New cafe venture.... Advice pretty pls!

Discussion in 'Growing and Managing a Business' started by Sgill, Jul 8, 2015.

  1. Sgill

    Sgill
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    Hi everyone newbie here!
    Just after some thoughts and advice please.

    I've been looking into opening a cafe and have been trying to save as much as possible to reduce the cost of any loan I might need.
    After doing some research I've come across a cafe fully fitted not too far from me and the guy that owns is willing to rent it out fully fitted, although it was up for sale for 20k. I'm seriously considering it as I wouldn't have to take out that loan and it's basically up and ready to go! My question is what particulars should I be wary of in the lease? What questions should I ask?

    What's your thoughts peeps
    Thanks in advance
    Sarah
     
  2. Corzhens

    Corzhens
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    A cafe or any eatery for that matter should have a market base, much better if you can get a support group. Market base is like the students or young crowd that if your cafe is near a school, make the them of your cafe appropriate for them. Here in our village, the majority of residents are senior citizens and retired employees. So you can guess that a restaurant serving health food in their menu would be popular.

    For a support group, one cafe here maintains their connection with the rotary group that holds their weekly meeting in that restaurant. Without that support group, the owner said they really have no business to talk of.

    Hope that helps.
     
  3. kaian

    kaian
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    If that location and that type of business will be profitable then the owner will not have it rented at all. He or she could run it on his own and make some good money out of it. That is my own opinion I do not want to burst your bubble and starting your business from loans is not a good idea.
     
  4. tsubibo

    tsubibo
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    Location, location, location is the first thing that you should always consider. If the owner is willing to sell you the cafe, then you should be very wary. Why is he willing to sell it if it is profitable? I would spend a few days in the cafe. Looking how many people actually come in. Ask them a few questions and get some basic info.
     
  5. Ted

    Ted
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    Sarah,

    Make sure when you sign the lease that you have an option to renew your lease after one year at the same price for another 3-5 years. If they won't agree to that price then make sure it is just a slight increase in rent. You also could choose to make sure the lease has an option to buy the entire business for a predetermined price after 1 year or after 2 years or however long you want to try running the cafe. That way if your cafe is really successful, you will be able to transition into ownership without them taking advantage of your success.
     
  6. missbishi

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    My advice would be to try and negotiate a short-term lease - maybe six months of so, to determine if the business will work. If, after this point, the figures indicate that the cafe is profitable then you could consider either purchasing the premises or simply extending your tenancy agreemement.

    I would be inclined to try renting first, simply to determine whether the business is viable or not.
     

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