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Gimme your thoughts on buying this business

I live in a very small town. I am looking at buying a small pizza parlor that I currently waitress at 3 nights a week. The owners are getting out due to health issues. My husband works shift work and I run a full time home daycare. I would like to keep the daycare atleast for a few more years until my kids are in school. I thought I would hire someone to work at the resturant from 10-6 then my husband and I can work there in the evenings. This is an established resturant that has been open 7 years.

Answer Question
 
leslie81639

Asked by leslie81639 at 1:27 PM on Aug. 5, 2010 in Money & Work

Level 1 (2 Credits)
Answers (6)
  • What is your experience and understanding of resturant ownership/management? Book keeping and accounting? Will you continue establish contacts with present suppliers or will you look for new ones? What is your understanding of BOLI laws/wage an hour laws in your state, OSHA, Health Inspections, maintaining your licenses...... ect..........?
    pixie_trix

    Answer by pixie_trix at 1:31 PM on Aug. 5, 2010

  • Sounds solid...and i know a pizza parlour in a small town can bring in good business for sure ! what does your hubby think of it ? are you prepared to be tied down ? or to be able to delegate? would your husband quit his job to do this, or would he be working 2 jobs ?
    FXmomTo3

    Answer by FXmomTo3 at 1:31 PM on Aug. 5, 2010

  • Bottom line, is this business profitable? Will the owners share with you their operating figures? Remember, there is a LOT involved in operating a business from taxes, to liability insurance, health department inspections, permits, employee salaries and benefits, personnel issues, accounting/bookeeping, etc.

    Beyond that can you either continue offering the same level of service and food quality as the current owners or add new items to the menu to "jazz" things up to increase business profits?! Are you good a working with outside vendors, multi-tasking, handling peak hours, interviewing and managing people, keeping track of inventory and anticipating ordering supplies without having to throw away unused foods/supplies?!

    Operating a restaurant is physically exhausting!
    LoriKeet

    Answer by LoriKeet at 1:36 PM on Aug. 5, 2010

  • I'd love to have a resturant.

    I agree with Lori, i'd be interested in thier profit margins before i signed on the dotted line.
    UpSheRises

    Answer by UpSheRises at 1:48 PM on Aug. 5, 2010

  • I agree with LoriKeet. I would want to look at the business's finances first, so that you can find out the normal income and expenses, not to mention any outstanding debt.
    andrea96

    Answer by andrea96 at 1:50 PM on Aug. 5, 2010

  • I could not answer this without seeing their finanacial statements for the last three years, knowing the asking price, how many hours the current owners work. I would probably have more questions as I looked into this, though. Buying a business is a huge committment.
    rkoloms

    Answer by rkoloms at 6:32 AM on Aug. 6, 2010

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