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A sole proprietor wants to take out a loan so she can buy a small restauraunt and open her own cafe. What are some benefits and costs of buying the restaurant property?

User Molokoka
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1 Answer

1 vote

Answer:

To summarize the question : The sole proprietor to buy an existing restaurant and transform it into a cafe rather than building it from the start

Benefit :

- Cheaper Price

Since the property is not new, the sole proprietor could obtain it with significantly lower price compared to buying the new ones.

- Less Financial Risk

The existing restaurant also come with some of its loyal customers. If the sole proprietor could convert them , the sole proprietor already have a good stream of income for a brand new business

- Quicker Execution

The formal & legal matters from Buying an existing business usually shorter than establishing permit for new ones.

Cost:

- Property Damages

Since they are no longer new, we need to expect that some of them come with a less than ideal condition

- No Fresh Impression/Image

The people around the business area will already associate the business with the previous brand. If it's negative , than the new owner have to deal with it.

User Robert Peters
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