For so long, the pub has been known to be the home of drinking, laughter, music, and dancing. It's a place to unwind after a day of hard work and sometimes just a place to look deeply into yourself as you wonder where the mystery of life is going to take you next. For some people, it would be a privilege and a dream come true to own a pub. Are you one of them? Have you entered a new neighbourhood and spotted a pub for sale sign just around the corner? Well, if you feel a bit entrepreneurial, there is your chance. However, before you go into such an investment, below are some things you may want to consider.
One of the most important factors to take into account is whether or not there would be any future changes in the months or years to come, since this would have a major impact on your business' turnover. For instance, a change in infrastructure like raising a skyscraper would have a positive result on your returns. This is because it would increase the traffic and, in turn, widen your customer base. On the other hand, something like disruptive long term constructions in the area would make your place unattractive for peaceful drinking, thus reducing your customers.
Assess Financial Implications
This is very crucial, especially if you are investing in a pub for the first time. First of all, you need to take a good look at the balance sheet and income statements of the business. You need to ascertain that the person is not selling the pub due to consecutive losses. Buying such a bar would just be a transfer of a bad business. Therefore, do some digging to find out how much gross profit and sales the place was making before. In addition, assess the assets and liabilities carefully. Remember, assets are what bring money into your pocket while liabilities are what take it out. Lose the liabilities, retain the assets, and add more if you can.
Long Working Hours
If you really plan on running a pub on your own, then you are going to have to raise your commitment level a couple of notches higher. Since a bar is a part of the hospitality industry, it means that you need people to make money. Moreover, most people visit the pub at night, and you may always have to be there throughout to monitor activities. When the bar closes, normally towards dawn, you may have to stay back an extra hour or so to do some bookkeeping.Share