Orlando Business Broker Michael Shea shares 10 tips to selling your restuarant for the highest price.
Restaurants and Food Businesses represent 25% of the Businesses for Sale in Orlando. Selling Restaurants in the Orlando and Central Florida area is an art and a science as the supply of buyers is at a premium. Potential restaurant buyers move to Florida every day and some are existing restaurant owners that have to decided to look into sale opportunities in Central Florida for possible expansion. To help Restaurant Owners get the best buyers here are
1. Keep Good Books And Records:
You are not fooling anyone. Not reporting cash is not only illegal but you are hurting yourself when the day comes to sell. You should have a Point of Sale System, use quickbooks and operate properly. When you hide cash you only lose credit for the sales and leverage in negotiations.
2. Keep the Restaurant Clean and in Compliance:
Restaurant buyers are either pro’s or former consumers. The condition and facilities are important. Defering upkeep and not keeping it clean turns buyers off. Potential or what can be done is irrelevant. Just as you stage a house so too should you stage a restaurant. Stay in compliance with inspections and city and landlord requirements. Also remember that the buyer will invariably try out your facility as a secret shopper so be on your toes.
3. Have favorable Lease and insure its transferability
Orlando Business Broker Michael Shea has seen it all. It is normal occurance that a Restaurant Owner does not know the status of their lease. How long is the lease, what are the transfer fees, what are the terms for renewal, what restrictions does the landlord have if any on menu items. All these things are important to a buyer and frankly to an operator when running a business
4. Ensure Your Restaurant Is Up To Code And Licensed Properly
Follow the law and be in compliance. Insure your equipment operates to standard and that your grease traps, vents, refridgeration equipment are all operating to code. Make sure you seating is to code and in compliance with your lease and local ordinances
5. Manage Your Online Reviews
In the age of the internet reputation is everything. Truth does not matter….respond to every review, get reviews, and keep your listings up to date. It is where the consumer is so it is where the buyer is going to look first right after they hear you are for sale. Do not take it personal…there are crazies…just get positive reviews so the crazies look like real crazies.
6. Keep The Sale Confidential
Orlando Business Broker Michael Shea has a strict protocal and legal framework to maintain confidentiality throughout the sale of your business. Confidentiality is vital to your continued success. Tell no one….trust the process. Hire the right Orlando Business Broker to maintain confidentiality.
7. Produce An Equipment And Asset list of What The Sale Includes
Itemize exactly what goes in the sale and what stays with you. Personal items need to be removed or excluded from the equipment and asset list. Know whether you actually own them or are they part of the lease buildout (see real estate law)
8. Drive The Sales
Orlando Business Broker Michael Shea sees this all the time. Just cause you go to market and want to sell your Orlando Business does not mean you can lay down. Sales have to keep going steady. Any blip scares buyers, bankers, cpa’s and attorneys. Run your restaurant business like its the first day of operation.
9. Document Processes
Document recipes, processes and procedures. The secret wing sauce cant be in your head. Repeatable documented procedure eliminate doubt and insure you get the best price for your Orlando Business For Sale.
10. Retain or Mitigate the Risk associated with Key Employees.
Make the business as routine as possible and repetitive as possible. Someone being critical mitigates the value because it inserts risk in the business. If your bartender is the reason your patrons come you have a problem. The business needs to be the reason not the personality.
For more tips on selling a business with Orlando Business Broker Michael Shea call 321-287-0349 or email him at mike@tworld.com.