Tips to Get the Best Price When Selling Your Restaurant
/So, you’ve decided to sell your restaurant.
No shame in that. Deciding to sell is not always a consequence of something gone wrong with the business. Many enter the restaurant business thinking that they will run their restaurant until retirement, but the rarity of this scenario is why many establishments end up deciding to sell. Whether it be because of a change in circumstances, a discovery that running a restaurant is not for you or wanting to cash out some profits after building a restaurant up, it is worth noting that it takes marketing savvy, knowledge of your business, and sometimes even professional help to discover the best price for your restaurant.
Here are six helpful tips on how to get the best price for selling your restaurant.
1. Presentation is Everything
When planning to sell your restaurant, the first thing you will want to do is make your restaurant more appealing to potential buyers. If you currently don’t have your own website or social page, then building up an online presence is absolutely vital. An attractive website brings in customers, and a busy atmosphere will attract potential buyers willing to pay top dollar.
Another thing you should consider is making sure all of your equipment is up to date. The better the condition a restaurant is in when it goes on the market, the higher the price it will fetch. Of course, you don’t have to update everything at once, but dedicating a portion of your budget to upgrading and replacing equipment will definitely pay off.
2. Organize your Financials
The Financials are a critical piece in selling any business. It would be wise to plan on sharing a year’s worth of financial records with prospective buyers. According to professional business owners, one of the most common reasons that businesses fail to sell or sell for less than they are worth is because the owners’ financial records are inaccurate, incomplete, or poorly maintained. Properly presented finances can have a huge positive impact on a sale.
3. Understand your Commercial Lease
You should begin to ask yourself the necessary questions about your lease as early on in the selling process as applicable. Is your restaurant location under a lease agreement? Do you own all the expensive kitchen equipment or is it leased?
If your restaurant is established in a leased space, be sure to calculate all the factors concerning lease such as expiration date, and the lease extension option. It would be a good idea to talk to your landlord about your plans to sell, and ask them about extending the lease, since a lease that is already locked in place can provide security for a prospective buyer.
4. Know What Your Restaurant is Worth
Selecting the right price for your restaurant can be difficult; too high and you might be waiting years to sell, too low and you’ll be losing out on money from the sale! It is essential that you come up with a realistic and well-argued price. You can find an expert to help you establish a selling price, including real estate brokers who are highly experienced in these matters.
5. Hiring a Restaurant Broker
Consider hiring a professional restaurant broker. While you may have the experience necessary to pull off the sale of your restaurant without outside help, there are certain advantages to brokers that you wouldn’t otherwise have. These brokers typically know where to look for quality buyers, or else they have an established network of potential buyers and thus find a buyer fairly quickly.
Another advantage not to be overlooked is that a restaurant broker can ensure that your sale preparations are kept discreet. A good business broker knows that confidentiality is key, which is good since you probably don’t want your employees to find out that your restaurant is for sale before any plans are set in stone.
6. Marketing to Sell your Restaurant
You might already know the biggest selling points of your business, or maybe this is a good opportunity to reevaluate your business from an outside perspective. It is important to assess factors such as location, or what makes your restaurant unique.
A stage or a patio, the potential to be a venue for events such as weddings or anniversaries, a view, a database, all of these things should be taken into account when marketing for your restaurant. Don’t be too quick to disregard the vitality of having a website, a blog, or email marketing. Social media marketing is one of the most powerful tools for any business. It can put your restaurant in front of thousands of potential customers and goes beyond just brand awareness; it can also help you to gain some insight into your target consumer.