Collateral Considerations When Buying A Bar

retro wooden desk in a barYou’ve Got To Cover Your Bases
One of the most important things any business must have is good PR. Without good PR, your business will struggle. With it, you may even find yourself in a surplus situation. Now there’s little worse for PR than having your liquor license suspended or removed because you were “stung” by a minor working in conjunction with local authorities.

Such situations tend to be printed in local newspapers. That can hurt your business. In fact, such a situation and the resultant PR fall-out is what prompts a bar owner to close.

They realize that until new management comes in, sales will suffer. It’s not necessarily just a state of affairs, but it is part of the environment. However, you can beat this game. One of the best ways to do so is to find experts in the field that understand the common pitfalls and can help you avoid them.

Liquor law is complicated. There are hours during which alcohol can and cannot be sold. There are places where only certain quantities of alcohol can be given to clientele. Some counties are dry, some aren’t—it’s a legal minefield, and you need a mine detector to keep one from blowing your financial legs right out from under you.

Sourcing Experts
When you need a liquor liability expert, Houston based, it’s best to go with known professionals with extensive experience representing bars, night clubs, restaurants, hotels, retailers, and other liquor license holders doing business.

With the right kind of professional assistance, you can optimize the acquisition of an establishment specializing in liquor sales. Additionally, you can protect yourself against situations where individuals legitimately try to entrap you.

Something else you should consider before you buy a bar is doing your homework on the property beforehand. Was it shut down because of a sting from local law enforcement? Was the bar really a front for a drug operation? Or did the bar just fold under mismanagement?

Location, location, location—sometimes the bar you’re looking at just isn’t in a good area of town. Then again, sometimes that can be your finest selling point; this will depend on the kind of regular clientele you’re looking to attract.

Making Educated Decisions
If you’re considering buying a new bar, you may use sites which allow you to do a New York secretary of State search, or even one directly centered in Texas.You will be able to find information on any business entity in New York or another state.

If you know what you’re getting into beforehand, you may even be able to talk down the price of the establishment. Perhaps the previous owner did get stung. Well, bring that up and point out the negative PR you have to overcome, then set a solid price about $10k under what you intend to pay, and let the owner work you up with that $10k cushion.

Sometimes you can lose the sale this way; but without the information, you wouldn’t have any kind of leverage to bring to the discussion at all. When it comes to making deals, leverage is a very important thing. You want to have something on the other individual in the transaction they can’t turn around on you.

As a buyer, you have some real power. If you research the establishment you intend to purchase beforehand, secure advisement from professional legal authorities, and establish good PR from the outset, you’re likely to avoid common pitfalls which come from uninformed purchases of this kind.

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