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What to be Aware of Before Purchasing Coffee Shops by David Duncan





Article Author Biography
What to be Aware of Before Purchasing Coffee Shops by
Article Posted: 04/21/2015
Article Views: 56
Articles Written: 911
Word Count: 456
Article Votes: 0
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What to be Aware of Before Purchasing Coffee Shops


 
Business
If you are looking to buy coffee shops, there are several things that will be very helpful for you to know before you make a final decision on something that has the potential to change your life. So before you decide that you are 100 percent set and ready to buy coffee shops, here are some tips to help you prepare:

First of all, if possible, try to work in the business before you buy coffee shops. While this does not happen 100 percent of the time, it is often the case that business owners will not be 100 percent honest about the turnover rates of the business. Of course, this is an illegal act and it is considered tax evasion. One way that you can be sure about what exactly the earnings of the coffee business are, analyze their profit and loss statements with a fine-toothed comb. In addition, be sure to calculate the percentage of material purchases against the overall earnings of the coffee shop.

While the owner of the coffee business may discreetly inform you that the actual earnings of the coffee shop are not in line with the numbers reflected in the financial reports, it is important to be safe than sorry and not to take any chances as you buy coffee shops. With all of this in mind, the best way to find out how things really work behind the scenes is by trying to get a job at the coffee premises. This way, you will be able to witness firsthand whether there is any hanky-panky going on such as skimming from the registers or any sales intentionally not being listed down in the records.

By working at the coffee business, you will also be able to calculate the number of staff members on board, get an idea of how much they make, and get inside information on the daily material costs incurred by the coffee shop for food, drinks and supplies. Equally important as well, working at the coffee shop will give you the chance to inspect the equipment of the coffee and see whether you will be inheriting equipment that is still in good shape.

Last but not least, before you sign any papers, read through the lease papers with care. Keep in mind that it’s nobody’s job but your own to understand them — not even your lawyer — seeing as you have the most to lose here.

Charles Gund works at Cafe2u - the company provides franchise opportunities for anyone looking to buy coffee shops. He enjoys writing blogs giving tips and advice on how to go about starting your own coffee van business, and he is also a keen wine drinker and tennis enthusiast.

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