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Leasing Second Generation Restaurant Space – Saving Time & Money

Eating Someone else’s leftovers doesn’t sound like the greatest of deals.  But, when it comes to your money, you’ll have to figure out if you want to buy an existing business ( e.g. leftovers), or make something new from scratch. Should you buy an existing business? Should you start a new business? That depends on you and the team you are going into business with.  There is a Right and Wrong answer for you.  We will layout some points for you to consider to help you make an informed decision that will feel, well, Just Elementary! Reasons to Buy: You want an established track record and proven business model. You will be open for business the day you take possession. Trained employees in place with a seller to offer additional buyer training. Reasons to Start: You have your own … Read entire article »

Filed under: Business Opportunity For Sale, Business Tips, Commercial Leasing, Negotiation

Nuts & Bolts to Due Diligence

Nuts & Bolts to Due Diligence

  What are the nuts and bolts of doing Due Diligence on a Business Opportunity? Of course this answer varies from business to business. In this post, we will discuss doing due diligence on B2B (Business to Business, i.e. Non-retail) businesses, such as manufacturers, service businesses and Distribution businesses. Naturally, you need to consult with legal and financial professionals in the process of doing due diligence, and even before you start. This post is informational in nature, … Read entire article »

Filed under: Business Tips, Due Diligence, Negotiation

Franchising: CNBC’s ‘Inside’ Look at it

Franchising: CNBC’s ‘Inside’ Look at it

CNBC just broadcast a show highlighting five Franchise Brands.  The official title is ‘Behind The Counter: The Untold Story of Franchising.’  The show had three story lines. One was about Franchisors doing a good job of growing and maintaining a brand (Proctor & Gamble and Five Guys), … Read entire article »

Filed under: Business Tips, Featured, Franchises, SBA, Uncategorized

Don’t Buy Treasury Bills and Bonds

Don’t buy U.S. Treasury products (Bills, Notes and Bonds) was among the insights presented by Dr. Alfred Gobar at the RIAOC meeting from 12-14-2010.  Dr. Gobar is a private practice economist that feels that inflation and interest rates are heading up in the next five years.  This means that he feels that those that are tying up capital in fixed income products such as Treasury Bills and Bonds are going to be overall money losers.  This is because he is expecting inflation to run 2-3% in the next couple of years, with interest rates perhaps reaching Carter Administration levels of 13-14% in Five (5) years.  If he is even close to correct on his prognostications on inflation and interest rates, 10 year Treasury notes yielding 3.45% (as they did today, 12-14-2010) … Read entire article »

Filed under: Business Tips, Real Estate Tips, Uncategorized

The Missing Picture: Due Diligence

While you are analyzing a business for sale and after you have agreed to a preliminary terms to purchase a business opportunity, you are going to have to do perform and finish your Due Diligence. A quick note, you should consult with and hire legal and financial professional s to assist you with the process. Having been involved in many transactions, I can share some insight with you about the process and what to look for. Number 1 most important thing to figure out is why is the seller selling? Make sure it is a legitimate reason, such as a genuine retirement. Get to know your seller to the best of your abilities on a personal level. Meeting with the seller in casual settings … Read entire article »

Filed under: Business Opportunity For Sale, Business Tips, Negotiation

Five Rules for Negotiating Commercial Leases

Five Rules for Negotiating Commercial Leases

Your Bottom Line, is it important to you?  Yes, ok, then let’s see where you can increase it.  Occupancy cost is typically the first expense item we review as Commercial Brokers are at Just Elementary, Inc.  Every business has a physical cost to exist and occupy space, even virtual businesses (think server space). For  those business owners that lease the space that their business occupies, this post will cover Five basic Rules to negotiating or … Read entire article »

Filed under: Business Tips, Commercial Leasing, Landlord, Negotiation, Real Estate Tips, Renegotiation

Is My Industrial Business Lease Good or Bad?

Simple Things to consider whether your lease is friendly to your business, or is it holding your business back from growth and great profits and your lifestyle growths. Number 1, the occupancy cost.  Simply put, this is the lease rate, plus NNN charges including other cost variables such as transportation costs and operational efficiencies.  Ideally, the occupancy cost would be as low as possible.  Given the fact that Industrial properties are not the ideal ‘outside investor’ type properties, the only major factor affecting real estate prices and lease rates is the health of the economy.  In this recessionary market, most local industrial markets have seen lease rates plummet with skyrocketing vacancies.  This means Industrial property prices have plunged and availabilities are high.  So the good news is that you can attempt … Read entire article »

Filed under: Commercial Leasing, Landlord, Negotiation, Real Estate Tips, Renegotiation

Factors that Effect the Value of a Business

Factors that Effect the Value of a Business

Factors Affecting the Value of a Business Lease & Occupancy Cost In the cases of businesses operating on a lease, the lease terms are key to affecting the contribution of value to the business.  For retail business that are not footloose, a long term is key to positive value.  For example, with a coin laundry, the lease needs to be typically, 20 years or more in length.  Long term leases are important with most retail businesses.  In … Read entire article »

Filed under: Business Tips, Business Valuation, Uncategorized

Business Valuations, Where is the Value?

Business Valuations, Where is the Value?

If you poll business owners about how much their business is worth, you will get a broad range of answers.  Ascertaining the actual value of a business is not a simple matter.  The first step is to determine the type of value being analyzed. Are we talking about Resale Value, Liquidation Value, Merger/Acquisition Value, Book Value, Divorce Sale Value, etc.  All of these situations present different circumstances, which lead to different valuations. Merger/Acquisition Value The Merger/Acquisition (M&A) value … Read entire article »

Filed under: Business Valuation