So whats next

S

steveo922

New member
As some of you may have read, we’re throwing in the towel. Too many differences in ‘partnership’ and things of that nature.

Anyways, obviously a world of questions are flowing… When selling a pizza business are the concepts, recipes, menus, themes etc etc an asset? Or do majority of buyers just look for a location to implement their own ideas?

Thanks guys!
 
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Normally all those things would come under the “goodwill” umbrella, but in the case of a failed business it is only worth the self satisfaction to yourself and your ego of what you planned and worked at.

None of what you have listed are worth a buckaroo when a business is closed. Ask the question, why would it be worth anything when your sales were extremely low, no profit came out of the business and it ended up closing because it didn’t make the grade? Sorry to be harsh but the reality is that what you have listed was a business failure so there is absolutely no value.

All a purchaser would be interested in now is the plant and equipment at clearance pricing.

Hope that you get a decent return from what you’re selling and that you find a niche in your future plans that work out well for you. Great work giving it a go at what you did. No-one likes anyone to go down and I think I can speak for all of us on the forum in saying we wish you well for the future.

Dave
 
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I gotta agree with Dave here, the recipes and menus of a failed closed shop won’t likely be worth anything to anyone. Ideally you would like to sell the equipment to someone wanting to operate in the same location. Then there may be some value to them for the build out already being done and you may be able to assign your remaining portion of the lease. Otherwise you are stuck liquidating your equipment for pennies on the dollar. This is what most places end up doing. At any given time I can find multiple fully equipped pizza shops for sale for less than 30K. Saw one today for 8K. When all is done, the money you get out of the equipment/business is probably going to be less than you are on the hook for on the lease. Might be worth selling the equipment for real cheap if the buyer takes your liability off of the lease. This will likely depend upon your landlords approval though.
Good Luck
 
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Are you saying because certain circumstance arose automatically names it a ‘failed business’? It failed b/c it ran out of funds, time (only 7 months) and marketing. With the right owner, the right BUSINESS PLAN (which we DIDN’T have), the right funding, and the right marketing it could be a great thing…

You’re saying 100% of the potential pizza business owners have their own recipes, concepts, ideas?

I have a good friend in the business trading industry and he will be helping me make it presentable, just gotta find the right buyer if there is one.

Thanks guys.
 
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I hope you have talked to a lawyer before you throw in the towel. If loans were taken out and assests were used to secure the loans you might be looking at some large finanicial situations. The bankrupcy laws have changed in the past few years, so it isnt as easy as throwing in the towel and locking the door. It will also follow you around for many years

Trying to sell a closed business is next to impossible, noone is going to want anything but the equipment. Buying a failed business has way to many potential problems with suppliers, tax debets, liens.

I would suggest doing whatever you can to not go through a bankrupcy.
 
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Well, to be honest, nothing is under my name so I dont need to do anything… But no one said anything about bankruptcy. My partner knows this is going to cost him a whole lot, and be one big huge mistake/loss. Other than the startup cost, there isn’t any other debt and if there is, its minor and will be paid off before anything happens.

But thanks for the input guys, always much appreciated.
 
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Well since I didnt know the story, I read all the threads about you opening your place. I guess it is a good example for people to look at about what can happen when opening a resturant.
 
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steveo922:
Are you saying because certain circumstance arose automatically names it a ‘failed business’? It failed b/c it ran out of funds, time (only 7 months) and marketing. With the right owner, the right BUSINESS PLAN (which we DIDN’T have), the right funding, and the right marketing it could be a great thing…
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Dude, are you serious? Why do you STILL have your head stuck 50 feet into the sand? IMO, as has been stated before, your main problem was competition and market saturation. Being pizza shop number 30 is an insurmountable problem - FOR ANYONE.

I’d be willing to bet that if you had $1 million in the bank that it wouldn’t have made one bit of difference - other than you would have lasted longer.

I’d be very suprised if you find anyone who is willing to buy your shop and open it as is - where is. If someone does, well good luck to them - because they are going to find themselves in a very bad situation in about a year…
 
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steveo922:
Are you saying because certain circumstance arose automatically names it a ‘failed business’? It failed b/c it ran out of funds, time (only 7 months) and marketing.
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I hate to say it steveo but you answered your own question there. It must be painful to close something that you have worked so hard on but I really for your own sanity you ought to understand that yes its failed and more on.

I think we’ve all seen you’re a passionate and thorough guy and I’m sure if you decide to stay in this industry someone will be very lucky to have you working with them.
 
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You guys are absolutely right. I need to accept the fact that it failed, and most likely will fail again with a new owner in place. We are now part of the almighty statistic.

The whole situation just sucks. We really did have great pizza and its a shame its gone. Just a tough pill to swallow ya know.

Thanks for being there guys.
 
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Steve,

I feel for you…Closing something you love and if possible would still like to be doing is tough…If it is OK to ask you …What do you feel you did wrong and how large is your market…I read that you have thirty shops in your area, Is that your direct servicing area ?..All the best to you…
 
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Steve

You asked the question and I answered as honestly and without malice based on your past posts about the business.

I understand how you must feel about being told the business failed. It was not a reflection on you, but in the end of the day the business couldn’t survive so realistically it failed to make the grade. The worst thing is that your ego (and we all have one otherwise we wouldn’t be doing what we are and believe in what we are doing) has been dented and this hurts bad.

So many things affected your business as you have stated many times in past posts and in retrospect not opening the business would have been the right decision to make. But we are all exoerts after the event 😦

The bitter pill is always the hardest to swallow and at this stage you must feel that you just gulped the whole bottle.

Dave
 
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Steve, look at the bright side . . . at least you’re not fat, bald and ugly like Dave and me.

mostly Dave, though 🙂

Let the sting/grief ease off a little and then write up a little in very broad terms about what did and did not work out. Don’t wait so long that you forget, though. What were the strengths and weaknesses of the business plan and its execution? What faulty assumptions, what brilliant insights, what creative ideas didn’t get implemented for lack of resources? Put all of this in a safe place and take them out the next time you open a business. It could help you strengthen your start.
 
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“NicksPizza” said:
Steve, look at the bright side . . . at least you’re not fat, bald and ugly like Dave and me.

quote]

Yeah that’s why we are still in business … a novelty factor for our customers… the Nick and Dave freak show.

Maybe you should have asked Nick to come visit for a week. I’m sure that would have bought all the freak show watchers to your store in droves.

Remember that for your next venture. 🙂

Dave
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At least I can always count on you guys for the laughs :lol:

But some real good advice. I know people make it out alive (although battered and bruised) after closing a business. Just gotta chalk it up to a learning experience. But its been noted, my next experience I’ll definitely have to make sure I lose my hair and gain some weight 8) .

There are so many factors as Dave said, its not just one thing. But competition was a MAJOR factor Easygoer. There were over 30 places all within our direct market. It was crazy. We didn’t do as much research as we should of. Kinda just dove in head first without a written business plan.

Thanks again guys lol.
 
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steveo922:
At least I can always count on you guys for the laughs :lol:

But some real good advice. I know people make it out alive (although battered and bruised) after closing a business. Just gotta chalk it up to a learning experience. But its been noted, my next experience I’ll definitely have to make sure I lose my hair and gain some weight 8) .

There are so many factors as Dave said, its not just one thing. But competition was a MAJOR factor Easygoer. There were over 30 places all within our direct market. It was crazy. We didn’t do as much research as we should of. Kinda just dove in head first without a written business plan.

Thanks again guys lol.
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Steve with your permission, I wanted to ask and hopefully get some opinions. The market I want to open in offers within 5 miles over 50,000 people. there are the 4 big chains, and 3 indies only one is close by the other 2 on the edge of the 5 miles. There are also two sit down places that offer pizza but not as their focus. I have a small benefit in that I currently have a business in the area and for the last 2 months I ask each and every person where they go for pizza. There is simply no consistent answer except that there is really NO STAND OUT shop or “good pizza” in the area that gets mentioned but the clear desire for such is expressed by those I ask. Now I know this is just one small sampling, polling people who come to my current business but it does support my observations as someone who lives in my area there is a need for better pizza. Anyone who can offer any other insights please feel free and Thank you Steve for allowing me to learn from your experience, again all the best to you.
 
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Steveo…wow…I would say sorry to hear it but I am not. I am excited for you and what this new cross in the road will have in store for you.

One thing I have learned from reading your post is your are someone who puts 100% in what they do…are loyal to those around them and has enough self belief you are able and willing to do things most people could not. No matter how much of a financial loss this will have on you and your family you have been educated about business and yourself and will use it as a stepping stone into another career path.

Always remember this was a job…that’s it. Although most of us see it as a way of life, an extension of who we are and all that stuff the bottom line is… it is a job. You will find another one and luckily your personality is one that will be great no matter what kind of J O B you have.

My only suggestion to you is this…cut the losses now, quickly. When we first put our 2nd location up for sale we thought it was worth quite a bit more than it eventually turned out to be. It was a rude awakening for us. We put so much into it and the offers were at first a bit offensive. Now that the reality bulb is shining bright we see it is only worth what someone is willing to pay. Our case is a bit different and as of now we are not for sale, but the lesson is the same none the less. It is only worth what someone is willing to pay.

At some point the mouse gives up on the cheese in the trap just to get away. And that is what I suggest to you. Let’s say you think it is worth 50,000. The reality will be it is worth what someone is willing to pay which will be less than half that. But don’t forget you are also getting rid of the ball and chain around your neck. So to hang on for months and continue to carry the cost associated will eventually eat all the money and yourself up. I would start preparing for this reality. When there is no buyer it is worth nothing…so to speak.

I think if you are able to get out of the lease and maybe recoup a couple of grand you should consider that a victory, because you will be getting your life back and that is priceless.

Put a period behind this and move on and be great at your next venture.

Best of luck to ya!

Kris
 
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