What businesses are popular with buyers in the food and hospitality industry at the moment? It would appear that Monday to Friday businesses are what a lot of people are looking for.  They are after a lifestyle business, they don’t want to be tied to their businesses 24/7.  They want time to be able to enjoy family and sporting activities on weekends. So, what a lot of people are looking for is the Industrial Takeaways and Cafes that are operating Monday to Friday.  Also popular are businesses that predominantly cater for the breakfast, brunch, and lunch trade.  The owners of these businesses have generally finished up by mid afternoon and this gives them opportunity to pursue activities and hobbies.  Also of benefit these sorts of businesses don’t need to employ chefs, their menu offering is relatively simple and therefore can be run by people with not a great deal of experience.   Quite a lot of these sorts of businesses are an entry level point for purchasers, they are regularly bought by people that have not necessarily owned a business before.  They generally have a reasonable entry level point in terms of the dollars  required to make the purchase. Purchasers are looking for businesses with long term leases in place, with the availability of option periods to be exercised.  They are looking for security of tenure. Purchasers are also looking for business with good strong and consistent sales turnover.  They want these sales to be able to be validated by a trial period and the provision of accountants financials. Restaurants which start late, and trade late into the night – for seven days a week, are not popular at present.  Many buyers don’t want to be up late, cleaning up until after midnight, and waiting around all day to go to work.  Most buyers want an early start and an early finish – and free weekends! Businesses like that have seen a significant increase in demand over recent years – and demand has forced up values. This may cause some business owners to think about changing their business operation to trade early 5 days a week – and close on weekends. Jo-Anne Wilson Business Broker

New Year! We are now officially in a new financial year and we often get lots of Sellers cleaning up their accounts so that Buyers have a clear picture on how the business has been tracking over the last 12 months. In some cases Sellers will not have tax returns done until closer to Christmas however we will be able to produce some simple financials to give buyers an indication of sales and profitability. Good managed salons are becoming hard to find as we have nearly sold out of managed salons over the last few months and Benchmark are desperately trying to get new listings in this category. So now is the time to get your books in order and prepare for the solid returns that always come through in this six months of the year. FINANCIAL FITNESS If you are looking to sell your salon at this time of year then make sure you get your figures into shape (that’s your financial figures). We find that the salons that sit on the market for the longest are the ones that do not provide us with current information and updates on how things are going. Your BAS will be due on the 28^th July so make sure you have all your figures done the week before and when you submit this info to the ATO, send us your 2014 Profit and Loss.… We understand that it may vary slightly from a tax return but it will give a buyer a very good picture of how your business has been tracking over the last 12 months …and help to make the business more sale able. Early 2014 Figures = Early Salon Sale Iain Horne Salon Specialist

Positioning for Prosperity? Catching the Next Wave, identifies five “super-growth industry sectors” likely to provide a $250 billion boost to the Australian economy in the next 20 years. Deloitte Access Economics' Chris Richardson says mining will continue to be a major driver of prosperity, but “that boom is slowing and our competitive advantage is being challenged”. The next “super-growth waves” will come from

1. Gas
2. Tourism
3. International education
4. Wealth management
5. Agribusiness.

Here we look at a couple of these industries in more detail. Tourism International visitations increased 4.6% in 2012 to 1.6 million. Australian cities rank consistently on the Most Liveable Cities in the World list, and offers working holiday visas, which may have contributed to the tourism boom. For those looking to jump on this lucrative bandwagon, tourism can include industries such as food retail and accommodation. You may consider purchasing an existing business with solid goodwill and hone in on a competitive advantage. Australia’s first cat café – where people pay to interact with cats – is set to open its doors soon, so let your imagination run wild! Purchasing a café then tweaking the theme is ideal for investors who wants to personalize an existing business without the hassle of sourcing for suppliers etc. Continuous investment in technology, customer service training and building relationships is crucial to keep pace with the evolving environment. Technology is especially important for accommodation providers, as the ways potential clients are booking places to stay are changing. Accommodation providers or management companies should ensure their websites are Search Engine Optimized, which increases the likelihood of it appearing as a top search. Employing staff with Digital Marketing expertise is encouraged. Also key to keeping the visitors coming are close links with event tourism bodies, cruise markets and taking some chances. International visitors represent about 30 per cent of its overall visitor tally, with China the leading the way. If you speak the language and understand the culture, now is the time to enter the tourism market and offer services to Chinese visitors. Other companies can undertake cultural awareness training within both frontline staff and management team. International education International education and tourism feed each other – stories abound of people falling in love with certain cities in Australia while traveling and then deciding to pursue studies there. Visiting family members require tourism services such as accommodation, especially around graduation season. For investors seeking a business, these industries may be where you’d like to be. Talk to one of the Benchmark specialists to find out more about businesses which are positioned in the position to ride the next “Super-growth wave”. Jack Lee Business Broker

Are you interested in buying a business?  Is the thought a little daunting? Have you thought it through, and made the decision to look around and see what’s available? Buying a business need not be a difficult and stressful process, provided you approach the task with common sense, and a semblance of knowledge regarding the type of business you are interested in. In other words do some homework. Talk with your experienced business people that you trust, seek their opinion and learn from their experience- especially talk with your accountant. Accountants can be great help with understanding the financials of a business and you should seek (and heed) their advice in that regard. Let me say however accountants are not retailers, nor are they business valuers, so be selective when seeking that advice and consider their advice or you may miss out on a great opportunity. Be conscious of your own ability and needs. Sometimes buyers are completely unaware of what to expect or how a particular business operates. Some things to consider and take into account are: – Consider your own abilities, strengths and weaknesses – Perhaps you’re not great at math and the thought of budgets, P&L’s, financials, calculating wages and so on scare you a bit. Well there are some businesses/franchises whose “Point of Sale” (POS) systems handle everything for them. All that is necessary is for you to “follow the bouncing ball”, so to speak- and you can to get on with growing the business. This is the case in most of the newsagencies for sale on today’s market. Ease of operation – Modern POS systems take a lot of the worry out of running the business. They handle everything from stock control, ordering, selling and stock take, to wages, holidays and other entitlements. Newsagencies for sale on today’s market have a long history of success and are backed by the Golden Casket, and magazine publishers, whose electronic systems of operation are long established with new owners given full and complete training History of the business – I don’t just mean how long the business has been operating. I mean its history, how old the industry is, how well regarded it is in the community, is it a focal point, a destination point for shoppers and lookers alike. This is one area where newsagencies surpass nearly all others. Position – I don’t know about you, but I hate driving in traffic and the thought of starting my day spending 40 or more minutes getting to work in traffic does not appeal. Be conscious of your travelling time, less time on the road means more time to work on your business – and to arrive at work fresh and ready to go. These are a few ideas and tips to keep in mind and are vital to making a considered decision. I will touch on a few others in my next blog. Again, as I said last time if you have any questions or would like to enquire on what newsagencies for sale are currently listed on my books I welcome your call. My name is Neil Barry you can reach me on 0419 720 262 I am the Newsagency specialist for Benchmark Business Sales.

In a word….Yes. It is important to get the right advice from professional legal and financial advisors before you enter into any franchise agreement. Acquiring or selling a franchised business is a significant decision, and often involves a significant financial commitment, so having good independent advice is essential. 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 an 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. There are many elements within the purchase process that will involve professional advice such as: A solicitor’s involvement will cover such things as; – The Franchise Agreement, The Lease Agreement, Disclosure Documents, Tripartite Agreements and the final settlement process. In most cases these agreements will be “assigned” to the new incoming franchisee. Assigned means that the new incoming franchisee will take over the existing agreement with the same terms and conditions that the current franchisee operates under, the only change to the document should be the new franchisees entity details. All new agreements are just that – new, and therefore solicitors will review these agreements, and in some cases there may be room to negotiate the terms of the agreement. An accountant’s involvement will cover such things as; – Due Diligence where by the accountant will review the trading history of a business through the profit and loss statements, balance sheets, depreciation schedules and BAS statements. In the application pack process it is common that the franchisor will request a comprehensive “Cash-Flow Projection” and “Business Plan” and in most cases the accountant is engaged to prepare these documents or to assist the new incoming franchisee in preparing these documents. Whether a solicitor, accountant, broker, banker or franchisor all advice and undertakings relating to a franchise purchase or sale should be performed within the legal boundaries of the “Franchising Code Of Conduct” which is regulated by the ACCC. When purchasing a franchise business there are many people involved in the process, and it is a process. The process involves; The Buyer – your solicitor, accountant and bank manager, The Seller – their solicitor, accountant and bank manager, The Franchisor – and their legal advisors, The Landlord – their solicitor and The Business Broker, who’s roll is to monitor the progress of a sale and communicate with everyone mentioned here. It’s important to understand that the Business Broker is the “Pivot” which means the broker can communicate directly with both buyer and seller, and is often the only person with a business sale that can do that.  Add it up! That’s thirteen people, why would you NOT consider seeking legal advice? Honestly, it could turn into a legal mine field if handled incorrectly, so take the time, and make the effort to find a good lawyer, accountant and business broker – it will make the process so much easier when you deal with competent professionals. Ian Salter

End of financial year approaches! Now is the time to do some tax planning and decide if you want to sell/buy this financial year or next. Most businesses which are under contract now, will settle in the next few weeks and it is an excellent time to chat to your accountant to find out what is the best strategy for you. There are some great bargains ready to move now, so if you are in the market for a new salon, it’s time to act now! June STOCKTAKE Strategy.Time to get your stock in order. The best thing to do is print off a report from your salon computer systems to see what stock is selling and what is not. Then make a decision to package up the non performing stock, and create value packs with the high performing stock.  – Sell off non-performing stock – and put extra cash back into your bank account. Look carefully at your range of products and ask yourself what is going to sell over the next six months – and what is unlikely to sell.  If it won’t sell – get rid of it! Cheers John Kasapi 0422930549 Australian Business Brokers Of The Year  Australia’s Leading Salon & Spa Sales Specialist    

Dun and Bradstreet’s latest trade payment analysis publication (June 2014), shows that Australian Businesses are identifying cash flow as the most likely impact on their business operations with new analysis on invoicing revealing payment times have slowed to their lowest rate in three years. Business to business payments in the 1^st quarter of this year are now slower than the previous quarter and that of 12 months ago, indicating that business finances may be under strain. This emphasises the importance on controlling debtors (and stock), and the advantage of positive cash flow business such as service stations, childcare centres, super markets, liquor stores etc. Benchmark offers a wide range of businesses for sale across four states.  With over 400 businesses listed for sale, Benchmark offers something for everyone.