Meh. You don't need much of a buyer for an $80k business. Well worth skipping the damned broker.
I know a few business brokers and yes I would list an $80k business with one.
Why? Most people shopping through a business broker are going to be legit and not a waste of my time. And most people selling through a business broker are going to have some business sense, thus the business is not going to be a giant mess.
Yea, and for every Anand there's 10,000 others that would be doing better if they managed a Mcdonalds.
Yeah owning a business sucks, ask Anand. <end sarcasm>
Meh. You don't need much of a buyer for an $80k business. Well worth skipping the damned broker.
Well, his is a special case because he was able to convince a bunch of power-hungry chumps to moderate his site for free. Most businesses don't get free workers.
I know, ATOT baller, $80k is couch change. For most people $80k is a fortune. Especially for people who are looking on craigslist for a business.
I know this from personal experience. My father has been self employed for nearly 40 years. He started out by owning furniture stores, and then moved into the food business years later. The furniture businesses he had were never really profitable, and he only became successful with the last cafe he had with my mother. My mom was the one who ran it. They had it for 12 years. When my mom passed away he sold it. That was 3 ago. I've heard the new owners are doing really well.People say this a lot, but I don't buy it. Full responsibility 100% of the time, and you're lucky if you make as much as your highest paid employee.
I've thought I wouldn't mind owning a grocery with pre-made food available, but that's 100% ownership, including the property(paid off), and me living on the property. With that setup, I wouldn't have to be "successful". Work would be home, and I'd only have to make enough to pay taxes, and a bit more to live on. I think I could manage that with little stress, and I could see a store that sold things *I* was interested in.
Meh. You don't need much of a buyer for an $80k business. Well worth skipping the damned broker.
$80k asking price. I would stop right there. I have a rule. Never purchase a cheap business unless I know that business inside out. It's cheap for a reason. Any restaurant business priced < $250k is really not worth looking at.
That $7-8k a week is total sales. Basically $1k sales a day. Multiply this by 365 days and you're only looking at $365k yearly sales. At 10% profit, you're looking at $36k profit a year and that's probably if you worked the business yourself. And that's being generous. I bet this business nets less than $2k a month or $24k a year. And that's owner operated. Absentee owner might suffer a loss with this business.
No restaurant is going to have a 100 percent profit margin. on $8k a week i revenue, maybe you'll have $1k in profit for you, if it's run efficiently.
And OP, anyone who would list their business for sale on craigslists and not through a legit business broker, is not someone I would do business with.
If this business was making so much, it would be easy for them to sell it. And if he was making $200k a year (profit after expenses), the business would probably be asking close to a million as an asking price.
Why are you assuming a 10% margin? I've always understood pizzerias to be very profitable businesses.
After paying your employees.......paying vendors...maintenance of the building....being at your store 24/7 or at least being available......maintenance of the company vehicles...insurance...lolol
There is a Round Table Pizza in Hollister, California that grosses $1,000.000.00 a year.....think about the work involved...hiring, scheduling......etc...
You mean 50% margin? A pizzeria is technically a restaurant, but I don't think it's generally anywhere near as difficult to manage as a traditional sit-down restaurant with table service.
I work in Hollister, are you there too? I suspect the owners burned down the neighborhood pizza a few doors down to wipe out competition
Don't forget your local crime syndicate tax. Fat Tony wont be happy if you're late with his money.
Well, his is a special case because he was able to convince a bunch of power-hungry chumps to moderate his site for free. Most businesses don't get free workers.
No one's making a 50% margin. Walmart is about a 3% profit margin and Apple pulls 20% on a good day. If you're lucky, you might be somewhere in between.
Pizza shop on the boardwalk in Ocean City was cited for tax invasion last winter.
You think people would be lining up to buy some shitty pizzeria in Reading? As someone pointed out above, it's a terrible city, it's not really close to anything, and there's little chance for any kind of economic growth there. If anything, I'd say $80k is over priced. He posted the ad a month ago and it's still up.
10% margin is a number pulled out of one's ass but a pretty standard number for your average business. Many businesses are lower than that. a few are higher. Unless you're a fancy sit-down restaurant, you're not going to be pulling more than 10% profit. A pizza place in Nowhere, PA might be 4% profit. Or maybe they're at a loss. Definitely find out before buying the business.
No one's making a 50% margin. Walmart is about a 3% profit margin and Apple pulls 20% on a good day. If you're lucky, you might be somewhere in between.
If you have to ask, you have no buisness even thinking about it.
Pizza shop on the boardwalk in Ocean City was cited for tax evasion last winter.
Between 2007-2011 Manco Manco reportedly hid over $1 million dollars! This is a pizza place that does the majority of its business in the summer. It can pay off!
http://philadelphia.cbslocal.com/20...zeria-owners-arrested-on-tax-evasion-charges/
I was making a nice 40% margin on my Ebay bidness selling stuff I picked up here from Echumps and my connection at Dell.
You think people would be lining up to buy some shitty pizzeria in Reading? As someone pointed out above, it's a terrible city, it's not really close to anything, and there's little chance for any kind of economic growth there. If anything, I'd say $80k is over priced. He posted the ad a month ago and it's still up.