jdh3000 asked:
I’m looking into buying a small neighborhood tavern. I’ve looked at the books, but can’t really tell if they are honest. The books were made up by the person leasing the bar from the owner, who I’m sure isn’t thilled about it being sold. I don’t know how to get the real info on this deal. What’s a good way to tell if the bar does good enough buisness to make it worth buying?
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Get an accountant to check them over he will be able to tale if they are real. Good Luck
Go in every night during the busy time and count patrons and drinks and food, if they have it. Average the cost of the drinks and figure out what they bring in over the course of a week or two.
Then look at your expenses, and see if it is worth it.
Keep in mind that 50% of small businesses fail in the first 2 years, 70% in five, you have to watch your butt when going into business.
Don’t know what country you are in but if in the US you need to make sure the bar does not owe any back taxes as the feds and many states will force the new owner to pay them.
I would also pay an accountant to look over books, try to find someone who has a couple bars in the area he already does the taxes/books for. It might be well worth you time. Talk to him about the tax issues as he should know what the law is.
Good luck and I hope it is doable for you.