Investment question.

    • fruktpuff
      fruktpuff
      Bronze
      Joined: 24.09.2010 Posts: 3,982
      Hey all of you!
      So, the other day sitting at one of the bars I kind of regular, I found out one of the three owners if dying for a change and looking to sell his third of the bar.
      They all own it in equal shares, one quiet owner who does another job and two of them working one week each in the bar.
      Frankie, who has no income apart from the bar, is asking a really rather reasonable sum for his share, $10000.
      Kaspars, who also owns a blacksmith's workshop, is asking twice that.
      Frankie just wants to cover his debts, have a small holiday and enough to live on for 1-2 months, while finding a new job.
      He also wants to give the third owner a chance to buy it though, as he's expressed interest in becoming part of running the bar.

      So, what would you lot do, try and find the money(which is quite a lot of money here in Latvia, really.) and get in, despite their unwillingness to let me have a look at the books, but that's not so strange considering they know I don't actually have the money atm.

      One of the shares is going for a very reasonable price, the other's quiet pricey without knowing exactly how much they make

      The bar's been open for nearly 2 years though, and is at the point where it starts being more and more profitable, but it's also quite a small and cozy place and don't always get heaps of business during the winter, which can be quite long.


      Any thoughts, inputs, opinions welcomed.

      Regards,
      Richard
  • 3 replies
    • Econom1sta
      Econom1sta
      Bronze
      Joined: 27.01.2010 Posts: 130
      Do SWOT analysis.
    • Satanic4
      Satanic4
      Bronze
      Joined: 25.02.2008 Posts: 85
      Originally posted by Econom1sta
      Do SWOT analysis.
      Should do a risk analysis too. Owning a business is "high risk" and should be aiming for return on investment of 18%- 30%.

      Just having your money in the bank you get 3% interest.
      Realistate is 6-8%
      Stock market is 10%-12%

      You should be aiming to do better then those :P

      Probably want to get an accountant to check the financials before you buy too.
    • NikolaB85
      NikolaB85
      Bronze
      Joined: 09.06.2011 Posts: 157
      i am a professional barmen 5 years till now,use to be a bar manager for a year,so from my point of view it is really hard work and it requires a lot of time.
      So if you are ready to put your whole effort in,then don't doubt,give it a try.
      "Good" thing is that the bar exist for 2 years and it works nice,so you don't need any crazy idea to bring more peoples. I guess a lot of peoples already know and been to that place. So all you need is to keep up the good work,and bring some lite changes,like new menu,but not completely new you just drop the articles that are less popular and add some new.Do not make more then 10 changes because you may lose some good clients who already come to that bar only because of their favorite cocktail and don't put too much new stuffs,make it simple and easy for the customers.
      Make your workers happy and they will make you twice happy,believe me :)
      If you need any good Cocktail suggestion please contact me :)

      I would give it a try if i was in your place. I am also saving money and hope i will own a club in the future