- August 20, 2017
- Posted by: hendrix
- Category: Exit Planning
Many restaurant owners find their work ultimately fulfilling and lucrative, but their gains come slowly over time. While owners could easily continue this line of work, selling their restaurant is a chance to raise substantial capital all at once. This cash can be used to pursue other ventures, or it can help the former restaurant owner attain a lifestyle they have always wanted.
This dream is but one of many related benefits that can occur when you sell your restaurant in Las Vegas, Nevada. Read on to learn how a Certified Exit Planning Advisor and Valuation Analyst can help you sell your restaurant while increasing your chances of getting the best price.
The Las Vegas Market Has Gotten More Expensive and Competitive
While helping our clients enter and exit the Las Vegas business market, we have noticed several distinct trends. First, the cost of doing business in the city has gone up tremendously over the past several years. Las Vegas saw an 85 percent jump in population from 1990 to 2000, and it continues to swell every year. This growth presents huge opportunities for both big corporate businesses and the city.
Restaurant owners can dramatically reduce their business overhead and raise their margins by moving operations into a less competitive area.
Cash Out All Your Accrued Equity
Dedicated restaurant owners build value into their business little-by-little during the daily course of operations. These gains can often be invisible, as things like increased reputation and sales growth tend to generate only incremental returns to the owner. In other words, the value is there in the restaurant, but it is not translating to significantly more income for the owner.
Selling your restaurant in Las Vegas allows you to extract all this built-up value you have accrued over the years, much like a homeowner who makes a sale after improvements.
A Chance to Start Fresh
With the cash you generate from a restaurant sale, you have the opportunity to start a new business that has even higher growth potential. It could be a new restaurant or even a series of franchise restaurants. It could be something with less needed personal involvement, like commercial property ownership.
You could even partner up with investors and operators to fund a new enterprise-level startup. The sky’s the limit! At this point, you have also learned valuable lessons from your business owner experience to invite fewer mistakes and achieve quicker growth than your first attempts.
Diversify Your Holdings
In addition to starting a new business with your restaurant sale proceeds, you can also make strategic investments that allow you to obtain passive income. These investments also hedge against the risks that business ownership inevitably creates. As a result, you are more financially stable, less risk-prone and have multiple steady streams of income coming in.
Putting money from selling a restaurant into retirement accounts can provide tax benefits, so many former owners take the opportunity to essentially enter retirement early. Some are able to stop working altogether, whereas others are “quasi retired” as they entertain ventures with less direct need for involvement. Either way, these people trade out the rigors of restaurant ownership for a more relaxed life.
They also have the chance to begin securing their legacy early. Gifts from sale proceeds to others and donations to charities are both effective measures at relieving your tax burden from the sale. That way, you can watch the seeds of these gifts bear fruit within your lifetime.
Working With a Certified Exit Planning Advisor and Valuation Analyst When Selling a Restaurant
Those looking to sell their restaurant can obtain significant benefits from working with a business broker during the process. An experienced and Certified Exit Planning Advisor and Valuation Analyst like Jamie Schwartz can help you value your business listing appropriately, seek out optimal buyers and ensure that the financial structure of your deal places a minimal tax burden on you and your legacy.
Start dreaming of a better life with fresh opportunities when you contact Jamie Schwartz and begin planning your restaurant sale today.