Ready to buy a Business? Buying a Business is one of the most significant financial & lifestyle decisions you’ll make in your lifetime. From figuring out pricing to why you should choose a certain type of Business, there are many factors to consider before you purchase a business. Out of all the questions we have when buying a business, one stands out. “How to Spot a Good Business?”  Here are few tips we hope can help you in making the right choice. Use a trusted Business Broker: We all know that Business Brokers get a cut of the sales price of a business which makes some buyers hesitant to use a broker, because they believe it drives up the business cost & they can make it cheaper by directly dealing with the seller. Keep in mind that the seller, not the buyer, pays the commission. Yes it might be true that a listing agent (the agent representing the seller) is there to protect the seller’s interests, it doesn’t mean that you’re not saving money. A good Business Broker who works for you can protect your interests and guide you through the buying process, from negotiating a price to navigating through inspections, clarifying details, contracts, up until the completion date when you take over. Don’t necessarily buy for the market conditions today: Buying a Business will be one of the bigger financial commitments you’ll make in your lifetime. Before you buy what you think might be your dream business, consider your long-term plans and future. Don’t just assume that the market for the business will grow 10 years from today, just because it has in the past. Do thorough research.  Determine whether the business can survive as it is in the future.  If not, how much more should be invested to increase or sustain growth? If the market conditions change what can I hold on to? What will be the eventual value? “All Weather” Business: A good business should be capable to sustain in any market conditions, there can be increase or decrease in profits, but it should never “go South” in any market condition. Take Milk Bar’s for example, they were the most sought after by Mum & Dad business buyers for many decades. But today after the supermarket price revolution, milk bars are hard to find, some have gone broke, some have been converted into houses, & some (yes some) still survive and run with good profits. Those who survived were able to adapt to the market, integrate other offerings, and are able to make good profit even today. Those who spotted the good milk bars and differentiated from other milk bars, are reaping the benefits even today. All Good Business are expensive, no that’s not true: If you are willing to open your outlook, you will find good business even cheaper than a bad business. What is good business to you might not be the same for others. How do you say a business is a good business: Just by profits for today? Profits in the past? Location? Managed or Owner operated? A good business in general should be a business with good profit record in the past, current & with a reasonable future expectations, a business where you have knowledge or experience in managing, a business where the location doesn’t have room for any more competitors than it already has, a business where there is opportunity to improve and most importantly a business where you have enough funds to invest with less or no loan repayments. Consider all these when you buy your next business, it will help you in Spotting the Good Business!   Karthik Arasu Business Broker – Melbourne If you are looking for the best business brokers Melbourne, then click this link Businesses for sale Melbourne

Just like housing, why does one home in one suburb sell more than the same home in another suburb? There are number of reasons why stores that trade similarly sell at a higher price than the other. These can be location, age of store, type of centre, size of store, Gross Profit, competition, and also rent. Not all stores are the same. A store that has a lower rent and lower GP could sell for more than a store with higher GP but average rent.  A bit strange isn’t it? It is important that when comparing stores that these items are looked at individually as a store that is say 6 years old would potentially have less maintenance and repairs or equipment to replace than a store that is 15 years old and has had little or no equipment upgrade completed. To ensure you maximise the return on your business you should review how old your equipment is, and look at investing in new equipment each year. Make sure all current refrigeration and equipment is serviced regularly. Ensure that when the opportunity comes to have a rent review completed if you feel you are paying too much, or there has been a dramatic downturn in the area. Present your business well with a fresh coat of paint and new polished floors, stocked shelves as this will make difference on the number of buyers potentially interested in your business. The more buyers interested the better chance of selling your business at the best price.   David Zampech Supermarket Specialist Mobile: 0422 671 375 Email – davidz@benchmarkbusiness.com.au PAY FOR THE PAST, BUY FOR THE FUTURE

It is no secret that there are hundreds of brokerage firms and just as many business brokers nationwide. The key is to know what to look for before engaging a business broker to represent you and deliver an outcome that is a win-win for all. Just as if a buyer would conduct a due diligence process before purchasing a business, you should consider conducting a due diligence / interview with the business broker you intend to engage.   What questions should I ask then?  17 ESSENTIAL CHECK POINTS TO MAKE BEFORE YOU ENGAGE A BUSINESS BROKER.  Here is the list that was in that blog…   THE ESSENTIAL TIPS:  before engaging a business broker

1. Check if the business broker is licensed in your state
2. Ask to view their personal license.
3. Cross check the license number with the office of fair trading in your state.
4. Where is the brokerage companies head office based?
5. Is the company an accredited Real Estate Agency?
6. How long has this brokerage company been in business?
7. What type of licenses does the company hold and which states?
8. Ask for the principals details and ask to speak or meet with them.
9. Ask if you can come to their head office to be shown around on how they operate.
10. Is the broker a specialist? If so, what area do they specialise in and how long have they been doing that?
11. What have they sold that is similar to your business?
12. Ask them to explain their methodology to you (or preferably your accountant) on how they came up with the price.
13. What level of service is to be expected from the broker?
14. How often can I expect communication?
15. Will you be the same broker throughout the entire sales process?
16. Can you run through the entire process from start to finish?
17. I would like to discuss my options to list my business with my solicitor first, do you mind if I do this?

  You can view the full blog by clicking on this link: https://benchmarkbusiness.com.au/17-essential-check-points-to-make-before-you-engage-a-business-broker/   If you adopt these 17 essential tips before engaging a business broker, then you can rest assured the small investment of time (your due diligence) is going to give you comfort and piece of mind as you move forward through the sales process.   Ian Salter – Senior Business Broker   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

I enjoyed a coffee last week with a couple who have owned and operated a small suburban Coffee Shop & fast foods outlet for the last 8 years. They are now ready to move on, and already have their next venture underway. The Coffee shop has been good to them. They have purchased three investment properties out of profits and are funding the new project without any borrowings. They have built a good business – growing it through pleasant personal service, excellent food, cleanliness, and hard work. That said, they only open 6 days per week and 48 hours per week. Now they are ready to sell. Because they have grown the sales and profits they will make a substantial tax-free capital gain. Their story reinforces that owning your own business, gives you control over your destiny, independence, challenge, and the opportunity to earn a really high income and a real sense of achievement and satisfaction that an employee can never experience.   Bruce Rylance Benchmark Business Sales & Valuations

Let me share with you a little of my personal story. I was looking for everything mentioned in the heading above back in 2005. I was working for a corporate company in a management position, lots of pressure, working hard and getting nowhere (sound familiar?) I decided to step away from that position, to my wife’s horror, (given that we had four dependent school children at home). Yes, I walked away from a secure full-time employment with a salary package -blah blah blah! I was pressured, unhappy and needed more! (again, sound familiar?) In 2005 I decided to do something about it and make a change in my life, work for myself, as a licenced business broker. Long story short, I am now entering my 11^th year as a professional business broker with Benchmark Business Sales & Valuations, I can earn whatever I chose to earn per annum (open-ended income). Over the last 10 years I have grown as a person, attended courses of my choosing, educated myself and have been recognised and rewarded within the industry for “excellence as a senior business broker”, I’ve been able to do things with my family that my salary paid position would never have allowed me to do – time wise or financially. My wife’s had two new cars, we have taken our entire family of six (plus grandchildren) overseas a couple of times and achieved a whole lot more…your probably thinking…SO WHAT! Don’t get me wrong, I’m not bragging. I’m here to tell you that this could be you, you don’t need formal qualifications, or year 12 school grades etc… what you do need is desire and a why? I have found that the people that have all the good things in life are the ones that are prepared to do something about it, they seem to be on the other side of that line, so if that’s what you want and you want to be on the other side of that line, then do something about it. Nothing is going to come to you unless you make it happen. In 2016 – we will expand our franchise division into Brisbane, Sydney & Melbourne. I’m looking for self-starters who want to work for themselves, want to learn, thrive in a team environment that will support them and wish to be mentored. If this is you, direct your enquiry now to admin@benchmarkbusiness.com.au or call 1300 366 521 today. Come and join the sales team that gets results   Ian Salter – Franchise Specialist

Although small businesses make up 96% of all enterprises in Australia and employ half of Australia's workforce, small business owners often have no internal expertise to turn to when it comes to managing the complexities associated with staff, despite facing the same people management issues as big businesses with substantial HR departments. THE KEY STATS:

• Approximately 18,000 Unfair Dismissal Claims in 2014 with nearly half coming from SME’s
• Last year there was over 4,500 audits done nationally by the Fair Work Ombudsman
• Over $4,000,000 was recovered in unpaid entitlements
• Sham Contracting complaints has increased by 46% in 2013/14 compared to the previous year
• Complaints from visa holders increased 25% from previous year

www.fwc.gov.au CASE STUDY 1 An employee was awarded over $30,000 in compensation, after receiving a final written warning and a demotion because she left work early to collect her child from school. This was held to be adverse action by the employer because of the employee’s family responsibilities. With a potential uncapped award of damages, and significant legal costs to defend a matter with the Federal Court, the growing number of general protections claims is a worrying tend for many small businesses CASE STUDY 2 In 2014, two franchisees of a national fast food chain were fined $110,500 in total for paying less than that National Standards. The majority of the workers were international students from non-English speaking backgrounds, with a third of them under the age of 21. The employees were back paid once the Fair Work Ombudsman commenced its legal proceedings. CASE STUDY 3 A public service employee who verbally abused senior staff, sexually harassed female co-workers and bullied junior employees whilst extremely intoxicated at a work Christmas party was found to have been unfairly dismissed as the employer had not clearly established their conduct policies to cover behaviour at such events. Most reasonable business owners would assume this was instant grounds for dismissal however they would be proven wrong. Therefore with the ever expanding minefield that has become Australia’s Workplace relations arena, what do you do if you are SME without a dedicated HR team to work round the clock for you? HIRE A HR MANAGER Although this seems this most obvious answer, it is not always the correct one. Even with a dedicated HR manager in position unless best practice systems are already commonplace, they will most likely be chasing their tail over simple paperwork and not focusing on the big picture. This is also a very expensive undertaking with good HR managers demanding circa the $100k mark. A cost most small businesses can’t afford. RISK IT Most business owners think it won’t happen to them, because if it hasn’t already, why would it? That is something I hear all too often and with approximately 18,000 unfair dismissal claims in 2014 and over 4,500 Fair Work Audits it’s no longer a question of if, but when. Most business owners don’t realise that it only costs a disgruntled employee $60 to lodge a complaint or if they can prove financial hardship it costs them nothing. The average time from application to finalisation (2013/14) was 146 days. That equates to half a year of worry instead of being able to focus on doing what we know you love doing best, growing your business. OUTSOURCE IT There are a number of options for business owners to utilise in terms of outsourcing. However they are not all equal in the service they provide. Some will offer you the moon but only deliver a rock which could sink you deeper in water than you already are. Some options are very limited in their offerings so it is important to pick one that incorporates a number of strategies to give you the best line of defence. THE HR ASSURED DIFFERENCE Backed by Australia’s leading Workplace Relations Advisory Firm, FCB Group, HR Assured takes out the guess work for businesses by providing Unlimited and Anytime support for Workplace Relations, HR and employee relations, as well as legal representation should the need arise. Importantly, the service is provided for a fixed monthly subscription with no additional out of pocket expenses. The 4 key elements to empower your business include:

1. An Audit of your organisation’s people management processes, policies and procedures to identify and address any areas of risk;

2. Unlimited and anytime support through our 24/7 Telephone Advisory Service, which is like having an employment law specialist at your disposal whenever you need them;

3. HRA Cloud, our online employee management tool, continually updated by our employment law specialists; and

4. Complete Legal Representation by FCB Workplace Law to protect you in the event that an employment related claim were to arise (e.g. Unfair Dismissal, General Protection etc) to provide absolute peace of mind that all associated legal costs and damages will be covered up to $2million p.a. with no excess payable in the event of a claim.

  In short, no matter what employment issue you are facing, you can be sure we have you covered. If you have any questions or would like to get a quote for your business please contact Callum Haggerty on 0404 550 687 or email cih@hrassured.com.au.  

Each year since 2008 the REIQ has recognised the State's best real estate practitioners at a gala event in Brisbane. The event is known as the “REIQ Awards For Excellence”. About 500 people attend the event to support and laud the finalists and winners in each of the 14 categories. Benchmark is proud and honoured to announce that this year’s Business Broker of the Year is Ian Salter. Ian is a senior broker with Benchmark and he has earned a reputation for professionalism and service amongst his clients, colleagues and purchasers over his 12 years as a business broker with Benchmark. All of the team at Benchmark congratulate Ian on his award, and the part that he has played in the development of business broking in Queensland. Benchmark is honoured to have had finalists in the REIQ Awards For Excellence every year since 2009. Benchmark brokers have been awarded Business Broker of the Year in 2013, 2014, 2015 and 2016. All winners should be congratulated for their continued commitment to best practice. These annual awards provide an opportunity to salute the cream of the real estate industry who through their dedication, integrity, and professionalism.

Many café and restaurant owners can lose sight of how to increase sales, they get too busy working in their business rather than working on it. The value of your café or restaurant is underpinned by your sales and net profit figures, so the higher you can get them, the more the business is worth. A classic tool to increase sales, and an example of working on the business is through the introduction of effective affordable marketing. Currently there are many forms of marketing that are low cost, or even free! The single best thing an owner can do for their restaurant or café is to revamp the marketing platform, especially as it relates to online marketing. The biggest reason more independent restaurants and café owners don’t actively market the business is that they don’t have time. The second biggest is that they don’t know how. They think it is all too hard and put it off until another day. A little bit of effort in putting place the marketing can have a dramatic impact of the financials of the business and therefore make your café (or restaurant) more valuable and saleable when you chose to exit the business. There are several ideas for business owners to explore in developing the marketing platform. Among those that can have a positive impact on the business and its financials are:

• Improving social media: Daily texts, Facebook, and Twitter posts can help expand the clientele base and give local customers a reason to walk into the building.
• Providing online only deals: This can be implemented through the website or on a group discount platform like Groupon.
• Build a loyalty program: Collecting names and emails and building a list of customers can create a backbone for continuous marketing throughout the year.
• Partner with local businesses: Partnerships can include sharing online advertising space that encourages the customers of neighboring businesses to give yours a try.

In most cases, the best online messages in this business involve creating events, promoting special offers, and building buzz about the business. Business owners that improve their top line sales will invariably increase their net profit. This is a positive for the owners when they are looking to sell. The net profit figure provides the basis for a business appraisal and the multiple is applied to that net profit figure. So the higher the net profit, the more valuable your café or restaurant will be.   Jo-Anne Wilson – Café For Sale Specialist

SPAR Australia welcomed the addition of another new store to their family on 30th January, 2016, with the Grand Opening of SPAR Wilton.   SPAR is excited to be working with retail veterans, Paul and Renè Randall, as well as their children Aidan and Maliyah. Paul and Renè have a combined forty years of retail history, including Senior Retail Management experience and ten years of store ownership.   With the opening of their new SPAR store in Wilton, south of Sydney, the Randalls will support the local community by providing a much needed supermarket in the new Wilton Plaza Centre, working with local community groups and providing employment opportunities. Until the arrival of SPAR Wilton, locals were forced to drive to Picton or Campbelltown for their grocery needs.   “We aim to ensure we are a part of the growing community,” says Paul.   SPAR Wilton will offer superb fresh produce, a full service deli, quality meat delivered fresh daily, a great grocery range and strong dairy, frozen and general merchandise ranges to ensure the community can source all of their supermarket needs locally. Their friendly service and value offer, combined with their convenient trading hours will ensure SPAR Wilton’s popularity with their customers.   “We will be a store where you can meet all of your weekly shopping needs at competitive prices. We have also implemented a great loyalty program to reward customers who shop with us.” says Paul.   SPAR Wilton welcomed new customers to inspect the store and join the celebrations at their Grand Opening which was held on Saturday 30th January. There were taste testings, giveaways, a sausage sizzle, live entertainment provided by the local community radio station and great specials. Children were entertained with a very popular kindi farm, a jumping castle, face painting, fairies, a magician and balloon characters. The event was very well attended, with over a thousand locals coming along to support the launch!   State MP Mr Jai Rowell, Wollondilly Shire Mayor Simon Landow and SPAR Australia’s Managing Director Lou Jardin joined the Randall family for the formalities, each saying a few welcoming words and participating in the cake and ribbon cutting ceremonies. As soon as the ribbon was cut, customers flooded into the store and were pleasantly surprised by the great range and value they found on offer.   Providing significant local employment, as well as the convenience of a supermarket in Bingara Gorge Estate, has already resulted in huge support from the community. The great team of enthusiastic staff set very high standards within the store right from day one. Their enthusiasm and friendly approach to their customers are an asset to this new business.   Located at Shop T4, Wilton Shopping Plaza, 1 Greenbridge Drive, Wilton, SPAR Wilton will offer 7 day trading, from 6am to 8pm daily.   Locally owned and operated, SPAR Wilton is part of the worldwide SPAR family. Over 12,300 SPAR stores in over 40 countries meet the needs of over 13 million customers daily. At SPAR you can be assured of great service, a great range, low prices every day and specials that will SAVE you money!     Mathew Hartley Supermarkets For Sale Specialist