What would be a 6 figure turnover

[Yankydoodledandy]

A very small business family member is buying has a 6 figure turnover. Surely that cant be £100,000? No way it could make £100,000 or have I got 6 figures wrong

If turnover on a sandwich shop is 100,000 then there won't be a huge amount of profit. You have to pay our of that 100,000: rent, rates, buy the raw ingredients, food waste, pay staff wages, electricity, water WiFi bills, insurance etc.

I don’t think he’s thought this through. Overheads are absolutely not low.

Why did is close? Likely to be not pulling a profit and the previous owners sacked it off… I’m guessing.

I recently looked at a café with a view to buy with a turnover of 260,000. It was barely making a profit. With electricity increases it will be making a loss next year on this turnover.

Overheads are not low for a sandwich shop! Rent, electricity, staff, ingredients.

You need to be running a fine tooth comb over the expenses and figure out exactly what it takes to operate this business and what the profit is (including based on how many sales etc). I think given you don't know this that you and your dad are not ready to run a business successfully. Not to say you can't, but you need a good grasp of the basics, running a business is not easy, otherwise everyone would do it

I agree that anyone who thinks a sandwich shop has "very low overheads" should not be running one, and that the previous owners are almost certainly selling because they are now running at a net loss.

Goodness, I wouldn't touch it. Does your father know what he's doing?

Has he done ANY research?!