Buying any type of business is a huge investment in your future. A sports bar that is already established can be exciting and rewarding. However, there is more to the proposal than simply buying a business. You need to learn as much as you can before you decide to put in an offer. You need to have a plan in place that will guide you through the process of both purchasing and operating the business. Owning a sports bar may be a lot of fun, but it is also a lot of work.
Find Out the Basics
Before you decide to make an offer, you need to learn as much about the business as you can. Why is the current owner trying to sell the bar? What are the expenses in comparison to the profits? Does the establishment have a good reputation? Visit the bar often and talk to the patrons. What do they like and dislike about the place? Find out what changes they would like to see and share some of the ideas you have for the bar’s future.
Due Diligence Is a Must
Before you buy any property, you need to have it inspected and appraised. Go over the financial records and learn as much about the building as you can. Since it’s a bar, you will need to learn about the permits that may be required to sell alcohol and food. You will also have to talk to an insurance agent about obtaining sports bar insurance.
Create a Business Plan
Before you get started, you will need to have a business plan. Work with the current owner to get the average monthly expenses and estimates on potential profits. When you create a business plan, you are putting together a road map for the future. It will be your guide over the next few years, keeping you moving forward. A business plan can help you focus on the future and offer solutions to help you get through difficult times.
Find the Funding
You will need to find a way to pay for the bar. You should have at least 10% or more of the purchase price as a down payment. If you are unable to get a conventional loan for the business, you may be able to go through the Small Business Administration to obtain the funding you need. If you have already created a viable business plan, this will go a long way in getting you the funding you need to get started.
Negotiate a Viable Deal
Use the sale price as a bargaining tool. Offer low enough to give yourself a little room to negotiate. Even if the seller is firm on their price, they may come down a little if they are motivated to sell. If you know what you are buying, it will be up to you to offer a fair price. If the owner needs to sell or simply needs the money, they may take the first bid you offer.
When you make the decision to invest in a sports bar, you will need to have sufficient sports bar insurance. Contact us at RMS Insurance Brokerage, LLC and talk to one of our professional agents. We are the experts when it comes to hospitality insurance. Call today to schedule a consultation!