See if this helps you.
Picture this....
You have an 18 year old who will graduate from
high school in May. He talks about his vision of being a
teacher after high school. When asked by his grandmother
about his plans after high school (months away) on
becoming a teacher. He says " I am going to find a
school to go to, then find a school to teach at"? She
wanted to know how much money he will need and
where the money will go, yet he had no idea and said
he will figure it out as he go's along. Is this
a sound plan for the future? Does it sound like this
18 year old has a clear plan for his future? Based on
years of knowledge I bet the Grandmother knows she
better quickly step in and make sure this grandson
has a mapped out plan.
Learn from my mistakes, I also questioned the business
plan, but when I found the Small Business Administration
and SCORE I learned how important the plan was and
all will be. This is my map with plenty of room for additional
growing.
I suggest you ask the past owner for their past 5 year
tax records. Review them. Ask them about any outstanding
bills and assure them you will not be responsible for them
(include this in your agreement). If this is rental property
speak one on one privatly with the landlord to assure
you can take over the lease and listen to any concerns he
has with working with these past owners. Send in two
seperate couples to eat at this location and review. Make
sure on uncover patron visits during the businest hours.
Check with the Better Business Bureu and Health Dept.
to assure there are no current or past problems that will
haunt you. If this establishment sells alchol you will loose
your lic. for approx. one day to one week while you re-establish
the lic. to you, this includes a new business review. Most
important make sure this establish is not Grandfathered
through the city planning department to assure changes will
not happen once you request the business licenses.
Since this is an established business that the current owners
can show a profit, there bank would love to keep your business.
The seller should want to assist you in meeting with this bank
with your business plan. SBA does not know you like this
bank within this community will.
If anything pops up within the business records, or elsewhere
that sends off a red light...walk away, the economy will not get
better right now. Instead start planning and saving for a future
establishment you create.
