Business Finders Canada

Make the BUSINESS and Commercial property buying and selling a BETTER experience!

What kind of business should I buy?

Buying a business is one of the most important decisions you’ll ever make – and one not to be rushed into.

There are several options open to you.

It’s important you do your research to make sure you’re buying the right type of business for you and that you pay the right price for it. At Business Finders Canada, our professional business brokers will help you throughout the process.

Buying an existing business may be better for you than starting from scratch. The main reasons are it can take you twice as long and it can cost twice as much to start a brand new business.

Some of the benefits of buying an existing business include:

Once you’ve established that buying a business is the right road for you, it’s time to decide what kind of business is right for you: a franchise or an independent business.

There are pros and cons to both.

Franchise

Generally, franchises have a proven concept. They are established businesses that have grown successful enough to require more locations. That also means they have an existing customer base that’s familiar with the brand.

Franchises often come with help for setup and training. The parent company already has things like equipment, uniforms, and advertising in place, saving time and money developing your own.

On the negative side, there are rules and regulations to follow, so you won’t have total autonomy. You’ll also have to pay a percentage of the revenues to the parent company.

Independent Business

With a traditional business, you’ll have much more control over rules and processes. There are no fees to pay and the revenues will stay with you.

You set the direction of the business, which means that you can be more flexible in taking advantage of opportunities that open up in the market.

However, the risk can be greater, too. The fate of the business rests entirely on your shoulders.

When it comes to deciding what type of business is best for you, it’s important to evaluate your background and characteristics.

Ask yourself what kind of risk you’re comfortable with, what industry your skillset best lends itself to, and how well you can manage people.

At Business Finders Canada, we’ve developed a proprietary buyer profile that will give you a greater chance at success. Contact us for professional and experienced help.

For experienced advice on buying a business that is right for you, contact Business Finders Canada now at 250-491-1111. Search our business listings for sale.

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Online: Canada Business Network

Living in the digital revolution – Part 2

We’re living in a digital revolution.

Why not take advantage of the shift and pursue the potential cost savings and increase in profit that can come with digitization? After all, there’s no escaping the new industrial revolution, says the Business Development Bank of Canada.

Previously, we covered how the past three industrial revolutions changed the way business was done throughout the world.

Today, the message from the federal bank is clear: adopt or suffer.

“Our study indicates adopters of digital technology tend to forecast a much brighter future than non-adopters do,” says BDC. “Indeed, digital adopters in our survey were almost twice as likely as non-adopters to predict annual revenue growth of 10 per cent or more over the next three years…

“Digital transformation gives manufacturers a new lease on life.”

Accepting and adapting to changes in the marketplace adds value to your business when you decide to sell. Potential for growth is one of the things we encourage our interested buyers to look for in their investment.

The first step to capitalizing on digitization is soul searching.

Think about what your customers really want. These days, there is a big demand for products that allow people to be more efficient and enjoy their lives more fully – products that bring inherent value.

Once you have a grasp of what your customers need, think about how to harness digital technology in a way that increases the value of your business, like enhancing the delivery experience, making your products more accessible or increasing your company’s digital reach.

People are willing to pay a premium for those assets, says BDC.

Planning is the next step. Be strategic when mapping out the way technology – such as social media, cellphone apps or improvements to your systems – can make you more competitive.

Plan out long-term impacts, too. Do employees need more training? Will you have to hire more staff? What is your yearly budget for improvements?

Current employees should be empowered and well trained to embrace the changes and thrive. New employees should have the necessary digital skills or have a proven ability to adapt.

“It’s critical to find and retain talented employees, especially in the digital age. As our survey shows, access to skilled employees is the main challenge facing technology adopters.”

Expect some resistance internally. Keeping employees involved from the start and stressing why it’s important to the success of the company can limit fear and increase understanding.

At first, changes may be overwhelming, but adapting over time through small projects has been a strategy used successfully by some businesses.

“An early win on a pilot project will help demonstrate the value of digitization to you and your team,” says BDC.

“If you’ve so far made only limited investments in technology, start with a small pilot project.”

As we’ve seen from past industrial revolutions, failure to adapt can stunt growth – and in worst cases, force closure.

It’s a competitive world. If you haven’t started yet, what are you waiting for?

For experienced advice, contact Business Finders Canada now at 1-888-377-8009.

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Join the new industrial revolution: Part 1

Did you know we’re living in the fourth Industrial Revolution?

Industry 4.0, as it’s been dubbed, has been forcing profound changes on businesses around the world.

To get a sense of how much industrial revolutions have changed the business landscape, let’s look at the first three.

The first Industrial Revolution started in 1780 and over the following decades modernized the manufacturing process through major technological innovations, including steam engines and machine tools. The advances altered almost every aspect of daily life at the time and raised the standard of living across the board.

The Technological Revolution came next in the late 19th Century. Large-scale production of iron and steel led to railroads and the spread of goods. Hydroelectricity powered manufacturing plants, allowing mass production to spread.

It culminated in the third revolution: Globalization. Starting in the 1970s, an automated manufacturing process and an increasingly connected world again reshaped business and forced companies to adapt.

That brings us to today and the fourth revolution. Digitization is emerging and small and medium-sized businesses have an opportunity to ride the wave of opportunity that it brings.

“Industry 4.0 refers to the use of digital technologies to make manufacturing more agile, flexible and responsive to customers,” says the Business Development Bank of Canada, a federal authority on business. “It allows manufacturers to improve their efficiency, create more personalized products and react more quickly to customer needs than ever before.”

BDC has four best practices on how to take advantage of the digital revolution.

  1. Focus on customer needs: Understand your customers’ true motivations for buying from you
  2. Be strategic: Identify the technologies required to meet your customers’ needs. Evaluate the digital maturity of your business, and plan changes accordingly.
  3. Empower your employees: Share your vision, involve your employees in the process and offer adequate training.
  4. Walk before you run: Start with a small pilot project that will allow you to learn and help prepare you for a larger implementation.

Are other businesses embracing change?

“While Canada is off to a good start, only three per cent of Canadian entrepreneurs have fully implemented Industry 4.0 into their business at a time when competitors in the U.S., Europe and Asia are moving full steam ahead,” says BDC.

BDC says the revolution is a chance for businesses to boost productivity, reduce operating costs and improve overall quality.

We see it as a chance to increase the value of your business or a business you buy.

We’ll get more in depth on how to harness the opportunities of Industry 4.0 in Part 2.

For experienced advice, contact Business Finders Canada now at 1-888-377-8009.

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Make your business worth top dollar

Increasing your business’s sale value means making it less dependent on you. This involves strategic planning, having a clear exit strategy, and ensuring all financial records are organized. Autonomy is just one of several factors that will determine whether your business will sell – and its value.

Getting top dollar for your business starts with a thorough plan.

About 80 percent of businesses on the market will not sell. This is mainly due to owners not planning to sell their businesses. If you prepare your business for sale, you have an excellent chance to sell your business and increase your profit along the way.

Exit strategies are something every investor wants to see in place. Even if you’re running a one-person sole proprietorship, you need an exit strategy. Some of the factors to consider are your timeline, market conditions, management structure, and the type of strategy – such as succession or buyout.

Also before putting your business on the market, get your paperwork in order.

Undertake a thorough review of the company books and ensure everything is complete and up to date. Be certain all tax returns, government filings, and licenses are in order.

According to the Sellability Score, here are the eight factors that will determine the value of your business:

  1. Financial Performance: The size of your revenue along with your past and expected profitability
  2. Growth Potential: Acquirers typically pay the most for businesses with the potential to grow
  3. The Switzerland Structure: A business’ sellability requires that the business not be overly reliant on any one customer, employee, or supplier
  4. The Valuation Teeter-Totter: Reflects the impact your cash flow, gross margin, and profitability have on the value of your company
  5. The Hierarchy of Recurring Revenue: The extent to which an acquirer can see where your sales will come from in the future
  6. The Monopoly Control: An enduring competitive advantage gives an owner more control over pricing, increasing profitability, and cash flow
  7. Customer Satisfaction: Measures both the extent to which your customers are satisfied and your ability to assess customer satisfaction in a consistent way
  8. Hub & Spoke: Measures the extent to which your business can thrive without you

For experienced advice on preparing to sell your business, contact Business Finders Canada now at 250-491-1111.

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