Andrew Rogerson's Blog, page 64

How to protect the future of your business

Running a small business or franchise can be an exhilarating experience; especially once the company begins to flourish and produce profit. However, business growth is inevitably accompanied by increased exposure to risk; in particular, risks relating to liability. In the USA alone, more than 80 million lawsuits are filed each year; with a significant proportion of those figures being claims made against businesses. Whilst it is imperative to focus on developing your company and ensuring that it sees growth year on year, it is also vital to make sure that it is protected adequately in terms of liability; and that your company is not at risk of sinking beneath the weight of a hefty liability claim, which can run into thousands, if not millions of dollars. It is important to be aware of the liability pitfalls that can potentially threaten your business, and to be aware of how to protect yourself against them as best as possible; preferably by enlisting the support of an expert. Here are a few key things to bear in mind when considering liability insurance.

The Rise of a Very 21st Century Liability Threat to Your Business

Traditionally, the liabilities that a business needed to safeguard against were very much based in the physical aspects of the company. However, in the 21st century, when many companies generate most, if not all of their business from their website, they find themselves at risk of a very different kind of threat; that of cyber-crime. For many businesses that suffer from cyber attacks, the results tend to be a loss of revenue, with account details hacked into, and money extracted from the account. However, cyber criminals are growing ever more interested in obtaining sensitive data; and as a company, you are liable if that data is no longer confidential. A few years previously, large companies were the main focus of the cyber thief, but in recent years, there has been a significant shift, and now, over 30% of cyber crimes are targeted at companies with less than 250 employees. Consider getting insurance to protect yourself against this, but also consider investing in the help of an expert, who can put additional security measures on your site.

Guarding Against the ‘Slip and Fall’

As a business owner, particularly if you own a premise which is open to the general public, you are probably already familiar with the terminology ‘slip and fall’. To clarify, a ‘slip and fall’ accident claim is a tort legal term, used to describe a physical accident that occurs in the premises of another person; for example, slipping on wet floor in a high street store, or tripping on an uneven floorboard in a dental surgery. If an accident happens in your workplace, and you are uninsured against it, then you can anticipate a substantial legal claim to be made against you and your company. Ensure that you protect yourself against this by insuring your business, but also by creating a list of safety checks that you undertake at regular intervals within the premises; and do not avoid necessary repairs and alterations to your property; whilst seeming to save you money in the short term, neglecting your premises can damage the reputation of your company considerably in the long term.

Confused About Taking Out Liability Insurance?

If in doubt about what sort of insurance is best for your company, ask an expert. Discovering what insurance is suitable for your business can prove to be complicated, and an expert will guide you in the right direction. When talking to an expert, be prepared to assess aspects of your business, such as the perceived risks and whether your company operates in a high or low risk manner; and also location, as some states in the US will have different approaches when it comes to awarding damages to plaintiffs. As with any other type of insurance, be prepared to consider excesses; and it is a good idea to ascertain how much excess you can afford, should you face liability charges in the future. Depending on the nature of your business, you may also need additional insurance; but your business advisor will help you with finding out exactly which policy will work to your advantage.

This article is a guest contribution from Melissa Barry.

Is an Expense Reduction Analysts franchise right for you?

Expense Reduction Analysts is the world’s largest cost management consultancy firm that has provided cost management expertise to businesses for nearly 22 years. They are a multinational franchise opportunity for middle or executive level individuals who are passionate about guiding businesses through long-term plans for success. A specific consulting or finance background is not necessary to take advantage of representing ERA.

Expense Reduction Analysts was founded in the U.K. in 1992 and is now a global advisory firm. Their key objective is to help client organizations reduce on-going business expenses, including indirect expenses such as those for printing, freight, equipment maintenance, courier service, telecommunications, and office supplies. Typical clients have annual revenue between $5m – $250M.

The methods employed by Expense Reduction Analysts generally produces savings in 9 out of 10 client engagements. Their process is to implement projects rather than making recommendations to clients, which consequently leads to franchisees generating far more income than a client would pay to a typical consultancy firm.

Expense Reduction Analysts reduces risk to clients by accepting all up front risk. If the franchisee generates savings for the client, the savings is shared. If there are no savings generated then the client owes nothing.

Most franchisees have developed an industry specific expertise. Expense Reduction Analysts seek such consultants who are willing to share their expertise on a joint venture basis with other members of the group.

There are multiple revenue streams for a franchisee. They can acquire a client and Joint Venture the analytics to another ERA consultant. They can acquire a client and do the analytics/project management exclusively. Or, it could be another consultant that acquires the client and the franchisee provides the expertise.

Expense Reduction Analysts has wide open opportunities across the U.S., however they are currently targeting expertise to open franchises in Tampa, FL, Twin Cities, MN, and parts of North Carolina. Franchisees come from diverse backgrounds with solid business expertise. Their role in the business is to act as the advisor to their executive level clients.

Is an Expense Reduction Analysts franchise right for you? Below are company highlights and statistics to consider.

About Expense Reduction Analysts:Provides cost management expertise to businesses.Has reviewed over 100 cost categories worldwide. Typical customers have revenue between $5M – $250M.Processes generally produce savings in 9 out of 10 client engagements. The average, depending on the category, run about 20%.Reduces risk by accepting all of the upfront risk; i.e. if the franchisee generates savings then the franchisee keeps 50% of the savings for the next 18 months. If there are no savings generated then the client owes nothing.Expense Reduction Analysts key business features include:Implementing projects rather than making recommendations, franchisees generate far more income than a client would pay on a typical time and rate project.By leveraging the broad expertise of the franchise network, a franchisee is able to earn fees on projects with their clients beyond their personal expertise.Franchisees have the ability to leverage their time by using other franchisees on projects.An ideal Expense Reduction Analysts candidate would be:Achievers who tend to be middle or executive level individuals in corporate America or owners of successful businesses; people who believe that the sum of the whole is greater than the sum of the parts.Those who can help companies by working on diverse projects with like-minded consultantsSomeone who does not necessarily have a finance or accounting background. They must possess the ability to hold business conversations with executive level decision makers.A drive to grow business and the ability to develop and maintain relationships with vendors and other Expense Reduction Analysts.Perks of an Investment in Expense Reduction Analysts:No employeesNo retailNo inventorySignificant earnings for a franchisee 3 years in businessLow investmentPowerful group of franchiseesExcellent relationships with vendorsLarge database of benchmark informationCutting-edge web-based technology integrates every essential function of their businessWorld-wide presenceTotal investment in an Expense Reduction Analyst franchise:

The total investment range is 59,000 – $69,000 which includes the franchise fee of $59,000.

If you would like more information about buying a franchise please visit my webpage Buy a franchise or buy a copy of my book – Successfully buy your franchise. If you would like more immediate help with buying a franchise you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

Tips for Selling Your Small Business

sell your small business

The natural evolution for many small business owners is to eventually sell the business and move on to a new project. Many companies specialize in buying growing businesses, and other online resources allow owners to list their business for sale in a fully accessible directory like Business Mart.

There is a difference between starting new projects and selling them appropriately, and sticking to something all the way to its initial public offering, like in the case of Mark Zuckerberg’s Facebook. Once you determine that selling may be your best option, you must avoid traditional pitfalls that others run into. Listed below are some major tips on avoiding issues and selling your business for the right price:

The Art of Writing Off

US Money News reports that a major issue small businesses face is with tax write-offs. As a business is growing, owners will write off anything even remotely related to the business in an effort to minimize yearly and monthly tax payouts. This does not fare well for a potential buyer. It is recommended you have a year of less writing off, giving a potential buyer insight into exactly how much it costs to run that firm, without exaggerated the price.

Formal Evaluation

Many investors will value a formal price evaluation of a particular small business, as US Money News reports. The pro is that a potential buyer has a more concrete value of a business’ worth. The con is that it does box a business value in to an extent. A buyer will hardly pitch a price of $250,000 if the formal evaluation indicates that a business is worth half that. Depending on the size, you can obtain a rough do-it-yourself estimate at a resource such as BizTrader. On the other hand, larger businesses deserve an evaluation by a company which can cost upwards of $10,000.

Privacy Measures In Place Through the Whole Process

Business selling and buying is a vulnerable time for many. Sellers employ due diligence and open up their books to potential buyers. But the owner and the business must still be protected in case of fraudulent activity. Resources such as Lifelock.com employ accessible privacy matters that can be applied in a small business selling situation. These include credit alerts and software protection before, during, and after a transaction, according to Inc.

Do Not Close the Doors to Third Party Members

Many business owners have a certain pride about the business, and will close off to accountants, brokers, and attorneys. During a transaction, a business must still be maintained and ran properly, as Inc.com reports. The only way to juggle the sale and the ongoing business relations is to embrace the resources of these third-party companies and confirm the validity and seamlessness of the sale.

Find a Bottom Line Worth for the Business

A formal evaluation will give you an excellent idea of a business’ worth, but it is up to you to determine the final value. In an ongoing transaction, one party will attempt to get the best deal they can against your highest value. Microsoft Business determines that the best way to find a value is to look at the profit line and maximize it logically. Base the value on general cash flow, assets, annual growth, and overall gross revenues.

Buying a business is a smart move, if the finances add up

Surprisingly, in spite of the recession in the US, starting up a company is still proving to be big business. Recent figures in BusinessWeek.com confirm that last year, a staggering 12% of US adults started up their own business; either from scratch, or by buying an existing business or franchise; a significant and dramatic rise from the percentages of previous years. The trend is also replicated in other countries in recession; such as the UK; and the GEM (Global Entrepreneurship Monitor) suggests that overall, 400 million individuals worldwide are involved in entrepreneurial activity. So what is it exactly that is driving people to invest time and money into developing a start-up business, in spite of the current financial climate? Why are more and more people looking to purchase existing businesses and franchises? And, perhaps more pertinently, how are these entrepreneurs managing to source the funds to purchase or develop a business?

The Appeal of Being an Entrepreneur

At the start of the recession in both the US and other countries; the predictions from the experts was that entrepreneurial activity would decrease, rather than increase. Initially, this was indeed the case. However, a recent boom in numbers of people starting or buying an existing business has led experts to re-evaluate the statistics. For many individuals, starting a business may well have been an act of necessity after losing an existing job. However, statistics show that an equally popular reason has been the desire to have complete ownership and control of the business and to have freedom and flexibility in the workplace. What options are available to entrepreneurs who want to break from their existing careers and ‘go it alone’? And which option is most viable in the current national economic situation?

The Advantages of Buying an Existing Business or Franchise

Whilst starting a company from scratch can seem tempting; in the current financial climate, it is also undoubtedly the more high risk option. The significant costs of developing a product and service, not to mention undertaking market research, developing marketing materials and promoting the business, can prove to be the downfall of many a start-up company. Indeed, according to Harvard’s senior lecturer, Shikhar Ghosh, around 75% of start-up businesses fail, and these figures are replicated in other Western countries, such as the UK. On average, 50% of start-up companies still fail within the first year, and financial issues are generally cited as the predominant reason. However, purchasing an existing business or franchise can offer an attractive alternative. Though the initial outlay can be higher, the risks are significantly lower, as an existing business will have the benefits of a customer base, a level of brand awareness and many other aspects in place, including stock, systems and materials. There is often a significant decrease in the amount of initial work involved to get the business in a profitable state. Of course, for some, the appeal of owning a business is the creative element; and the thrill of developing a product or service from scratch; but for those looking for a more reliable ROI, purchasing an existing business or franchise may well be a more appealing option.

Buying a Business: The Finances

It is important to be aware, when planning to purchase a business or franchise that the initial financial outlay is likely to be greater than for starting from scratch. However, ROI should occur more quickly, due to the benefits of an existing customer base and a brand reputation already in place. For individuals looking to buy a company, but concerned about raising the finances to do so; there are a number of options available to help you along the way. Many US entrepreneurs are following the lead of UK companies, and making the bank manager their new best friend. There are a number of loans available for people looking to start a business; and the excellent news for those looking to invest in the purchase of an existing company is that banks are often far happier to assist with the purchase of an established company than offering to help with a start-up operation, which of course, is unproven. It is important to shop around for the best loan to suit your requirements. As UK site Money.co.uk state, ‘making sure that it offers both flexibility and value for money’ is of vital importance and can be the difference between success and failure of your venture. The site also highlights that there are other options available to entrepreneurs, including peer to peer lending, which are arranged independently of the bank. Make sure to produce an extensive forecast of projected profits; not just for the benefit of the bank, but for your own benefit too. For those buying a business as opposed to starting from scratch, this is a far easier process, as the figures from previous years are readily available. Consider investing in the help of a broker too; who can help with pre-screening businesses for you and also with negotiating the sale.

Take the Risk, but Make it a Calculated One

Ultimately, any investment in business, whether for an existing business or for a new venture, is a risk. The important thing is to understand the risks and to plan accordingly. It is worth making preparations for all eventualities. If the company for any reason fails to thrive; what steps will you have in place, to ensure that you can rescue the company as best as possible, and more importantly, maintain a standard of living for yourself and your family? Remember that there are more costs involved than simply paying the money for the company itself. You will also need to plan for solicitor’s fees, accountant fees, plus any additional stock and materials that you may need to invest in. If in doubt, talk to a professional financial adviser about the risks involved and the total costs. However, be assured that with appropriate planning and awareness of the costs involved, investing in a business or franchise can be a highly profitable venture; and of course, the advantages of owning your own company and being your own boss are priceless.

This article is a guest contribution from Melissa Barry.

Why Buying a Business is a Smart Move, Providing the Finances Add Up

Surprisingly, in spite of the recession in the US, starting up a company is still proving to be big business. Recent figures in BusinessWeek.com confirm that last year, a staggering 12% of US adults started up their own business; either from scratch, or by buying an existing business or franchise; a significant and dramatic rise from the percentages of previous years. The trend is also replicated in other countries in recession; such as the UK; and the GEM (Global Entrepreneurship Monitor) suggests that overall, 400 million individuals worldwide are involved in entrepreneurial activity. So what is it exactly that is driving people to invest time and money into developing a start-up business, in spite of the current financial climate? Why are more and more people looking to purchase existing businesses and franchises? And, perhaps more pertinently, how are these entrepreneurs managing to source the funds to purchase or develop a business?

The Appeal of Being an Entrepreneur

At the start of the recession in both the US and other countries; the predictions from the experts was that entrepreneurial activity would decrease, rather than increase. Initially, this was indeed the case. However, a recent boom in numbers of people starting or buying an existing business has led experts to re-evaluate the statistics. For many individuals, starting a business may well have been an act of necessity after losing an existing job. However, statistics show that an equally popular reason has been the desire to have complete ownership and control of the business and to have freedom and flexibility in the workplace. What options are available to entrepreneurs who want to break from their existing careers and ‘go it alone’? And which option is most viable in the current national economic situation?

The Advantages of Buying an Existing Business or Franchise

Whilst starting a company from scratch can seem tempting; in the current financial climate, it is also undoubtedly the more high risk option. The significant costs of developing a product and service, not to mention undertaking market research, developing marketing materials and promoting the business, can prove to be the downfall of many a start-up company. Indeed, according to Harvard’s senior lecturer, Shikhar Ghosh, around 75% of start-up businesses fail, and these figures are replicated in other Western countries, such as the UK. On average, 50% of start-up companies still fail within the first year, and financial issues are generally cited as the predominant reason. However, purchasing an existing business or franchise can offer an attractive alternative. Though the initial outlay can be higher, the risks are significantly lower, as an existing business will have the benefits of a customer base, a level of brand awareness and many other aspects in place, including stock, systems and materials. There is often a significant decrease in the amount of initial work involved to get the business in a profitable state. Of course, for some, the appeal of owning a business is the creative element; and the thrill of developing a product or service from scratch; but for those looking for a more reliable ROI, purchasing an existing business or franchise may well be a more appealing option.

Buying a Business: The Finances

It is important to be aware, when planning to purchase a business or franchise that the initial financial outlay is likely to be greater than for starting from scratch. However, ROI should occur more quickly, due to the benefits of an existing customer base and a brand reputation already in place. For individuals looking to buy a company, but concerned about raising the finances to do so; there are a number of options available to help you along the way. Many US entrepreneurs are following the lead of UK companies, and making the bank manager their new best friend. There are a number of loans available for people looking to start a business; and the excellent news for those looking to invest in the purchase of an existing company is that banks are often far happier to assist with the purchase of an established company than offering to help with a start-up operation, which of course, is unproven. It is important to shop around for the best loan to suit your requirements. As UK site Money.co.uk state, ‘making sure that it offers both flexibility and value for money’ is of vital importance and can be the difference between success and failure of your venture. The site also highlights that there are other options available to entrepreneurs, including peer to peer lending, which are arranged independently of the bank. Make sure to produce an extensive forecast of projected profits; not just for the benefit of the bank, but for your own benefit too. For those buying a business as opposed to starting from scratch, this is a far easier process, as the figures from previous years are readily available. Consider investing in the help of a broker too; who can help with pre-screening businesses for you and also with negotiating the sale.

Take the Risk, but Make it a Calculated One

Ultimately, any investment in business, whether for an existing business or for a new venture, is a risk. The important thing is to understand the risks and to plan accordingly. It is worth making preparations for all eventualities. If the company for any reason fails to thrive; what steps will you have in place, to ensure that you can rescue the company as best as possible, and more importantly, maintain a standard of living for yourself and your family? Remember that there are more costs involved than simply paying the money for the company itself. You will also need to plan for solicitor’s fees, accountant fees, plus any additional stock and materials that you may need to invest in. If in doubt, talk to a professional financial adviser about the risks involved and the total costs. However, be assured that with appropriate planning and awareness of the costs involved, investing in a business or franchise can be a highly profitable venture; and of course, the advantages of owning your own company and being your own boss are priceless.

This article is a guest contribution from Melissa Barry. Melissa can be contacted at …

Is a Direct Mail home-based marketing franchise right for you?

Is a Direct Mail home-based marketing franchise right for you? City Publications is a premier lead generation franchise that targets affluent lifestyles and was founded in 1996. It began franchising in 2002 and City Publications consistently ranks high in the Franchise 500 in Entrepreneur Magazine for being a fast growth company, a top home-based business, and a highly effective direct mail publication. They ranked #181 in Entrepreneur Magazine’s 2013 Top Global Franchisers.

City Publications’ primary goal is to partner with local business owners across the country and employ their 5 tiered lead generation advertising strategy. They help local business grow via direct mail marketing campaigns, targeted e-mail marketing, mobile text messaging campaigns, web lead generation, and Search Engine Optimization.

An investment in City Publications also offers the owner the opportunity to run a proven home-based business model that has seen success for nearly 18 years.

If you are considering a home-based business and are interested in City Publications’ success country-wide, then the following are some key items of interest for you to assess.

About City Publications:

High quality lead generation company which produces beautiful, affluent lifestyle cooperative direct mail pieces using 4 color glossy postcards.
Showcases the most exclusive and unique products and services targeted to the most active consumer – the affluent homeowner!
High response rate from upscale market, due to professionally packaged, personally addressed mail pieces.
A hugely successful e-marketing program, offering different levels of web exposure, from individual email blasts and e-newsletters to local website advertising and online drawings.
Deals ONLY with affluent market, making the opportunity resilient in a tough economy.

City Publications key business features include:

Home-based Lifestyle Business
No Inventory, No employees
Quick Start Up
Repeat Clients with high Retention Rate, Few Clients Needed
High Profitability return on Effort
Builds Equity Ownership Quickly
National Clients with a Footprint of over 45 cities
Transferable Business

An ideal City Publications candidate would be:

A franchisee that can talk to customers who are small business owners
Assist customers in finding the value in City Publications’ cost effective turn-key direct mail marketing
3-5 years of sales experience

Total investment in City Publications franchise:


The total investment range is $112,000. There is a Franchise Fee of $60,000 – $200,000 based on population (Standard is $89,000).

If you would like more information about buying this franchise please give me a call on 916 570 2675 or you are welcome to send an email to Andrew Rogerson.

If you would like additional information about owning your own franchise, please visit my webpage Buy a franchise or buy a copy of my book Successfully buy your franchise.

Is a Pro Martial Arts franchise right for you?

Owning and operating a franchise is not for every business owner. As I’ve learned over the years, business owners come in all shapes and sizes and this includes their own way of doing things.

During 2013 I worked with a husband and wife that were new to owning and operating a business. They had a great skill set and looked closely at different franchise opportunities. These opportunities included staying close to their skill set which was IT or Information Technology. They also had an interest in accounting and taxation from working previously in that industry and handling one of their parent’s estates and the recycling industry with the tremendous growth it’s currently experiencing. What they didn’t expect to find when they started their journey to find the right business and franchise for them was that they would come across a franchise that specialized in teaching children not only how to protect themselves but also raise their self-esteem and better manage the major problem in schools at the moment which is bullying.

Neal Weiss works for a company called Rhino 7 and they specialize in helping a franchisor get their concept to market as quickly and efficiently as possible. As part of this process, this includes providing the sales team so that potential franchise buyers or franchisees can review the concept and decide if it’s right for them and then also right for the franchisor. One of the strengths of a good franchise is that it has to be the right fit for both parties.



Neil was a guest on my show on May 07 and I had a conversation with him about the role he plays in helping franchise buyers through the qualification process and specifically Neil and I spoke about Pro Martial Arts and some of the key features of the franchise. Some of these key features include:

 

Pro Martial Arts being a semi-Absentee Executive Model. This model allows the franchisee to keep their primary job and open one or develop multiple units and grow their company.
Pro Martial Arts opens and develops quickly allowing the franchisee to start generating a cash flow quickly.
The total cost investment is approximately $130,000 including working capital.
A very solid return on investment. The Item 19 in the Franchise Disclosure Document shows $145,000 net income per unit average!
The hours of operation are only Monday thru Thursday from 4 until 8 and Saturdays from 9 until 12.
The concept is children related and gives back to the community in a big way through children anti-bullying/predator prevention programs and character enrichment (Poise, confidence, self-esteem and respect.)
The competition is very unorganized, independent owner operators that don’t have systems, policies, procedures, turnkey marketing, real estate systems, etc.
No martial arts experience needed. The concept looks for franchisees that can manage employees.

If you would like to hear my conversation with Neal, you are welcome to listen by clicking on the following link – Pro Martial Arts Sacramento with Neal Weiss. Neal was the second guest for the show. My conversation with Neal starts about 29 minutes into the recording if you want to skip my first guests who were Jim Pelley and Adam Frick from Ulink Network.

Small business can always beat big business

Small business can always beat big business; or using the story we are all familiar with, David will always beat Goliath.

The story in the Old Testament and specifically the first book of Samuel includes the encounter between David who later became King David and how he was able to kill Goliath is familiar to almost everyone.

The story explains that David arrived at the battlefield to find the troops of Israel were being taunted and cowered by the Philistine army and in particular one man called Goliath.  David was small in stature yet Goliath was some nine feet tall and supposedly invincible.  The story goes on to say that David was a simple shepherd with only a simple weapon of a sling shot while Goliath was a well trained and dominating warrior with spear and shield who no one could defeat.

Malcolm Gladwell in his new book interestingly called ‘David and Goliath’ argues with conviction and simplicity that Goliath stood no chance amongst David as everything was in David’s favor.   What was in David’s favor?  For a start, David had a sling shot or as Gladwell calls it, new technology.  There was no sword and shield for a close up encounter with Goliath as David would have been crushed.  Additionally, David chose to fight Goliath using his strengths which was his ability to use the slingshot which Goliath had nothing in his armory to defend himself against.



What caught my attention in Gladwell’s book was that his thinking is so easy to apply to small business owners and how and why they succeed.  Here are a few reasons why.

Most cultures love the story about the underdogs and how they can win.  If you own a small business or plan to become a small business owner, society is rooting for you.

Why can some people take a disadvantage and turn it to their advantage?  Dyslexia is not a common ailment in society but it’s generally agreed that those that have dyslexia have a severe disability that will prevent them from achieving at the highest level.  Apparently nobody told Richard Branson, the Chairman of all things Virgin be it Virgin Airlines, Virgin Records, Virgin Mobile etc.  John Chambers is the CEO of Cisco Systems and has dyslexia.  I think you’d agree that Cisco is a very impressive company.  What about David Boies who also had dyslexia?

You may be tempted to ask – who is David Boies?  Well David Boies, and yes, he does have dyslexia, is an attorney.  David Boies is no ordinary attorney.  He was asked by Al Gore when he was trying to win the US Presidency in 2,000 to stand and argue before the US Supreme Court why his case was correct about the Equal Protection Clause of the Fourteenth Amendment.  What’s even more interesting is that David Boies reads about one book a year because of his dyslexia.  Surely you cannot stand before the Justices of the highest court in the United States and argue a legal case if you cannot read?  Apparently you can but what’s more apparent is that to do it, and do it well you need to find a solution to being dyslexic which David Boies did by developing two simple but incredible skills.  The two skills were listening intensely and developing a great memory.  Because David Boies could not read he would prepare for his legal cases but then when he was in court, he would ask a series of long and intense questions.  Each question would build and take his case somewhere but what enabled him to achieve at such a high level was then being able to say to a person he was examining or cross examining on the stand, you’ve just said so and so but 3 days ago when I asked you this and this you said this which contradicts what you just said.

What does all this tell us?  A small business has its own strengths and advantages that set it up for success.  For example, its strengths are its ability to make decisions quickly, to adapt with speed as the market evolves and changes, build alliances with other small businesses that don’t compete for its products and services and offer products the larger businesses are unable to offer. Going back to the analogy with David and Goliath, use new technology such as a slingshot as a competitive advantage.

If you own a business are you using your strengths to your advantage?  If you’re not sure, do a SWAT analysis or Strength, Weaknesses, Opportunities and Threat analysis to find out where you need to be.  If you are still not sure, ask your customers.  Like David versus Goliath, business is about winning.  Be a winner by using your strengths but make sure you know what they are.

Are you ready to sell your business and move to your next challenge?  Would you like to know the value of your business?  How about own and operate your own franchise?  If you would like more information please visit my webpage Rogerson Business Services.  If you would like more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

Is a Doctors Express franchise right for you

Is a Doctors Express Urgent Care Center franchise right for you? The changes from the Affordable Healthcare Act that became law in 2010 are now being rolled out to the public in the form of the new Healthcare.gov website and the incredible change its touching 18% of the US Gross Domestic Product. That is, the changes to health insurance rates and coverage will touch every aspect of the health and wellness of the US people and ripple through the economy for years to come.

Part of this change touches the way a local community looks for urgent care and a franchise called Doctors Express (DRX) is now rolling out their urgent care facility model and has branded itself as an emergency room quality care facility. Doctors Express is the only urgent care franchise in the industry, with a key point of difference in offering high care and convenience to patients.

Since 2006, Doctors Express has implemented a business model of providing 4 Stage Urgent Care, employing fully certified doctors who attend to walk-in patients with minimal wait times. Their business model is to focus on employing fully certified doctors and because of their business model, doesn’t require the owner of the business to be a doctor.

Doctors Express yields an extremely powerful semi-absentee income for the investor. They provide a wide range of investment opportunities with single and multiple center development options. Doctors Express offers a very strong Master Franchise program, with benefit programs provided for franchisees and staff.

A closer look at Doctors Express’s amenities shows how it is that their model has led to their growth of 21 franchise units in the medical industry in just 7 years.

If you see your future in the medical industry and specifically would like it to be with Urgent this may be the opportunity you have been seeking. The following are some key items of interest.

All Doctors Express facilities include the following Patient Care features:

4 stage Urgent Care Clinic
Doctors Express patient care is offered by fully certified doctors
Facility hours are convenient for walk-in patients
Pricing is affordable and broad-based insurance plans and Medicare is accepted
Doctors Express facilities are “one-stop” high-end centers able to facilitate Medical Exams and X-ray processing and have an On-site Lab and Pharmacy

Doctor’s Express key business features include:

Semi-Absentee model with a large financial performance statement for semi-absentee owner – well over $100K
Corporate manages Site Selection, Lease Negotiation, FF&E and Build-Out of Clinics.
Recession Resistant (Medical)
Doctors Express Corporate coordinates Insurance and Medicare Setup & Claims processing for the franchisee!

An ideal Doctors Express candidate would be:

Able to display management and people skills
Experienced in managing personnel and have the resolution to market the clinic and recruit employees
Able to maintain a CEO / Developer role

Total investment in Doctors Express franchise

The total investment range is $500,000 – $600,000. There is a Franchise Fee of $55,000 for a single clinic.

Not everyone wants to or can be a doctor. Not everyone wants to or can own and operate an urgent care clinic. However, if you enjoy the medical field and serving your local community this could be the right business opportunity for you.

If you would like more information about buying a franchise please visit my webpage Buy a franchise or buy a copy of my book Successfully buy your franchise. If you would like more immediate help with buying a franchise you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

Due diligence when buying a business

One of the best things about buying a business from a buyer perspective is that generally, the buyer has the option to buy the business or simply walk away.  As a buyer, if it doesn’t feel right whether it is true or not, they can simply say the business is not what they are looking for and they can move on.  Most buyers are very friendly and approachable people during the initial stage of collecting information about the business and deciding if it’s right for them.  However, that generally all changes once the negotiations have been done with the price and terms agreed upon and now the transaction moves into due diligence.

At the moment I am dealing with some buyers that wish to buy a Primary Care and Urgent Care clinic.  Their due diligence list has 182 items on it.  They want to know what they are buying and are leaving no room for error.

So let’s have a look at what buyers can do better during the due diligence phase of buying their business or practice.

Asset sale

Risk and fear are two components that come into play in every transaction.  If the buyer is totally risk averse, the best option when buying a business is to do an asset purchase and not a stock sale.  This leaves the seller to own and manage the liabilities of the business up to the close of escrow and change of possession while the buyer gets to handle all the details going forward from that date.

What is the buyer buying?

This may sound too basic but it surprises me how often I am asked by a buyer to help them buy a business and when I ask the seller for a summary of what’s for sale they will offer to ‘put it together.’  Too many sellers take a business to market without being clear what is or isn’t for sale.  My suspicion is that the seller who doesn’t work with a business broker or third party to help them put the business on the market want to see what the buyer wants and then hope they can convince the buyer it’s not part of the sale.  If it’s not part of the sale AND it’s not currently used in the business then the seller should not have it in the business.  If the buyer can see it or knows it’s in the business then they will almost always want it and then decide later what to do with it.

Representations and warranties

There is a difference between a representation and a warranty and that’s the reason we have attorneys.  Suffice to say that this is an important component in a purchase agreement as it will have a section regarding Representations and Warranties.  As the buyer, be clear on the representations of the sellers and their warranties so you fully understand your risk.  Get advice from an attorney if this area is unclear.

Financial statements

If you buy an ongoing business it will include financial statements.  Some buyers do their own due diligence, some buyers hire a CPA to do it for them. The best solution in my opinion is for the buyer to do the due diligence with the help of an accountant or someone licensed in accounting or tax to assist the buyer.  This approach allows the buyer to understand what set of accounts and record keeping the seller uses so they can decide if they continue with the same system and methods or adopt new ones.  If the buyer is uncomfortable with analyzing the financial statements they must have someone on their team to help them and look after their interests.

Re-hiring employees

If the business has a number of employees and they have worked for the business for a long period of time the buyer would think it’s safe to simply hire them after the close of escrow.   It would also be tempting to keep things simple and ask the seller for a copy of their Employee handbook, change the picture on the cover so it looks new and maintain the status quo with employee hiring and employment practices.

Employment practices constantly change.  With a change of ownership for the business this is the perfect time to get a qualified labor attorney to review what’s currently being done and bring it up to date.  Sure, it’s a cost the buyer doesn’t want to incur just now with everything else happening but the cost is a very small investment in view of the overall picture and potential downside from the distraction of a disgruntled employee.

Other employee items to watch:

Make it crystal clear whether the employees are being terminated by the seller at the close of escrow and hired brand new by the buyer.
This includes whether or not any unpaid holiday pay goes directly to the employee from the seller or from the seller to the buyer who wants to keep that pay and use it as leverage to make sure the employee doesn’t request time off as soon as the buyer takes over the business and makes it harder for the buyer.
If there are any Independent Contractors make sure this is correct, especially for the purposes of Workers Compensation.  If the seller had misclassified a worker as an independent contractor and the Workers Compensation Appeals Board reclassifies them as an employee, the employer is subject to penalty assessments and Stop Orders for failure to secure Workers Compensation coverage.  The Stop Order will include up to 10 days wages for workers losing time while the employer obtains Workers Compensation coverage.  The buyer simply doesn’t need this headache.

Escrow

Putting the business through a third party escrow process is critical for both buyer and seller.  It does add an extra cost but the escrow company’s responsibility is to ensure that the assets of the business move from the seller to the buyer free and clear, all liens are removed and clearances are obtained for government agencies that all taxes and with-holdings are up to date.  I closed a deal some time ago where the seller owed a supplier some money for cabinets installed in the business.  The supplier hadn’t filed a lien and some weeks after escrow found the business had changed hands and came to the buyer looking for the $50,000 he was owed.  Because the buyer had used the escrow service the supplier had no claim against the buyer and the problem was quickly and easily resolved; for the buyer.

Escrow helps both parties so don’t go without it.

If you would like more information about buying a business please visit my webpage Buy a business; or buy a copy of my book Successfully buy your business.  If you would like more immediate help with buying a business you are welcome to send an email to Andrew Rogerson; or give me a call on 916 570-2674.