Hello and Happy New Year.
Today is the first day back in the office and we are focusing on the year ahead. Towards the end of 2016 we took instructions on a number of restaurant businesses. All were on a leasehold basis and spread across different parts of Essex. Interest levels have been good but it has been hard to turn that interest into viewings and to qualify people as to their intent and ability to proceed should they want to take things further.
There are always a large number of cafe’s and restaurants available for sale in Essex at any one time. Buyers have the choice of where they want to be and ultimately what they want to pay for that type of business. With so many different options around it is important to ensure that if you are thinking of selling your restaurant or cafe business that is is done correctly.
All buyers will want to see evidence of the level of takings even if they plan to do something different with the business. Having up to date records is important as well as your own anecdotal evidence of the level of trade and what works best for the business. People will want to see potential for increasing the turnover or profit margins and this can come in a number of different areas including different opening hours, different staffing levels, different cuisine, home delivery or take out options, obtaining an alcohol license, more/better marketing etc.
All these points actually become irrelevant if the business is not priced correctly in the first place. Our job as a Business Agent is to advise you on the likely selling price of the business. We are aware of what other businesses have actually sold for as well as being aware of what businesses are on the market at different times. We are constantly looking at what businesses are trying to be sold and know that particularly in the restaurant and cafe sector, if the business is overpriced it will not sell. There are too many other options out there for buyers to consider without the need to pay over the top. If a business sits on the market for a long time at an inflated price it will either not sell at all or the owners will end up accepting less than the market price just to get out quickly.
The key point is to market the business at a fair price, back up the price with accounts that prove the income generated and you will have a much better chance of selling.
If we can help you with the sale of your business in Essex please do not hesitate to get in touch.