Business Advice

Considering buying a bookkeeping business in Australia? This guide will help uncover the pros and cons so you can decide if you are onto something great.    Bookkeeping is not just about numbers or ledgers; it's about the backbone of every successful business out there.     So, whether you're a numbers enthusiast or simply someone who loves the potential of the bookkeeping business model.   Join us as we delve deep into the pros and cons of buying a bookkeeping business.    By the end of our journey, you'll be equipped with insights to chart your next move confidently. Let the exploration begin!   What types of Bookkeeping businesses are there? Firstly, let’s be clear on what exactly a vending machine business is. We all know the vending machine that sells snacks but what other types of vending machines are out there:   1. Full-Service Bookkeeping: This model offers a comprehensive suite of accounting services beyond basic bookkeeping, like payroll, tax preparation, and financial analysis. Ideal for clients seeking a one-stop-shop for all their financial needs.   2. Outsourced Bookkeeping Services: Many businesses prefer not to handle bookkeeping in-house. If you offer outsourced services, you’ll act as an external consultant, providing expertise without the need for the client to have an on-site bookkeeper. You can often do this remotely so you can work from home.   3. Boutique Bookkeeping: Serving a particular demographic or business size? Specific sectors have unique financial quirks. Whether it's the bustling world of e-commerce or the intricacies of non-profits, there's room to niche down and become the go-to expert.   4. On-Site Bookkeeping: Some businesses require the physical presence of a bookkeeper. In this model, you’ll work closely with businesses on location, often part-time, managing their books and providing immediate assistance.   5. Franchised Bookkeeping If starting from scratch feels overwhelming, franchises come to the rescue. Benefit from brand power and a tried-and-tested operational blueprint.   Each option has pros and cons, that we will explore more in depth now. What are the advantages of buying a business in the Bookkeeping industry?   It's got some pretty awesome perks that you might find super appealing. Let's break them down, shall we?   1. Profit Potential: With often low overheads, especially for home-based or virtual models, the profit margins can be alluring.   2. Recurring Revenue Stream: Bookkeeping is not a one-off job. Businesses need monthly, quarterly, and annual services. This means steady cash flow.   3. Essential Service: No matter the economic climate, companies need their books in order. Your service isn't just useful; it's indispensable.   4. Scalable Model: Starting solo? That's fine. As demand grows, you can expand, hire more hands, and even branch into specialties.   6. Networking: Working with diverse businesses, from startups to established enterprises, allows you to build an extensive network. This can lead to referrals and collaborative opportunities.   7. Flexibility: Many bookkeeping models, especially virtual and home-based, allow for a work-life balance. Tailor your hours, choose your clients, and even decide your service offerings.   8. Tech Integration: Stay at the forefront of technology. Modern bookkeeping software and tools keep evolving, allowing you to offer cutting-edge services to clients. Imagine a venture with consistent demand, a clear growth path, and the satisfaction of offering a crucial service. That's bookkeeping for you!   What is the business really like from people that own one?   Chris Williams bought System Six, a bookkeeping business in the US with $1m EBITDA in 2021.   You can follow his journey as he reflects back a year later on how the journey has been.   The most interesting part is where Chris discusses how he feels about buying a business in the bookkeeping industry.   Patrick Dichter also bought an Bookkeeping business in the States.   He reflects on how he bought and grew his business 60% here.   What prices do Bookkeeping Machine businesses typically go for?   We currently have around 50 bookkeeping businesses listed for sale.   The smallest starts at around $20,000.   And the largest bookkeeping business currently for sale is for $1m.   You can view all the bookkeeping businesses currently for sale here: https://www.businessforsale.com.au/search?keywords=bookkeeping   So you found a Bookkeeping business that you like the look of. What questions should you ask?   So, you've got your eyes on a bookkeeping business. But how do you ensure it's the golden ticket? Let's find out.   1. Client Portfolio: Who are their current clients? Understanding the clientele can give insights into the business's reputation and specialisation.   2. Client Retention Rate: How many clients have stuck around long-term? A high retention rate indicates client satisfaction and consistent service quality.   3. Financial Health: Ask for financial statements. Are revenues growing, steady, or declining? What about trends for expenses and debts?   4. Software and Tools: What technology and software do they use? Is it up-to-date, or will you need to do a large meaningful upgrade?   5. Training and Transition: Will the current owner provide training? How smooth is the transition process for clients and employees?   6. Employee Retention: How long have the employees been with the business? A stable team can be a sign of good management and work culture. And are the team based in Australia or overseas.   7. Outstanding Liabilities: Any pending lawsuits or financial commitments? You'd want to know upfront.   8. Competitive Landscape: Who are the main competitors? What sets this business apart from them?   9. Recurring Contracts: Does the business have any long-term contracts in place? These can guarantee revenue for a set period.   10. Historical Data: Can they provide data on past audits, errors, or client disputes? This can give insights into the business's accuracy and reliability.   11. Pricing Model: How are their services priced? Is it hourly, monthly retainers, or a different model?   12. Growth Opportunities: Are there potential clients or markets the business hasn't tapped into yet?   13. Business Processes: Are there documented standard operating procedures (SOPs)? This can make the transition smoother. Equipped with these comprehensive questions, you'll be in a strong position to evaluate the worth and potential of the bookkeeping business in question.    Remember, the more you know, the better your decision-making will be.   Let’s find your perfect Bookkeeping business here.

Imagine having your own mini-store that's open 24/7 and doesn't even need a cashier.  Along with Laundromats, Vending Machine Businesses are often held up as the perfect example of a passive income business.   But how passive is the income of a vending machine business? And how profitable can they be?   Stick around, and we'll walk you through all the possible reasons you might want to snag one for yourself. What types of vending machine businesses are there? Firstly, let’s be clear on what exactly a vending machine business is. We all know the vending machine that sells snacks but what other types of vending machines are out there: Snack Vending: These are the most common types and offer a variety of soft drinks, waters, juices, and snacks like chips or chocolate. Hot Beverage Vending: These vending machines offer hot beverages like coffee, tea, and hot chocolate. Fresh Food Vending: These machines vend fresh sandwiches, salads, and even full meals. They require more frequent restocking and have higher spoilage risks. Frozen Food Vending: These vending machines offer frozen items like ice cream or frozen dinners that can be heated later. Gumball Vending: These are typically smaller machines that vend gumballs, sweets, or small toys. Health and Wellness Vending: These machines offer healthier food and drink options like protein bars, nuts, and mineral water. Newspaper and Magazine Vending: Although not as popular as they once were, these are machines where you can purchase newspapers or magazines. DVD/Blu-Ray Rental Vending: Machines that offer DVD and Blu-Ray rentals. Office Supplies Vending: These machines can be found in business centres or schools and offer pens, notepads, and other small office supplies. Photo Booths: While not traditional vending machines, these offer a service (photo-taking) and are often grouped with vending opportunities. ATM Machines: Again, not a traditional vending machine, but ATMs are often owned by private businesses and generate revenue through transaction fees. Laundry Detergent Vending: Often found in laundromats, these machines dispense small amounts of laundry detergent and fabric softener. Pet Food Vending: These machines can be found in pet-friendly public places and offer small amounts of pet food or treats. Automotive Vending: These machines offer air fresheners, windshield washer fluid, or even motor oil. Tourist and Travel Essentials: Located in airports or tourist destinations, these machines offer travel pillows, phone chargers, or even luggage. Personal Care Vending: These vending machines offer personal care items like tampons, toothpaste, or condoms and can be sometimes found in the bathrooms of institutions such as schools or businesses. Car Vending: Believe it or not, some vending machines in the States allow you to purchase a car, which is then dispensed from a multi-story facility. Now that we know, what range is out there, we will focus on the more traditional food and drink vending machines. As these are the most popular business type we see for sale in the vending machine industry. What are the advantages of buying a business in the Vending Machine industry? Vending Machine Business For Sale have got some pretty awesome perks that you might find super appealing. Let's break them down, shall we?   Budget-Friendly Start: Vending machines won't break the bank. They usually have lower upfront costs compared to other business ventures. Growth Friendly: You can kick things off with just a machine or two and expand as you start rolling in those dollars (or perhaps digital payments these days). Fairly Simple Operations: Managing one vending machine is as straightforward as it gets. Just keep it stocked and collect your earnings. It gets more complex as you scale but the logistics are the same. Solo Act: Many of these businesses can be a one-person show. Say goodbye to payroll headaches! Earn on Autopilot: Once your machine is up and running, it's like a little robot that makes money for you 24/7.  Always Open: These machines don't sleep, giving you a chance to earn round-the-clock. Choose your Location: From schools and offices to airports and hospitals, these machines can go almost anywhere. Move It As You Like: Not making enough where you are? No worries, just move your vending machine somewhere else! Low Maintenance: After stocking up, you just have a few bills for things like electricity and maybe some minor repairs. Instant Earnings: Whether it's coins, bills, or digital payments, you get your money right then and there. Quick Payback: If you pick a bustling spot, you can make back your investment in no time. Be Your Own Boss: You can run this business part-time or as a fun project on the side. Family Affair: Get the kiddos involved! It's a great way to teach them the basics of running a business. Tailor-Made Choices: Adapt your offerings to specific markets, like stocking up on healthy snacks or luxury items. High-Tech Goodies: Newer models come with touch screens, credit card readers, and even remote monitoring.  Multiple Baskets for Your Eggs: Diversify your income by placing machines at different locations. Tax Benefits: You could potentially write off the depreciation on your vending machines, giving you some tax advantages. Sure, every business has its challenges—like finding the best spots and keeping up with maintenance. But the upsides of a vending machine business make it an attractive option for a lot of business buyers.   What is the business really like? Jason from SBO Financial recently checked out a vending machine business that was making $148k in profit and was up for grabs at a 3.8 times profit multiple. Pretty neat, huh? Jason points out that an average vending machine can pocket you around $5-6k AUD in profit. The best part? Modern machines even come with snazzy software that shows you how much you're making and what's left in stock—all in real time! But guess what? Jason decided to pass on this opportunity. Why? Well, it turns out that where you place these vending machines really matters. You've got to actually be there, scout locations, and chat with landlords to make sure you get the primo spots. Just something to think about if you're considering jumping in! You can read his full report on the business here.   In the US, Ujwal bought a vending machine empire with thousands of machines and 7 figures of profit.   This is the story of how he bought it and what it does today.   What prices do Vending Machine businesses typically go for? Like most industries, there is a massive range of prices for vending machine businesses. Smaller one person operations may go for under $100k. At the moment we have: Mobile ATM business for $99k, Sydney operation for $130k $499k for a vending machine operation in Townsville Or there are franchise options available too: Provender franchises from $40k SVA Vending from $26,000 Just Now Vending Franchises from $50k Larger operations with lots of machines in multiple locations may go up closer to $1m in line with the company profits. Should I go with a franchise or an independent vending machine business? Franchise Vending Machine Business A Franchised Vending Machine Business will have a lot of the benefits that we see with franchises over independent businesses but also some of the similar drawbacks:   Pros:   Brand Recognition: Franchised businesses often come with the advantage of established brand recognition, which can help attract customers. Proven Business Model: A franchise provides a tried-and-true business model, taking much of the guesswork out of your business planning. Training and Support: Many franchises offer training programs and ongoing support to help you manage your business effectively. Marketing Assistance: Franchisors usually provide marketing resources and can even run campaigns that benefit your location. Bulk Purchasing Power: As part of a larger network, you may benefit from economies of scale in purchasing inventory. Buying more Franchises: If you are already established in a Franchise then there might be opportunities to purchase businesses from other existing owners in the Franchise. Cons Initial Franchise Fees: These can be hefty and are an added cost on top of your other startup expenses. Ongoing Fees: Most franchises require payment of ongoing royalties, which can eat into your profit margins. Less Autonomy: Franchisees are generally required to follow a set of corporate policies, which might restrict your ability to manage the business as you see fit. Limited Product Offering: You might be restricted to selling only the products offered by the franchisor, limiting your ability to diversify.   Independent Vending Machine Business Pros: Greater Autonomy: Running an independent business allows you greater freedom in all aspects of the business, from the products you sell to the way you market them. Higher Profit Margins: Without franchise fees and royalties, you keep a greater percentage of the revenue. Flexible Business Model: You have the freedom to pivot your business strategy as you see fit, adapting to market needs or emerging trends. Local Adaptation: You can tailor your product offerings and marketing to the specific needs and tastes of your local market. Cons: Lack of Brand Recognition: Starting from scratch means you’ll need to invest time and effort into building a brand and attracting customers. Unproven Business Model: You bear the risk of an unproven business model and may need to adjust your strategy multiple times to find what works. Limited Support and Resources: You'll be responsible for all aspects of the business, from sourcing and operations to marketing and customer service, without the safety net of a franchise support system. Higher Inventory Costs: Buying products in smaller quantities typically means you won't enjoy the same bulk discounts that a franchise might offer.   So you found a Vending Machine business that you like the look of. What questions should you ask? Hey there, future vending machine mogul! Thinking about buying a vending machine business? That's awesome! Before you jump in, here are 14 questions you might want to ask to make sure you're making a smart move.  How long has the business been running? - It's good to know if it's well-established or still in its baby steps. Why is the current owner selling? - This could tell you a lot about whether the business is booming or struggling. What are the average monthly sales and expenses? - You'll want a clear picture of income and costs. How quickly can I expect a return on my investment? - Knowing the payback period is essential. How many machines are included? - More machines may mean more income but also more work. What's the condition of the machines? - You don't want to inherit a bunch of repair bills. Do they accept card payments or just cash? - Card acceptance could mean more sales. Where are the machines placed? - Good locations can make or break the business. Do you have contracts with these locations? - This will show if your business will have a stable home. What's the process for restocking? - Know what you're getting into in terms of time and effort. Who are the suppliers? - You’ll need to know where the snacks and drinks are coming from. Is there room for expansion? - Can you add more machines or introduce new products? What kind of customer trends have you noticed? - This could guide your future decisions. Are there any current employees? - If it's not a one-person show, you'll need to consider staff needs. Do they restock themselves or maybe have family members help.   Now that you are armed with the knowledge you need for your Vending Venture. Let’s find your perfect Vending Machine business here.

When most people think of cleaning, they probably think of cleaning their home as this is what we are all most familiar with.   Having seen lots of cleaning businesses for sale, I can safely say that nearly anything that exists, can be cleaned!   According to Ibis World there are 41,819 commercial cleaning companies in Australia and together they do 11bn in total revenue.   Whilst the pandemic squeezed profit margins as hotels and commercial offices were shut down, there is beginning to be a return to steady growth seen over the last 20 years.   So much so, that revenue is forecast to grow to $13.1 billion through the end of 2027-28.   So cleaning businesses span a broad spectrum of niches from:   Residential Cleaning Services: These services offer regular cleaning, deep cleaning, or specialised cleaning for homes and apartments. They may include tasks such as dusting, mopping, vacuuming, and more. Commercial Cleaning Services: This covers the cleaning of office buildings, retail spaces, and other commercial properties. They usually involve more large-scale equipment and can be more specialised, based on the needs of the business. Carpet Cleaning: This niche focuses specifically on cleaning and maintaining carpets, often using specialised equipment. Window Cleaning: Some companies specialise in window cleaning for both residential and commercial properties. Industrial Cleaning: These businesses handle more heavy-duty cleaning tasks, often in manufacturing or industrial settings. This might include cleaning machinery or specialised cleaning processes. Bond Cleaning: Specifically for homes or offices that are transitioning between tenants or owners. This can often be a deeper clean, ensuring the space is ready for its new occupants. Green Cleaning: With an emphasis on environmental responsibility, these companies use eco-friendly cleaning products and methods. Crime Scene Cleanup: Post-incident cleanup of sites where crimes, accidents, or deaths have occurred. Biohazard Cleanup: Handling and cleaning sites that have potential health risks, like mould or hazardous chemicals. Hoarding Cleanup: Assisting in the cleanup and organisation of properties affected by hoarding. Marine Boat Cleaning: Cleaning boats or yachts that you see at your local marina. Dog Wash - either mobile service or a DIY station that dog owners can pay to use. Medical Cleaning: Cleaning medical facilities, which requires understanding and complying with health standards. Car Wash: This covers car wash services, detailing services, and even specialised cleaning for larger vehicles like buses or trucks. Dry Cleaning: While not 'cleaning' in the traditional sense, they are a part of the broader cleaning industry. They cater to clothing and fabric items, offering washing, drying, and specialised treatments. Chimney Cleaning: Focused on cleaning and maintaining chimneys to ensure safe operation of fireplaces and stoves. Wheelie Bin Cleaning - keeping your bins regularly cleaned. Pressure Washing: Using high-pressure water spray to clean surfaces like driveways, siding, decks, and more. Air Conditioning Cleaning: Specialised in cleaning the Air Con systems, ensuring better air quality and system efficiency. Pool Cleaning: Offering a regular service for home pool owners or commercial pools like hotels to help keep their pools clean and safe to swim in. Laundromats: Self service laundromats can really reduce the need for staff, making them perfect for a more hands off cash flowing business.   What are the advantages of buying a business in the cleaning industry?   Starting a cleaning business does not often require a large capital investment so the barriers to entry can be quite low.    This means that the cleaning industry can be quite competitive however there are some great advantages that make cleaning businesses very attractive businesses to buy:   Opportunity for Specialisation: As the industry is vast, business owners can carve out niches like green cleaning, medical facility cleaning, or crime scene cleanup, which may offer higher profit margins or less competition.   Recurring Revenue: The holy grail. Many cleaning services operate on contracts or standing appointments. Whether it's a residential client who needs bi-weekly cleaning or a commercial contract that requires daily or weekly service, recurring revenue provides stability and predictability for business owners.   High Profit Margins: When managed efficiently, the cleaning business can have favourable profit margins. Overheads, such as cleaning supplies, can be low compared to the service fees charged, especially when buying in bulk or leveraging economies of scale as your business grows.   Scalability: The business model can be scaled from a solo operation to a vast enterprise, depending on the entrepreneur's ambition. Expansion can be pursued in terms of services offered, geographic regions covered, or niches catered to.   Diverse Clientele: The industry caters to various clients, from residential homeowners to large corporations, schools, hospitals, and other institutions. This diversity can make the business resistant to fluctuations in any single sector.   Consistent Demand: Cleanliness and hygiene are perpetual needs. Even during economic downturns, certain segments of the cleaning industry (like commercial cleaning) may continue to see demand.   Flexibility: Especially for smaller operations or residential cleaning services, there's a degree of flexibility in setting schedules or choosing clients, making it suitable for those seeking a work-life balance.   Resilience to Technological Disruption: While many industries are threatened by technological advances, the hands-on nature of cleaning services means they remain relatively resistant to such disruptions.   Franchise Opportunities: For those not wanting to start from scratch, the cleaning industry has numerous franchise opportunities. These can offer brand recognition, operational support, training, and marketing advantages.   Environmental and Health Impact: With a growing emphasis on green cleaning and sustainability, there's an opportunity to make a positive environmental impact. Businesses can also contribute to the health and well-being of clients by reducing allergens, bacteria, and other hazards.   Community Engagement: Cleaning businesses often serve local communities. Owners can establish strong local networks, participate in community events, and become recognized members of their local business ecosystems.   Growth Opportunities: As there are lots of owner operated businesses, there is lots of opportunity to use acquisition as a growth channel to expand your revenue and staff. Plus demand for household cleaning is forecast to increase as dual income families become more and more common.   Cash Flow: Depending on the terms set with clients, cleaning businesses often benefit from quick payments, aiding in steady cash flow.   All of these benefits can lead to high competition in the cleaning industry. This competition can force prices down, meaning that some cleaning businesses have very low margins.   Wondering what the gross margins might look like in reality?   This podcast episode shares the story of George Vallone that bought a cleaning business doing $1m in the States.   Other episodes that might be useful to learn about the cleaning business are: Chris Munn, who bought a $800k cleaning business. Fraser Voll bought a 50 year old Commercial Cleaning company.  Ben Bortner bought a pool cleaning business and then sold it for 8x.    What multiples do cleaning businesses typically go for?   You can find our guide on how to calculate the SDE of a business accurately here.   Once you have your profit figure, the average multiples we have seen are:So, you're curious about how much a cleaning business is worth, right? It's a bit like a puzzle, but don't worry, I'll break it down for you!   You can think of a cleaning business's value as a big multiplication game. We often take 2 to 3 times the owner's take-home pay to figure it out. But hold on, it's not that simple! It can change a lot based on all kinds of stuff. Here at Business For Sale, we look at over 150 factors to get you an accurate business valuation.   But hey, if you're just looking for a quick idea of what a cleaning business might be worth, you can use these handy rules:   Under $500K in sales? Multiply by 1.5 to 2 times. $500K to $1M in sales? Multiply by 2 to 2.5 times. $1M to $5M in sales? Multiply by 2.5 to 3.5 times. Over $5M in sales? Multiply by 3.5 to 5 times or even more.   Now, you might be wondering what can make a cleaning business worth more or less. Here's some insider info:   Commercial Jobs: These are like gold! They usually keep coming, giving buyers confidence. Plus, they often last a long time, like a steady paycheck for years. Contracts: Got some paper that says your clients will stick around? Awesome! That's like a promise for the future. Just make sure those contracts can move to the new owner. Owner's Role: If you're more hands-off and the business runs itself, that's a big plus. More buyers might want it, and that could mean a better price. Family in the Business: It's great working with family, but buyers might get nervous if too many relatives are part of the crew. They might worry folks will leave when you do. Legal Employees: Having staff with proper paperwork who've been around a while can push up the price. The cleaning business is sometimes known for shady dealings with workers, so keeping things on the up-and-up can really pay off.   So you found a cleaning business that you like the look of. What questions should you ask?   Some of these will be up to you to answer and some of these you will have to ask the seller or broker for more information to help answer.   1. Financial Questions: Can I see the last three years of financial statements, including profit and loss, balance sheet, and cash flow statements? What is the company's current debt load, and what are the terms? Are there any outstanding financial or tax liabilities? What are the major expenses for the business? What is the business's gross and net profit margin?   2. Operational Questions: What cleaning techniques and equipment do you use? Are they up-to-date and well-maintained? What are the company's operational processes and workflows? What software or tools do you use for scheduling, billing, and client management? How do you source and manage inventory and cleaning supplies?   3. Client-Related Questions: Can I have a breakdown of the client base (residential vs. commercial, frequency of service)? Are there any long-term contracts in place? Can I review them? What is the client retention rate? Why do clients typically leave? How do you acquire new clients, and what's the average cost of acquisition? Is there any client concentration (i.e., a significant portion of revenue coming from one or a few clients)?   4. Employee-Related Questions: Can I see an organizational chart and job descriptions for all positions? Are there any key employees that the business relies heavily upon? What is the employee turnover rate?  

Only rich people can just go and "buy a business" right? Nope! Vendor Finance is one popular option you have to help you finance some of your ideal business acquisition. Imagine you're buying a car from a friend. Instead of getting a loan from the bank, your friend says, "Hey, just give me a down payment now, and you can pay me the rest over the next couple of years." So, you make a deal to pay a bit every month until you've paid off the full amount. This way, you get the car now, and your friend gets a bit more money over time, including some extra for letting you pay over time. Now, lets apply that simple idea to buying a business. Vendor financing when buying a business is pretty much the same concept. Instead of getting a loan from a bank to buy a business, the current owner (the seller) lets you pay them directly over time. You give them a portion of the money upfront (a down payment) and then pay the rest in instalments, usually with a bit of interest. Advantages of Vendor Financing for the Buyer Easier Checkout: Just like an express lane in a store, seller financing can be quicker and smoother than waiting in line at a bank. You might not need all that paperwork and time banks ask for if you try to apply for a loan through your bank. (Reply to this email with “bank” if you need help finding a bank friendly to acquisitions and I can share some suggestions) Friendlier Terms: Imagine if you could negotiate how much pocket money you give and when? That's the beauty here. You and the seller can chat and come up with payment plans that work for both of you creating a win, win agreement. This is one of the reasons why it is so important to build a great relationship with the seller. Save Money: With seller financing, you might be able to skip some of the admin fees banks usually charge, so you keep more money in your pocket. More Choices: Think of it like being able to buy a toy even if it's not on the shelf at the big stores. Some businesses might not qualify for bank loans, but with seller financing, you can still buy them. This often applies to online businesses or businesses that don’t include a large amount of Real Estate as collateral. A Helping Hand: It's like having a friend guide you on how to play a new game. The seller, who knows the business inside-out, might offer advice or help during the transition, since they have a vested interest in seeing you succeed. The best Vendor Financing terms, make the deal a win, win. How does that work? What is in it for the seller? The advanges of Vendor Financing for the Seller Vendor Financing Helps Businesses Sell Faster: Our surveys show that more than half of buyers like it when sellers offer financing. By offering this option, sellers attract more potential buyers and often sell their business faster. Plus with more interested buyers competing… You Might Get a Better Price: Imagine selling lemonade with a bonus cookie. You can charge a bit more, right? Similarly, if sellers offer vendor financing, they can often set a higher price for their business. More people want businesses that offer financing, and that demand lets sellers ask for a bit more money. Earn Extra with Interest: Picture a piggy bank that slowly fills up over time. That's what seller financing can do! Apart from getting a good price for the business, sellers also earn money from the interest. It's like a two-for-one deal. And the best part? The deal can often wrap up faster than waiting for a bank's thumbs up. More Confidence for Buyers: When the seller offers financing, it's like a seal of approval. It tells the buyer, "Hey, I believe in this business and its future." Buyers always get nervous when the deal deadline gets closer, having a seal of approval like this can go a long way to calming nerves. Plus you get to see your legacy continuing as a successful business. Tax Benefits: This will vary based on your personal finances and the size of the business. But by spreading out the taxable income from the sale over time. You can often minimise the amount of tax you have to pay on your sale. (Need help with working out taxes on the sale of your business, reply with ‘tax’ and I can provide some recommended people to talk to).   Disadvantages of Vendor Financing for the Buyer While seller financing can sound like a sweet deal, just like that extra scoop of ice cream on a hot day, there are sometimes things to watch out for. Here are some potential "melty" bits for buyers: Higher Prices: Imagine you find a toy you really want, but because it comes with a special deal, the price tag is a bit higher. Similarly, businesses with seller financing might be priced a bit more since the seller is offering you the convenience of paying over time.  Deposit Payment: Some sellers might ask for a bigger initial payment to feel secure about the deal. Buyers love the idea of 100% vendor finance, but if you put yourself in the sellers shoes, would you ever do that deal? If you would, then the business is probably not as quality as you might first think. 99.99% of deals have a sizable up front down payment or deposit. Interest Rates Can Vary: Sellers might set their own interest rates, and sometimes, they might be higher than what banks offer. This is negotiable in your offer but it is sometimes a potential stumbling block to be aware of. The Fine Print: Ever get a toy, but then you realize it has a gazillion pieces to assemble? Seller-financed deals might come with terms and conditions that can be complicated. Always good to read and understand them fully. Make sure you have a good lawyer (by good, I mean one that has experience with multiple SMB acquisitions, not just your local golf buddy lawyer). They can help with setting your preferred terms in writing. No Standardised Process: Unlike banks, which have a set way of doing things, every seller might have their own style. This means the process isn't always predictable. A good broker or deal manager will be able to help with standardising the terms of the deal. So, while vendor financing can be a cool option, it's always good to understand these "sticky" parts, kind of like when you're choosing the right flavor on a sunny day. It's all about finding the best fit for your taste.   Disadvantages of Vendor Financing for the Seller Alright, let's flip the coin and take a friendly peek at the other side! Imagine seller financing is like lending your favorite toy to a friend. Sounds fun, but there might be some things you'd worry about, right? Here's what sellers might face:   Waiting Game: Instead of getting all your pocket money at once, it's like getting a few coins every week. Sellers won't get the full payment right away, so they have to be patient. You would get an up front amount though so only a percentage of the total price would normally be vendor financed. Risk of Non-Payment: Imagine lending that toy, but your friend keeps forgetting to return it or its pieces. If the buyer struggles financially and can't make payments, the seller might end up in a tough spot. This is a real risk and requires vetting of the buyers experience and a contract that has been professionally written by a lawyer from the acquisitions space. Reclaiming Process: If your friend doesn't return the toy, getting it back might be a big fuss. Similarly, if a buyer doesn't keep up with payments, the seller might need to go through legal processes, like foreclosure, which can be time-consuming, costly and stressful seeing your business and customers like that. Tied Up Funds: Think of it as having your best marbles in a game for a long time. The seller's money is tied up in the business, which means they can't use it for other opportunities or investments right away. I am looking at you, fancy boat, big golf trips or that holiday home at the beach. Paperwork and Management: Imagine having to keep a diary of when you lent your toys and to whom. Sellers have to manage and keep track of payments, paperwork, and maybe even tax implications. Your accountant can help with structuring some of these details but with any incoming revenue, it creates additional paperwork. Emotional Connection: It's hard to watch your favorite toy being played with differently by someone else. For many sellers, the business is their "baby", so watching its new direction under a different owner while still being financially connected can be challenging for some.  So, while seller financing can feel like a simple way to maximise the sale of your business, there are a few puddles to watch out for. Just like lending toys, it's always good to build a good relationship with the buyer and to have really clear expectations written out in a professional contract. When should I ask if the seller will consider Vendor Finance? Deciding when to ask about seller financing is a bit like timing the perfect moment to dive into a pool. You want to feel the waters before taking the plunge! Here's our guide on the right timing: Ask in your first few conversations but not the first: Before you ask, make sure you've thoroughly researched the business and understand its value. It's like studying for a test; you'll feel more confident in your conversation if you're well-prepared. Have a conversation first: Establish a good rapport with the seller. Have a conversation about the business, its history, and its future. It's always easier to discuss terms once you've built a bit of trust and understanding. When Discussing Price: If you're discussing the pricing details and the terms of the sale, that's a natural moment to bring up seller financing. Ask if that is something that the seller would consider. Before Making a Formal Offer: If you've decided you want the business and are leaning towards seller financing, bring it up before you present an official offer. This way, your offer can include the financing terms right from the start. Remember, not all buyers will consider vendor financing so before you spend too much time diligencing a business.  Make sure the seller understands that your interest in seller financing isn't because of a lack of confidence in the business but perhaps because it makes the transaction smoother for them or fits your financial strategy for the future of the company better. And, just like that well-timed dive, with the right approach, you'll create a splash that's just right and a smooth transfer of ownership from seller to you.   What to include in your Vendor Finance clause? When you're doing a vendor finance deal, there are a few key details both sides usually chat about and put into the contract of sale: The total amount being borrowed The interest rate The repayment schedule The term of the Loan Agreement  How business financial reports will be provided   Vendor finance is a pretty cool way many folks in Australia get to own a business. But, guess what? It's not the only way. If you're eyeing a smaller business, priced under $100k, there are heaps of people who just buy them outright with cash. For all the sellers out there: if you're happy with vendor financing, pop it into your ad! It will help widen your buyer pool so you can find the perfect buyer. And if you're looking to buy, it's a good idea to chat early on about vendor finance with the seller or broker. Just a tip: maybe don’t put it front and centre in your first enquiry.   Wishing you all the best in your business buying adventures. And hey, if you ever need a bit of guidance or a second opinion on your deal, just give me a shout. Always here to help.  

Figuring out the value of a business is a bit like trying to solve a puzzle—it's a blend of creativity and logic. It's not quite as straightforward as, say, appraising a house. There are so many more variables and considerations. But hey, don't worry! I want to share my method with you, a quick way to estimate a business's worth, especially when it's generating revenue in the sweet spot between $500K and $5M. First things first, you'll need to do a bit of homework. Here are the initial pieces of information you need to collect: Last full 3 years of Profit and Loss Statements Current Balance Sheet Details on Lease or the Real Estate if owned What does owner pay themselves and what do they do? Any other family members employed? List of Discretionary Expenses (expenses that are optional, or beneficial to current owner) Major Equipment List with Market Values Unusual Events Last 3 years? Any lawsuits? Gov handouts? Insurance Claims? Major Equipment bought/sold?   Before you dig in, ask yourself 4 common sense questions: Do I understand how this business works? Does this business work without the owner? Is there ONE customer or supplier that this business is completely at the mercy of What exactly is a buyer buying here? It's time to do an SDE-based, Income Approach to Value, which is really just 3 big parts. Determining SDE the last 3 Years Deciding how to Weight the last 3 Years' SDE Choosing an Appropriate Multiple to Multiply SDE to Reach our Value   What is SDE exactly? It stands for Sellers Discretionary Expenses and it's the theoretical "Earnings Power" of the business or the total "Owner Benefit". It's the "Earnings Firehose" you theoretically should have available to service acquisition debt, pay yourself or a GM to run it, reinvest for growth, or take home in profit. If you owned this company, debt free, and worked in it full time (paying yourself $0) paying only necessary expenses, the SDE is what you'd make in profit. It's the maximum earnings possible on a normal year in the company's current condition. Now let's find it. Addbacks: Owner's Family Member's Salary and Payroll Taxes Owners Benefits & Perks (healthcare plan for owner and family, cell phone bill, life insurance, owner's vehicle, anything that is paid out to owner and their family that will go away with the sale) Rent if Owner-Occupied Real Estate (will subtract a fair market rent later) One-Time Expenses that don't apply to a Buyer (cost of an expansion or remodel, a one-time consultant, a big one time abnormal bad debt, a lawsuit settlement, etc)   Don't forget the EBITDA addbacks too: Interest Expense (Buyer will buy debt free) Taxes (INCOME TAXES ONLY, Buyer responsible for their own tax bill and strategy) Depreciation & Amortization (phantom expenses Seller isn't writing actual checks for)   Now let's do some Negative Adjustments, the opposite of addbacks:   Market wages to replace Seller's family members (family members working for company are usually overpaid or underpaid) Any "other income" that's not the core business stuff, like interest income, selling assets, gov handouts eg Covid JobKeeper payments Fair Market Rent if Owner-Occupied - The coming Rent increase if leased and you know LL will raise One-time anomalies, windfalls of revenue not applicable to a Buyer - Deferred Maintenance (any stuff that should have already been fixed that the owner neglected) Capex if it's an Equipment Heavy Business w/trucks or machines that need periodic replacement (specifically Maintenance Capex, or a budget to replace major equip necessary for current sales level. Subtracts some of Depreciation addback.)   Alright, you've crunched the numbers and found your Seller's Discretionary Earnings (SDE)! It's time to repeat the process for the past two years' Profit & Loss (P&L) statements.   Lay them out together, and let's find a story in those numbers. After all, trends can really talk.   Chances are, you've ended up with three different SDE figures for each of the last three P&Ls. But to get the real value, you need just ONE SDE number, so let's try weighting.   Take a look at your SDE trends. If it's been growing consistently and you think that'll continue, then go ahead and pick your most recent and highest SDE figure. It's a winner!   On the other hand, if your SDE is more like a roller coaster, you'll need to get creative. Here's where your intuition steps in.   You might average the last three years, or maybe discount one year that's an outlier and average the other two. Trust your gut!   Now, if the trend is going downhill, that's a different ball game. You might have to lower your SDE substantially. Keep in mind, lenders and appraisers aren't going to expect your SDE to grow.   But if it's declining, they will definitely penalise you. In such a scenario, ask yourself: would anyone want to buy a business that's not growing, and why?   Once you've figured out your weighted SDE, it's time to multiply it by a certain figure. Here are some standard multiples to keep in mind:   Less than 100K SDE? Most likely 2x or less, or might not even sell. 100K-500K SDE? Expect 2x - 3.5x. 500K-1M SDE? You're looking at 3x - 4.5x. Over 1M SDE? You're in a whole new league!   But how do you choose a multiple within these wide ranges? Time to dig into industry-specific information and look at the unique qualities of your business.   Business reference guides and databases can offer industry-specific rules of thumb to find a median multiple. While some may simply choose the median multiple, you can do better than that.    Suppose your range is 2.2x -3.7x with a median of 2.9X. Look at your business in relation to the industry. Do you have higher margins? More stable income? Superior systems, technology, reputation? Then, boost your position on the scale. If it's underperforming compared to industry standards, slide it down.   Once you've made your pick, your business value = Weighted SDE x Your Chosen Multiple.   But hang on, we're not done yet. You've got to view it from a potential buyer's perspective too. Think about the most likely buyer for your business. Can they afford to buy it, make a decent living, service any debt, and still have a 25% cushion?   If not, your valuation might be a little off. Always ensure your valuation still makes sense for your potential buyers. Happy valuing!    

Good afternoon business buyers, Welcome to all the new business buyers that joined us this week!This week we had 710 new businesses listed. As you know our mission is to help you find your perfect Business For Sale. So today we break down: Why you might want to consider buying a Post Office? Plus the most interesting new businesses this week Hopefully your perfect business could be in this email…   Most Interesting Business For Sale this Week: 5 Star Award Winning Beauty Salon in Pennant Hills, Sydney Award Winning Beauty Salon In Pennant Hills. Finalist in the Australian Small Business Championship Award 2022. All equipment owned outright. Price: $75,000 Cake Decorating Shop on Central Coast, NSW The Largest Cake Decorating Supplies Business on the Central Coast with $794k in revenue. The owner is highly motivated and open to negotiation. Price: $399k Air Conditioning Business on the Gold Coast Loyal staff with an extensive client base in an incredible location. Price: $1.29m Music Studio in Parramatta The current studio, with its emphasis on recording and production, serves as a bustling hub of creativity. Price: $260k Chillagoe Cockatoo Hotel, Motel & Pub in FNQ Lcated Only 200kms West Of Cairns, The Chillagoe Cockatoo Hotel Motel Is For Sale. Price: $570k Road Freight Transport Business in Western Sydney Successful Road Freight Transport Service with annual income of $3m. Cargo/ Shipping Container Delivery, No Loose Goods. Price: $550k Online Boutique Home Fragrance Business Home Fragrance products plus Health and Beauty - including skincare, bath and body, hair care and men’s range. Turnover: $340k. Price: 180k Noosa Standalone Restaurant Est. 35 years Iconic, High traffic, Main Street LocationRestaurant is large enough for all your plans - 240 metres approx. plus storage. Price: $50k all cash offers. View all the latest Business For Sale listings near you   Ever considered buying a Post Office? Lots of people don’t know or have never considered that Post Offices can be sold or bought. But these unique businesses have a long history of changing ownership and have been a unique but popular category since we started helping buyers in 1987. Post Offices not only help with picking up parcels or sending letters but they also offer banking facilities, passport applications, bill payments, and more. And they can make great businesses for a lifestyle change, moving to the country, city or beach. Here are a few reasons why you might want to consider a Post Office: Stable and Essential Service: Post offices are an integral part of our country's infrastructure and provide essential services to individuals and businesses. Established Business Model: When you buy a post office, you acquire an established business with an existing local customer base, operational guides, and brand recognition. Diverse Revenue Streams: Post offices offer a range of services beyond traditional mail delivery, such as retail sales of stationery, packaging supplies, and postal-related products. Community Presence: Post offices often play a vital role in local communities, acting as a hub for social interactions and services. They serve as gathering place whilst also offering essential services. As some areas are losing a sense of community, I think Post Offices can play a pivotal role in helping build that community presence, especially in smaller, more rural towns. While buying a post office can have its advantages, it's important to consider the specific location as the advantages vary a lot based on its location. Current Post Office prices range from $70k for a regional Post Office to $950k for Sydney North Shore Post Office. You can see if there is a Post Office for sale near you here: View all Post Offices currently For Sale   Business For Sale around Australia Brisbane Business For Sale Sydney Business For Sale Melbourne Business For Sale Perth Business For Sale Adelaide Business For Sale Gold Coast Business For Sale Sunshine Coast Business For Sale Tasmania Business For Sale Online Business For Sale   Want to sell your business? Sell my Business online. Create a listing from $249 +GST. Sell faster with no Commission. Start getting enquiries today.  

Good afternoon business buyers,This week we had 439 new businesses listed. As you know our mission is to help you find your perfect Business For Sale. So today we break down: What is the Silver Tsunami that is coming? Plus the most interesting new businesses this week Hopefully your perfect business could be in this email…   Most Interesting Business For Sale this Week: Iconic Noosa Glamping Business? Yrs Building This Unique Family Business We Are Reaching Out For Expressions Of Interest. Price: $500k. Urgent Sale Pizza Shop? A restaurant that reimagines classic Italian comfort foods with a refreshing plant-based twist. Based in trendy West End, Brisbane. Price: $99k Cruise & Charter Business in Newcastle? Live the water life on Lake Macquarie and Newcastle with passenger cruises including 3 vessels worth $1.325m. Price: $1.675m Your own Ballarat Bookshop? The historic 3-storey 1870s redbrick building includes a fully self-contained 1-bedroom apartment. Price $850k Building + $100k Business Popular SUBWAY Shop in WA? Be part of a winning brand with a shop in a great location outside a busy shopping centre. Price: $120k Your own Craft Beer venue? The Pourhouse is run under management in Maitland near Newcastle, NSW. Price: $285k View all the latest Business For Sale listings near you   What is the Silver Tsunami? We all know a record number of Baby Boomers are retiring in the next 10 years. The current age of the Baby Boomer generation is 59-74 years old. And the ABS estimates that around 800 Baby Boomers are retiring every day. I want to buy a business so why do all these statistics about Baby Boomers matter?? This generation own 40% of all the small businesses in Australia. That is around 420,000 small businesses that need to change hands in the next decade. A whole generation of business owners is about to retire. This ‘Silver Tsunami’ will be one of the largest wealth transfers from one generation to the next. From your local mechanic to the smash repair centre, to the tyre wholesaler. Whole industries are going to have opportunities for buyers to take over these enduringly profitable businesses. See what businesses are for sale right now, near you:   Business For Sale around Australia Brisbane Business For Sale Sydney Business For Sale Melbourne Business For Sale Perth Business For Sale Adelaide Business For Sale Gold Coast Business For Sale Sunshine Coast Business For Sale Tasmania Business For Sale Online Business For Sale   Want to sell your business? Sell my Business online. Create a listing from $249 +GST. Sell faster with no Commission. Start getting enquiries today.

Taking your business online can have its benefits, but it can also increase the risk of scams and security threats. Follow our steps to help protect your business from cyber threats. A single cyber-attack could seriously damage your business and its reputation. 1. Back up your data Backing up your business’s data and website will help you recover any information you lose if you experience a cyber incident or have computer issues. It’s essential that you back up your most important data and information regularly. Fortunately, backing up doesn’t generally cost much and is easy to do. It’s a good idea to use multiple back-up methods to help ensure the safety of your important files. A good back up system typically includes: daily incremental back-ups to a portable device and/or cloud storage end-of-week server back-ups quarterly server back-ups yearly server back-ups Regularly check and test that you can restore your data from your back up. Make it a habit to back up your data to an external drive or portable device like a USB stick. Store portable devices separately offsite, which will give your business a plan b if the office site is robbed or damaged. Do not leave the devices connected to the computer as they can be infected by a cyber-attack. Alternatively, you can also back up your data through a cloud storage solution. An ideal solution will use encryption when transferring and storing your data, and provides multi-factor authentication for access. 2. Secure your devices and network Make sure you update your software Ensure you program your operating system and security software to update automatically. Updates may contain important security upgrades for recent viruses and attacks. Most updates allow you to schedule these updates after business hours, or another more convenient time. Updates fix serious security flaws, so it is important to never ignore update prompts. Install security software Install security software on your business computers and devices to help prevent infection. Make sure the software includes anti-virus, anti-spyware and anti-spam filters. Malware or viruses can infect your computers, laptops and mobile devices. Set up a firewall A firewall is a piece of software or hardware that sits between your computer and the internet. It acts as the gatekeeper for all incoming and outgoing traffic. Setting up a firewall will protect your business’s internal networks, but do need to be regularly patched in order to do their job. Remember to install the firewall on all your portable business devices. Turn on your spam filters Use spam filters to reduce the amount of spam and phishing emails that your business receives. Spam and phishing emails can be used to infect your computer with viruses or malware or steal your confidential information. If you receive spam or phishing emails, the best thing to do is delete them. Applying a spam filter will help reduce the chance of you or your employees opening a spam or dishonest email by accident. 3. Encrypt important information Make sure you turn on your network encryption and encrypt data when stored or sent online. Encryption converts your data into a secret code before you send it over the internet. This reduces the risk of theft, destruction or tampering. You can turn on network encryption through your router settings or by installing a virtual private network (VPN) solution on your device when using a public network. 4. Ensure you use multi-factor authentication (MFA) Multi-factor authentication (MFA) is a verification security process that requires you to provide two or more proofs of your identity before you can access your account. For example, a system will require a password and a code sent to your mobile device before access is granted. Multi-factor authentication adds an additional layer of security to make it harder for attackers to gain access to your device or online accounts. 5. Manage passphrases Use passphrases instead of passwords to protect access to your devices and networks that hold important business information. Passphrases are passwords that is a phrase, or a collection of different words. They are simple for humans to remember but difficult for machines to crack. A secure passphrase should be: long - aim for passphrases that are at least 14 characters long, or four or more random words put together complex - include capital letters, lowercase letters, numbers and special characters in your passphrase unpredictable - while a sentence can make a good passphrase, having a group of unrelated words will make a stronger passphrase unique - don't reuse the same passphrase for all of your accounts If you use the same passphrase for everything and someone gets hold of it, all your accounts could be at risk. Consider using a password manager that securely stores and creates passphrases for you. Administrative privileges To avoid a cybercriminal gaining access to your computer or network: change all default passwords to new passphrases that can’t be easily guessed restrict use of accounts with administrative privileges restrict access to accounts with administrative privileges look at disabling administrative access entirely Administrative privileges allow someone to undertake higher or more sensitive tasks than normal, such as installing programs or creating other accounts. These will be very different from standard privileges or guest user privileges. Criminals will often seek these privileges to give them greater access and control of your business. To reduce this risk, create a standard user account with a strong passphrase you can use on a daily basis. Only use accounts with administrative privileges when necessary, limit those who have access, and never read emails or use the internet when using an account with administrative privileges. Learn more about restricting administrative privileges. 6. Monitor use of computer equipment and systems Keep a record of all the computer equipment and software that your business uses. Make sure they are secure to prevent forbidden access. Remind your employees to be careful about: where and how they keep their devices the networks they connect their devices to, such as public Wi-Fi using USB sticks or portable hard drives - unknown viruses and other threats could be accidentally transferred on them from home to your business. Remove any software or equipment that you no longer need, making sure that there isn’t any sensitive information on them when thrown out. If older and unused software or equipment remain part of your business network, it is unlikely they will be updated and may be a backdoor targeted by criminals to attack your business. Unauthorised access to systems by past employees is a common security issue for businesses. Immediately remove access from people who don’t work for you anymore or if they change roles and no longer require access. 7. Put policies in place to guide your staff A cyber security policy helps your staff to understand their responsibilities and what is acceptable when they use or share: data computers and devices emails internet sites 8. Train your staff to be safe online Your staff can be the first and last line of defence against cyber threats. It’s important to make sure your staff know about the threats they can face and the role they play in keeping your business safe. Educate them about: maintaining good passwords and passphrases how to identify and avoid cyber threats what to do when they encounter a cyber threat how to report a cyber threat. 9. Protect your customers It’s vital that you keep your customers information safe. If you lose or compromise their information it will damage your business reputation, and you could face legal consequences. Make sure your business: invests in and provides a secure online environment for transactions secures any personal customer information that it stores If you take payments online, find out what your payment gateway provider can do to prevent online payment fraud. There are laws about what you can do with any personal information you collect from your customers. Be aware of the Australian Privacy Principles (APPs) and have a clear, up-to-date privacy policy. If your business is online, it’s a good idea to display your privacy policy on your website. 10. Consider cyber security insurance  Consider cyber insurance to protect your business. The cost of dealing with a cyber-attack can be much more than just repairing databases, strengthening security or replacing laptops. Cyber liability insurance cover can help your business with the costs of recovering from an attack. Like all insurance policies, it is very important your business understands what it is covered for. 11. Get updates on the latest risks Keep up with the latest scams and security risks to your business. Sign up for the Australian Cyber Security Centre's (ACSC) Partnership Program for access to up-to-date information on cyber security issues and how to deal with them. 12. Get cyber security advice Australian Cyber Security Hotline If you want to talk to someone about cyber security, the ACSC has a 24/7 Cyber Security Hotline. The hotline provides over the phone support to both prepare for and respond to cyber incidents. Learn more on the ACSC website or call 1300 CYBER1. Help for small businesses Australian small businesses can access individual support to grow their digital capabilities through Australian Small Business Advisory Services (ASBAS). The program offers small businesses low cost, high quality advice on a range of digital solutions including online security. You can also find non-government IT service providers or cyber security professionals by doing an online search. Tips to help you choose the right adviser Before you engage an adviser, it's important to be prepared and understand what your business needs are. Follow these steps to help you choose the right cyber security adviser for your business: Identify your business needs and what you would like your adviser to help you with. Our Cyber Security Assessment Tool can help you figure out what your needs are and give you a list of recommendations. Match an adviser with your business needs. Service providers can vary in the range and focus of cyber security services they provide. Use your business needs to match you with a relevant adviser. Ask questions and do your research. Cyber security experts should be able to provide references and proof that they are certified to do the job. Make sure your adviser is easy to contact. A cyber attack can happen at any time of the day so it's important your cyber adviser can respond to a cyber incident after hours. Ensure they understand your business. Some industries have specific requirements and regulations. Check that your adviser understands how your business operates and are used to dealing with businesses similar to yours. Ask your adviser what their plan is if something goes wrong. Will they work with you to develop a joint plan to activate in the event that you suffer a cyber security attack? Do they have a proven track record of getting a business through a cyber security incident? For more information visit www.business.gov.au

Our mission here at Business For Sale is to help you find the perfect Business to buy.This week we had 651 new businesses listed. Today we break down: Tips to save time searching Our latest magazine issue that got released in newsagents Plus some of the most interesting listings this week Hopefully your perfect business could be in this email…   Most Interesting Business For Sale this Week: Local Craft beer, Pizza and Cocktail bar! Established in 2015 in Hamilton, QLD this local bar has developed a loyal following with a mix of corporate and residential clientele. Price: $79,000 Creative Photography Studio in Sydney Full service photography studio in Sydney Northern beaches area. Price: $99k Honeys Bakehouse - Coming Soon Independently owned & operated Bakery in Perth, famous for vegan friendly range. Price: $265k Tyre Business in Country NSW For Sale Are You Looking For A Lucrative Business Opportunity In The Automotive Industry? $720k in profit. Price: $2.1m View all the latest Business For Sale listings near you New Print Magazine Released Business For Sale Magazine Find our latest issue in your local newsagent or read for free online here. This issue we explore franchises and businesses for sale plus how AI might affect franchising in the future. How to save time searching? Searching for a business can take hours and hours every day. But we are all busy and may have a full time job or other business. So we added a ‘Save Search Criteria’ option to all our search results. Now you can get emailed only listings that match your search. Search with the filters for your preferred category and location here. Click ‘Save Search Criteria’ at the top Create your buyer account and choose daily or weekly emails Your perfect business hopefully gets sent right to your inbox If you have any problems setting up your search criteria, let me know and I can help you set it up. Business For Sale around Australia Search Brisbane Business For Sale Search Sydney Business For Sale Search Melbourne Business For Sale Search Perth Business For Sale Want to sell your business? Sell my Business online. Create a listing from $249 +GST. Sell faster with no Commission. Start getting enquiries today. Till next Tuesday! Sam from Business For Sale

Use social media to market your business and connect with your customers. Learn about the different types and the pros and cons of using social media. About social media Social media is online communication that allows you to interact with your customers and share information in real time. You can use social media to: reach your customers better create online networks sell and promote your products and services. However, there is risk in using social media for your business. Tread carefully and learn both the pros and cons before you start. Benefits of social media for business Social media can help you engage with your customers and find out what people are saying about your business. You can also use social media for advertising, promotional giveaways and mobile applications. Social media can help your business to: attract customers, get customer feedback and build customer loyalty increase your market reach, including international markets do market research and reduce marketing costs increase revenue by building customer networks and advertising develop your brand exchange ideas to improve the way you do business recruit skilled staff, for example through job networking sites like LinkedIn increase traffic to your website and improve its search engine ranking keep an eye on your competitors. Disadvantages of social media Social media may not suit every business. If you launch your social media presence without planning, you could end up wasting valuable time and money. Disadvantages of social media include: needing additional resources to manage your online presence social media is immediate and needs active daily monitoring you may get unwanted or inappropriate behaviour on your social media site the risk of getting negative feedback, information leaks or hacking the risk of having false or misleading claims made on your social media (by your business or a customer). These claims can be subject to consumer law. For example, if a customer or fan posts misleading or deceptive information, particularly about competitor products or services, you might receive a fine. To avoid the risks, have a social media strategy with policies and procedures in place before you start. Types of social media Not all social media platforms will be right for your business. Save time and effort by choosing social media platforms that your target audience will use. Below is a brief guide to help you understand some of the options available. Social networking sites Job networking sites Blogs Micro-blog Video sharing sites Podcasts and vodcasts Social-news communities Private social network services Location-based services Create your social media strategy Doing the ground work before you start is critical to a successful social media presence. Develop your social media strategy to: create compelling content engage with your customers at the right time generate sales. A social media strategy describes how your business will use social media to achieve its communications aims. It also outlines the social platforms and tools you’ll use to achieve this. Follow your strategy and don't overwhelm your customers with unnecessary posts. Remain focused on reaching your specific goals and tailor your messages around these. For more information visit www.business.gov.au

Often businesses that are going to be sold in the near future can be identified by how motivated the seller is. Sellers that might be willing to sell, are those: Who are looking at retirement, or are ill, and need an exit. Owners that have been working in the business for a long time. Companies that are recorded in regulator notices which have poor financial performance and already have an administrator appointed. Companies that have already proceeded into liquidation. Companies or businesses looking for funding. Businesses that are going through changes, either with new leadership, new products or have just announced a  new strategy. To find a motivated seller Businesses: Look for businesses listed for sale in trading posts or magazines such as Australian Business for Sale. Speak to your accountant or lawyer they might have direct contact with motivated sellers. Network at industry events and get to know people Sharon RobsonAntler Legalwww.antlerlegal.com.au The following extract has been taken, in part, from the book, ‘Entrepreneur Know How – Mindset and Winning Steps for Buying a Business,’ written by Sharon Robson (Available through Amazon and select bookshops). See: www.entknowhow.com/the-bookstore/ 

Every ten years a new technology emerges alongside a group of strong advocates who boldly claim that it is going to change the world and radically shift the way we do business. However, the hype often leads to disappointment when adopting or scaling this new tech is revealed to be too challenging. Artificial Intelligence (AI) is one of the most talked about buzzwords in the business world today.  Many would link this to the release of ChatGPT in November 2022. The generative AI captivated and unsettled the general public due to its uncanny ability to create detailed written answers on essentially any topic, extremely quickly. While the direct commercial applications of a generative AI like ChatGPT may not be immediately apparent for franchise systems – there is a growing awareness within the franchising community that companies who successfully incorporate complex analytics and data-driven intelligence into their business have an advantage over competitors which do not invest in these capabilities.  AI represents an opportunity for franchise systems to streamline operations, improve their customer experience, and drive growth. It can also help franchisors and franchisees make better informed decisions.  Some areas where AI and machine learning can help franchise systems include:  predictive analytics  more efficient operations   increased marketing effectiveness One franchise which is notable for embarking on a significant digital modernisation journey to improve their internal processes and systems is Bakers Delight. The company moved in 2021 to adopt an AI-driven platform which would enable data to be captured and analysed more efficiently.  Through predictive analytics, Bakers Delight can more readily identify the likelihood of future outcomes based on present and historical data – thereby enabling them to make more informed decisions. Furthermore, with greater access to easy-to-understand data on the local level, franchisees can better manage their inventory, or gain insights into customer behaviour.  Another Australian company which is leveraging AI is Step One, a direct-to-consumer online men's underwear retailer. They have been using generative AI to turbocharge their marketing. Specifically, they have regularly used ChatGPT to develop dozens of iterations of copy for social media advertisements – with analytics providing real time feedback on the best performing version. The benefits of this marketing approach to a franchise system are clear.  Through these examples we can see how AI can be leveraged to improve commercial outcomes and reduce costs, however many businesses wishing to embrace this new technology are confronted with a deceptively simple question – ‘where do we start?’ First, your business needs to evaluate its current opportunities and problems. Once these are clearly understood, decision-makers must determine if AI can aid in problem solving or in seizing opportunities. AI should be used to support your business strategy, not be your business strategy. Second, internal stakeholders must be consulted so they can join your digital transformation journey. Long-term success with AI is driven by people, not technology.  Creating an organisational culture that celebrates failure as learning, promotes the acquisition of new skills, and fosters collaboration is essential. These will help create a mindset which views the embrace of new technology, such as AI, as an opportunity and not a hindrance.  Bringing franchisees on this change journey is critical. According to the Franchise Relationships Institute, the average tenure of a franchisee is roughly six years – while the average tenure of franchisor staff is only around three and a half years. As a result of this, franchisees can sometimes be wary of new initiatives from their franchisor.  This business tension must be navigated successfully if the full benefits of adopting AI are to be realised in your franchise network.  Once a decision to leverage AI has been made and stakeholders have bought in to the new direction, your business moves to the third step – implementation. True value does not come from just using a new technology. It comes from using new technology to reimagine and improve existing processes. Using new capabilities granted by AI, your business should seek to solve existing problems or to seize new opportunities.  Simply creating an AI-enabled twin of your existing processes will not drive significantly improved outcomes.  As the peak body for the $172 billion franchise business segment, which employs more than 565,000 people, the Franchise Council of Australia seeks to represent not only franchised small businesses, but successful businesses. A key part of this is ensuring that franchise systems are equipped with knowledge and skills that help ensure they are well positioned for the long-haul. AI technology is here to stay and franchise systems should actively consider leveraging this increasingly invaluable business tool. The Franchise Council of Australia is the peak industry body for the $172 billion Australian franchise sector. We represent franchisors, franchisees, business advisers and small-business owners who collectively employ more than 565,000 Australians. For more information visit Franchise Council of Australia website www.franchise.org.au