Most important questions?
- Thread starter Rabbit
- Start date
The books and the bank records (deposits) and utility bills (power for lights and A/C)
and payroll records. Is the owner paying himself a regular wage? If that is considered in the price are you buying a business or a job.
and payroll records. Is the owner paying himself a regular wage? If that is considered in the price are you buying a business or a job.
You're not gonna like this but .... Forget the books. Do you own math.
Look at the room, how many tables, how many hours open, what would the monthly number be if the room was running at 100% for the entire hours open you calculated.
Now, take 25 % of that as your realistic income. Put that number in big type on the left side of your paper.
Now, add you monthly salary, and your employees monthly salary all the rent and utilities, every other expense you can figure, then add an additional 10% in for fun.
Subtract that number from that number on the left, and then forget the whole thing. But that's just my opinion.
Or, to figure it another way, I wouldn't be happy unless my rent was $200 dollars a month x the number of tables in the room. Not a penny more.
Look at the room, how many tables, how many hours open, what would the monthly number be if the room was running at 100% for the entire hours open you calculated.
Now, take 25 % of that as your realistic income. Put that number in big type on the left side of your paper.
Now, add you monthly salary, and your employees monthly salary all the rent and utilities, every other expense you can figure, then add an additional 10% in for fun.
Subtract that number from that number on the left, and then forget the whole thing. But that's just my opinion.
Or, to figure it another way, I wouldn't be happy unless my rent was $200 dollars a month x the number of tables in the room. Not a penny more.
your parking is your future money in the bank
I would suggest you make sure about your parking stipulations with the landlord/shopping center - check to make sure there can be no parking agreements in the future that may effect your ability to capitalize on big nights. We had a huge night club in Dallas and some people came in and tried to make lease agreements with businesses in the area for their after hours parking that we were using. They almost got away with it, take if from me, your parking is your future money in the bank, so make sure it's protected from these type situations.
Also I would recommend checking zoning and late night hour permits for the area. These laws can be tricky and potentially life threatening to a business especially in the bigger cities. We had a law suit in east Texas create a situation where several of the bars in my area would have to close at midnight after operating for years until 2AM. The issue was if the county had under 500,000 people according to the decennial census (2000) and the next census wasn't until 2010....it cost us 30k to get this overturned, so be very careful about how the laws of your state could effect your late night permit (if your state requires one like Texas).
I would suggest you make sure about your parking stipulations with the landlord/shopping center - check to make sure there can be no parking agreements in the future that may effect your ability to capitalize on big nights. We had a huge night club in Dallas and some people came in and tried to make lease agreements with businesses in the area for their after hours parking that we were using. They almost got away with it, take if from me, your parking is your future money in the bank, so make sure it's protected from these type situations.
Also I would recommend checking zoning and late night hour permits for the area. These laws can be tricky and potentially life threatening to a business especially in the bigger cities. We had a law suit in east Texas create a situation where several of the bars in my area would have to close at midnight after operating for years until 2AM. The issue was if the county had under 500,000 people according to the decennial census (2000) and the next census wasn't until 2010....it cost us 30k to get this overturned, so be very careful about how the laws of your state could effect your late night permit (if your state requires one like Texas).
Rabbit
Banned
Made a move on a lease and made it contingent on obtaining a liquor license.
7400 sq feet about 6200 wide open space and a sectioned off space for the bathrooms and soon to be kitchen and office.
great price and lease terms now just have to wait to be approved for liquor license.
going to start with about 20 tables and hopefully end up with about 30 in the end with plenty of seating and a "pit" for gambling.
working on a small budget but should be able to get it going. everything rests of the license.
7400 sq feet about 6200 wide open space and a sectioned off space for the bathrooms and soon to be kitchen and office.
great price and lease terms now just have to wait to be approved for liquor license.
going to start with about 20 tables and hopefully end up with about 30 in the end with plenty of seating and a "pit" for gambling.
working on a small budget but should be able to get it going. everything rests of the license.
Assume zero income off pool table time. Build your budget from there.
Rabbit
Banned
Whys that?
@ $4.00 a hour and 10 tables getting 2 hours a day that equals 80 dollars and if you take that times 30 days in a month you get 2400 off the big tables alone.
seems like table time can make a good size of the overhead disappear.