Quote:
Originally posted by Bhelliom@Jun 20 2005, 06:49 AM
Being a business student ... while restaurants do tend to have low profit margins... they can be successful IF you do the proper analysis before buying it. Why does anyone sell something? cause they're not making enough money. if it was a gold mine he'd be keeping it.
Having said that. If you do the proper analysis before hand you should be able to see where there is any room for improvement (if any)that could boost the bottom line. Also keep in mind when looking at the financials of the business, keep in mind also that restaurants are mostly a cash business... so the "reported" numbers may be a little low. not to say that anyone would try to screw the gov't and pay less taxes of course :P
just some food for thought.. most businesses fail because they get too excited about it and fail to do what needs to be done beforehand.
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ok business student. write a solid business plan as all great business students do... then take it to the bank of your choice and then try to get the loan officer to stop laughing long enough to explain to you why banks don't loan money for restaurants.
