Touchstone Business Advisors
September/2008
News From Touchstone Business Advisors
 
From time to time, Touchstone has new business listings, changes to existing listings or important new developments, which are first previewed to those valued clients, who have previously expressed an interest in a business acquisition or sale.  If you have a business associate who would be interested in hearing about our services, listings and receiving our articles, please forward this newsletter and they will be able to sign-up for future notices.  You can also keep abreast of these changes and download NDA forms and business profiles on our website:  www.touchstonebiz.com
New Listing:  Women's Fitness Franchise Store...Established Location & Growing Membership!

Turnkey opportunity to own the #1 Women's fitness franchise territory and club - within a high traffic Northeast Denver location, growing membership and upscale surrounding community.  The club was opened in 2004 by a multi-club absentee owner.  In mid-2006, the current owner acquired the club, which was loosing members from the neglect of the absentee owner. The current owner remodeled the club's appearance and has effectively worked to grow the membership to over 200 active members.  The beautiful 1200 sf facility is efficiently designed, in excellent condition, has 13 stations, all upgrades with Smart equipment and computers. Other assets include Go Figure club management system and all necessary computers, stereo system, furniture and equipment.  Existing lease has a 5-year renewal option.  Territory potential exists to double membership within existing facility.  Curves franchise in this area is only available through a re-sale.  Increased advertising would boost membership.  There is also opportunity for an owner-operator to introduce the Curves weight loss program and other enhancements to boost revenue.
Update on Other Touchstone Listings:
(see www.touchstonebiz.com for detailed information)

Breckenridge Restaurant/Bar                 Sold
Commercial Painting Company             Sold
Niche Software Company                      Sold
RV Rental Company                              Contract       $  275,000
- Stable Revenue Model, Perfect for         Pending
 the Current Economy
Niche Manufacturing Company             Active          Negotiable
- Established Products with Patents 
Truck Repair/Maintenance Company     Active          $  750,000
- Full Service Facility & Mobile Service
Jewelry/Art Retail Store                         Active          $  275,000
- Great location, Sales Increasing

Day Spa and Salon                                Active         $    75,000
- Great Value and Upside Opportunity  
2008 Volume: 9
In This Issue
New Listing: Women's Fitness Franchise Store
Update on Other Touchstone Listings
"Cash is King" - Ways to Increase Cash Flow
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 "CASH IS KING" - Ways to Increase Cash Flow
             
Cash flow is the key to creating sustainable value in a company.  It is also a key metric that buyers will and should evaluate when considering acquisition of a company.  What is cash flow and how is it measured?   
 
CASH IN - CASH OUT = CASH FLOW
 
Owners should have an accurate measure of cash flow monthly and be able to project it at least 12 months out, thereby avoiding the pitfalls of running low on cash.
 
Companies that have effective management utilize the following methods to increase cash flow:
 

1. Keep accurate and organized records;
2. Collect money and fees upfront whenever possible;  
3. Focus on collection of Accounts Receivable;
 4. Audit all expenses annually;
5. Negotiate terms for supplier and vendor debts;
6. Examine the necessity of all direct employees; 
7. Review and sell obsolete capital assets;
8. Reduce discretionary spending;
9. Manage Inventory and transportation costs.
  
Charles Spickert, MS, MPH, CBI
Touchstone Business Advisors
(303) 278-7501 phone
(303) 278-7431 fax
cspickert@touchstonebiz.com