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  • #988290
    Ni
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    • Total posts: 1
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    Hi ,

    I am a new member. I really need help for my new business . Financially I am quite ready .

    I have been looking for a small cafe which can be operated by myself and one particular cafe is very suitable with me _ it is small , not very busy after 10 am , is located in a residential suburb with no other competitions at all, the rent is cheap -$290 per week and the operation hour is 6am to 1 pm . The cafe only serves ready made muffins, slices and some sandwiches so there is no cooking involved except toasting sandwiches. I have also researched about this cafe and I have read some reviews and feed-backs which are all good. Some customers want the menu to be expanded, I have read. The owner told me that some residents had suggested her to put some home style meals in the menu but she had refused as she couldn’t . At that point I knew that I could expand the menu with my own Asian fusion light meal creation if I get to buy this. I might need to apply the food license at the city council.
    These are all positive facts about this cafe.

    However, I have been reluctant to buy this because when I inquired why she wanted to sell this , she said that she had bought this for her daughter. The daughter enjoys so much doing as a cafe Barista. But now she has to do a double degree course so the lady has to do the cafe job instead of her daughter. She has to travel nearly 30 Km from the south side of the city ,where she lives , to our north side . And another thing is she bought the cafe only in December 2013 and put it on sale in May 2014. So I asked her if she had not known that the Universities open in January so how could her daughter have operated this cafe. Her answer was not precise. I wasn’t and I still am not happy with her answer.

    I went to see a business accountant who advised me to ask the owner the three years cash flow records. I did but the owner said that because she had been in the take away business for twenty years she had not had to ask the previous owners the book . She just looked through their weekly coffee/ cups orders and she could figure out everything she needed to know. That’s what she said to me. I went there two times_ the first time I watched what she did for 2 hrs and 20 minutes. The second time, almost the same. She showed me her weekly order forms, electricity bills etc. I decided not buy it .
    I also found some similar cafes but more expensive than this one. I am also not sure at what price should I buy a cafe.My question is should I find a Cafe broker to manage for me to get the right price ? or should I only see a solicitor and a Business accountant? Thanks

    #1166534
    Tony Manto
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    If you are not sure, I would pay someone that knows. This is better than losing a lot more when you buy the business. Don’t hurry, there are plenty of café for sale.

    Having said that, most business are for sale because they are not doing as well as they could or perhaps its a life change. The bottom line is you have to look at what you think the business can do, not what it is doing.

    #1166535
    Lisa Crocker
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    • Total posts: 221
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    Hi Ni,

    Welcome and thanks for joining our community!

    It sounds like an exciting new business venture :) If you haven’t seen them already, there are some threads at the end of this post about starting a cafe that you may find useful http://www.flyingsolo.com.au/forums/starting-business/14182-starting-business-please-read-before-posting.html

    Look forward to hearing how it all goes.

    Lisa

    #1166536
    GlensWebDesign
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    • Total posts: 45
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    Hi Ni

    I would have to agree with Tony here, making a purchase to buy a business is a big deal. Like buying a house or a nice car, its not an investment to consider without getting some expert advice.

    Better to spend a little bit of money and be told its a no go than to spend the whole lot and be stuck with it if it turns out not to be all its cracked up to be.

    I know in my city of Perth there is a small business development organization set up and funded by the government to give people advice so in addition to these forums you might want to seek out advice from someone with some experience who has nothing to venture or gain by giving you some independent advice.

    What ever the go is, I wish you the very best :)

    #1166537
    arrowwise
    Member
    • Total posts: 641
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    If its a cash business you’ll probably struggle to find reliable and certified financials. This can make it a big unknown of how much profit you can actually make in reality.

    Your best way of reviewing business activity is to hang out there or nearby and record business activity as you see it – or even speak to a few customers if you can.

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