A buyer's guide to bars for sale

Buying a bar in UK can be a good business. Owning a retail liquor business can make you a lot of money. Nowadays, many UK investors/entrepreneurs have started buying a bar in UK, and even in Spain. Read this guide which can help you to buy a bar in UK.

How to buy a bar in UK

1. The first step is to locate a bar for sale or look for a bar franchises for sale. You can work on the basis of recommendations from friends or check the "UK business for sale" columns in newspapers and business finder columns in trade magazines. Business brokers can also easily help you to find a bar for sale, but they charge a fee. 2. The next prudent thing to do is to hire a lawyer, and find out about all the rules and regulations that govern the bar business. You will need a good lawyer to help you to buy a business. 3. Once you locate an appropriate bar for sale, you must question why it is up for sale. Is it business dull? Does it face much competition? Are the municipal authorities planning to dig up the roads or construct a flyover? Is the approach to the bar good? Does it have adequate parking space? These are common-sense questions that you must inquire into before shortlisting a bar property. 4. If satisfied, get your lawyer to check the bar's business licence and its expiry date. 5. You must hire an accountant for business valuation and find out all about the bar's assets and liabilities. You must also ensure that the assets are in working condition. 6. Check the music licence. Is it valid? Are the municipal authorities clamping down on granting new music licences because of noise pollution? Is the licence renewable? The music is important - no bar can make profits without playing music. Ask your lawyer to double-check on the music with the municipal authorities and give an opinion in writing. 7. Is the bar on leased or freehold land? If you are buying into a lease, figure out the period that you will get locked into. 8. Find out the monthly statutory dues and the running expenses (insurance, electricity, rent). Do a back-of-envelope calculation if you can generate enough sales to cover these, plus interest, if any. 9. Figure out the forthcoming expenses - licence renewal, music licence renewal, any other permissions.

Final word

It seems that the recession will continue for a longer period than small business owners in UK had anticipated. Therefore, it makes sense to proceed with caution and not jump into a liquor business just because it seems like a "high" thing to do.