It’s not uncommon for restaurant owners to go into the business believing it will be their passion forever. However, not all establishments last that long. There are many reasons that you might need to sell your restaurant, whether for personal or financial issues.
If you’re selling your restaurant, it doesn’t always mean there’s something wrong with the business. It could be a partnership dispute, a change in passions, an upgrade, or even a new life direction. But if you’ve made the decision to sell , you’re probably wondering about the next steps. How do you navigate the sale of your business successfully? What will you do next?
While only you can answer that last question for yourself, this article might help you answer the first. Follow these steps for a simpler restaurant sale.
- Know the Worth
Naming the price is the first step in any successful business sale. Determining the worth can be a complex system of comparing in-depth financials with local conditions.
The location will hold a lot of weight in determining the worth. Businesses in a successful business district will hold more value than those in a run-down district. For example, a restaurant in Boston, MA , where property values are high and the economy is strong, will hold more value than a restaurant in Houston, TX where cost of living is low and the economy is distressed.
Additionally, consider the depreciation of your assets. Your once state-of-the-art food service equipment won’t be nearly as valuable after you’ve used it for a few years.
No matter the worth, you’ll have to prove it with a preparation of in-depth financial reports. Create documents that show profit gains and losses, cash flow, and business offerings. What’s on this paper will either convince or dissuade buyers to invest in your business, so bolster your sales if possible.
Discuss these factors with a financial expert. They’ll help you determine a good asking price for your restaurant so you get a fair deal out of it.
- Use Strong Marketing Tactics
Once all your paperwork is in order, begin marketing your business. You can use a combination of print and online advertising. Signs in front of the building and around the neighborhood will catch the eye of interested entrepreneurs.
Social media is another great way to advertise the sale . Post it on your business page and in community group pages to get the word out. This is free and easy, and you’re likely to gain a lot of interest this way.
While you market, think about what makes your business unique and appealing. Point out these factors to draw more attention.
Make sure the building is kept in pristine condition both inside and out. When it comes to restaurants, a clean and upheld establishment is the best form of marketing.
- Consider Leasing the Building
If you own the building where you had your restaurant, you have two options: sell it or lease it out to another restaurant owner.
To sell the building, contact a real estate agent. If you’re in a hot commercial market, the property should sell quickly. If things are slow, be prepared to wait for the right buyer to come along.
Another great option is renting the building. It’s perfect if you’re unable to sell the building or if you’re interested in an investment. You can make a great long-term profit on the building by leasing it out.
The trick to a successful commercial property leasing is finding a great tenant. A bad tenant will be a headache, but a good tenant will make for a breezy investment. The best way to get good tenants is through a property management company. They offer free tenant screenings , so you’ll only get good tenants in your building.
The process of selling your restaurant can take time, but the results will be rewarding. Soon, you’ll be free to pursue new passions with your restaurant behind you.