The Beal Business Advisor

September 2016

Contact Number: 204-478-7266

In This Issue

Closed Transaction
Buying a Business - Legal Issues
Selling your Business - Financing Your Exit Strategy
Question of the Month - What is Customer Relationship Management and the Benefits of using it?

Closed Transaction

Insurance Services Business

The Undersigned Has Acted as an

Advisor to the Vendor

Beal Consultants

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

204-478-7266 ext. 109

www.bealconsultants.ca

Legal Issues

Last month we discussed taxes, this month we want to discuss some of the legal issues when buying a business. You and your advisors will need to investigate if:

Are there any law suits outstanding?
What Occupational Health and Safety, W.C.B., environmental and other regulatory requirements must be met and are they currently being met?
Are all registration requirements and regulations being met?
Are all local zoning requirements being met?
Review the articles of incorporation, minute books, by-laws, and/or partnership agreements.
Is the business a franchise? If so, review the franchise agreement. Understand your obligations and rights.

Next month we will discuss insurance.

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

Financing your Exit Strategy

As mentioned last month, this month we will focus on financing your exit strategy.

Financing is key to the transition. Various statistics tell us that more than half the deals that are agreed on paper (terms, price, etc.) fall apart due to lack of financing. Don't let this happen to your deal by ensuring you know what's possible.

Let me start with the bad news. Sellers, if you want maximum price for your business (and who doesn't?) and if your business has a large goodwill component, be prepared to take back some of the financing. There are sources of cash flow financing, but typically the amounts offered are either very small or very expensive. The buyer will be forced to look to you for at least part of this component.

Now the good news. Seller financing helps boost the price. A US study (data from Canada is only anecdotal to get) indicates sellers can get up to 25% more for their business if they are willing to finance the buyer.

Averages are always tricky, and every business is different, but, in general, most deals need three sources of financing: the buyer with a down payment of anywhere from a quarter to half the value, the banks, with an amount equal to the fixed assets, plus some working capital (if not already tapped) and, finally, the vendor for the balance.

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

Current Businesses for Sale

Small Town Grocery Store (NEW)

Bridal Salon (NEW)

Trucking Business

Small Town Convenience Store

Health Food Chain

Seasonal RV Park

Mexican Restaurant

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 - Conditionally Sold

Franchised Fitness Centers

The UPS Store - Conditionally Sold

Rural Chicken Franchise Restaurant

Home Renovation Business

Winnipeg Auto Repair Shop

Farm Parts & Recycling Business

Auto Parts, Service and Recycling Business

Profitable Winnipeg Automotive Service Center - Conditionally Sold

Rural Automotive Repair Shop Location - Conditionally Sold

Carman Property

Franchise - Tanning Studio

Thompson Hotel and Restaurant

WOW 1 Day Painting Franchise

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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

"Two roads diverged in a wood, and I took the one less traveled by, and that has made all the difference"

Robert Frost

What is Customer Relationship Management (CRM)? and what are the benefits of using it? Is it worth the investment as a small business owner to implement a CRM solution?

Customer relationship management (CRM) helps companies to understand their customers and their needs in order to optimize their interactions with them. CRM helps companies manage customer relationships and interactions in an organized way by utilizing software and internet capabilities to synchronize business processes. The overall goal of CRM is to reduce costs and increase profitability by solidifying customer satisfaction, loyalty, and advocacy. It is a strategy used to learn more about customer's needs and behaviors in order to develop stronger relationships with them.

Benefits of CRM:

Today's business environment is hypercompetitive, so it is more important than ever for you to attract, and retain customers. Typically, it is less costly to retain your existing customers than it is to find new ones. As a result, you may want to consider implementing a customer relationship management strategy in order to systematically and efficiently satisfy your customers to retain their business.

CRM will enable you to actively manage your customer relations in an organized and strategic manner. In practice, that means developing your company's processes and procedures to be able to better address your customer's needs and, as a result, make your relationships with your customers more profitable.

Using a CRM system, you can keep track of key customer information such as contacts, communications, accounts, buying patterns and preferences, allowing you to match your customers' needs with your products and services.

Both small and large businesses benefit from the use of CRM. What types of benefits can a small business owner expect from implementing a CRM solution? Some examples include:

Increased sales
Enhanced customer service
Higher level of customer satisfaction
Improved time and sales management

There is no excuse for small businesses not to implement a CRM solution. There are affordable CRM solutions geared toward small businesses, just make sure you select the one that is right for you.

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 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.