Selling a business can be hard work and an extremely long process. It can be a legal minefield, and as well as putting time into valuations of your business and contractual obligations, you’ll also need to work tirelessly to keep the company healthy and profitable before you register it for sale.
Selling a café or a bistro can be difficult because you need to calculate all of the lease factors and decide on what terms you would like to sell. The food and business industry is very competitive at the moment, so you’ll have to go even further to impress buyers with your café and business premises.
With a fierce market to compete with, it’s recommended to get expert advice from a business broker if you want to sell a café for the best possible price. There’s thousands of food business listings online, so how will you stand out from the crowd? Here’s some professional advice from the experts to help you attract the attention of serious investors.
1. Focus on the books
It doesn’t matter what type of business you’re trying to sell, buyers and financers will be mostly interested in one thing – profitability. The appearance of your business premises and a high footfall in the area is of course a factor, but the most important thing to bring to the table is evidence of a healthy and sustainable profit margin.
2. Understand buyer motives
Try and look at your business from a buyer’s point of view. People buy businesses for different reasons so you should understand these and make your business attractive to a range of investors. Why is your café a valuable asset and what sort of buyers should it attract?
3. Boost curb appeal
When selling a customer facing business, the same rules apply to selling a residential property – a café must look appealing from the outside. To some buyers the physical condition of the business may be just as central as the financial position, so make sure the outside of the shop looks its best. Some fresh paint and clean windows can make a positive impact. If a buyer doesn’t think the café can attract their ideal customer base, they might not bother looking inside.
4. Good food and service
It’s not unusual for potential buyers of a food business to visit as a customer and sample the food for themselves. Think of this like you might get mystery shopped at any point, so you need to be offering a great customer experience around the clock.
5. Emphasise online presence
The majority of businesses these days require a good online presence to stay competitive and communicate with customers. Businesses with websites and active social media accounts can be much more appealing for many buyers as they don’t have to pay extra to set these up themselves after the sale.
Find out how Hilton Smythe can help you sell your café – get a free business valuation today.