Are you looking to buy or set up a Cafe? Here are 3 points from Cafe experts who have bought, run and sold dozens of Cafes over the years.
1. A good lease agreement is essential to a Cafe's success.
Finding out the details of the cafe's existing or proposed lease is an essential step to take before making an offer. How long is left on the lease? Are there options to renew?
The lease is a long term commitment which may make or break your cafe. Look into the possibility of rental increases, demolitions clauses and restrictions (e.g. alcohol restrictions). It is essential to know and set parameters for what works and what does not for your cafe specific business model prior to signing. For example, ACE team has a system which focuses on 27 crucial points in key-areas when helping aspiring cafe owners to negotiate a lease to maximise their chances for success. Have you sat down and put on paper the points which are most important to you?
2. Trial the Cafe.
Experiencing the cafe environment is particularly important if you have never owned a cafe before. It can help you decide whether you are making the right decision. For those who already owned a Cafe, trialling the cafe can be valuable as it will provide insights into the viability and growth potential of the business. It would also allow you to look at the cafe from the customers' point of view and gain a fresh perspective. It will also enable you to plan changes you may want to implement later on.
3. Make sure you have got enough funds!
"There is no point to buy a fancy car if you aren't able to afford petrol."
To start right, you'll need to cash flow the business, so it is always recommended to get a line of credit or put some cash aside. Most expenses are predictable but can still come as a surprise to an inexperienced buyer. These could include stock & equipment, as well as various guarantees, insurances, licences or fees, occurred by 3rd parties( e.g. local council or service providers).
Owning a business of your own is rewarding yet could be challenging at times. If you are passionate about Coffee, got the right attitude and hard-working, you are likely to succeed in purchasing and running a successful Cafe.
Would you benefit from minimising mistakes and have the advice of experts from the purchasing stage through to setting up and running your cafe?
Contact us on 1300 884 165 for an obligation free discovery-call, and see if we could add value to you.