Ok, so you've been running your business a while now, and it's going … well, the way it's always done. You might be feeling, like many other business owners I work with, that there must be a better way to do some things. There are glitches, annoyances, recurring problems that keep you awake at night and mean you can't turn your phone off. (Go on, think about it now. What would happen if you turned off your phone for 48 hours? A week? Did that scare you? Oh dear. Keep reading!) When you start a business you start with the basics and work your way out from there. It's easy to forget that actually, the basics always remain absolutely central to how well your business performs year on year, how easy your job is, how good your staff retention is, how smooth your cash flow is and how well you attract and keep customers. So here are eight areas that are the basics of your business drivers. Answer yes to most or all of these, and you have a thriving, valuable business and you are ready to sell for a very favourable outcome. Answer no to half or most, and you're right to be scared.

1. A quality product. Are you still focused on offering products or services that you genuinely believe in? This isn't just a driver of business, it's a driver of you and your staff. If it's got diluted or compromised, now is time to realign with it.

2. Getting noticed where it counts. Do you have a clear message about why your product or service is so good, and communicate that to the right markets?

3. Making the most of what you have. Are you taking full advantage of the opportunities already available to you, like the location of your premises, the expertise of your staff, the equity in your business?

4. The bottom line. Is your cash flow regular and plentiful? Are you paying more than you should for some supplies, or charging less than you should for some products? Do you chase defaulters? Thank prompt payers?

5. ..Do you have a broad and loyal customer base and a range of key suppliers? Do you aim for steady, manageable growth?

6. Have you got ideas about how you might extend your product or services into new markets or new offerings?

7. Have you got the time, funds and appropriate staff or other resources to act on your ideas for the business?

8. Internal support. Do your back-office systems actively help your business sell products, implement improvements, receive money and keep customers?

Will they run without you if you're hospitalised for a month? How did you go? The good news is that there are many ways to turn any of these areas around, they're likely to be easier than you think and, in most cases, one solution will improve many areas. Benchmark Business Sales can help you to get it right so you get the best price possible for your business…..Remember, you only get one chance to sell your business so give yourself the chance of the healthiest outcome.   Nikki Katz  

Today I would like to comment upon business owners – and the market in Victoria.  In the current market vendors are having problems making a decision to sell. They are invariably facing a huge decline in income from current investments (shares, cash deposits) as compared with what they obtain from their current business.  Retention of the business is a real option. It is easy for a business owner to take a “short term” view of their situation, and to make business decisions based upon current circumstances – rather than taking a long-term “big picture” assessment of their current position, – and have their goals and objectives can best be realized. Many SME business owners in Victoria are finding it difficult to fully commit to investing their businesses.  We find that business owners who make long term strategic plans, and regularly review those plans, enjoy vastly better outcomes in the long term. It is important to advise vendors of the current market and the potential market for selling a business and what can affect future prices (more and more baby boomers selling, interest rates increasing, technology affecting some businesses, on line competition etc.).  This way the vendor is in possession of all current market facts allowing for an informed decision.  It removes some of the uncertainty.   Business Broker Owen Mitchell

Are you a cafe owner that is seeking that opportunity of a cheap site with a view to fitting out, renovating or just giving it a face lift? If you are considering this option over buying an existing site (with proven figures) and a fit-out which is already proven – then take note! One of the biggest issues we see today from business owners in the hospitality industry (but not limited to) is: OVER CAPITALIZING! Before spending a load of cash on that illustrious fit-out, here is something to think about: In simple terms hospitality businesses are valued by EBITDA x multiple of an average of 2 times (no greater than 4 times). Or For every $1,000 in turnover per week x $10,000 to $40,000 value on the goodwill of that $1,000 turnover. So take an average cafe fit out with kitchen as an example: Based on empty store take over (new lease): The cost to establish is – $200,000 fit out (at least, for something decent) So, as a minimum without adding in cost of financing, marketing, opportunity cost of income loss during fit out, operating costs upon opening whilst sales not covering expenses,  the minimum required sales per week to justify the above $200,000 fit out is: $12,000 per week – for break even only. Most operators don't think carefully enough about their exit strategy. When the 'need' to sell comes along, owners who have “over-capitalized” are unable to recoup what they have spent. A cafe business (like any business) should be about net profit, and also about the value added on exit. As the old saying goes, "buy low & sell high", not the other way around. So, before going ahead with that fit-out, face lift or renovation get some advice from a business strategist.  You could save hundreds of thousands! Think smart, numbers don't lie. Call a specialist for a confidential chat. Specialist – Emil Parthenides Food Service Division benchmarkbusiness.com.au  

LinkedIn is a business that started in a living room, much like Virgin began in a basement. Here are five top tips I’ve picked up over the years.

1. Listen more than you talk

We have two ears and one mouth, using them in proportion is not a bad idea! To be a good leader you have to be a great listener. Brilliant ideas can spring from the most unlikely places, so you should always keep your ears open for some shrewd advice. This can mean following online comments as closely as board meeting notes, or asking the frontline staff for their opinions as often as the CEOs. Get out there, listen to people, draw people out and learn from them.

2. Keep it simple

You have to do something radically different to stand out in business. But nobody ever said different has to be complex. There are thousands of simple business solutions to problems out there, just waiting to be solved by the next big thing in business. Maintain a focus upon innovation, but don’t try to reinvent the wheel. A simple change for the better is far more effective than five complicated changes for the worse.

3. Take pride in your work

Last week I enjoyed my favourite night of the year, the Virgin Stars of the Year Awards, where we celebrated some of those people who have gone the extra mile for us around the Virgin world. With so many different companies, nationalities and personalities represented under one roof, it was interesting to see what qualities they all have in common. One was pride in their work, and in the company they represent. Remember your staff are your biggest brand advocates, and focusing on helping them take pride will shine through in how they treat your customers.

4. Have fun, success will follow

If you aren’t having fun, you are doing it wrong. If you feel like getting up in the morning to work on your business is a chore, then it's time to try something else. If you are having a good time, there is a far greater chance a positive, innovative atmosphere will be nurtured and your business will flourish. A smile and a joke can go a long way, so be quick to see the lighter side of life.

5. Rip it up and start again

If you are an entrepreneur and your first venture isn’t a success, welcome to the club! Every successful businessperson has experienced a few failures along the way – the important thing is how you learn from them. Don’t allow yourself to get disheartened by a setback or two, instead dust yourself off and work out what went wrong. Then you can find the positives, analyse where you can improve, rip it up and start again. Courtesy Richard Branson

Hi my name is Neil Barry and my speciality is Newsagencies. Having been an owner for 20 years has given me a good insight into the workings of the industry, and a good knowledge of the “pros and cons” a new owner can expect to experience. In my last blog I touched on the different types of newsagencies such as retail only, retail and delivery and delivery only. In this blog I would like to tell you why I think newsagencies are one of, if not the strongest franchised business model going. Firstly the business is territorial. By virtue of a contractual agreement with the publishers a delineated territory forms part of the agreement ensuring the business is the only supplier of all publisher’s products within that territory. The only exception being the very large supermarket chains who because of volume are generally supplied direct. Having said that there are some exceptions where the supermarket is a sub agent of the newsagency and relies on them for supply. In the case of a retail only newsagency i.e. one situated in a medium to large shopping centre the territory is normally the property line of the shopping centre, and defined as such in the publishers contract. In this case the lease also defines your territory within the centre and it is vitally important when checking the “permitted use” clause in the lease that it does not have exclusions that would affect the normal operations of the business at present and into the future. Retail is a competitive field and successful business owners need to be able to adapt to new trends, fashions and unforseen circumstances. Secondly the approval process when buying a newsagency can seem initially a bit daunting. Approvals from publishers need to be sought with proof of the buyers ability to not only afford the business, there are restriction applied to buyers concerning the debt to equity ratio, but also their business acumen and to this end a business plan is essential. All this only goes to strengthen the industry by ensuring only good business minded people with the financial strength enter the arena. Golden Casket is the franchisor for newsagents and as such has a separate approval process from all others. A prospective buyer must undergo an interview and again prove their financial ability and business acumen and also provide a fairly detailed business plan, a template for this is provided. Golden Casket is required by law to provide prospective buyers with their disclosure statement and franchise agreement as part of the approval process. Following this, once approved, a buyer will be required to complete an intense one week training period and the week preceding settlement a buyer must work in an approved newsagency for around 40 hours as a further learning experience. All this is to ensure a new buyer is a competent newsagent in every respect i.e. financially, business experience, product knowledge and customer service. Thirdly, this is getting back a comment I made in an earlier blog and that is that the Golden Casket products, Lotto and Instant Scratch tickets, are the life blood of the industry. The foot print of the corporate image is a very small part of the shop and process of selling is easy, fully automated, fast and completely secure, and the commission is paid weekly to the business. There are regular lotto jackpots and of course the ever possibility of lotto jackpots growing to $90 million or more is the major hook that keeps customers coming back and back and back to the shop. On some occasions customers will return to the shop several times a day to cash and collect scratch ticket prizes. The advertising budget of Golden Casket is huge and every newsagency benefits from the many advertising formats used from TV, posters on bus and bus shelters, in store and many others all designed to attract the huge volume of foot traffic only newsagents can. Everybody wants a piece of the many millions in prizes the Golden Casket give out each week. No small business can lay claim to the number of customers who visit a newsagency each week. The very first rule of retail is customers through the door, well it’s a given with newsagencies, thanks to Golden Casket, the rest is up to you the owner. Call me to talk about selling or buying a newsagency business. Neil Barry 0419 720 262

Unfortunately some owners do not think about what their exit strategy will be until they want to move on from their business. The sale of the business needs careful planning, and strategic decisions need to be made, during the course of running the business over a number of years; in order to maximize the sales value. It can’t simply be left until the last minute. The experience of the Benchmark Business Brokers provides real value to business owners who may be thinking about selling, and assisting them in maximizing their price. Many business owners think that when they make the decision to sell, it will be a simple and painless progression onto the next part of their lives. In reality many business owners are shocked when they discover that potential buyers aren’t beating down their doors. They know they have a good business; they have made a good living from the business during the course of them running it. But selling is not as easy as expected. Many owners will say that the business has been good to them! These owners fail to realize that the buyers have to see value in the business. If the business is not well placed and strategic decisions made to increase the value of the business, they may well find themselves running a business that they can neither sell at a price they desire, nor can they walk away from them due to ongoing commitments that the business has. They have invested much time and effort in establishing and running the business so that when it comes time to sell they need to put some plans in place to maximize that value. Many business owners don’t think they will be in that position. However consider the following questions:

• Is your business salable now? If not do you know what needs to be done to achieve that; our experienced business brokers can help with that

• What needs “trying” in your business. Why haven’t you done that?

• How would the business operate without you, would it be able to run in the same manner with the same profitability if you weren’t there everyday?

• If your business were on the market today, would you buy it? You know everything about your business, what are the negatives in the business that you can address today to improve its saleability.

• What would you pay for it? If you were looking from the outside what would you be looking for to justify the price you were paying.

Preparing for the sale of your business starts well before the “For Sale” sign. Our experienced team at Benchmark Business Sales can help you to maximize the value of your business.   Business Broker Jo-Anne Wilson

Benchmark Business & Commercial Sales would like to congratulate Caltex Wetherill on winning the MTA NSW Service Station Association Division member of the Year Award at the 2014 MTA Motor Industry Awards of Excellence. Finalists, sponsors and special guests enjoyed a remarkable evening of fine food, great entertainment and most importantly the announcement of the 2014 MTA NSW Motor Industry State Awards for Excellence Winners at the Awards Dinner held in November. The judging process was extremely rigorous process, and it cannot be stressed enough that by being a Finalist, is a remarkable achievement that should be celebrated. Benchmark Business & Commercial Sales were extremely honoured to sponsor the  'MTA NSW Service Station Association Division member of the Year Award' category and it was great to see many finalists congratulating the winners in their category. At Benchmark we have many, many years of experience in service station operation, oil company management, and real estate training, our team of professionals at Benchmark know how to provide service and advice to owners selling a service station and potential buyers with with an interest in the specialised service station industry – in fact we have a whole division dedicated to the sale of service stations known as 'Service Station Sales Australia'.

The simple fact is that developments in the online world are moving at lightning speed, so much so that a website built two years ago is considered out dated, unless it has been regularly updated with fresh content, new web tools have been integrated and the website is more advanced than it was when first built. So this year, what are the enhancements to your website you need to consider as a business owner in order to remain ahead of the pack?

1. Mobile Responsiveness – This is a big one. As more and more people use their mobile devices (such as phones, tablets) to surf the web and make transactions, there is a greater need for businesses to ensure that their website is ready for the requirements of mobile browsing.
2. Take advantage of faster and faster internet speeds – Given the speed of the internet which most people can now access, your website can now explore functionalities and designs previously not possible due to slow load times. High quality images, videos, unique design effects all add to the overall look and feel of your website.
3. Design matters – With what is now possible in terms of design there is no excuse for having a website looking like it belongs in the early 90’s. In a growing trend, people turn to websites before they make contact with a business, and so the experience they have with your website, both in terms of look and functionality, absolutely matters. So look at your existing website. What does it say about your business?
4. Process Improvement – As businesses become more and more web savvy, the internet of things means that your website will evolve from becoming just a billboard promoting your business, to an integral part of your business, an ever evolving tool that helps improve your processes and generate efficiencies for you and your team.
5. Developing an online business model – New web tools now enable offline businesses to not only make process improvements, but to generate new sources of revenue by integrating an online business model into their existing offline model. Smart businesses are already using this approach to grow and expand into products, services and sales territories previously not accessible via traditional means.

While the above may seem daunting to you especially if you haven’t had much web experience, there is plenty of useful information to be found by simply researching the topics mentioned above. At the end of the day if you wish to remain competitive in this ever evolving digital landscape, then knowing about, understanding and implementing the above will help ensure your business remains competitive in 2015. Written by Peter Spinda, CEO www.digitalduet.com.au Peter is the founder of Digital Duet, a company specialising in the development of business websites, marketing strategies and online business models.

Service Stations or ‘Servos’ as we affectionately call them, are one of the few Successful Business Models available today – compared to many other Businesses. If you ask me every Service Station business makes more than enough money, better than most other businesses. If it doesn’t make good profits, then there are usually two main reasons:

1. The owner (or operator) is running a wrong business model. For example; poor customer service, not properly trained staff, bad merchandising, poor stock management, no financial planning in total bad practice.
2. They have Over Paid for the business or they have Over Stretched themselves by borrowing too heavily. Working capital is required to run a profitable service station.

How can we avoid these two situations?

1. Regardless of whether you have been running the business for few years – or just starting out, it’s better to see through fresh eyes. Because we become ‘Store Blind’ when we are dealing with the store day in and day out.
2. Well-trained staff with Great (not just Good) Customer Service practice is essential for any business to be successful.
3. Effective merchandising & promotions to compete with competitors should be a part of everyday business to be ‘The Choice of Destination’ for customers. We have to keep in mind, there are many Service Stations from all different brands located near you and everyone is fighting for your customer, to stand apart you need to be the best. It is always worth to pay a professional to consult, re-structure or formulate a Business plan to specifically suit your Business.
4. You must always consult an expert to value your business before purchasing (or selling) to ensure that the business that is being purchased (or sold) is being transacted for the right value.
5. Proper financial planning is required to have enough working capital to run the Business smoothly, the last thing you want is to have a customer leave your store without the item he wanted. (The stock required to operate should always be maintained to optimum level). So get the business value checked to ensure that the business you are buying is priced correctly and you could operate without financial burden. If you are selling a business, you must also ensure that it is priced correctly so that you can sell it within right time, without risking “losing” the market. This simple check will avoid a world of stress and you can do what you should be doing; running a successful Business without stress.

Remember, “There is no such thing as bad business, it’s always the owner who is doing the business badly”. For Free Evaluation of you Service Station Business call – Karthik Arasu on 0422 310 325