Did you know that Benchmark lists most recent sales data on the website?  Where the parties involved have allowed us to do so, we will post the basic details of all sales completed by Benchmark, around Australia. To see this information go to https://benchmarkbusiness.com.au/recentbusiness- sales/ or click on the “Buying A Business” tab when on our website, and then click onto the “Recent Sales” tab. This will provide you with a table which you can ‘sort’ to find sales data that may be helpful for you – as a buyer, a seller, or an advisor. Remember that not all data is able to be provided, and that there may be a timing lag between the date that the sale is completed, and the time when the data is listed on the web page. Visit our website for details! www.benchmarkbusiness.com.au      

Market Overview – April Lots of new listings this month so that is great news for all the buyers out there. The sales market will continue to be busy for the next few months as we approach the lead up to end of financial year. We often get busy again after Easter and when the kids are back at school. Buyers who have put off or missed out on a salon early in the year are often keen to get something going now so they can get into the salon by June 30 and get the benefits of solid trading conditions in the second half of the year. Tested Business Strategy Idea Scoopons, Groupons, Daily Deals, Cudo, Vouchers … DO NOT DO THESE IF YOU DON’T KNOW WHAT YOU ARE DOING!!!!!!!!!!!!! A few salons in the last few months have closed their doors because they have sold a large amount of these prepaid vouchers through their business. They did not get enough money in to cover the costs of the promotion (Wages, Stock etc). This means that they filled their appointment book with discounted clients and annoyed the regular full paying clients. In most cases these salons went broke because of this promotion… they closed the doors and some even lost their houses … Do not believe the razzle dazzle. These deals kill businesses … so give the sales person a big NO when they ask if you are interested. Most clients you will get from these deals will just be a voucher vulture and be onto the next deal at the next salon. John Kasapi 0422930549 Australian Business Brokers Of The Year  Australia’s Leading Salon & Spa Sales Specialist    

Whether you are seeking to start a purely online business, or to expand an offline operation online, there are several business models which you can consider. In this article I wanted to outline some of the various online business models that exist in order to give you some ideas to further research and ponder over if you are considering entering the 'e' realm. Note that this is a basic overview only and I have only listed the most common models. 1. Direct sales – physical goods: In general, direct sales (particularly of physical products) is usually what people think of when they think of ‘selling’ online. Direct sales of physical products is where you sell a physical widget to customer A via your e-commerce store, and you deliver those goods to the customers chosen location. It is important to understand that the online version of the direct sales business model is different to that of an offline physical shop based business model, and you will need to make adjustments to your procedures in light of the differences should you wish to move online with your physical store. Some of the variations within this online business model include:

a. You pack and ship – this is self explanatory. You manage the entire process, from inventory management to packing and handling. This is the model I initially used for my online bookshop, and unless you have good processes in place the chance of making an error is very high!

b. Drop shipping – This is where you sell a product which you physically do not see or stock yourself, with the order being processed by a third party. In this model you don’t see any products, and if you get it right it can be quite lucrative given the effort involved. Expect your margins to be low however, and if your third party supplier stuffs up then you will be the one blamed by the customer. Drop shipping is sometimes combined with white labelling in order to hide the third party involvement from your customer, making it all seamless in the front end.

2. Direct sales – virtual goods: This is a direct sales model where you sell ‘virtual’ goods to your customers on an item by item basis. The virtual goods can be anything from ebooks, to audio files, videos and anything else digital. The beauty of this model is that once you create your virtual products, you can flick the switch and in very very general terms ‘make money while you sleep’. Variations can include:

a. You produce – This is involves you producing the goods for download/distribution, or where you provide the services being offered.

b. White labelled – This is where you use material produced by someone else, but the customer only sees your branding and does not see the third party in the process, nor do they know that you didn’t actually produce the product.

3. Direct sales – services: Yes, even services can be sold online in single transactions. For example, an accountant could sell personal end of financial year tax returns, with full payment made online in advance of the service being completed. The customer then simply sends the firm all the relevant required information for completion. Why do this? The firm gets immediate payment upfront, no chasing required, no managing accounts etc. There are many many combinations for service based businesses who wish to take advantage of online sales. Variations include:

a. You deliver – This is where you sell the service and complete the service in-house.

b. White labelled – This is where you sell the service, but the order goes to a third party for completion, all under your branding without the customer knowing otherwise.

4. Subscription – works for both physical and virtual goods and services: I personally love this model and have several subscription based projects of my own in the pipeline. In the subscription model you sell services/products (physical and/or digital) via your website, taking payment electronically, and delivering according to subscription levels and schedules. This model, if well setup, can be very lucrative, especially if you have minimum subscription periods that your customers must adhere to. In addition, adding a subscription model to an existing direct sales model can help smooth out the frequently seen monthly revenue ups and downs, making it easier to manage your cashflow and forecast ahead. 5. Online marketplaces – this model is often used by start ups, those wishing to quickly move stock and those who wish to create and run an online membership based market business. Variations include:

a. Existing – example Ebay; Gumtree: This business model is built around the use of existing platforms like Ebay to sell. I am personally not a fan of this model as it is not the easiest to get right, given the incredibly high competition and the strong focus from the customers on securing the best for the cheapest. Having said this, I have used this model with great success and built a start up from scratch using Ebay for the start, with a transition away from Ebay to a direct sales business model once I hit certain internal targets.

b. In-house – you develop your own market place: This is for anyone wanting to create their own version of ‘Ebay’. This is a very rarely used model that is costly and difficult to execute, so if you have this on your mind I strongly recommend you get in touch with me for a chat.

6. Combos – This is where you deploy more than one business model to run at the same time, or, you transition from one model to another based on various internal criteria, and business or market needs/factors. An example could be to develop a primarily subscription based business, but at the same time offering some items for direct sale as well. One of the beauties of the digital (online) world is that the possibilities are broad in terms of how you setup your online business. In addition, a digital model is far more flexible than the traditional bricks and mortar version, allowing you to evolve quicker, cheaper and more effectively than your offline counterparts. Interested in knowing more? Give me a call, drop me an email, I am always happy to help. Written by Peter Spinda, CEO www.digitalduet.com.au Peter is the founder of Digital Duet, a Brisbane based company specialising in the design and development of business websites, marketing strategies and online business models. Visit Digital Duet today.  

Have a safe holiday!

You can only sell your business once. You don’t get a second chance, and you can’t go back and do it again. So you want to get the best possible price that the market will pay. Later on in this report we’ll show you how to do that. But before we look at how to get the best price, you need to think about how to set the right price for your business. Remember that most buyers want to pay the right price. This does not mean that they want to pay as little as possible. In fact, most buyers feel suspicious if the business is too cheap. Buyers feel more comfortable if they pay what they think is a fair price. Think about it. If someone offers you a new Ferrari for $10,000.00 you immediately think “What’s wrong with it?” Of all the things that determine how long it takes to sell a business it’s not clever marketing, or internet, or referral, or anything else – it is THE PRICE. Getting the price right is critical! The first few weeks of marketing a business are critical. If the price is too high you’ll have a “stalled start”. To avoid a poor start you need to properly and accurately estimate the value of the business. Estimating business value is a skill, learned over many years. Only experienced, competent professionals can capably evaluate the value of your business. A business is not worth what you owe the bank, or what you need to pay off debt – it’s worth what the market will pay. But there is a way to get the market to pay more – which we will look at shortly. It may be necessary to get several professional opinions of the value of your business, as only one may be too high or another too low. Take time to get the price right – it is worth taking the time to get the price right at the start. If you have an independent business valuation done, you will be able you use that valuation to provide justification for your selling price. This technique will help eliminate negotiation on price from the buyer, and the cost of the valuation will be more than recovered in the selling price. On some rare occasions it may be best to offer the business with no asking price at all.

“In July 2014, I came across Mathew Hartley from Benchmark brokers as I was looking to buy a suitable business. Mathew is a highly qualified and professional and he a specialist in his field. I find him he is very straight forward, unlike other brokers, and he will show you the best he has to offer. He identifies your interests and will assist you in every way. I would highly recommend him as your agent and doing business with Benchmark.” Thanks you Mathew, Sameer Bhathal

“We would recommend Benchmark Business and especially Ian for the sale of any business type.  As our business had limited buyers due to technical knowledge he had great knowledge on where to source prospective buyers. He was very easy going and well informed on all legal and sale strategies.  We found he was very approachable in or out of business hours, which we found exceptional.  He always kept us informed on any issues that he thought important.”

Adelaide, South Australia Price: $1,500,000+stock (approx. $15K)

• Rare Opportunity
• Family entertainment business
• Plant & Equipment written down value of $885,676 in 2014
• Adjusted net profit $474,278 in 2014
• Long established and proven track record

  Established in the 2001 and 2005, this business has a proven track record and can be a great passive income generator.   This business has two sets of systems: card system & cash system.   You have chance to expand this business in other premises!   Find out more today, ring Yiling Tang 0412 265 932 and sign Non-Disclosure Agreement through email yiling@benchmarkbusiness.com.au , we will go through all the details with you step by step. Yiling Tang 0412 265 932

“Ian Salter was very helpful and professional in the whole settlement process. The purchase had its challenges however Ian ensured that all items were dealt with in a professional and diligent manner enabling the settlement to proceed without problems.”

"My brother & I were selling our store and after unsuccessful attempts by other agents, we contacted Matthew Hartley from Benchmark.  His energy and devotion to the sale of our business was amazing.  He treats it as if he was selling his own business.  Not only did he secure a sale for our business, he also found another business for us to purchase.  I would definitely use Matthew again and highly recommend him to other business owners who are looking to sell or buy."