a worthwhile venture
    – take completed business plan to our financial adviser and account (they work in close partnership) for their feedback and then get adviser to help us get finance

    Does this sound reasonable?

    Background of business and us
    -small regional town three km from home
    -established about five yrs ago after she sold her small iga supermarket
    -not sure why she selling officially she told me that she wants to put it on market before she gets sick of it and she knows from supermarket it can take a few yrs to sell. She is older and kids grown up so possibly looking at retiring or another business or maybe just less responsibility
    -her daughter works there but is not in position to take over and run on her own the owner said
    -open mon – sat 8.30-6.30
    -gourmet take away (everythin made on site)
    -dh and I are both chefs back in Melbourne before we moved
    -dh is now a chippy
    -I have been an office manager for a financial planner for past five yrs
    -on maternity leave at present. I have an 18mth old and 6mth old

    All we know is she is asking $85k wiwo

    I’d get the books, and go to the accountant to run through them. YOu need the last 3 years.

    I’d sit outside the cafe (nearby), and count the number of:

    1. people that walk past who don’t stop
    2. people who do stop and buy

    YOu are looking for an idea of traffic flow, as well as potential future business that she might be losing.

    Jenny

    #1164867
    Melanie Miller Biz Coach
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    What Jenny said!!!

    Plus – be cautious about getting too into the business without seeing those financials. You don’t want to fall in love with the idea before you know the reality fo the business.

    And once again, as Jenny said – sit outside and watch what goes on. Ask the owner when her busiest times are and then watch.

    Don’t forget to google the business name to see if there are any reviews out there too.

    Good luck!

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