Andrew Rogerson's Blog, page 33

SBA loans approved in the Sacramento CA area

SBA loans continue to be the primary source of finance for new entrepreneurs whether they are wanting to start a business, buy an existing business or buy a franchise. Seller finance remains an option for the seller that is willing to carry the finance on the remainder of the purchase price for their business, but for that buyer the seller is looking for a large down payment.

If you are looking to sell a business in the Sacramento area or indeed anywhere in California or the US, there are local, regional and national lenders willing to assist you. It’s been my experience that the large national banks such as Bank of America, Wells Fargo, Chase and US Bank continue to offer loans but their loan application and approval process can be slow and frustrating.

SBA lenders motivation to approve loans

Local or regional lenders have the motivation to approve loans but they tend to specialize in industries so they can develop the knowledge of the performance of that industry and its risk profile.

For example, I was recently successful helping two young entrepreneurs obtain an SBA loan to build a craft brewery in Diamond Springs, CA. Diamond Springs, CA is near Placerville in El Dorado County.

These two new entrepreneurs had approached a number of SBA lenders to obtain a loan. At different times with these different banks they were assured their loan application was on target and would close shortly. Despite these assurances, at the last moment, the SBA lender would find a reason to decline the loan. Very frustrating and a waste of time; not only for the borrowers trying to get their SBA loan approved, but the for the seller of the real estate the borrowers were wanting to buy.

SBA loans approved in the Sacramento CA area

The SBA has a regional office in Citrus Heights, CA. Citrus Heights is located in Sacramento County and not too far from my office in Carmichael, CA.

Because the SBA is a government agency, they create and distribute reports that provide the status of which banks are lending, how many SBA loans they are approving and the total value of these SBA loans.

If you would like to know the total amount of SBA loans approved through the SBA Sacramento District Office, SBA loans approved by bank and SBA loans approved by county from October, 2014 to May, 2015 the details are available below.

Because I’m very active with SBA loans, I receive a copy of the different reports and you can read this information to help guide you about who is and is not approving SBA loans.

Click this link to see SBA Sacramento District office loans approved from October, 2015 to August, 2016.

If you would like to apply for an SBA loan to buy a business or franchise it is a formal process. There are many forms to complete and you will need to have a good credit score, a good credit history and a downpayment of about 20% of the amount you wish to borrow if you are buying an existing business and be approved for an SBA 7(A) loan. The loan repayment is generally 10 years.

If you would like to buy real estate, the SBA loan you are seeking is a 504 loan and this generally has a term of 20 to 25 years.

If the loan you are seeking is for real estate and a business this loan would be generally be reviewed as an SBA 7(a) loan with repayment terms from 15 to 25 years.

One of the unfortunate parts of an SBA loan is that it is a government program and has many technical rules and regulations. It’s very safe to say that there is no one size that fits all.

More information for a business seller looking for an SBA loan

If you are looking at selling your business and want your buyer to get an SBA loan, it is critical your financial statements are up to date and accurate. The SBA lenders will want a copy of your last three year’s tax returns, a current profit and loss statement and a balance sheet.

Part of my process when selling a business is to see if an SBA lender is willing to review the business and provide an SBA prequalification letter. It doesn’t guarantee the business will get a loan, but it does allow a meaningful conversation to take place with a qualified buyer to show them the business is good and strong enough to qualify for an SBA loan. A loan will then be approved after reviewing the ability of the buyer to qualify for an SBA loan.

This link will connect you to a web page with some more information about the benefits to a seller of an SBA loan.

If you have questions about valuing your business or qualifying for an SBA loan, give me a call on 916 570-2674.

More information for a business buyer looking for an SBA loan

If you are looking to buy an existing business or a local franchise and want to use the finance available from an SBA loan, this link will connect you to a web page with some more information about the benefits of the SBA loan program to a business buyer or franchise buyer.

To qualify for an SBA loan and you plan to buy an existing business, you will need to bring a down payment of about 20% of the purchase price, a good credit report, a good FICO credit score of at least 700, hopefully higher and a good character. If you have a criminal conviction it will be very difficult to get an SBA loan approved.

If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business or getting an SBA loan, please visit my webpage Services and choose from the options available.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post SBA loans approved in the Sacramento CA area appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Protecting California franchise buyers

The California Department of Business Oversight (DBO) protects consumers and oversees financial service providers and products. It supervises the operations of state-licensed financial institutions, including banks, credit unions and money transmitters, and licenses and regulates a variety of financial service providers. These include securities brokers and dealers, investment advisers, payday lenders and other consumer finance lenders.

The DBO recently issued three orders against franchisors for violating California’s franchise laws, which serve as reminders to those in franchises to comply with state law, particularly when it comes to registering a franchise.

Inaccurate Franchise Disclosure Document

Senior’s Choice, Inc. has run afoul of California Franchise Law for several years, dating back to 2007. The company sells franchises to provide in-home companion care services to senior citizens.

In 2013, a franchisee signed Senior’s Membership Agreement and paid an initial franchise fee of $25,000. Instead of charging a franchise of $45,000.00, which reflected the 2013 terms registered with the Commissioner, Senior’s negotiated the price down, and its offer and sale of a franchise to the franchisee were on terms different from the terms of the offer registered with the Commissioner.

Senior’s provided stale (2012 versions) of the Uniform Franchise Disclosure Document (UFDD) and Membership Agreement, rather than the most current (2013 versions) that were currently registered with the Commissioner.

The California Department of Business Oversight held that Senior’s violated that law by: (i) not providing the current FDD; (ii) selling a franchise on terms that differ from the registered offer; and (iii) violating a 2007 Desist and Refrain order for unlawfully selling franchises without registration. The DBO ordered Senior Choice directors, officers and managers to attend remedial education, or training on franchise law compliance, as well as to pay a $7,500 penalty and have no further violations.

The DBO will object when franchisors act to benefit franchisees by lowering fees or accidentally providing the wrong Uniform Franchise Disclosure Document.

Failing to Renew Franchise Registration

Los Angeles-based Great Khan operated fast- food restaurants throughout California. It registered its franchise system with the Commissioner in late 2000, and the registration was effective from October 2001 to April 2002. However, Great Khan failed to renew the registration after that period. In 1999, Great Khan entered into at least five franchise agreements with California residents who each paid an initial franchise fee of at least $25,000. The DBO held that all five franchise sales occurred outside the registration period. Additionally, the franchises were not exempt from registration.

Great Khan and its principals were ordered to Desist and Refrain from any further offers or sales until their franchises were registered or exempt from the state’s registration requirements.

Failing to Register a Franchise

Likewise, in another case, the DBO found that Los Angeles-based World Coffee Kiosk (WCK) offered and sold franchises without registration. In January 2013, Eugene Chun, the principal control person of World Coffee Kiosk, on its behalf, sold a franchise to a franchisee in California pursuant to a written agreement granting the right to operate a coffee kiosk under the trademark, “The Café”. The business operator paid an initial franchise fee of $25,000 and would sell approved coffee drinks, food products, and merchandise in an assigned territory from kiosks at malls. The operator was also required to use approved signage and advertising and operate under WCK’s plan, manual, policies, standards and procedures. The franchise was to operate under World Coffee Kiosk’s “distinctive plan for the operation of retail kiosks,” as expressed in the Operations Manual. WCK could also require an operator to relocate.

The DBO found this was a franchise that was not registered or exempt. The company was ordered to Desist and Refrain from further offers or sale of franchises until they registered or satisfied an exemption. WCK’s corporate status is currently suspended by the California State Franchise Tax Board.

These recent decisions demonstrate how failing to renew a registration or failing to register in the first place can have significant consequences and serious penalties.

Andrew Rogerson is a business expert and has worked with franchisors and franchisees for many years. He can help you with deciding on an appropriate franchise, location, financing, as well as answering all of your questions. Take the time to speak with Andrew about buying a franchise or determining how to franchise your business.

You can visit our website Services or contact Andrew via email or call him at (916) 570-2674.

The post Protecting California franchise buyers appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Major Pitfalls to avoid When Selling a Medical Practice

When considering the prospect of selling their medical practice, physicians want to achieve two main objectives: maximizing their profits and minimizing any liabilities after the sale is completed. Engaging the assistance of an experienced Sacramento business advisor can ensure that the sale of a medical practice is structured correctly and executed without issues.

Unfortunately, too many business sales run into problems because business owners make avoidable mistakes. Here are a few that can be easily eliminated and the corresponding actions that should be taken for a successful outcome.

Agreeing on Price Before You Talk with a Valuation Expert.

An accurate appraisal of the medical practice by a qualified and experienced valuation expert is one of the most important elements in the sales process. This will produce a fair price for the practice and eliminate any unrealistic ideas of what the asking price should be. Don’t make the common mistake of trying to sell your professional practice with a do-it-yourself approach and valuing the practice by applying criteria that may have no relevance to the specific circumstances. The DIY approach many times will mean either selling the medical practice for much less than it’s worth or driving potential qualified buyers away. Prior to offering the practice for sale, physicians should work with a valuation expert who’s qualified to appraise medical practices in their specialty and in the Sacramento area.

Making Representations and Warranties That Can’t Be Substantiated.

There are instances when a buyer may have a draft purchase agreement in hand at some point in the sale negotiations. This document typically includes a boilerplate list of seller’s representations and warranties, such as the reasonable— “no pending litigation proceedings”—to the impossible— “no unknown liabilities.” A physician eager to sell may gloss over this type of legal language and concentrate on the dollar figures. However, an unsupportable representation may come back to bite him or her as a claim of fraud or misrepresentation. Physicians must carefully review every requested representation and warranty and consent to just those that they know they can reasonably make. Having an expert at hand to help with this review is essential.

Not Getting Certain Representations and Warranties from the Buyer.

The buyer will usually ask for fewer representations and warranties than sellers, but some are significant if the selling physician is going to rest easy after the practice sells. For example, some key warranties are that the buyer is licensed to practice medicine in the state; is in good standing with the state medical board; and is not subject to any disciplinary actions. While this may not protect the selling physician from being named in a malpractice suit or an administrative action arising from the buyer’s conduct, they will add some remedies if the representations were false when made. Physician sellers should include in these types of terms of sale specific buyer’s representations and warranties, including a duty of indemnification from third-party suits or other proceedings.

Agreeing to Buyer-Controlled “Holdbacks” From Purchase Price.

A seller may not satisfy a condition to closing prior to the projected closing date. When this happens, the buyer may attempt to “hold back” part of the purchase price until the condition is met. This done typically with an escrow arrangement. When a holdback can’t be avoided, it would be a huge error to allow the buyer to have total control over disposition of the escrowed funds. Physicians must make certain that any holdback arrangement has joint consent of both parties as to the disposition of funds. There should also be a dispute resolution procedure stipulated in case of a disagreement.

Andrew Rogerson can help you with the sale of your Sacramento medical practice. Take the time to speak with Andrew about the details of your sale. You can also visit our websiteServices.

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

The post Major Pitfalls to avoid When Selling a Medical Practice appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Big Mistakes to Avoid When Selling a Business

Everyday small business owners make drastic mistakes when selling their business and lose thousands of dollars in the process. All their hard work and long-term investment goes down the drain. As entrepreneurs they had once dreamed of owning their own business and building it to success. They then plan to reap the rewards in the form of a successful business sale. Sounds like a great plan! But, making the sale is not as easy as it may appear.

As an entrepreneur, I have built and sold six businesses including a car rental company, two mini-storage facilities and three retail stores. Now as an international professional speaker and business consultant, I help other small business owners achieve this same success. Here are my five tips to help you avoid business sale pitfalls, disappointment and lost money.

Mistake #1: Failing to plan ahead or waiting too long to sell

Waiting too long, or not planning in advance, can cause many business owners to miss their window of opportunity. It takes an average of two to four years to sell a small business. Therefore, long-term planning is key to any successful business sale. By keeping updated records, a detailed business history and sales portfolio on hand at all times, it will make your planning pay off. You just never know when that perfect buyer may walk into your business and make you an offer you just can’t refuse.

Mistake #2: Failing to find the right person to represent your business

Finding the right broker and/or consultant to help you sell your business is crucial to your success. Often business owners go with the first person they meet just to list their business and get the process going. This can cost you time and money in the long run. Within a few months, you may see no results and have to go on the search all over again. Taking time to interview many brokers and looking at a realistic outcome of what is expected will get you started in the right direction.

Take my advice; I’m not using it! I signed up with the first broker I spoke with. He seemed like the perfect person to sell my business. After all, he had a background in retail and that was my industry, he was friendly and best of all he came up with a BIG price tag. Unfortunately, it was too good to be true because he was asking too much. By raising the price he got me to sign the contract but never made the sale. After six wasted months without even a lead, I finally decided to move on. Learning from my mistake, I interviewed 12 more brokers before signing another contract. The new broker had a more realistic approach and started to bring me leads within the first month.

Mistake #3: Assuming that there’s no need to promote or market yourself

Thinking a broker will do all the work in promoting your sale can be deadly.

You are the best promoter for your business. Who knows your business better than you? No one is more motivated, passionate and knowledgeable about your business than you! A broker may be getting you some activity, but you continue to promote as well.

After becoming frustrated that leads were not developing, I realized that I had to be a promoter of my own business sale. But, the trick was to promote a sale without getting it out in my community, my customer base and my employees. How was I going to do that? Where do I find people that would be interested in purchasing my type of business?

After I brainstormed for ideas, I discovered a way to do this. Realizing that my sales associates might make the first contact with someone that was interested in opening a retail store – I went to the source. Again I asked myself the question, “What makes sales people take action?” Money! So I sat down and wrote a letter explaining why and how I wanted to sell my successful business. I offered a bonus to my sales associates to send me a buyer. Instantly the phone started ringing and more leads came in. Within a couple of weeks, I had created such hype that I had three different buyers working on buying the business at the same time.

Mistake #4: Failing to price the business accurately

Setting a very high or unrealistic price tag on a business can lead to a dead end street. Expecting to get top dollar for a business that generates little or no profit is simply using bad business sense. Consider your industry, similar businesses, the economy and your marketplace when pricing your business to sell. On the other hand, a business that does not generate profits may do well with a going-out-of-business sale.

This type of sale can generate instant cash flow and quick turn over. Too many business owners that have not turned a profit, or have cash flow problems, miss this wonderful opportunity. Some reasons they miss out is due to lost energy and/or motivation or because they may not want to admit defeat or failure. Remember it is business – don’’t worry about taking it personally. Look for the most valuable opportunities for your business.

Another mistake is to price the business too low. Often business owners will price their business low because they are burned out, suffer from an illness or did not get good advice. Do your homework first! Listen to brokers and consultants. Do research about other business sales before jumping in with both feet.

Mistake #5: Selling to the wrong person

Taking the first offer may not be a wise choice. This may not necessarily be your BEST offer. Selling your business for top dollar with little or no money down along with an extended contract may lead you to losing it all.

Business sales often go bad after the new owner takes over. The new owner may lack business experience, have a closed mind or be a poor leader. The list goes on and on. A successful business owner makes it looks easy, but change that mix and disaster may strike. When this happens, the new owner ends up going out of business and leaves the previous owner holding an empty bag.

It saddens me to see a business fail after years of success due to this lack of business sale judgment.

Evaluate your options and make the best selection for the long term. Ask yourself, is this the best person to buy and run my business? Or, can they quickly connect with my customer base and learn how to market effectively? When the business sale goes as planned, it creates a tremendous opportunity for both business owners and the success continues.

There’s leasing commercial property, buying inventory and equipment, and paying franchise fees. Andrew can help you with deciding on an appropriate franchise, location, financing, as well as answering all of your questions. Take the time to speak with Andrew about buying a franchise or visit our website Services. Contact Andrew via email or call him at (916) 570-2674.

The post Big Mistakes to Avoid When Selling a Business appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Sacramento area and National Business sales trends

Compared to a year ago (Q2 2015), the sale of businesses in the second quarter of 2016 were comprised of more small businesses according to the quarterly Market Pulse Report published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project.

As a member of the M&A Source and a past member of the International Business Brokers Association, its important as a business intermediary and mergers and acquisition advisor to understand what’s happening in the local Sacramento, CA where I live but also the California market where I operate and the national market for comparison.

This year has been a very busy and successful year for the sale of local businesses in the Sacramento area as well as small business funding. However, when compared to data from the Q2 2015 Market Pulse Report, Q2 2016 data reflect an increase in smaller deal sizes. More than half (57 percent) of the deals that closed in Q2 2016 were valued under $499,999, whereas 50 percent of deals were valued under $499,999 in Q2 2015. Similarly, respondents report that 23 percent of deals in Q2 2016 were valued between $5 million and $50 million versus 34 percent in Q2 2015.

Sacramento area and national business sales trends quarterly report

The quarterly report found increased interest from first-time buyers who were foreigners, former corporate executives, or women, compared to Q1 2016 as well as previous years. A third of respondents said more foreigners (35.5 percent) and former corporate executives (29.5 percent) inquired about buying a business in 2016 than earlier in the year and 12 percent said that more women were in the market to buy a business.

“When the economic climate in Europe is unsteady we tend to see an increase in investors who want to put their capital into American investments,” said Craig Everett, PhD, assistant professor of finance and director of the Pepperdine Private Capital Markets Project. “The increase in women and former corporate executives who are interested in buying a business speaks to the notion that when someone is not ready to retire, but can’t find the right job sometimes the best approach is to simply buy a business and create your own perfect job.”

“Retirement continues to top the list of reasons that sellers go to market, but other factors such as looking for new opportunities, family issues, and health also motivate business owners to sell” said Andrew Rogerson, Certified Business Intermediary, President, Rogerson Business Services, Sacramento, CA, member of M&A Source. This is a shift from a year ago (Q2 2015) when 39 percent of respondents (compared to 27 percent in Q2 2016) cited retirement as the main reason for selling their business.

According to the report, year after year, advisor confidence in a seller’s market has remained steady or increased across all market sectors. Businesses in the smallest market sector (deals valued under $499,999) are positioned in a buyer’s market. Advantage shifts, however, as deals exceed $1 million in value. In the lower middle market (deals valued above $2 million), seller advantage sentiment is strong yet remains three to eight percentage points below peak since the Market Pulse Report began in 2012.

The Market Pulse Report compares conditions for businesses being sold on Main Street (values $0-$2 million) to those being sold in the Lower Middle Market (values $2 million -$50 million). The Q2 2016 Market Pulse Survey was completed from July 1-15, 2016 by 378 business brokers and M&A advisors representing 38 states.

Sacramento area and national businesses sold reports

There are two different reports available for you to read if you would like more information.

Click the following link to read the first report. This report looks at the data from the second quarter of 2015 and compares it to the second quarter of 2016. The report is approximately 74 pages.
Click the following link to read the second report. This report just focuses on the data that was collected for the second quarter of 2016 only. The report is approximately 99 pages.

The International Business Brokers Association (IBBA) was founded in 1983 and is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations, and networking opportunities.

The M&A Source was founded in 1991 and promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs, and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions.

The Pepperdine Graziadio School of Business and Management is a leader in cultivating entrepreneurialism and digital innovation. The Pepperdine Graziadio School of Business and Management focuses on the real-world application of MBA-level business concepts. The Graziadio School provides student-focused, globally-oriented education through part-time, full-time, and executive MBA programs at our five Southern California locations and at our Silicon Valley, and Santa Barbara as well as through online and hybrid formats. In addition, the Graziadio School offers a variety of master of science programs, a bachelor of science in management degree-completion program, and the Presidents and Key Executives MBA, as well as executive education certificate programs.

If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business or getting an SBA loan, please visit my webpage Services and choose from the options available.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Sacramento area and National Business sales trends appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Consider Your Employees as Exempt or Non-exempt, Not as Salaried or Hourly

It may be hard to fathom that in 2015, the U.S. Department of Labor’s Wage and Hour Division found violations of the Fair Labor Standards Act (FLSA) in 79% of its investigations!

One could see that violations would be anticipated in the course of audits in response to employee complaints. However, the Wage and Hour Division routinely sees violations when it simply selects a company to audit. And in many instances, the employer wasn’t even aware of the violations.

One of the most common misunderstandings is that salaried employees don’t have to be paid overtime. But the eligibility for overtime isn’t determined by a label like “salaried” or “hourly.” Similarly, another big mistake for error for employers is not remembering to include all wages when calculating employee overtime pay.

Misused and Misunderstood Labels

Employers will many times label their workers as salaried or hourly—thinking that “salaried” means the same things as exempt from overtime—and “hourly” is the classification or label given to those workers who do get overtime. But the FLSA states that the correct terms are exempt and non-exempt. This means that the categories to focus on are exempt from overtime and entitled to overtime. This proper terminology is critical because either category of employee can be paid a salary.

Salaried employees could meet the criteria for a specific exemption—but simply paying a salary doesn’t make an employee exempt and automatically remove an employer’s obligation for overtime. You see the issue isn’t how the employee is paid (salary or hourly), but rather whether the employee meets an overtime exemption allowed by law. To qualify for some exemptions, the employee may have to receive a specified method of pay, like a fixed salary. But that’s just one of the exemption criteria and not the sole ultimate deciding factor.

Wage Payments

Wages encompasses all compensation for services, and aren’t limited to hourly rates, weekly salaries, or cash. Plus, non-cash gifts and bonuses can also be wages. While the minimum wage is thought of as an hourly rate, employers are allowed to pay using any one or more of these methods:

Day rates
Job rates
Per mile rates
Commissions
Bonuses

Employers can use other methods or a combination, and it can be with or without a base salary or an hourly rate. Alternative way to compensate employees typically used to motivated employee productivity, like providing sales commissions for a company’s field staff to form an immediate and direct connection between sales success and employee compensation. The commission must be added to any other compensation and that total divided by the hours worked in order to arrive at an average hourly rate. Overtime is to be calculated using that rate. If an employee doesn’t consider commission or other types of compensation as wages, it would end up with an inaccurate calculation and a failure to pay all of the overtime owed.

An employer can elect the way in which to compensate non-exempt employees, provided that the method gives the workers at least minimum wage, and their overtime is calculated properly. Exempt employees might be given a specific form of compensation that is required to qualify for an exemption, like a fixed weekly salary.

Employers need to must clearly understand the claimed exemption requirements prior to claiming that employees are exempt from overtime. Each of the exemption has certain criteria, and the form of payment is only part of the equation, so when workers don’t satisfy all of the requirements for an exemption, the DOL Wage and Hour Division says that they must be paid overtime.

Andrew Rogerson is happy to help you with questions about your business, and is the expert you need to assist with the purchase or sale of a business in the Sacramento area. To get information about business structure changes and to learn more about business opportunities in and around Sac, please visit our websiteServices and choose from the drop down menu the information you’d like.

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

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SBA loan approved: Craft brewery El Dorado County, CA

There is something very exciting about to happen in El Dorado County; especially if you have a taste for craft beer. It’s still a bit of a secret but its news – big news.

The popularity of craft beers, especially in the counties of El Dorado, Amador, Placer and Sacramento has been exceptionally solid. So solid that two new entrepreneurs have decide to pool over two decades of commercial experience in beer and wine production to open their own craft brewery in El Dorado County and have a specific focus. Their focus will be quality craft lagers and drinkable lower alcohol beers.

What’s the name of this new enterprise?

The name is Solid Ground Brewing.

This new craft brewery will be located in Diamond Springs, CA in the beautiful Sierra Foothills of El Dorado County.

Introducing Solid Ground Brewing

Starting a craft brewery from the ground up is a huge enterprise but has not phased these two new entrepreneurs.

These two new entrepreneurs are Scott Johnson and KC Sare.

Scott brings to the business the following attributes:

A 4-year Bachelor of Science from UC Davis with a Major in Viticulture and Enology (Wine Science, emphasis in Fermentation Science and Brewing) and a minor in Managerial Economics.
Studied Brewing Science under Brewing Professor Charlie Bamforth.
Winemaker/Operations Manager for Perry Creek Winery.
Management of a wholesale distribution and warehousing company in 8 states, including licensing and compliance.
Extensive management experience including all accounting, cellar management of 1,300 barrels of wine, POS system management and website development.
Management of 7-10 “Custom Crush” clients producing wine on a for hire basis.

KC brings to the business the following attributes:

A 4-year Bachelor of Science with Honors in Brewing and Distilling Science from Heriott-Watt University in Edinburgh, Scotland.
Cellarman for the cask ale program in the County Arms tied house, for Young’s Brewery in London, England.
Brewer for Anheuser-Busch in the Stag Brewery in London producing the full portfolio of AB beers for mainland Europe.
Production and maintenance scheduling of a 200 barrel Steinecker Brewhouse.
Brewer for Gordon Biersch Brewing Company in San Jose, California.
70,000 barrels of annual production concentrating on traditional German Lagers including bitterness assessment, alcohol testing and long term shelf life testing.
Sales Manager for the Northern California territory for Gordon Biersch Brewing Co.
Brewer for Deschutes Brewing Company in Bend, Oregon.
Consulted and commissioned Amador Brewing Company in Plymouth, California and more.

SBA loan approved for Solid Ground Brewing

To get Solid Ground Brewing off the ground and up and running in Diamond Springs, CA, both KC and Scott have jumped through an extensive range of hoops to obtain their finance. The main source of their funds for their craft brewery has been an SBA loan and as you will find if you talk to KC or Scott it has not been an easy process.

One SBA lender took them through months of work and assurances their loan would be approved, only to decide at the very last minute they were not willing to approve the loan.

Rather than put their dream on hold to open Solid Ground Brewing, the seller of the building that KC and Scott are buying gave me a call and asked if I knew of any SBA lenders who could assist.

As it turned out, I was able to introduce KC and Scott to Kris Kennedy at First Community Bank.

The SBA loan process has become an extremely important part of financing small businesses in the US economy. What may not be readily known is that not all SBA lenders will approve a loan for every type of business in every type of industry. This is the reason that KC and Scott made their loan application through First Community Bank. That is, as part of the loan specialization, First Community Bank has deep knowledge reviewing a construction loan and the industry specialty of craft brewing.

Solid Ground Brewing, El Dorado County points of interest

As KC and Scott are able to build their business from the ground up, they are able to draw heavily on their wine and brewing experience.

In addition, one of the strengths of their business model will be sourcing high quality local suppliers to provide their grains, hops, yeasts and the use of the latest technology to bring it altogether.

Part of their unique approach will include their products and this includes crafting world class beer, ales and wines.

The SBA loan that KC and Scott were able to secure from First Community Bank allows them to close escrow on August 25, 2016. If all then goes according to plan, they will start the demolition of the current building in Diamond Springs a few days later.

If you are curious, the Solid Ground Brewing hopes to open about December 15th, 2016.

If you are curious, the Solid Ground Brewing hopes to open about mid November, 2016.

Finance options when buying or selling a business

If you have an interest to get an SBA loan to finance a business you wish to buy, there are many steps to follow for your loan application to be successful.

For more information you are welcome to visit this page of my website: SBA loan process for a business buyer.

If you are looking to get an SBA loan to finance the purchase of a business, your credit report and credit score will be an important part of your success. Before you make an SBA loan application, check out your credit score and credit report.

If you own a business and are thinking of selling and don’t want to carry the finance for the sale of the business, check out the benefits to a seller to get an SBA loan in place.

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Business Advisor Can “Pilot” You to a Successful Business Acquisition

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A Major Decision

The decision to move forward with the acquisition of a business is a big decision, as well as a substantial investment of time, money, and effort.

There’s a big upside to this decision, such as the ability to build critical mass, improve market position and brand awareness, and to tap into opportunities in new markets and product offerings. In addition, economies of scale can help your company expand into new territory and take advantage of operating synergies and administration.

The acquisition process typically is broken down into four stages: pre-acquisition, due diligence, deal negotiation, and post-acquisition.

Independent Business Valuation

An integral component of the pre-acquisition and due diligence stages of the acquisition process is conducting an independent valuation by a business professional specializing in the valuation of companies for mergers and acquisitions. This professional valuation should be your yardstick for managing your expectations about your company’s market value. As the person most closely ingrained with the operation, the business owner’s opinion may be subjective; business owners have a tendency to have somewhat unrealistic ideas of their business’ value. That’s the rationale for an independent valuation. It will give you a more accurate idea of the worth of the business you want to buy and keep you from overpaying. A professional will examine not only your prospective business acquisition, but also the competition, the Sacramento area economy and business climate, and past business transactions similar to your situation. Stick with what they tell you. If you have a preconceived and unrealistic idea of the value of the business purchase, you set the stage for an unsuccessful and difficult sale. The process becomes frustrating, tedious, and stale. Your business advisor will prepare you and for a successful acquisition with the least amount of stress and with the best outcome.

Your business advisor, who will be experience in M&As, will eliminate much of the time and effort of the sales process, so that you have the ability to focus on preparing for the new business operations. A business broker will play a key part in the negotiation stage of the acquisition process, including:

Communicating with decision-makers at the target company, including your understanding of their business and sharing your target company research;
“Selling” or promoting your company’s strengths, upside, and future plans for the company targeted for acquisition; and
Routinely relaying your company’s strategic wins and successes;

The acquisition process is frequently very emotional. It requires a deft and experienced hand at the helm. While it’s your money and your potential business growth, you need to give an expert some leeway to help you to a successful result. Think of the caption of the ocean liner. Even the most highly-regarded captain welcomes aboard a local professional pilot to take the ship through dangerous waters and to complete the berthing operation in port. That’s what Andrew Rogerson will do for your business opportunity. He has been in the Sacramento business community for many years, helping to close business sales, acquisitions, and mergers.

The acquisition process generally will take anywhere from five to 10 months. Your business broker knows that anything longer than that may signal untold obstacles or issues. This the time to determine what those issues are and how and whether to continue with the acquisition process.

As you can see, there’s quite a bit of information to keep straight when acquiring a business. Working with a qualified and experienced business broker will pay dividends. Your business valuation consultant will help you through the process and make a wise decision that will build your business for the future.

To discuss business acquisition opportunities in the Sacramento area, please visit our websiteServices 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 Business Advisor Can “Pilot” You to a Successful Business Acquisition appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Entrepreneurs Finding Growth Opportunities in Franchising

How many times have you read about a new business and thought, “I wish I’d thought of that!” or “I should’ve pursued that idea.”

A successful entrepreneur knows when to attack an opportunity and grow a business.

There’s always the “latest trend,” and tomorrow and next month there’ll be another and then another. The outstanding business people pay attention to the trends and anticipate reactions to take the best advantage of the situation, and even incorporating the passing trend into a long-term win for the business. With that in mind, business advisor Andrew Rogerson suggests some key franchising trends to help you learn how to take advantage of growth opportunities in Sacramento:

1. Industry Growth.

According to a study by the International Franchise Association (IFA), the franchise sector is predicted to grow by 1.7% this year, and the total gross domestic product generated by the franchise sector is anticipated hit $552 billion—a $29 billion increase over last year. This upward trend means opportunity. Given this steady rate of growth, it’s a terrific time to get started owning your own business franchise.

2. Employment Growth.

The IFA also predicted that franchise jobs would increase by 3.1%. That’s roughly 9.1 million jobs, 300,000 more than were added in 2015. There’s been similar job growth every year since 2010, a sign of strong employment in franchises and evidence that franchise businesses are attractive to quality employee candidates who will be key in operating your franchise effectively. You can’t run your franchise all by yourself (Can you?), so you’ll need good workers to help.

3. Wage Growth.

In this election year, there is considerable discussion about raising the minimum wage. There’s a good chance that minimum wages may increase with new laws throughout the country, as well as the federal minimum wage. If there is sweeping legislation to up the minimum wage equally across all sectors, then both costs and prices will increase the same across the board. A new franchisee can use these new regulations to provide fair wages to employees from the very beginning. Employees will be happier and more productive. Plus, your customers will appreciate your commitment and your integrity as a business owner.

4. Diversity Growth.

Minorities are becoming the majority in the country. Baby Boomers are beginning to retire, and minorities who are interested in entrepreneurship are starting to invest in available business opportunities, including franchises. Minority influence will only continue to grow with more diversity in franchising to follow. Use this to your advantage by staffing your franchise with a wide variety of ideas and opinions to help you be successful. Hire a wide variety of employees to more accurately reflect your customer base and increase flexibility.

5. Multi-Unit Ownership Growth.

If one successful franchise is good, a second, third, or fourth successful franchise is even better! Owning multiple businesses is a growing trend this year. Ambitious and aspiring entrepreneurs are adding one or more franchise location to their business empires. Adding more locations creates a bigger territory; more scale means more money and added sustainability long-term. Talk with Andrew about franchise opportunities with ownership of more than one location or diversify your business ownership portfolio by setting up multiple franchise brands that compliment your strategy and objectives.

Trends in franchising are constant: they come and they go. Along with the help of your business broker, you can stay aware of the trends and capitalize on them when purchasing and running your franchise. For more information on how you can prosper in the world of franchising, speak with Andrew.

Andrew Rogerson would like to discuss purchasing a Sacramento franchise with you. He’s happy to help you negotiate the purchase of a franchise in the Sacramento area. To discuss these exciting opportunities and find the one that’s right for you, contact him directly. And to learn more about buying and selling Sacramento business and franchises in general, please visit our websiteServices and choose from the drop down menu the information you’d like.

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

The post Entrepreneurs Finding Growth Opportunities in Franchising appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

For sale: Retail Floor store Eastern Placer County CA

Asking price:
$335,000
EBITDA:
N/A
Rent per month:
$6,000


Gross Income:
$1,115,000
FF&E:
Included
Established:
1989


2015 Cash Flow or SDE:
$124,000
Inventory:
$60,000
Employees:
3

Do you enjoy helping people make their home look brilliant with the best floor covering? This floor covering business is now available to buy and its location is in Eastern Placer County and Sierra Foothills. A great place to live with Lake Tahoe about a one-hour drive, Napa Valley and its wine country about a one-hour drive, the hustle and bustle of San Francisco and Sacramento not too far away and more.

More good news is that this business was started about 17 years ago and so is well known and established in the local community.

Retail Floor store for sale in Eastern Placer County CA and Sierra Foothills

If you would like to grow the business bring your sales and marketing enthusiasm and ideas and build on what’s already in place. Here’s why.

The current showroom is over 5,000 square feet and has a great selection of every carpet, hardwood, vinyl, laminate and rug you could imagine.

Such a selection provides a solution for the most discerning customer.

Additionally, this business now makes sales available on-line. This is a new aspect of the business and a real growth opportunity.

This Retail Floor store services the local community in Roseville, Rocklin, Newcastle, Auburn, Grass Valley, Nevada City, Truckee, Lake Tahoe and east to Sacramento, Granite Bay, Folsom and more.

Retail Flooring business points of interest

There are many ways for the owner of this business to be successful. These include:

There are many ways for the owner of this business to be successful. These include:

In 2015, the gross income was over $1,000,000. This shows the business has an established and existing customer base easily allowing it to move to the next level.
The business is able to obtain national pricing power due to its affiliation with a national buying group. This obviously allows the business to not only be competitive in their local market but other markets if they chose to expand.
The business has a nice cross section of floor covering products they currently offer. It would be easy to expand this range into tiles and related products.
With a showroom of over 5,000 square feet, it is easy to add new lines of products and merchandise.
One of the current strengths of the business is that a lot of its business comes from repeat customers. That is, the business has been successful creating a strong brand and this reflects in the customers that come back for repeat business.
The business operates leanly with only 2 full-time employees and one part-time employee.
The business has a solid suite of marketing products in place to go after new business. This ranges from direct mail pieces, digital or online marketing, displays for local home shows, scripts for local radio advertising, Google Adword campaign strategies and more.

In 2015, the gross revenue for the business per the owner’s tax return was $1,115,160 and for 2016 its projected to be $1,176,000. The owner net benefit or SDE (Sellers Discretionary Earnings) in 2015 was $124,620 and in 2016 it is expected to exceed that amount.

Finance to buy this Retail Floor store

If you hold the necessary license with the California Contractors License Board, finance is easily and readily available through a local SBA lender as the seller has an SBA loan in place. The SBA lender has agreed to let a buyer assume the current loan as long as they meet the usual SBA loan qualifying requirements. Additionally, if the circumstances make sense, you may be able to use your 401k retirement plan as a downpayment.

If you have questions about different finance options to buy this Retail Flooring business, please visit this web page for more information about finance to buy a business.

More information about this Retail Floor store for sale in Eastern Placer County CA

To own and operate this Retail Flooring business, you will need a valid license with the California State Contractors License Board with a C15 license.

If you have an interest to own and operate this very successful Retail Flooring business, give Andrew Rogerson a call on 916 570-2674 or please send an email to Andrew Rogerson.

Andrew will then send you a one-page executive summary of the practice and a Non-Disclosure Agreement to sign and return.

Once Andrew receives your signed Non-Disclosure Agreement he will send a link to a secure website where you can download a set of confidential information about this Retail Flooring business.

Free guide to buy a business

My goal is to be as helpful as possible and so this link connects to a page on my website with a one-page summary of the many steps to buy a business.

If you would prefer information with more details, you are welcome to click the following link to download a free 14 page eBook called Guide to buy a business. and an abbreviated version of one of the four books I’ve written.

Sell your Retail Floor store

Perhaps you are reading about this opportunity and already own a business in the Retail Flooring industry and are thinking about selling it. There are many steps to sell a business.

If you are thinking of selling your Retail Flooring business and would like some general information, visit the following link on Andrew’s website: Sell a business in California.

The post For sale: Retail Floor store Eastern Placer County CA appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.