Cost effective ways to increase profits:

Businesses are always looking at cost effective ways to increase revenues and profits, there are plenty of improvements that can be made in a business to boost sales or profits without spending much extra.

1. Know the right price: You should have a fair idea on what is the right price for the products that you sell. The right price is not necessarily the maximum price at which you can sell the product itself, or the maximum number of units that can be sold; but the maximum profit that can be made. For example, you may find that you are easily able to sell 100 candy bars at a dollar each, the cost of which is 80 cents. That means you are able to make a profit of 20 dollars on these. Try raising the price by 10 cents and see if you can still sell 100 or do the sales drop off? If they do drop off are you still making your 20 dollars of profit? Similarly can you lower prices to boost sales significantly? You need to keep tinkering with the price at which your products sell to arrive at an optimum price and sales mix.

2. Talk to your customers: Your customers are the most significant source of insight for raising profits. Just having a chat with customers is a significant source of business knowledge that can help boost profits. Most grieved customers would never say a word and just quietly leave. This not only means loss in future sales from such customers but also the negative referrals that such customers will give other people who won't be shopping in your stores anytime soon. Talking to customers helps a business in understanding the things that you do wrong and other areas of improvement that help you grow your business.

3. Motivate your employees: For many years McDonald's has had a strategy of treating their customers as the number 1 priority and the employees as number 2 priority. For most businesses the front line employees like the ones at the cash register or in after sales services are the primary touch-points for the customers. How the customer facing employees behave significantly impacts the brand image of the company and therefore sales. A little word of encouragement to your employees and urging them to be polite and cheerful lifts up their spirits and in turn the spirits of the customers that interact with them and help you boost sales.

4. What sells together? You need to understand what gels well with the products that you are selling and then display them together. For this reason you see fancy lighters stocked up near cigarettes in many stores. You need to look at customer purchases and then figure out which two things have got a bigger correlation and then keep them closer so that when the customer buys one, they are urged to buy the other one.

5. Focus on existing customers: The cost of acquiring a new customer is significantly higher than the cost of nurturing and maintaining existing customers. Businesses sometimes have a tendency to take their existing customers for granted and only look for new ones. Avoid this pitfall and build relationships with your existing customers and focus on them so that you can sell more to them.

By following a common sense approach to building your customer base you can be in a position to improve sales and profits without having to spend extra money on these initiatives.

How to end your partnership and complete the business entity.

A lot of people go into business with family, friends or investors, and many of them decide to form partnerships. As a legally recognised business entity, a partnership can be formed between 2 or more people who intend to make a profit with their business venture. Though easily formed, many people often find that partnerships are difficult to end properly. It is usually necessary to draw up a suitable Partnership Dissolution Agreement to ensure the completion of the partnership is successfully achieved. If you are in a partnership and want to dissolve it, here is what you need to know?

WHAT IS A PARTNERSHIP DISSOLUTION AGREEMENT?

It is just what it sounds like it is. A Partnership Dissolution Agreement is a document drafted to officially end the existence of a partnership. Since a partnership is a legally recognised business structure, a written agreement must be completed before the partnership can officially be concluded. A Partnership Dissolution Agreement allows all the members of a partnership to do this with ease.

WHAT IF WE CAN'T AGREE TO THE DISSOLUTION?

If the partners cannot come to an agreement as to how they will end the partnership, they usually will have to refer to the terms of the original Partnership Agreement. Additionally, if the Partnership Dissolution Agreement is signed and agreed to by all parties, but in the process of dissolution a conflict arises that cannot be settled, the agreement should include a method for settling such disputes. This is usually accomplished by the inclusion of an arbitration or mediation clause in the dissolution agreement.

WHAT DO I NEED TO INCLUDE IN THE PARTNERSHIP DISSOLUTION AGREEMENT?

Before you can successfully end the partnership, you must ensure the dissolution agreement includes some needed information. The document will have to state what the various partner's interest are, what kind of distribution of assets or debts will take place, the date of dissolution, etc. The details of a dissolution agreement must be complete and make it clear to all parties what happens to the partnership assets and interests. If the partners are to receive payments or portions of the partnership's liquidated assets, these amounts will have to be stated in the agreement.

DO WE HAVE TO INCLUDE A FINAL FINANCIAL ACCOUNT?

Almost always. Before the partnership can conclude business, a final financial inventory will have to be made. These are usually incorporated into the Partnership Dissolution Agreement, either by reference or directly.

The decision to conclude the business of a partnership is one that needs to be prepared for by all members. No matter the reason for concluding the partnership, you must ensure the process is completed effectively. A properly drafted Partnership Dissolution Agreement will make it clear what each partner's rights and obligations are. The business of the partnership will be concluded simply and without conflict if you create a good dissolution agreement. If you create an unclear document, ending the partnership may be more trouble that it was to run it.

Use an agency agreement to grant exclusive agent rights.

Some businesses lend themselves to close relationships between parties. Salesmen who are assigned a certain territory, literary or talent agents who represent an actor or author, as well as other close business affiliations all demand a very specific business relationships: the exclusive agent-principal relationship. Whenever you intend to permit someone to act on your behalf exclusively, or you are the person who plans on acting on another's behalf, you need an Exclusive Agency Agreement. Here is what you need to do to make sure your agreement is suitable:

WHAT IS AN AGENT-PRINCIPAL RELATIONSHIP?

Whenever one person agrees to allow another person to act on their behalf, they have entered into an Agent-Principal relationship. The agent is the person who acts on behalf of the person who hires them, called the principal. Agents can agree to deals as if they were the principal, making legally binding agreements that will be binding against the principal.

WHAT IS AN EXCLUSIVE AGENT?

An exclusive agent is one with special, exclusive rights that no other agent can have. A principal can hire an Agent to represent their business interests in a certain territory, industry or region. They can also hire an agent to represent specific properties, or for specific times, or any number of other constraints. The key difference between an Agency Agreement and an Exclusive Agency Agreement is that the exclusive agent is the only agent entitled to act on behalf of the principal, in as much as is specified by the agreement.

DOES BEING AN EXCLUSIVE AGENT MEAN YOU ARE THE PRINCIPALS ONLY AGENT?

Maybe. Depending on the kind of agreement you enter into, a principal can have numerous agents, all of whom are granted Exclusive Agency Agreements. For example, a manufacturer may enter into an Exclusive Agency Agreement with numerous sales professionals, all of whom have exclusive rights. These agreements will typically limit the agent's exclusive rights to a specific territory or product.

HOW DO I ENTER INTO AN EXCLUSIVE AGENT AGREEMENT?

Depending on whether you are to be the principal or the agent, you first need to determine what your needs and desires are. Some agreements will be very broad, while others will be much more specific. No matter what, it is up to you to ensure the terms of the agreement accurately reflect what you want.

WHAT NEEDS TO BE STATED IN THE EXCLUSIVE AGENCY AGREEMENT?

This varies by situation, but there are several things that must be included in any agency agreement. Each party must know what rights the agent has, what obligations the principal has to the agent, the manner of termination of the agreement and many more. If the agreement covers sales or commissioned sales, these factors need to be included as well.

Like any good contract, the Exclusive Agency Agreement needs to be specific, complete and easy to understand. Since the agreement will serve as the basis for a close business relationship, it is in the best interests of both parties to be sure they are comfortable with all the terms of the agreement before they enter into it. A strong, properly formed Exclusive Agency Agreement can be the foundation to a solid relationship, while a poorly formed one can lead to numerous problems down the road.

How to assign a lease to someone else.

If you are leasing a property such as a house, home unit or commercial premises, you may come to the point where you no longer wish to use the property. Unfortunately you are still obligated to honour your commitment by the terms of the lease to continue paying the rent and maintain the property. If you find yourself in this situation, you may want to consider assigning the lease to someone else. A transfer of lease, although similar to a subletting the property, is a simple contract you can enter with someone else so they accept responsibility for your lease obligations. However before you do, there are a few things you should know;

WHAT IS A LEASE ASSIGNMENT? A lease assignment is an agreement where the current lessee (the person responsible for fulfilling the lease obligations) enters into a contract with a new party "called the assignee". The assignee essentially agrees to take over the obligations and responsibilities of the original tenant under the original lease. To put it simply, it's a way to get someone else to take your place in the lease, with the new party taking on all the duties under the original lease.

WHEN CAN I USE A LEASE ASSIGNMENT? You can feasibly use a lease assignment whenever you are leasing a property. Be it an assignment of a real estate lease,an automobile lease or anything else, you can generally assign the rights and duties under the lease to a third party in almost any circumstance. You may or may not have to first get the lessor's permission before entering into an assignment of lease agreement, but that depends upon the terms of the underlying lease.

WHAT IS THE DIFFERENCE BETWEEN SUBLETTING AND ASSIGNING A LEASE? When you sublet all or part of the premises to another tenant you are still obliged to honour your obligations under your lease contract with the owner of the property. If you choose to Assign all your rights and obligations under the lease to another party, you would use an Assignment of Lease agreement. Under an Assignment of lease agreement, the new tenant agrees to assume all those rights and obligations on your behalf and indemnifies you against any further obligation to the property owner.

HOW DO I ENTER INTO A LEASE ASSIGNMENT? As with any business agreement, to ensure there are no misunderstandings, you are best advised to have your assignment of lease agreement in writing. The agreement should refer to the terms of the original lease, as well as state what each party will or will not be responsible for under the terms of the assignment. For example, you may enter into contract of assignment where by the new party "the assignee" agrees to do everything required by the tenant under the original lease, except pay the rent. The original tenant "the assignor" might agree to pay the rent and accept a smaller (or even larger) payment from the assignee.

WHAT DO I NEED TO KNOW BEFORE I ENTER INTO A LEASE ASSIGNMENT? At a minimum, you'll need to know the terms of the original lease, including the length of the lease, any legal regulations regarding the assignment and the new terms. You'll also want to make sure each party reads the Assignment, completely understands their obligations and signs it.

Assigning real-estate or property leases to other people can be a very effective tool in the right situation. Whether you want torelocate your business, travel the world, or simply don't want the responsibility under the lease any longer, you can use lease assignments to your benefit. A well-crafted Assignment of Lease Agreement will spell out each parties duties and shield you from potential liability.

Sublease Agreement Template

Assignment of Lease Agreement Template

"VENDOR FINANCE"

Why Vendor Finance?

Vendor finance is often offered as a deal closing tool to help the sale of a business. It is intended to strengthen the relationship between you and the buyer. Vendor financing can help the buyer to establish a good banking relationship with a lender and your benefit can be a shorter selling cycle.

What is Vendor Finance?

Maybe the price of your business is $500,000 and you have someone willing to pay the price. But it could be the buyer who cannot raise the full purchase price. This is quite common for business loans and the reasons include lack of security for a loan. Mostly people end up putting their house forward as security if they have enough equity in it. With falling house prices this has become more difficult. In the current economic climate it is harder than ever to get a loan to buy a business. In 12 months time it may be easier for business buyers.

Say you are the vendor and you have a buyer willing to offer you the purchase price and can only raise $250,000. As the vendor you can negotiate an agreement where the buyer pays this amount and agrees to pay the rest either as one or two installments over a couple of years.

There are many options you can negotiate but make sure you protect yourself. You can also charge interest on the outstanding amount and you should take some security for the money the buyer has borrowed - a house, even the business itself. This way, if the buyer defaults on the loan you at least get something in return.

Advantages of Vendor Finance -The most obvious advantage of vendor finance is that you can sell your business quickly. You don't have to wait around for someone with access to enough money to come along.

You can achieve a much better selling price and terms with creative thinking.

For example, take the Farrier who trained apprentices over the years, and is ready to retire and wants to sell the business. Working with horses and their feet is a highly specialised business and the most obvious buyer is the employee. The employee may not have the cash or borrowing capacity to buy the business outright so the Farrier suggested a deal. It could be that 50% of the asking price upfront and further payments are made when set milestones are reached.

Get advice from your Accountant and Lawyer about structuring vendor financing terms and conditions, there are tax implications to consider so get expert advice.

The other benefit of vendor financing is that you are showing confidence in your business and its future. In many industries it is normal for vendors to sell their businesses in installments over a 3 year period.

In many countries vendor finance is a common form of financing business sales. But, in other countries, business brokers tend to discourage vendor finance simply because there is no commission in it for them.

Selling your own business is something you can do, and do better than anyone else - no one has the information and knowledge of your business like you do. Get more information about this at www.sellingbusiness.com.au.

Disadvantage of Vendor Finance -

The biggest disadvantage of vendor finance is you are still tied to the business. There is the chance the buyer will go out of business before you get paid or some other unforeseen problem could arise.

The other disadvantage is you have to wait for your money. Interest is charted on the outstanding amount to at least earn something on your investment.

You can end up with the business back in your hands if the buyer defaults on the loan. Whatever the terms of the vendor finance you agree to make sure you get a large part of the payment upfront, probably not less than a third of the total price. There is nothing worse than selling your business and the buyer does a bad job. If you have no money upfront - you lose everything.

Information Memorandum

The Information Memorandum is a marketing document used by the vendor to promote their business to a potential buyer. The aim of the document is to make the business sound attractive to buyers, and also to convey all significant information to parties who are already interested in making a purchase.

A good Information Memorandum will predict all the questions a potential buyer might have about your business. It should contain a description of the business's history, its past achievements and future prospects, as well as the particulars of its operation.

For More Information on Selling a Business, Appraisals and Valuation Kits and all the necessary legal documents and forms click here

The Economic Realities of Online Legal Services

According to a recent study, "an estimated four-fifths of the legal needs of the poor, and the needs of two-to three-fifths of middle-income individuals, remain unmet."

Recent advances in technology and increased access to the Internet have made it possible for companies other than law firms to deliver document preparation services to these market segments.

Online legal document preparation services provide alternative legal solutions to the vast numbers of people who have unmet legal needs either because they are unable or unwilling to pay for professional legal advice.

Although such services are not without potential problems, proper quality controls can ensure that the benefit from these services outweighs any potential harm.

The diversity of legal documents available online is staggering. As long as you have a computer and a connection to the internet you can purchase a will, divorce, prenuptial agreements, power of attorney, or joint tenancy agreements, just to name a few of the thousands of documents available.

Online document providers not only offer documents to individuals, but businesses can find human resource forms, partnership agreements, commercial leases, non-disclosure greements, and joint venture agreements among many other business documents on offer.

Online Document Preparation Services

Group one consists of people with the resources to pay for professional legal advice and document preparation.

Group Two includes people who cannot afford legal counsel to complete their document, and must therefore seek alternative solutions.

Although Group One can afford an in-office solicitor consultation, it should be noted that many people in this group often seek out cheaper, more convenient alternatives.

It is also viable to combine the people from Group One who would seek out alternative solutions with those from Group Two who have no other option. This market includes people who need a legal solution, but find consulting a solicitor 'too costly, excessively time consuming, too cumbersome and convoluted, or just plain forbidding'. Because of these constraints this significant group of people usually leaves their legal needs unmet.

For example, an online service can prepare a document that a court will accept providing Group Two with a solution to their legal problem that they otherwise would not have had. If Group One purchases the same document online it benefits from the cheaper alternative because it has spent less money for the same result. If Group One pays a solicitor to prepare the document, it spends more money for the same result.

Opinions as to whether a software program can generate an effective complex legal document vary widely. Let's use a Will as an example. If you know your own mind and have good will-drafting software-which can instantly produce all the magic phrases -drafting a sound will requires a very modest investment of time. However, it can be argued that while there is a great deal of standardized technical language in any estate plan, the give and take with a trained solicitor in developing the plan should not be under estimated when dealing with complex issues.

For the sake of discussion, assume that a will prepared by a solicitor costs more but has a higher probability of meeting the testator's goals than one purchased online. In these circumstances, Group One is better served buying the document from a qualified solicitor Because they will gain greater benefit in the future, this will outweigh the added cost of having the will prepared by the solicitor.

However, if the added cost of a solicitor-prepared document outweighs the benefit, then the individual may be better off purchasing a document online. Group Two benefits from purchasing their document online regardless, because they have a document that accomplishes at least some of their goals that they would not have been able to afford otherwise.

To illustrate, suppose that Group One has the choice of purchasing a will from a solicitor for $500, or purchasing one online for $20. Further suppose that the will prepared by the solicitor has a ninety-percent chance of accomplishing a benefit to the estate of $2,000 over having no will, while a will purchased online has a seventy-percent chance of accomplishing the same benefit. Under these circumstances, the risk cost of purchasing a will online versus paying an attorney to prepare it is $400 and is not high enough to justify the added $480 in cost. Group One should purchase the will online.

However, suppose that the will prepared by the attorney has a ninety-percent chance of accomplishing a benefit to the estate of $5,000 over having no will, while the will purchased online has a ten-percent chance of accomplishing the same benefit. In this case, the risk cost of purchasing a will online versus paying an attorney to prepare it is $4,000 and certainly justifies the added $480 in cost. Group One should purchase the will from a solicitor. In either case, Group Two is better off purchasing a will online than having no will at all because it has at least some chance of realising the benefit to the estate.

Online document preparation clearly benefits Group Two in almost all circumstances. It gets the benefit of legal protection that it would otherwise be unable to afford. As long as the documents purchased online are of acceptable quality, they are better than no documents at all.

Online legal document preparation services provide an important alternative solution to millions of people who currently have unmet legal needs. As the quality of documents produced online increases, society benefits more from these services.

Online Legal Services

Commercial Retail Shop Tenancy leases and laws

Retail tenancy laws through out Australia have been developed to protect the interests of small business consumers and to assist in levelling the playing field for the parties involved. They seek to provide this protection by making sure that prospective tenants have sufficient information to make a sound business decision about entering into or renewing a Retail Shop Lease rental Agreement.

The type of lease you enter into will depend on a number of factors, including the premises itself and what you wish to use it for. Each state has its own Legislation or Act that defines the type of premises and whether the act will apply. Whether you are a landlord or a tenant its imperative you understand your rights and obligations under the relevant Act and honour your obligations under the lease agreement to ensure you stay out of the legal minefield.

The retail tenancy law is very clear in most Australian states:

A landlord in a retail lease must not, in connection with the lease, engage in conduct that that is misleading or deceptive to a tenant or guarantor. A party who suffers damage by reason of misleading or deceptive conduct of another party may make a claim for compensation.

Because the laws are different in each state we've outlined the requirements of each state on the following pages

• New South Wales
• Victoria
• Queensland
• Western Australia
• South Australia
• Northern territory
• Australian Capital territory
• Tasmania

All of your rights and obligations are contained within the following Acts.

• New South Wales: The Retail Leases Act 1994
• Northern Territory: Business Tenancies (Fair Dealings) Act.
• Victoria: Retail Leases Act 2003 and the Retail Leases (Amendment) Act 2005
• Western Australia: Commercial Tenancy (Retail Shops) Agreements Act 1985
• Queensland: Retail Shop Leases Act 1994
• South Australia: Retail and Commercial Leases Act 1995
• Tasmania: Fair Trading (Code of Practice for Retail Tenancy) Regulations 1998
• ACT: Tenancy Tribunal Act 1994 and the Commercial and Retail Leases Code of Practice.

Consultancy Agreements:They Have You Covered!!

Hiring a Consultant has many benefits. One of these is the clear non-permanence of the association between you and the consultant. Hiring consultants lets you avoid the considerable tax and administrative costs that are part and parcel of hiring and preserving regular employees. It also gives you access to specialised skills and expertise that may not have been available in your own business organisation.

Unfortunately, there are also drawbacks to hiring consultants. While most consultants are conscientious professionals, there are no guarantees to this effect. To protect yourself and your business interests, you should carefully dot the i's and cross the t's. In other words, you should draw up a consultancy agreement.

The following are specific reasons for using a consultancy agreement in business:

• Formally set up consultancy relationship

A consultancy agreement formally sets up the relationship between you and the consultant. Thus, there is no room for ambiguity about the nature and status of the consultancy relationship; both parties know the relationship exists and the consultancy agreement makes it formal and legal.

This makes it easier for you to seek compensation later for any damages that may arise out of your association with the consultant and out of the work the consultant has done for you. Furthermore, a formal consultancy agreement also makes it easier for you to prove that you hired a consultant, not an employee, and are thus entitled to the tax benefits associated with hiring consultants.

• Clearly define the consultant's duties and responsibilities.

A consultancy agreement defines what is expected from the consultant. While it is more than possible to get satisfactory results even if you have verbal agreement with your consultant, it is better to safeguard your interests in case you don't get the results you expect.

A consultancy agreement gives you legal recourse if the consultant fails to honour your agreement. Apart from giving you legal recourse in case the consultant fails to deliver. A consultancy agreement also serves as a handy guide for the consultant if he needs or wants clarifications about what is expected in his or her ability as consultant.

• Define subcontracting responsibilities

While it is true that your control over the consultant you hire mainly lies in the "what" (i.e. The result) and not the "how," you do have some leeway over the consultant's methods of performing his or her duties and responsibilities to you. Specifically, you have control over whether your consultant may subcontract the tasks related to your project.

Through a consultancy agreement, you can specify whether the consultant is allowed to subcontract his or her tasks to other entities. In case subcontracting is allowed, the consultancy agreement outlines the conditions which have to be met for subcontracting permission to be granted. Finally, a consultancy agreement makes it unquestionably clear the consultant has complete responsibility for ensuring the quality, compliance and timeliness of the output named in the agreement.

• Limit and Define Compensation

A consultancy agreement usually specifies the amount payable to the consultant for his or her services. It also outlines which of the consultants' expenses are covered by the consultancy fees. Typically, the face value of the award is inclusive of the administrative and operational costs involved in performing the consultant's duties and responsibilities.

Thus, the consultancy agreement protects you against arbitrary claims made by the consultant that you are responsible for his or her costs (for example Telephone bills, office space rental, office equipment buy or lease,), taxes and other costs. This also protects you in case the consultant belatedly decides the fees you have agreed to pay are, after all, not enough compensation for services delivered.

• Know what to expect and when to expect it

The consultancy agreement typically has a schedule listing the consultant's responsibilities. It breaks the output needed of the consultant into tangible deliverables with definite deadlines.

Through a consultancy agreement, therefore, you know exactly what you can expect from the consultant and when to expect it. This gives you the ability to confidently plan other projects that depend on or complement the project on which your consultant is working.

• Protect your intellectual property rights

A consultancy agreement also usually specifies who has intellectual property rights over the contract materials (that is The output needed of the consultant) and the know-how produced during the consultancy relationship. It also states that rights to the materials and know-how that your company brings into the relationship remains yours throughout the duration and after finishing the agreement.

Thus, a consultancy agreement protects your intellectual property rights. This gives you full legal protection in case the consultant infringes on your rights over the materials and know-how produced by the agreement and the project.

• Protect yourself against conflicts of interest

A consultancy agreement also says the consultant confirms that no conflict of interest exists at the beginning of the agreement. It also outlines the steps to be followed in case a conflict of interest does arise during the consultant's performance of his or her duties to your company.

This specific clause of a consultancy agreement protects you against actions by the consultant that may be harmful to your business interests. In case the consultant enters the agreement with full knowledge that a conflict of interest exists (or in case the consultant does nothing to tell you of a conflict of interest arising later when the project is underway). You have legal protection and right to seek legal compensation for the consultant's breach.

• Ensure confidentiality and non-disclosure

A consultancy agreement also obligates the consultant not to disclose proprietary or sensitive information to which it is given access by your company during the project. Furthermore, in cases where an intellectual property resulting from the project cannot be patented or copyrighted, the consultancy agreement has a clause obligating the consultant to keep such property confidential.

The consultancy agreement therefore protects your primary claim to and ownership of proprietary information and materials even when such falls under the unprotected intellectual property category. The consultancy agreement, also, vests in you full ownership and control of sensitive and proprietary information which you have no choice but let the consultant access. A consultancy agreement gives you legal protection in case the consultant fails to keep your intellectual property confidential or is careless enough to disclose proprietary information that has been named in the non-disclosure clause of the agreement.

• Indemnity against liability and loss arising from legal action by outside parties.

Since you do not have much control over how your consultant performs the specific tasks related to your project, a consultant may conceivably violate the law. He or she may even infringe on third-party intellectual property rights - during his or her performance of the duties named in your contract. For instance, your consultant or his or her subcontractor, during designing proprietary software or systems for your business, may use software to which he or she gained access through another project. In this case, the third party whose intellectual property rights have been violated has choices. To file a claim to stop you from using or distributing the output that resulted out of your consultant's infringement of intellectual property rights or may even ask the proper courts to award them damages from the same.

A consultancy agreement protects you as it states that the consultant indemnifies you against claims (intellectual property rights violation, loss to life and property,) that arise out of the consultant's or his or her subcontractors' illegal actions, omission or negligence.

• Facilitate dispute resolution and ending of the contract.

True to any other contract, the consultancy agreement usually has rules for relationship breakdowns. The consultancy agreement will guide you about what forms legitimate early ending of the contract, default on the consultant's part and how disputes between you and the consultant may be negotiated and resolved.

MORE INFORMATION HERE consultancy agreements

CREATING YOUR AD AND HOW TO MARKET YOUR BUSINESS FOR SALE

After going to all the trouble of preparing your business, and collecting the necessary information for its sale, it's important not to rush the advertising portion of the process. By posting limited, ineffective ads you may only receive calls from buyers whom you consider unqualified and unprofessional. In short, if you are not thorough in your marketing you might be wasting a lot of time, both for yourself and potential buyers.

A basic idea for most classified ads is to whet the potential buyer's appetite. You want legitimate offers, so avoid big promises and overstated claims. Try to write your ad in layman's terms; industry talk and technical terms may discourage potential buyers.

The More the Better.

Your goal is to whet the appetite, but in this case less information is not more. Common thinking suggests that buyers will be more likely to call if they are teased by your ad. In most cases the effect is the opposite. Buyers will bypass your business if they feel there is too little information.

More information gives buyers a sense of security: they may feel they already know a lot about you and your business just by reading your ad. If you include enough information in the description section the buyer will be pre-qualified when they contact you-this saves both parties a lot of hassle. Buyers feel more trustful of a seller with comprehensive advertising, which helps when it comes time to negotiate a sale

Serious buyers find it helpful if you put some of the following information in the detail section of your ad:

• Length of time in business, business history

• Number of employees

• Information on the geographic area surrounding the business (very important for lifestyle retreats/B&Bs). If you are selling the property with the business, be sure to include the square footage or acreage and the property's value.

• General industry info - how it's growing, changes etc.

• How you would grow the business in the future - give them a "vision"

• Include photographs of the business. Make sure they show a clean and well looked after premises. Photos on the business for sale websites get more buyers. You may think buyers would be more interested in the info behind the photos, but photos are an easy way to transmit the essence of the business to a large amount of eyes.

• True adjusted net income (know precisely how you arrive at this figure)

• Competitive analysis

• Include any business website. Is the business computerised?

• Multiple phone numbers ensure you can be reached at any time

• You may wish to offer to stay on during the transition to the new owners. If so, indicate this.

Including this information will improve the quality of the calls you receive from buyers, and you will spend much less time answering the same old questions.

Get their attention - 'featuring' your ad improves exposure

Find out if your business sale advertising site has the option to 'feature' a business on the front page. This also usual means the ad will automatically appear at the top of listing results or in its own picture bar on each page-serious buyers will see it repeatedly and respond quicker. This option is usually worth purchasing.

FOLLOWING UP ON THE AD

Keep tabs on your advertising results

After posting, check that your ad ran properly in your chosen outlet. Track your results. Find out where each caller or emailer came across your ad. Once you have determined where the better, more qualified buyers are coming from, focus your advertising on that outlet.

If you do post your business online, make sure your anonymity is maintained and that any enquiries are made through a 'contact form' on the site or if you wish by a phone number you want to use.

The first month is critical

First impressions count. A huge number of interested buyers will see your ad when it first comes out. Having sufficient information in your ad, and being able to explain any peculiarities over the phone, will give you a greater chance of meeting with buyers.

Get back to potential buyers immediately

One of the biggest complaints from business buyers about advertisers is that they take too long to respond. Always return calls and emails promptly, within 3-6 hours as a rule. You are in competition with others, trying to sell their own business, and they are calling and emailing others while you wait.

Don't stop marketing/advertising until the check comes

Half of all offers to purchase businesses are never finalised. Keep your advertising running until you have the check from the buyer. Have backup buyers at all times. Never stop taking phone calls/emails from potential buyers: record their names in a folder and follow them up if things go south with the current buyer. Don't let things stagnate while waiting for any one buyer.

OUTLETS

Deciding where and how to advertise

Advertising your business for sale on general online listing sites, in residential housing magazines or on television will not be the most efficient way to market your business.

The best results come from advertising in a medium which specifically targets the largest number of prospective buyers. Good advertising must cater to likely buyer groups. For this reason, advertising your business on a dedicated business sales website, and representing it in a business specific format, is the preferred option when seeking more qualified buyers.Make the entire process easier on yourself and advertise in the right medium.

Selling your business through a site catering specifically to business buyers will maximise your exposure to quality buyers in all areas local, national, and international.Limiting your advertising to one or two mismanaged or misplaced ads only exposes your business to a small portion of the buyer field. Clumsy advertising may also inadvertently alert employees, customers and suppliers that the business is for sale, a fact you may not wish to disclose early on in the sale process.

Advertising in the classified section of local or national newspapers, the trading post or specific business sales magazines is a good backup to internet exposure. Put small ads on local notice boards if you are comfortable with people knowing you are selling a business. With these methods you are getting your business in front of a group of people who may not use the internet on a regular basis.

Discretion

• Selling your business may require you to maintain a level of secrecy. You may not want your competition to attract customers concerned about a transfer of owners, nor have employees leave the business prematurely.

• Fortunately, there are ways to advertise without revealing too much about yourself or your business. Non-identifying classified ads can be placed in newspapers or online, and you can use a cell phone number or create a blind email address, rather than use the business' contact details.

By following this advice you can improve the marketing of your business for sale. Using these techniques will give you a head start to a successful sale.

This sale of business site can offer you a great marketing opportunity AND some bonuses and services you won't find anywhere else. It is a small investment with huge potential.

Common Reasons Why Businesses Don't or Won't Sell

Don't Overprice the Business

A business won't sell if the asking price is to high. Do some research of your area to find out what the market value is for your type of business.

Not Enough Iinformation

A lot of business sellers try to sell without giving enough detailed information to potential buyers. Most buyers won't buy a business that has little information to show that it's a worthwhile investment.

Giving clear and detailed information not only encourages a buyer to buy, but it also gives their accountant and financiers good figures to work with. The best way to evaluate this is to ask yourself "what would I want to know before buying a business"? then supply more than that.

The more details you can supply the greater your chances of a successful sale.

Limited Marketing and Advertsising

Whether you are selling a business yourself or using a business broker, you will have to pay for advertising. There are many ways to get great exposure at very little cost? Using an online Selling Business site is a great way to get your business in front of many potential buyers.

You can't sell something if people can't see it!

Lack of Effort and Preparation

Without being willing to talk to prospective buyers and being prepared with answers to any questions they may ask, you won't succeed in selling your business. Obviously not all buyers will buy your business BUT you should be ready to spend time talking to people who may appear to be wasting your time

Have information ready immediately to avoid losing their interest. But don't give it all up at once, only make certain information available. If negotiations continue and the prospective buyer seems serious then you can give up some more important details.

In the end it comes down to this; without preparation, effort and time on your part then your business will not sell.

Trying To Sell What No One Wants

It may just be the case that your business is in such a niche style that there is no call for it. You may have loved doing it but you might struggle to find someone else with the same enthusiasm. Test the market first just to get an idea. If the local area doesn't work then advertise further afield and try tempting someone who is looking for a complete change.

Bending the Truth

A lot of sellers go to all the effort and expense of trying to sell their business only to have it all fall apart during the due diligence period.

They have bent the truth about their business and now the buyer no longer trusts what the seller says.

Don't try and cover up or hide anything. If there are problems fix them, if you can't or don't want to make sure this is reflected in the asking price

How to make a real estate option contract.

Buying, selling and leasing real estate can be one of the most profitable business decisions you can make. It can also be disastrous if you don't know what you are doing. Many investors use real estate options when they decide to buy or sell a property. Why? Because unlike standard real estate transactions, an option allows a potential buyer to purchase the property almost unilaterally. An option to buy real estate is essentially a delayed purchase, where the purchaser is granted the right to buy the property at a later time. If you are considering using real estate options, this is what you need to know:

• WHAT IS AN OPTION? Unlike standard contracts where the buyer and seller agree to transfer the property on completion, an options contract allows the buyer to purchase the property at a later date. Options are usually time limited, and price specific. This means that you have the option to buy the property within a certain time period at a stated price.

• ARE THERE DIFFERENT KINDS OF OPTIONS? Yes. The most common Real Estate Options Agreement cover two situations: pure option to buy, or lease with an option to buy. Leasing a property with the option to buy it is by far the most commonly met real estate option, and is essentially like renting a flat but being allowed to buy it if you wish. A'pure' option grants the option holder the right to buy the property in a certain time period without having to lease it.

• DO I HAVE TO PUT MONEY DOWN? Usually, but it depends. A Real Estate Option Agreement usually involves the potential buyer offering some consideration (money) in return for the option. Depending on the terms of the agreement, you may be entitled to the option only on certain conditions or a certain amount of payment.

• CAN THE SELLER LET SOMEONE ELSE BUY A PROPERTY IF I HAVE AN OPTION ON IT? Not usually. One of the more powerful terms of a Real Estate Option Agreement includes the right for the option holder to stop any other transaction on the property. For example, if you hold an option to buy a property and the current owner decides to sell to another party, you can often stop the sale or at the least receive damages for the sale.

• CAN I TRANSFER MY OPTION TO SOMEONE ELSE? Sometimes you can. A Real Estate Option Agreement often allows for the option holder to transfer that interest to another party. What this means, is that you can sell your option to someone else just like it was any other property. Of course, the Real Estate Option Agreement must allow for this.

The use of Real Estate Options Agreements can be powerful tools for both investors and sellers. All parties involved need to be sure they have drafted suitable agreements that will satisfy all required statutes and laws. Everyone using Real Estate Options Agreements need to be sure of their positions, and the only way to do that is to make your contracts as precise and easy to read as you can.

For More On Real Estate Options Please Go Here