Post a new topic
    6 Replies Latest reply on Sep 1, 2009 8:50 AM by Lynburger

    Buying a Bar and Grill

    hille11 Newbie
      My husband and I have long entertained the idea of owning our own bar and grill. I know, a very common dream at which many people fail, loosing their home and savings.
      Due to the economic situation, my husbands company is closing down, leaving him without a job and a little bit of severance pay. I still have my job and plan on keeping it. As of now, it is not in danger of elimination.

      Here is the deal: We have a very good friend who has been in the restaurant and bar business for about 15 years. The restaurant was very successful, but after a divorce from his wife they decided to sell it and go their separate ways. Now, he owns a bar and has been bugging us to open one also. He will do the financing and shadow us for as long as it takes. He will be in the bar with us night and day until he feels comfortable that we are on our feet. In return he will get 10% of the sales. Almost like a franchise.
      On the one hand, I am very reluctant. On the other, that man knows his business and he turned his bar around from a whole in the wall when he bought it to a booming place.
      In addition, we live in a college town and this little grill is right accross from the college, perfect for lunch.

      Any advice or dos and donts? What is the expected profit margin in a business like that. I have looked at the menu and find it way too complicated. Personally, I would like to concentrate more on booze, pool and music than on food.
      I am thankfull for any input.

      Hille
        • Re: Buying a Bar and Grill
          ggoodard Adventurer
          There are many questions to be asked and answered. Please email me at ggoodard@aol.com Thank you
          • Re: Buying a Bar and Grill
            Bridge Navigator

            10% of revenues is rough - he gets paid whether the business makes money or not. Think about basing it on profits rather than revenue - and build in an agreed upon "base" salary if your husband will be running the business.
            • Re: Buying a Bar and Grill
              king1987 Wayfarer
              our website is www.mobilessupplier.com ,welcome you to have a visit
              • Re: Buying a Bar and Grill
                Wayfarer
                A common issue that I see is the mix of personal credit and business credit. Most small business owners get eager and use their personal access for the wrong needs. I put together an article to help you understand the two, feel free to comment.

                A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

                 


                Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

                 


                Good luck,

                 

                Ilya Bodner

                 

                Small Business Owner

                 

                Initial Underwriting Group
                • Re: Buying a Bar and Grill
                  LUCKIEST Guide
                  Buying a Bar and Grill, Welcome

                  If I was Buying a Bar and Grill, I would do the following:

                  Develop a Business Plan
                  Contact a Lawyer and an Accountant
                  Also talk to SCORE. SCORE is FREE.

                  Good luck, LUCKIEST
                  • Re: Buying a Bar and Grill
                    Lynburger Newbie

                    Some Bars are required to sell food, so they can infact sell booze. Can you provide a little more color and description of the business.. What is the concept? Where is the location and is there a website for the place?

                    Is it a bar or more of a grill? How many employees does it have?

                    Because of the college location is the business profitable in the summer? What is the price tag?

                     


                    Thanks