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Old 08-26-2008, 06:19 PM   #1
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What to do????

I have been approached to take over the lease on a Seafood outlet in town that the tenant has had to walk away from due to ill health. He has left all the equipment behind, which the Landlord has taken possession off, and he [the Landlord] wants us to complete the remainder of the lease. There is no entry fee, he will maintain the equipment as far as repairs go but he will not give a new lease at this stage after the present lease expires in 18 months time. The reason being is that he has had a $10 million offer for the complex, but if the sale falls through he will consider a new 5 + 5 lease.
I haven't been able to get any figures except for the rent @ $3,000 a month [not bad] and $385 a year for water. I have also found out that an 8 tonne Xmas prawn [shrimp] order has been placed , so this is quiet a busy outlet.
It's a pretty good offer but it will be almost impossible to get staff and I don't know what happened to those who worked there. I also do not really want to go back to working long-long hours again, perhaps try and find a manager? It's hard to decide without figures. No doubt a good option for a younger person.

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Old 08-26-2008, 06:44 PM   #2
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My thoughts are - the best manager for a new business is the owner!!!!! If long hours are not what you want this may not be the job for you. Sounds like a decision that would have to be made too fast and those are the most dangerous!!!

It looks like a pretty good-sized place - no small operation!

Just my thoughts.
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Old 08-26-2008, 06:52 PM   #3
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Another thing to consider about the possibility of having to work long hours is that your health has not been up to par in the last couple months. Are you feeling up to the long hard hours if it comes to that? Also, if I am not misreading this, if the owner sells it, you will have put all that hard work into it for nothing if the new owners decided to go a different direction with the building. Definitely put a lot of thought into this, and know that I am praying for you (for health and direction).

Barbara
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Old 08-26-2008, 07:09 PM   #4
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Yo Attie...You're a smart enough guy to know what you want to do...can, and can't do...etc. FWIW...my first thoughts when I read your post...."out of the frying pan, and into the fire"......Also, don't rush, do your homework...time is your friend!!

Have Fun!!!
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Old 08-26-2008, 07:14 PM   #5
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It's hard to decide without figures?
IMO, it would be impossible to decide without figures. Big red flag.
In my opinion.
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Old 08-26-2008, 07:17 PM   #6
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And..... since the owner isn't willing to make any committment to you, in other words, you work it for 18 months and he sells it anyway to the interested party, why doesn't he keep it running and you manage it for him?
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Old 08-26-2008, 07:24 PM   #7
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Quote:
Originally Posted by pacanis View Post
And..... since the owner isn't willing to make any committment to you, in other words, you work it for 18 months and he sells it anyway to the interested party, why doesn't he keep it running and you manage it for him?
That could work.

Barbara
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Old 08-26-2008, 07:29 PM   #8
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You should be contacting Fair Trading or if you have a small buisness advice group in Queensland contact them.

You can check buisness registration details on line...it's free.

As others have said...No books, no cooks!...Without books, I wouldn't have even bothered to take the photos.

It not just rent and water you need to know about. There is public liability, wages, electricty, income insurance etc, etc...8 ton of prawns isn't going to cover half your electricty.

IMO you should have a years worth of wages in the bank before you start.

I hope that is of help
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Old 08-26-2008, 08:02 PM   #9
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So many things that I don't know. I have run a small business for a lot of years.

I am sorry, but, I have not been at DC long enough to know what you are currently doing for income. Would you have to quit a job? The only way to look at this is an 18 month run with a brick wall at the end. From what I have read, you seem to have the experience and knowledge to run the business. I agree with Kitchenelf in that it would not make sense to take it for a short term and then add another salary of a manager.

If the landlord is willing to maintain the equipment, does he want a cut of the profit? That part seems strange.

If I am correct and you have the skills and knowledge treat it like math homework. List all of the things that you need, put a price on them,make yoru best estimate of sales. subtract cost from sales and see if that amount of money is worth it to you. Figure in wear and tear on your body. I am not extremely knowledgeable in the seafood business, but, I know that it poiles easily. How much risk of that is there?

If this business is in your town, then someone has to know the prior operator of the business or an employee. Have a cup of coffee at a couple diners around thearea and ask questions. Something has tolead to someone involved there that can lead you to the owner. whether he has or will part with the books in another story and very telling as to wether you should od it.

Also Uncle Bob's advice is very sage. You already know in your heart if you are up for it.

AC
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Old 08-26-2008, 08:16 PM   #10
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All great responses and thanks for them, I do need to make up my mind quickly so let's see where we stand.
KissTC - I would be up for public liability only with the insurance, because the place is also airconditioned I estimate electricity at $800 max a week. I will have some figures but how up to date they are, time will tell. Wages should be around $2,500 a week, not including mine.
Quote:
Originally Posted by pacanis
And..... since the owner isn't willing to make any committment to you, in other words, you work it for 18 months and he sells it anyway to the interested party, why doesn't he keep it running and you manage it for him?
Good thought, that is an option for sure.
Quote:
Originally Posted by Uncle Bob
.."out of the frying pan, and into the fire".....
Exactly Bob, I can handle the project but as Barbara says, my health is a problem, I'm still trying to come to grips after two serious batches of Cellulitis.
I'm thinking that sales would have to be over $15,000 a week to show a reasonable return. In this type of business we have a minimum markup of 100%, We play on the "Fish of the day", mine being Mackerel which costs me 90c's a piece and sells for $4.40 cooked.
OK then, I will wait for the Business Broker to contact me and then test him about managing the business.
Thanks heaps for the thoughts everybody
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