There are a number of factors to consider when selling your business, one of the most important being how much you would like to sell your business for.

Selling your business can be a challenging task, so it’s important to get it right. Here are some suggested steps to guide you through the process.

1. Make sure selling is the right decision

If you’re thinking of selling because of financial problems or because you find it hard to comply with government regulations, consider whether getting help or advice might put your business back on track.

You’ll also need to consider how selling your business will affect your personal and financial circumstances.

Read our deciding whether to sell or close page to find out what help is available, and to make sure you’ve considered everything.

2. Decide whether to use professionals

Consider using a reputable business broker or other professionals to help you sell your business, because the process can be time consuming and complicated.

Business brokers are professionals who specialise in buying and selling businesses. They can help you understand legal and government requirements and make the process of selling your business less stressful. The services of a broker may also not be as expensive as you think. Find out more from the Australian Institute of Business Brokers.

As you’ll need to provide your broker or other professional with quite a lot of information about your business, make sure you check the professional’s credentials to ensure they’re reputable before using their services.

3. Value your business

Valuing your business is about working out how much your business is worth so you can set the right price when selling.

Read value your business for some common methods of working out the value of a business. This may include assessing the value of your assets, estimating future profits and working out how much the goodwill that you have established is worth.

4. Find buyers for your business

You can advertise the sale of your business to potential buyers through a number of methods, including:

• business brokers or real estate agents
• advertising online
• your existing networks (e.g. family, friends, or employees)
• advertising in the newspaper
• advertising in trade publications or using your industry contacts
• word of mouth
• notifying customers of your sale (as long as you’re confident it won’t harm your business if your customers know you’re looking to sell).

The way you advertise will depend on your business type, industry and contacts.

Check whether there are any requirements in your state or territory about what information you need to give potential buyers.

For example, if your business is in Victoria and is being sold for less than $350,000, you must provide a Vendor’s Statement (or Section 52 Statement) to all potential buyers. This statement gives recent financial information about the business and should be provided by your accountant.

5. Negotiate the sale

When negotiating the sale, make sure the information you give about your business is accurate and true. If you say anything or provide information that is later found to be untrue, it may be considered misleading or deceptive behaviour.

You’ll need to agree with the buyer on a range of things, including:

• the sale price
• the deposit amount (usually 10% of the sale price)
• the settlement period
• handover training (if any) for the buyer
• arrangements for existing staff.

You may need to compromise on some things to get the best outcome. For example, if you’re keen to settle quickly, you could encourage the buyer to agree to this by offering a lower sale price.

6. Prepare the contract

Generally, an intermediary draws up the sale contract (except in NSW where a solicitor does it). Most small business owners will ask a solicitor to review the contract, and the contract will also be checked by the buyer’s solicitor.

Solicitors should check that the contract doesn’t include any false statements, and covers all aspects of the sale, including:

• all the relevant assets that are being transferred, including property, equipment, fixtures, fittings, stock, and any rights to use any names
• all the relevant liabilities, including creditors (people or businesses that your business owes money to) and the lease of the business premises
• responsibility for employees and employee entitlements, including whether employees are to be transferred with the sale (if the new owner isn’t an ‘associated entity’ – related to the old business in some way – they don’t have to recognise some entitlements)
• statements about what will happen if any issues arise (for example, the buyer decides not to proceed, inaccuracies are discovered in the contract, etc)
• any restrictions on trading in your profession after the sale (to prevent you from competing directly against the new owner).

Find out more about documentation when selling a business on the Business Queensland website.

7. Take care of your employees

When you sell your business, your employees may either:

• transfer with the business to the new owner, or
• end employment with the business.

It’s important to communicate with your employees and let them know whether they’ll be transferring across to the new owner or ending their employment due to the sale of the business.

In both cases, a transfer of business ends an employee’s position with you, the former employer, so you must give your employees notice of ending employment or provide payment in lieu of notice.

When employees transfer with the business, you’ll need to give all relevant employee information to the new owner. There are some employee entitlements that the new owner must recognise and others that the new owner doesn’t have to recognise.

Find out more about Employees and selling or closing your business.

8. Deal with legal matters and tax implications of the sale

Consider any insurance requirements for your business, such as run-off cover (where you are insured for any legal claims that are made after you sell your business).

Also consider whether Capital Gains Tax (CGT) and Goods & Services Tax (GST) applies to the sale of your business. For example, if your business is registered for GST, you may need to include GST in the price of individual business assets or repay GST credits.

If you are selling a small business, CGT concessions may be available.

If you cannot pay your taxes on time, you may be able to get help through an ATO payment plan.

Find out more about taxes when selling your business on the ATO website.

9. Transfer your business to the new owner

Once your business is sold, you’ll need to transfer your business to the new owner. This includes:

• transferring leases, licenses and permits
• finalising tax returns, activity statements and instalment notices
• cancelling your ABN and transferring or cancelling your business name.

Find out more about what you need to do when changing ownership of your business.

10. Look after yourself

Selling your business can be an emotional time. After all, you’ve probably put in countless hours, money and energy.

It’s important to know that there is assistance available. These include:

• financial advice through the MoneySmart website, to help you take care of yourself financially
• career advice through the myfuture website if you’re looking for a new career direction
• employment assistance through Australian JobSearch, if you’re looking to find a job.

The Department of Human Services can also offer employment and financial assistance.

Childcare Snatches Star status

Why buy a Childcare Centre?

Exponential rental growth in childcare assets is outstripping that of all other property sectors, creating a new “golden child” of property investment and prompting a rash of research.

It was declared that childcare centres are Australia’s fastest growing commercial real estate investment class, underpinned by the fact that the economic benefit of workforce participation far outweighs the costs of funding assistance for childcare

Also, most of the federal Government spending in this sector, tipped at $8.8 billion in 2018-2019 and $10 billion by 2019-2020, was paid directly to childcare operators, ensuring operators can pay the rent.

Reason why childcare should be at the top of every  investors wish list

• With sharp yields in the current low interest rate environment and excellent lease conditions, childcare centres are Australia’s most desirable new investment class.
• Demand to purchase is high as both local and interstate investors can see the value and attractive yields still on offer
• Childcare assets have a greater ease in obtaining financing, than say service station business and other service businesses
• Childcare centres were seen as higher-yielding lower risk investments, creating a “ growing pool of buyers hungry for childcare business and property investments”
• The long term need for childcare across Australia adds urgency and interest to this somewhat new asset class

{Source:  The West Australia}

HOW TO BUY A BUSINESS AND KEEP YOUR NEW EMPLOYEES HAPPY……..Your employees are the lifeblood of your business and a happy workforce is a productive one. Here’s our advice on building strong relationships with your new team.

Buy a profitable business and – unlike when starting one from scratch – you’ll have an income from day one.

But you’ll also inherit a workforce – one which you’ve played no part in hiring (again, unlike a start-up).

If this makes you anxious then you can expect apprehension on your new employees’ part too. They’ll be wondering if their jobs are safe, whether their roles will change and how you compare to the previous owner.

Here’s some tips on buying a business and building strong relationships with your new team.

Respect the business’s strengths

Avoid changing things for change’s sake or because you feel compelled to stamp your authority on the business. By all means change things that aren’t working. And identify what the business does well and build on those strengths.

But abandon the processes and products that helped it thrive in the first place and you’ll alienate your new staff.

Assess existing staff

However much you seek to foster a harmonious, rewarding working environment, some staff may simply not feel comfortable with the new regime and the changes you make. Some may leave quickly, solving the problem for you.

Should they stay on, begrudgingly, and resent the business’s new direction, then you may need to take a tough decision. Offering redundancy might be expensive, but it could be a lucrative way out for them and a salve for overall employee morale (though there are, of course, conditions you must meet to make people redundant legally).

Foster a sense of ownership in employees

Building a strong connection between the workforce and the company can ensure that workers recognise they are more than just cogs in the machine.

Engage with staff, seek their views on how best to take the business forward – and heed their advice. This isn’t just an exercise in charming your new employees; after all, having worked there much longer, they will understand the business better than you.

This open engagement should extend beyond the products or services to business practices and policies.

Open two-way communication will flag up issues before they become problems and nip resentments in the bud.

Set expectations

Employees should have a clear understanding of what is expected of them.

To this end, consider introducing a periodic performance review for each individual, if such a system isn’t already in place. The review should assess their performance in reference to meeting pre-established goals – for example, targets for output, sales figures and so on.

Some staff might not like it, but it at least gives them fair chance to rectify any problems and offers the motivation of a clear pathway to promotion and financial rewards.

You should also encourage them to air their own thoughts – positive and negative – about their own progress and that of the company. This gives both parties a chance to improve performance and the employee-employee relationship.

Show appreciation

It’s vital to recognise and reward strong performance. If, say, the company has a good track record for handling enquiries, it’s worth drawing attention to it and identifying those responsible.

Showing appreciation doesn’t just mean material rewards – though some combination of bonuses, pay rises and other perks (such as an extra day’s holiday or gift vouchers) are obviously necessary incentives. Verbal praise is an often underrated form of reward.

The performance reviews offer the ideal framework for judging when recognition and rewards are merited.
Create socialising opportunities

One way of showing appreciation, while also promoting company cohesion, is providing plenty of opportunities for socialising.

Informal get-togethers beyond the pressures of the work environment – and yes, aided sometimes by alcohol – can be enormously helpful in cementing budding friendships and cooling animosities.

{Source – www.businessesforsale.com}

How to be a Successful Cafe Owner

**This article is based on a chapter titled Attributes of a Successful Cafe Owner from Craig Reid’s book The Complete Guide to Buying a Cafe. You can purchase Craig’s helpful books on his website www.thecafeninja.com

Are you thinking about buying a cafe?

Cafes can be highly profitable businesses, but many enter into the game with little foresight into what it actually takes to run a successful cafe.

It’s not the light-hearted movie scene.

Running a cafe takes hard work, determination, and high-level people skills. Plus, you have to factor in things like location, market research, etc.

If you’re thinking about buying a cafe, you’ll need to get a good grip on your strengths and weaknesses. Management style is everything, and it will determine how employees, customers, and vendors interact with you and each other.

We love Craig Reid’s book The Complete Guide to Buying a Cafe. So, we’ve taken some snippets from his chapter on what makes a cafe owner successful to help you determine if it’s the right path for you.

Check out the following questions and see how you measure up.

Are you an organised person?

Running any successful food and bev operation requires a high level of organisation. And time management skills are critical in a good cafe business owner.

Why?

You need to make sure your vendors and staff are paid on time. You need to make sure you have sufficient supplies to get you through each week, each day. There are obviously numerous other day-to-day tasks involved like advertising and even resolving employee disputes. All of these require organization and time management skills.

If you don’t necessarily have amazing organizational skills, but you know the right tools to help you stay focused and productive, you are on the right track. As long as you can channel your duties into some sort of organized format, you’ll make it in the cafe business.

Plus, cafe financials are not as simplistic as you might think. In order to cope with the various accounts and monies constantly up in the air, you’ll want to make sure your numeracy skills are superb.

If they’re not, it doesn’t mean you necessarily shouldn’t own a cafe. It just means you’ll have to get your hands on the right tools and perhaps, the right people (hire an accountant, for example) to make sure you have a consistently good grip on the financial state of your business.

Are you a people person?

This one’s a biggie.

Probably the most important facet of your life as a cafe owner is your relationships with your customers and your employees. The people skills of an owner can transform a struggling business into a success or sink a ship. It all depends on you.

It doesn’t matter how amazing your coffee is, how great your sandwiches taste.

If people do not enjoy coming into your space, if they don’t feel welcomed by friendly faces, your business won’t last long.

As a cafe owner, you’ll need to know how to deal with problem customers. You’ll either know (or learn) how to make sure everyone leaves happy, regardless of the issue that has arisen.

Same goes for employees.

Creating a positive environment for your employees will greatly impact your bottom line. When people are happy at work, it shows. That pleasant attitude extends to customers. People can feel it.

Part of being a people person is knowing how to cultivate meaningful relationships with others. If you can do that in a business setting, this just may be the path for you.

Are you a strong person?

We’re referring to both physical and mental strength here.

The food and bev sector requires old-fashioned manual labor. Even though you would technically be in an ownership position, make no mistake —  you will be engaging in physical labor.

Customer service in a cafe is physically demanding. You’ll be on your feet for large amounts of time helping customers in the front of the house. And in the back of the house, cleaning and organising heavy boxes of produce, supplies, etc. will require physical strength and endurance.

Of course, you don’t have to be a marathon runner. But you need to be reasonably healthy and physically strong enough to endure the lifestyle of a cafe owner.

On to the mental side of things.

You’ll come across a generous amount of stress as a cafe owner. When things get busy, you’ll be under pressure to perform at lightning speed while still maintaining quality. When things slow down, perhaps seasonally, you’ll need to be able to deal with less revenue and making your money stretch.

If you are reasonably good at dealing with stressful situations, you’ll fare well.

Are you good with IT?

Admittedly, you’re not required to be an IT expert. But in order to run a successful cafe, you’ll need to at the least be IT literate.

Unless your cafe is in the jungles of Costa Rica with limited customers, you and your employees will probably be using software for your transactions.

These software packages simplify and organize your daily transactions for you. But you need to know how to use them proficiently!

The more adept you become at using your software, the more you’ll be able to have a good grasp on the daily financials. No call to the accountant needed.

You’ll also save money.

Wireless communication via the internet is cheap, and if you can get a good social media following, you won’t have to spend as much on marketing.

At the end of the day, you don’t have to be a tech whiz. However, the more you know about technological tools like certain software and social media, the more you’ll be able to leverage them to make running your business easier and more profitable.

Bottom Line- Which role makes the most sense for you?

So, you’ve made it through the questions and feel confident you have what it takes to run a successful cafe.

Congratulations!

Now you can move on to the more fun stuff. But first, try to get a handle on what role(s) will make the most sense for you.

If people skills are your strongest suit, staying at the front of the house and dealing with customers is where you should be.

If you’re really good with tech, be the one who finds the new tools, posts on social media, and trains employees how to use the latest and greatest tech goodies.

In areas where you are weaker, this is where you’ll need to delegate. Get a good group of people around you with various strengths, and you’ll be on your way.

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.

5 Tools to Help You Increase Your Productivity

As business owners, we work for ourselves. There is no one to hold us accountable for the work we have to accomplish everyday — no one except for ourselves.

Productivity is the lifeblood of a successful business AND a successful business owner. But with a world full of digital distractions, it’s becoming increasingly difficult to keep productivity on track.

In fact, a recent survey of UK office workers found that out of the typical eight-hour workday, the average employee only truly ‘works’ around three hours. That’s a pretty staggering statistic.

Whether you work four hours each day or eight, it isn’t how much you work, but rather how efficiently you manage your time. In other words, it’s all about productivity.

Business owners need all the help they can get to keep productivity high. That’s why we’ve compiled a list of our Top 5 Tools to Help Increase Your Productivity.

1. Stop trying to remember all your passwords.

We recommend this #1 brain hack for everyone, even those not running their own business.

These days we need a password for everything, from ultra-secure platforms like online banking to free subscriptions to digital news media.

You can do that thing where you create one password for everything. But of course, there are two major problems with going down this path. One, it’s not secure. AT ALL. And secondly, many financial institutions and other platforms involving currency exchange force you to change your password every so often, anyway.

To be more productive, start by not stressing about your passwords. There are three easy-to-use apps that will keep them all securely stored for you.

Our top pick is LastPass. It’s highly intuitive to use and conveniently will pop up everywhere you need it to. LastPass offers a free desktop option that is well suited for average Joes, but for business owners who have to wear more hats, we recommend the premium option. It’s just $12 a year! Premium has improved security, mobile capabilities, and even more memory for even more passwords. The app has awesome features such as auto-password changing if it detects one of your accounts has been hacked.

At $12 annually, every business owner can certainly afford it. And of course, write it off!

Runners up in the category are KeePass and 1Password. People love these apps too, so feel free to give them a go.

2. Bring in the digital task managers.

Want to make your daily to-do list more efficient?

Bring in the digital task managers.

These are really glorified to-do lists, but what makes them different is their ability to be shared digitally. You can send daily duties to multiple employees, and they can then provide input when tasks are accomplished. Digital task managers are excellent tools to keep you and your team on the same page.

The most basic and easy to use is Wunderlist. It’s totally straightforward: a to-do list everyone can learn to use in a matter of minutes. Share your lists among specific groups and organize everything into files of your choosing. Wunderlist is a favorite of students and families, not just business owners, for its intuitive interface.

For more advanced platforms to manage multiple lists and people, Basecamp and Hitask will be a better bet. These are more in-depth solutions that enable you to assign, organize, and manage people and tasks. In addition to the to-dos, you can exchange files between users, share calendars, and coordinate on projects. These are better solutions for managing bigger teams or more complicated employee structures, like multiple freelancers or contractors.

3. Bring in the digital finance managers.

Perhaps one of the most important productivity tools is one that helps you manage your business finances. Not everything can be left to the accountant. As a business owner, it’s crucial that you have a constant grasp of your financial state.

With these online budgeting tools for business, you can keep your grip on your finances without asking the bookkeeper.

We recommend FreshBooks and Expensify to start. Freshbooks is a comprehensive solution for small businesses (less than 50 employees). It will help you manage your invoices and expenses in an intuitive format that’s easy to use and understand. And their stats are impressive — customers apparently double their revenue within the first two years of using the app. Talk about productivity hack!

Expensify is a more simplistic platform. It has less capabilities but will work great for businesses with just a few employees or less. Expensify will manage all your receipts, invoices, expense reports, etc. so you can waste less time on mind-numbing paperwork.

If you want a totally comprehensive budgeting software, start out at Capterra. The site will help you compare multiple business software products according to your budgets, your needs, and the size and scope of your company. It’s a great place to start, especially if you’re looking to shell out more cash on serious budgeting solutions.

4. Take your CRM digital.

Effective Customer Relationship Management (CRM) is critical to keeping any business afloat, let alone successful. Keeping up with sales, customer interactions, marketing, and IT is no easy feat.

Don’t try to create a system yourself. And don’t hire someone to do it, either.

Instead, try an efficient CRM software that will organize every level of your sales funnel and keep you and your employees focused on more important things. Minimize miscommunication between employees and customers, and say hello to more productivity every week.

Our top picks are Zoho and Colabo. Neither are free, and no CRM software worth its weight will give away the goods for free. Zoho is more of a broad solution that organizes your sales trends and cycles. It’s easy to use and great for small businesses.

If you already use CRM software but want to up your game, then Colabo is the choice for you. Colabo gives you more targeted solutions and is highly rated among large and small businesses alike.

5. Efficiently store your files. Digitally.

Just because we’re storing everything online doesn’t mean we are any more organized than the days of the file cabinet.

And depending on the way you, your customers, and/or your employees are sharing files with one another, you could be wasting precious time.

You need to be able to share files rapidly and securely. For free.

Hands-down the best option out there is Google Drive. Google Drive offers you an immense amount of storage, intuitive organization, and lets you share files securely, the way you want to share them, (read-only, etc.) in seconds.

Dropbox is another great option, but Google Drive is definitely the one most people are using.

If you want a higher level of security for your team and deal a lot with sensitive information like financial records, we recommend getting your team set up with Huddle. Huddle isn’t free, but it’s affordable. Depending on the nature of your business, it may be the best option.

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.