The Beal Business Advisor

September 2015

Contact Number: 204-478-7266

In This Issue

Closed Transaction
Buying a Business - Cash
Selling your Business - Myths about Selling your Business (Part 2)
Question of the Month - Social Media Marketing Suggestions to Grow Your Business

Closed Transaction

Cafeteria Business

The Undersigned Has Acted as an

Advisor to the Vendor

Beal Consultants

Steven Beal, MBA, CGA, CFA, CBV, CBI

204-478-7266 ext. 109

www.bealconsultants.ca

Cash

As discussed last month financial statements, this month we want to discuss the first item on the balance sheet, that is, cash.

Typically, cash is not transferred during a business sale. In an asset sale, the owner keeps his corporate entity, and all bank accounts, plus cash. Even in a share sale (when the buyer takes over the legal entity), the cash balance is typically stripped down to a nominal amount.

This is done for a number of reasons:

The buyer doesn't want to pay extra for cash
The vendor may be obliged to pay a commission on cash
There are often tax consequences when taking cash out of a company, and a buyer doesn't want to inherit that liability

There are, however, situations where cash has to be left in the company:

Where clients have paid deposits that remain as liabilities of the company
Where there is a working capital deficit without the cash

Next month we will discuss accounts receivable.

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 four months, we have been 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 speak with 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 have plenty of cash 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 (see buy-side series this month), or perhaps a competitor who is looking to grow through acquisition.

Yes, it happens. However, there are two key issues for you: 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).

If you are interested in discussing succession planning for your business, contact us at 204-478-7266x110.

Current Businesses for Sale

Coffee Shop Franchise (NEW)

Winnipeg Auto Repair Shop

Farm Parts & Recycling Business

Profitable Lodge

Auto Parts, Service and Recycling Business

Winnipeg Construction Company

Profitable Winnipeg Automotive Services Center

Franchised Fitness Facilities (Conditionally Sold)

Rural Automotive Repair Shop Location

Carman Property

Electrical Contracting Business

Restaurant Business (Conditionally Sold)

Fitness & Weight Loss Facility

Winnipeg Tailor Business

Franchised Food Retailer - Franchise

Franchise - Tanning Studio

Small Town Dollar Store

Winnipeg Convenience Store (Conditionally Sold)

Winnipeg Convenience Store

Thompson Hotel and Restaurant

WOW 1 Day Painting Franchise

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

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

"You have to learn the rules of the game. And then you have to play better than anyone else"

Albert Einstein

Using social media to market my business seems like a good idea, but I find social media a bit overwhelming and I find myself a bit time-strapped as a small business owner. What are your suggestions to using social media to market and grow my business?

Social Media can be a powerful tool for small business owners to communicate with customers and to create buzz about the products or services offered. Wading into the fast movie flow of social media may be daunting to a small business owner, but can prove to be very beneficial as it gives you the opportunity to reach a sizeable number of people on a small budget, making it an ideal marketing tactic for many small business owners.

The main benefits to social media for small business owners include:

It is a cost effective way to market your business
It helps to create exposure and build brand reputation
It can help you to connect with key people in the industry
It provides valuable feedback and consumer insight

Social media has exploded over the past few years, and as a business owner you can use this to your advantage. There are several different types of social media you can use and various ways to utilize these sources to market your business. The social media world is a very broad one and there are many options available from which to promote your business.

Social Networking Sites

Social networking sites are growing in popularity daily, which is a trend small business owners should not ignore. This includes sites such as Facebook, Google+, and Linkedin. As a business owner you should take advantage of these FREE sites and view them as a cost-effective way to create exposure for your business, reach your target market, and attract new customers. In order to utilize social networking sites, you can use them to offer discounts or coupons, and can upload pictures, videos, or post links at upcoming events or promotions.

Blogging

This includes traditional blogging, micro-blogging, and vlogging. Blogging can be an effective way of let people know about your business on a more casual and personal level. You can blog about what your business has to offer, new products, ideas, and upcoming promotions. You can learn what the public likes through comments and feedback, gaining valuable feedback on your products or services offered.

Micro-blogging, includes social media tools such as Twitter, which can be one of the most difficult tools to master, but can prove to be a valuable marketing tactic. Twitter has proved to be a very valuable contact tool for small business owners. It allows you to get your business name out there, and use your Twitter contacts to spread the word about your business, ultimately building up your business and its reputation.

Video blogging, most commonly referred to as vlogging, is a great way for people to view content, and a great way for you to visually show off your company's products or services offered. Popular video sharing websites include YouTube and GoogleVideo, which are both rapidly growing in popularity.

In conclusion, if your company does not have a large marketing budget social media can be a great, inexpensive way to promote your business.

Call us at 204.478.7266 x110 if you would like us to help you write a business plan.

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 to book a free, initial 30-minute consultation to explore how we can help you buy, sell, value or improve your business.

Legal

Copyright 2015 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.