Buying a Business with Stock 

Located in a large Regional New South Wales town is where you will find this top performing Red Rooster store. This high volume Red Rooster store is operated by the owner with an experienced management team in place. The owners have been in the game for many years and now there is an excellent opportunity for the buyer to purchase this top performing store on the market.  The shop is highly visible with excellent street frontage on a major road and easily accessible for customers due to its prime location.   Key Considerations of the business… > Well established business for over 20 years > Store predominantly ranks in the top 3 and at times number 1 in NSW and top 10 Nationally. > High profit and strong cashflow business with strong annual turnover well above $2m. > Large Drive Thru store with ample seating areas > Consistently solid trading over the years and steadily increasing > Located on a busy main road with heavy vehicle traffic > Repeat loyal retail customers > Long tenure with low rent below 7% > Experienced trained staff in place   Why Franchise with Red Rooster? > Established in 1972 with its first store opening in Kelmscott, Western Australia, Red Rooster now boasts over 360 stores nationally and employs over 7,500 staff.  Red Rooster is still the takeaway you don’t have to think twice about.  In Western Australia, few would have believed that Red Rooster would grow into Australia's largest roast chicken operation. > Red Rooster is an iconic Australian brand with a rich history built over four decades and is a leading provider of takeaway chicken in Australia. > Head Office provides support including Administration, National Marketing, Retail Operations, Training and Customer Service.   Priced to sell: $1,700,000.00 + SAV ($30k)   This could be the one you have been waiting for, pick up the phone and call me today.   INSPECTIONS BY APPOINTMENT ONLY!!!   Business Broker Tu Nguyen 0401 260 154 tu@benchmarkbusiness.com.au www.benchmarkbusiness.com.au

DON’T MAKE THESE 2 SIMPLE MISTAKES WHEN YOU ARE LOOKING TO BUY A BUSINESS.

Two of the biggest mistakes people make when buying a business are to either: 1. Underestimate the total investment required. 2. Overestimate the amount that they have available to invest. To avoid these two common mistakes you really just need to take a little time to accurately calculate the total amount you can afford to invest, and the total investment required, to acquire each business that you are considering. It always costs more than the asking price plus stock to acquire a business, there are many other costs that need to be considered. When buying any business you must always allow for the following costs:

• Purchase Price
• Stock At Valuation (Wholesale Value)
• Legal Fees
• Stamp Duty (if applicable)
• Assignment Charges (franchise, lease, other)
• Loan establishment charges
• Accountant’s due diligence fees and costs for advice
• Staff redundancy costs
• Set-up costs (stationery, uniforms, signs, advertising)
• Capital improvements
• Computer software and hardware
• …… and more. These are often broadly referred to as “working capital”.

To avoid overestimating your capacity, it is wise to meet with several finance brokers (or bankers) to help you to determine what your limit (or budget) should be. Once you have set your budget it iss much easier to find the right business, and move forward with the acquisition with certainty and without delay. Most experienced bankers and financiers will be aware of what to look at when buying a business. Because of this they are a great source of free advice and assistance in appraising a business, and its value. After all they won’t lend you the money if the business is not going to be able to repay the loan. Remember also, to calculate the “working capital” required when assessing a business. Avoid disappointment. .. make sure that you accurately assess the investment required, and that you are aware of your own financial capacity.  

Should A Supermarket Buyer Pay For Outdated or Unsaleable Stock When Purchasing The Business?

It is important when signing an agreement to purchase a business that you know exactly what you are getting. In most cases businesses will sell at a price +SAV (Stock at Value). It is important to understand that the price paid for stock is not what the product will sell for, but rather, it is the cost of the product (the cost price). When buying a supermarket, it is important to set the parameters for the stocktake process to ensure that the stock you are buying is still in a saleable condition. That is: in date and properly packaged. The “Rule of Thumb” for “use by” codes from date of stocktake is 30 days for grocery and frozen items, and 7 days for perishable items such as dairy and bread/bakery products. This is either determined by the company performing the stocktake, or an agreement between the two parties at the time of stocktake. Be aware that if you sign an agreement that is a WIWO (Walk in Walk out) price, then you run the risk of buying stock that is unsaleable. This is a risk for the purchaser as the seller has no responsibility for ensuring the stock is sellable, and the seller may reduce stock levels which ultimately affect the trading ability of the business. Because of this, (for added piece of mind) we recommend that it is best when buying a business that you buy it with + SAV in mind. Do you have any questions we can help you with? Don’t hesitate to contact a member of our friendly Business Broker team. David Zampech Supermarket Specialist

5 Reasons Why Owning A Business Is Better Than Having A Job

There’s no question that owning your own business is a risky proposition. But, working in your business has some benefits which include:

1. Work in an industry that you are passionate about
2. Choose your working hours
3. Decide if you want to be an investor or owner operator
4. Be in control
5. Create the lifestyle you want

Interested in being your own boss? Find your dream business by viewing the hundreds of established businesses that you can’t find anywhere else at www.benchmarkbusiness.com.au. Interested in starting your own business? There are useful information guides on starting up your own business. The Government website is a good place to start.

WHY BRAINSTORMING IS AN ESSENTIAL PART OF BUSINESS MANAGEMENT

“If it ain’t broke don’t fix it”… “We do it that way, because that’s the way we’ve always done it”…. These are not the sentiments expressed by successful businesses. These statements were probably the expressions of companies that have gone by the wayside. Companies like Kodak, The Sydney Harbour Ferry Company and Taxi Companies – all probably thought that way. Things are changing quickly and “Disruptors” and “Category Killers” are permeating and penetrating nearly every industry, so complacency is a fast way to see a business die. In business there are only three possible states:

1. Growth
2. Stagnation
3. Decline

  You can choose which state you operate in. If you choose “Growth” then it is essential that you embrace creative thinking and that you establish “brainstorming” sessions. By holding regular brainstorming sessions business owners can get ahead of the pack, create growth and eliminate obstacles. Here are some tips for holding a “Brainstorming session”.

1. Identify the issues and challenges facing the business
2. Identify the right people to invite to participate in the session
3. Catagorise the issues and challenges into groups and use that grouping to create an agenda
4. Set an agenda with realistic timelines
5. Have someone appointed to take notes and to create an “Action Plan” with execution dates and roles and responsibilities allocated
6. Remember that there is no such thing as a dumb question or a bad idea
7. Outline the options and really take time to expand on the options, and consider all alternatives
8. Then select the most appropriate course of action
9. Create the Action Plan

  Be your own “disruptor”, and judge your business against your own standards, not the standards set by your competitors, or your clients low expectations. Don’t let the market or the competition push you out, use innovation – and even the fear of failure, to drive your business forward. Great ideas are free, it only takes time and money to execute them.    

ELECTRONIC SIGNATURES   Change creeps up slowly on us, and it’s only when you look back, that you realise how much has changed, and how quickly. It doesn’t seem that long ago that we used to lick a stamp and put it on an envelope to send messages, information and documents. Similarly, we used to pay deposits in cash, and you had to meet someone to ask them on a date… all that has changed. In business we have seen many changes and innovation come into common use over the past 15 years, and the latest evolution in business is the inevitable adoption of the electronic signature. Under Australian law, a written signature is not necessarily required for a valid contract – contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document. The Electronic transactions Acts in the Commonwealth, States and Territories of Australia specifically confirm that provided certain requirements are met, and a relevant exception does not apply, contracts cannot be denied enforceability merely because they are concluded electronically. Leading digital transaction management solutions can provide electronic records that are admissible in evidence under Australian laws to support the existence, authenticity and valid acceptance of a contract. So it’s time for businesses to adopt electronic signing protocols and move with the times… For more information on the shift towards electronic signing click the following link to download the PDF http://www.qls.com.au/files/4b3f12bc-58f8-44e4-9bf7-a7fd00c6a1a0/Electronic_signatures_when_effective.pdf Benchmark Business Sales & Valuations

18 Successful Business Owner Traits

1. Honesty

One of the essential traits when it comes to creating strong, trusting relationships, as well as a positive reputation at work and beyond, is honesty. In a recent study conducted by a US Research Centre based around the subject of “what makes someone a good leader”, results showed that over 80 percent of participants surveyed believed that honesty was the most important trait in a successful leader. This is especially true because honesty in all relationships promotes a comfortable setting and makes one more approachable.

2. Competitive Drive

A little (friendly) competition never hurt anybody. For successful individuals, the success of others is often a push to do better; to keep up with (or ahead of) the pack. These people have a dream and won’t let others get in the way on their path to success. Most Successful business owners find themselves thinking “I can do better than that!!”… and that simple unconscious thought is a sign of a competitive nature.

3. Devotion to Improvement

Being “good enough” is never really an option for successful business owners. There is always room for improvement, whether it is a new idea, better work ethic, or whatever it may be. Successful people are never content with just what they have and what they are, but are constantly problem solving and trying to better themselves in any way possible. The only way to improve is to constantly seek to raise standards.

4. Desire to Give Back

Truly successful business owners realise that with the any kind of power, there comes an opportunity to effect some sort of change on a bigger scale. Giving back, no matter the form, is a way to motivate others and help them to realize their own potential and make the most of their own opportunities. Successful business owners feel an obligation to help others, and are unselfish. This may be surprising – but it’s true.

5. Commitment to Networking

Those who achieve success know that you can never really build too many connections. Being able to build and maintain relationships of all sorts is a major component to maximizing success in the future, since you never know when you might need a helping hand or could potentially parlay a relationship into a new opportunity. Successful business owners don’t see networking as a chore – they relish it, and enjoy any opportunity to talk to people about their business.

6. Open-Minded

Some of the greatest innovations have come from the “craziest” of ideas. Close-minded people are missing out on so many opportunities by failing to accept the full potential of even the most unusual ideas. The reality is that one small, creative idea can become a massive opportunity in the future; it’s giving the different ideas shots, and keeping your mind open that helps successful business owners to find great success.

7. Attentive All Details

Minor details can end up creating something major in the future. Some of the most successful business owners in the world are very attentive to everything that goes into their work, down to the very last detail, because they know that in order to move forward and succeed, it’s important to take pride in every piece of work as a whole, right down to the smallest components.

8. Not Afraid to Fail

It is okay to make mistakes, and it’s most definitely okay to fail. Successful people take those moments in their lives, learn from them, and use those lessons to help themselves succeed in the future. It’s rare to find a successful business owner who hasn’t experienced at least one major failure or roadblock, and it’s important to remember that success just doesn’t come over night. Rather, it takes multiple attempts, a ton of hard work, and plenty of “dust yourself off and try again” moments. Not being afraid to fail means that a good business owner is not afraid to take risks.

9. Calm in a Crisis

Being under pressure ignites a fire under determined business owners; instead of surrendering to stress, they take that stress and use it to drive them to work even harder. A crisis doesn’t get the best of them. If anything, it motivates them to work even harder and more meticulously as they turn their attention to troubleshooting and getting over the hump.

10. Being Grateful for the Help of Others

In most cases, success comes with the assistance and support of others, from friends and family to mentors and co-workers. Respecting the people who help you along the way and showing thanks for them is a great way to keep those positive relationships strong and to ensure that the people in your life who motivate you and push you forward the most remain by your side for the long haul.

11. Responsibility

Successful business owners share one unusual trait, they take responsibility for EVERYTHING. Even if it’s not really in their power or control, successful people always own the outcome, and never “pass the buck”, or make excuses.

12. Positive Mental Attitude

You never hear successful people complain. They just get on with it, and get  things done. Have you ever met a self-made business owner with a bad attitude? It’s very rare. Most successful people have a great attitude, and a strong sense that they will prevail eventually. Of all the attributes of a successful business owner the Positive Mental Attitude (or healthy mental attitude) is the strongest. A positive outlook is where confidence grows from, and confidence is contagious and influential.

13. Determination

That strong sense that they will eventually prevail, is where great business owners get their determination from. They know that their plans and goals are sound, and achievable, and so all that they have to do is execute the plan, and the results will follow. That’s where the determination comes from – knowing that what you are doing is going to work.

14. Craves Learning

Have you noticed that the successful business people are the ones who are always learning, always challenging themselves, and always at conferences and seminars. Great business owners know that you never stop learning, and they are happy just to pick up one or two small ideas, and the time spent learning was worth it.

15. Passionate about his or her business

Sometimes it’s hard to know if the really successful business owners are passionate about their business because it is successful, or if the passion is what has led to the creation of a successful business. Whichever it is, it is clear that successful business owners just love their business, and what has been achieved. For some people their business defines who they are, and how they see themselves. That means that the idea of leaving their business scares them, because they feel that they will lose their identity. Do you know anyone like this?

16. Highly Adaptable

Truly successful people (in all walks of life) know that flexibility is required to be successful. The ability to quickly adapt to changes is what separates success from failure. Winston Churchill made such a statement nearly 80 years ago…. And it has proven to be very true.

17. Good understanding of money management

Great businesspeople really understand and know exactly where their money is, at any moment in time, and what is happening in their business. They understand money management incredibly well, and know where income comes from, how profit margins are derived, and they control every cent of expenditure.

18. Ability to sell and promote

Good business owners are not always great sales people, but they can sell and promote themselves, their business, their products, or their services because they know what they are talking about, and they are passionate about what they do, and that makes them good at selling and promotion.