Looking to Find the Right Business?

Posted on September 14, 2015 by VBB

How About a Laundromat?

There’s a particular business you can own and operate that will consistently turn quarters into thousands of dollars. It’s a stable, profit churning business that only requires your presence on a part-time basis. A business rooted in taking care of one of life’s necessities, which safeguards it from even the worst of economic downturns. This is an industry where there are virtually no sales tactics or persuasion skills needed to get customers. In case you were wondering, the business that is being described is…The Laundromat.

The pro versus con list of owning a Laundromat heavily favors the pro side. This business is said to be safe because the economy does not influence it. The simple fact is people need to clean their clothes regardless of the country’s economic state. Then there’s the age-old adage of ‘location, location, location.’ Well, Laundromats can be successful and profitable in most communities. However, in neighborhoods with high rental occupancies this business is exceptional. Typically, running a successful business can take a big chunk out of your personal time. Laundromats are different. As individuals who own Laundromats can attest, the beauty is the part-time hours. According to Brian Brunckhorst of www.buyalaundromat.com “if run properly, a Laundromat should only require 5 to 15 hours a week of your time. Don’t waste your time getting a second job, instead own a part-time business and a Launderette is truly one that can be run part-time.” More so, Laundromats do not require you to roll up your sleeves and sweat for you to earn your money. This is one of the few businesses where your customers are doing all of the labor and paying you! Your job is solely to provide and maintain competent washers and dryers. Finally, another reason to buy a Laundromat is that it’s an ALL CASH BUSINESS. Customers pay in cash to use your machines. There are no checks; there are no debts, and there is no waiting.

Laundromats are an amazing business and investment vehicle. They don’t require experience or any special training and are simple to operate. It’s an industry that only continues to grow and can provide you with an amazing opportunity to make money.

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Independent Restaurants in the US

Posted on September 3, 2015 by VBB

INDEPENDENT RESTAURANTS in the US

Independent or ‘mom-and-pop’ restaurants are unique local establishments within their community. An independent restaurant is classified as a restaurant with less than three locations. However, the majority of these restaurants have one location that is rooted in a particular neighborhood. According to the National Restaurant Association, seven out of every ten restaurants are one-unit eateries. These small businesses are typically owned and operated by a hands-on individual or family who will make all of the executive decisions in real time. Independent restaurateurs take pride in the quality of their product and seek to provide a one of a kind experience to their patrons.

INDUSTRY OVERVIEW

The restaurant business as a whole is a $683 billion dollar industry. It is an industry that is comprised of the biggest corporate chains all the way down to your favorite neighborhood restaurants. In the United States there are 990,000 total restaurants. The NPD group reported that as of the spring of 2014 there were 351,359 independent restaurants in the United States, which is a boost of 0.4 percent from 2013. The independent restaurateurs who can navigate their business properly occupy a good portion of the revenue share. According to IBIS World, independent full-service restaurants generated roughly $160 billion dollars in revenue in 2014. While CHD Experts noted that quick service independent restaurants accumulated $52 billion in revenue. The math from these two census groups adds up to $212 billion dollars that is represented by independent restaurants nationwide. In the past five years, from 2009-2014, independent restaurants have grown at an annual rate of 2.4 percent.

Obviously, the economy is a major influencer on independent restaurants and the restaurant industry as a whole. The country is inching further and further away from the recession and disposable income is becoming more readily available for the majority of the consuming population due to falling gas prices and continued job growth. As the economy continues to trend upwards, many independent restaurateurs are becoming more optimistic and expecting exponential growth for the upcoming years ahead. The National Restaurant Association reported that, “Given the positive underlying economic fundamentals as well as elevated levels of pent-up demand among consumers, the stage is set for an improving business environment for restaurants in 2015.”

KEY EXTERNAL DRIVERS:

Demand from catering

Catering can be a great asset for independent restaurants. Typical catering events consist of weddings, graduations, business meetings and many different types of parties. It is a great way to increase sales for the business and it’s a phenomenal instrument for advertising your restaurant to the guests in attendance.

Demand from take-out service

The majority of people utilizes take out. The National Restaurant Association reported that, about one third of consumers say that purchasing restaurant take out is an essential part of their lifestyle. It can especially help a restaurant attract customers who are hard pressed for time such as people who work long hours or simply seek the convenience of not having to cook after a long day of work. Take out servicing is another great way to market your restaurant as you can place your brand, phone number, and website on packaging materials.

MARKETS

Although independent restaurants typically generate less in gross revenue than their big chain counterparts, they compete by outnumbering the chains in many major markets nationwide. Independents dominate many heavily populated states in sheer volume of restaurants. According to CHD Experts, the states with the highest percentage of independent restaurants is New York with 82.1 percent, New Jersey with 78.5 percent, Washington D.C. with 77.6 percent, Maine with 76.4 percent, Massachusetts with 75 percent, Pennsylvania with 73.6 percent, California with 70 percent, Florida with 68 percent, Illinois with 64.7 percent, North Carolina with 62.5 percent, Texas with 61.5 percent, and Ohio with 58.5 percent.

The major products and services in this industry are full-service and quick-service restaurants. As would be expected, the chains hold the majority of restaurants in the quick service industry with 57.5 percent to the independent restaurants owning up to 42.5 percent. However, in the full service field it is the independent that reigns supreme with 90.4 percent.

KEY SUCCESS FACTORS

Quality food and beverages

Independent restaurants must provide cuisine that differentiates them from the rest of the pack. They must understand the local market and be flexible in trying new things to appease their market. These restaurants serve fresh meals that are freshly made and not pre-packaged. It is also important for them to stay up to date with emerging trends in the culinary field.

Ambiance

A successful independent restaurant creates a level of intimacy that chains simply cannot manifest. The restaurant’s environment must create a level of comfort for the customer.

Hiring a staff with excellent hospitality skills

At its core, every restaurant is a customer service business. A high level of hospitality is vital to success, especially for independent restaurants because many rely on a local repeat customer base.

They know and manage their costs

Restaurants typically have a low margin for profit. Maureen Farrell of Forbes.com stated, “that a 5 percent profit margin is considered successful.” Restaurateurs must know their numbers at all times. The biggest costs of running an independent restaurant come from food, beverages and their payroll. An owner must know these costs and manage them properly.

Systemization

Systemizing a restaurant is crucial on many levels. First off, it helps establish consistency. It puts in place a set protocol, routines, and checklists for employees to follow without constant supervision from the owner. Secondly, it allows an owner to focus on the bigger picture and run the actual business. Restaurateurs who are too heavily involved in running the day-to-day operational side of the restaurant aren’t able to see the forest for the trees.

Marketing

Many independent restaurateurs do not have a big marketing budget. It’s imperative that they focus their efforts on marketing to their already existing customer base. The successful independent restaurants make it a point to obtain contact information from every person who enters their business and then market to them.

BARRIERS TO ENTRY

There aren’t many barriers for getting into the restaurant industry. Thousands try every year. However, the one barrier that tends to get in the way of succeeding is money, money, and money. The restaurant business is an expensive industry, especially in the initial stages. Many restaurateurs lack the sufficient capital to get through the tough beginning phase and end up closing shop. According to James Sinclair of OnSite Consulting, “outside of an idea and money, the restaurant industry has no barriers of entry, no certification, accreditation, or advanced business knowledge to get in the game.”

TECHNOLOGY & SYSTEMS

Technology in the restaurant industry is constantly evolving and making restaurant operations much more effective. According to restaurantowner.com, “On a practical level, high tech applications have already helped operators improve ordering functions, ticket times, table turns, inventory control, kitchen organization and accuracy, bookkeeping tasks and the capture and the timely reporting of operational information.” Point-of-sale systems provide restaurateurs with software that keeps track of all of their transactions and provides management tools, which helps owners control costs much easier. Although full POS systems can be quite expensive, many independent restaurants are using affordable I-pads and installing POS software in the device.

NATIONAL ASSOCIATIONS

National Restaurant Association

http://www.restaurant.org

RESOURCES

Nation’s Restaurant News

http://nrn.com/segments/independents

Quick Service Restaurant Magazine

http://www.qsrmagazine.com

Restaurant Owner

http://www.restaurantowner.com

Forbes Magazine

http://www.forbes.com

IBIS World

http://www.ibisworld.com

CHD Experts

http://www.chd-expert.com

What Qualities are Needed to Become a Successful Business Broker?

Posted on April 1, 2012 by VBB

Since 2001 Vested Business Brokers has helped people buy and sell profitable, privately owned businesses. In that time Vested has also helped people succeed as business brokers by offering a top-notch broker training and coaching program.

In their position as business broker trainers they are often ask about the qualities it takes to become a successful business broker. In this video, Vested’s owner and CEO, Nathan Goldstein answers that question…

What type of qualities does a person need to have to be a successful business broker?

First, you need to be honest, hard working. You need to have the ability to focus. You literally have to be able to work on your own. Sometimes being a business broker can be lonely. You do prospecting, which I equate to being like a farmer. Sometimes you’re out in the field by yourself prospecting, and you are talking to people and hand out cards and brochures, and you tell people what you do for a living. Then all of a sudden, you get a seller who wants to sell and then you jump into broker gear. This is just what you do and how you do it.

We, at Vested Business Brokers are going to teach you how to do it through our sophisticated broker training platform which you will access from the comforts of your own home – at your own pace.

The best single aspect of being a business broker is the freedom that it gives you, the ability to work on your own schedule, the ability to have as much time that you need off when you need it. You work around your own schedule. It’s a great profession. I know I’ve been doing it for twelve years and I wake up every single morning knowing I work for a start up. I work every single day and I love it. I hope you love it as well. If you have any questions about being a business broker, don’t hesitate to call our career counselors. They’re waiting for you st www.vestedrecruting.com

Business Buying Strategies – Talk to the Business Seller

Posted on March 31, 2012 by VBB

When buying a business people often ask when is the right time to speak with the seller of the business. At Vested Business Brokers we believe that a potential business buyer should ALWAYS take advantage of the opportunity to speak to the owner of any business he is interested in…and to do it as soon in the business buying process as possible.

The process of buying a business is an education process. Not only should you, the potential buyer, learn all you can about the financial and operational details surrounding the business you’re interested in…you should also take every opportunity to learn all you can about the industry that the business you’re looking at is a part of.

Most business sellers will be more than happy to share their experience and insights with you before you buy their business. Let’s face it, they want you to be successful – especially when they are helping you finance the purchase of their business.

Before giving a buyer the chance to speak to the seller, our business brokers at Vested are trained to “qualify” each and every buyer to make sure they are not only ready, willing and able to buy the business in question, we also profile our buyers to make sure the business they are looking at is the “right fit” for what they are looking for.

By doing this we save time and effort for both our seller and our buyer clients.

To speak with a Vested Business Broker call us at (877) 735-5224.

What are the Benefits of Buying an “Absentee Run” Business?

Posted on March 30, 2012 by VBB

When buying a business it is important to understand that some businesses for sale require the owner to be involved in the day to day operations while others can be run on what is called an “absentee” basis. In this video owner and CEO of Vested Business Brokers, Nathan Goldstein, explains the benefits of buying and owning and absentee run business…

Absentee owned businesses are great for a professional who wants to earn additional income by acquiring a business that will produce profit every single day while currently working their regular job, or traveling, etc.

Almost any business can be run absentee, however, you will find that most often absentee businesses for sale will be businesses like:

car washes,
laundromats,
etc…

At Vested we happen to have an internet company that is a database management businesses. The person who owns it nets approximately $800,000 a year and it runs completely absentee. In fact, his only real activity connected to this business is transferring the money he earns through it from one account to another.

Now most absentee run businesses for sale are not as easy as that. In truth, with most of these types of business you wouldn’t physically have to be there, but you would be responsible for certain things that would require “work”. For example, some people who own absentee based businesses will do the following:

the accounting,
the bookkeeping,
the ordering for the business,
managing the schedule for the business,
etc…

Other than those types of responsibilities, they are able to have the rest of their business run “absentee”.

If you want to learn more about absentee run businesses, don’t hesitate to call your Vested Broker. They’re there to help you. you can reach us at (877) 735-5224.