I enjoyed listening to people compare stories about their characters (in W.O.W. you create a character within realms. The realms consist of two different factions, the Horde, and the Alliance. There is always a great debate on which faction is “good” and which is “bad”.) My children and I entertained ourselves by trying to figure out who played what faction. Then we would eavesdrop (sorry!) on the conversations and whoever was right would grin with glee. My son truly should have been putting money on his guesses; he would have come out with enough to buy another game!
A 3% drop in SALES! But, with a 3% drop in transactions and they responded with a PLAN. I have seen Chiropreneurs with a 50% drop in new patient production. do NOTHING.
Understand that success can be realized and when it show up it is often significantly more than was anticipated. Success will not arrive instantly from some over-hyped push-button magic, but with the necessary effort to create success it will come to you and you will be able to make money from home online.
Figure out what the seller’s true discretionary cash flow is: Take the owner’s salary, add back anything a new owner may not spend money on yearly (these are called add backs) like a car lease, a lawsuit, use of a big CPA firm, health insurance for the owner and his kid etc. That resulting number is the true cash flow of the business. That number can be multiplied from 1 through 6 times to get your asking price or value of the business. The scale of 1-6 is mostly proportionate to the age of business and the time left on premises lease. If the business is only two years old, then the price should reflect the lower end of the spectrum and vice versa.
One reason we may see the Locksmith is to get our locks changed. There’s not much we can do to avoid this part of dealing with these guys. Unless of course we change the lock ourselves! Spending an hour or so to change a lock is a bunch better than paying somebody 0 an hour to do it for you. If you aren’t so “hands on” you are better off providing your own hardware or else you may be paying an inflated price if the lock guys provide it.
If you have a good business plan, you might be able to convince your banker to loan you some money. Study the coffee business first, learn about all aspects connected to it like accounting, purchasing coffee machines, marketing, PR, management, location, and training staff. Write all those details in your business plan. Your lender will want to see a comprehensive business plan that shows you can open a coffee shop that is going to be profitable.
Then again, it’s always a gamble buying an existing business because what an owner says, what’s on the tax returns, and what is reality may be completely different things. That is where a trained eye and lots of observing come in real handy.