I don't like that it's an established business. That just means you're paying more for something that could prove to be of little value later on. Customers will bail just because there's a new owner or something changed. Equipment can fail and is typically not reliable after time. And the decor will need to be updated at some point.
The people I know who make money at this pay very little for the business, negotiate a favorable lease, usually with some free rent up front and lease hold improvements included. Then they put their capital into new stuff and attracting customers and most of all, lower prices. You don't want to be behind the eight ball with a big cash out lay and then have no money to add your own value.
Then they sell it to people wanting a turn key operation. I also think in general you need an exit strategy. These businesses are the typical grass is always greener metaphor. Parts of it will make you want your old hassle free job back. These things aren't easy to sell.
|