buy a business without losing your shirt

BCI Business Brokers

Buy A Business

Don’t Lose Your Shirt



1. Your Objectives2. Plus and Minus of Small Business3. How to Investigate4. Pitfalls5. Building Wealth6. Franchise v Non-Franchise7. How much to pay8. What’s “Hot”

Information Night


What do you want

to learn tonight?

Information Night


“Half of my marketing budget is wasted - But

I’m not sure which half.” Lord Leverhulme

Quotation


“High Percentage of Businesses Fail in the

First Years”

Quotation


Here

How can I be sure to end up…

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Not Here





Answer These Questions What would be the main reason for you

going into business?

What are you most concerned about when thinking about buying a business?


Reasons People buy a Franchise

LifestyleBrand Security and SupportSelf DirecitonIncomeSkillsOther

33%

27%

19%

16%1%3%


Describe Your Ideal Business


Add It UpGood Side Freedom/Lifestyle Control/Certainty “My Business” Wealth No Limit

Bad Side Lose Assets No Holidays Long Hours Always “on” Stuff


Questions to Ask the Vendor Is the business making money? Where is the proof? How important is owner to business? Will I be trained and supported? Does he own other businesses? What systems are there?


Questions to Ask Yourself Will I like it? Will the goodwill transfer to me? Where are we in the economic cycle? How is the industry? Will I grow the business? Will I be able to sell it?


•Wrong reasons•Insufficient Capital•Not enough research•Murphy’s Law•Giving up too early (Health, psychology)•Not enough answers

Major PitfallsMajor Pitfalls


Your ChoiceYour Choice

Cost Support Answers Brand Freedom

Startup√ X X X √

FranchX √ √ √ X

Non

Franch√ X √ X √


Your Ideal BusinessYour Ideal Business

Successful FoundationSuccessful Foundation

Product or ServiceProduct or Service

GrowthGrowth

AnswersAnswers Right For YouRight

For You

SystemsSystemsTransferableTransferable

BrandBrand

ProfitableProfitable


Survival

The JourneysThe Journeys

Growth

New

Change$$

Challenge

Expectations

Support

StrategyExpertis

e

Courage

Investors


The Key to Building Wealth in Small Business

Building WealthBuilding Wealth


Kiyosaki’s Cashflow QuadrantKiyosaki’s Cashflow Quadrant

JobInvestment

Self

EmploymentBusiness


Franchise or Non-FranchiseFranchise or Non-Franchise

Franchise Buyers Inexperienced Can Follow System Risk averse Likes teamwork

Non-Franch Buyers Independent Pro-risk Disciplined Free-Spirit


What’s worth more?

Appraise business




Risk and ReturnRisk and Return

Risk

% Return pa

Bonds

CommercialProperty

Bank

Shares

SmallBusiness

3 5 8 10 20

ResidentialProperty

30


Risk and Return by Business TypeRisk and Return by Business Type

Low

ROI %

Growth IndustryLarger businessesStrong BrandProtection by LawOngoing Income

Personal sellingUnfashionableReliant on ownerEasy entry by competitorsLittle Infrastructure

High 50-90

30

15-20


Risk and Return by IndustryRisk and Return by Industry

Low

Service RetailCleaningReal EstateSmall Manuf.

ROI %

High 50-90

30

15-20

Property ManagementCaravan ParkFranchiseMortgage BrokerFinancial Planner


What’s Hot Franchise Online Business Home Business Tied to necessity Serving the aging demographic Health related


Thank You

Success in business requires training and discipline and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were.

David Rockerfeller



If you would like to sit down with Tony Arena to discuss any

business opportunity or see what businesses we have for sale

contactTony Arena 61 2 9439 3399

[email protected]://www.bc.com.au

buy a business without losing your shirt

Business

business wealth

business dont

business opportunity

minus of small business

business type low roi

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return risk