The Agents
Stephen Taylor
Managing director
Guy Simmonds
Well, there are many who will be glad to see the back of 2007, a year which brought natural disasters, ever-more stringent legislation, the credit crunch and an undoubted economic downturn.
There's no ignoring the industry's concerns, like the level of pub-company rents, the smoking ban, unfair competition from supermarkets - the list goes on.
If these were terminal factors, however, then every pub would be on its knees. But there remain many superbly-operated pubs - under both tied and free-of-tie arrangements.
I have valued and sold many of these lucrative businesses producing net profits of around £100,000 per year. There are common factors to such businesses such as a clear focus on customer care and hospitality, high standards, a welcoming ambience, the basics done to perfection, a passion for the perfect pint, good-value food offerings, effective marketing and merchandising, and the essential appeal of the British pub as a centrepiece of our way of life.
Behind these front-of-house skills and qualities sit the financial control, staff management and overall business skills which will always differentiate the successful from
the rest.
The licensed trade offers individuals from enormously diverse backgrounds the opportunity to have their own business, producing a lifestyle and financial rewards that would be the envy of many.
Where else can you acquire a thriving business combined with a substantial home, often for less than £100,000? The luxury of operating free of tie can be achieved for a little more capital investment.
Going-concern leasehold businesses often fully recoup the initial investment within less than three years.
However, we would strongly advise the utmost caution in taking on closed premises at little or nil premium - remember that nothing in life is free!
A going-concern with proven profits is invariably a better bet when it comes to buying.
We wish all who operate a great British pub a very happy and prosperous 2008.
