Published on 17/08/2017 by Any Business.Com.Au

Always wanted to own a bar? You can for just $25

A Newcastle-based entrepreneur will give away his beloved Das Hund Haus German-themed bar on August 31.

Rather than trying to sell his Newcastle based bar and restaurant the traditional way, James Sneddon has opted to give someone else the chance to make their dream a reality by offering it up as a raffle prize – the ticket cost? Just $25.

Mr Sneddon, who is an accountant by trade, is parting ways with his much loved bar to focus on his new startup venture, an online sexual health clinic called Stigma Health.

Stigma Health sees users pay $21.99 for a pathology referral, get tested at a local pathology centre and then the results are delivered to them online. If the results come back abnormal, they will receive information about treatment and a letter that can be taken to their doctor in some cases.

All money raised from the raffle will go towards funding Stigma Health which officially launched in November last year.

Mr Sneddon said after he saw an island resort raffled off last year, he decided to explore the option to offload his bar and obtained a permit from Liquor and Gaming NSW.

The permit has allowed Mr Sneddon to hold a trade promotion for two-for-one meal vouchers which gives buyers five free entries into the draw to win the business plus the chance at an additional $30,000.

On 1.5 times earnings basis, Mr Sneddon believes the Das Hund Haus would be worth around $150,000 and had he not been given the approval to run the trade promotion, he would have listed the business for sale at $200,000.

"I didn't really expect I'd get $200,000. In my experience it would have either sold quickly, or people would have drilled down the price," he added.

Are bars performing well?

Many pubs, bars and nightclubs industry operators have benefited from changing business models over the past five years, taking advantage of consumer demand for quality dining and premium alcoholic beverages.

As a result, industry revenue is expected to grow at an annualised 1.2% over the five years through 2017-18, to $17.2 billion.

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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