The Beal Business Advisor

August 2014

Contact Number: 204-478-7266

In This Issue

Upcoming Seminars
Buying a Business - Marketing
Selling a Business - Myths About Selling Your Business (Part 2)
Question of the Month - Product Pricing Suggestions
Current Businesses for Sale

Marketing

Last month we discussed insurance, this month we want to discuss marketing.

Some of the key questions you want to explore with any business include:

- Are any of the products proprietary?

- Describe any new upcoming products and projected sales.

- What is the business' geographic market area?

- What is the business' percentage of market share?

- What are the business' competitive advantages/disadvantages?

- What are the current market trends?

- Is the business name registered?

- Is there a customer list or database?

Next month we will discuss competitors.

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

Myths about Selling Your Business (Part 2)

Myth #2 "Manna from Heaven"

Over the next few months, we will be talking about the five most prevalent myths amongst business owners when they think about selling their business. Last month, we talked about doing it yourself. This month, we want to talk about the "manna from heaven" myth.

I talk to a lot of owners who just assume there is a large pool of buyers out there for their business, and they further assume the buyers are rich and will pay top dollar for their business. Many times, a business owner says to me "call me when you have a rich dumb buyer, and then we'll talk." [well, they may not use those precise words, but you get the sense of what I mean.] What they are really hoping for is a synergistic buyer, perhaps a competitor who is looking to grow through acquisition.

Yes, it happens. However, there are two key issues: it may not happen in your industry, and it may not happen when you want it to. If you are serious about retiring, or selling your business, you need to take action - not wait for a call out of the blue (that may or may not happen).

Next month's myth: - "I know what my business is worth"

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

Current Businesses for Sale

Window Installation Business (New)

Fitness Facility (New)

Winnipeg Tailor Business (New)

Electrical Estimating Service Business

Professional Services

Rural Restaurant

Electrical Contracting Business

Winnipeg Automotive Service Centre

Franchised Foods Retailer

Convenience Store (Northern Manitoba)

Winnipeg Catering Business

Winnipeg Pharmacy

Franchise - Tanning Studio

Small Town Dollar Store

Winnipeg Meat Shop - Grocery Store

Bridal Shop

Metal Fabrication Business

Specialty Building Product Retailer (Conditionally Sold)

Small Town Grocery Store/Meat Shop

Automotive Repair and Power Product Dealership

Trucking Company - NW Ontario

Plum Creek Gifts

Winnipeg Convenience Store

High Volume Retail Chain

Thompson Hotel and Restaurant

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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Quick Links

Beal Consultants Website

Quote of the Month

"Whenever you find yourself on the side of the majority, it is time to pause and reflect."

Mark Twain

I need help with my product pricing. I am finding that I am not making money off my jobs. Do you have any suggestions?

One of the key reasons for business failure is not properly pricing products and services. Business owners typically do not want to make their prices too high, as they fear they will "scare" away potential customers. Unfortunately, if you are not profitable, you will not be in business for very long. Besides, it is all about demand and price. Yes, you may lose some customers as you raise prices, but you probably should not have been doing business with them in the first place.

So, how do you perform product costing? You will need to determine the total fixed and variable costs as well as the volume of products (or number of service items) you can produce. Dividing total fixed costs by total capacity gives you the fixed cost per unit; the variable costs per unit (or per hour) should be easier to determine.

As you calculate your capacity (volume), ensure you factor in downtime (for machinery), holiday time (for labour), as well as a "buffer" for unproductive and other downtime (both labour and machinery). Your business will likely not be at 100% capacity all the time.

The sum of fixed and variable costs is the price you need to charge just to break even. Then, add a mark-up on top of this rate so that you see a profit!

To determine the total costs, be certain to include all variable (cost of goods sold) and overhead costs including capital costs, marketing, administration, office supplies, automobile, travel as well as your desired salary. Also, don't ignore depreciation of machinery!

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.