I want to buy a bar but I want to know how much of the cashflow has to go back to employees and fees and ect....
2006-08-02 11:12:12 · 4 answers · asked by Princess403 1 in Business & Finance ➔ Small Business
DUE DILIGENCE!!
I do not give a flying hoop what the owner 'says'. Have an independent non-partisan evaluator look at the establishment and get an idea as to what it is worth.
ALSO have a group of people 3 or 4 frequent the establishment on different nights to get a feel for the place. THEY cannot drink though - you need a clear idea as to what is going on.
Do your homework.
TFTP
2006-08-02 11:17:23 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Nothing is easy when money is involved...
First, get your numbers straight. "Cash flow is 10" is meaningless. Is it ten dollars? Ten thousand dollars? Per week? Per month? Per year?
If the bar is legally owned by a company, ask them for their tax returns. This will be your low-end estimate of how much the bar really earns, what with it being a cash business...
Review their books (they must have at least some resemblance of bookkeeping) and see what you can get out of them. Hire an accountant to help you (you're going to have to hire an accountant after you buy the bar anyway).
Figure out what it's going to take to transfer their liquor license to you.
2006-08-02 18:25:16 · answer #2 · answered by NC 7 · 0⤊ 0⤋
I think bar's are a cash cow! Look how much drinks cost nowadays! Go for it! You probably need to talk to an accountant though to get the real c/f picture.
2006-08-02 18:18:53 · answer #3 · answered by escapegrl1 3 · 0⤊ 0⤋
If you are asking for advice on that subject on this site, of all places, I'd suggest it's not something you want to get into just yet.
2006-08-02 18:24:49 · answer #4 · answered by mama_bears_den 4 · 0⤊ 0⤋