Once you have decided that you want to buy a pub, the next step is to choose which pub for sale is the right fit for you.
There are always many pubs for sale on the market, so you should have plenty of choices. There can even be so many options that the process is overwhelming. Here are a few tips to keep in mind when looking for the right pub to buy.
Know your target market
You should clearly define what type of area and people your pub will cater to. There are a few common target markets. Inner-city and town pubs are usually in the centre of a busy town area and will be part of the local drinking circuit. Suburban pubs provide for local communities as well as those passing through the area. They are usually located towards the edge of towns near residential areas and may have facilities for families.
Once you have decided on the area, you need to get to know the landscape in depth and explore potential opportunities. Look at the pubs of your competitors and see what aspects you like and what things you would change or improve. You can ask the regular pub goers what they like in a pub. By doing this diligent research, you can learn exactly what your target market desires in a pub and you can tailor your choice towards this.
Have a strategy
You need to have a budget in mind when you are purchasing a pub. Know exactly how much you want to spend buying the premises as well as having capital left over to develop it towards your tastes. There are many fees to take into consideration that people often forget. Ensure that there is an adequate budget for things like stock, accountancy fees and licenses.
Identify suitable properties
With your target market in mind, develop a short list of pubs for sale that would suit your needs. When you visit these properties, you should take plenty of detailed photos. Also look for what areas will need to be changed and require further investment. You may need to add on an extension to the pub or build a beer garden where smokers can have a cigarette. The pub may be old and require repairs to the plumbing and electricity.
All of these factors need to be considered before making an offer on a pub. Estimate the cost of this work and add a margin of safety to this number as most construction and repair projects come in over budget. This will give you a clearer idea on how much you can afford to offer.Share