Selling your Café

Selling your Café

The Do’s and Don’ts for Café Owners

 

by Garth Lawrence – Business Development Manager
Bizbo Australia

 

The basic do’s and don’t if you want to sell your business come down to some fairly common sense thinking. However, if you think about them and action them early you will be ahead of the game when it comes time to sell.

 

Do’s

Make sure your business is sellable

It is becoming commonplace that cafes aren’t showing their true figures to the ATO. While this may benefit your immediate cash-flow it can make it difficult to sell your business for what it’s actually worth. Keeping 100% accurate records of your figures will mean you’re able to sell your business for a much better price.

 

Tangible and Intangible Assets

Ensure you have relevant documentation for all your tangible assets in the business. This makes the business easier to value and sell. In regards to intangible assets such as goodwill, ensure that you use this as a selling point rather than a valuation as it’s an intangible asset that can be shown to buyers as potential increase in business.

 

Don’ts

Rush

Sometimes you may want to jump at the first offer that comes your way but this can show the buyer that you’re ‘desperate’ to sell and may undercut your price. I know, you’ve been in the cafe for some time and you need a holiday, but holding out a bit longer can draw a higher price from professional buyers.

 

Overprice

Sellers often go to market at a higher price than what the business is worth so that they have ‘room to negotiate.’ This may seem like a good tactic but most buyers haven’t just decided to buy a café yesterday. They’ve been researching for some time and know the going rates. Overpricing can make it look like you’re leaving room to negotiate and thus the buyers could negotiate you down to less than if you’d put the business on the market at its true value.

 

This is by no means a comprehensive list of Do’s and Don’ts but more something to whet your appetite and get you thinking. Should you need any advice on selling your café do not hesitate to get in touch.