Do I Need To Pay GST When I Sell My Cafe?

Do I Need To Pay GST When I Sell My Cafe?

 

 

 

Do I need to pay GST when I sell my Cafe?

 

The question about whether or not GST is payable on the sale of a cafe is something that seems to confuse many people and, it is certainly something that you should look into before you sell.

 

The short answer to this question is no (providing that you meet certain criteria outlined by the ATO).

 

The term used commonly in this ruling is “supply of a going concern” simply put this means that the business is still trading.

 

The ATO make it quite clear that if the business is being sold as a going concern then there will be no GST payable on the transaction.

 

What determines if a business is being sold as a going concern?

 

In order for the business sale to be deemed as a going concern then you must make sure that:

 

  • The business continues to operate up until and including the date of supply (settlement)
  • All of the equipment required to continue the operation is supplied as part of the sale.

 

Most cafe sales will fall into this category. An example of an exception might be a sale of fixtures and fittings in a shop which is no longer trading.

 

If you are selling your cafe as an operational business then the sale will most likely be considered “a going concern”.

 

What else needs to be considered to ensure you don’t have to pay GST on your sale?

 

In addition to making sure you are selling as a going concern you will need to make sure that both you and the person buying the business have agreed that the the business is being sold as a going concern.

 

This is generally taken care of in the contract of sale, this is quite a standard clause in most contacts and looks something like this:

 

By you both signing this contract you will have effectively agreed that the sale is as “a going concern”

 

The buyer must also be registered for GST

 

Whoever is buying your business must also be registered for GST in order for the transaction to be GST exempt.

 

If you can meet all of the criteria above then your sale will likely not include GST.

 

Where can I get more info?

 

You can read more about the ATO guidelines here

https://www.ato.gov.au/General/ATO-advice-and-guidance/In-detail/Private-rulings/Supporting-documents/GST/Sale-of-a-business-as-a-going-concern/

 

Details about the tax ruling can be found here

 

http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20025/NAT/ATO/00001

 

Speak to your accountant and double check your personal situation and if you are still not sure then the ATO are very helpful in explaining this.

Contact the ATO directly on 13 28 61

 

I hope this helps make the understanding of GST on cafe sales a bit clearer, if you need any help or advice feel free to get in touch at any time.

How to Increase the Value of a Café

How to Increase the Value of a Café

How to Increase the Value of a Café

 

In some ways selling a café is very different to selling other businesses but there are several ways in which you can add value to a café that are pretty much the same with most businesses.

 

So how can you increase the value of your café?

 

 

Reduce the Risk

One of the factors that will reduce the value of your café and also increase the time on the market is when buyers sense that there is some risk associated with the purchase.

 

Examples of this might be a short lease, a lease with a demolition clause, declining net profit and even a poorly maintained shop.

 

It’s a really good idea to start planning the sale of your business as early as possible, ideally your business should always be ready for sale but I appreciate that this is not always practical.

 

Negotiating a new lease or arranging an assignment can be a lengthy process so, before you commit to the sale process it is a good idea to meet with your solicitor to discuss any potential issues with either option.

 

With an incoming tenant most landlords and managing agents are going to want some proof that the person looking to purchase your business is going to make a good tenant. Make sure you understand exactly what your landlord will require to assess the purchaser and then make sure that the buyer is aware of this early on.

 

Another thing that worries some people is when they think that the business is too reliant on certain employees (barista, chef etc.) or even yourself. Anything you can do to reassure purchasers that you have a café which does not rely on one or more individuals is going to reduce risk and increase the  price.

 

This could be achieved by having a documented system in place for things like recruitment, training and operations. What you really want to aim for is to show that anyone could buy the business and follow your systems to keep it running the way it is currently.

 

 

 

Improve the Bottom Line

 

It seems basic to mention this but I often see businesses that have the opportunity to increase profit without making too many changes.

It’s tough when you get into the mindset of selling to stay focused on profit but a few small changes can often have an impact on the bottom line that can help to increase the value and saleability of the café.

 

Start with your biggest impact areas:

 

  • Wage costs – How is you wage cost percentage? Are there ways that you can tighten the rosters and save a few dollars here and there?

Can you cut back on a few casual hours?

 

  • Food costs – How is you Gross Profit percentage?

 

Along with wage costs supplier expenses are another major weekly outgoing for cafes and often an area to make quick improvements.

 

How does your gross margin compare to the industry average?

 

Are you confident that you have the best deal possible from your suppliers or can you negotiate some more discount?

 

Are you monitoring the food waste and stock control?

 

Are you confident that the margins are right for all of your dishes? When was the last time you checked?

 

 

Why Bother?

 

If your café is taking $10,000 per week and the food costs are 38% a reduction of just 2% could result in an extra $10,400 in annual profit which will in turn increase the value business, lower the risk and make you a few extra $$ whilst the business is on the market.

 

 

Drive the Top Line

 

One of the key metrics that buyers look at are the weekly sales of the café, it therefore makes sense to make sure you are doing all you can to maximise these, right? You would be surprised how many businesses I see that have stopped driving sales because they are on the market or the owner is thinking of selling.

 

Many buyers will see the lack of marketing such as social media posts, new menus and promotions as a sign that the owner has given up or is too busy with other commitments.

 

When I was buying cafes I was always pleased to see a neglected Facebook page or Instagram account as this signalled that I was more likely to get a deal.

 

Try and keep running the business like you just started it, keep the social media up to date and keep working on ways to bring in more business.

 

Focus on the only three ways to grow the business:

 

  1. Get more customers (advertising, social media etc)
  2. Sell more to your customers (would you like fries with that?)
  3. Sell more often to your customers (loyalty programs etc)

 

 

If you combine the impact of improving the margins mentioned above (wages and food cost) with an improved top line the impact can be very beneficial.

The value of the café is ultimately going to be determined by the net profit so the more you can do to improve the bottom line the higher the potential value will be.

 

I hope that this has helped you learn a little more about How to Increase the Value of a Café, you might also find this 20 point checklist useful.

 

If you have any questions about how to maximise the value of your café feel free to email me [email protected]

 

 

 

 

 

 

 

How to Sell a Cafe - Changes to Lending Criteria

How to Sell a Cafe – Changes to Lending Criteria

I wanted to make you aware of some changes that we’ve noticed recently with the lending criteria and the way that banks are looking at small business finance in particular with business loans for cafes and food businesses.

These changes could affect the sale of your cafe in the later stages which is naturally something that we want to try and avoid.

With this in mind, we’re going to change the way that we’re working and the way that we are preparing our clients’ businesses for sale and I wanted to give you the heads up quickly so that you’ve got the opportunity to do the same.

We have become aware of this change through a client of ours who’s got a really good buyer lined up. This person has industry experience, they have got cash in the bank, they’ve got good equity in their property and they have made a solid offer.

On paper these guys are ticking all of the boxes, they are the kind of buyer that you wish there was more of.

The deal has gone really smoothly. up until the point that the bank have looked in more detail about the lease.

The lease is a five by five, there are four years gone, so there’s one plus five left which in terms of return on investment and for the level of the deal itself is quite reasonable.

The buyers had previously spoken with their finance broker about the lease term and he saw no problem with it at all.
When the broker submitted the paperwork to the bank however there now seems to be a shift in the way that they are now looking at the remaining term before the option.

Because there is only a relatively short period of time left on the lease before the time that option is due to be exercised the bank has now refused to lend on that business.

 

It now appears that the time frame that you need to focus on is not the just the overall term but also the period of time remaining before the option kicks in.
If you’ve got a business that you’re looking to sell and, that someone is going to need finance for, you should be aware of this and prepare accordingly.

 

By preparing thoroughly you can overcome the problem before it arises which is really what good exit planning is all about.
Hopefully that’s given you a little bit of an insight into an extra something that’s worth taking into account as you start preparing your cafe for sale and maybe that will be one thing that helps you to get your deal across the line a little quicker.

I wish you all the best with the sale of you business and please feel free to let us know if you have any questions at all.

If you have not already found our Exit Planning For Café Owners Facebook Group why not join us here

https://bit.ly/2CtobUa

 

If you would like to learn more about preparing your cafe for sale then why not book in a call with us. On this 45 min call we will cover the following with you:

• What the current market value of your cafe might be.
• The steps you need to take to prepare for the sale.
• What the market is like at the moment.
• How to make sure that your cafe stands the best possible chance of selling.

 

There is no charge for this call and there is no obligation. At the end of the call if we think that we can help you we will let you know about how we work and, if we don’t think we can help we will give you some advice about alternative options.

 

Either way you will come off of the call with a much clearer idea about the potential value of your business and of what you need to do next to achieve a sale.

 

Click on the link below to book in a time that suits you best, once you have selected a time you will be taken to a form which has around 10 questions about your business that will help us to get a better understanding and save time on the call.

 

Book your call here
https://www.gsebusinessconsultants.com.au/apply

How to Prepare a Cafe for Sale

How to Prepare a Cafe for Sale

How to Prepare a Café for Sale.

 

Running a cafe cannot really be compared to running many other businesses. From the outside it can look like a dream lifestyle business but for many people that’s not the reality. The first cafe that I setup and run for 11 years certainly didn’t improve my lifestyle in the early stages!

 

There are many things to think about when selling a cafe and this article takes a quick look at how to prepare your cafe for sale.

 

With all the blood sweat and tears that you’ve put into running your cafe during the time that you’ve owned it it’s really important that you sell for the right price and get a fair reward for all of your hard work.

 

During the time I have spent building up and selling cafes I learnt a lot of valuable lessons. I soon realised that whilst you can make a good living running a cafe the real money is made by increasing their value and selling them on.

 

It’s no secret that a business which is well prepared for sale generally sells quicker and for more money. Organisations such as the Exit Planning Institute suggest that a business with a well planned exit can be worth as much as 50-100% more than an unprepared business.

 

In my experience I have found that this exit planning process works just as well with cafes and I have developed a system that is designed specifically for food businesses.

However you decide to proceed with the sale of your business, if you do nothing else then look into how you can best prepare your cafe for sale. Even if you went through the process and increased the value by 20% imagine the difference that money could make to you.

 

 

Planning

When thinking about selling your cafe the first phase is a planning phase. During this part of the process, you will consider many different things to really make sure that now is the best time for you to sell.

 

Some of the key things for you to consider during the planning phase are:

 

Tax implications – If you have a good accountant then it’s a good idea to sit down with them and let them know of your intention to sell. Make sure that you cover your personal and business tax situation. Make sure that you’re fully aware of any capital gains tax or personal tax liabilities that may arise from selling the business.

If you don’t have a good accountant this is a great time to find one! Getting the right advice at this point can save you a lot of money further down the track.

 

Timing – Is now the best time to be selling the business?

If you are anything like me you could well have two answers in your head right now. The emotional side of you which feels the pain of the long hours, staff issues customer dramas and so on may well be saying SELL but the business side of you maybe well saying hold on.

Only you are going to know the answer to this question but, try to make the decision more with the business side of you than the emotional side. If you feel that there is an opportunity to improve the situation that you’re currently in (and therefore the performance of the business) then you should seriously consider taking action to achieve this.

If you don’t have to think about this too much then you know the time is right and you also know that you’re not going to look back in a couple years’ time and regret the decision you’ve made now.

 

Legal matters – The early stages of this process a good time to sit down with your lawyer and make them aware of your plans to sell. It’s good idea to check the current lease to make sure there is a good term remaining or at least an option to renew. As these matters generally take quite a while it’s good to get this underway early on.

 

Valuation – Do you know what the business is worth in the current market?

It’s good idea to take advice at this stage from professional broker, agent or valuer about what the business may be worth. There are many factors that go into valuing a cafe and although there may be similar business is listed for sale at a certain price range this doesn’t mean that’s what they are actually selling for. Brokers and valuers will have access to industry information including recent like for like sales, this will give you a much more accurate idea of what the business may actually sell for.

 

If you go through this part of the process and find the business is not work maybe as much as you expected then don’t despair you have plenty of options to improve this. Increasing the value of cafes is a big part of what we do so feel free to contact us or use some of the free resources on our website.

 

Once you are confident that the timing is right for you to sell then you can move on to the preparation phase.

 

 

Preparation

 

The preparation phase is definitely the part of the process which requires the most work, on the plus side it’s also the part that can add the most value to the business and really help you to sell quicker.

 

 

During our six weeks to sale program we work with our clients through a step-by-step process to get everything that a buyer will need prepared. Having all of this documentation prepared makes the whole process much smoother and less stressful for you the person selling and it also helps to reduce risk in the buyer’s mind. In my experience, reducing risk has had the biggest effect on achieving higher multiples when selling food businesses.

 

 

How to sell your cafe

 

Imagine a buyer looking at your cafe at the same time as another cafe that makes about the same profit, the same turnover and is in a similar location. If you’re able to present all the information that the buyer needs (as well as things they may not ask for) you are sending a clear message that the business is well organised, structured and systemised. This will help to build the buyer’s confidence that the business will continue to perform well even after you’ve gone and therefore reduce risk in their mind.

 

If you’re having two scrabble around and put information together after somebody has shown interest it’s going to tell them that the business is a bit unorganised.

 

Once a buyer senses risk of any sort one of two things usually happens, firstly they may begin to question things more which can cause the whole process to slow down or even fall through. Secondly the buyer will start to see an opportunity to negotiate on the price, it’s our job to make sure that neither of these things happen.

 

As mentioned previously the preparation phase involves a lot of different pieces of information being drawn together, I won’t go through them all in this article but some of the important ones are as follows.

 

Documentation – As mentioned previously, having all your documentation at hand is going to reassure any buyer that the business is well organised. Ideally you want to keep all your documents relating to the sale in one place where it’s easy to share, this could be something like Google docs Microsoft OneDrive or Dropbox.

Some of the key documents that we provide our clients with templates for include, inventory, stock take, operations manuals and policies manuals etc. Other documents that can be stored on the same drive are things like a copy of the lease, supplier agreements and sample invoices etc.

 

Staff information – Again, this information can be stored on the shared Drive and the templates that we set up include things like staff contracts, job descriptions and rosters. I’ve always also included a short bio about each staff member as well which helps the buyer get a better idea of the team and may help to reduce risk. A lot of buyers will worry about staff leaving and anything you can do to help prevent that worry will be a benefit.

 

Financials – If you talked to your accountant during the planning stage then hopefully they will have given you the heads up about what needs to be done to get the books in order for the sale.

If there is one area where the sale is going to slow down, stall or fall through then it is if the buyer’s accountant or advisor find something in the figures that they don’t like. The more work you can do in the front end to make sure the books are all straight and that the figures add up in relation to the valuation the better.

It’s good idea to have up-to-date profit and loss statements, balance sheet and tax returns (you may be asked for up to 3 years) and I would suggest putting all of this information on the shared drive in a folder called “financials “.

 

Business as usual – This part covers a lot of different areas but is basically making sure that from the outside there is no sign of weakness and the business looks to be running as it always has.

When I’ve looked at buying businesses if I noticed things like negative reviews, lack of activity on social media, outdated website etc I generally saw that as a sign that I could negotiate a lower price. To a buyer these signals suggest that you might be a bit over it or have lost interest and may therefore be willing to accept a lower price.

 

As hard as it is at times, try and keep the momentum up during the sale process and the preparation phase and run the business as if it’s not for sale.

This is by no means all that you need to do during the preparation phase but should give you a good starting point.

Once you feel that you are fully prepared it’s time to move on to the Decide Phase.

 

 

The Deciding Phase

The deciding phase – In the final phase you have a couple of big decisions to make.

 

The first of these decisions is whether or not you still wish to go ahead with the sale of the business.

This might seem like an odd thing to say at this stage but I have found that a lot of people I work with decide to keep their business after they’ve been through this process.

 

By spending time organising systems, processes, documentation and so on the business becomes easier to run, some of the stresses are gone and there is clearer direction. I’ve found myself in this situation, it’s almost like you press the reset button and start it all over again.

If you find that you now want to keep the business a bit longer then make sure you keep updating all the information you put into the shared drive. By doing this your business will be ready to sell at any point and will be worth more than competing businesses and be much easier to sell.

 

 

How to sell your cafe

 

 

If you’re still committed to the sale process then the next decision is whether you will sell the business yourself or sell through a broker.

 

If you going to sell through a broker it’s a good idea to bring in at least three different ones to get a feel for how you might work together. It’s also good way to cross check the valuation of the business and to get feedback on the current market, there could be external factors that your unaware of that may influence the price.

 

Naturally the commission charged on the sale is an important factor, I have been amazed over the years how much this fluctuates from one broker to another.

 

Advertising costs are also something else which seems to vary quite a lot, on the last business I sold I had advertising quotes from brokers ranging from $900 to $3,000. The interesting thing I found with this was that all the brokers also told me what a strong database they had!

 

I would expect to pay cost for advertising and no more, check with the brokers where they will be advertising and ask for a breakdown of costs for each area.

 

 

If you decide to sell the business yourself then you need to consider writing your advertising copy and information memorandum and think about how best to filter enquiries.

 

One of most time-consuming areas of selling a business can be dealing with enquiries from people who are not serious buyers. One of the things that we do on the six weeks to sale program is prepare non-disclosure and confidentiality agreements that can be sent out in the early stages to help filter out any time wasters. These documents also cover you legally should any confidential information be disclosed.

 

At the same time the confidentiality agreement is sent out we generally ask buyers to complete a ten question survey that gives us much better idea about their current situation. For example, are they currently operating another business? Do they require finance? What time scale are they hoping to work too? and so on.

 

This is a very useful process firstly to qualified buyers and secondly if you have more than one enquiry it gives you some information on each buyer but you can use to decide who might be the better option for the business. You can easily create these email questionnaires for free in applications like Typeform.

 

Once you have a buyer interested in the business with the document system you have organised it will be easy for you to share the required information to allow the buyer to carry out their due diligence.

 

When you do receive an offer on the business you will need to draft a heads of agreement document that instructs the legal representatives for each side about the transaction.

As the deal progresses you will then need to co-ordinate with your lawyer and potentially the managing agent for the landlord as well.

 

When dealing with a business sale yourself as well as running the business this part can be challenging at times. With your lawyer, the buyer’s lawyer and the lawyer for the landlord involved in the transaction without some gentle encouragement the process can take a very long time. This is where brokers earn a fair bit of their commission and it can help the transaction to move quicker.

 

As with the previous section this really is an overview of the process and there is more involved which cannot all be covered in this document.

 

Our website contains a lot of useful information for people selling cafes and I am always happy to answer any questions that I can by email.

 

Learn more about how to sell your cafe without paying commission here https://www.gsebusinessconsultants.com.au/sell-my-cafe

What to ask your solicitor when selling a cafe

What to ask your solicitor when selling a cafe

 

 

When talking to your solicitor one of the most important things to review is the current lease of the business.

 

In most cases we don’t tend to look at this document after we’ve bought the business but during the sale process it’s important to go through this again in detail at it can have a huge impact on the valuation and the ability to sell, I always suggest that my clients make the solicitors meeting one of the first in the process.

 

If you do find it there is an issue with the lease then this can take some time to sort out so its always better to get this checked out early on.

 

Key questions to ask.

 

A few of the key points to review with your solicitor during this meeting are

 

How much time is left on the current lease and do you feel that buyer’s will feel it is long enough in relation to the price that you’re asking for the business?

 

• If you’re not already sure check how often the rent is due to increase and how this is calculated. This is a commonly asked in the early stages it’s good to answer it in the initial marketing.

 

• What does the lease say about assignment?

This is the transfer of the lease from yourself to the person buying the business.

Most leases will state that all costs relating to the assignments to be paid by the lessee (you) and it’s a good ideas at this stage to make sure your solicitor pushes for you to only pay 50%.

 

By giving your solicitor the heads up about this early on you can make sure that this agreement to pay 50/50 is drawn into the contract of sale and its an easy way to save yourself a good chunk of money on legal fees.

I’ve always advised my clients to do this and it’s very rarely gets questioned by the purchaser’s solicitor but, it is important that you instruct your solicitor to do this it can be missed.

 

• How much are they going to charge you?

I’ve noticed that solicitors fees of my clients seem to vary greatly for very similar transaction.

It’s a good idea at this stage to get an indication of what the solicitor is going to charge you in relation to dealing with preparation of the contract of sale and helping deal with the assignment of the lease

 

Understanding what your legal fees are likely to be is important when you work out the sale proceeds you will be left with after all of your costs.

 

If you feel that their costs are too high don’t be afraid to question them or seek other quotes, a lawyer working for you on this does not necessarily have to have any history with you.

 

I work with a couple of lawyers in Sydney who specialise purely in business sale transactions so if you need a second opinion feel free to let me know and I’ll happily pass on their details.

 

Also, just so you know I don’t take any kickbacks or referral fees from anybody that I work with and I only recommend people who I know can genuinely help the people that I work with.

 

I hope this helps, feel free to get in touch if you have any questions about selling your café.

 

 

 

 

 

 

What to ask your solicitor when selling a cafe

How to Sell a Café – Financial Preparation

How to Sell a Café – Financial Preparation

How to Sell a Café – Financial Preparation

 

One of best things that you can do in order to prepare your café for sale is to have your financials prepared and ready to provide to qualified buyers.

 

Having your financials prepared basically means having up to date information that proves the amount of sales, expenses and profitability of the business.

 

When your financial information is prepared and ready to go it helps with the business sale in several different ways but, most importantly it will save you, the business owner a great amount of time.

 

In worst cases if this information is not properly prepared (and accurate) then it can cause a sale to stall and even fall through.

 

If you have worked hard to market and advertise your café and you have generated some interest you need to make sure you keep those people interested and give them very little reason to pull out or try and negotiate the price downwards.

 

Selling a cafe has a lot to do with reducing risk in the eyes of the buyer and if you do not have things like your financials in order the alarm bells will start ringing.
Many of the people that consider buying your café may not have any experience in the industry and may not be aware of how many café businesses operate (I think you know what I am talking about here).

 

Your job is to demonstrate the income that they can expect from the business and, if your BAS statements and financial accounts can’t prove this 100% then you need to think strategically.

 

One way that you can get around this is to use a tracking sheet in an application like Excel. This kind of spreadsheet can be completed in a matter of minutes each day and can be a very useful during the sale process.

 

How to Sell A Cafe - Financial Prearation

 

One of the key things to remember with this system is that you need to back up the information entered onto the spreadsheet. For example it’s no good just putting down that you took $1200 on the 14th of August unless you have kept a Z report or a POS record which verifies that.

 

The same applies with your invoices and staff payments, keep a separate record and make sure that everything matches with your spreadsheet.
I know what you are thinking and can almost hear the groans but trust me, spending a few minutes each day entering this information and filing the matching paperwork will pay dividends.

This simple system will help you to clearly demonstrate the value of your business and at the same time speed up the sale process by giving buyers less things to ask questions about.
The earlier you can start this the better, the more information that you can give to buyers like this the easier it’s going to be to get them over the line.

 

When to give out this information.

Naturally this information is very confidential and should not be shared with anyone unless you are confident that they are serious.

 

With my brokerage clients I take a goodwill deposit of 5% before this kind of information is shared. After this deposit is paid we grant the buyer a two week period of exclusivity where they can carry out their due diligence.

 

If you are selling on your own then you can still get a signed confidentiality agreement, (something that we cover in out Six Weeks to Sale program) which helps to ensure that any information provided is treated with confidentiality.

 

If you have any objection from somebody about signing a simple agreement like this then that is normally a sign that they are not a serious buyer.

 

When you get to the point that you consider sharing this information you will probably have had several interactions with the person interested and you should feel comfortable providing all the details required for them to confirm the figures you have quoted in the marketing of the business.

 

 

I hope this has given you a couple of ideas about how you can sell your café with more ease, it does not have to be a long or stressful process you just need to be prepared.

 

If you would like a copy of the spreadsheet I mentioned above just type “Spreadsheet” in the comments below and I will send you a copy.

Which are the Best Websites for Selling a Business?

Which are the Best Websites for Selling a Business?

 

 

 

Which are the Best Websites for Selling a Business?

 

I quite often get asked “Which are the Best Websites for Selling a Business?” In this video I compare four of the top websites that I use to list cafes for sale. I will show you the cost comparison as well as how many views and enquiries each website generated.

The sites compared are:

 

SEEK Business                      https://www.seekbusiness.com.au/

Business For Sale                 https://www.businessforsale.com.au/

Business2Sell                        https://www.business2sell.com.au/

Business For Sale.com        http://australia.businessesforsale.com/

 

 

Whilst the results are from one of the quieter months of the year (June) the business that we will compare was added to each of the websites at the same time so it was a level playing field.

 

If you are considering selling your business yourself then you might only be looking to list your business on one or maybe two websites. With limited exposure it is important that you get the best return on your investment and generate serious enquiries as soon as possible.

 

There are also a couple of tips about writing you advert to make sure you cut down on the amount of phone calls and emails that you get and some suggestions about how to deal with buyer inquiries.

 

Hopefully the video will help you decide which are the best websites for selling a business and you can advertise your business and get a quick result.

 

If you would like a PDF of these slides then please just click here or  post your request in the comments below and I will send a copy out to you.

 

You may also want to look through the transcription below the video.

 

Best Websites to sell a Business from Paul Leach on Vimeo.

 

 

Video Transcription

 

This short video is about where it’s going to be the best place for you to advertise your particular business for sale.

 

When you’re looking at a listing on the main Business For Sale Websites the cost can be quite high so it’s really important that you work out for your business where you think you can get the best return on that investment.

 

You don’t want to just be throwing money left right and centre to try and generate inquiries and you also you want to make sure that you generate decent inquiries.

 

In this video we’re going to walk you through can to compare costs for that for the top websites that I use.

 

I am going to also have a look at the key things that you should be looking for which are going to be things like how much is the ad going to cost overall how many people are likely to see the ads.

 

I will also look and compare results from one listing which I have got on four different websites you can see how many views that ads got and then how many inquiries you are likely to get.

 

Its no good lots of people seeing you ad if they are not really serious buyers. We will look through one listing has been on the internet for about four or five weeks now and we’ll compare the metrics for that.

 

So the websites that we’re going to talk about today are going to be

 

Australian business for sale

SEEK Business

Businesses for sale.com

Business2sell.com

 

We’ll also have a quick look at my Website as well just give you a sort of benchmark figure.

 

If you’ve been doing a bit of research I’m sure you would have seen most of these sites.

 

These are four of the websites that I use consistently.

 

So the first one as mentioned is www.australianbusinessforsale.com.au   I have always had pretty good results with this site to be honest it looks a little dated when you compare it to SEEK but actually the functionality is pretty good.

 

 

It’s really easy to add a business on here, a very straightforward process for listing which again the important thing to think about are probably one of my favourite websites.

 

So on this one you can have a look at the pricing table here. Now I’ve never used it to be honest I have never used any of this looking at this and I’ve done the same for each website based on a three month listing.

 

You could obviously get a cheaper price if you have you list for longer but to be honest if your business is well prepared and if it’s priced correctly you shouldn’t be needing to list it for longer than three months.

 

 

 

 

So this one here you can see $190 for the three months plus GST bring it down to about $63.33 per month.

This is actually pretty reasonable I think that’s not too bad at all.

 

Next we move on to SEEK. Now you can see that seek again a very well-known site and very user friendly.

 

 

This website is so easy for buyers to search here for the type of business they’re looking for. It does get a high volume of traffic but I guess because of that sort of status that it’s got and where it’s positioned in the market is one of the most expensive so a three month listing on here.

 

 

You’re looking at $645 which breaks down to $215 a month so definitely at the top end and I think probably one of the most expensive websites for this kind of listing that that’s out there.

 

As you will see in a slide later on actually that the quality of leads that you get from this site are very good but it’s a premium price there’s no doubt about that.

 

As with all of the websites you can get a cheaper price if you go for a longer period but we don’t really want to be looking at that.

 

So for this purpose we’ll base $215 per month for SEEK.

 

Moving on to www.businessesforsale.com

 

 

Again a very well-known very popular site. These guys have got sites all around the world and this is obviously the Australian version here.

A good website and looking at that again is very similar to the first website.

 

$200 a month so $66 plus GST per month. Pretty reasonable to be honest.

 

 

And finally we’ll look at www.business2sell.com.au

 

 

This site here actually searches pretty well for a lot of key words in the hospitality industry and what I like about this site is that some of my listings that I’ve put up there literally only four or five weeks ago they’re already ranking pretty well organically. So it’s bringing more traffic to my website as well which is obviously useful.

 

As you can see fro the pricing above www.business2sell.com.au   is the second most expensive at $127 plus GST per month.

So again, a reasonable amount to be to be looking at spending.

 

 

 

Now we’ll have a look through now some of the results that I’ve got for one listing recently

 

You can see that this business was listed on these four websites pretty much within the space of four or five days so it’s been on the site for the same amount of time.

 

I won’t go through on this slide here ordered results individually but you can see they’re all kind of similar in the way they break down shows you how many how many views you’ve got how many inquiries you’ve got and so on.

 

Bearing in mind it’s the middle of winter (It’s currently July) the views and inquiries are lower than you should expect normally.

 

Even though it’s a quieter time of year for this purpose the playing field is level. The business has been listed on all of  these sites for the same length of time so you can see down here the amount of views that it’s had from each website.

 

Here is a Summary of the results

 

 

 

 

Here are a couple of other things that I do that you could you could look at doing yourself as well for advertising your business.

 

So firstly I will use Facebook ads, this is probably more geared for my kind of business I guess where I’m able to target people based on pages that I’ve looked at on my website, if they like some of my competitors Facebook pages and other actions that they’ve taken on my Facebook page and so on.

 

The other thing that you could do on Facebook is boosted posts. I use these quite a lot. You can see here some of the results and this is on all of these this spend is around $40 to $50.

You can see it’s possible to get your ads in front of quite a lot of people.

 

These are all targeted by interests. I was targeting people that had an interest of a cafe or a coffee shop and they lived near where these businesses are targeted.

 

 

Well hopefully that has been a little bit of help as I said if you’d like a copy of the slides so that you can reference all of those things that we’ve talked about Please feel free just to put a comment below and add your contact information

 

If you have any other questions or need any help please feel free to contact me on 0415 80 13 13 or Contact Me Here

 

 

 

Coffee shops for sale Sydney

Coffee shops for sale Sydney

GSE Business Consultants specialise in selling cafes and we have many Coffee shops for sale in Sydney.

 

You will find a selection of some of these businesses on this page but we always have others that are not listed on the internet. If you you like details of all of the current coffee shop listings that we have then register as a buyer with us (click the buyers link above)

 

and complete the online confidentiality agreement and we will send you out some detailed information about opportunities available.

 

As well as Coffee shops for sale in Sydney we also work with cafes, restaurants and takeaways, browse all of our cafes for sale.

 

If you have a Coffee shop for sale  or if you are considering selling we would love to help you, find out more about our services.

 

 

Coffee shops for sale Sydney