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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