We knew absolutely nothing about running cafes, so we decided on Columbus with the plan of spending three years learning all about the business through a franchise then launching our own boutique cafe.
The whole idea was to learn the business and then go our own way, which is where we're at now. After looking at many possibilities through various business brokers we were able to find our current cafe, which fit our search criteria.
What was the process of buying the business like?
It was hard work, but having been through the process before we found it a lot easier this time around. We physically looked at more than 30 different cafes during the search and made three written offers on others, which fell over for one reason or another, before we successfully bought this one.
I'd say obtaining reliable financials would have been the biggest challenge of the process, because people often like to paint them as better than they actually are. You've just got to keep pestering until you get the real information you need.
And obviously you've got to make your list of what you're looking for when you go out searching. Location was a big factor for us - we wanted somewhere relatively close to where we live - and we wanted a classic cafe that we could stamp a family atmosphere on.
Having good professional advisors that you can run everything past are also a big part of the process.
How is the new business going so far?
Excellent. We've had a steady climb in business and since buying the business we've seen a 23 per cent growth in average weekly sales. We've had to upgrade a number of physical aspects of the premises like kitchen equipment, commercial washing machines, microwaves, sinks and make car park repairs, as well as change all working systems to accommodate our vision. But she's now a smooth working machine.
What's your plan for the business going forwards?
With this place we've also got a three-year plan, and after that our idea is to go to the beach! My daughter has a business degree and is also a big part of the operation - she's one of the chefs and knows how everything works - so in the back of our mind that succession is part of the plan.
What's some key advice you'd have for anyone else looking to buy a business?
Go in with a written plan, list your goals and be 110 per cent committed to them.
Plus, be prepared to work harder than you've ever worked in your life. I've had four main jobs in my career, but it's totally different going from being an employee to an employer. It's a 24/7 job and you never really switch off. But although being self-employed has its up and downs, it's definitely been my most rewarding working experience I've had so far.
Coming up in Your Business: How do you figure out what to pay yourself as the owner of a business? What are some of the different formula or guidelines people use and why? If you've got a story to share, drop me a note: nzhsmallbusiness@gmail.com
For more on NZ business ambitions go to www.businessambition.co.nz
