Trying to sell my Business

[bagels]

Trading as a Bagel and Coffee shop since 2020 in a 16th charm filled building in the heart of a historic market town, I am unfortunately selling the business due to ill health. All information necessary for a quick sale is available as a nervous first time buyer pulled out today. Turnover c.84k. Currently operated as take away but potential for at least 20 covers . Lease information, plans, inventory, CPSE forms all completed. 8 years remaining of a 10 year lease . Under stamp duty threshold. Rent 13,250 annually. Low costs. Sale all ready to go. Looking for serious buyers. Can anyone help? Even by suggesting appropriate forums? Or know of anyone else interested.

 

[pentel]

Is the business VAT registered?

 

[Mark T Jones]

Your target buyer here is likely to be a local or retiring person/couple who want to take on a 'lifestyle' project - so your avenues should reflect that.

In harsh, commercial terms the value is approximately zero I'm afraid, but there are always some who will want to buy the dream.

 

[Clinton]

"charm filled building", "historic market town" etc is nonsense and doesn't help to sell your business!

Nobody's going to move from the other side of the country to buy your £84K turnover business. It's going to be a local and they already know it's a historic market town.

It's not about finding appropriate forums. You can post for free at this location on Reddit. But I can almost guarantee that's not going to generate a buyer for you as nobody there is looking to buy a job in no historic market town.

It's very difficult to sell this kind of business. Maybe start here on my website, learn a bit about the main difficulties with selling businesses this size.

Then forget about finding forums / websites / online marketplaces. Selling businesses like this usually requires some hard graft. Speak to locals about it, spread the word in your town. Tell your neighouring businesses. Attend networking meetings and tell everyone that you're looking to sell. At the expense of losing some customers, stick a sign up outside the premises saying the business is for sale. Bang the drum locally.

Good luck.

<added: cross posted with Mark. Sorry, Mark, I didn't nick your idea of local buyer>

 

[fisicx]

What’s the profit after all the wages have been paid?

If you stepped back would the business continue or are you a key player necessary for success?

 

[Lisa Thomas]

Yes, I was wondering if there's any profit in it - that's the key here.

 

[Clinton]

What’s the profit after all the wages have been paid?

Yes, I was wondering if there's any profit in it...

There's no 'profit'. It goes without saying.

Maybe there's a bit of free cash to cover the cost of the owner's time at minimum wage or thereabouts. If there is, that'll be it.

 

[Paul Kelly ICHYB]

£84k turnover (just under the VAT threshold!!)
Minus rent @£13,250
Will assume no rates (SBRR)
Cost @ 25% of goods - £21k
Utilities??? £2000
GP before staff - £48k

1 Staff @ NMW - £25000
Staff costs - £3000

Doesn't leave much for the owners takings.

As mentioned, this isn't a business, it is owning a (stressful?) job!

 

[bagels]

There's no 'profit'. It goes without saying.

Maybe there's a bit of free cash to cover the cost of the owner's time at minimum wage or thereabouts. If there is, that'll be it.

There is a small profit , after my salary, and im the only member of staff. Staff would be necessary if the whole building was utilised as a cafe rather than take away. Thanks for your insights.

 

[bagels]

Yes, I was wondering if there's any profit in it - that's the key here.

There is a small under lying profit. After salary of myself. But its not being maximised being run as a one man band and take away

 

[fisicx]

Aha! This means it’s totally dependant on you. It means someone is buying a job. If you employed someone to run the store it would be a much more attractive proposition.

And you can’t sell potential. All you can sell is the current situation. Put signs up in the window and pay for billboards and hopefully someone local will make you an offer. Expect this offer to be far less than you would like to get.

 

[Mark T Jones]

There is a small profit , after my salary, and im the only member of staff. Staff would be necessary if the whole building was utilised as a cafe rather than take away. Thanks for your insights.

Keep it simple

You aren't selling a big business profit-making opportunity, you are selling a lifestyle business.

If you start going down the route of 'profit potential' you will get embroiled in debates you really don't need.

It's a nice way for someone to make a living...

 

[pentel]

If the business is not VAT registered which seems likely then the profit / wage will be greatly reduced or even eliminated should the business grow unless prices can be increased. The buyer would be taking on the liability of the remainder of the lease (£106,000).

You aren't selling a big business profit-making opportunity, you are selling a lifestyle business.

Hope you manage to get out of this asap.

 

[Gecko001]

OP your business is obviously worth something to somebody, if only for the location as a coffee shop, as you have been making a profit for several years and the reason for selling has nothing to do with lack of profit.

Clinton advises to sell locally. That should be your first port of call of course. Do you mind telling us if the potential buyer who pulled out was local or from afar?

 

[pentel]

With regards to the lease please be aware that assigning the lease can mean that you effectively become a guarantor for the new leaseholder. Please take legal advice.

 

[Lisa Thomas]

With regards to the lease please be aware that assigning the lease can mean that you effectively become a guarantor for the new leaseholder. Please take legal advice.

Does it...?

 

[pentel]

Does it...?

It effectively can depending on the wording of the original lease. We had a leased property and when the lease was assigned if the new leaseholder defaulted then the lease reverted to us.