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Tuesday, 30 January 2018 16:20

Prepare Your Business

Prepare Your Business

"Before Anything Else, Preparation is The Key to Success" - Alexander​ Graham​ Bell

So you have decided to sell your business after years of hard work building it, we understand what it has taken to get to this juncture, blood, sweat and tears. Owning your own business isn't easy and you deserve to achieve the best price possible for your commitment to the business.

As Alexander Graham Bell said, preparation is key! Purchasing a business isn't the emotional purchase of a house, it's based on hard numbers. Clients expect to see the last 2 to 3 years profit & loss accounts, which will enable them to gauge a good overview of the business performance. The nature of conducting business here in Spain is somewhat different to what purchasers expect, however the P&L along with your tax returns will provide a clear picture of business performance.

To help you provide the necessary P&L we have provided a template for you to complete. All the formula's have been added to the spreadsheet so all you have to do is complete the monthly totals and return it to us if your business is being marketed by us.

View P&L Spreadsheet

Published in Blog
Saturday, 21 March 2015 12:45

Marketing and Branding

Marketing and Branding

Published in Blog
Saturday, 21 March 2015 12:41

Euro Weekly Write Up


Business Owners Direct, “Businesses for Sale Direct from the Owners”

In the first of a new monthly series, Nigel Fitzpatrick, from Business Owners Direct looks at how to buy a business

Example

1. Buying a Business in Spain.

Buying a business in Spain is a daunting prospect when you are from another country. The language barriers, the process, the red tape all make it seem impossible, yet actually it’s fairly straight forward.

Buying a business in Spain is no different to buying one in the UK. There’s a simple question you should keep asking yourself here in Spain, “Would I do this in the UK?” If the answer is no then invariably it’s right. The golden rule is not to get carried away with it all and keep your head, after all you are about to go into business!

Number One rule is to always appoint a well known and recommended lawyer to act on your behalf. The lawyer will negotiate on your behalf with the Spanish business owner and landlord (if language is a problem) and help you get the best deal. You may well be purchasing an English business and because you can converse you may think you don’t need a lawyer, WRONG!

Prepare yourself for your purchase, sit down and structure your business plan. (We will cover in more detail how to compile a business plan in future issues). Research the business, do your “due diligence” and don’t rush in. Visit the business at different times of the day, sit outside and watch, do this for a week and it will give you a good understanding of the business. Don’t ignore your potential competitors, see how and what they are doing, build your knowledge and use it to your advantage when you begin your business.

How long does it take to buy a business? Purchasing a business is not a lengthy procedure, and normally it can be completed in a matter of weeks.

Associated costs – A lawyer will normally charge €80-€1500 for the conveyance work carried out. An opening licence if needed costs in the region of €600.

Next week I will look at Business Plans, every business should have one!

2. Business Plans

A business should always have a business plan; initially this will capture the strategic operational and financial aims of the business, which will be adapted to as your business grows.

Ideally the potential/business owner should write the plan, but write it in the perspective of the audience. What’s the purpose of the plan? Is it for personal use to refer to? Or is it to secure finance or investment? Or simply communicate the future plans of the company? Think about who will be reading the plan and tailor it accordingly.

Do your market research, factors such as the market size, potential growth paths. For example an internet cafe would research the local population, household internet coverage, and predictions on whether it’s likely to grow or decline.

Going into business you have to have a measure and understanding of your competitors, if your market sector is highly competitive is this price led? How will you compete effectively with the existing players?

When writing your plan, be sure all the key areas are covered, include colour charts and spreadsheets.

The numbers will be under scrutiny, all your costs should be documented in full and sales predictions should be realistic and conservative. Preparing a cash flow chart and a break even chart you will be able to establish how many sales you must achieve to cover your costs and also how finance you must raise to start your new enterprise. At the beginning there are always many start up costs, and sales can be uncertain, so make provision for a strong cash flow budget.

As I have previously mentioned a business plan is a vital tool and you should always prepare one before embarking into business, and you should always refer to it in later stages and adapt it as your business grows.

There are templates available on the internet which can help you write your plan, and also help you form you Profit & Loss, Cash-Flow and Break Even charts.

Future Issues

• Sell a Business
• Maximising Profits
• Branding & Marketing
• Operating Systems
• Forming a Company

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