You (understandably) may have a few things that you are not quite sure of, or have concerns about. Speak to one of our experienced hospitality specialist brokers; they are there to assist you. One of the most common concerns Vendors have is “I don’t want anybody to know that I am selling, it would be very unsettling to the staff.   I wouldn’t want my customers to know either.” This is by far the most common concern for sellers. Professional Business brokers are very aware of the confidentiality issues around the sale of any business, and they take this very seriously. When the business is marketed generally only generic photos are used in the advertising. When potential buyers inquire on a business, they will only be given very basic information until such time as the broker receives their completed confidentiality agreement. In most instances prospective buyers will only be given very vague details on the locality. – Until their bona fides are confirmed. How can we maintain confidentiality when buyers start visiting business? Brokers have a number of different strategies that they can employ when purchasers start looking at businesses and want to conduct inspections. All buyers are reminded of their obligations under the confidentiality agreement that they have made. Sometimes the broker will encourage Buyers to go to the business and have a coffee or bite to eat. The broker will remind them not to speak to the staff about the business being up for sale. It is good for potential buyers to go in independently and get a real feel for the business. The customer perspective will give them ideas on what they could do with the business, how they could expand, and how competent the staff are. Buyers are often able to formulate some ideas on how they could improve the business. Quite often the inspections of the business can occur after hours when staff are not around. If purchasers have viewed the business when it is busy from the prospective of a customer, they can then view the business in detail, right through the kitchen and storage, etc – when staff are not there. They get the best of both worlds-the customer “feel”, as well as the detail behind the scenes. These after hours meetings can also be good in that Buyers can ask detailed questions of the owner, and the owner has time to devote to them. The Business owner will not be worried about what is happening in the kitchen, or why table 10 has still not been served….. Rest assured confidentiality is paramount – and it is in the interests of both buyer and seller, that confidentiality be maintained. Jo-Anne Wilson Hospitality Specialist Business Broker

It has come to my attention over the last 17 years of being in this industry that most salon owners don’t know whether they own a “Sweaty Betty” salon that is worth nothing or a Super Salon that is worth stacks. Everyday salon owners come to me and ask me to give them an appraisal on how much their salon is worth and whether they can get a good price for it. I always run them through the same questions to arrive at a figure. Here’s how it goes … Where is your salon located? – Shopping Centre, Strip Shop or Stand Alone? Location is key to success in business and all these sites will work, as long as the lease is long, and the rent is affordable. How much rent do you pay? – your rent is the other driving factor in success, your aim is to have the cheapest rent for the best location. Shopping centre rents normally come in at $800 – $1600 per square metre – so if you have 100 square metre shop then you would pay $80,000 – $160,000 per year in rent … obviously if you are paying the higher amount you would want the “Walk By” traffic to be extremely high. We find high rent in a poor location is one of the determining factors that contributes to the creation of a “Sweaty Betty” salon. What lease terms do you have? – If you don’t have a good lease then you have nothing to sell. If you have a 5x5x5 year term (15years) then that is definitely better than having only 2 years left on your lease with no option to renew. Profit vs Turnover? – Selling salons is all about profit and has nothing to do with turnover (sales), profit is how much is left over after you pay all of your bills, and pay yourself a regular wage for your work … how much you have left always impacts on the price you will be able to sell for … the higher the profit, the more money you get when you come to sell! The lower the profit – the less your business is worth. Staff? – If I were to buy your business and the top 2 key staff members walked out on me would your business continue to operate at the same profit levels, or would your staff drag out half your clientele, set up down the road and ruin me as the new owner? If you know that the business would continue on, without a “bump” in the road, then you have a Super Salon. Staff are another important factor in selling a salon, and you need as many as possible to make for a stable business for a new owner. Computer or not? – Being computerised is always part of a Super Salon, as it holds all the data that can be accessed by the new owner, to help to market the business and hold onto the clients. The brand of system does not matter, as these days they pretty much do all the same stuff … get a system that is easy to understand and does not cost you the earth. If you go through each question above and see how your salon “stacks-up” then you can easily find out what you need to do to turn your salon from a “Sweaty Betty” into a Super Salon.   Iain Horne Salon Specialist Business Broker

Two Senior Business Brokers from Benchmark Business & Commercial Sales have been selected as finalists in the 'Business Broker of the Year' category of the 2015 REIQ Awards for Excellence with winners to be announced at a gala event in February. They’re being recognised not only for their exceptional achievements but also for their commitment to integrity in the profession. For 2015 Ian Salter and Lincoln Bridge have been selected as finalists in the prestigious awards process. Ian Salter is a senior broker with Benchmark who has over 8 years experience as a Business Broker. Ian specialises in the sale of franchised businesses – and he heads up a division within Benchmark “Franchise Sales Australia”. Ian Salter has consistently exceeded sales targets over the years, and he is honoured to be a finalist in the awards for the third year in a row. Lincoln Bridge specialises in the sale of childcare centres across Australia. He is also a team leader within the organisation and he has set new records as Benchmark's highest performing broker. Lincoln is honoured to have been nominated and selected as a finalist for the award for the first time. The winner of the award will automatically progress into the 2015 National Awards for Excellence in Perth next year. We wish both Ian and Lincoln the best of luck! The team at Benchmark Business & Commercial Sales

Here are some of the most frequently asked questions about franchising. 1. What is a Franchise? A franchise is a business that operates under a system. It involves one party (the Franchisor) granting another party (the franchisee) the right to operate a “replicated” business, – usually under a recognised registered name, and to use established management methods, marketing systems, and operating procedures. In return the franchisee commits to paying the franchisor an initial fee, and further ongoing fees (royalties). The Franchisee also agrees to comply with franchise systems, policies and procedures. 2. What is a Franchisor? The person or company who owns the operating systems, trademarks, and procedures. 3. What is a Franchisee? The person or company which pays the Franchisor for the right to use the systems, products and processes which are owned by the Franchisor. 4. What are Royalties? Royalties are paid for the continuous use of a piece of work, such as the payments made to an author for a book that is on the market. These expenses are in addition to any one time initial fees. The payments are usually lower than upfront fees since they are a continuous regular expense. With regard to franchise royalty payments, the franchisee earns daily sales as their main source of revenue. The regular monthly income that the Franchisor earns is based on royalty payments from each franchisee. 5. What is a Franchise agreement? The franchise agreement is the cornerstone document of the Franchisee–Franchisor relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each party. For an agreement to comply under the code it must contain four elements: • an agreement between the parties, which may be written, oral or implied • substantial or material association with a trademark, advertising or commercial symbol • a grant by the Franchisor to the franchisee of the right to carry on the business • agreement by the franchisee to pay the Franchisor, or an associate, an amount in return for the grant of these rights and usages. 6. What is a Disclosure Document? A “Disclosure Document” is the document (or documents) which provide detailed information about a franchise and the Franchisor. Disclosure Documents are required to be given by the Franchisor to potential and existing franchisees, at various points in the Franchisor/Franchisee relationship. 7. What is the “Franchising Code of Conduct”? The code has the force of law and requires Franchisors to disclose specific information about a franchise to both potential and existing franchisees. It regulates the dealings between both parties in a franchise relationship and provides for dispute resolution mechanisms. For a copy see http://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct 8. Do I have to get professional advice before entering into a franchise agreement? Yes. It is important to get professional legal and financial advice before you enter into a franchise agreement. Acquiring or selling a franchised business is a significant decision and often involves a significant financial decision and commitment, so having good independent advice is highly recommended. When acquiring a franchised business, you will need to provide the Franchisor with a statement saying that you have sought advice from a legal adviser, business adviser and/or accountant. If you choose not to seek this advice, you will have to provide your Franchisor with a statement saying that you have been told you should seek advice, but you elected not to do so. These documents must be provided to the Franchisor before entering into any franchise agreement. 9. Is there any restriction on who I can sell my franchise to? The Franchisor is able to determine who is a suitable operator of the business. When selling a franchised business, it is necessary for the franchisee to request the franchisor’s consent for a transfer of the franchise. This must be done in writing. If the Franchisor does not respond within 42 days, consent is taken as having been granted. The Franchisor cannot unreasonably withhold consent. Often there are conditions attached to your transfer. Such as a “transfer or assignment fee” Ian Salter Specialist Franchise Business Broker Benchmark Business Sales & Valuations

5th November 2014 Tu Nguyen has proven himself to be the most valuable part of our sale. Throughout all the trials and tribulations of selling a business, Tu was there for us – day and night, weekdays and weekends. With our sale, Tu proved himself to be the ultimate problem solver. We never felt that Tu gave up on our sale and persisted until he found the right buyer for the right price. He never let any issues drag out and found solutions beneficial to our sale. If you are serious about selling your business then we would recommend Tu’s services. Overall, he has been excellent. K. Canniffe and R. Lee Red Rooster  

Benchmark is honoured to win the 2014 'AIBB Bizstats Agency Of the Year Award'. This award is based purely on performance as measured by settled sales recorded on  BIZSTATS, the AIBB's database of completed Business Sales. Bruce Coudrey accepted the award at the 2014 National Conference, held in Perth, Western Australia during October.

If business owner wants to maximize the price he or she receive then we strongly believe they should trust the process to an experienced specialist business broker and focus on what they do best – running the business.   There are 5 good reasons to use a broker:  

• CONFIDENTIALITY

Many business owners are concerned that their suppliers, customers and staff are not aware that the business is on the market until an unconditional sale has been arranged. The business broker can obtain confidentially undertakings, qualify the potential purchaser and eliminate ‘tyre-kickers’ before identifying the business.

• MARKETING

The more genuine potential business buyers that the opportunity can be exposed to then the more chance of attracting the premium buyer. Our company has a multi-pronged marketing strategy using print advertising, major internet sites and powerful direct mail programs. We also have a huge database of potential investors who have signed confidentiality deeds and understand the sales process.

• VALUATION

Pricing the business right is so important. Research shows that the ‘over priced’ business often becomes ‘shop-soiled’ and sell for less when subsequently reduced than it could have. Experienced business brokers have access to extensive market data and do not rely solely on academic calculations. They also have the business ‘savvy’ to recognize the value in the intangibles and the benefits that will appeal to a buyer. The business broker can suggest a price range that will allow for the premium buyer and be credible and defensible.

• EXPERIENCE

The specialist business broker will have a strong team working to achieve the business owner’s goals and objections, extensive networks with professional advisors and proven negotiating skills.

• BEST OF ALL

If you are dealing with BENCHMARK you are guaranteed that there will be no commission fee payable, unless we sell your business on terms and conditions acceptable to you – (A Focus Marketing Programme is recommended to all buyers, and can be paid on Settlement or at the time of Listing) and we believe our fees are very completive of the specialist business brokers working within the Company. Bruce Rylance. 0418 396910            

Congratulations John Kasapi our 'Salon Specialist'. John was awarded as a finalist for the 2014 AIBB 'Rookie of the Year' Award' at the national AIBB conference over the last weekend in Perth. John was recognised for his methods in prospecting, personal development and contribution to Benchmark Business & Commercial Sales as a Business Broker. John more than 13 years of experience working in the hair and beauty industry – so he really knows and understands the industry and the marketplace much better than most. John really prides himself on offering his clients exceptional customer service, combined with his wealth of sales and industry knowledge. He has “been there and done that”, as he has owned his own business, and he has worked in many top salons around the world – and has experienced everything this industry has to offer. We hope to see John competing for the 'Senior Business Broker of the Year Award' in years to come.