Performance Business Brokers presents: Riverhills Lodge and Outfitting

Are you looking to buy a business that offers multiple revenue streams and also doubles as your home. This log lodge with its accommodation and bird guide business may be just what you are looking for.

Riverhills Lodge & Outfitting is located just outside the Village of Empress, http://www.villageofempress.com/ which lies in the south-east corner of the Province of Alberta. Due east of Calgary on the Alberta/Saskatchewan border. The lodge is situated on 24 acres of traditional prairie grass overlooking the South Saskatchewan River and its surrounding hills.

The log lodge has all the modern amenities to accommodate a very comfortable stay. Home-style meals are prepared daily for all guests.

The log lodge is an impressive 4200 square feet with an open design. The lower walkout level has five bedrooms sleeping two people in each, with a large bathroom that includes individual washroom and 3 shower stalls. In the middle of the lower level is a common area with a pool table and dartboard for everyone’s enjoyment and pleasure.

The lodge offers two revenue streams, guided upland game bird hunts between September 1 – October 31 each year and general lodging for work crews, corporate retreats for up to 16 people throughout the balance of the year.

For those wishing to fly direct or charter a flight into Empress, the Town boasts a 3000ft. paved, lighted runway with a reference elevation of 2211 ft.

Riverhills Outfitting offers fully guided hunts for Hungarian Partridge (Gray Partridge) and Sharp-Tailed Grouse and Pheasants for a fee of $1635 per person for 3 days. Birds are found in virtually all directions from the lodge. Huns and Sharp-Tails have similar food sources, therefore it is not uncommon to flush either specie in the same location. Most of the hunting is done in a walk up style using flushing and or pointing dogs.

Guided big game hunts can also be added to the revenue streams of the lodge with the purchase of Big Game tags.

With the Keystone XL pipeline going right past the lodge the purchase price can be made back on lodging crews for that one project.

You can view their Web Site at: http://www.riverhillsoutfitting.com/ or http://www.riverhillslodge.ca/

 For full information, please give us a call today at 780.756.2990 or email us at info@performancebb.ca !

Who Are Your Organization’s Entrepreneurs?

by Bill J. Bonnstetter and Ron J. Bonnstetter

How useful would it be to identify the problem-solvers within your business? They’re called entrepreneurs, and not all of them are created the same. The ability to identify entrepreneurs empowers organizations to effectively manage their workforce. Through research, we’re beginning to learn more about spotting star performers who would otherwise become disengaged and flee — taking their new ideas with them.

Identifying these individuals is possible long before they enter the workplace. In fact, 42 percent of entrepreneurs have determined they want to own their own business before the age of 12, according to an ongoing study run by our company, Target Training International, of engineering students from 18 major U.S. universities.

Early findings from this research describe two types of entrepreneurs emerging:

Entrepreneurial-Minded People (EMPs): They tend to work well in teams, have an organized workplace and enjoy consistency. These individuals are happier within organizations or within a group of people working together to achieve a goal.

Serial Entrepreneurs (SEs): The second group is made up of potential serial entrepreneurs who have a desire to own their own business. Serial entrepreneurs tend to be more individualistic, have a greater sense of urgency and a desire to control. They have demonstrated an ability to sustain a business past the first year, into the higher growth job production years of a young firm.

Both entrepreneurial types are identified by a distinct challenge-orientation and improvement-focused mindset. But they differ in their attitudes towards control. EMPs are less concerned with the amount of control they can exert. They are happiest when they work collaboratively on a task, in a team, striving for solutions to complex or recurring problems.

The SE wishes to have ultimate control over her life and business. While happy to set direction for a company or team, serial entrepreneurs need to feel that their employer is not limiting their destiny.

Once you identify certain performers as SEs or EMPs, it’s your job as a manager to retain them.

Make sure they have a forum where their ideas can be heard. When an SE shares his vision and is met with rejection, he will become disengaged and will likely resent the organization. He is also likely to not only plot his exit, but how to redress the rejection he experienced. That can translate into taking their ideas to a competitor or becoming a competitor himself. Similarly if an EMP is not allowed to engage in the problem-solving process or is asked to work independently, the same is likely to occur.

But how do managers identify entrepreneurial types? It’s often helpful to put these questions to use, especially during the hiring process or a performance review.

1. Describe your career goals. The EMP’s answer would more likely indicate he could care less about being in management and is happy where he is or where he is applying for. The SE will tend to say she is looking for advancement.
2. Describe your professional strengths. An EMP will focus on strengths directly related to the job in question. An SE will talk more about leadership and personal identity.
3. Describe things you’re not good at. Honesty is important for both. Listen closely: If she claims to not have any weaknesses, she is likely more SE-driven. The more weaknesses he confesses to having, the more EM-driven he is.
4. What activities do you do to keep current in your profession? The EMP is interested in keeping up within his profession and industry. The SE is more focused on keeping up on broader scope, going beyond just her career and may discuss things she is reading, experiencing or sharing.

Entrepreneurs — whether EMPs or serial — already possess the behaviors, attitudes, and values to build successful businesses. Finding out whom within the workforce possesses the traits of an entrepreneur — and which type they are — will allow business leaders to work with their unique approach to business. Recruiting and retaining entrepreneurs will pay big dividends not just for individual companies, but also for the economy as a whole.

Brought to you by,

Dwight Lester, Performance Business Brokers, Edmonton Alberta

The Success Small Business Franchisee – A Solid Plan for Start Up.  By Nigel Mayne

In the last 30 years, the franchise has grown into one of the most recognized and reputable business models on a worldwide basis. According to the International Franchise Association, there are over 767,000 franchises in the U.S. alone, providing nearly 10 million jobs and contributing $624.6 billion in business annually. In the UK, the franchise industry is growing at twice the rate of the entire economy according to a NatWest/British Franchise Association study released in 2009.

While business ownership has traditionally been just a dream for many, franchising has opened the door for ordinary people to build their own small business and reap the rewards. But how does that ordinary individual cope with the challenges of a business start up? Shopping for the right franchise is in itself a steep learning curve for many new franchisees. One way to facilitate the process is by searching out the guidance of experts on the process of qualifying as a potential franchisee and in taking the first steps as a new business owner.

Here are some suggestions on actions you should have underway when signing up for your new franchise:

Turn your business plan–the same plan you used to obtain the financing that qualified you as a franchise buyer–into a detailed blueprint for your first two to three years in business. Ask the franchisor for any checklists they have for new franchisees, along with their estimated timeframes. Year one should have high-level detail plotted out with Years two and three being more big picture.

Milestones to mark out include:

• Final negotiation of the contracts for the desired location, equipment and fittings. If this is your first lease negotiation, spend quality time understanding all your rights, obligations and additional start up costs, and review them with your legal advisor.
• Overlay all your task related activities with the timetable of the training requirements of the franchisor. This will help you set the first major milestone of opening day. Working backwards from this major event, you will be able to determine the desired lease date and the date by which you should have your key staff on board.

By now you will have easily identified a number of the steps that need to be taken concurrently.

• Turn to your franchisor for any assistance in marketing and promotional activities to make your opening day a grand success and keep your new customers coming back for more. This key event is worthy of a detailed plan of its own.
• Now, budget for each milestone in rough terms, so that you have the bones of cash flow control that you can flesh out as you learn more during the franchisor training sessions.
• Allow a slippage factor in all milestone dates and budgets.
• Your detailed business plan should be updated or adjusted two or three times a year or immediately should circumstances change.

If at any stage you feel a little overwhelmed by processes that are new to you or perhaps not your greatest strengths, remember that just as you don`t skimp on the prime location nor should you skimp on having the right people in the right places in your new business venture. Recognize your business weaknesses and compensate for them in the quality of your business relationships and key staff. Whether it is the actual hiring of staff, setting up your back-room operations or dealing with the detail of cash flow management, you must meet these challenges with the same energy, leadership and enthusiasm you have for the franchise itself.

The risks of failure in the small business franchise are the same as those in any new and legitimate business model and range from issues relating to the personality and strengths and weaknesses of the business owner to intellectual property matters, general contract disputes and failure to attend adequately to fiscal responsibilities, as well as misrepresentation and commercial fraud by third parties.

A solid plan for start-up and year one goes a long way to laying out the areas where the new franchisee needs to call on expert guidance.

Brought to by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

What Type of Buyer is Right for your Company?

Part 3 of 3

Individual Investors
Individual investors are high net worth individuals seeking to own and manage their own company. Individual buyers expect to be integrally involved in the leadership and management of the company after their purchase. This buyer segment is usually more focused upon the geographic location of the target than its industry, as the buyer is typically not seeking to relocate.

Most individual investors are seasoned businesspeople, with experience in either corporate positions or other entrepreneurial ventures and ordinarily prefer established businesses with proven performance to newly started companies. Due to capital constraints, individual investors usually purchase businesses at the smaller end of the middle market spectrum.

The advantages of working with an individual investor include:

• They’ll have direct involvement, and therefore a stake in the success of the business
• They generally only require active shareholders to remain for a short transition period
• They’re usually not seeking  to relocate the business or drastically change operations and culture

Possible disadvantages include:

• They’re typically  inexperienced in purchasing businesses, which may prolong negotiations
• Their financing and deal structure options are normally not as broad as with other buyer segments
• They’re not as likely to pay a premium price for the business
• They may not have direct industry expertise

Keep in mind that the payment portion of a buyer’s offer should not be your only focus in a transaction. Your understanding of the buyer’s ultimate plans for the business, their expected level of involvement and network of resources, are all important considerations. Knowledge of a buyer’s expectations for the business can be highly beneficial for both negotiations and the closing of a successful deal.

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

What Type of Buyer is Right for Your Company?

Part 2 of 3

An additional consideration for strategic buyers is the clarity of historical corporate records. Large business buyers are particularly sensitive to possible liabilities (licensing issues, outstanding contracts, taxes, etc.) that they may become liable for upon purchase. Therefore, as is the case with virtually all transactions, it’s recommended that any outstanding issues be clarified prior to discussions with a strategic buyer.

The advantages of dealing with a strategic buyer include:

• Their expertise in closing  transactions often expedites the closing
• They generally have a wider range of deal structure and financing options than other buyer segments
• They usually have sufficient resources (both financial and otherwise) to support company expansion and growth

Possible disadvantages include:

• Absorption of the seller’s  operations into the buyer’s operations may be required
• Contingent payments, that depend upon the tracking of financial performance, may be harder to monitor because of the difficulty of keeping separate records
• Some employee positions may be eliminated due to consolidation of operations or elimination of back office functions
• There is often a resultant  change in corporate culture

Private Investment Groups (also known as Private Equity Groups)
Private Investment Groups represent a formal fund (or a number of related funds) created by a group of investors for investment in, and purchase of, closely held businesses.

The strategy and focus of these groups varies widely. Some groups focus on a certain industry segment, while others are more concerned with the geographic location of the target. Certain investment groups may achieve the same synergies with an acquisition as corporate buyers, particularly if the group is building a portfolio of businesses within a specific industry. In any case, the Private Investment Group’s primary focus is to achieve the highest possible financial return for its investors.

Since investment groups generally prefer to let their portfolio companies continue to operate on their own, the preference is for the existing management team to remain after the sale. Additionally, these groups usually have a planned exit strategy and expect to hold a portfolio business for a pre-determined period of time – usually between five and seven years.

The advantages of working with an investment group include:

• With professional buyers the  closing of the transaction is often expedited
• They often provide access to   resources the seller may not have (managerial talent, financing, etc.)
• Their equity capital has  usually already been raised
• The acquired company  generally experiences little culture change

Possible disadvantages include:

• The requirement for  management to stay may conflict with the shareholders’ exit plans
• The transaction may not  offer synergies with other portfolio businesses
• As cash flow-oriented buyers, these groups usually pay a fair but not premium price for the      businesses they acquire
• The company may face being  sold again within five to seven years

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

What Type of Buyer is Right for Your Company?

Part 1 of 3

Different types of buyers have different objectives and levels of experience. Knowing these differences can help you in getting the deal you want.

As you begin your discussions with potential buyers, it’s important to keep in mind that their goals and objectives can vary greatly. In general, buyers can be classified into three major categories: strategic companies (both public and private), Private Investment Groups, and individual investors.

Each business buyer type presents a unique set of advantages and disadvantages that can have great impact on the ultimate outcome of the sale. Understanding these differences can help you, both in your negotiations and in finding the best buyer to meet your business and personal goals.

Strategic Companies
Acquisitions by strategic buyers are generally driven by potential synergies between the acquirer and the target entity. For example, you may have a product or service that the buyer lacks, but is highly complementary to their product or service offering. Or, you may have an established presence in a certain geographic or customer market that the acquirer has had difficulty penetrating.

This focus on synergistic value may result in higher offers from this buyer group than from others, since the operational efficiencies that are created can provide immediate higher profitability and a more rapid return on investment for the buyer.

Public and private strategic buyers differ in that the liquid market for public company shares may create a more aggressive valuation for public firms over those that are private. This may allow the publicly traded company to pay a premium price for your business, especially if you’re willing to accept a stock-for-stock transaction.

The company structure after the sale may also differ with a sale to a strategic buyer. For instance, unless management is viewed as absolutely critical to maintaining company performance, these buyers generally don’t require that the active, selling shareholders remain with the company much past a short transition period (generally six months to a year). Also, depending upon the size of the target and the logistics involved, the buyer will oftentimes completely absorb the target company into its current operations, making the ability to relocate the target company an important consideration……. Part 2 on Tuesday

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

Performance Business Brokers presents –

This well established Edmonton, Alberta based integrated online/offline Real Estate Magazine Franchise is part of a well established 35+ year old North American brand that was voted the #3 Advertising Franchise across North America in 2008. As that ranking was #3 in all categories, arguably it would have ranked #1 in the “Real Estate” category.

This Edmonton franchise has been operating for 10 years and is consistently one of the strongest performing franchises in the system in Canada! There is plenty of additional growth for an ambitious Owner / Operator to capitalize on.

Providing the Real Estate Community with unique advertising opportunities, this turn-key business is a golden opportunity for a sales oriented Owner / Operator that would be interested in following a proven system and grow it to its maximum potential. The business is systematized to the point it runs like a well oiled machine.

This Franchise has little competition across North America. In Edmonton, it is the strongest advertising value proposition that Edmonton real estate companies have to reach potential real estate buyers, across the world. The marketing system provides a robust, integrated marketing program to Realtors and the Real Estate Community throughout the Greater Edmonton Area.

 The magazine publishes 13-times per year (every 4 weeks a new Issue hits the market) and is widely distributed across the market area. Online, this Franchise automatically syndicates client’s listings to massive web partners across the world.

Now in its tenth year, with the market recovering, the increased cash flow opportunity in the near future of this business is a massive. The financial opportunity is ideal for someone with vision to take on this very profitable opportunity now, and take it to the next level.

Absolutely no industry experience is necessary to acquire and grow this opportunity, although good business knowledge and customer service skills are a definite asset for ongoing client retention and growth.

 The current owner will provide full operational training and the Edmonton based Canadian Franchisor will provide ongoing support. This a home based opportunity that can be operated from most anywhere in the Greater Edmonton Area.

The purchase price includes the Franchise Transfer Fee and the current owner will even carry back up to $100,000 for a qualified buyer!

 Contact us today for full information on this unique opportunity. info@performancebb.ca

Brought to you by:

Dwight Lester, Performance Business Broker, Edmonton Alberta

Performance Business Brokers has had the pleasure of engaging many business owners and buyers regarding buying and selling businesses. Sure there are industry multiples, rules of thumb and valuations for determining a price. But what are the things that a buyer really evaluates when scanning the business horizon for their next investment? I have narrowed it down to three fundamental things regardless of price.

The three key factors a savvy buyer evaluates are:

1. Is the business profitable?   2. Will the business run well without the current owner?   3. Are the financial records adequate?

Many business owners get a little nervous showing their financial statements. One of the best kept tax secrets is owning a business. A well run business with a good book keeper or tax accountant will show great cash flow and modest profit. Buyers not only understand that fact, they are attracted to it. There is nothing wrong with showing a net operating loss as long as the business has strong cash flow. Business owners do not get extra credit for overpaying their taxes. High debt combined with a net operating loss will chase buyers away.

Business buyers are attracted to businesses that are immune to the owner’s skills. Clearly there must be basic business management in place. What I’m referring to here is the critical elements of success must be able to thrive under new ownership. For example, if the owner is successful due to their active involvement in a key process, buyers will often pass even if they have the same skill set. Think of it this way. It is the difference between an artist and a painter. Painters are more about process and can be duplicated. Artists are the brand and take a piece of the business with them when they leave. One exception here is when a Private Equity entity assumes ownership and the “artist” remains in place.

In today’s environment with nifty software applications, financial records are typically not an issue. A simple profit and loss statement combined with tax returns are sufficient in most situations. If the business offers employee benefits, make sure you check the contract language to determine if “change of control” creates any lump sum payouts. Buyers want cash flow and leverage. Paying off key employees can be a deal breaker.

Before you begin the journey of determining the price tag for your business, make sure you have these three critical components in place. Do not underestimate the time it takes to market and sell a business. You should begin serious preparation 1-2 years in advance. Buyers always come to the table with a healthy dose of caution, but the deals that are consummated are inked with mutual respect between buyer and seller.

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton, Alberta

Making an Offer to Purchase a business for sale.

Buying a business through a business broker is a very exciting experience. Once you decide you want to make an offer to buy a business, you need to understand the process involved.

After you make an offer through your business broker, the next step is becoming familiar with the Offer to Purchase contract for the sale of a business and completion of same.

As in all contract negotiation, certain clauses and amendments can be added or altered to the Offer to Purchase contract (it’s all about negotiation with the other party!). Your business broker in conjunction with you and your lawyer should be able to advise you on this.

Performance Business Brokers always recommends the buyer and the seller to obtain independent legal advice on the Offer to Purchase contract for a sale of a business.

We continue to handle the negotiations between buyer and seller and their advisors. We manage the due diligence process that ensures the buyers know that what they believe they are buying is what they really are buying. We ensure the business purchaser knows that the seller still has alternatives, because perceived choice impacts on the speed and price of the business sale. We therefore work hard to get you the best deal possible. Contact Performance Business Brokers to assist you in selling your business.

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

Selling Businesses is our ONLY Business

How to Increase Customer Loyalty at Your Small Business in Edmonton Alberta

So, you’ve already accomplished one of the hardest parts of running a business: drawing in new customers. Now, an equally difficult task awaits: keeping your current customers loyal to you. In this economy, customers are more particular than ever about the companies with whom they choose to do business, so it’s extremely important to ensure that you are doing everything you can to retain the customer base you already have. Here are several pointers you can abide by to make customer retention one of the main priorities of your small business:

Monitor the behaviour of your customer service staff.

Whether your staff interacts with its customers in person or over the phone, making sure that their behaviour is at least professional is mandatory. With the unemployment rate as high as it is, you need to find a nice way to remind your employees that they can’t take their employment for granted. It is more important than ever for employees to remain on their best behaviour, because it makes all the difference in customer loyalty

Make it easy for customers to communicate with you.

One common mistake identified by Performance Business Brokers made by many larger businesses is by making their customers jump through hoops to communicate with them. It is not a smart move to install a phone service that requires customers to punch in dozens of keys on their telephones before they can get an answer to their question. Furthermore, putting customers on hold for too long is a serious mistake that could very well cost you customers and jeopardize your business’ reputation. Make it a priority to be able to clearly communicate with each and every one of your customers. This involves having good customer service over the phone, quick responses to email inquiries, and even offering a live chat option on your company website.

Be responsive on social media.

A smart tactic you can implement at your small business is by providing quick responses to any and all social media interactions with your customers. If one of your customers writes on your company’s Facebook wall, sends you a Tweet, or bookmarks your site somewhere online, you need to be gracious and responsive! If your customers are using social media to let you know of any problems or issues they had at your small business, it is especially important to let them (and the public) know that you are taking their concerns to heart and doing something about it. Using social media sites to actually be “social” will certainly set you apart from your competitors

Brought to you by:

Dwight Lester, Performance Business Brokers

Selling Businesses is our ONLY Business