Andrew Rogerson's Blog, page 30

How to buy a franchise

In this article we’ll cover a couple of basics on how to buy a franchise. For example, a South Sacramento retail center at Florin Road and Franklin Boulevard recently sold to a LA-based retail and management firm. Tenants at the center include Walmart Neighborhood Market, 99 Ranch Market, 99 Cents Only, Ross Dress for Less, Baskin-Robbins, Sally Beauty, and Payless Shoe Source. Some of these are franchises, and frequently entrepreneurs will see a new or renovated retail space as a great business opportunity for a possible franchise.

In some instances, these people are unprepared to be franchisors. The same can be said for those seeking knowledge on how to buy a franchise. Becoming a successful franchisor requires capital, strategic planning, a strong management team, and a consistently successful business model that can be replicated. And if you are buying a franchise, you’ll want to be certain that you see these attributes in a franchisor.

A Profitable Business Model.  There are lots of small businesses have the image of being financially profitable, but don’t consistently (or ever) turn a profit. A franchise needs to have a business that will consistently give franchisees a lucrative opportunity after they pay the franchisor the franchise fees.

A Reproducible Business Model. Franchisors need to have the requisite systems in place that can be easily replicated and implemented by franchisees who are coming into the business arrangement with varied backgrounds and skill sets that are different than those of the original business founder. So both potential franchisors and franchisees need to see that the unique qualities of the founder—his or her expertise, charisma, personality, or sales skills, along with the location of the original business, or the business’s long-standing clientele can be consistently and repeatedly duplicated.

[image error] Get an edge on your competition and learn how to buy a franchise now. Photo by arabella

The Franchise Network. Find out if the business will benefit from the economies of scale or the collective purchasing power of a large number of franchisees. There are some businesses that are better prospects for franchising due to the fact that they get a big boost from the power of regional and national advertising or the ability to work with Fortune 500 companies through the scale that comes with a vast franchise system. Is there or is it feasible to have such a network in place?

The Market of Potential Franchisees. A franchisor is looking to sell franchises, so there must be a target market. You should have a list of those who would make for strong initial franchise owners. As a potential franchisee, you’ll want to judge how existing franchise are faring. Ask those initial franchisees about the process and if their businesses are thriving.

Management. It is important for both franchisors and potential franchisees that the management team has the ability and resources to provide the necessary training, marketing, and support services to franchisees. That’s part of what’s baked into the deal, and a large component of the attractiveness of the franchise.

Capital. To set up and run a successful franchise, the company need the capital to fund the cost of a becoming a franchisor and supporting the system. Launching and operating a franchising program is expensive, and the initial franchise fees may not be enough to pay for the expenses incurred as a franchisor. Franchisors usually lose money until their franchise system has operating franchises. Franchisees should look into the capital investment of the franchisor.

If you are looking to purchase a franchise, analyze these items to make sure that your prospective franchisor has the capital, planning, management team and support, along with a consistently financial successful business, before you take any further action. Work with an experienced business broker who can help you with all of these concerns. Andrew Rogerson is a business expert and has negotiated hundreds of franchise transactions in cities throughout the Sacramento Region. He’s shared his know-how on how to buy a franchise in Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and Cameron Park. Andrew can help you with deciding on an appropriate franchise and location in the area.

Spend some time talking with professional business broker Andrew Rogerson. He knows about how to buy a franchise and businesses in the Sacramento area. Please visit our website Services. You can also get in contact with Andrew via email or call him at (916) 570-2674.

The post How to buy a franchise appeared first on Sacramento CA Business Intermediary by Andrew Rogerson.

Medical Practice Goodwill

Medical practices in Sacramento, CA and around the country have a variety of intangible assets, including patient medical records, a workforce in place, and non-compete agreements. These assets are usually referred to as “goodwill.” Medical practice goodwill can be an important element in valuing a medical practice when an owner is preparing to sell.

How Does a Practice Acquire Goodwill?

The most significant component in calculating a medical practice goodwill  typically is the expected earnings of the practice. As is the case on Wall Street, the companies with the highest expectations for future earnings are more valuable and will have more highly valued intangible assets.

Some practices for family physicians, internists, and pediatricians can be valued with net incomes between $400,000 and $500,000 per physician. These practices have a lot of medical practice goodwill that’s driven by those earnings. In contrast, there are practices in those specialty areas where the practitioner earns much less than $100,000 per year. This second group of medical practices generally have much less goodwill.

Of course, medical practice goodwill is an extremely subjective part of valuing a medical practice. In addition to anticipated earnings, other factors that influence goodwill include the competition level, the types of patients at the practice, physician work habits, the third-party payer mix and fee schedules, the location of the medical practice, other staff, and marketability. For instance, if a practice is in a location where the patient-to-doctor ratio for the specialty is at or below average—particularly where physicians earn a better than average income—the practice’s goodwill is apt to be more valuable. Compare this with a practitioner who wants to start a new practice or come into another practice. He or she is less assured of earning a typical income for that specialty. But in an area with a short supply of physicians in particular specialties, it can be less difficult for a new doctor to start a practice or join another and earn a good income. In those circumstances, even if physicians earn better than average compensation for their specialty, there may be some goodwill in the practice. In many instances, these practices are found in medically underserved areas. That’s due to the fact that they’re not traditionally desirable places for physicians to live and work. This could be a rural area with less educational, social, and cultural attractions…or in an inner city with a lower socioeconomic patient base and higher crime rates.

Which Practices Have More Goodwill?

Business experts like Sacramento’s Andrew Rogerson will tell you that medical practices with a large number of patients with chronic illnesses have more goodwill than those with fewer of these patients. By way of illustration, an internal medicine practice with an above average number of diabetic patients will be more likely realize more income from these patients (along with greater goodwill) than practices with generally healthy patients.

More Work Hours Means More Goodwill

Research has shown that there’s a direct connection between a physician’s income and the time he or she spends working at the practice. In light of the fact that medical care is typically reimbursed by the number of services provided, the more hours a doctor works and the more patients treated—the more services are provided. Of course, individual results may vary, but a practice group that establishes expected work schedules and practices more hours, usual sees more goodwill in their practice.

A practice with a strong payer mix will likely have more goodwill. Medical practices with a lot of Medicaid or self-pay patients typically has lower collections than practices that are able to attract patients with desirable insurance coverage. Thus, there could be a significant difference in goodwill for two practices providing the same services to the same number of patients.

[image error] Patients may relax, but you should pull more hours. Image by stillpointca
Medical Practice Goodwill by Staffers and Patient Retention After a Sale

Non-physician employees in a medical practice have an impact on its goodwill, particularly those practices that employ physician assistants (PAs) and nurse practitioners (NPs). Practices that use PAs and NPs appropriately will realize an income benefit because these individuals will generate income above their pay and cover their associated overhead.

Primary care physicians in family practice, internal medicine, and pediatrics have shown to be extremely marketable, with estimates stating that a physician who purchases a practice from another primary care doctor will retain roughly 85% of the practice’s patients. However, referrals for specialty and subspecialty practices has some valuation issues: a physician who purchases a solo practice of a doctor dependent upon referrals will have a less certain patient transition. But the bigger the specialty or subspecialty practice being purchased, the greater the certainty the buyer will have that the referral relationships and patients will stay with the practice when the new owner takes over. In addition, those practices that provide ancillary services typically have more value than those that don’t.

Start to Sell Your Medical Practice Today

Start your preparations and get expert advice on determining your practice’s value and the optimal selling price—because the price depends to a great extent on how the business sale is handled. You want a well-conducted business marketing campaign for a successful sale at the best price, not fire sale.

Work with an experienced business broker who can help you with all of these issues. Andrew Rogerson is a business expert who has negotiated hundreds of medical practice sales in cities throughout the Sacramento Region. He’s helped numerous physicians sell in Elk Grove, Rocklin, Folsom, Davis, Citrus Heights, Rancho Cordova, Roseville, Cameron Park, and El Dorado Hills.

Spend some time talking with professional business broker Andrew Rogerson. He knows about medical practice sales and complex business transactions in the Sacramento area. Please visit our website Services. You can also get in contact with Andrew via email or call him at (916) 570-2674.

The post Medical Practice Goodwill appeared first on Sacramento CA Business Intermediary by Andrew Rogerson.

Franchise buying from another perspective

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Franchise buying from another perspective

You know, it never hurts to analyze a situation from a different perspective.

In many cases, you’ll hear about all kinds of advice telling you what to do, how to do it, and things to remember. If you are thinking of buying a franchise, this article contains a few “Don’ts.”

Don’t underestimate the impact of your potential decision on your family. While you’re probably calculating profit and loss, inventory, and prospects seven ways to Sunday, you shouldn’t underestimate or miscalculate the effect that this business will have on your immediate family if you decide to move forward. This franchise is going to need a big chunk of your time for the forseeable future to get it running and keep it going.
Because of this time commitment, you should talk with your spouse and children about what this means. It will help everyone to understand your thinking if you take the time to tell them about your rationale for taking on this opportunity. Also, explain franchising to them and risks that come into play when you go into business. Be ready to listen to their feelings and worries. You’re going to need their support, so make the investment of time to be sure that they can see your vision the way you do.
Don’t be cheap. In for penny, in for a pound, the old adage says. A franchise can cost tens of thousands of dollars, which can be a lot of money. Thinking of that saying another way, something worth doing is worth doing right. That means don’t scrimp on some of the details that can really result in serious consequences.
Work a consultant to create a Franchise Business Plan. This can really help you if you’re planning on applying for a small business loan. Approval is much more certain if you submit a detailed business plan with your loan application. It shows that you’ve done some preparation and are taking this endeavor seriously. A Business Valuation Consultant can help you to make sure that you are addressing all of the necessary and critical issues. This expert can also help you select the proper business entity type for your franchise, and alert you to the California franchise laws. He can also review the franchise materials, such as the franchise contract.

In addition, you should be familiar with numbers or spend the money to hire an Accountant or CPA with a background in setting up small business payrolls and filing small business taxes.
Don’t miss the opportunity to visit company headquarters. If you receive an invitation from the franchisor to tour the company’s headquarters, don’t say no, but do so only when you’re near your decision, so that you don’t waste everybody’s time. If go, you’ll get the chance to personally meet with the people with whom you’re be interacting every month. Ask questions and make contacts in each department. This experience can be invaluable, as you’ll get an understanding of how the franchisor operates and what they will do to support your franchise.

So don’t be afraid to ask for help, to ask questions, and be prepared. Your franchise will be that much farther ahead if you do these don’ts.

To discuss franchise opportunities in the Sacramento area, click this link to our website Services and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew Rogerson or call our office at (916) 570-2674.

The post Franchise buying from another perspective appeared first on Sacramento CA Business Intermediary by Andrew Rogerson.

May guests on 105.5FM and Money 2.0

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May guests on 105.5FM and Money 2.0

The response to my weekly radio show on 105.5FM called Money 2.0 has been terrific. I’ve been receiving inquiries from guests who would like to share their business story or information, calls from listeners who have a question about a product or service and lots of other positive feedback. As a result of the feedback, from the beginning of May I made a change to the format and instead of having just one guest per show I now have two. Having two guests per show means twice the subjects and information I have been able to share as each guest covers a topic that will help make a business better and stronger be it with real success stories, new information, a product or service or simply encouraging those that own a business or are planning to do so. As I like to say, this show is about where Main Street meets Wall Street.

If you want to hear one of the guests on my shows, it is no more than a click away as each show is archived and instantly available to hear by simply following this link to my website – 105.5FM and Money 2.0 with your host Andrew Rogerson

The guests for my show on May 07 were Jim Pelley and Adam Frick from Ulink Network and Neal Weiss from Rhino 7. Jim and Adam are the proud owners of a new networking business they have put together called Ulink Network. They started their business in 2010 and now have over 350 members in more than 30 chapters; mainly in Northern California but moving out nationally to Florida, Texas and Washington. Ulink Network is LinkedIn and technology on steroids as Adam has developed a unique app for your mobile phone that allows each user to find a member and the type of product or service they offer and send a message introducing a referral or new piece of business to them.

Neal Weiss is a Franchise Developer with Rhino 7. Rhino 7 is a franchise development company that allows a franchisor to hire them and then let them focus on interviewing and qualifying potential franchise buyers for a concept they represent. Rhino 7 is active in the market with a franchise called Pro Martial Arts and Neal and I just finished working with a husband and wife franchise buyer that bought 5 locations with Pro Martial Arts in the Sacramento area.

Right now there is enormous interest from those in their late 30’s to early 50’s that are working in Corporate America and are tired of the Corporate grind and want to build their own business or franchise to be in charge of their future and then plan to sell and fund their retirement. If that sounds like you, give me a call as there are about 100 different franchise concepts available I can introduce to you and help you find the right one.

The guests for my show on May 14 were Ron Crane from DCA Partners and Elza Gennicks. Ron is the Managing Director with DCA Partners that is based in Roseville and they focus on three primary services for their clients; larger Mergers and Acquisitions, Private Equity and Advisory services. Their Advisory services are for a business that has a problem due to a decline in sales that’s putting pressure on their bottom line or too much growth too quickly the company is struggling to manage.

Elza is with a national sales franchise development company that represents three concepts for franchise buyers. The first concept is Best In Class Education Centers which is a supplemental learning center for school-aged children that need help with Math or English as well as help with SAT and ACT preparation. Total investment is about $100,000. The second concept is Native New Yorker Restaurants which was originally opened in Arizona by a husband and wife who lived in Buffalo, New York and decided that feeding their family with food they ate and loved in New York was their entrepreneurial path. Total investment varies with the size of the restaurant but starts at about $500,000. The final concept is Kalologie 360 Spa which combines a full array of spa services and products and was named an American Top-10 Spa destination by Elle Magazine. Total investment starts at $270,000.

The guests for my show on May 21 were Brent Smith from SEDCorp and Curtis Kroeker from CoStar Group which includes the online website, BizBuySell.

Brent is the CEO of SEDCorp which is based in Auburn, CA. SEDCorp or the Sierra Economic Development Corporation provides services to small businesses including training and third party finance options which also include SBA loans. Part of their service offerings now includes working capital loans at much more affordable rates. If you were in need of working capital an option available was factoring.

Curtis is the President of Marketplace Verticals for CoStar Group, Inc which is a long title but his responsibilities including two national leading websites BizBuySell and BizQuest. Both sites display businesses for sale and tell what’s happening with the buying and selling of businesses.

The show guests on May 28 were Kasey Cotulla from River City Printers and RJ Cicchetti from Massage Heights in Roseville. Kasey has an exciting business story. Many wrestle with the idea of becoming a business owner but for different reasons decide it doesn’t make sense to them. That was not the case with Kasey. After 25 years working in the printing industry and starting out as the janitor he came to the conclusion that the only difference between the owner and an employee was their ability to manage risk. So, about 3 years ago in the middle of the economic recession Kasey and his partner, Jim took out an SBA loan so they could buy Delta Web Printing. The printing business is very challenging as it requires a large capital investment. If you buy the wrong equipment and cannot meet your customer needs it will send you bankrupt. After their initial investment and success in Delta Web Printing, they decided to buy River City Printers. Although it was in the same industry, this print shop has a different focus and customer base so it provides some diversification. If that wasn’t enough, in April of this year another acquisition was made and this time it was Paul Baker Printing in Roseville. With the help of one SBA loan, Kasey is a true entrepreneur in a difficult, challenging and ever changing industry. As Kasey likes to say, he’s doing well for a forklift driver from Galt.

RJ Cicchetti is the Regional Developer with the franchise called Massage Heights. Massage Heights is a membership based service that helps the aging stressed out population keep some balance in their lives with therapeutic massage and related wellness services. RJ is an Area Developer with Massage Heights which means he owns a territory in Northern California and gets to help franchisees join their system and build and grow their franchise location.

If you would like to listen to any of the shows featuring each guest and their topics mentioned above, it’s no more than a click away. Each show is recorded and available to listen or download from my website by clicking the following link:

105.FM and Money 2.0 with radio show host Andrew Rogerson

Please join me each Tuesday at 10.00am on radio station 105.5 FM and Money 2.0 where my hope is that you learn something and enjoy…good things.

The post May guests on 105.5FM and Money 2.0 appeared first on Sacramento CA Business Intermediary by Andrew Rogerson.

Business for Sale Looks Good

Here’s some great news to start the New Year: the small business for sale market is experiencing a major spike in activity. According to BizBuySell’s 2016 third quarter Insight Report, after consecutive months of steady but modest growth, the number of closed small business transactions skyrocketed 15% from this time one year ago. So, provided there are no major hiccups, 2016 looks to be on its way to setting a new record for annual closed small business transactions.

Transactions and Listings at High Levels

The report notes that third quarter transactions are at the highest level of small business for sale activity since the second quarter of 2008, immediately prior to the recession. This healthy activity level shows a business-for-sale environment that is beneficial for both buyers and sellers.

In addition to this promising news, the Q3 Insight Report provided some other notable findings. One of these was the fact that sellers are continuing to supply the market with a record number of listings. The supply rose 5.1% from Q3 of last year (2015). This jump in the number of listings may be a result of some sense of urgency felt by those small business owners who may be less optimistic about their sale prospects in 2017. A recent industry confidence survey of buyers and sellers found that less than 50% of sellers believe that they could wait another year and realize a higher price for their business. The survey pointed to retiring baby boomers as especially motivated to sell immediately instead of delaying a sale or risking a wait through another recession.

Business for sale: Sales Happening More Quickly

Research also shows that with buyers and sellers both motivated to act, sales transactions are occurring at a faster pace. For example, a business sold in Q3 was on the market for an average of 171 days, which is a 4.5% decrease from the 179 days on the market in Q3 of 2015. It’s also a steady drop from Q1 of 2016, when the average was 188 days on market.

[image error] Business for sale? A bright future is found in your fortune cookie. Image by Jessica Gale
Price Negotiations Balanced

The recent asking and final sale prices studied evidences that the current market is increasingly more balanced, a shift from the aftermath of the recession when the business for sale market was more in favor of buyers due to tight market conditions and limited access to capital.

The report noted that the median asking price for small businesses increased from $200,000 in Q2 to $216,000 in Q3, and the median sale price was up over 7% year-over-year to $199,000. In addition, strong business financials are allowing sellers to justify their higher asking prices, with the median revenue of sold businesses in Q3 up over 4% from 2015, and the median cash flow up about 6%.

Looking forward, many experts like business advisor Andrew Rogerson in Sacramento, believe that this recent activity shows that momentum will continue, and 2016 will wind up being a strong year overall for business transactions.

Contact an Expert Business Intermediary

Andrew Rogerson serves business and franchise owners, as well as those looking to purchase a business or franchise throughout Southern California and Northern California including areas like San Diego and Orange Counties, the Los Angeles metro area, the California Central Valley, San Francisco Bay Area, Sacramento County, Coastal California, and Sierra Nevada.

If you have questions about business opportunities in and around Sacramento, Andrew can help answer your questions. Take some time to speak with Andrew about business transactions or visit our website Services. Contact Andrew via email or call him at (916) 570-2674.

The post Business for Sale Looks Good appeared first on Sacramento CA Business Intermediary by Andrew Rogerson.

New Sacramento Franchise opportunity

Dean Christopher, the owner of Wild Garlic in Northern Nevada, is looking at franchise opportunities for his pizza restaurants. He recently explained what’s involved. Among the ingredients for franchising, he says, are growth, timing, and location.

Christopher wanted to start franchising, but wisely said he wanted to make sure he was prepared. And he says he didn’t want to own every restaurant.

“I would rather show people how to do this business and let them go,” he explained.

Franchise Philosophy

Christopher says that his idea of franchising is to one day to sell a store to a manager. That’s been a successful model for franchises like Dutch Brothers Coffee. Wild Garlic locations now include the Reno-Tahoe International Airport, Reno Midtown, and downtown Reno. Christopher tries to distinguish his product in the pizza market and cares more about the success of locations rather than the quantity. Understanding your market and delivering consistency every day is the key. The heart of the Wild Garlic market, he remarked, is families and young people.

With the Wild Garlic franchises, the goal is to set up each location to be successful in its own right. Christopher commented that restaurants that try to be the most popular probably won’t be around long. With that in mind, the precise formula for the franchising and growth direction of Wild Garlic will vary with each location and market. Sacramento, Boise, and Las Vegas, along with a location in Mexico are on the drawing board; however, Christopher says he’s not in a hurry but wants to find “that next person.”

Franchise Preparation

Like Wild Garlic, preparation for a franchise is critical. Think about these questions and determine if you’re the right person to be in a franchise.

If you think you’re ready to purchase a franchise, give yourself a personality test and see if you can follow the franchise rules and operate within a highly regulated system. Is that you? At the same time, assess your strengths and determine if you fit within the industry of the franchise you have in mind. Sure, you eat pizza, but have you run a restaurant or worked in the food service industry?

Next, do some homework. Get some basic information on the ABCs of franchising and speak with a knowledgeable franchise consult like Andrew Rogerson in Sacramento. Also, speak with franchisees about their franchise experiences.

Make sure you can afford to buy. There’s more expense beyond the minimum requirement for buying a franchise, such as the franchise fee and the cost of equipment. Start-up costs will take a financial toll to get a franchise up and running.

Contact a Business Expert

Finally, if you have a business and accounting background and are comfortable reading a balance sheet, you’ve insured a past business, and you’ve negotiated contracts, you may not need an experienced business consultant or intermediary. But for the rest of us, ask a seasoned business intermediary like Andrew Rogerson to review your financial health and how it will be affected by operating a franchise.

Andrew is a business expert and has worked with franchisors and franchisees in cities throughout the Sacramento Region, like Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and Cameron Park. Andrew can help you with deciding on an appropriate franchise, your location in the Sacramento region, competitive intelligence, financing, in addition to providing answers to all of your questions.

Take the time to speak with Andrew about buying a franchise or determining how to franchise your business. Please visit our website Services. You can also get in touch with Andrew via email or call him at (916) 570-2674.

The post New Sacramento Franchise opportunity appeared first on Sacramento Ca Business Intermediary | Rogerson Business Services by Andrew Rogerson.

Largest Sacramento area Accounting Firm Merger

Roseville-based Gallina LLP announced it’s merger into Minneapolis-based CliftonLarsonAllen LLP. The area’s biggest firm based on the number of local CPAs says it’ll be effective the first of the year.

Gallina has more than 300 employees in 12 offices. Those are in California, Nevada, Utah, and Washington. CliftonLarsonAllen employs over 4,500 professionals, with more than 1,800 certified public accountants in its 100+ locations nationwide. Gallina was founded in Sacramento in 1972 by Sam Gallina. They perform accounting for clients in the construction and building industries, as well as accounting and audit services to other non-publicly traded companies.

“By joining CLA, we have an ability to better serve our clients by bringing them a greater depth of service offerings through more robust resources,” said Larry Taylor, Gallina managing partner, in the news release.

[image error] The big merger news have the whole Sacramento area holding its breath. Image by quicksandala
Selling a CPA’s ownership interest

This news brings us to what experts say is a critical part of a CPA succession plan. It’s the sale or transfer of the selling CPA’s ownership interest and the method by which the value of that interest determined. A frequent issue in accounting firm sales concerns the multiple of billings, which is used to determine the sale price. This is determined by four main factors: (1) amount of cash, if any, paid upfront; (2) the retention period length; (3) the deal structure’s profitability for the buyer; and (4) the duration of the payment period.

The multiple is produced by the combination of these factors. For example, the less money that put upfront, the longer the payout and retention periods will be, and the more profitably will be structured for the buyer, meaning a higher multiple. In contrast, if more money is placed upfront, there will be shorter payout and retention periods and a less profitable structure for the buyer, resulting in a lower multiple.

There are other factors that will also impact the sale price of a CPA firm. For instance, higher-quality firms—those with big clients and higher billing rates and realization typically will achieve a higher value. If a CPA is in a market where there are several accounting firms looking to buy CPA practices, the demand for the business will be greater, and the value is higher. With that in mind, there have been several locally based accounting firms that have been acquired in the last few years, with larger regional and national firms seeking to expand into the region. This might be the right time to consider selling your accounting business.

Merger emerging as a dominant trend

According to a recent AICPA Private Companies Practice Section (PCPS) Survey, mergers and acquisitions activity at CPA firms is strong, with half of multi-owner firm leaders stating they have been in active merger discussions over the past 24 months.

Work with an experienced business broker who can help you with an accounting firm sale. Andrew Rogerson is a business expert and has negotiated hundreds of business transactions in cities throughout the Sacramento Region. He’s helped to set up franchises in Cameron Park, Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and throughout the region.

Spend some time talking with professional business broker Andrew Rogerson. He knows about franchises and businesses in the Sacramento area. Please visit our website Services. You can also get in contact with Andrew via email or call him at (916) 570-2674.

The post Largest Sacramento area Accounting Firm Merger appeared first on Sacramento Ca Business Intermediary | Rogerson Business Services by Andrew Rogerson.

California’s Minimum Wage Increase

California employers must remember that starting on January 1, 2017, the state Minimum Wage will increase to $10.50 per hour. This is the first stage of the law that was passed in April 2016 which mandates that California adopt a $15 state minimum wage by 2022.

The change in minimum wage to $10.50 per hour on January 1st applies to businesses with 25 or more employees. The state minimum age will increase annually until it reaches $15 per hour in 2022.

Delayed Compliance for Small Businesses

The new law acknowledges small business contributions, defined as those companies with fewer than 25 employees, to the state’s economy, and will permit these businesses more time to adopt the wage increases for their staffs. The increase will be delayed a year for employers with 25 or fewer employees, from January 1, 2018, increasing annually to $15 on January 1, 2023.

Exceptions to California’s Minimum Wage Increase

There are some exceptions for employees exempt from the minimum wage law. This includes outside sales representatives; those persons who are the parent, spouse, or child of the employer; and apprentices regularly indentured under the State Division of Apprenticeship Standards.

In addition, there is an exception for learners. These are individuals of any age in their first 160 hours of employment in occupations in which they have no previous similar or related experience. Learners may be paid not less than 85% of the minimum wage rounded to the nearest nickel during that time period.

[image error] California’s Minimum Wage rises to more than just peanuts. Image by Jane M Sawyer

The law also has granted exceptions for employees who are mentally or physically disabled (or both) and for non-profit organizations, such as sheltered workshops or rehabilitation facilities that employ disabled workers. These individuals and organizations may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage.

Also, the scheduled increases may be temporarily suspended by the Governor if certain determinations are made.

Federal and State Minimum Wage

The majority of California business owners and employers are subject to both the federal and state minimum wage laws. Plus, some cities and counties may also enact their own minimum wage rates. Several cities, like Berkeley, Cupertino, Emeryville, Los Altos, Mountain View, Oakland, Palo Alto, Richmond, San Francisco, San Jose, San Mateo, Santa Clara, and Sunnyvale in Northern California have enacted higher minimum wages.

In situations where there are multiple, conflicting requirements for minimum wages in effect for an area by different government sources, the employer is required to follow the stricter standard—in other words, the wage that is the most beneficial to the employee. As a result, because California’s current law requires a higher minimum wage rate than is required by federal law, all employers in California who are subject to both laws must pay the state minimum wage rate, unless their employees are exempt under California law. Likewise, if a city or county has adopted a higher minimum wage, employers must pay their employees the local wage where it’s higher than the state or federal minimum wage rates.

The minimum wage is a statutory requirement for company owners; it can’t be waived or bargained away by any agreement. That includes collective bargaining agreements.

The California Department of Industrial Relations reports that there are about 7 million hourly workers in California, and roughly 2.2 million of these workers earn the minimum.

Time to sell your business?

Andrew Rogerson serves business owners and prospective business owners throughout Southern California and Northern California including areas like San Diego and Orange Counties, the Los Angeles metro area, the California Central Valley, San Francisco Bay Area, Sacramento County, Coastal California, and Sierra Nevada.

If you have questions about the new minimum wage law, business management, entrepreneurship, and business opportunities in and around Sacramento, Andrew can help answer your questions. Take some time to speak with Andrew about business transactions or visit our website Services. Contact Andrew via email or call him at (916) 570-2674.

The post California’s Minimum Wage Increase appeared first on Sacramento Ca Business Intermediary | Rogerson Business Services by Andrew Rogerson.

If Death and Taxes are Certain, Manage Your Taxes

One of the biggest headaches for the single business owner is taxes. Because there’s no Accounting Department down the hall or a benefits coordinator on the fourth floor of your company in Sacramento, it’s up to you to manage this important job.

Without the resources of a larger employer to manage your taxes, Social Security, and other benefits, you must take care of your books and calculate the amount you owe the government based on your business earnings. If you’re in business for yourself, your taxes must be paid as you earn or receive income throughout the year by estimated tax payments. The estimated tax is used to pay income tax, as well as other taxes like self-employment tax and alternative minimum tax.

If you fail to pay enough tax through estimated tax payments, you could be charged a penalty, and you could also be charged a penalty if your estimated tax payments are late—regardless of the fact that you’re due a refund when you file your tax return.

While it may seem easier to put this task off until the traditional tax season of March and April, it’s really in your best interest to pay the IRS in periodic payments.

Get Organized To Manage Your Taxes

A crucial part of this—and just about any big job—is to get organized.

For starters, the estimated tax payments are broken up into quarters: January-March, April-June, July-September, and October-December. A good system is to keep a file, both electronically and in hard copy, for each quarter. Record your profits, losses, and expenses. You should set aside money regularly to ensure you have sufficient funds to cover the amount you owe. You may want to have an accounts receivable account and another for taxes. Figure that roughly 30% of every deposit should be earmarked for Uncle Sam and transferred to that second account. When you have your financial documents in order, estimating the tax payment believed to be owed will be easier to understand. Consistently budgeting for taxes will make the on-time submission less of an issue and make for fewer tax headaches.

The IRS determined the payment schedule for 2016 was April 18th and June 15th, along with September 15th, with the last quarter’s payment due on January 17, 2017. However, if you are ahead of the game and file your 2016 tax return by January 31, 2017, paying the entire balance due with your return, you’re not required to make the fourth quarterly payment due January 17, 2017.

Making a Tax Payment

The IRS gives you a few options for submitting your payment. You can do any of the following:

Sign up for the Electronic Federal Tax Payment System (EFTPS), which allows you to pay taxes owed (They also have a voice response system);
Pay online via the IRS at www.irs.gov/payments;
Pay using debit or credit card; or
Send a check or money order using and estimated tax payment voucher.

Quarterly estimated taxes can be fairly painless if you get organized and prepare. Set up your calendar, maintain your documents, use a budget, and make on-time payments. This will help you keep your business financially savvy throughout the year.

If you have questions about business management, entrepreneurship, and business opportunities in Sacramento, Andrew can help answer your questions.

Take some time to speak with Andrew about business transactions or visit our website Services.

Contact Andrew via email or call him at (916) 570-2674.

The post If Death and Taxes are Certain, Manage Your Taxes appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Sacramento Garden To Grill Shutters After Being Sold

After five years in midtown Sacramento, the vegetarian/vegan restaurant Garden to Grill announced it will shut down in early December.

The owners posted on Facebook that the restaurant will close on December 11. A different business will quickly be in that spot by the middle of December, although there are currently no additional details about the new business. The Facebook post said that the owners of Garden to Grill received “a sudden notice for a buyer of the location and they want to occupy December 14th.” However, the building owner said that the building itself has not been sold, but rather that Garden to Grill had been sold. The restaurant owners plan to find a new location to relaunch, which seems justified given that the business did more than $700,000 in revenue annually—evidence of a solid market for their fare.

Garden to Grill’s owners said they were open to taking on investors or a partner to with sufficient capital to open “a more modern better equipped location.”

Garden to Grill – every sausage has 2 ends

The experience of Garden to Grill shows that you never know when opportunity will come knocking. The surprising news of a very successful restaurant closing with plans to reopen may mean that a buyer wanted that location desperately… and they offered a price that the owners couldn’t ignore.

A nice BBQ prepared by Sacramento’s finest – Garden to Grill – is now a memory of a distant past

As a business owner, you need to be ready for that kind of knock on your door. You need to keep running a successful business, so an experienced broker can help free up time for you to do just that, along with maintain secrecy about the sale and getting you the highest price.

Sacramento’s finest business broker will guide you

Above all, selling a business is time-consuming and can be a very stressful venture. While having a “hot” location like Garden to Grill may make the process easier, it won’t reduce all of the transaction preparation, like the documentation required, the meetings, and the amount of diligence needed to make the deal work.

If you are selling an existing business in Rio Lindo or Carmichael, you can alleviate some stress and energy by working with an experienced Sacramento business broker. Andrew Rogerson is a business expert and has negotiated hundreds of business sales in cities throughout the Sacramento Region. He helpes sell businesses in Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, Cameron Park, and throughout the region.

Andrew will help you determine the best time to sell, obtaining an independent business valuation, gathering your financial statements, and preparing contracts and documentation.

Spend some time speaking with professional business broker Andrew Rogerson. He knows about business transactions in the Sacramento area. Please visit our website Services. You can also get in contact with Andrew via email or call him at (916) 570-2674.

The post Sacramento Garden To Grill Shutters After Being Sold appeared first on Sacramento CA Business Intermediary | Rogerson Business Services by Toni Galo.