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Friday, 8 November 2013

What is the biggest mistake you can do in a business partnership? 

To just trust a partner..... Yes you should trust your partner in business but there is a fine line that needs to be understood.

No room for trust and friendship in partnerships. Get it in writing -

anything less will almost certainly end in tears, court and hardship

In an age where it is becoming more difficult to do business, take proper advice from
experts, well trained and qualified business people. It is far cheaper to get the advice upfront than to
go headlong into a partnership, only to find it is the wrong vehicle for you. A
handshake does stand up in court, but you are guaranteed more protection from a
partnership contract drawn up by a lawyer. Make sure that each partner`s individual
financial structure from an income tax and estate duty point of view is secure (you
don`t want to be going into a partnership with someone who has just gone bang) Draw
up a workable financial formula for the dissolution of the partnership. Partnerships are
based on trust but you can save yourself a lot of heartache if you set them up with the
idea that they might not always be rosy.

The first shoot of trouble often occur because partnerships are frequently divided
between one person who has full autonomy over finance while the other provides the
creative clout. “Partnerships are” he says “creatures of trust”

The court archives are full of business partnerships that devolve around genesis of
good will and end on a sour note. To a large extent, the business partnership has been
susperseded by the CC, which is governed by the Close Corporation Act and is a
separate legal entity with virtually the same legal standing as a private company and
where the corporate veil shields personal liability. However, there are cases where
partnerships are more attractive than a close corporations. It depends very much on
the nature of the business, the risk involved and the projected profit and loss profile.
Partnerships, if properly set up, can be easier to dissolve and can also be very
advantageous from a tax point of view.

The essentials necessary for the creation of a partnership are:

* Each of the partners brings something into the partnership, whether it is money,
   labour or skill.
* That the business should be carried on for the joint benefit of the parties.
* That the object should be to make a profit.

One of the problems that arises is without written contracts. Although the handshake
agreement is recognized legally, it is better to get things in writing. It is wise to
seek professional advice from a lawyer when drawing up a partnership contract. Such
a contract must pay particular attention to finances, stipulating each partner`s initial
financial contribution and entitlement to profits. A partnership contract must also
include legal precautions for the dissolution of the partnership.

It is more difficult to choose a partner than a spouse. “When they do work they can be
magic” The best advice is to go into all partnerships with the idea that you might
wake up one day and hate your partner.

Wherever you have got a partnership agreement, try to work into the partnership a
workable financial formula for its dissolution. In the end, it is this that will save
disillusion.

                              
Close corporation versus partnership

* The CC is a separate legal entity while a partnership is not.
* Membership of a CC is limited to 10, there can be up to 20 partners in a partnership.
* The member`s liability in a CC is limited. In a partnership the partners assume full  
    liability.
* The CC is considered a separate taxpayer. In a partnership the partners are liable for
   tax.
* A CC is taxed at company tax rates, whereas in a partnership the profits are taxed in
   the partners hands at each partner`s marginal tax rate.
* Losses retained within the CC cannot be offset against the member`s income. A
   partner`s share of the partnership loss can be offset against his/her other income.
* The member`s salaries are deductible for tax purposes, unlike the salaries of   
   partners.       


For Further information or advise please contact us by 
Phone: Frik 0825568368
           Elmien 074 373 1888
We have been Business brokers for more that 19 years and have a range of businesses for sale.
If you want to sell your business contact us!
Everything will be handled confidential and professional.





We also do liquor license application.
New Application 
Transfer of a liquor license
Appointment of managers
Occasional or catering permits

For any liquor related business visit: www.liquorlicensing.co.za
Or contact Frik 082 55 68368
                 Elmien 074 373 1888

All liquor related advise are free.

Monday, 28 October 2013

Annual Renewal of liquor licenses.



In terms of section 98 of the Gauteng Liquor act every license shall be renewed annually within twelve months from date of issue by payment of an annual fee. The license must be renewed one day prior to the issue date printed on the license.
FEES FOR RENEWAL OF A LICENCE IN TERMS OF SECTION 98

 Prescribed Fees according to the Gauteng Liquor act.                                                                                  
Hotel Liquor license R3 500                                        Restaurant liquor license R3 000
Theater liquor license R3 000                                     Club liquor license R3 000
Night club liquor license R3 000.                                Gaming premises liquor license R5 000
Sports ground liquor license R2 500                           Pub liquor license R3 000
Dance hall liquor license R5 000                                Tavern liquor license R2 500
Pool club liquor license R3 000                                   Liquor store license R3 000
Grocers’ wine license R1 500                                     Micro-manufacturer’s license R5 000
Sorghum beer license
(on or off consumption) R2 000                

ONCE A LIQUOR LICENCE HAS LAPSED - IT HAS NO MORE LEGAL EFFECT - YOU WILL HAVE TO RE-APPLY for a new liquor license.                        

A liquor license will laps two months after the renewal date without the possibility to reinstate the license.

Do not expect a reminder from the liquor board to remind you to renew your license.
It is in the licensees own responsibility and interest to ensure that the annual renewal fees are paid on or before the renewal date.


To ensure a smooth and correct precedure on renewing you liquor license in Gauteng
you can contact Frik Liebenberg Liquorlicense Consultants to collect your renewal advice from the liquor board in Johannesburg and deliver it at your premises.
To enable us to correctly offer this service we will need the following:
A certified copy of the license
A certified Copy of the receipt that was paid for the previous year.

A small administration fee will be charged.


For More information regarding Renewal of liquor licenses please contact us on the following:


Phone: 082 5568 368 (Frik)

            074 373 1888 (Elmien)



Tuesday, 3 September 2013

More Important Information relating to a Licensed Premises.

Information relating to a Licensed Premises.




1          Upon approval of the Liquor License the Applicant pays to the Liquor Board of R 1 500.


Gauteng Liquor licenses must be renewed one day before the original issue date of the Liquor License at a cost of R 3 000 per year. If you renew one month after the issue date a fine of 50% and two months after the issue date a fine of 100%is imposed. The third month the license expires without a possibility of reinstating the license. A new application must then be made.
A renewal advice must be collected from the Board at 92 Main Street Johannesburg and payment must be made at First National Bank.
Your renewal advice and FNB receipt must be kept for the renewal process of the following year. If the receipt is lost, you can not renew the license the following year.

2        The liquor license certificate must be displayed on a conspicuous place on the premises and be produced on demand by a person authorized thereto by this act or any law.

3         If your liquor license is in the name of a Close Corporation, Company, Club etc. a section 40 application  must be made whereby a natural person is appointed as manager over the license. This person must be on  the premises at all times.

4        Do not make any structural changes to the premise before a Section 43 application for the alteration, addition or reconstruction of the premises has been approved by the liquor board.

5        A licensee shall refuse to sell alcohol to an intoxicated person.

6     A licensee must display on the front door or window of a licensed premises a notice with characters of larger than 5 centimeters in height the following:
                                     - Name of Business.
 - Type of license
 - Times of Business
  - License Number

7    A liquor license in Gauteng can not be removed from one premises and transferred to another premises. A new application must be made on the new premises.

8     Sale of liquor to individuals under 18 years old is regarded in a serious light and can result in criminal charges brought against the seller and / or the license holder.





For more Information Visit our website www.liquorlicensing.co.za
or you can email us at frik.christien@gmail.com
You Can Follow Us on Twitter @licensingliquor

You can also contact a liquor license consultant directly by phoning 
082 556 8368






Thursday, 22 August 2013

Liquor License: We Take the hassle out of Liquor licensing.

Liquor License: We Take the hassle out of Liquor licensing.: We Take the hassle out of Liquor licensing. The Services we provide is as follows. We do the application this includes the descript...

We Take the hassle out of Liquor licensing.

We Take the hassle out of Liquor licensing.


The Services we provide is as follows.


  1. We do the application this includes the description of your premises, Comprehensive written representation [According to reg3(2)(c)].
  2. Floor Plan of your premises. (please note that not all consultants include this in there quote and will ask you to draw up your own floor plan)
  3. If you are in Gauteng Province We pay and apply for your South African Liquor Traders registration
  4. We also Pay your Lodgement fees 


Please take note that Not All Liquor license consultants include this in there fees!! 

All We require from you is as follows


  1. Copy Of the applicants ID 
  2. If you are applying in a business name we will need the Certificate of incorporation
  3. Most important is the ZONING of the premises. That is why we need the zoning certificate.
  4. Ensure that you are in good standing with SARS (if your in Gauteng)


This is just to mention a few documents that is required and what services we offer.

For more information please contact us on the following:


082 556 8368

or visit


For more information

Friday, 16 August 2013

Liquor License: Liquor license Consultants Contact Details

Liquor License: Liquor license Consultants Contact Details: We can be contacted by anyone of the following detail! Email: frik.christien@gmail.com   You can email us with all your questio...

Liquor license Consultants Contact Details


We can be contacted by anyone of the following detail!



Email:

You can email us with all your questions

Phone: 

082 556 8368 
for the more personal touch and to make an appointment. 

Website: 

Here you can browse our pages loaded with information regarding you Zoning of your property, types of licenses and lots more




We also sell businesses in the Vaal Triangle area visit 


Liquor License: Liquor License: May I Rent a liquor license????

Is renting a liquor license legal???
Liquor License: Liquor License: May I Rent a liquor license????: Liquor License: May I Rent a liquor license???? : Q             May I rent a Liquor License from a license holder or may I use the license o...

Wednesday, 14 August 2013

GUIDELINES AND INFORMATION WHEN BUYING A BUSINESS

            BUYING A BUSINESS - BASIC GUIDELINES AND INFORMATION

Introduction

Buying a business - basic guidelines and information - is intended as information for the first
time buyer and buyers with some business experience. Detail explanations on the subject under
discussion falls outside the scope of this “Basic guidelines” and should you require further
information kindly contact your business broker, Frik Liebenberg at 082 556 8368 or
074 373 1888

1. Reason for buying a business


    Be sure that your reason for buying a business is logical, and based on facts.
    To be relieved of stress from your present work situation is generally not a
    good reason to buy a business.There are no stress free businesses. It is           
    advisable to have the support of your spouse in this venture, especially if you       are a first time buyer.

2. Choice of an agent/business broker

    A business broker should have a working knowledge of contract law, financial statements/
    balance sheets (and be able to read between the lines) be able to value a business
    and have practical business experience. An agent selling houses IS NOT AUTOMATICALLY
    QUALIFIED TO SELL BUSINESSES. Your business broker should spell out the process
    and implications of the transfer of a liquor licence, cost of stocking and running the business.

    Your business broker should be able to act in a consultancy capacity for a considerable
    period (+/- 1 year) after handover to assist you with difficulty you might experience after
    your purchase.

    The following questions may be asked by the prospective buyer to the business broker to
    ascertain whether the business broker is suitably qualified to assist him or her in purchasing
    a business.

    1) Do you operate from a registered business with a formal office?  

    2) How long have you been a business broker? (remember a residential estate agent is
  not automatically qualified to sell businesses)

    3) Are you registered with the Estate Agency Affairs Board?

    4) Are you registered with the Institute of Realtors?

    5) Did you complete business broking courses i.e. “IRSA Business Broking Course”?

    6) Can you evaluate financial statements and read between the lines?

    7) Can you do a professional valuation of a business? (Not by the magic multiplier method)

    8) Will you assist me for at least one year after purchase and are you qualified to 
evaluate and identify problems in a small business.
    9) And most important, have you ever owned a business? (If not, you are talking to
a marriage councilor, who never was married)

    Remember, you are placing your life savings in the hands of your broker. Does your 
    broker look after your interest, or after his own wallet?

BUYING A BUSINESS - A COMMITMENT

Don`t buy a business if you are not prepared to make a total commitment. That is a financial
and personal commitment. Nobody will make a commitment on your behalf while your money,
job and assets are safe and secure. The risk in business is real, and there are no guarantees,
however the reward are out there for the person who is prepared to take a calculated risk and
strive for self - actualisation.

Cost of buying a business

If a business is advertised for say R100 000,00 you will need more than R100 000,00 to 
purchase the business because of “Hidden Cost” which are not always spelled out by
ignorant or dishonest agents.

The “hidden costs” are made up of the following:

A) Rent deposits

     Your first month`s rent payable might be higher than anticipated.
     Most lessors require two times your monthly rent i.e. one months rent
     in advance plus one months rent as deposit. (If your rent is R3 000 your first payment
     can be R6 000.)

B) Electricity deposit

     Some buildings, not all, will include the electricity deposit in your rent deposit. Otherwise
     you may be liable for a deposit which is +/- three times the average usage i.e. if your
     electricity usage is likely to be R1 000/month you may be liable for a deposit of R3 000.
     It might be more or less, dependant on the situation. 

C) Stock

     Your business broker should find out what is the optimal stock value for running the
     business most efficiently.
     Then: - if stock is included - calculate the fast moving stock value you must add to the stock
     which is included and add this to your hidden cost.
     Then: - if stock is excluded - add the total stock value required to run your business, to
                 your hidden cost already calculated.


     PLEASE NOTE:
     The prospective buyer must realise that when a seller, sells a business, and the contract
     reads that the purchase price includes a specific value of stock, that value of stock
     should be in the business at the time of the handover. But the seller will most likely
     deplete the fast moving stock and refrain from buying stock or consumables if it`s not
     really necessary. That means, when the buyer takes over the business, it could be
     that he or she will have to purchase a specific amount of stock. It is therefore
     advised that the buyer does not rely on the value of stock in the business at time of handover
     to generate profit and a turnover as previously, because of the unbalance in fast moving 
     stock and slow moving stock.

     It is therefore of extreme importance not to put down your last cent and expect the
     business to give you a good return. Examples of above could be for instance that the
     purchaser who takes over a restaurant, will have to replace all the cooking oil at a
     considerable cost, because the seller will stretch the oil as far as possible. Package 
     material, cleaning material and popular items on the menu will not be in stock and items 
     which are kept in stock exclusively as a service item will be in abundance, but 
     unfortunately slow moving.

D) Working capital

     Most businesses fail primarily because the owner has run out of cash to sufficiently stock 
     and maintain the business.

     A professional broker can establish the cash you need to run your new business.
     The cash required/working capital differs from business to business i.e.
     Small Take Away R  15 000
     Small Bottle store R  25 000
     Small Fuel station R100 000

     (Above are typical examples only and should not be used in your calculations without
     investigation)

     Example
     Your purchase price of R100 000 can grow as follows:
     Purchase price R100 000
     Rent deposit                  R    6 000
     Electricity deposit R    3 000
     Stock say R    3 000
     Working capital R  15 000
     TOTAL           R127 000

     This indicates the importance of calculating your hidden cost, because you will hardly
     secure a lone or bridging finance if you are just started out in your business and is short
     of working capital.


     Purchase contract

     The seller has the right to appoint an attorney to draw up the contract and the buyer is
     liable for payment. 

     When we draw up your contract, there is no charge for the contracts unless you appoint an
     attorney to verify the contract (which is advisable).

E) Lease agreement

     Your lease agreement is very important and should be verified by a lawyer. Two regular
     roguery in lease contracts falls under the “option to renew” clause and transfer of lease
     clause or sub - lease clause or sale of business clause.
     Stamp duties and admin fee may be charged by the lessor.

Financing of a business (if required)

Financing for the purchase of a business is extremely difficult to obtain.

No financial institutions will grant a 100% loan

Sufficient security in the form of fixed property will be required. Remember, a house recently
purchased can hardly be given as security. Proof that the business can cover the loan and 
support the buyer is required.

A comprehensive business plan must be prepared and should include at least the following:

1.  CV of buyer
2.  History of the business and competitor analysis
3.  Income statement and balance sheet
4.  Cash flow analysis
5.  Information with regard to product, price, promotion and distribution strategies
6.  Target market
7.  Capital available (Buyers commitment)
8.  Capital required - detailed purchase price and “Hidden Cost”
9.  Lease agreement (Example)
10.Purchase contract
11.Asset list and values
12.Staff details (Expertise and wages)

(This can be prepared by your business broker at a nominal fee)

Unfortunately, smaller sole proprietors mostly do not have acceptable financial figures because,
hidden profits which the seller has been making, usually in the form of undeclared earnings and
other benefits, are not declared in the financial statements. They can theoretically not be
included for evaluating the business.

This is where the sophisticated buyer who knows what he is doing, come in. He knows the
risks, returns and value to him. Financial institutions usually do not have the working
knowledge of these type of businesses, and unless you have sound first hand experience
in this field, the figures will look unacceptable and a loan will not be granted.

The decision to purchase

Your decision to purchase are influenced by numerous facts. Beware of the so called
“Experts” who spread rumours and advice - especially those who never owned a business.
Once the parties have agreed to enter into a transaction, an offer to purchase should be drawn
up. Remember, an offer to purchase becomes a binding contract when signed by all parties.
At least the following should be recorded:

- The outline terms of the agreement
- V.A.T. and sale of a “Going concern”
- Definitions
- Asset list
- Stock
- Effective date
- Domicilium
- Purchase price + payment
- Occupation
- Insurance
- Debt
- Employees
- Section 34 of the insolvency act
- Conditions precedent
- Guarantees with regard to sellers
- Right to sell the business
- Ownership
- Training
- Suppliers
- Restraint of trade
- Validity of offer

Handover of business

Your broker should be present during the handover procedure to ensure:

- All the assets are in place and in working order.
- Stock taking is done to acceptable accounting procedures and correctly valued.
- All conditions of the contract are adhered to and all suspensive conditions are met.
- To act as mediator in the event of a dispute between the buyer and the seller.
- A formal handover document signed by all parties must be completed to ensure all parties
  are satisfied and all monies are handed over.
- Any amendments or new agreements signed and accepted by all parties.
- All registrations and licences are in place.

FOR MORE INFORMATION PLEASE VISIT
or email us at

Friday, 26 July 2013

Choosing a Liquor License Consultant




The applicant must take great care in choosing a Liquor License Consultant. Unfortunately there are many unethical and incompetent Liquor License Consultants.
To safeguard yourself use the following check points to evaluate a Liquor License consultant.                   
  1. Ask for references and proof that the Liquor Licenses of the references given to you have been issued by the Liquor Board.
  2. Ask for a written quote. Ask the questions – what is included/excluded? What cost must be paid by the applicant once the Liquor License is handed to him
(Does the Liquor Consultant pay the application fee, floor plan, photos, advertisements in the Government Gazette/Newspapers; does he pay for  the Liquor Traders registration (if applicable)?
  1. How long has the Liquor License consultant been operating? Ask for proof of his first successful Liquor License that was issued by the Liquor Board.
  2. Ask for identification of the Liquor License Consultant and record it.  
  
Please note.
Section 23 (3) of the Gauteng Liquor Act 2 of 2003
Where an application for a license has been refused by the Board, NO new application may be made in respect of the same premises within 1 (one) year from the date of refusal, except by special leave granted at the discretion of the Board.   It is therefore critical to choose your Liquor License Consultant with care.




Contact Us for more information 
Phone: 082 556 8368

We sell businesses in Vaal Triangle.

What to look for when buying a business

What to look for when buying a business.


A checklist as long as a persons imagination can be drawn up. However for the purpose of this exercise we list a few items that might assist a potential buyer of a small business in deciding to buy or not to buy.
·         Why is the business for sale? 

·         What was the income of the business and what is the earning potential of the business?
The seller`s income and the buyer`s income will never be the same. No two people make the same business decisions. A simple business decision can have a major effect on the profitability of the business. Some decisions only show their result over months or even years.

To determine the income of a business a buyer can look at the:
- Financial statements of the business, however the financial statements seldom reflect true figures and are often corrupt.
- Purchases of the business. A retail business such as a liquor store can be evaluated by investigating the purchases over a period of at least a year. From that information you can establish an estimated turnover figure. Check the invoices of the purchases. Establish the mark up- percentage of the products and apply it to the products and quantities. The invoices for the overhead cost and other expenses can be brought into the calculation to establish an estimated net profit. A restaurant which have high volumes of liquor purchases will have higher profit margins than a take away which does not have liquor sales.   
- Stock holding. There are businesses which have a correlation between their stockholding and their turnover figure. A liquor store with a stockholding of R80 000 can hardly have a turnover of
R400 000 per month.
- Observe. By observing the situation inside the business and store room, one can form a picture
of the operation of the business. If it is a manufacturing business, the work- in- progress can tell a story. If the store room of a liquor store is packed to capacity with quart empty beer bottles, one can assume that the seller is servicing shebeens. This business has a very high turnover with low profit margins. Some businesses are clearly over staffed which inflates the expenses and reduces the profit margins. The cost of the rent in relation to the turnover is critical. A rent which exceeds 15% of the turnover is most undesirable.
            - How long did the seller have the business? This information together with the reason for selling             can be a factor in deciding to buy the business.
            - Did the Business support the sellers household or did they have another income?

            If the business was the only source of income for the sellers household for a some time it can count               as a positive factor in the decision process.


We also do Liquor licenses
visit www.liquorlicensing.co.za for more information.

You can contact us directly on 
Phone: 082 556 8368

Monday, 22 July 2013

Business Profile Of Frik Liebenberg Liquor license consultant and business broker



Frik Liebenberg Business Brokers and Liquor License Consultants, is the oldest business brokers in the Vaal Triangle and operates mainly in the Vereeniging, Vanderbijlpark, Meyerton and Sasolburg areas.
Business Broking is regulated by the Estate Agency Affairs Board. Frik Liebenberg is the principal and is registered with the Estate Agency Affairs Board since 1996 and is the holder of a national certificate: Real Estate, NQF level 5 certificate, and is a certified Business Broker Realtor (CBBR). (His valid Fidelity Fund Certificate is available on request.) In 1988 he completed the three year National Diploma Marketing and Sales Management.
He owned several businesses and has extensive experience in the liquor trade businesses and other retail businesses.
Confidentiality guaranteed.
The seller or prospective buyer of a business can rest assured that we keep all information confidential. We meet the prospective buyer for a sit down meeting where all the buyer`s relevant information is recorded as required by the FICA act, act 38, 2001. The prospective buyer is required to sign a non-disclosure document prior to receiving any information of the business.
Prospective Buyers Interview.
All prospective buyers are interviewed to confirm their understanding of the buying process of a business, the working capital required over and above the purchase price, cash flow, legal and licensing requirements, the stock implications at time of hand-over, the impact of Section 34 of the insolvency act and the impact of the Labor Relations Act on the business buying process.
Screening of Prospective Buyers. 
In our effort  to find a willing and able buyer, we must be confident that the  prospective buyer is able to buy taking into account the factors influencing the cost to purchase the business over and above the purchase price.



SERVICES

Valuation of a Business.
We can assist with the determining the market value of your business. A realistic market value of a business can save time in selling the business.

The Marketing of a Business.
A business must be discreetly marketed. It is preferred that at the marketing stages the staff and customers are not aware of the owners intention to sell. The staff is placed under undue stress, and incidents of low morale, theft and even resignations were reported. Once the negotiations reach a certain stage the staff are informed and reassured of their position in the business.
If the public is aware that the business is for sale, a perception can develop that the business is in trouble. It can influence the viability of the business. The suppliers also become nervous and future deliveries can be jeopardized. Some suppliers may close accounts with the business in order to secure their interest.
Negotiating the Sale.
We are trained to negotiate the sale in such a manner that the prospective buyer and the seller are not influenced by one another’s actions or egos.
Financing a Business.
From experience we have learned that to get finance on the purchase of a Business is extremely difficult if not impossible. The requirements for a Business loan is too stringent for the average small business. Financial institutions will also not finance the goodwill of the business. A buyer must have considerable own contribution in cash and ample security to offer. The business will not be considered security for the loan. If the doors of the business are closed, the business has no value except for the few rand of equipment on auction.  A business loan can be payable over five years, which increases the monthly payments to such a figure, that the profits of the business is not enough the service the loan and to give the lender a reasonable income for cash flow and personal use.

No financial institution will finance a business with a 100% loan.  


You Can contact us:
Via Phone: 082 556 8368
Follow us on twitter: @licensingliquor
Follow us on Facebook LiquorLicenceapplications