Successful Franchise Bakery Café for Sale / Brisbane
Successful Franchise Bakery Café for Sale / Brisbane
Author: malekso
HAIR SALON FOR SALE
Hair Salon for Sale in Taylors Lakes, Victoria – would suit an investor or an owner operator, fully managed business.
Stunning hair salon located in a busy shopping Centre. 12 stations 3 basins, spray tan and beauty room over 106 sqm. Computerized with shortcuts. Staff 4 f/t hairdressers.
Sales $12k per week
Rent $2709 per week
Lease 2.5 years left
Salon for sale at $55k plus stock
DON’T MAKE THESE MISTAKES – Business Owners
DON’T MAKE THESE MISTAKES
Business Owners
It takes time…
Many business owners spend years building their business to only receive a fraction of what it is worth when it comes time to sell. Although there are many more, here are seven of the most common mistakes that could impact you significantly.
- Inadequate preparation
Sellers who get the best deals are those who have left around 18-24 months or longer to effectively prepare, especially in relation to due diligence. Imagine selling your home, would you present it in the best possible light to get the highest possible price? Of course! The same is true for your business. - Obsession with history instead of future opportunity
Future potential is far more important than past performance. While you need to justify historical financial results, identify and focus on the growth opportunities a potential acquirer will have, so they are excited about the future. - Valuation
Never take a business to market with a price tag, it could be the most expensive mistake you’ll ever make. While an objective third-party estimate of value is essential, it’s more important to address the issues that could increase value. When you focus on future potential you’re much more likely to get maximum price for your business. - Not leveraging professionals
While it might seem attractive to save the 10% or more brokerage fees, you are the expert in your business, not the expert at selling it. When you engage a team of experts they will add more than their fees in value. A good broker will handle marketing, buyer pre-qualification, showing the business and ultimate negotiations. You’ll also need your accountant, lawyer and potentially, financial advisor, involved.If you’ve taken the time to do a proper exit plan, your exit strategy advisor will be invaluable in keeping your team of professionals on the one page, with your interests at the centre of every decision.
- Poor record keeping
Can you easily access the last 2-3 years’ financial results, tax returns, employee contracts, supplier contracts, leases, equipment warranties, etc.? Are they stored for easy retrieval electronically?What marketing records do you have for leads, conversions, average dollar sale, customer lifetime value? Many businesses do not track and, more importantly, use this information to grow their business.
Do you have analytics installed on your website? Every digital, online business should have tracking installed to validate how much and what kind of traffic they are getting. You need at least six months’ analytics history, and the longer your track record the better off you will be.
What about your content, domain names, hosting records, product inventory, subscriptions or other services you buy? All listed and easy to access with passwords, logins etc.?
- Selling with revenues or profits heading down
If your revenue or profit is decreasing, this is not the time to go to market. Take whatever action is needed to turn the business around, or if it’s plateauing at a new level, give it time to settle. A potential acquirer will want to see a steady income stream, not one that’s heading south. Don’t make any big purchases if you can avoid them. - Mentally checking out of your business
So many business owners think as soon as they put up the “For Sale” sign they can take their foot off the pedal. This is the absolute worst thing you can do. Assuming you are working “on”, not “In” the business so it’s no longer reliant on you, it’s even more important you continue to do just that – as if you have no intention of selling it.
If you kick back and just let things roll on, unless you’re earning truly passive income, you’ll find a revenue slump within a month or two, with a subsequent drop in value. With downward revenue, a potential acquirer is much less likely to pay top dollar now you’ve provided great leverage for negotiation. So many business owners forget about this.
Confidentiality is also key. You’ll want your team to continue as though it’s business as usual, too. While this list is by no means exhaustive, these seven mistakes can really make or break the business sale process.
Did you know that Benchmark sell hundreds of businesses every year?
Did you know that Benchmark sells hundreds of businesses every year? As a result we have accumulated a lot of historical sales data on business transactions Australia wide. Benchmark Business Sales & Valuations has many specialty divisions including Supermarket Sales, Childcare Sales, Hospitality Sales, Hair and Beauty Sales any many more. Our Business Brokers have extensive experience in their sectors. After many years in selling businesses – there aren’t many challenges that we haven’t seen or overcome before. So when you want to sell a business, we can show you how to make it easy. In fact, we have developed a proven formula to ensure that our clients obtain the outcome that they seek, quickly and efficiently. Benchmark Business Sales & Valuations works for business owners who are looking to sell a business. Benchmark Business Sales & Valuations brokers provide services to both public companies and private companies, – and individuals. We specialise in the sale of businesses in the price range up to $10 million. View our Recent Sales history https://benchmarkbusiness.com.au/recent-business-sales/
TIPS FOR THE FIRST TIME BUSINESS BUYER – HOW TO BUY A BUSINESS
This blog will explain some of the process and the pitfalls buyers need to know in how to buy a business.
The buying process… So you are looking to purchase your very first business? we understand its a big decision both emotionally and financially – where do we start?, good question.
- Identify the type of business you want: once you know the industry that you would like to purchase into, then do some due diligence on the industry such as; is this industry growing or declining? Have there been any similar sales of this industry recently? Have there been any changes to legislation surrounding this industry? What do I need to know in regards to; knowledge, lisences, trading trends, cash flow, how to attract business etc…
- Find a business for sale (in that industry): once you find a business for sale online or in print media start working out your budget for affordability taking into account, the purchase price, the deposit, stock (if applicable) working capital to operate, government stamp duty (if applicable in your state) and then go and consult with your bank manager or finance broker first to gather an understanding of how much you can borrow. This knowledge will save you time and money in the long run. In many instances we see buyers chew up money in, accountants and solicitors fees whilst under contract with them only to fall over because they cannot obtain finance.
- Now you know how much you can afford: start looking for a business within your budget. Once you find that business then make an enquiry with the listing agent and complete the necessary NDA forms to allow you to obtain the business information and also book a meeting with the broker to discuss the finer points of the business prior to an inspection.
- Your feeling confident now: the business is shaping up to be what your’ve been looking for, what to do next? Present the agent/broker with a written offer to purchase with some bullet point conditions such as, subject to: due diligence, finance, lease, training etc…depending on the industry.
- The offer is accepted: the rest should fall into place under the guidence of the agent/broker your solicitor and accountant. We always recommend you engage professionals such as solicitors and accountants.
Tip – there are no short cuts in purchasing a business, it will only cost you more in the long run. Make sure your ready to purchase so as not to be disappointed and miss out on an opportunity. Being ready means, your aware of how much you can borrow, you have a solicitor and accountant that are commercial business savvy, you have your purchasing entity structure in place with ACN & ABN, and your ready to purchase now. How to buy a business - The pitfalls…
- Financials: be wary of management accounts, such as: MYOB, Quickbooks etc as they are inheritaly unreliable and have not been finalised by an accountant. We suggest you or your accountant annalise the end of year financials completed by an accountant along with the corresponding BAS statements and tax returns.
- Side ways money: what does this mean? If you find a business for sale where the vendor owns multile businesses under the own company entity then this should put up a red flag. Becareful that the business your looking to purchase is not being proped up by the other businesses owned by the vendor. If the vendor owns muliple businesses and they all operate under separte entities and bank accounts then there shouldn’t be any problems and the incoming revenue should be easily tracked and cross referenced.
- Goodwill: did you know that there are three types of goodwill? They are…commerial, industry and personal, understand the type of goodwill associated within the business your looking to purchase and what are the pitfalls.
- Documents: don’t sign anything until you understand what it is your signing (your responsible) and that you have instructions from your legal representitive to sign. Not understanding what it is your signing will stitch you up quickly.
- Don’t penny pinch: meaning you may have to spen a few thousand dollars with solicitors and accountants to get to the bottom of the information with the right guidence. This small amount of outlay is tax deductable – and in the end it could save you thousands.
- Completion / Settlement: means once all conditions have been satisfied the deal is about to complete.
Tip – make sure your solicitor and the vendors solicitor are on the same page and the lines of communication are open and that both parties are fully aware of the settlement date and time. You should have clear instructions from your solicitor of your obligations and what you should do prior to the settlement date, be guided by your solicitor so as the deal is completed correctly. Ian Salter Business Broker REIQ – Business Broker of the Year 2016 & 2015 Businesses for sale quick links Businesses for sale Gold Coast | Businesses for sale Brisbane | Businesses for sale Melbourne | Businesses for sale Adelaide | Businesses for sale Sydney
Are you a SERIOUS buyer?
Are you a SERIOUS buyer? What constitutes a serious buyer? Whilst you maybe looking at purchasing your first business or investing in a business the question is always how serious are you about it. When buying a home you investigate the location, you compare houses in the street, you look at local facilities and most times you have been to a bank to see how much you can borrow. Buying a business should be no different. You review the sales and Profit, the look of the business and the number of competitors in the local area and then you start to think of what price the business is worth to you but in most cases a buyer has not gone to a Finance Broker or Bank to see what their borrowing capacity is. Banks are lending less to businesses than what they used to and buyers need to be prepared. By being prepared you now have better negotiating power. A vendor is more likely to negotiate on price when the subject to finance clause is not required and or 7 days compared to 30-60 days, there is also the potential on you missing the opportunity to purchase the business because someone else is SERIOUS and has come prepared with an offer not subject to finance. Sometimes a Finance Broker can facilitate the borrowing and negotiation with lenders and in some cases at better rates than the banks so it pays to get a second opinion on your capacity to borrow money. This small investment of your time and can be the difference between looking and SERIOUS about a business opportunity….. So the question now is to ask yourself – Are you a SERIOUS buyer? David Zampech Supermarket Specialist Mobile: 0422 671 375 Email – davidz@benchmarkbusiness.com.au
Melbourne Hair Expo 2016
Did you have a chance to come see us at Australia’s largest professional hairdressing event in Melbourne this year? I can safely say we had a great time. Met some amazing people, swapped some inspiring stories and all in all a momentous event! If you’re thinking of selling or buying a salon within Australia, contact us today on 1300 366 521. #hairexpoaustralia #hair # salon #benchmarkbusiness #benchmark #selling #buying #salonsales
Oh, I’m a lumberjack and I’m OK, I drink all night and I work all day…….
For those of you old enough to remember this famous skit from MONTY python
You may be in the same category as me and I welcome you to the "OH MY GOD, WHERE HAS MY LIFE GONE " realisation, its right up there with drinking Tang and colour television!
You know, after 29 years of working in kitchens and food businesses, I’ve got to say, that what I did 12 months ago was the beginning of an incredible ride. It’s not that I really wanted to be a lumberjack, but I just knew I had to do something else, and this cheeky little ditty certainly inspired me to get off that rusty nail and do something about it. It’s not often that I’d resign a well-paid job to pursue a dream, but I thought, there’s got to be something better out there. Where I can work my own hours, stay in the industry that I love, not feel the immediate pressure to produce something, and earn a descent quid? Well, here I am, some cracker listings on the books already, working from home, lovely new wife helping me, getting the opportunity to have a swim across Laguna bay every day, early morning walks, and meeting some of the most incredible people that the sunshine coast has to offer.
We’re a quirky lot us Chefs, hardworking, passionate, committed, wired, and downright energetically challenged – and it’s from their inspiration that I see the challenge of putting the right buyer with the right business.
From the experienced food operator to the newbies, matching a business to a buyer’s capacity is an art form. And believe me I’ve seen some amazing projects develop here in my 15 Years in Noosa. I myself bought a restaurant on Gympie terrace and that came with its own challenges. So I’ve learnt some lessons and now it’s time to offer (if you want it) the lowdown on how things work on the “Sunny Coast”.
Sometimes I’ve felt I should mention to buyers that “I don’t think this business is for you”, and I think they appreciate my honesty.
It is a magical place to live and work, if you can find that happy balance between work and lifestyle. The diversity that is available to us is incredible, from chilly Hinterland Nights to Glorious Autumn beach days, the sunny coast has it all. I’ve been blessed to be able to call this place home and I welcome you all to this little place called heaven and I trust that I can find you exactly what you are looking for. Are you the next Noosa lumber jack?
Wolfgang Groh
Business Broker
THINKING OF BUYING A SUPERMARKET? WHAT BRAND BEST SUITS YOU??
IGA AUSTRALIA
Owning an IGA store means that you belong to Australia’s leading independent grocery brand. Independent retailing is an exciting and dynamic industry to work in. IGA retailers, in particular, have developed a unique style and enthusiasm for their businesses. The IGA brand has been accepted and embraced in the marketplace, and continues to evolve with new initiatives, programs, promotions and sales drivers.
IGA is the leading independent retail grocery brand in Australia and as such, has benefits that no other brand can deliver. It offers a professional support network, backed by volume buying and negotiating power. Strong promotional and marketing programs give independent retailers a unified and competitive voice. This is in addition to behind the scenes support through dedicated retail consultants, IT, marketing, merchandising and, business planning and strategy.
IGA retailers are supported at all levels whilst having a long standing, dynamic and growing brand as their foundation for success. With over 1400 IGA stores throughout Australia the choice is easy when it comes to selecting the independent grocery brand for your business
FOODWORKS AUSTRALIA
FoodWorks is growing and they are looking for passionate store owners with a drive for success.
They are looking for people who are leaders, and recognise the value of building a brand on personality and old fashioned hard work, thrive on a challenge. FoodWorks store owners are driven, show initiative and demonstrate retail know-how.
If this sounds like you, then you’re already on the same team.
There retailers pride themselves on having a fresh, contemporary approach to retail whilst still retaining a friendly, community-focused relationship with their customers. Their existing store network consists of 650 stores Australia-wide with an annual turnover of $2 billion and more than 3 million customers a week. They are Australia’s largest truly independent supermarket group.
As a branded FoodWorks store, all the profits from your business belongs to you. When you join FoodWorks you become a member and shareholder of the company. They don't tell you how to run your business, but provide the tools, support and services you need to ensure your success.
This makes them unlike any other supermarket brand in Australia.
What qualities do you need?
- You need to be hard-working, driven, thrive on challenges and have a passion for successful retailing.
- You need to be good with the basics of running a business – especially stock control and cash.
- You should be great at managing and getting the most out of people.
- You should have retail blood in your veins – a passion for customers and an eye for knowing exactly what they need.
SPAR AUSTRALIA
Join the smart buyers making an everyday difference with Australia’s fastest growing, independent supermarket brand.
With SPAR, you could own a business with a multi-million dollar annual turnover.
SPAR Australia is proudly 100% Australian owned, and has a proven retail system built on local knowledge and backed by global expertise.
Based in Brisbane, where our main distribution warehouse is based, SPAR Australia supplies grocery goods and services to more than 260 independent retail stores across four states every day.
The SPAR Supermarket concept originated in the Netherlands in 1932 and has grown to become the largest, independent food store retailer in the world. Today, SPAR’s global network is spread across four continents and includes more than 13,610 stores in 31 countries.
Locally, the brand is flourishing due to its commitment to its independent retailers in their family-owned stores. In fact, the high standards and protocols we set allow us to compete strongly against all the major retail brands.
Delivering quality field support is a major priority for growing the SPAR brand and improving the way we do business. And our dedicated retail support team is available to help franchisees with every aspect of operation whenever it is needed, including:
|
Each SPAR franchisee owns and operates their individual store and plays a vital role in their local communities. As an independent organisation, SPAR franchise owners pay no ongoing franchising fees, and more importantly, they retain all the profits from their own stores.
Franchise opportunities from 500sqm to 3000sqm are now available. So there’s never been a better time to discover what’s made SPAR the country’s fastest growing independent retail brand.
Mathew Hartley
Supermarket Sales Specialist
Preparing to buy a Supermarket
Checking your finances
Buying a business is a significant investment, so you need to sort out your finances early and be well prepared and professional when applying for a bank loan or approaching potential investors. This will give them confidence to back your business and convince the seller you are serious.
When checking your finances, consider:
- the purchase price of the business
- stamp duty, usually payable by the purchaser
- the working capital requirements for your business (your cash flow projections will show that figure)
- professional fees and charges related to the purchase
- any loan repayments and servicing costs, if applicable
All commercial lenders use the following criteria to assess loan applications:
- your ability to service loans (interest and periodic repayments)
- security (most banks require a 1st mortgage on real estate security and may lend up to 65% of the real estate asset being offered as security)
- the management and business skills of the borrower
- the trading history of the business (at least three years prior to purchase)
- The profit and loss and cash flow forecasts for three years (forecasts need to be supported by realistic assumptions about future trading).
It is important that you are able to supply the necessary information to the lender assessing your request.
Remember, every funding proposal will have its own unique features. Therefore, you should seek professional advice from your accountant or business adviser about the best way to organise funding.
Starting your research
Early research of potential businesses could include:
- scouting the location
- researching your competition (what do they offer that is different)
- checking the business's website and marketing materials
- trying the business's products or services
- checking demographics
- finding out why the business is for sale
- talking to the business's suppliers
- talking to the business's customers
- researching customer reviews about the business online
- performing a credit and historical search on the business's legal structure and/or its owners/directors
- researching industry and market trends.
Mathew Hartley
Supermarket Specialist