ice cream parlour - spain

torregolf

Hi, I own a commercial unit in a busy centre in Spain and would really like to open an ice cream parlour there. Problem is I cannot be there to manage it - would like to here some suggestions; should I set it up and try and lease as going concern or is it a crazy idea to think that I could get an honest manager to run it successfully.

shoutman

That looks like a tough one alright. If I were in your shoes I would find it difficult to trust someone unknown to manage a valuable asset like that.

Bandara

can you be there at all torregolf, i.e. do you live in Spain?

You could lock it down very tightly and make theft etc very very difficult, there is also remote real time viewing of the security cameras easily available (I have access from my laptop of my premises), you can also have the manager have to do online daily reporting to a secure website with daily lodgement details, lodgement cheque numbers, credit card batch numbers, shorts & overs etc. which will allow you to check via online banking so any issues will be identified by you very quickly. Monthy stocktakes and doing full accounts every 3 months are other things I'd implement as you'll see margin issues very quickly.

if you do it right the security aspect should not be an issue, its more the day to day work ethic of the person who knows that your never just going to walk in the door that I'd be worried about. However if you structure their salary towards hitting targets and maybe look at offering them 10% equity stake in the business over a five year period (1% per year and a final 5% at the completion of year 5, with an added option of buying another 10% from you after 5 years), then you may get someone who sees it as a big chance for themselves and runs it with the pride of an owner.

It would be worth giving up 10% of the business for it being run well and made profitable in my opinion, especially when the circumstances mean you are not going to be there. If its badly run or your being stolen from it will cost a lot more than giving 10% away would.

good luck with it anyway

Trump

The fact that you will not be in the country I think it is a bad idea as it will cause you many sleepless nights.

My advice would be to rent the unit then move on to the next deal.