ASQA Requirements when Selling an RTO With effect from 31 October, 2019, ASQA, the national regulator for Australia’s vocational education and training sector, introduced some changes. Increased evidentiary requirements for providers who change 50% or more of their ownership over a 12 month period to demonstrate their compliance with the relevant regulatory framework, including: The […]

Planning ahead gives you control. By making realistic, simple plans you take control of your business and your life.  There’s a lot of truth in the saying “failing to plan is planning to fail”. It seems obvious that having a plan is necessary, but it’s surprising (and difficult to understand why) so many business owners […]

1.Buying 2. Operating and 3. Selling   A Retail Business Buying: Choose the appropriate sector to suit your experience, knowledge or passion Look for the right location, brand & price Prepare a Business Plan with comprehensive financial planning Obtain an expert valuation of the business Equip with adequate training Make sure that you are trained and […]

Many accountants will have a basic idea of what their practice is worth, or they may think they do. Most of them will use the easiest and most common valuation method which is applied to many and varied businesses across a wide range of industries. That is the dollar for dollar concept.   What does this […]

Some examples of what others have done People often ask me about how to best utilise digital technology within their business. The best way to guide business owners in answering this question is by providing some examples of what others have done and what has worked for their business. So, here’s a handful of real-life […]

Ten years ago the CBD areas in all Australian Capital Cities was 80% retail, and 20% hospitality. Today it’s the other way around.. 20% retail and 80% hospitality. In ten years the landscape has changed, and it appears that this is only the beginning. It would be easy to conclude that retailing is all online […]

Many Café and Restaurant owners can lose sight of how to increase sales, using Marketing Tools. They get too busy working in their business and don’t focus on a Marketing Strategy. The value of your hospitality Business is underpinned by your sales and net profit figures, so the higher you can get them, the more […]

All business value is comprised of two basic elements; Intangible Assets and Tangible Assets. Intangible Assets (Usually “Goodwill”)   Goodwill is the primary component of the purchase price that remains after deducting all other assessable components from the total purchase price. Before simply adopting a final value for goodwill, it is necessary to understand the different types […]

You need to make it easy to TRANSFER your GOODWILL The greatest fear that purchasers of professional practices have is that they will pay big goodwill to the outgoing owners, – and then the clients will all leave. To minimise this risk, any purchaser needs to seriously look at the reasons why a client frequents […]

Look at Your Business through a Buyer’s Eyes It’s amazing what you’ll see and learn about your business when you look at it through the eyes of a buyer. Have a look at your business and what you have to offer. Think about what a buyer is looking for and what they will find if […]

When will you start to prepare? What is the best time to start preparing for an eventual sale? When will you start to prepare? What is the best time to start preparing for an eventual sale? Things are changing fast right now, and it’s definitely not “business as usual”.  Why not take advantage of the current […]

Like everything there is a cast to properly Marketing a Business for sale When a business is for sale, the market needs to know about it. Otherwise, it remains a secret. And you can’t sell a secret. To reach the widest audience, it’s generally accepted nowadays, the most effective medium is the Internet.  Whilst it’s […]

Entrepreneurship for business owners can be a rewarding journey both financially and emotionally, but one that requires clockwork consistent investment and constant adaption in three key areas: principles, processes and people. This adaption has never been more important than today.  Business need to adapt in this quickly changing market. Business success does not necessarily require a growth at […]

Not every business needs to carry stock to operate, but many do, and when selling a business which carries stock there are many issues to consider. Some obvious, and some not so obvious. Obvious. When selling a business with stockholding the sale may be either “Walk In Walk Out”, or “Plus Stock”. Walk In Walk […]

I understand we are all treading in uncertain times right now. One thing I do know is that the GFC affected the globe in a similar way to Covid-19. They were terrible times for business, finances, property etc. I remember working through those days, we still sold businesses and buyers managed to borrow money back […]

This is what many prospective business purchasers are asking right now. It makes sense to wait and see what happens right now, doesn’t it? Caution is wise. When things are uncertain, the easiest thing to do is to do nothing. And that is often the wisest decision. Many prospective business purchasers are asking themselves “Should […]

One of the most common concerns prospective vendors have is confidentiality. “I don’t want anybody to know I’m selling, it would be very unsettling for 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 […]

We all run small businesses. Here is a summary of the Federal Government’s small business stimulus package announced so far, including support measures from the ATO. COVID-19 economic stimulus package announced   The Government’s plan provides direct support for business including payments for business, wage subsidies for apprentices and trainees and enhancing the instant asset write-off: Tax-free […]

If you’re thinking of selling your business, it’s important to devote preparation time to the sale. Proper preparation plays a major role in influencing the final sale price. It also helps to achieve a smooth transition from you to the purchaser. Having a Business Valuation conducted is the right way to establish where you are […]

How do some small businesses manage to grow and thrive while others seem to struggle and miss opportunities that come their way? It appears the most successful business owners display some clear patterns and habits. Here are 8 secrets for achieving growth regardless of the economy. Grow to survive – Many small businesses assume it’s best […]

Get Staff working There are some basics that business owners often forget… Has this ever happened to you?  You walk into an empty shop, and you find the attendant focussed on their phone or computer … and not working? With everyone carrying their phone in their pocket these days, it’s easy for retail staff to […]

Science, Not Luck! So what makes a business owner or entrepreneur successful? Is it: Hard work? Good luck? Being in the right place at the right time? Being clever? Genius? Teamwork? Belief? Persistence? Business success could be due to all of these things, one of these things, or none… In years gone by business owners […]

Here are some business models to consider. 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 […]

Over the last 24 years we have seen a trend emerge in demand for small businesses. Demand rises and falls in a predictable way, and through mapping the monthly rates of buyer enquiry over the 19 years we have noticed clear trends emerge. Traditionally the busiest months are January, February, April, September, October and early […]

As a business owner, you’re always asking yourself, “What does it take to build an enduring, great company and to continuously improve and grow?” The answer is that in business “You’re either growing or you’re dying,” so you can choose; GROW STAGNATE DIE It’s your choice. But really, there is no choice. Who would seriously […]

Business owners must have three separate business plans: A Business Plan A Marketing Plan and An Exit Plan. Do you have all three? A Business Plan allows the owners and shareholders to plan for the daily operation of the business and to put targets, budgets and operating systems in place. It’s like the “instruction manual” for […]

IT COULD BE WORTH MORE THAN YOU THINK! Did you know that many business owners don’t realise that their businesses are valuable? Often business owners simply close down and walk away from their business without ‘cashing-in’ on the Goodwill that they have built up in their business. What a shame…. all those years of hard […]

Tools to help improve your Small Business A small business is an exceptional investment that will not only increase in value with improved performance, but it will also provide the owner employment, an above average return, a sense of achievement and, in some cases, noncash benefits. But every business owner needs to look at the […]

Good Advertisement – Because You Can’t Sell a Secret It makes it difficult to find the right buyer for your business if you don’t widely promote and advertise. The wider the net is cast, the more potential buyers you will have look at your business. More buyers equals more demand. And more demand equals more […]

Be Totally Honest If you want to get the best possible price for your business, there’s no doubt that you must be completely honest. Not only honest with the buyer. Or your business broker. But you have to be honest with yourself. Before placing a business on the market you need to be brutally honest […]

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: Work in an industry that you are passionate about Choose your working hours Decide if you want to be an investor […]

“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 – […]

There are many options when selling a business. One option is to sell the business to family. Family succession Business owners who have invested a lot of time and money in growing a business may have a strong desire to keep that business in the family when they leave. If you plan to transfer your […]

What if you don’t? Pressure Panic Orderly realisation When a business fails to plan an exit strategy, it places the business owner at increased risk in a number of ways. In recent times it has become more common for financiers to look for (and expect) an exit strategy in a business plan, because there is growing […]

An exit plan is simply a plan for EASING OLD OWNERSHIP OUT, AND EASING NEW OWNERSHIP IN. Simple. It is a plan where you can “Exit on your own terms”… not because you have to, but because you want to. This is a plan to get what you want and to know how to get […]

WHY ARE YOU DOING THIS? Why are you in business? Did you get into this business to: Make a lot of money? Enjoy your passion? Grow the business and then “Flip” the business and make a profit on the sale? Is there any other reason to be in business? What is your “Why?” Do you know […]

By Jay Schaeffer  Posted  January 8, 2018  In Uncategorized 1. Is your business able to be sold? 2. How quickly can it be sold and turned into CASH? 3. Who would buy your business and why? 4. What will someone pay for it? 5. Who would pay the most for it? Here is a simple exercise for you to try. Imagine that you own a […]

The Business Lifecycle has these parts: Start Up Operation and Improvement Wealth Management Exit Business Purchase or Start Up Whether starting a new (or buying an existing business) the following should be considered to ensure you make an educated decision on your going into the business, including: 1. Pro’s and Con’s of the industry 2. Business Planning […]

If you are unsure about what you should consider in a share sale transaction, continue reading and feel free to send me an InMail for some more advice. 1. Continuity – In a share, be carried on by the same entity with the shareholders of that company changing. In some instances, customers and suppliers may not […]

Why Does It Take So Long to Sell a Business? “THE LAG EFFECT” I first heard the phrase ‘the lag effect’ from a colleague that I work closely with (Ian Haggerty). I will get to what it means soon, but for now, I would just like to mention how I feel the market is going […]

You can only sell your business once. You don’t get a second chance, and you can’t go back and do it again. Vendor’s ask: “How much will my business sell for?” You want to get the best possible price that the market will pay. But before we look at how to get the best price, you […]

When someone decides to sell their business, they are making one of the most important decisions they will ever make, – usually after having done a lot of planning, worrying and thinking. Selling can be a very unsettling and disturbing process for the owner, as they don’t want to upset staff, suppliers or clients who […]

There are many versions and definitions of profit. Business buyers need to be aware of the subtle differences in terminology used to describe profit, so that they can understand the impact and implications of these differences. Some of the different methods used in reporting profit are: Owner Operator. The pre-tax return earned by a working owner – […]

What is the effect on retail businesses moving to owned brands? One of the first questions I get asked by acquirers of Food Supply businesses is what % of the business is into Retail? The effect of the movement by retail from Branded to Owned Labels has seen a shift in valuation increase towards businesses […]

Did you know that electricity has gone up approximately 15%, year on year for the past 5 years, and there seems to be no end in sight? We could sit around and wait for the government to do something (highly unlikely) or we can do something for ourselves. Electricity is a necessity in our everyday […]

Business Tips – Selling Your Cafe or Restaurant Websites are populated with food businesses these days, that owners want to sell for a myriad of reasons.  Some of them are being sold at a price that barely covers the fit out cost or replacement value of the plant and equipment. If you plan for the […]

Costs – We Cannot Operate Without Them, But We Can Manage Them! This is the first of a series of blogs where we will look at some of the major costs associated in operating a business and how you might be better able to understand these costs and if there is anything you can do […]