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Buying a Restaraunt


Koolblue13

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Well, ya'll have been very helpful in the past, so i'm throwing this out there. I'm trying to buy a local bar, that isn't doing to well. I have a few investers and the owner approached me about buying it.

I've been trying to put together a business model and figure out all of my costs, but it's mostly just scribble and random thoughts. I don't know how to put it all together, like I need too. I have a couple of friends who do own thier own places and are being more than supportive, but I need to be able to bring a professional looking business model to them. This is about the only part of the business I havn't done, own.

Is there a program I can use for this? I'm not looking for suggestions here on how I should run it or asking to be told about the 99% failure rate either,I'm aware. It's just the financial stuffs and the paper work I don't know how to tie together, as of right now, it's a little beyond me. I think I have a lawyer I can use, as well as an adviser, but I need to get over this hurdle first and don't have the cash to dole out to have someone else do it.

If anybody has any experence with this, I would appriciate any help. It's a real ***** for me right now, especially working 70+ hours a week because of the hollidays. Thanks ya'll.

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Start here:

http://www.sba.gov/smallbusinessplanner/index.html

You might also look at colleges in your area to see if they have any support for small business planning, my local college used to give seminars and such on exactly what you're looking for. And if you're going to be fully running/managing the business, it couldn't hurt to take some business classes (accounting, HR management etc)

Also, your local chamber of commerce might be able to help.

I wouldn't use a lawyer for a business plan (except as far as how regulations and such impact the plan) as most of the work falls more under the umbrella of "finance".

Also, google is your friend you just need to know what to ask him, I found the above by searching for "business plan".

Good luck with it.

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If you organize as a corporate entity, it probably makes sense to organize the ownership of the bar as an LLC or as an S-Corp. I suggest considering the following issues:

1. Will there be a mandatory buy/sell?

2. Do you want drag/tag along rights?

3. Who is going to be the manager?

4. What are the transfer rights of the interests in the investment?

5. How will you allocate expenses?

6. Are there preferrential redemption/distribution rights?

7. What's your capital contribution/committment to put more money into the business?

8. What are your voting rights with respect to major decisions?

9. When will you wind up the business? Who decides to do that?

These are issues that a lawyer could help you through.

That's just a list off of the top of my head--I'm sure there are others.

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In a bar, your biggest loss of revenue is bartenders giving away/pouring too much liquor/stealing from drink sales. Thats your biggest thing you need to watch expense wise. Who will manage the bar at nights?

Myself and a friend will do a lot of the bartending, until our business picks up. Then, I have friends who will work for me. I know what you're saying though.

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