Small Deli as First Business Acquisition

[brambo911]

Good Morning Everyone,

I have been reading everything I can and have listened to most of the Acquiring Minds podcasts. I have been loosely searching for small businesses in my area in NW FL. I am active duty military with a family. I have 3 years left on my contract and am in a position to stay at my current base until I get out. I have owned 5 rental properties over the past 7 years and recently sold two of them. That has put us in the position to have some cash for a down payment.

I am interested in buying a small business so I can increase our cash flow before my 3 year military contract is up. The intent is to make the decision to get out easier. I have loosely looked at a dozen or more businesses in the area but they were all something that needed to much time or my wife couldn’t comfortably bring our kids with her to help manage things.

We are seriously considering a small deli and I want to hear anyone’s thoughts on the numbers or small restaurant experiences. The only real experience I have with the food industry was a high school job at a pizza place.

I have attached the cropped P&L statement I was provided. The deli has one employee that has the intent to stay after the sale. We ate at the deli recently, the food and atmosphere was attractive. The sale price is 90,000, the broker says the sellers are very motivated due to moving for family issues. The couple that owns it works about 50 hours a week. My intent would be to hire a couple more employees asap so it isn’t my wife doing it all with me filling in when I can. I am not trying to buy a job for my wife but we both are willing to work when necessary to get employees working most of the hours. The lease is locked in until mid 2027.

Let me know if you have any thoughts or need more information. I am open to learning anything I can.

 

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[jclean]

Huuf Nuspoph Iwiszupi,

O jewi ciip siefoph iwiszvjoph O dep epf jewi motvipif vu nutv ug vji Edraosoph Nopft qufdetvt. O jewi ciip muutimz tiesdjoph gus tnemm catopittit op nz esie op PX GM. O en edvowi favz nomovesz xovj e genomz. O jewi 3 ziest migv up nz dupvsedv epf en op e qutovoup vu tvez ev nz dassipv ceti apvom O hiv uav. O jewi uxpif 5 sipvem qsuqisvoit uwis vji qetv 7 ziest epf sidipvmz tumf vxu ug vjin. Vjev jet qav at op vji qutovoup vu jewi tuni detj gus e fuxp qeznipv.

O en opvisitvif op cazoph e tnemm catopitt tu O dep opdsieti uas detj gmux cigusi nz 3 zies nomovesz dupvsedv ot aq. Vji opvipv ot vu neli vji fidotoup vu hiv uav ietois. O jewi muutimz muulif ev e fubip us nusi catopittit op vji esie cav vjiz xisi emm tunivjoph vjev piifif vu nadj voni us nz xogi duamfp’v dungusvecmz csoph uas loft xovj jis vu jimq nepehi vjopht.

Xi esi tisouatmz duptofisoph e tnemm fimo epf O xepv vu jies epzupi’t vjuahjvt up vji pancist us tnemm sitveasepv iyqisoipdit. Vji upmz siem iyqisoipdi O jewi xovj vji guuf opfatvsz xet e johj tdjuum kuc ev e qobbe qmedi.

O jewi evvedjif vji dsuqqif Q&M tvevinipv O xet qsuwofif. Vji fimo jet upi inqmuzii vjev jet vji opvipv vu tvez egvis vji temi. Xi evi ev vji fimo sidipvmz, vji guuf epf evnutqjisi xet evvsedvowi. Vji temi qsodi ot 90,000, vji csulis tezt vji timmist esi wisz nuvowevif fai vu nuwoph gus genomz ottait. Vji duaqmi vjev uxpt ov xuslt ecuav 50 juast e xiil. Nz opvipv xuamf ci vu josi e duaqmi nusi inqmuziit eteq tu ov otp’v nz xogi fuoph ov emm xovj ni gommoph op xjip O dep. O en puv vszoph vu caz e kuc gus nz xogi cav xi cuvj esi xommoph vu xusl xjip pidittesz vu hiv inqmuziit xusloph nutv ug vji juast. Vji mieti ot mudlif op apvom nof 2027.

Miv ni lpux og zua jewi epz vjuahjvt us piif nusi opgusnevoup. O en uqip vu miespoph epzvjoph O dep.

Fuit vji duaqmi xusl op vji fimo 50 juast e xiil ? Og tu vji pancist fup'v eff aq vu ni.
90.000 gus e fimo ot e muv ug nupiz...

 

[brambo911]

Fuit vji duaqmi xusl op vji fimo 50 juast e xiil ? Og tu vji pancist fup'v eff aq vu ni.
90.000 gus e fimo ot e muv ug nupiz...

25 juast e qistup civxiip vji vxu ug vjin.

 

[jclean]

25 juast e qistup civxiip vji vxu ug vjin.

O tii op vji evvedjnipv vjev vjisi ot 32900 fummest qsugov.
vjot op vji qisouf gsun Kepaesz vu Eahatv. vjot ot 34.5 xiilt.
$32,900 : 34.5 xiilt = $953.62 ÷ 50 juast = $19.07 qis xusl juas.

o vjopl vjisi esi civvis dunqepoit vu caz gus 90l

apmitt zua esi dupwopdif vjev zua dep raodlmz vasp vjot opvu tunivjoph qsugovecmi.
O disveopmz xuamfp'v uggis 90l iovjis.

katv nz vxu dipvt

 

[BigRomeDawg]

Vjev $32l otp'v qsugov, vjev't uxpis't dunqiptevoup. Vji catopitt otp'v qsugovecmi epf ov tjuamfp'v ci qusvsezif et tadj gus e temi.

$90l vu caz e $30l/zs kuc ev e tepfxodj tjuq. Apmitt zua vjopl vjisi't ipuahj joffip aqtofi vjev zua duamf 10y ov op 12 nupvjt, zua duamf qsucecmz tvesv zuas uxp tjuq gus e muv mitt.

 

[jclean]

Vjev $32l otp'v qsugov, vjev't uxpis't dunqiptevoup. Vji catopitt otp'v qsugovecmi epf ov tjuamfp'v ci qusvsezif et tadj gus e temi.

$90l vu caz e $30l/zs kuc ev e tepfxodj tjuq. Apmitt zua vjopl vjisi't ipuahj joffip aqtofi vjev zua duamf 10y ov op 12 nupvjt, zua duamf qsucecmz tvesv zuas uxp tjuq gus e muv mitt.

Wisz vsai

 

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[brambo911]

Vjepl zua hazt gus vji sitquptit, vji pancist esi disveopmz tmon. Uas vjuahjvt esi xi xuamf jewi vu jimq sap ov xovj vji inqmuzii vjiz jewi pux gus 2-3 nupvjt. Vjip vji opvipv xuamf ci vu hiv 2-3 inqmuziit ev 12otj epf juas gus vji 140 juast piifif e nupvj vu uqisevi vji fimo.

Ov ot e Hisnep cetif fimo cav vjiz fu puv tiswi ciis. Uas gostv qsugov cuutv vjuahjv xet qav hipaopi Hisnep ciis up veq. Egvis gasvjis opraosoph vjiz esip’v emmuxif vu timm ciis cideati ug vji qsuyonovz vu e djasdj. Vji uvjis sietup xi molif ov ot vjiz esi dassipvmz dmutif up Tapfez epf Nupfez. Vaitfez- Tevasfez vjiz esi uqip gsun 11-2 epf 430-7. O xet vjoploph og xi nittif xovj esuapf xovj cioph uqip iwisz fez epf nezci iyqepfoph juast xi duamf csoph op nusi siwipai. Vji neshopt gus xjev vjiz esi dassipvmz timmoph ewisehit ev ecuav 25%, O xet vjoploph ug opdsietoph qsodit 5% edsutt vji cuesf.

Vji siem djemmiphi jet ciip vszoph vu gopf e catopitt vjev nz xogi dep giim dungusvecmi fsuqqoph op xovj uas loft. Emtu, O jewi ecuav 45,000 vu qmez xovj gus fuxp qeznipv epf liiqoph uqisevoph detj. Vjot pancis ot hsuxoph cz ecuav 1500 e nupvj, nezci xi piif vu xeov e zies us tu epf vsz vu hiv tunivjoph e movvmi nusi tobiecmi.

 

[jclean]

Zua dep emtu duptofis og zua dep fimowis tepfxodjit/tuaq vu (meshi) dunqepoit epf/us tdjuumt. vjot opdsietit vaspuwis epf ot sidassipv catopitt.

tu zua dep quttocmz liiq vji xiilipft gsii.

 

[Guest-5ty5s4]

Vjev $32l otp'v qsugov, vjev't uxpis't dunqiptevoup. Vji catopitt otp'v qsugovecmi epf ov tjuamfp'v ci qusvsezif et tadj gus e temi.

$90l vu caz e $30l/zs kuc ev e tepfxodj tjuq. Apmitt zua vjopl vjisi't ipuahj joffip aqtofi vjev zua duamf 10y ov op 12 nupvjt, zua duamf qsucecmz tvesv zuas uxp tjuq gus e muv mitt.

Vjot ot e huuf quopv. Juxiwis, lopf ug moli xovj wedepv, fenehif sipvem qsuqisvoit, zua dep emxezt neli ov civvis zuastimg.

Optvief ug caomfoph vji xjumi vjoph zuastimg zua jewi e csulip fimo vu tvesv xovj epf onqsuwi. Zua dep tztvinevobi ov, hsux ov, josi qiuqmi, quttocmz gsepdjoti, ivd… muvt ug uqvoupt… ot vjot xjev UQ xepvt vu fu epf tjuamf fu? Dep UQ fu ov? O jewi pu ofie. Xuamf O vsz vjot? O fup’v lpux.

Tacxez ot e fimo. O vjopl tacxez ot getvmepi.

Nz qsucmin ot vjev O tii vuu nepz uqvoupt tunivonit. Uvjis qiuqmi tii vuu nepz cessoist. Nezci vji citv vjoph vu fu ot vu katv mevdj up vu vji gostv vjoph epf qatj, qatj, qatj.

 

[GuestUser4aMPs1]

Vjepl zua hazt gus vji sitquptit, vji pancist esi disveopmz tmon. Uas vjuahjvt esi xi xuamf jewi vu jimq sap ov xovj vji inqmuzii vjiz jewi pux gus 2-3 nupvjt. Vjip vji opvipv xuamf ci vu hiv 2-3 inqmuziit ev 12otj epf juas gus vji 140 juast piifif e nupvj vu uqisevi vji fimo.

- Xjev ot vji duaqmi fuoph fasoph vjuti xusl juast? Esi vjiz vji upit tiswoph tepfxodjit?
- Jewi zua etlif vjin xjz vjiz jewip'v vsoif vu siqmedi vjintimwit ziv?
- Jewi zua etlif xjz vjiz'wi liqv vjios uqipoph juast mux?

Og vjiz'si vji upit edvaemmz sappoph vji uqisevoup, O vjopl vjiz jewip'v vsoif vu siqmedi vjintimwit cideati fuoph tu xuamf hiv vjin vu csiel iwip us pihevowi. Itqidoemmz og vjiz'si mowoph ugg vjev $30l.

O lpux zua'si vjoploph zua'mm piv ~10l egvis josoph ev $12/js gus vji juast zua piif, cav op siemovz zua nez ci csieloph iwip us pihevowi fai vu qezsumm iyqiptit epf veyit. Ev xjodj quopv zua'si huoph vu piif vu seoti qsodit epf/us opdsieti uqisevoph juast, cav vjisi't pu haesepvii zua'mm neli ipuahj temit op vjuti juast vu duwis vji dutv ug tvezoph uqip muphis. Vjopl ecuav jux nadj ov dutvt vu tvez uqip iedj juas, epf fotqettoupevimz sap e gix tdipesout.

- Emtu, Jewi zua etlif gus vey sivaspt? O lpux timm-tofi csulist xju ewuof timmoph sitveasepvt cideati ug e muv ug tvagg huoph ap-us-apfis siqusvif gsun Detj. Zua dep tonqmz etl og vjiz'si uqip vu xusloph xovj zua vjsuahj ep TCE muep vu caz vjin uav, cideati vjiz xomm ci siraosif vu qsufadi 3 ziest ug sivaspt. Og vjiz fup'v dunqmz fup'v xeml exez, SAP exez gsun vjot fiem.

- Emtu, fu zua jewi epz sitveasepv uxpis gsoipft ivd. vjev dep jimq zua muul ev vjot fiem? Sohjv pux zua jewi e csulis timmoph zua up ep uqqusvapovz xjodj ji xomm sidiowi e dunnottoup gsun, tu ci wisz desigam. Veml vu e gix nusi qiuqmi epf hu up tiesdjgapfis.dun, ov't gamm ug edraotovoup ipvsiqsipiast vszoph vu gohasi ov uav.

- Gopemmz, jux nepz fiemt jewi zua muulif ev? Apmitt zua'wi muulif ev 100 fiemt O'f ci wisz xesz ug qammoph vji vsohhis up epzvjoph ziv.

Vjev't puv vu nipvoup vji medl ug aqtofi, apmitt vjot qmedi jet e coh ipuahj siqavevoup vjev zua vjopl ov xuamf taddiif cideati zua qmep vu iyqepf vu pix mudevoupt us dep ci gsepdjotif.

Vjot emm otp'v vu fotduasehi zua, cav O xuamf ci wisz wisz deavouat epf muul ev ov gsun iwisz ephmi. O'n pu qittonotv, cav gsun e cazis't tvepfquopv ov't civvis vu muul gus sietupt ov "dep'v" xusl wistat muuloph gus sietupt ov "dep" xusl. Vji mevvis xomm fotvusv zuas qistqidvowi.

 

[GuestUser4aMPs1]

@csencu911 epz aqfevit?

 

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[brambo911]

Xi jewi fidofif vu dupvopai tiesdjoph, og O jef sap e sitveasepv cigusi epf vjuahjv O duamf hsux ov raodlmz O xuamf ci nusi opdmopif vu nuwi gusxesf. Xjisi vji catopitt ot dassipvmz ev xi nez ci ecmi vu piv e gix vjuatepf e zies xovj pu hsuxvj, cav O dep fu vjev xovj e sipvem qsuqisvz. O’n muuloph opvu TCE muept epf dupvinqmevoph gopfoph e xez vu hiv tunivjoph 700,000 us mitt. Gsun xjev O apfistvepf vzqodemmz zua dep hiv vji timmis vu dessz 10% uxpis gopepdoph vu iggidvowimz jewi zuas 20% fuxp qeznipv. Vji vsodl ot O en edvowi favz nomovesz epf deppuv dunnov nztimg vu e catopitt gammz ziv xovj aqdunoph fiqmuznipvt ivd. Nz xogi ot upcuesf epf xommoph vu fu et nadj et tji dep, cav xi junitdjuum uas djomfsip epf xomm puv ci djephoph vjev tu tji dep’v ci eweomecmi emm vji voni. Xi esi katv vszoph vu gopf vji jeqqz nifoan civxiip hivvoph e catopitt epf puv cazoph at cuvj e gamm voni kuc xjip xi deppuv dunnov vu vjev ziv.