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Problems & Vent : A little help with a decision
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 Message 1 of 2 in Discussion 
From: MSN NicknameSnow-WhiterThanWhite  (Original Message)Sent: 5/29/2005 2:41 PM

Hi All,<o:p></o:p>

We have a dilemma on our hands at the moment, and I thought I would run it by BTV to see if anyone had any thoughts or insight into our situation.<o:p></o:p>

 <o:p></o:p>

My husband Demis has recently been made redundant, after 12 years of working hard in a restaurant that only survived because the boss was forever pumping money into it from his other businesses.  <o:p></o:p>

With his redundancy money he wants to run his own shop. <o:p></o:p>

He has found an existing business to lease in a good location, with the grand idea of upgrading it from a ’cafe�?nbsp;to a Greek Tavern serving a better quality of food.<o:p></o:p>

(For the non British on the board, a 'cafe' is classed as the lower end of food establishments sometimes nicknamed ''The Greasy Spoon'')<o:p></o:p>

 <o:p></o:p>

Demis thinks this is a good opportunity especially as the chap is willing to wait until next year for the other half of the lease money (£40,000), personally I think he is asking for much more than the Greasy Spoon it worth and I am so very afraid that getting this amount of money together for next year will be so stressful for him (and ME!) <o:p></o:p>

 <o:p></o:p>

Demis is sure that this shop will financially secure him into his retirement days (10years from now) as much as I would like to think that this would be so.<o:p></o:p>

I am still mentally scarred from the last business venture that went horribly wrong -- <o:p></o:p>

--The landlord had found a buyer for the property while Demis was renting from him so he changed the locks on the door preventing Demis from entering. Our lawyer advised him not to break down the door, walk away and sue him in court.  Like lambs to the slaughter we took the landlord to court, it took 8 years in and out of court and the financial mess had to be cleared.  <o:p></o:p>

 <o:p></o:p>

In the end we won the court case and the landlord was ordered to pay, but by this time he had been declared bankrupt.<o:p></o:p>

We were physically and mentally drained so we declined advice to take him to court again for payment, we could not endure another court action so we walked away with NOTHING but a major drain on our energy.<o:p></o:p>

 <o:p></o:p>

Demis isn't afraid of hard work or putting in all the hours of the day.  <o:p></o:p>

I would dearly love his dream to be fulfilled but I am not sure that this is the right shop or time for him -- for by that I am scared witless.<o:p></o:p>


I would appreciate any comments positive or negative. <o:p></o:p>

Thanks for taking the time to read.<o:p></o:p>

I know I don’t participate much on the boards I lurk in the background reading the daily digest when time allows.<o:p></o:p>

<o:p> </o:p>

Love and Best wishes to ALL<o:p></o:p>

Babs  (D.O.B 2/8/54)<o:p></o:p>

<o:p> </o:p>

PS. Demis date of birth <st1:date Month="3" Day="10" Year="1951">3/10/51</st1:date> (real name Demetrios)

 ........my bith date 2/8/54

 

<o:p></o:p> 

<o:p> </o:p>



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 Message 2 of 2 in Discussion 
From: MSN NicknameDreamedPigSent: 5/29/2005 10:47 PM
<<<<Demis thinks this is a good opportunity especially as the chap is willing to wait until next year for the other half of the lease money (£40,000), personally I think he is asking for much more than the Greasy Spoon it worth and I am so very afraid that getting this amount of money together for next year will be so stressful for him (and ME!) >>>>
 
I don't know what the legalities are of purchasing a business or property  are in the UK, but when we were buying a small business here (a small video rental shop in Canada) about 8 years ago, we made sure that an opportunity to have an accountant go over the books (and our being satisfied with what he or she found) was a condition of our buying the business. 
 
It's a good thing we did, too.  The whole sordid story is too long to go into here, but we found out that the "owner" basically kept no books.  From what we could find in her computer program (geared toward that type of business) we found that the price they were asking was outrageous.  We eventually purchased the business at a HALF of the asking price!
 
Turns out the agent *used* to own the store, and when he sold it to the new lady, he still had his thumb in the pie to some degree, and was forcing her to ask a high selling price so that he could pay of his debts and those of his father!  The asking price had NOTHING to do with the value of the business.
 
Tread carefully. It sounds like you're both game, if the finances are right.   Personally, I would never set up shop again.  It was far too demanding on our time, we had useless employees except for one (oh, and one SHAFTED us terribly), and although we vastly improved the business so it was quite the little going concern when we sold, we didn't make much money off the sale.  Fortunately I got back my investment which my husband insisted on, but he's still paying off his portion of the loan that he took out at the time.  And we sold around 4 or 5 years ago.
 
Linda