The Beal Business Advisor

August 2016

Contact Number: 204-478-7266

In This Issue

Buying a Business - Taxes
Selling your Business - Legal Issues when you are looking to Sell your Business
Question of the Month - Tips on Growing your Customer Base

Taxes

Last month we discussed patents, this month we want to discuss taxes.

The government will want a piece of every transaction you do - that's just the nature of the government and of taxes! The trick is to minimize overall taxes by structuring the transaction correctly, and by making sure you know what the tax situation is of the current company.

Specific questions you need to ask during due diligence are:

Are CPP, EI, GST, and Income Tax payments current?
What were the dates and the outcome of the last audit?

In terms of structuring, there are two basic ways to structure the purchase of an existing (incorporated) business: as an asset purchase or a share purchase.

If an asset purchase you (or a new corporation you set up) are buying all of the assets of the old corporation, including the "goodwill" aspects (name, client lists, etc.). In this situation, you will pay PST on the tangible assets you are buying (just like buying a used car) but not GST (if you sign an election with the vendor).

If a share purchase you can save the above tax BUT - and it is a big BUT - you will inherit all past tax liabilities (known and unknown) of the corporation. Consult with your advisors for details, or give us a call.

Next month we will discuss legal issues.

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

Legal Issues when you are looking to Sell your Business

As mentioned last month, this month we will focus on legal issues when you are looking to sell your business.

Caution: We are not lawyers. We are not dispensing legal advice. What we can tell you is how to use a lawyer effectively when you are looking to sell. Lawyers are like accountants: great at filling in the details when you paint a broad picture of what you want, but not good at painting the picture for you. You need to know some of what you want before you visit a lawyer.

Issues to consider: Are you selling shares or assets? Are you financing the buyer? How much? On what terms? If there is to be a transition period, how long? Are you granting the buyer the "right to offset?" Do you need to keep shares in escrow? If the business fails, can you step back in? Do you want to? If working on a family transition, are you ready to hand over ownership and control? (Using trusts, you can separate the two).

All of these are business and transaction issues that your lawyers and advisors can help you with, but can't make your decision for you.

Next month we will focus on financing your exit strategy. What should you do if the buyer asks you to help him/her buy your business?

For more information on the process of selling your business, contact us at 204-478-7266x110.

Current Businesses for Sale

Health Food Chain (NEW)

Seasonal RV Park (NEW)

Mexican Restaurant (NEW)

Winnipeg Auto Body & Repair Shop

Bathroom and Kitchen Retailer

Winnipeg Meat Shop

Specialized Property Management

Home Renovation Specialists

Transportation Company

Specialized Manufacturer

Rural Restaurant

Fire & Security Business (Conditionally Sold)

Metal Working Business

Indoor Tanning Salon

Winnipeg Auto Body Shop

Metal Manufacturing Facility

Cleaning Services Business

Winnipeg Electrical Contracting Business

BNI Manitoba Franchise - Conditionally Sold

Pizza and Chicken Restaurant

Transport and Event Planner

Home Improvement Business

Winnipeg Used Book Store

Seasonal Product Manufacturer/Contractor

Women's Clothing Store - Price Reduced

Franchised Fitness Centers

The UPS Store - Conditionally Sold

Rural Chicken Franchise Restaurant

Home Renovation Business

Profitable Resort

Winnipeg Auto Repair Shop

Farm Parts & Recycling Business

Auto Parts, Service and Recycling Business

Profitable Winnipeg Automotive Services Center - Conditionally Sold

Rural Automotive Repair Shop Location - Conditionally Sold

Carman Property

Franchise - Tanning Studio

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

"The best revenge is massive success"

Frank Sinatra

I have recently started a new business and am having trouble buiding my customer base; do you have any tips on how I can grow my customer base?

Starting a new business can be overwhelming. Focusing on marketing and exposure will help to build your customer base; local marketing is key to any small business's success.

Here are seven ideas that may help you get some additional customers:

Be professional - if you are handing out flyers or brochures, make sure they look professional, and that it lists your phone number, an email address and your website address.
Offer a discount - offer a first time discount to new customers, or a special price with a one or two month deadline. People are inherently attracted to discounts, and may be willing to try out your product or service if the price is right. Consider offering your discount through TeamBuy, Groupon, or Dealfind. This is a great way to gain access to customers specifically in your geographic target market.
Be consistent - ensure your business has a consistent message you are sending to your customers in order to provide your customers with accurate and reliable information. Consistency is important to your company's image, so make sure all your advertisements and core message are the same.
Utilize referrals -ask customers to refer your business to others. This is a cost effective way to gain additional exposure. To increase referrals you can offer customers a small gift if one of their referrals leads to a sale.
Network - attend a variety of networking functions that will allow you to meet with either potential customers or industry contacts that may be able to offer professional advice or referrals.
Cold call - make cold calls to potential customers that may want your product or service. Develop and practice a 30 second elevator pitch, this will help you sound professional, friendly and confident to potential customers. Follow up with all customers after meeting with them.
Get social - utilize social networking sites, such as Facebook and Twitter. Publish your company's contact information and detailed information about your company's product or service. Make sure your page is informative, visually appealing, and interesting.

By building a community and pursuing a number of different kinds of outreach you should be able to start building up your customer base. Make sure you focus on visibility, if people do not know about your business, how do you expect them to buy your product or service?

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 2016 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.