Sales Forecast Question

Discussion in 'Growing and Managing a Business' started by bothamspy, Apr 29, 2010.

  1. bothamspy

    bothamspy
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    Thanks To All Who Assist.

    I am in the process of purchasing a food business and trying to work out monthly sales
    I was given the following numbers for the monthly rent:

    Tenant paying $3.41 /sf for the 2,109 sf...and 2 % of the gross....so combined...$19,069 / month

    From my calculations
    $3.41 x 2,109 sqft = $7,191.69

    $19,069 - $7,191.69 = $11,877.31 = 2% of gross

    Does this mean that Monthly gross = $ 593,865.50?

    Thanks For help!
     
  2. seanstevens

    seanstevens
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    If you are attempting to buy a business ask them for the past 3 years financial accounts, copy of the contracts etc etc. You cannot base any kind of purchase on a few numbers here and there. Sales numbers are irrelevant if you do not know what the monthly spend is on everything else.
     
  3. Fergal

    Fergal
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    I'd agree with Sean, if you are considering buying a business you need the seller to give you full disclosure of the figures. It's too big a deal, to be making assumptions or estimates based on limited numbers. Ask the seller for copies of their audited accounts and for copies of their bank statements.
     

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