With the new financial year underway, it's a great time to sell your cafe - especially if you got all your financials sorted before June 30.
There are many buyers shopping for a business at the moment, and the majority would prefer to purchase an established enterprise, rather than starting from scratch.
Buying an established cafe is a great option, as it will have an established name and customer base, it is already trading, and the chances are the staff would be happy to stay on.
There's a fair bit to do once you decide to sell your cafe but, if you follow the processes, and seek expert advice, the whole transaction can be smooth and successful.
One of the biggest challenges in selling any business is deciding on the asking price. Most sellers will have their business professionally valued. Why? Because sometimes, when you've quite literally put blood, sweat and tears into an enterprise, it can be hard to put a price on it!
Because the seller is emotionally involved, it can be hard to see the factors that could reduce the asking price. Or, the owner might put more value on a particular feature than a prospective buyer would.
For example, let's say you've re-painted the interior of your cafe in the last six months. You think that warrants an extra $20,000 on the asking price. However, the prospective buyer who comes to view hates the colour so, knowing their will have to re-paint, wants a better deal. It's as simple as that!
While a clean, fresh appearance might well attract prospective buyers to view, the value of your business is based on the bigger picture. For example, how much profit does the cafe make? What are the assets worth? What is the cash flow?
Even the circumstances of the sale can affect the value. For example, a forced sale will probably drive down the value, as the current owner needs a quick sale, so will take an early offer.
A positive is that a cafe has tangible assets - kitchen fittings and equipment, furniture, crockery, glasses, cutlery, and so on. That makes it easier to value, and attractive to a buyer, as they feel they are getting their money's worth!
If your cafe is well established, that's another bonus. Especially if you can show consistent turnover or steady growth.
Cafes can be a great investment, especially in key locations, so they attract different types of buyers. The most obvious buyer is someone who already owns a cafe, or perhaps a chef who's ready to step up and run his own business. But a successful cafe or restaurant will also attract investors who have no intention of ever working in the business, but see it as a way of earning money.
For this reason, don't be tempted to market your business just to the hospitality trade. It is far better to advertise it where a broad range of prospective buyers can see it.
And it's a good idea to sound out your staff, to see who's keen to stay on after the sale. If an investor looks at your business, the fact that the chef and manager are both happy to stay on is a big bonus.
There's something else, too. Whilst it is strongly recommended you talk to a solicitor and your accountant, it is your choice whether you use a business broker to sell your cafe.
Many business owners these days would prefer to keep the commission in their own pocket, and are more likely to sell the business themselves, with the help of an independent organisation, like Coast to Coast Media.
Australian-owned and not affiliated with any broker or agent, Coast to Coast is totally unbiased and NEVER takes commission.
No-one knows your business better than you so, with the support of Coast to Coast's team of professionals, including graphic designers and journalists, you can tell the story of your cafe, secure a sale and walk away with more money in your pocket.
Sell your commercial property or business privately without business brokers. We advertise your business for sale or real estate listing in our go-to website, national glossy Coast to Coast Magazine and major real estate websites reaching many motivated buyers. Call now to sell your business or property 1300 793 792 or email firstname.lastname@example.org.