Hi everyone!
This is my first post, I stumbled upon the site a few days ago so I have not read the book yet. I'm looking forward to exchanging ideas with everyone and hope I can help others some day.
I'm currently putting a rough business plan together for my first project which I call 001 (one of many).
I am thinking of buying a great Italian restaurant in a busy business district. It has been operating for 8-9 years. It's not for sale on the market but I know for a fact the owner would sell. The food is great and I have inside knowledge of the place. My offer would include the building which has 2 apartments on the second story (It might be difficult to convince the owner to sell the building). No building = No go.
Goals:
-Increase profit margin on restaurant
-Gain experience
-Length of investment could be short or long term
Facts:
-I plan on purchasing with 3-4 partners, all close friends/family (I know, I know..)
-The current chef would be a partner and manage the kitchen, he is a close friend and very talented (I know good food)
-Another partner would be the maître d'hôtel (currently in another restaurant, he has experience in restaurant management as well
-My role would be risk management, building/equipment maintenance, project organizer, etc..I have contacts in many types of business's due in part to my current job and have a very smart and talented mentor which has helped me a lot. I have worked in several restaurants in my early twenties.
Gross revenue:
-Restaurant: 800k-1M$
-Building: +80k
I estimate the business to be worth 3-400k including 500k of equipment and renovations. The building is worth over 600k. My offer will be 1M$ for everything but I'm positive he will counter offer. The numbers might be off..
I guess I'm looking for feedback and tips from someone with relevant experience. I have 20-30K to invest and will ask the same from my partners. The owner is open to owner-financing although I do not want to pay high interest and I'm not sure how this works exactly.
Thanks,
S
This is my first post, I stumbled upon the site a few days ago so I have not read the book yet. I'm looking forward to exchanging ideas with everyone and hope I can help others some day.
I'm currently putting a rough business plan together for my first project which I call 001 (one of many).
I am thinking of buying a great Italian restaurant in a busy business district. It has been operating for 8-9 years. It's not for sale on the market but I know for a fact the owner would sell. The food is great and I have inside knowledge of the place. My offer would include the building which has 2 apartments on the second story (It might be difficult to convince the owner to sell the building). No building = No go.
Goals:
-Increase profit margin on restaurant
-Gain experience
-Length of investment could be short or long term
Facts:
-I plan on purchasing with 3-4 partners, all close friends/family (I know, I know..)
-The current chef would be a partner and manage the kitchen, he is a close friend and very talented (I know good food)
-Another partner would be the maître d'hôtel (currently in another restaurant, he has experience in restaurant management as well
-My role would be risk management, building/equipment maintenance, project organizer, etc..I have contacts in many types of business's due in part to my current job and have a very smart and talented mentor which has helped me a lot. I have worked in several restaurants in my early twenties.
Gross revenue:
-Restaurant: 800k-1M$
-Building: +80k
I estimate the business to be worth 3-400k including 500k of equipment and renovations. The building is worth over 600k. My offer will be 1M$ for everything but I'm positive he will counter offer. The numbers might be off..
I guess I'm looking for feedback and tips from someone with relevant experience. I have 20-30K to invest and will ask the same from my partners. The owner is open to owner-financing although I do not want to pay high interest and I'm not sure how this works exactly.
Thanks,
S
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