Have you ever "cut your losses" and sold your business? (credit, lease)

[cityflair]

Have you ever "cut your losses" and sold your business? How much did you lose? Are you glad you did it? Thanks!

[Zelva]

Well, we CLOSED our (small CA construction) business. LOL! Luckily, because we were small, we didn't incur a lot of debt doing so. But, it doesn't sound like that's what you're asking about. Sounds like you have better options. HOW NICE!! In this economy, if you can sell - that's a nice option to be able to consider, even at a loss (depending) - just hope your successor is profitable enough to succeed - and pay you the amount agreed!
BEST OF LUCK!

[StealthRabbit]

Originally Posted by cityflair

Have you ever "cut your losses" and sold your business? How much did you lose? Are you glad you did it? Thanks!

Typically businesses are closely valued to net revenue, assets, and growth opportunity.

In your business (restaurant), the value is closely tied to your personal contribution and reputation. How to Value A Restaurant for Resale - QSR Magazine

RESTAURANT BUSINESS VALUATION (http://www.gwu.edu/~business/casb/Research85.htm - broken link)

a good article on restaurant valuation How to Value A Restaurant 4 Sale - Resource Center for Buying A Restaurant

For an open market sale, you will be lucky to get $0.50 on the $1.00.

Your best option is to sell to a customer or an employee who has the energy & capital to maintain operations and grow the business. It is not a good idea to sell with you carrying deferred payments. Again, be sure to verify your lease agreement if you don't own the property. As Landlord, I had to axe a couple cafe 'operation' sales from one of my commercial properties b-cuz the operators were trying to sell to folks with poor credit or a criminal history; too great a risk for a landlord to assume.

Its a tough business; do understand what your options may be IF you sell it. Currently it is a rough job market, if you can make this place work and pay your bills, you might be best staying in this stressful business, and finding ways to mitigate the stress. (offering profit incentives for employees / family to assume more responsibility). Don't do the whole task... advertise, cook, serve, host, prepare, order inventory, accounting, clean-up. Start delegating the most stressful task until you regain some emotional and physical strength and can again look forward to showing up at work. Any negative vibes will rub off on staff and customers. Take a deep breath when walking in the joint and purpose to get through the day. On your way home, leave your work burdens there, or better yet, toss them over a bridge on the way home. (you can mentally pick them up the next day on the way in).

On the other hand, there are a lot of folks out there who are unemployed and no chances of regaining previous career, they may be able to buy your business if it is affordable.