When interviewing the existing owner to determine whether to buy or not, & besides the usual questions of profitability, sales, staffing, training etc...
Is there any questions we should be asking that are more trade specific? anything specific we should be looking deeper at /or be more concerned with in the sausage /deli shop?
When interviewing the existing owner to determine whether to buy or not, & besides the usual questions of profitability, sales, staffing, training etc...
Is there any questions we should be asking that are more trade specific? anything specific we should be looking deeper at /or be more concerned with in the sausage /deli shop?
interview is in 20 hours from now.
thanks!!
Con
Ask if the grease trap overflows every 4 days and stinks up the neighborhood and for some reason cant be fixed even after you clean it out. Ask if the roof leaks, and if the floor drains drain. How often does the counter and/or cooler go out. Ask if there's a lot of hot ladies that shop there. Has there been any robberies in the area? If you're keeping any employees, are they hard working and trustworthy? Ask people in the community if they like the shop. You don't want to take over a place that no one liked. What are people saying about it on Yelp?
Edited to add that you should ask "is there anything else I should know" (such as similar problems listed above)
-- Edited by Burgermeister on Thursday 16th of July 2015 12:57:16 AM
Check to see if it was busy or is it a bad location etc. Burgermeister gave good advice on structural soundness. If the equipment is in the deal it might be wise to hire someone to check it out (if you aren't familiar with meat equip)
In the perishables business, you have to look out for hidden things that might shut you down out of the blue. Things like:
Supply Chain:
Does the current business have multiple suppliers for each ingredient or is it tied to one supplier?
Do the suppliers give credit terms and will those same terms be extended to a new owner?
Plant:
Is there a temperature logging system in place for the cold storage? Have there been any anomalies?
Is there an existing relationship with an equipment dealer that does quick service and repair of machinery?
Customer base:
Is the local demand fairly elastic in terms of price? Look at sales data for what happened the last time there was a jump in commodity prices and see if sales dropped abruptly.
Are there any seasonal issues you need to know about? Is it a college town where the students all leave during the summer or are there a lot of seniors that head south for the winter?
