I am looking to invest in a pizza place and wondering what valuation methodology folks have used?
2007-05-22 23:30:33 · 4 answers · asked by Maes 1 in Business & Finance ➔ Small Business
Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.
Hope that helps! I wish you much success & happiness in all your ventures!
2007-05-29 09:04:53 · answer #1 · answered by TM Express™ 7 · 0⤊ 0⤋
Are just buying the lease or the freehold too? If you're just renting the place this is the simplest because you just have to look at the accounts to see if it's making money. Look at more than one year, because although the last year maybe ok, the years previous to that could show the shop is in a terminal decline. This is usually because of increased competition. Also the local environment is important. If there is for example a lot of building work going on or a lots of closed shops nearby this could also point to the wrong time to move your business into the area.
Footfall in the area is very important, so look at when the area gets busy and whether you will be able to be open at these times.
2007-05-30 18:52:22 · answer #2 · answered by Gobobo 3 · 0⤊ 0⤋
It all depends on what area you are in and how much competition you have. Generally, you would have a greater profit with pizza. Its cheaper to make and will most likely move faster/ and you wouldn't have to have a full menu. Food perishes if you dont use it obviously. Most pizza shops use frozen fries so they wont go to waste and frozen chicken fingers that can be fried up in an instant.
2016-03-12 21:26:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Perdsonally if it was me i would ask to see a set of accounts for the past year so that you can see what profits are like and what is coming in and what is being paid out. I would also maybe work a few nights to see exactly what the activity is like so you get a feel for what customers are buying. taste the food also, if you like it chances are its good. Also ask people who come in and out on the nights you are working what they think about the service, pizzas etc, would they like anything added to the menu or like to see anything improved etc. I think general stuff like that is more important. Also see how old the equipment is what the faults register is like if there is one and liklihood of new machinary needing to be bought
2007-05-23 00:17:44 · answer #4 · answered by smitters06 4 · 1⤊ 0⤋
Just observe the clientel for a period of atlest 7days,and u can understand the business potemtial. Justify ur self whether u can improve the business by altering the strucuture of the shop,adding more items like that.And then bargain with atleast 25% lower to the owner's price!
2007-05-30 22:18:21 · answer #5 · answered by mahesh m 1 · 0⤊ 0⤋