There are two basic ways to get into the restaurant business in MN. One is to start a restaurant based on your own idea and concept and the other is to buy an existing business. For many the second option is the best, eliminating all the issues of a restaurant startup that can be very stressful and time-consuming.
Looking at the different restaurants for sale in the state will give you a good idea of the options, locations and the size of these businesses. There are actually many other factors to consider as well and failing to do your research on the restaurant can result in a purchase that has a lot of challenges.
Number of Prior Sales
There are some restaurants for sale that seem to cycle through owners, styles, staff and cuisine on a yearly basis. These restaurants often have a significant challenge such as location, extremely bad reputation in the community, or perhaps even a significant amount of competition for customers in the particular neighborhood.
Restaurants that are constantly on the market are often priced very reasonably, but that doesn’t make them a good purchase option. It may be better to pay more for a profitable and very well-run restaurant with solid branding and a top reputation.
Full Look at the Finances
If you are using a business broker to purchase any of the restaurants for sale in the state, he or she will attempt to obtain the financial records from the past owner. These professionals will also be able to assist you in reviewing these records and you may also want to talk to your attorney and accountant as well.
Check to make sure the financial records are accurate and that there are no outstanding liens or lawsuits against the restaurant before making an offer.
Know the Target Audience
If you are considering established MN restaurants for sale, are you going to keep the same menu, staff and style of the restaurant or are you going to make a change? If you are going to make a change, what are the potential problems and pitfalls you may expect?
The cuisine and restaurant style is a big part of attracting the target audience or the target customer. Changing these essential elements may drive the existing customer base elsewhere, which could potentially create gaps in income and profits during the transition.
You will also need to consider other factors as well, including if it is possible to transfer the MN liquor license and if it is included in the sale. This is another area the broker can help in verifying and ensuring is included as part of the sale.
