If you are planning to enter the pub trade, it is important that you take the proper steps before signing a contract or investing any money. The pub trade can be competitive. If you do not accurately assess the pub that you are planning to buy, you could soon find yourself in trouble. However, if you take the time to identify the right pub in the right location, you can look forward to many happy and profitable years ahead. Below is a guide which will help you to identify the right pub to invest in.
Check the local ownership laws
In most Australian states, the local authorities will require the owners of establishments which serve alcohol, such as pub owners or pub managers to have an RSA ('Responsible Service of Alcohol') certificate. This certificate proves that the manager has undergone training, so they understand how to serve alcohol in a responsible manner.
Check out the pub's current financial statements
If you are planning to use the pub as a primary source of income, it is important that you check that the income that the pub generates will be able to support you. However, you should look at more than just the profits and loss generated by the pub. You should also look at the cash flow statement, as this will give you an idea of how much the cash the pub can generate on a week-to-week basis. The cash flow generally gives a more accurate picture than yearly profit and loss, as it is not subject to the same tax write-offs and discounts.
Check out the local neighbourhood
When you visit the pub in person to have a look around, you should also take a walk around the local neighbourhood. This walk will give you the chance to check out the local competition from other pubs and restaurants. While looking at the other establishments, you should consider if there are any ways you can make the pub stand out. The walk will also allow you to judge the number of customers you may be able to attract. You will also be able to make a judgement about the desirability of the local neighbourhood and if it contains any residents who may cause you trouble.
If you would like further information about buying a pub for sale, you should contact a property broker today. The broker will be happy to offer further help and advice.
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