re: business for sale

aspasp1

hi experts,

I got an offer for a kebab shop. the business is only a year old. The man is looking for 50K and the sales are around 4500/week. the rent is 500/week. Do you think, there is any money to be made in this? when can i expect to break even if I am going ahead.

aspasp1

Gloomtastic!

There are probably people on here who have more experience in the catering business than me but here's my 2cent worth....

How do you know he's taking €4,500 a week? You need to see evidence other than what he says. Bank statements, invoices from suppliers, you sitting in his shop for a couple of Friday/Saturday nights keeping note of business coming through the door.

If it doesn't add up to what he says it is then you can either walk away or make him a lower offer.

Good luck!

YellowSheep

First reaction:

4500 turnover minus 21%VAT equals 3750 net divided by 500 equals 13.3% rent which is about 4.5% to high. (Does this 500 include council etc)

Next:
Where is the store located?
Have you seen his books?

Please feel free to PM me if you need more detailed info. FOC !

Oliver

aspasp1

Someone else bought it.