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10
great reasons to buy an existing restaurant versus starting
from scratch
 1. Immediate operation.
Starting a new restaurant involves considerable time
and effort. It can often take several years to reach profitability.
2. Easier financing. Financing is easier to obtain because an
existing restaurant has
a track record. Many sellers will often finance all or part of the sale.
3. Existing customers and suppliers. Relationships with them have been
established. They already do business with you.
4. Eliminate competition. Buying an existing restaurant may eliminate an
eventual competitor.
5. Hands-on training. Most sellers will provide training. They will show you
how to run the restaurant and share their inside knowledge.
6. Existing infrastructure. Management team and operating systems are already in
place.
7. It’s cheaper. When all startup costs are considered (ie.
marketing costs,
opportunity costs, high risk of failure etc.), buying an existing restaurant
is usually much cheaper than starting from scratch.
8. Everything is negotiable. When purchasing an existing
restaurant versus any
other option, you are in the driver’s seat. Everything from the purchase
price to financing to the closing date is all open to negotiation.
9. Ease of investigation. Everything about an existing
restaurant is an open
book: its past activities, its operations, its current status, the
competition, the industry, and its future potential.
10. Existing memberships.
Every profitable restaurant is usually a member of several organizations:
Chambers of Commerce, professional networks, industry groups etc. As a
buyer, you will have the opportunity to assume these memberships and all the
relationships that go with them.
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