Buying a business

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Buying a Business

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Looking to buy a Hospitality Business?Where do
you start?
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• Theres a lot to think about and a lot of
  questions to ask yourself when you consider
  buying a business. What type of business should I
  buy? How do I go about buying it? What research
  should I do before I buy the business?
• Buying an established business can be
  very rewarding, the opportunity to work in
  something that inspires you, and that you can
  grow and nurture and see the rewards of your hard
  work. Buying an established business means that
  you are buying certainty, you are buying a
  formula that already works that has been tried
  and can be relied on to generate profit,
  reducing your risk of failure and financial loss.

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Things to consider when buying an existing
hospitality business.

• As a prospective business owner you should
  determine the current worth of the business and
  its future prospects. When buying a business and
  considering its worth, you'll need to ask the
  following questions
• Vendor - Why and what are the reasons the
  business being sold?
• Sales - Can you see any patterns or trends? What
  is the business' customer base? Who are the
  current suppliers? Where are the customers coming
  from?
• Costs - What are the fixed and variable costs?
  What are the staff costs?
• Profits - Have you looked at previous financial
  records? Is the business profitable? Is a section
  52 applicable for this business?

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Things to consider when buying an existing
hospitality business.

• Assets - What assets does the business have? Does
  it have any intellectual property or leasing
  arrangements? Are all the assets included in the
  sale of the business?
• Stock - Is the stock on-hand being including in
  the purchase? How is the stock managed? Are
  there systems in place to control stock costs??
• Liabilities - Does the business have any
  outstanding debts? Are you buying the business
  asset, or the company with any outstanding
  liabilities present? Are there debts owing
  on assets that are registered on the Personal
  Property Securities Register? 
• Tax - What kinds of tax will apply? Is Capital
  Gains Tax applicable?
• Legal issues - What are the legal agreements on
  leases? Have you reviewed the Contract of Sale
  for the business?

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Things to consider when buying an existing
hospitality business.

• Business structure - What is the business
  structure? Do you need or want to change the
  business structure to suit your business needs?
  Do you know the different legal, tax and record
  keeping requirements of your current business
  structure, or the one you want to change to?
• History - What has and hasn't worked in the
  business for the previous owner?
• Expectations - Do you have an idea of what
  expectations youll need to manage as a
  franchisee or business owner?
• Planning - Have you written your Business plan
  and Marketing plan to help you document your
  business objectives and identify how this
  business will meet your goals?

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• Once you have received answers to the above
  questions from the vendor selling the business
  and if you are happy to proceed to make an offer,
  you then need to work out how much the business
  is worth in the current market?
• There many different ways to value a business
  worth including sales, costs, profits, assets,
  liabilities, tax and legal issues. Please call or
  email Just Business Brokers (jbb) and they can
  assist you to work out what a business is worth
  in todays market on
• mobile [phone] 
• email  Karli_at_justbusinessbrokers.com
  
• Website www.justbusinessbrokers.com

• For direct contact End to End Building
• Building
  2, 48 Easey Street
• 
  Collingwood, 3066
• 
  Australia