Small restaurant for sale in Medellin

bickerss says on Sep 18, 2008, 01:16:

Ive eaten there - enjoyed the food and freindly staff.

Investment Strategy - buying when others are crying!! Offloading when others are gloating!!!

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miamimike says on Sep 18, 2008, 01:18:

List it on Colombia's Craigslist for him! Its a Freebie also!

Avatar Legend: Bush "If any of you Reporters are wondering, it was a Size 10"

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lanegrapaisa says on Sep 18, 2008, 01:24:

oh that cement is just, it's there for the weight, dear

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lanegrapaisa says on Sep 18, 2008, 01:27:

Thanks for the Idea Miamimike, I hadn't thought of that

Bickerss, I know they are really nice, but did you try that habanera hot sauce? OMG!

oh that cement is just, it's there for the weight, dear

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bickerss says on Sep 18, 2008, 01:32:

I like the taste of the hot sauces however am a wimp for the ''heat'' part of them!!! But its a nice liitle place and might give the sauce a try when i get back in two weeks..

Investment Strategy - buying when others are crying!! Offloading when others are gloating!!!

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lanegrapaisa says on Sep 18, 2008, 01:57:

Hmm, just make sure you try just a drop of it, and DO NOT mix it with guaro! Too much for any stomach to handle; I’m personally not into that habanera unless I have a cold in which case is great to clear up all of my air ducts and then some.

oh that cement is just, it's there for the weight, dear

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spigrimace says on Sep 18, 2008, 05:57:

obviously doesnt come with the local at that price. it is very nicely kept and clean, I didnt see a refrigerator but Im sure there must be one. From what I see in equipment, tile work, seats, plates, decor, etc. I see that all worth 10 millones. in Colombia, asking of 30 is about right and ofering mid to upper teens cash is also about right. My gut feeling from the small size is he sells around 10 millones a month (15 in December) and depending how they report IVA (16% Regimin Comun and dont report all sales vs. lying about how much you will sell and registering as Regimen Simplificado - 0%IVA) and how you work it out with your employees such as a flat hourly wage of say $2800/hour vs. minimum with all the bells and whistles, IF it leaves any money at the end of the month, maybe it makes up to a million a month (up to 2 millones in December).

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Rowdy Yates says on Sep 18, 2008, 06:10:

I was thinking about 2 million a month NET as well.

The thing is that rent is going through the roof! I suspect that if you were to sign a new lease you would be in big trouble as today the rent does not allow you to run a profitable business.

So if he owns the local perhaps he would like to become a landlord as he has discovered more profit in that and less hassle. If not you will need to negotiate the contract comming with the business which might be difficult to do, if not impossible.

With the price of rent increasing 200% or so in the last couple years and prices not increasing that much now is a hard time to start a business here.

The people who are surviving in business today here are people who have gone into the business 3 or more years ago when rent was cheap or paid a good price. By law they can not jack the price of rent but only by a small percentage each year. But, they can pull the "new tenant shuffle" in whatever form and lock you into a lease that will make it impossible to survive.

They then will be comming after your security deposit whatever that may be when you fold up. They usually ask for a lot in the security deposit since this is exactly what their plan is. They know what the business makes and know you will not make the rent increase so they just wait to take your property or whatever you used as security.

There are a few of these types near my house. Rent for this local 3 years ago was 700K a month. they were purchased for nothing so the landlord can afford to wait on the sucker. They are now renting it for 2,700,000 a month. It will stay empty for a long time since the landlord is not interested in a successful business there he is interested in your security deposit. There is about a business a year at one local I know of that falls into this catagory. A business shows up in this local with a plan that I imagine consists of hopes and dreams and fairy dust. They last about 3 or so months and then lose the farm, literally.

Maybe this business is not one of those and is a great deal? I am not commenting specifically on this business but just in general. However I am HIGHLY suspect of anyone that sells a profitable business. You may be picking up trouble in whatever form.

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paisa29 says on Sep 18, 2008, 06:24:

2 o 10 millones? que ridiculez! entonces que porque estamos en Colombia las cosas no valen tanto, es lo mas estupido que he visto, especialmente si tienen idea de cuanto cuestan tener un negocio en la 10.
Cuando venden un negocio acreditado tambien hay que pagar por la prima o
"good will", en algunas ocasiones eso es mas costoso.

"Fill the earth with the light and warmth of hospitality" Conrad Hilton

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spigrimace says on Sep 18, 2008, 07:05:

quien dijo 2 o 10 millones? Rowdy estaba pensando cuanto se da neto mensual en ganancia. Yo dije que pienso el negocio vale 15-19 millones y cuanto prima uno se pagaria para El "famoso" Mero Macho y su sede unico y sus 10 sillas y sin ni una mesa. Yo dije que las cosas physicas valen 10 millones que uno se puede pagar hoy mismo para comprar/instalar. Entonces yo adicione 5 a 9 millones en prima. Yo garantizo si el negocio esta dando plata, no se vende. Pero esta en venta, entonces nadie va a pagar tanto prima para un negocio que lo mejor esta sosteniendo. Es un opinion honesto.

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spigrimace says on Sep 18, 2008, 07:24:

I dont think the asking price is drastically inflated. In fact typically people ask double or triple what something is worth here where in this case I think he is at a starting point where you can agree at a fair final price that leaves both sides not feeling ripped off. Also im not the original poster so I cant answer your questions on specifics. I was just giving my opinion on what it may be worth.

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Rowdy Yates says on Sep 18, 2008, 07:53:

We are just pissing in the wind here if we are trying to get specific. There is not enough information to determine anything let alone prima which could be the hooker. We don't know why he is selling? How much time he has been in business? What his books looks like? What the rent is? Why he is selling? Why he is selling?

Before I would even think about buying this place I would spend a lot of days camped out drinking coffee and watching the customer flow.

As far as formula there is no formula for prima, there is no formula for price. Asking these questions you really have no business going into business here. You should already know the variables that come into play for figuring a businesses value of which here there are MANY. You are going to have to negotiate some business deals here to get a feel for what is fair.

Often times if it is a good business you will be negotiating prima with a guy who feels his business is the greatest thing in the world. So you have the 30 plus the prima, you do realize that right? In buying a business here prima is usually where I get stopped dead in my tracks in the deal. What their perception their business is worth is not always it's actual value, your really paying for their customer base which is a fickle thing.

Sometimes it is better to start a new one, in fact I recomend it. Be sure to know your customer base. If it is in an upper estrata make sure you go all out to make it appear new, nice and clean and bright. In the lower estratos you can start up with much less but can not make that business model work in an upper estrato. This seems to be the most popular error in local business models.

Good luck!

PS Forget about nearly everything you know about business from the US it won't be much help here.

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Rowdy Yates says on Sep 18, 2008, 08:27:

spig I just saw your post. Typically the asking price is absent the prima so it is most likely 30 plus the prima which could be like you say or could be a lot more? So really we don't know if it overpriced or not since we don't know what the prima is. But I would venture to guess if the prima is absent this price it is overpriced. So like you said about half that would be fair, depending on the prima which we do not know. Unless of course it is a booming business and then the question is why do you sell a booming business?

I don't have a lot of restaurant experience but seems like a place like this it would be difficult to get away with registering it Regimen Simplificado?

Bottom line is start a new business.

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spigrimace says on Sep 18, 2008, 08:46:

If it was a booming business, why arent there customers in the pics ;-) Now one could and should sit around for a week and see how much the business moves. Also, you could try and find opportunities to exapand the business. Such as does this business have home delivery? Can it qualify to be open 24 hours? Or maybe you can see how to cut costs. For example maybe he buys things like ketchup and desechables in Makro instead of directly from the manufacturer. As for prima, I have usually seen it IN the price but that is just my experiences. I wouldnt ask "oh and by the way, how much extra for the prima?" as here they will sense an opportunity and say, "oh only 10 millones more". Books might not matter as one has to cook the books as to not pay so much tax, especially sales tax. Look at a rental contract, all utility bill(s): electric, water, garbage collection, phone, etc. You can calculate employee costs based on the hours they are opened and how many work per shift(s).
Many receipts of ingredients or services that dont have IVA on them are simply thrown out as to fake lower sales as to not pay DIAN so much IVA from the sales.

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Mononoke28 says on Sep 18, 2008, 10:08:

$30 million is a very good price. A cousin of ours bought a small fast food place in Envigado for $15 mil and it was tiny with just the basics.

Hope the new owner keeps this place the way it is because I'd like to go there some day.

Diana

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Lipper says on Sep 18, 2008, 10:36:

?

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spigrimace says on Sep 18, 2008, 11:40:

I am friends with the original owners of Citrus on the 33 a few blocks down from la 80. This business started almost 4 years ago and they invested about 25 millones in fixing it up, getting a licor license, tables, glasses, and the such. After 6 months, they wanted to flip it. They wanted me to bring gringos to look at it and were asking 75 millones. They finally sold it for 45 millones to a colombian and made some money. Now they say the place is always packed and the new owner wants 500 millones for it (building not included!). I rolled my eyes as I do deliveries and when I go by there, on weekends, although there are people, it is never packed and sunday to wednesday it is dead. Where this 500 millones figure came from is anybodys guess.

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lanegrapaisa says on Sep 18, 2008, 12:29:

I have e-mailed my friend requesting answers for all of the questions posted here, and I trust I will have them soon. So far all I know is he wants to sell because he is exhausted, he has other businesses as well as this one and he is overworked.

He is always there (4pm-11pm) for those of you who speak Spanish, and for those who don’t just let him know (miming or signaling if you’re that bad) to call Lina, and I will be more than glad to help out.

I truly appreciate all of your comments but I feel I should let you know, my question on whether the price was high or not, was one of a rhetorical nature, intended to pacify any inquiries about the price and financials of which I clearly know nothing about. Nonetheless I believe these forums are a good way to learn and help each other out, so please do carry on.

oh that cement is just, it's there for the weight, dear

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Lipper says on Sep 18, 2008, 13:28:

??

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pavo says on Sep 18, 2008, 13:31:

I would think this would be a tough market for Mexican Food given the Colombian aversion to anything picante.

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johnny2008 says on Sep 18, 2008, 14:30:

pavo do colombians have a spicy aversion? what about the spicy stuff they put on empanadas?

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spigrimace says on Sep 18, 2008, 15:26:

How about someone that already owns a restaurant for 4 years here in Medellin?

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lpdiver says on Sep 18, 2008, 17:03:

Two comments...

Maybe the photo was taken when the restaurant wasn't open.

In my personal experiences Paisas have an extreme aversion to "PICA" food and salt and other spices in general.

ts

"cook some rice!"

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spigrimace says on Sep 18, 2008, 17:19:

Lets have some fun and so we can all learn: post what you think one of those backless bar stools in the pic costs new.

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lpdiver says on Sep 18, 2008, 17:45:

I'd rather speculate on what the stools smell like after a pretty colombian lady dined there.

ts

"cook some rice!"

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spigrimace says on Sep 18, 2008, 17:54:

I knew it would be fun

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vicshere says on Sep 18, 2008, 18:06:

mastercard ad
backles stool ....20,000
drink at bar for freinds 50,000
trying to buy a mexican place in colombia on your card ...priceless

listo

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Sonny says on Sep 18, 2008, 18:35:

Lanegrapaisa:
simple questions are best on this site as I see it.
1 What will he take for the business bottom line?
2 Does he own the business and building?
3 If he does not own the building , how much is the lease /rent and can it be renewed?
4 What is the gross?
5 How many people are working there?
6 list of equipment and the condition?
7 What is the exact location and how long has it been in business.
8 how much is he paying and if any what is left on the lease?
PM me if you wish. I might be interested

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pedro (☼Travelguide writer) says on Sep 18, 2008, 20:32:

vicshere says on Sep 18, 2008, 20:42:

The value of one new backless bar stool is 300,000

you are kidding right?

listo

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nbenjamin says on Sep 18, 2008, 21:06:

gringospy - why do you write under two handles - one being a woman - Langrepaisa - it is starting to get weird.

I mayl buy it - can they train someone to run the place - maybe we can work that into the contract. Maybe I will give it to my "family" out there.

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spigrimace says on Sep 19, 2008, 05:38:

Im sure u r all dying to know. Usually gringos guess too high. Vicshere was closest. The answer is 30 mil new each made by a carpenter down in the centro around cl 57 in the barrio diagoinally on the other side of the huge traffic circle by the minorista. Not a barrio to go it alone either. Add 10 mil more for the stools with the back. So in seating this restaurant has about $350.000. How much does the sign hung above outside cost? Zilch. It is property of Postobon loaned to the restaurant.

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spigrimace says on Sep 19, 2008, 05:41:

Byron, Its definitely a good idea. For now, I am the camara as I am here 15 hours a day and the POS register calculates the inventory to which the employees pay if there is anything missing. I have a closed circuit security system. I really should buy a DVD recorder to record it and check it out at times.

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papiChulo says on Sep 19, 2008, 09:22:

nbenjamin says on Sep 18, 2008, 21:06: flag

gringospy - why do you write under two handles - one being a woman - Langrepaisa - it is starting to get weird.

You're wrong doode... I know Langrepaisa personally, she ain't no Gringo Spy...lol.

avoid the unhappy and the unlucky

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Rowdy Yates says on Sep 19, 2008, 10:10:

30K? in central Bogota you can buy them for 18,000 all you can carry.

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spigrimace says on Sep 19, 2008, 11:04:

Even better!

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miamimike says on Sep 19, 2008, 11:12:

I really should buy a DVD recorder to record it and check it out at times.
===================================================================

Once you get these recorders and roll the recording you will be amazed(maybe shocked)at what they tell you about people! We did this a few years back at our condo complex and I'm the person who checks these tapes out when we have problems and what I see is simply amazing! And shocking in many cases as the Perps were residents I would never have suspected!

Avatar Legend: Bush "If any of you Reporters are wondering, it was a Size 10"

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Rowdy Yates says on Sep 19, 2008, 12:45:

You can have your CCTV cameras, mic wired right to your house through the phone line and pull it up on your TV while channel surfing. If you have a business I recomend this. It is great to pull it up and check on a delivery or on your employees, how many customers are on site, etc.

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miamimike says on Sep 19, 2008, 16:39:

My Neighbor who has a small business has this Setup you write about, still it didn't prevent a group of theives a few weeks ago from pulling up to his Shop and stealing over $15,000 worth of Steel products. Its a good idea only as long as you are monitoring the action in real time. It probably ended up at area Scrap Metal yards due to the high price of Metal these days the police surmise. Even Manhole Covers(stolen) are starting to pop up here in Miami, once thought to be only a Colombian custom(stealing manhole covers)

Avatar Legend: Bush "If any of you Reporters are wondering, it was a Size 10"

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billyb says on Sep 19, 2008, 16:44:

It might not keep "unknown" thieves from breaking in, but it will sure give employees pause.

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gringoloid (Trustee board) says on Sep 19, 2008, 18:38:

billy.......where have you been..........you can't be working that hard........you need a vacation in cali.

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billyb says on Sep 19, 2008, 19:19:

Tell me about it, working like a dog, but hope to make it to Cali for new years.

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lanegrapaisa says on Sep 20, 2008, 19:28:

Byron K, the restaurant is still available.
Everyone else, please try and understand I don’t read all of the comments so if you are interested, I -once again - urge you to email the owner of the restaurant whose address you will find on the original post.
I have replied to those who showed interest with some more info, however let me try and make this as clear as possible: This is a favor for a friend, I am not getting a cut out of the deal nor am I interested in doing so.
I will gladly send you the info I have if you PM me but if you wish to know more please contact him directly because quite honestly I have work to do and unless you’d like to pay me to translate for you I cannot help you any further.
I hope none of you think I’m being rude but honestly I don’t know how to get through to you, still if you do in fact need my services as a translator or interpreter I would be more than happy to help you and dedicate to you all of my time ( $8.5USD/hour, $0,07-0,10 USD / word).

oh that cement is just, it's there for the weight, dear

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vicshere says on Sep 21, 2008, 06:00:

now that was funny

listo

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vicshere says on Sep 21, 2008, 16:56:

hey why were a couple of my comments deleted??? Gustapo Police out again?????

listo

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vicshere says on Sep 21, 2008, 16:56:

maybe you didnt understand the joke but no need to delete it....

listo

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