Selling a business, especially a restaurant is not as easy as it seems and most people find it difficult not knowing how to go about it. The end result is targeting unprofessional people who just waste time and the ‘real buyers’ are nowhere to be seen.
The crucial aspect of selling a restaurant is effective advertising.
Many sellers think that the ‘tease strategy’ of providing less information gets people to call or show interest, whereas buyers are more apt to call if more information is given about the restaurant for sale.
Here are some quick tips that will stand the seller in good stead:
Pricing – The price point is important and pricing the restaurant reasonably is important. Underpricing is as dangerous as overpricing. High pricing will keep the restaurant longer in the market and this is not good as there would be speculation among people as to the reason why the restaurant is not selling.
Maintenance – Buyers usually look at the reason the seller is selling the restaurant and it does not help any to see that the restaurant has not been maintained properly. Taking care that every corner of the restaurant is in perfect shape helps in making a quick sale by making the buyer comfortable.
Information – Keeping all the information regarding the restaurant ready for the buyer is the way to go. All the papers related to the restaurant, right from the time the restaurant was started, including the leases if any, profit and loss statements, and any other documentation should be filed neatly for the buyer to see. The more convenient things are for the buyer, the easier it gets to sell a restaurant. Make sure to get a Non-disclosure agreement from the buyer before revealing confidential information.
Purchase agreement - A draft of the purchase agreement should be kept ready in case of an immediate sale, to avoid last minute confusion. This can be modified once the sale is confirmed.
Advertising - Advertising a restaurant for sale needs serious planning and getting it to the right people. Having a wide range of buyers will increase the prospect of making a deserving sale. Along with the newspaper advertisement, it may be advertised online too. Advertising should continue until the final check comes in hand.
Understanding the buyer - There may be many unqualified people showing interest in buying the restaurant, but most of them may not be serious about buying it. To keep such people from getting their hands on all the information, it is important to study the buyer and assess his financial background and business interests. These seemingly small but important steps help you find the right buyer.
Transfer – If the restaurant is a leased premises, the first thing to do even before advertising is to check with the lessor if the restaurant lease can be transferred to the new buyer. It may be required to sign a new lease before selling the restaurant.
Agreements - Everything related to the restaurant sale and terms should be in writing. When selling a restaurant, it is advisable to consult experts in the area and draft an agreement that states all the conditions for the sale, which is then signed by both the parties, to avoid any problems in the future, such as lawsuits.
Initial deposit – Upon reaching an agreement with the buyer, it is a good practice to take an initial deposit of some kind or use an escrow service to hold the deposit until everything is finalized.
Armed with this information and proper advertising, the success rate of selling the restaurant faster is very high. Before deciding on selling a restaurant, consulting with professionals is extremely important to get a fair idea on all the security agreements and notes that need to be prepared.
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