BarWannabe
12-14-2007, 11:15 AM
Hello all. I have been reading through this forum and have decided to post some information regarding a bar purchase that I am considering. I am hoping that you can potentially point out some of the flaws in my thinking or any mis-statements I may have made. I'll give the background in this first post and then some additional information in another. I don't want to have a giant post as my first one.
The bar that we are looking to purchase has been in business for over 30 years and is located very near to a large university. The purchasing group would be myself, my wife, and our close friend (the current bar manager).
The bar has a fairly regular 4-5 year rotating crowd and has a minimal amount of fights or disturbances.
The current owner of the bar has owned it for over 15 years and it is his sole source of income. He does not maintain inventory control of the bar or kitchen with a POS.
The current owner has wanted to sell for several years and has been asking our partner (the manager), about it for some time.
We know that it does generate positive income based on the past tax returns and the monthly statements that we have from this year.
The current owner takes a significant amount of money out of the business as "expenses" so it's stated profits are anywhere from a slight loss to $50,000, although for each of those years he did take a salary of up to $25K.
I'll post some more specific numbers in another post, but how much credit should we be able to give ourselves regarding:
- the reduction of loss, theft, and breakage of alcohol
- more efficient inventory utilization through the POS
- more efficient kitchen operation (food, staff)
- the use of more advertising (not much currently)
- a more clean environment.
Thanks for all of the help and information.
The bar that we are looking to purchase has been in business for over 30 years and is located very near to a large university. The purchasing group would be myself, my wife, and our close friend (the current bar manager).
The bar has a fairly regular 4-5 year rotating crowd and has a minimal amount of fights or disturbances.
The current owner of the bar has owned it for over 15 years and it is his sole source of income. He does not maintain inventory control of the bar or kitchen with a POS.
The current owner has wanted to sell for several years and has been asking our partner (the manager), about it for some time.
We know that it does generate positive income based on the past tax returns and the monthly statements that we have from this year.
The current owner takes a significant amount of money out of the business as "expenses" so it's stated profits are anywhere from a slight loss to $50,000, although for each of those years he did take a salary of up to $25K.
I'll post some more specific numbers in another post, but how much credit should we be able to give ourselves regarding:
- the reduction of loss, theft, and breakage of alcohol
- more efficient inventory utilization through the POS
- more efficient kitchen operation (food, staff)
- the use of more advertising (not much currently)
- a more clean environment.
Thanks for all of the help and information.