One of the most lucrative businesses that you can get into is the bar and restaurant industry. However, entering that industry is not as simple as opting to purchase the first pub for sale you come across and expecting profits to start rolling in. There are a number of considerations that you need to keep in mind to ensure you are making a sound financial investment. These are what will make the difference between you going out of business or steadily growing a lucrative brand. Here are some of the different things to keep in mind when contemplating pubs for sale.
Establish whether you will be buying the asset or the company
There are a couple of ways that you can go about the purchase of pubs for sale. The first way is to opt to purchase the pub as an asset. In this instance, you prevent yourself from being liable to any debts and other issues that the owner has not ironed out. If you are to assume these liabilities, it will have to be legally expressed between you and the seller. The other option when purchasing a pub would be to buy the business in its entirety. In this instance, you own everything pertaining to the pub inclusive of any liabilities that the previous owners had. Ultimately, your choice will depend on your financial flexibility as well as your long-term prospects for the pub.
Establish the assets that you will own from the pub sale
One of the benefits of opting for pubs for sale rather than constructing one from scratch is that these premises will already have various assets in use. However, it is pertinent to ensure you have enumerated all the assets that are included in the sale rather than assuming you have ownership of everything on the premises. The assets that will be related to the pub can be tangible as well as intangible. Tangible assets will include items you can touch and feel such as refrigerators, furniture and more. Intangible assets will include items such as the lease on the property, the name of the business and more.
Consider enforcing a non-compete clause for your business
This can be especially pertinent if you are new in the business and are purchasing the pub from someone who can potentially be your competition down the road. A non-compete clause will inhibit the pub seller from opening a competing establishment in close proximity to your as this would affect your return on investment. Take note that these legal documents need to be explicitly worded to avoid the chances of any loopholes being taken advantage of down the road.