If you have the fire of success in your heart, you may have considered opening your own restaurant, which is one of the best ways to become your own boss. Depending on what business model you choose for your restaurant, starting this type of business can be inexpensive, and it can grow quickly if you manage it well.
However, opening a restaurant is fraught with dangers, and it can suffer some severe growing pains that may pull your business under. The statistics about restaurant survival are truly chilling: about 60% of restaurants fail in their first year, and 80% close their doors within the first five years. That’s a terrifying possibility for someone who has staked their life’s work on becoming a restaurateur, and it can scare many off from ever attempting to reach this peak of success.
However, there’s a better way to achieve your dream, and it involves purchasing a pre-existing restaurant with a proven track record of success. Let’s explore some of the most powerful reasons that you should consider buying an established restaurant instead of building one from scratch.
Starting a business from scratch requires a lot of hard work and research. While some people enjoy the challenge of creating something brand new, others would prefer to build upon already established successes, as they enjoy the possibility of nurturing something but don’t like the anxiety that comes from being unsure if their investment will pay off.
If you’re the kind of person who wants to jump right into managing a restaurant rather than building it from the ground up, purchasing a restaurant allows you to skip past the difficult growing pains. You also don’t have to find the proper equipment, contact vendors, and hire staff: all that has already been done. You’ll be able to hit the ground running as a restaurateur on day one at a much lower cost.
Returning to those dire statistics regarding restaurant failures, if you purchase a pre-existing business that is older than five years, you’ve already passed those first hurdles to success. The business has grown past its toughest years, when the owner is making back the initial investment through hard work and careful decisions.
Your business will already have much of its costliest components, such as equipment, and will have established contacts with vendors as well as much of its staff. This makes it possible to start turning a profit right away rather than waiting years for your hard work to pay off.
Before we get any further, let’s banish one common misconception about buying an established business: that every business owner sells their company because it’s failing and they wish to cut their losses. It’s absolutely not true, as business owners might sell for a variety of reasons that have nothing to do with cash flow.
For example, they may be retiring after decades of hard work and would like to diminish their responsibilities. Others might have decided to pursue other options as they’ve tired of being a restaurateur, or they may be moving and don’t want to manage a business from afar.
You can prove that your purchased business is successful, because you’ll be able to review all the facts of the business before making your decision. This includes financial statements, which will help you determine how much your investment may be worth in the future, as well as growth potentials. You can be guaranteed that you’re making a great investment because you’ll have all the facts right at your fingertips.
One of the biggest reasons that a restaurant fails is due to a poor location. The area might not get enough foot traffic to sustain it, or it may lack local amenities like parking spaces that make people more willing to grab a bite to eat. It could be in a downtrodden neighborhood that’s poorly matched to its menu; for example, you wouldn’t want to open a pricey seafood restaurant in a working class neighborhood where most people can’t afford a nice meal out at a chain restaurant.
When buying a successful business, you already know that the location is suitable for the restaurant, and it likely already has a loyal customer base. When reviewing nearby restaurants for sale, you will already know that it gets suitable foot traffic, making it all the more likely that good management will foster even greater success.
If you’re ready to step into your new role as a restaurateur, it couldn’t be easier: all you have to do is use a marketplace site to seek out available businesses that meet your needs. You can scroll through listings in your local area, which can vary from seafood restaurants to small diners, and select one that most closely matches what you’d like to manage.
It’s never been easier to pursue your entrepreneurial dream by purchasing a pre-existing business from a marketplace site. Take the leap into the food service industry at a lower cost and with less risk – before you know it, you’ll be the proud owner of a thriving restaurant, ready to wow the world with culinary splendor.