The greatest difference between the best and the rest is mindset. The way one thinks determines their entire life’s path. The most successful people are those who don’t focus on the negative or obstacles, but instead focus on their vision, their strategy, and their goal. Thinking about your future or about your past will only hinder you from focusing on the present moment. 

Every day, no matter how much you may want to give up, there are going to be some things you can’t control. The question is: Will you let that stop you or will you use it as motivation to achieve your goals?

A positive attitude makes all the difference. It can help you keep going when things don’t go your way, stay motivated during tough times, and stay focused on what matters most in your life. When you have a growth mindset, you believe that your skills and abilities can be improved through learning, practice and effort. So how do you start?

Change those thoughts over time! Start by identifying the areas where your thinking makes you uncomfortable, such as thinking: “I’m too old to learn something new;” “I don’t have enough patience for this;” or “I’m not good at anything,” then look for ways to gradually alter these beliefs.

Your mindset is so important. The way you think about your life has a direct impact on how you live it. If you want to be successful, you need to start with the right mindset towards success. Achieving goals isn’t just about hard work or dedication – it’s also about how you see yourself and what you expect from yourself. 

Here’s 6 ways to develop the right mindset to set you up for success:

1. Accept challenges

You’ve probably heard the old saying, “the journey is more important than the destination.” And it’s true. The secret to success is all about taking on challenges and learning from them, whether they’re big or small. By seeking out challenges, you’ll put yourself on a path to learn more lessons, take more risks, and achieve greater rewards than you would on the safest route through life.

Success is hard work and requires a lot of dedication. The first step to success is to realise that the journey is more important than the destination. If you want to succeed, you must be willing to take on challenges. Accept that there will be setbacks along the way, but don’t let them stop you from pursuing your goals. As long as you’re open-minded and willing to learn from your mistakes, you can turn every challenge into an opportunity for growth.

2. Set both long-term and short objectives.

Start by setting both long-term and short-term objectives. From there, break each one down into simple steps that you’ll need to take in order to achieve your goal. This will help you build a well-organised plan for the journey ahead. To help get you there, I’ve identified five steps that will help set your mindset for success. They are: Reflecting on the past, setting both long term and short term objectives, Nurturing your confidence, Making a habit of celebrating progress, Avoiding negative self-talk. Remember, maybe it’s not possible for you to run a marathon right now but maybe being able to walk at least five miles each day would help!

3. Explore New Things 

It’s easy to get stuck in a rut, so try new things! Just like you should seek out challenges, don’t be afraid to try new things. You rarely know which new interest could develop into a lucrative new profession, for instance. You can allow yourself to grow by exposing yourself to new hobbies, people, experiences, and locations. You might feel like it’s too much work at first but remember that it’s all about the journey! Don’t just sit around when there are so many other options out there.

4. Enhance your professional and personal skills

You must constantly learn and develop if you want to be truly successful. Make an effort to acquire practical skills in both your personal and professional life. For some people, this can mean establishing a morning routine and rising earlier. Others might decide to enroll in courses, get tutoring, or read a lot of self-help literature in order to achieve their personal development objectives.

5. Learn From Failures

You know that the ability to bounce back is a big part of what makes someone successful. Admit your failures and learn from them, that’s the way to get better at anything.

6. Be surrounded by the best 

Our mindsets are significantly influenced by our environment. We are social beings who are influenced by people around us, after all. Be in the company of smart people who can share their knowledge with you and inspire you to advance both personally and professionally.

The process of modifying your mindset is slow. Accept that it will take time for you to adopt a positive view on life.  You’ll be able to push yourself more frequently and understand the advantages of going above and beyond the minimum level if you have a growth mentality.

Think carefully about the mental adjustments you want to make. Once you’ve figured that out, continue by refining your abilities and saying “yes” to chances that push you to grow and challenge you. Encourage yourself along the way, and don’t forget to regularly take ownership of your progress.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

WA tops national population growth

Australia’s population has recorded its fastest growth in 15 years as overseas immigration surged with WA achieving the most rapid growth of any state.

WA’s population grew by 2.3 per cent in the year to December 2022 compared to national growth of 1.9 per cent, the highest seen since 2008.

The Bureau of Statistics’ head of demography Beidar Cho said the key driver behind the high national growth was overseas migration.

While net overseas migration added 387,000 people to Australia’s population last year, natural increase (births minus deaths) added an unusually low 109,800 people.

This was down 23 per cent on the prior year, with the ABS saying COVID-19 mortality was the main contributor to an increased number of deaths and lower natural increase in 2022.

WA’s annual growth rate of 2.3 per cent equated to an extra 62,700 people, lifting the state’s population to 2.82 million – which is 10.7 per cent of the national total.

This growth put WA just ahead of Queensland (2.2 per cent) and Victoria (2.1 per cent) while Tasmania was the laggard with annual growth of just 0.5 per cent.

Queensland is traditionally Australia’s fastest growing state, courtesy of high interstate migration from the southern states.

WA’s high growth reflected contributions from three sources – net overseas migration added 37,910 people, natural increase added 14,164 people and net interstate migration added 10,593.

Notably, WA was one of only two states (with Queensland being the other) to achieve significant growth via net interstate migration.

As well as leading on annual growth, WA led on quarterly growth.

The state’s population was up 0.64 per cent in the December quarter, or 17,900 people, compared to national growth of 0.5 per cent.

WA’s quarterly growth came from net overseas migration (up 11,727), natural increase (3,074) and net interstate migration (3,113).

The data reveals some major shifts from long-term patterns.

The quarterly overseas migration was the highest since 2013 and followed negative growth during the COVID years, of 2020 and 2021.

Net interstate migration to WA has been consistently positive for the past three years and followed seven years of net population loss.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

Why buy a business that already exists instead of starting one from scratch?

What you are buying is a proven track record. An existing business has infrastructure, financial history, brand power, assets, staff and more. Some estimates say that one in three new small businesses in Australia fail in their first year of operation and two out of four by the end of the second year. By understanding the history of an established business, you are mediating the risk of starting from scratch.
 

The business sounds great, so… why are they selling?

The reasons for sale differ from business to business but don’t be afraid to ask us why the seller has decided that now is the right time to sell. Some owners wish to retire in the near future, others are relocating out of Perth. Some sellers simply had an end goal to sell after they had built a successful business – allowing them to move on to another venture. 

We operate with full transparency and in order to sell a business, we require a seller to provide full financial information which is available to potential buyers after they have been vetted and signed a NDA.
 

Is buying a franchise a good idea?

There has been a boom in franchising in recent years – you can find a franchise for sale in almost every industry. Unlike setting up your own business, when you buy a franchise the franchisor owns the brand, intellectual property and associated operating systems. You will benefit from a well-known brand, typically with a long history and a good reputation. The business model is established, so you will get access to refined procedures, operating manuals, stock control systems, financial systems and more. Franchises also tend to have good initial training, ongoing support and assist with marketing/advertising.  Banks will usually lend on a Franchise where they probably won’t on a non-franchise business in the same industry e.g. food 

When can I see the financials?

The majority of sales are confidential sales and as such potential buyers  are asked to sign a NDA (non-disclosure agreement). Once signed, you can review the business summary with financials. 

What happens if my offer is accepted?

If an offer is accepted a deposit is payable and a settlement date is set. Due diligence is completed subject to the buyer’s satisfaction. Depending on the business this could be very simple or more complex for larger businesses.
 

What is due diligence and who is responsible for it?

The buyer can ask any questions they would like to understand the full business picture and get the confidence they need to continue the business. For example; can the claimed revenue and profit be verified? You may also wish to see legal agreements such as licenses, permits, insurance policies, lease agreements, employee details, supplier contracts and more. The seller is responsible for collating information that the buyer requires. A solicitor and accountant can be engaged at this point for any professional advice. How long the due diligence process takes really depends on the business but you should allow roughly 15-30 days minimum.

What other costs need to be considered apart from the purchase price?

Stamp Duty, Settlement agent, cash flow, bank guarantee/bond if commercial lease.  Also any fees applicable to the industry where transfers are required and when purchasing a Franchise the up-front fees to the Franchisor.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

Selling a business can be a complex and emotional process, with a lot at stake for both the seller and the buyer. Unfortunately, many business owners make common mistakes when selling their business that can significantly impact the final outcome. This article will discuss some of the most common mistakes people make when selling their business and provide tips on how to avoid them.

1. Failing to Plan Ahead

One of the biggest mistakes business owners make when selling their business is failing to plan ahead. Selling a business generally isn’t something that can be done overnight – it requires a lot of preparation and thought. Many business owners don’t start planning for a sale until they are already in a financial crisis or experiencing burnout. 

To avoid this mistake, business owners should start planning for a sale one or even two years in advance. This will give them enough time to prepare the business for sale and address any issues that may reduce the value of the business. Planning ahead will also help business owners avoid feeling rushed and overwhelmed during the sale process.

2. Overvaluing the Business

Another common mistake that business owners make when selling their business is overvaluing it. This can happen for many reasons, including emotional attachment to the business, a lack of understanding of the market, or an unrealistic view of the business’s potential. However, overvaluing a business will often lead to a lack of interest from potential buyers or a lower sale price.

To avoid this mistake, business owners should have a realistic understanding of a fair market price for their business. This can be done by conducting a business appraisal that takes into account factors such as financial performance, market trends, and comparable sales. Having a clear understanding of this fair market price will help business owners set a realistic asking price and negotiate with potential buyers.

3. Neglecting Financial Records

Neglecting financial records is another common mistake that business owners make when selling their business. Well presented accounts for two years or more, is valuable in the  saleability of a business. Profit and Loss with a strong net profit figure and clearly identifiable add backs. E.g. interest, depreciation, Associated Directors/owners wages/superannuation.  

Buyers and their accountants will need to review financial records to evaluate the business’s financial health and potential for future growth. If financial records are incomplete or inaccurate, it can reduce the value of the business or even scare away potential buyers.

To avoid this mistake, business owners should maintain accurate financial records and be prepared to provide them to potential buyers. This includes income statements, balance sheets, cash flow statements, tax returns, and any other relevant financial information. Having accurate financial records can also help business owners identify areas where they can improve the business’s financial performance and increase its value.

4. Failing to Prepare the Business for Sale

Buyers will want to see that the business is well-maintained, organised, and ready to be transferred to new ownership. 

This may include organising files and documents, completing any outstanding repairs or renovations, and ensuring that all equipment and assets are in good working order. 

5. Not Engaging a Professional Business Broker 

Finally, many business owners make the mistake of not engaging a business broker to help them sell their business. Business brokers have the experience and expertise to help business owners navigate the complex process of selling a business. They can also help business owners identify and qualify potential buyers, negotiate the sale price, and ensure that all legal, financial and regulatory requirements are met.

It is important that the broker chosen has a thorough understanding of the business sales market in the industry the business is located in. This will also mean they should have a pool of potential buyers in their database. 

With less than 50% of businesses listed in Australia selling, and an average time on market of over 6 months it is critical that business owners take measures to avoid these mistakes to give the best chance of a successful business sale. 

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

The five entities that a buyer may choose to set up to buy a business in are:

• A company
• A company and trust
• A trust on its own
• A partnership
• Sole trader

In my experience, the majority of buyers buy their business in a company entity. It is also becoming common for accountants to set up a combination of company and trust.

As always, what is best for your needs, is to be discussed with your accountant.

In Western Australia — where stamp duty is payable on the purchase price businesses — once the entity has been entered on the contract of sale, not so much as a letter in that entity name can be changed without the possibility of the State Revenue office of WA charging double stamp duty.

Stamp duty is charged on the sale price of the business in a couple of States. A buyer’s settlement agent or lawyer can advise the amount applicable, or you can go online via a calculator from the State Revenue site. This will calculate the amount of the stamp duty that will be payable on the purchase price.

A company name is registered via ASIC.

This can be done via your accountant, or there are companies that can also arrange this quickly and easily for a set fee. See under Resources on ABB site.

Generally, your accountant will handle this for you. If it is going to be a company as Trustee for a Trust, then the company and trust must go on the contract of sale to buy the business. Your accountant should provide and confirm the exact wording at time of contract.

Registering Your Company Name

A company name is registered via ASIC (Australian Securities & Investments Commission).

An ABN (Australian Business Number) is not required on a contract of sale; however, if a company is buying a business, the ACN (Australia Company Number) will be required if the ABN is not yet available.

Tax Implications

There are various tax advantages which your accountant needs to explain, depending on the type of entity that you choose to buy a business under.

It is advisable to make sure that you get it correct from the start. It can be a very time-consuming and costly process to try and change three months or three years later.

Some people prefer to commence as a sole trader and look into changing to a company at a later date, particularly if the business is a small or trade business.

On occasion, a buyer may consider buying the company of the seller who owns the business, instead of the business. This may be done if there is a real need or reason to the advantage of the buyer, i.e. the company owns a license that is difficult to obtain or time-consuming to obtain.

Remember — when a buyer purchases a company, they are also buying the history of that company. A buyer purchasing the shares in a company needs to be very careful that they are legally exempt from responsibilities, liabilities, and debts both historically or currently of the company relating to both past directors and the Company entity. This is the main reason 99% of small to medium business sales are business only purchases, not Company share transfers.

By : Angela Williams

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

Perth is Buzzing!

Perth, the sunny and beautiful capital city of Western Australia is commonly known as one of Australia’s greatest innovators of science and technology, largely thanks to Western Australia’s booming mining and energy production. Perth is bustling with entrepreneurs and innovation, both SME and large enterprises.

Perth can truly be defined as a global city, largely due to its proximity to Asia, making it a bustling hub of agriculture, tourism and hospitality, food and education. With a population of over 2.1 million (2020), if you are currently looking to buy a business in Perth, there are countless opportunities available to you.

What Types of Businesses for Sale are Popular in Perth?

Perth, being a capital city, has a large array of businesses available for sale. As always cafes, restaurants and bars are extremely popular, as are tourism-style businesses, building and construction and manufacturing businesses. Childcare is flourishing due to a large amount of the workforce being involved in FIFO/mining. Western Australia is well known for its mining industry, so Perth is also a good choice for those looking for civil construction businesses as well.

So You’ve Made the Decision to Buy a Business in Perth?

At the moment, the City of Perth is offering millions of dollars in initiatives for businesses looking to innovate their practices. For example, the Local Activation Grant offers businesses up to $15,000 in support for events and businesses that participate in local events that activate the community in activity. This is a great chance to market your business and engage with the local community!
When buying any business it is strongly recommended that you conduct your due diligence. Ensure you have evaluated any risks, as well as any opportunities to further extend and expand the business. You will want to assess the financials, including operational costs and assets.
Advance Business Brokers can assist with many of these enquiries and provide links to professionals in all areas of buying a business.

Buying a Business as an Investment

Buying an existing business offers a number of advantages from an operational standpoint.  You receive established infrastructure, staff, proven marketing and sales strategies, and an ongoing cash flow. But is the prospect still an attractive one when you consider your purchase as an investment?

Is buying a business a sound investment?

The soundness of your investment depends on which business you buy, for how much and how effectively you conduct your due diligence. 

It may also sound like a given, but ensuring your expertise and experience align with your purchase can be the difference between seeing a healthy ROI, and watching your investment spiral down the drain. 

Purchasing a business that’s already done the hard work to get off the ground brings with it less risk. You’ve got a concept that’s proven to be successful and you’ve safely passed the initial one year window where 20 percent of new businesses fall over. 

But the hard work isn’t over. Some businesses may require a hefty injection of capital to upgrade machinery, bolster their working capital cycle, systems or software. Others may need a structural rejig that can take months to successfully execute. 

The advantages of buying an existing business

Purchasing a competitor’s business is a highly effective way to increase your market share. You don’t need me to point out the benefits this presents, from the increased customer base, trained staff to the increase in value proposition. You’re simultaneously knocking out the competition while acquiring an established pool of customers. From there you can foster the growth of these existing connections, rather than attempting to establish new ones. 

Similarly, you can buy a business that offers a complimentary service or product to the business you already own. For instance, let’s say you own a mortgage brokerage. A strategic business acquisition may be the purchase of a Property Buyers Agency. The alignment of both businesses would allow you to deliver a holistic service offering to property purchasing. 

Easier to secure finance

Lenders look more favourably on the purchase of an established business over funding a new one to get off the ground. It makes sense from the banks perspective – there’s a proven track record of revenue and execution, minimising the risk of the unknown. As a buyer, this can go a long way to helping you secure finance to make your purchase. 

There can be many advantages in buying an existing business rather than the time and considerable outlaw involved in starting from scratch.

Above are only a couple of the main advantages.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

If you’re in the market to buy a business, you have come to the right place. 

1. Lease Agreement

The lease agreement can have a significant impact on the success of a business.   If you want to buy a business that relies heavily on foot traffic or a good location, the lease agreement needs to be reviewed in detail. 

  There are a few things you will want to check:

• Is the lease transferable?
• Are there any trade constraints?
• How much time is left on the lease?
• Options?
• What are the terms of the lease?
• Are there any scheduled rent increases?
• Are there any expected shop fit-outs?
• Does the owner intend to sell the commercial property?
• Are sales or profit tied to the lease payments – % rental?
• Can you change the business name?

2. Local Developments

When you buy a business you want to ensure the opportunity will continue to be profitable. It is a good idea to check with the local council to see if any developments are planned that may impact your business. Especially if you are buying in a regional town, you will want to check if any major road changes or shopping centres are planned. These could have a dramatic effect on your sales and income. 

It’s a good idea to speak with some local business owners about the area and if there are any talks of things changing. One of the most important things, when you buy a business, is ensuring the business will continue to operate at the same level (if not better). You are basing your decision to buy a business around its profitability, so you want to ensure it can continue. 

3. Non-Compete Clauses

One of the important clauses in a sale agreement is a non-compete clause. This can prevent the current owner from opening up a similar business in the local area for a set period of time. 

This is very important in service industries such as childcare and other service businesses.  If the current owner was to start a new business, they could take the existing client base with them, which would affect you and potentially decrease your profitability. 

Check the Contracts and Agreements When you Buy a Business

4. Contracts and Agreements

What has the current owner signed onto? You need to have a solid understanding of any agreements that the company has agreed to, such as ordering custom coffee cups or a new vehicle that’s due to be delivered. You need to know all the contracts that are in place, so you can factor these expenses into your budget.

A company may have agreed to order a certain amount of products every month, but they are struggling to sell. You want to buy a business that is profitable, not one that has a lot of debt and agreements in place that you may struggle to pay. 

5. Structure

What exactly are you buying? Are you buying a company, a business, a distribution right, a franchise? There are so many elements, you need to have solid professional advice so you understand what exactly you are buying and committing to. 

When you buy a business you may be relying on team members, products, equipment, trademarks, clients, suppliers, distributors and so on for its operation. Reviewing all these elements is important when you buy a business as you want it to continue to operate smoothly after the transition. It is during the due diligence process you can review all of these elements and make decisions if this is the right opportunity for you. 

Do Your Checks When you Buy a Business

When you buy a business you are entering into legally binding contracts. With a Business purchase (not a Company purchase) you do NOT take on l the assets and liabilities of the company entity selling the business. That is why the sale of businesses is the most common form of business sale transaction for sale of Small Businesses in Australia.

It’s extremely important you have professional advice from a solicitor, accountant or business broker to help you during the process. 

You can buy a business from $15,000 to multi-million dollar companies, so the process will be different. What is important is you conduct proper due diligence so you know exactly what you are committing to and that the business meets your expectations. 

3 Key Pieces of Advice to Help You Buy a Business

If this is your first time entering the world of business ownership, you may be wondering where to start. In recent years we have seen a common debate about whether to buy a business or start from scratch. Whilst both have their merits, when you buy a business it’s like you’re 10 steps ahead.

An established business has a number of advantages such as;

• Financial history and projections
• Established products and services
• Experienced team
• Systems
• Marketing strategies
• Lease agreements, potential desirable locations and fit-outs

So when you are looking to buy a business, what exactly should you be aware of? We share 3 key pieces of advice to help guide you.

1. Understand Your Return on Investment (ROI)

Basically, how long will it take you to earn back the money you have invested? Obviously for different-sized businesses this number can have a different effect.

ROI is a term that is rarely seen in business for sale ads, though it is becoming more common in recent years. It is also a question worth asking the seller when you look to buy a business, so you know that they have considered your financial input and situation.

Return of investment –  the general kind of rule is if the ROI is less than 30%, means the business is in an industry sector e.g. childcare  that is in high  demand and the business has strong financials and stability.  Using childcare as an example, the ROI can range from 2 x net profit in regional areas to as high as 4.5 x net profit in metro area.

Obviously, every business is different.   When you buy a business you are buying an entire system, all the assets and liabilities. So it is a big picture to consider.

What an ROI allows you to do, is compare similar businesses for sale. If Business  has an ROI of 35% and Business B has an ROI of 22%, why is that?

Whether you are buying a sole trader, partnership or company, how the ROI is calculated may be different. It may be including the owner’s salary, or keeping it separate. So it’s important to have a solid financial understanding and obtain advice from an accountant or business broker.

Another way to look at ROI is in terms of years. An ROI of 25%, will take 4 years to pay back your investment. An ROI of 33% will take 3 years. So it’s good to understand how long it will take to see your money returned.  This may  be reduced  by an upturn in income/net profit by new owners.

2. Do the Due Diligence

So many times we hear the story “I have a friend who wants to sell their cafe and they offered it to me. What should I do?”

Well… you should do your due diligence.  When buying a business you do not take on the liabilities of the current owner.   They remain with the Company/owner selling the business.  Only if you are purchasing the Company via share purchase does a buyer take on liabilities. Share transfers are rare for small business sales.   There may be some major issues with that cafe that you won’t know about until you do your due diligence.

Due diligence helps you to establish:

• Owners income
• Business structure
• Employee agreements
• Lease and rental agreements (such as property or equipment)
• Contracts
• Financial position
• Suppliers and Customers
• Products and services offered
• Plus more, depending on the business.

3. No Matter How Small, Get Advice!

It’s one thing to read forums and articles online, it’s another to obtain professional advice for your particular circumstances.

Business Brokers  who specialise in buying and selling businesses should be your first point of contact.  You want to have a solid understanding of what you are purchasing when you buy a business.

The best way is to speak to a professional, allow them to analyse the business and give you a clear picture of its current situation and future potential.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

What to expect from an Insurance Broker ?

When you run your own business you have to work hard at it for 12 months a year. That’s why you need insurance that works just as hard – without taking a break.  Murray at Phoenix can assist you to identify the day-to-day risks which your business faces, and help you to decide how to handle and manage those risks which you decide to transfer to insurance.  Phoenix will help you find the right insurance solutions for your needs. Here’s what we can do for you over the course of a year.

• Tailoring your strategy

We can carry out a needs analysis to identify potential and existing risks to your business – taking into account any issues over the past 12 months. We do research on insurers to present you with a personalised report recommending the best option.

• Placing cover

We implement your tailored insurance strategy, confirming and communicating the details of your policy and premiums.

• Delivering ongoing service

We can handle the day-to-day management of your insurance cover, holding regular review meetings to make sure you continue to have the right level of protection and recommending changes where necessary to cover any new or emerging risks to your business.

• Managing your claims

If you have a claim, we can support you through the entire claims process – negotiating with insurers and third parties to ensure the swift payment of any benefits. We can maintain up-to-date claims statistics and analysis on your claims frequency, severity, causes and trends so we can get the best outcome for you when it’s time to renew your policy.

• Renewing your cover

As the end of the year approaches, we can review any changes to your business over the course of the year – including any claims you made – and put together

With over 25 years’ experience, and part of the Steadfast Group.   Johnson Insurance Brokers Pty Ltd AR 1283293 and Murray Johnson AR 1283294 are Authorised Representatives of Phoenix Insurance Brokers

While insurance is our business, our philosophy is about people and building strong, solid relationships with them.   We partner with our clients to achieve the best possible outcomes, for them, their families and their business. 

With offices in Como and Busselton, Murray can be contacted on 0418 563 599 / murrayj@phoenixins.com.au

Click here to access the Brochure for further information.

Off track

It is a term which can be and has been applied in recent times to an increasing number of “respected” leaders from a range of disciples, sectors and professions.

The trust and confidence assigned to nominated and widely accepted leaders have been shaken, in some instances, to their very core.

Look no further than at the higher echelons of the Reserve Bank in Australia. Earlier this year the Governor declared interest rates were not expected to be raised until possibly 2024. Since that time there have been three increases in the official interest rates, taking them from 0.1% to 1.35%. That is a stimulatory rate. And, in all probability there are more to come in the next 12 months. An official neutral interest rate of 3% is possible.

A case of inflated reality overwhelming deflated leader-led projections.

Likewise, leaders of start-up businesses in buy-now, pay-later and neo banking have learnt many fundamental financial and strategic lessons. A lot of their initial investors have lost interest and a lot of money.

In the words of Jeff Bezos, founder of Amazon, lie some pearls of wisdom:

Think Big. Fail Fast. Move On.

Remember always that success is typically relative, and like fame, can be fleeting.

Countless established, start-up and greenfields fin-tech and technology operation leaders have been brought back to reality during 2022.

So, all leaders do not necessarily have all the answers and strikingly accurate foresights.

And do not be tempted to contend that what is needed most is resilience. That implies a return to an original state, which may not be the intended destination.

CONCLUDING COMMENTS

No-one need consider themselves to be on their own. However, falling in-line behind a preferred leader is not necessarily on track to fame and fortune.

Source:

Barry Urquhart
Managing Director
Marketing Focus
M:      041 983 5555
E:       Urquhart@marketingfocus.net.au
W:      www.marketingfocus.net.au

The more prepared you are, the better the outcome will be – both for you and your business. 

This tax checklist will help you break down the task into manageable portions:

Multiple Businesses under same Entity

When a business owner wants to sell a business and operates more than one business under the same entity, it is imperative that separate accounts are available for each of the business streams/locations.  This includes profit & loss statements solely relating to the income and expenses of each location along with separate balance sheets for each location.   

Business sales can fall over when the accounts are not easily decipherable for buyers/accountants/finance brokers and valuers.   

The individual accounts must also match back to the Company tax returns.  If business owners do not have their accounts set up correctly now, at the start of the tax year is a good time to start.

Good record keeping

Your tax position is only as good as the records you keep. 

Lots of business owners still do their tax and recordkeeping on paper. Yes, it saves you paying for and learning to use digital software. But at what cost? It’s so easy to lose paper records. And printed receipts on that glossy paper quickly fade.

No record means you’re not able to accurately track your GST, your deductions, even your depreciation. Those losses in unclaimed credits and refunds could wind up costing you far more than the price of the software.

Budget review

The federal Budget unveiled a number of measures for small businesses. Be sure you know the latest measures and what you are entitled to, as your tax situation could have changed significantly. 

Also consider your own position under the low- and middle-income tax offset – depending on how much you earn, it may be wise to postpone or bring forward your own pay to a different tax year to meet the eligibility requirements.

Deductions ready to claim

This sounds self-explanatory – but you’d be surprised just how many deductions go unclaimed. Many of these fall into two types: small expenses and depreciation.

People often think small expenses – e.g., a coffee meeting with customers, a few stationery items here and there – aren’t worth bothering about. But they quickly add up! If it’s a legitimate business expense, it can be claimed. Would you rather you keep those funds or the tax office?

Meanwhile depreciation is complex and often gets overlooked because busy business people aren’t sure what they’re entitled to claim. Company vehicles, computers and other electronics are the most obvious. But think more widely about your business assets – office furniture, air-conditioning, the fit-out of your business premises and so on.

And if you obtain professional financial advice, you may be able to claim that too!

Employee entitlements up to date

The hustle and bustle of everyday life in business may mean you have some employee entitlements to catch up on. 

Superannuation Guarantee (GS) contributions is the first point of order – you may accrue penalties if this goes unpaid. Things get messy if they are overdue once we cross into a new financial year. And tax time is also when employees are most likely to look at their super and notice missed payments. So be sure this is up to date.

Check in too on other entitlements while you’re at it – annual leave and long service etc. – to ensure you have those covered.

Sales splurge avoided

Consider whether you actually need it. 

Buying stuff you don’t need just for the tax deduction is like buying a car because it looks good – it’s an unnecessary expense, depreciates in value, and you have to find somewhere to store it. Eventually, you may need to sell it (likely at a loss) to get that all-important space back.

Self-entitlements sorted

Don’t forget to look after yourself too.

Are you paying yourself properly? Do you have outstanding director loans? Have your expenses been divided between business and personal?

Remember to claim your home-based work expenses – such as a dedicated home office from where you do your accounting/strategy/social media/other work activities.

And have you paid yourself superannuation? Other employees receive 10 per cent in super on top of their salaries… you are entitled to this as well. 

The old line “the business is my retirement fund” is a huge personal risk, so consider diversifying your retirement assets and extracting your superannuation out of the business. It’s far easier to manage in smaller, regular amounts with the pay cycle than a big lump sum. Plus, you’ll have longer to benefit from the compound growth!

Before you consider buying a business, there are some key steps to take in order to know exactly what you’re getting into.

Buying an existing business can be an effective way to skip the start-up stage and hit the ground running as your own boss.

Once you’ve found a business you’re interested in, it’s important to check its financial health thoroughly. Completing this checklist can help you get a clearer picture of your potential business’ prospects.

1. Financial statements

• Review balance sheets, profit and loss statements, annual reports and any cash-flow statements for at least the past two years. You can do this with your accountant.
• Verify the numbers against independent evidence, such as sales records, invoices, bank statements and loan documents.

Questions to ask

• Are there new or increased costs you should anticipate?
• Are there any cash flow or debtor problems?

If the current owner isn’t willing to provide these details, it’s important to know why. 

2. Tax records

• Check business activity statements (BAS) and reconcile the taxable income and profits with the business’ financial statements
• Check payroll tax records (if applicable). The PAYG (pay-as-you-go income tax), GST and other tax obligations, such as payroll tax, should all be up to date.
• Check stamp duty records (if applicable). Will the purchase of the business be GST-free and approximately how much stamp duty will you have to pay?

No matter how good you are at numbers, you’ll probably want an accountant to go over these details with you, so you can be sure nothing is missing.

3. Assets

It’s essential to make sure that the assets listed in the books match what exists within the business and that value isn’t being overestimated.

• Ask for an asset list and check off physical items against it
• Do a stocktake to assess the inventory on hand and its value
• Inspect and verify that all plant, equipment, fixtures and fittings are in good working order
• Check assets are insured until settlement of purchase
• If assets are leased, get copies of the leases
• If inventory has been sitting in the business for a long time, ask why. It could prove difficult to shift down the line if customers aren’t interested.
• If you don’t understand how an asset works, ask the owner or someone else who may have experience with it.

4. Customers and suppliers

• Get a list or database of key customers
• Check sales contracts to see what future business is guaranteed
• Check if any major contracts are about to expire
• Get details of suppliers and find out what the conditions of trade may be
• If possible, get feedback from customers and suppliers on the business.

5. Reason behind sale

Investigate the reasons for the sale and try to understand what the current owner’s motives may be by asking:

• How long has the owner operated the business?
• How long has it been on the market?
• How many offers have been made?
• What’s the owner planning to do next?

6. Legal rights and obligations

• Review government regulations that apply to the business to ensure it has the relevant permits and licences it needs to operate
• Check if any worker entitlements need to be made, including leave entitlements or compulsory superannuation
• Check whether workers’ compensation premiums are up to date
• Check if intellectual property is protected through licences, patents, trademarks and registrations and if these rights will be passed on with the sale
• Check the lease and any agreements binding the business and ask for copies. Questions to ask about the lease: Is there a right to renew on the lease and can you exercise that option? If there isn’t a right to renew, could you find another suitable location?
• Check the Australian Securities and Investments Commission (ASIC) website for company details
• Contact your state or territory consumer affairs agency for a record of any unscrupulous trading
• Check the Australasian Legal Information Institute website to see if the current business owner has ever been taken to court
• Ensure the vendor puts all agreements in writing and keep your copies of correspondence and statements.  

7. Competitors

You can get some of this information from industry associations, government departments and the Australian Bureau of Statistics, or seek specialist advice from industry bodies, consultants and business brokers.

• Investigate your prospective competitors. Look at their growth, strengths, weaknesses and threat to you. If you can, get the data to compare their profitability, earnings, prices and costs.
• List any potential threats. You can check with the local council to see if new competitors are planning to start up.
• Research industry trends. Is the sector growing or slowing? What are the profit margins?
• Consider economic factors. If the economy slows down, how will this affect your business?

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

There is one resource that we are all given equally: time. What you do with yours in business can be the difference between success, failure, or plain old mediocrity.

Many business owners decry a lack of resources to grow, chief among them being time. Whilst it is easily received, time is devilish to manage. 

When many buyers  transition to self-employment, they have been effectively “institutionalised” by former employment: they come to miss the corporate framework that gave structure to their workday. Despite the fact this structure was one of the factors they had longed to escape!

The wide-open spaces of business ownership may give the appearance of freedom. What this grass-is-greener vision doesn’t convey, however, is that there is no escaping the responsibility of business ownership when pay day and monthly bills fall due.  

Back to basics

Getting the basics right is key to ensuring your time is spent wisely and productively:

• Goal-setting: Managing time requires setting goals. The more time spent on a task, most likely, the more output. If nothing else, at least time working for the business is time invested in the business. 
• Efficiency: An honest assessment of skills is a great place to start. What are you the business owner really good at? Maybe a skill that requires years to acquire is the essence of the business plan. 
• Analysis: The concept of skills as an asset sometimes gives business owners a license to work overtime. They do so because no analysis has been made of what the business really is – a service company undertaking a task that could in part be delegated to a lesser-skilled person. 
• Big picture view: This could be the first step to freeing up the business owner to expand the business. A complete review of the business plan may reveal that rather than being on the tools, the business owner is best placed to sell the service and also has the skills to train others to undertake lesser-skilled tasks. 

Know your Business

“The customer is always right” is a phrase pioneered by Harry Gordon Selfridge, John Wanamaker and Marshall Field in around 1905: “Every one of their thousands of employees are instructed to satisfy the customer regardless of whether the customer is right or wrong.”

The customer always wins the argument. They can silently vote with their feet. As such, time spent learning how your relationship is perceived by your customers is time truly invested. 

A single customer inclined – or better still, enabled – to give repeat business is an asset. The person with the most to gain from good customer experience is the business owner. 

Take time to mystery shop your own business. Ring and ask for service. If the response is not as you would wish, invest more time in improving how your company appears to the community. It is perhaps the best time investment for any business owner.

Would you buy your business?

Presenting your business for sale to yourself can deliver a rude shock. All those things that need fixing; the professional appearance (or lack thereof); what could be improved if only you had the time. 

Step back and critique your overall operation. Compare it to not only your direct competition but to other businesses too.

This will take time, but the rewards may well be that your business looks and feels better than the competition. Your customers and staff will notice. As will any prospective future buyer.

Time is money

What is the most valuable asset the business owner has to invest to generate the maximum return? Time. 

“Time is money,” as Benjamin Franklin reportedly espoused in 1748. Yet similar quotes date back at least the 5th Century BCE, when Greek biographer Plutarch described time as the “most costly outlay”.

Another short but powerful quote that should ring in the ears of every business owner is “business is business”, paraphrased from US President Calvin Coolidge (1923-29).

When undertaking any time commitment, ask yourself: Is this an investment or a waste of time? Will it assist the business? 

Devote your time and effort to where it will bring the most rewards and the rest will follow. As Hollywood executive Samuel Goldwyn once said, “the harder I work, the luckier I get”.

When applying for a business loan, there are a number of documents you may be asked to provide, including financial statements, proof of income, identification and more.

A business loan or overdraft could help you make your next purchase, manage your cash flow or expand your business.

When applying for business finance, you (and any directors, partners or guarantors) may be asked to provide:

1. Financial statements, preferably prepared by an accountant
2. Proof of individual income
3. Bank statements
4. Identification
5. A few extra things if you’re a start-up business

These documents can help your financial provider understand your business’ financial situation.

There are different types of business funding you can apply for, including business loans, overdrafts and credit cards. If you’re applying for asset finance, you may need to show extra information. 

Financial statements

Your financial statements will show your asset, liability and net worth positions, as well as your income and expenses that will be used to determine if you can meet your existing and proposed repayments.

Your financial statements will generally consist of a balance sheet and income statement. They may also include a statement of cash flow.

You may also be asked for your latest tax returns, business activity statements (BAS) or print-outs of statements from your Australian Taxation Office (ATO) portal. If there are any trusts or self-managed super funds (SMSFs) related to your business, you may need to provide additional documents,

Proof of individual income

Lenders will also want to know your personal income if you’re a director and/or shareholder of a company. You’re likely to be asked for your two most recent individual tax returns and an ATO Notice of Assessment.

If you earn other income unrelated to your business, you may want to provide this information as well. For example, you could bring a rental statement if you own an investment property.

Bank statements

So that the lender can obtain a complete picture of your financial position, they often ask that you provide details of your personal and business income, savings and liabilities, such as loans and credit cards that you might have with other financial institutions.

You’ll also need to bring your latest bank statements – either paper or electronic copies are fine. If anyone is guaranteeing the loan, they will also need to provide this information.

Identification

If you’re applying for a loan with a lender where you’re an existing customer, you most likely won’t need to complete this step.

If you’re a new customer, you’ll need to provide identification such as your driver licence or passport. The documents needed will vary depending on your business structure – you may also need to bring in your trust deed or partnership agreement or company registration, if applicable.

A few extra things for start-ups

If you’re yet to start your business or have recently started trading and don’t have 12 months of trading history, there are a few extra things you may need to provide, including:

• Cash-flow projections
• Business plan
• Business contract of sale
• Lease agreement

Source:  https://www.commbank.com.au/articles/business/information-for-business-loan.html

Industry research demonstrates that buying an established profitable business (small or large) will reduce business ownership failure by over 50% when compared to starting a new business. 

Why Buy an Existing Business?

When it comes to building a successful business, many entrepreneurs opt to purchase an existing business—and there are a variety of excellent reasons to do so.  Not only does it mean you can see how your new venture is performing prior to buying it, but you also eliminate many of the risks associated with start-up businesses. 

There are numerous advantages to buying an existing business, including:

• Immediate Cash Flow from the Business
• A Business with Experienced Employees
• Seller Training comes with the Business
• A Business with Established Business Operating Systems
• Established Customer Base and Referral Business
• A Business with Established Suppliers and Credit
• The Business enables financing

Making The Right Connections – Advance Business Brokers are experts in the sale of Childcare centre business and properties.   Our huge database of buyers extends internationally.   

Buyers requiring assistance with childcare application processes will be assisted all along the way when they purchase with Advance Business Brokers.

LIFE-BALANCE

Living with and operating in an environment affected by coronavirus has emphasised the importance and positive nature of life-balance. Incidences of stress, depression, counselling by psychologists and psychiatrists, increased absenteeism and falling morale, have substantially broadened. Self-worth is, and should be valued above all other measures.

Working harder and longer is inextricably associated with pandemic-fatigue. There must be a better way.

Cost: benefit analyses, task prioritising, delegation, disciplined planning, celebrating achievements and taking the time to provide “space” for all are best categorised as imperatives, rather than as opportunities.

Determining opportunities, costs and ranking activities are complemented with the discipline of identifying and determining what needs to be stopped and possibly deleted. Taking the time to do so can, and will be rewarded with more available free-time.

Leadership should be recognised, respected and valued.

Source:

Barry Urquhart
Managing Director
Marketing Focus
M:        041 983 5555
E:        Urquhart@marketingfocus.net.au
W:       www.marketingfocus.net.au

When applying for a business loan, it’s essential to prepare a detailed business plan and fully inform the lender about your proposed venture. This information helps the lender to provide you with the right type of finance and advice.

Decisions to make

Deciding that your business needs a loan is only the first step. There are a number of things to consider before you approach a lender; how much do you need to borrow; what type of loan will you need; how long will you need it for; can the business afford to repay the loan, interest and any one-off or ongoing fees that come with the loan; what security can you offer the lender and how this affects the interest rate offered. Take the following into account:

1. Access to funds you borrow

If you need to access the funds on a semi-regular basis (i.e. to help with cash flow to keep the business operating while waiting for your customers to pay for goods etc.), ‘at call’ loans such as an overdraft or line of credit are designed for this purpose.  However, if you need the funds to buy a new business or equipment etc. to expand your existing business you will need the funds ‘upfront’.  This is also known as a ‘fully drawn advance’ and provides you with the entire loan amount all at once.

2. Loan terms

Loans provided upfront will need a portion of the loan plus interest paid back at regular intervals. The repayment amount will depend on the term or length of the loan. To determine the loan term suitable for your business you will need to calculate how much you can afford to service the loan. Be aware that the longer the loan term the more total interest you will pay. Loans that are at call have no fixed terms.

3. Ongoing funding

This is the average amount of an overdraft or line of credit that is used at any one time. E.g. You may wish to have an overdraft limit of $20,000 to provide money for the occasional big expense, but usually, you won’t use more than $5000 of that credit limit on average. So in this case $5,000 is the level of ongoing funding you need.

When applying for an overdraft limit, things to watch out for are:

The higher the overdraft amount higher the fees

Clauses where the lender can demand repayment of the whole loan at any time.

4. Fixed or variable interest rate

The choice of the rate will affect the stability of repayments, the overall cost of the loan and the loan features available. With a fixed-rate loan, the lender bears the risk of interest rate moves, while with a variable rate you will bear this risk. Ultimately, the choice of variable or fixed rates will depend upon how much free cash flow your business generates after you have paid all your expenses, including loan repayments. If your business has a low-profit level, a variable rate loan repayment may rise beyond your ability to pay.

5. Loan security

Loans can be secured or unsecured by various types of assets, including residential, commercial, rural property or business assets. Alternatively, some loans are unsecured by any asset. Generally, the less you provide for security the higher the interest rate will be. Be aware the lender has the legal right to seize any property or asset you offer as security if you can’t repay a loan on time.

6. Fees

There can be fees that can make a loan less attractive than it first seems. These include one-off fees such as establishment/application fees, exit/discharge fees and early termination fees or regular fees such as service fees or line/credit advance fees. Be sure to investigate the cost of set-up and ongoing fees in the average monthly repayment to give you a better idea of the true cost of the loan.

Seek advice

The information provided here will provide you with a range of possible finance options. It is important to seek advice from your accountant or business advisers before approaching a lender for a loan.

Plan the business, plan the finance

Lenders will ask for a lot of in-depth information about the financial history of the business. It’s also important for you to create a convincing and detailed business plan which should include a profit and loss budget and cash flow forecast. The information you use to build your business plan may also be needed by the lender to assess your project. This includes both the past and future plans for your business, the people working in it and the market itself.

Applying for business loan

A projection of the cash requirements of the business is most important to a lender, as it is the actual cash left after expenses

Risk assessment

Understanding what lenders look for and what they consider risky will help you present your business in a favourable manner.

As a general rule, lenders look for:

• the level and nature of your security (what you’re offering to give them if you can’t repay the loan)
• your ability to make regular loan repayments (cash flow risk)
• your ability to ultimately repay the debt (business risk), including any other debts you might already have.

You need to be able to assess the level of cash flow or business risk in your specific circumstances. A projection of the cash requirements of the business is most important to a lender, as it is the actual cash left after expenses that will repay the loan, not income. It also shows you are an effective manager.

A lender’s perception of risk

The following factors can influence your lender’s perception of risk. If a number of these areas apply to you and your business you may need to consider another source of finance.

Risk factors:

• start-up businesses incorporate financial, business and management risk
• lack of security
• lack of business history
• industry sector, factors will include levels of competition, barriers to entry, profitability profile and current economic conditions
• highly seasonal businesses eg. swimsuits, agriculture. You’ll need to demonstrate how you’ll deal with cash flow pressures in the off season
• lack of planning, market knowledge and finance skills
• poor credit history.

The outcome of your application is strongly influenced by how well your proposal is researched and how well it is presented.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

When it comes time to sell your business, it is important to present it to potential buyers in the best possible light. This doesn’t mean just looking good on the outside, your business should be profitable and functioning well to appeal to prospective buyers.

Importantly, the business should “divorce” itself from you the owner, so that the Goodwill vests in the business itself and is not seen to be part of you, the owner.

Exit Planning to Add Value

Exit planning is essential for the survival of your business, for the sole fact that not all sales are gradual processes. Some occur due to sudden events, such as ill-health or family issues. Having an exit strategy in place ensures a smoother transition when it comes time to sell your business.

A great way to prepare your business for sale is to view your business through the eyes of a prospective buyer. Would you want to buy your business if you viewed it with fresh eyes? If the answer is not a concrete ‘YES’ then you have work to do.

Here are some ways you can add value to your business when preparing to sell:

• Make sure all financials are up to date- this demonstrates that you are on top of the financial aspects of the business at all times.
• Show proof of profitability (even with certain adjustments)
• Ensure all necessary contracts are in place, up to date and can be legally transferred to new ownership
• Tidy up processes, manuals and other key operational documents to demonstrate that they are fully up to date
• Make sure your lease for the premises is secure if the premises is of critical importance to the ongoing business e.g. a retail business
• Sell off plant and equipment as well as other assets that no longer contribute to the business so that they do not represent any weaknesses and become a distraction to the sale process. Similarly with any redundant or old stock.
• Do a general ‘tidy’ of the premises.
• Organisational structure- are there key staff in place and how critical are your (the owner’s) functions to the business?

Preparing a Business for Sale can add value.

How this client prepared to sell their business so they could retire.

To demonstrate a real-life example, Roy was contacted by an accountant to meet with his client who wished to retire and sell his business.

The owner was performing the functions of both factory manager as well as a specialised machine operator on an expensive piece of equipment which produced approx. 50% of the income. I immediately identified this as a weakness and threat that a buyer would identify and I advised the Vendor to immediately advertise and employ for a qualified engineer to take over the machine operator function.

By the time that the business profile was completed and the business was placed on the market, the Vendor had employed a suitable replacement so that when qualified buyers questioned who would replace the vendor in this function, I could answer that this person was already in place and being trained. This then eliminated a major objection and opened up options of who the buyer may be. The business received 4 offers within 4 weeks and was sold within 6 weeks.

When it comes time to sell your business, it is important to present it to potential buyers in the best possible light.

Brokers Objective

The objective of an agent when selling your business is to be able to attract as many qualified Buyers as possible, in order to provide you, the Seller, with as many options as possible and to be able to obtain the best result for you in respect of both price and the terms agreed.

Life goes on. So too commerce.

Most noticeable are the changes in the pace, nature, (in)consistency and modulation of both. Intensity seems to have increased across the board – for those who seek to prevail and succeed. Overall, sights have tended to be lowered, expectations reined in and relationships limited to those from whom trust, mutual respect, integrity, on-going accessibility and responsiveness are expected and somewhat assured.

Happiness, satisfaction and fulfilment appear to be less conspicuous. “Soldiering on” seems an apt description of prevailing sentiments. For others, the dark shadow of depression, stress and anxiety is all-consuming.

Few if any things have stopped. Progress may be tortured. Achievements generally take greater and more effort, time and resources.

Refreshingly, among those who recognise and accept the present reality philosophically, the sun still shines; it rises in the east and sets in the west. In that context, the essential benefits and labours of life are there to be enjoyed, deployed and, yes, even toyed.

Hope springs eternal. Tomorrow is another day. Application and maintaining intensity are fundamental undertakings when the essentials (of operations) are considered non-negotiable. Priorities, schedules and allocation of resources are, and should be, applied intensively.

Across the centuries, countless military leaders have embraced and implemented the philosophy:

I may lose a battle,
But I will never lose a minute.

Now is not the time to ease back. Recalibrating business models, operational standards and visions need to be introduced and sustained with enthusiasm, confidence and assertiveness.

Source:

Barry Urquhart
Managing Director
Marketing Focus
M:        041 983 5555
E:        Urquhart@marketingfocus.net.au
W:       www.marketingfocus.net.au

Childcare Management Companies

Some management companies that may be able to help you and will be able to provide a quote to manage your centre depending on the level of management required.

While we don’t recommend any particular management company, the following links from a Google search may be of assistance:

Elite Childcare Management

www.elitechildcaremanagement.com.au

Early Learning Management: Child Care Management System

www.elm.net.au

Leading Edge: Childcare – Management, Consultant & Training

www.leadingedgechildcare.com.au

Giggletree – Childcare Management, Childcare Consulting, Childcare

www.giggletree.com.au

Advance Childcare Management

www.advancechildcare.com.au

Brisbane Childcare Consultants | Childcare Management Group

www.limelightmanagementgroup.com.au

Our Services – Foundation Early Learning

www.foundationearlylearning.edu.au

Impressions Childcare Management

www.icmanagement.com.au

First Years Consultancy

https://firstyears.com.au/

Childcare centre can be a very lucrative business but it shouldn’t be the only reason you are buying one. They are a highly rewarding and profitable business but they require dedication and strong leadership.

You will be responsible not only for the physical and emotional welfare of the children attending your centre but also the business as a whole. The job may be filled with fun, games and play but it’s important to keep it professional. The standards are high in this sector.

You need to set an example to your staff. You will need to be punctual, enthusiastic, polite, and rigorous about following the directives set by the Australian Children’s Education and Care Quality Authority. It’s also important to observe discretion and forethoughtness when dealing with parents. Keep a detailed and systematic records of the children’s developments and special requirements.

Do you have respect for authority?

Buying a childcare centre comes with a great deal of responsibility because the business is nationally regulated. ACECQA regulates and inspects daycares or childcare centres.

Visit https://www.acecqa.gov.au/resources/opening-a-new-service and learn what you need to know to open an educaation and care service in Australia.

ACECQA will be looking at the proficiency of the staff/child ratio, health and safety, space, resources, suitable activities for emotional, physical and social development, special needs, child protection procedures, and record keeping.

Maintaining a positive relationship with your ACECQA inspectors and developing transparency in your dealings with them, will ensure a highly recommended reputation of your business.

Are you sensitive?

Most parents are apprehensive about leaving their children at a DayCare for the first time (usually they are more anxious than their kids after drop-off). It is important that you are amicable and understanding about any worries or special requests.

You will have to listen carefully to how Anna is sensitive to loud noises, that Chris won’t eat cucumbers, and Lenny has to have his Mr. Fluffy all the time.

You also have to remain sensitive at all times to any unusual behaviour. Dyslexia and Attention Deficit Disorder (ADD) are rarely diagnosed before the age of seven and such behaviours may be an early indicator.

Observe and get to know their characters and quirks for you to be able to approach each child accordingly and this will help you run your childcare centre smoothly. This would also reassure parents that their children are safe and in the right place.

Do you know your local area?

Do your research and make sure there aren’t too many other thriving childcare centres in the area. Many may have opened after the centre you are buying was established and the level of competition might be the reason for the sale of the business.

Check also the local demographics. It is vital that a lot of young families are living within a five mile radius – that is where the 80% of clients of the childcare centre come from. It would also be advantageous to be placed near a good transport links so parents can drop and pick-up their kids on their daily commute.

Are you creative?

There are numerous ways to incorporate learning and development to creative play and activities. Encourage your staff to come up with educational yet fun projects to encourage children to participate. Then decorate the room with the children’s masterpieces. Parents and children likewise respond well to a bright, colourful environment. Just change the activities as well as some materials periodically so children won’t get bored of it.

Do you have strong principles?

The Australian Government Department of Education, Employment and Workplace produced the Educators’ Guide To The Early Years Learning Framework For Australia.

“The aim of the EYLF is to extend and enrich children’s learning from birth to five years and through the transition to school. It assists educators to provide young children with opportunities to maximise their learning potential and to establish the fundamental basis for future success in learning.”

Elements of the EYLF

The EYLF sets children’s learning at the heart and comprises three interconnected elements: principles, practice and learning outcomes. All three elements are essential to early childhood education and program decision-making.

Principles

• Secure, respectful and reciprocal relationships
• Partnerships
• High expectations and equity
• Respect for diversity
• Ongoing learning and reflective practice

Practice

• Holistic approaches
• Responsiveness to children
• Learning through play
• Intentional teaching
• Learning environments
• Cultural competence
• Continuity of learning and transitions
• Assessment for learning

Learning outcomes on children

• have a strong sense of identity
• connected with and contribute to their world
• have a strong sense of well being
• confident and involved learners
• effective communicators

Physical, cognitive, linguistic, social and emotional development are all given equal terms in this directive. As a childcare centre owner, it is important that you have a solid understanding of how you intend to deliver these core elements of learning.

Can you ‘be present’?

Ensure leadership to your families and staff by being available to them.    Build relationships with local businesses whose employees may need your services.

Nurture positive relationships with your community by having open days and organise events, shows, or trips to local museums and parks. You will realise that adding a personal flair will be the key to your childcare centre’s success.

Business Buyers Appraisal Package

Are you about to Buy a business?  Have you found a particular business you are thinking of making an offer on?

Purchasing a Buyers Appraisal package will provide you with expert advice on the process. A small investment today may save you thousands of dollars and grief later if you have not taken the right precautions.

An experienced broker will review the financial information and other documents you have been provided with.  You will be advised what further documents you should be requesting to see, and what steps you should be taking before and after you make an offer.

The package includes the following:

• Analysis of Financial info e.g. Profit & loss statements/Add-backs
• Perusal of lease and any recommendations in regard to items that should be addressed in contract e.g. additional lease terms, inclusion of ROE etc.
• Review of Schedule of Franchise agreement if applicable
• Review of employees – numbers, conditions of contract to be considered
• Suggested conditions of contract
• A recommended offer price
• An Appraisal document with the pros and cons of the business, along with suggested offer price and the market value based on current market conditions and industry knowledge.
• A complete series of emails sent every two – three days with detailed information on the process of Buying a business in Australia.
• Full version of e-book “Don’t Lose Your Shirt”
• Tips and things to look out for when buying any business

The document is an appraisal, it is NOT a valuation. It will provide a suggested offer price based on the opinion of Angela Williams, a Business Broker with 16 years’ experience.

The price does not include the following:

• Writing of conditions of contract
• Providing Contract of sale
• Due diligence of financial accounts

The recommendations will be based solely on the information provided. It is the Buyers responsibility to consider the information in the appraisal document, to evaluate and act on, if they chose to.

The review of any legal documents will focus on whether they include or do not include normal commercial business requirements e.g. ROE. Whether fees/rent are reasonable within normal commercial terms.

Upon receipt of all documentation requested to complete appraisal, the appraisal will be provided within two business days.

To proceed – please email angela@advancebusinessbrokes.com and you will be sent an invoice for payment.   50% due prior to work commencing and balance prior to receipt of final appraisal document. 

Mobile:  0416 109 017

Business Broker:                                           

Angela Williams Principal/Licensee

Advance Real Estate & Business Brokers Pty Ltd

Lic No. 63767

Advance Business Brokers accepts no responsibility for the authenticity, accuracy or undisclosed information that is provided or not provided by the Buyer.

Advance Business Brokers (AU) does not make any representations or warranties, expressed or implied as to the accuracy or completeness of this information.  Nothing in the report that will be provided should be relied upon as a promise or representation to the future.  The information will be based on certain assumptions and management analysis of the information provided at the time the report was produced.

The Buyer accepts and agrees that any offer on a business put forward as a result of this appraisal is solely their own decision.  Any failure to secure a business as result of the offer being declined or outbid can in no way be attributable to Advance Business Brokers.

It is at the buyer’s discretion to submit offers and negotiate same.