Looking to buy please tell me what you think!!

[ohiofilla]

Here are the numbers. My question is what do you guys think would be the cash flow and what do you think overall!!

Asking: $22,500
Gross: $91,000
Cash Flow: Not Disclosed
FF&E: $24,437 (included in the asking price)
Inventory: $1,250 (included in the asking price)


Business Summary



Independent coffee shop located in strip shopping center on high traffic street. Excellent coffee. Near a major highway intersection. Assumable lease plus options through 2011. Great business for someone who likes coffee and people.


General Information



Year Established: 1986



Employees: 1 ft, 2 pt



Facilities: 1,500 square feet with excellent visibility from street. Contains sofas, chairs and tables. Has a handicapped accessible restroom.




Market Outlook



Competition: Only coffee shop on a high traffic street.

 

[John P]

WTF?? That's not even a business. The BUSINESS value of this is zero, nil, nada. Offer to take over their lease. (since 1986?? They must suck.)

 

[John P]

If you want to be charitable, offer $1000, plus twenty cents on the dollar for all usable equipment, and take over the lease as well. Talk to landlord ahead of time to see about re-negotiating any terms they have BEFORE you make any offer to the current failing business.

They just want out, and haven't realized they have nothing to offer but the space... relieve them of their burden if you really like it, but give them nothing for their business. They should pay you.

 

[Muddycup]

Johns right, thats not enough revenue to break even of waste your time, unless you see an upside with expanded food menu etc....

 

[CafeBlue]

WTF?? That's not even a business. The BUSINESS value of this is zero, nil, nada. Offer to take over their lease. (since 1986?? They must suck.)

OMG can barely believe they have stuck it out for 10 years. Their asset value is minimal: 5 or 10% at MOST, since depreciation at 20 or 25% annually leaves that. Most furniture and fixtures are not even depreciated for that long, since they might wear out quickly and need to be replaced. Machinery that was neglected or needs repair is not generally worth even 10% when it is less than 10 years old. The "goodwill" is a negative factor at the point of 10 years with less than 100k gross sales. You will need to change the brand and image totally to overcome the past decade, and have a chance at a successfull cafe.

 

[John P]

Use your hard earned money to build your own brand....


somewhere else.

 

[Coffee Guy]

WOW everybody...Why not say how you really feel :twisted: However, I would have to agree. Why consider buying some one elses failure? I would take a look and see if there are any positives that could come out of this. For example, survey the area and see if there is a possibility to draw new customers (younder crowd), see if there is new development in the area that could increase business, speak with some of the existing businesses in the area and see if they would be willing to promote the shop if there were a change in ownership. As it is now we do not know the history of this place. Additionally are the existing owners older, i.e., retirement age or younger? Has the business been in this location since 1986, or did they start somewhere else, then moved to this spot? Sounds like the existing owners were either content with the little money they were making, lost a lot of business over the years due to lack of traffic and customers, or they just didn't know when to cut their losses. In any case look at some of those issues. But from the surface it looks as though you should pass on this one 8)

 

[mtapp]

Starting own business

Consider looking at options that are available that many others have had success with. Either talk to a trusted franchise broker in your market or send me a note and I can give you some direction.

 

[John P]

"trusted franchise" ? :wink: