The Beal Business Advisor

December 2013

Contact Number: 204-478-7266

In This Issue

Buying a Business - Notes Payable and Mortgages Payable

Selling a Business - Training Your Successor

Question of the Month: I Think I Could be Interested in Being my Own Boss, but I am not sure What Type of Business to Buy, What Should I Consider?

Current Businesses for Sale

Upcoming Seminars

Buying a Business - Notes Payable and Mortgages Payable

Last month we discussed accounts payable and other accrued liabilities, this month we want to discuss notes payable and mortgages payable. Key items to review include:

Obtain a schedule of notes payable and mortgages payable.
Determine the terms and payment schedule.
Will the acquisition accelerate the note or mortgage or is there a prepayment penalty?
Determine if there are any balloon payments to be made and the amounts and dates due.
Are the notes or mortgages assumable?
Have personal guarantees been provided?

Next month we will discuss discretionary costs and perks & benefits.

In the meantime, if you would like more information on buying a business, contact us at 204-478-7266x110.

Selling a Business - Training Your Successor

Last month we discussed on financing your exit strategy. This month we will focus on the importance of training your successor.

Once you have found a successor (from the family, management, or externally), it is vital to train the successor as long as possible and with as much detail as possible. You have had perhaps 20+ years running your business. You've forgotten more important facts about the business than the new person will even know. You know people - customers, suppliers, employees. They know you. You know the business history. You know what works and what doesn't. All of this knowledge has a lot of value - this is what is referred to as the goodwill of the business. If your successor is an external buyer, he is paying you (handsomely, we hope!) for all of this inside information. Make sure it is all documented and passed on as best as possible.

We are big fans of documented business processes. Nothing makes a business more valuable than having a well-documented, well-run operation. But even more valuable is the vast amount of informal information an owner possesses that can never be documented - and the decision-making ability that informal knowledge provides. Make sure you allow for enough time to properly train your successor.

Next month we will focus on structuring a deal to ensure retirement income.

If you would like more information on selling or valuing a business, contact us at 204-478-7266 x110.

Current Businesses for Sale

Hair Salon - NEW

Florist Shop

Indoor Tanning Studio

Small Town Dollar Store

Winnipeg Meat Shop - Grocery Store

Weight Loss Clinic

Bridal Shop

Metal Fabrication Business

Successful Restaurant Location

Print and Online Publication - Business Opportunity

Employment Service - Franchise Opportunity

Small Town Grocery Store/Meat Shop

Seasonal Contractor - Price Reduced

Frozen Food Distributor

Automotive Repair and Power Product Dealership

Fast Food Sandwich Franchise

Breakfast & Lunch Restaurant

Construction and Renovation Company

Trucking Company - NW Ontario

Rural Restaurant and Convenience Store

Winnipeg Convenience Store

High Volume Retail Chain

Thompson Hotel and Restaurant

Prepared Fine Foods - Catering, Wholesale, and Retail

Addiction Treatment Center

Marine Dealership and Services - Saskatchewan

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To review any of these business profiles, please click here .

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We do not advertise all of our listings to the public.

If you have a specific type of business in mind,

please call 204-478-7266 x110 to inquire!

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Upcoming Seminars

Learn to be Profitable! Pricing & Costing

January 21, 2014

1:00 p.m. to 4:00 p.m.

Canada/Manitoba Business Service Centre

Room 250-240 Graham Avenue

Call 204-984-2272 to Register

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Introduction to Income Statements

January 23, 2014

1:00 p.m. to 3:00 p.m.

Canada/Manitoba Business Service Centre

Room 250-240 Graham Avenue

Call 204-984-2272 to Register

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Introduction to Balance Sheets

January 30, 2014

1:00 p.m. to 3:00 p.m.

Canada/Manitoba Business Service Centre

Room 250-240 Graham Avenue

Call 204-984-2272 to Register

Quick Links

CMBSC Seminar Registration
Chamber of Commerce Website

Beal Consultants Website

Quote of the Month

"When I Dare to be Powerful - to use my strength in the service of my vision, then it becomes less and less important whether I am afraid"

Audre Lorde

Question of the Month:
I Think I Could be Interested in Being my Own boss, but I am not sure What Type of Business to Buy, What Should I Consider?

Many people dream of owning a business to be their own boss, have job security, control their hours, build equity and many other reasons. In order to narrow your focus in your search, you will need to ask yourself some questions.

What are your strengths and weaknesses? Are you good at sales? Operations? Supervision? An honest look at your personal strengths and weaknesses is the first step at determining what type of business would be a fit. If you hate sales, don't consider a sales orientated industry, or ensure there is room to hire a salesperson
What is your background & experience?
What size of business do you want? How many employees?
What level of investment and risk are you comfortable with?
How many hours/week do you want to work?
What level of income do you want to make? Keep in mind business owners are often underpaid for the amount of time they put into the business.
Do you want to be the manager or hire someone?
What do you enjoy? What makes you passionate?

Once you have answered these internal questions, it will help narrow your focus and make the business search that much smoother.

For more information, contact us at 204-478-7266x110.

About Us...

Beal Business Growth Consultants, Inc. helps owners of small and medium-sized businesses to buy, sell, value, and grow their businesses. We also work with individuals who are looking to buy or start a business or franchise.

Call us at (204) 478-7266 x110 for a free, initial 30-minute consultation to explore how we can help you buy, sell, value or improve your business. .

Legal

Copyright 2013 by Steven Beal, Beal Business Growth Consultants, Inc. The information herein is not complete and is intended only to provide guidelines to supplement counsel the reader receives from a qualified professional. It is distributed with the understanding that the author is not rendering legal, accounting or tax advice or opinions on specific facts or matters, and accordingly, assumes no liability in connection with its use.

Published by Beal Business Growth Consultants, Inc.