The Beal Business Advisor

January 2014

Contact Number: 204-478-7266

In This Issue

Closed Transaction
Buying a Business - Discretionary Costs & Perks and Benefits
Selling a Business - Ensuring Retirement Income
Question of the Month: How Do I Know if My Customer Service is Better Than My Competitors?
Current Businesses for Sale
Upcoming Seminars

Closed Transaction

Sandwich Franchise

The Undersigned Has Acted as an

Advisor to the Vendor

Beal Consultants

Steven Beal, MBA, CGA, CFA, CBV

204-478-7266 ext. 109

www.bealconsultants.ca

Discretionary Costs & Perks and Benefits

Last month we discussed notes payable and mortgages payable, this month we want to discuss discretionary costs and perks & benefits.

The income statement shows the profitability of a business over a period of time (monthly, quarterly, yearly). The profit and loss statements for the past 3 to 5 years should be reviewed, and attention must be paid not only to the profit, but also to the owner's salary, fringe benefits, non-cash expenses, and one-time expenses. Some time should be taken to review normal financial ratios (eg gross margin, net margin, etc), and other key issues.

Next month we will discuss financial ratios.

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

Ensuring Retirement Income

Last month we discussed training your successor, this month we will focus on ensuring you have enough retirement income to live on.

You've worked all your life to build your business. You've sacrificed a lot, investing your time, your money, and all your energy to build it up. You now want to sell it, but you are concerned how can you continue to live in the style to which you have become accustomed?

When you sell your business, there are many creative ways to keep your income and benefits even after you retire. Previously we talked about estate freezes. If you pass the business onto your children in this manner, you can take income in the form of dividends on your preferred shares. You can also have the company pay certain expenses, medical insurance, for example. There are a number of ways to remove your money in a tax-advantaged way.

If you plan ahead, certain insurance products can be paid by the company to protect you when you are older. There are also Individual Pension Plans (IPPs), which act like an RRSP, but can be tailored to meet your needs. Consult with professionals before you attempt any of these plans.

Next month we will focus on the importance of clarifying roles & responsibilities as you transition.

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

Current Businesses for Sale

Winnipeg Pharmacy - NEW

Convenience Store (Northern Manitoba) - NEW

Winnipeg Catering Business - NEW

Indoor Tanning Studio

Small Town Dollar Store

Winnipeg Meat Shop - Grocery Store

Weight Loss Clinic - Conditionally Sold

Bridal Shop

Metal Fabrication Business

Small Town Grocery Store/Meat Shop

Seasonal Contractor - Price Reduced

Automotive Repair and Power Product Dealership

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 - Wholesale and Retail

Addiction Treatment Center

Print and Online Publication - Business Opportunity

Employment Service - Franchise Opportunity

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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

"Success is about creating benefit for all and enjoying the process. If you focus on this and adopt this definition, success is yours."

Kelly Kim

I Take Pride in Offering the Best Customer Service Possible, and I am Certain I am Doing a Good Job, but How do I Know if my Customer Service is Better Than My Competitors?

Almost every small business owner thinks they have great customer service, but often customers have another side of the story to tell. If they are motivated enough they will contact management or post a review on an industry website. If you are in the food and accommodation industry there are plenty of websites that allow people to post reviews, however in other businesses customers have little resources to post and read reviews.

It is important to hear what your customers really think about your customer service, as chances are there are areas that you can improve (Besides, it's better to hear a complaint so you have a chance to fix it, than to lose a customer and/or a referral potential!).

There are several methods you can use to get your customers to give you feedback:

A follow up phone call or email.
An online survey through a form on your website or a tool such as Survey Monkey.
Anonymous comment cards
Hire a company that provides mystery shopping.

Often people provide feedback when they are really impressed or really disappointed. In order to encourage more people to provide feedback try offering an incentive program, such as a discount on next order, or an entry into a monthly prize.

In order to reduce survey drop off, keep your survey short and to the point and provide people with flexibility to answer questions (i.e. not every answer for a question is yes or no).

Once you implement a customer feedback system, the key is to Listen!

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 2014 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.