We currently have a business migrant client looking to buy a business in Western Australia. 

Their requirement is for a business with annual sales of up to $500,000 and currently employing 3-4 people.  The business should be soundly documented and all financial reports up to date. 

We can assist with financials if required.

If you, or someone you know, has a business that fits into this category please contact us to discuss.
At this time all business and industry types are being considered.
The purchasers have a strong business background and will consider any opportunity where they can add value and improve business performance.

The time-line of this opportunity is short and an early settlement is required.

If you are a first time, start-up business owner and you are considering signing an offer to lease or the lease itself, please before you do any of that come in and see us for proper advice.
A lease is a very significant and binding contract with a substantial opportunity but largely in favour of the landlord and not the tenant.
It is also likely to be the single largest financial commitment you will make after buying a house.
Just for a moment consider not just the monthly rental and outgoings which could be $2,000 - $7,000 a month or more.
The commitment  you are making is that amount x the number of months of the lease term.
So that could be 36, 48, 60 or 84 months. So in reality we are talking about a binding legal agreement of $80,000 to $600,000 in total.
It is not a level playing field and there is nowhere to hide if your business does not plan out as you believe it might.
In the event that your business goes away the financial commitment does not.
None of this should be overlooked even when you are offered rent free periods or contributions to fit-outs and other inducements.
This should not be an arena that a small business owner with very limited financial resources and no prior experience should be operating in. Of course the landlord or managing agent will not tell you that information - your due diligence is what is required to be fully informed.

Low Cost Legal Advice is rapidly becoming the most frequent request for assistance from small business.
The most apparent reason for this is that small business owners and intenders are entering into legal contracts such as leases, franchise agreements, contracts to buy & sell, business partnerships etc without proper knowledge, consideration or advice.
In many. many cases the amount of money involved is very significant and the losses involved for the business owner or now former business owners will take a very long time to get over, if that is possible. In many cases it is not.
We cannot stress enough how vital it is to get in front of an experienced business advisor and a legal practitioner to a provide proper course of action before signing anything. If at all in doubt don't.

Of greater concern to us as Business Advisors and Management Accountants is the complete lack of proper business planning, business plans, financial plans and the financial resources to sustain the business.

If you are in business, about to go into business or you know someone who is contact us - all will be very grateful for the advice they receive. 

What is about small franchises that first time business intenders find so attractive and experienced business owners would just walk away from?

The high cost of entry, the fact that most are a start-up businesses with no trading history and therefore no income, the probability of earning less than half of what they earn in paid employment, if it all works out and no opportunity to recoup the cost of expensive training, plant & equipment and other capital costs and then nothing to sell at the end of venture. 
And the lifestyle bit that is often included =  7 day / week commitment to make the thing work.
And a franchise agreement so heavily weighed in favor of the franchisor. 

To many, in and around business this is very common knowledge and yet many intending business owners are snared in this trap.

Franchising as a concept is a great way to duplicate a successful, well run business model - a turnkey business as coined by Michael Gerber. The truth of it is the franchise industry in Australia needs to develop some real integrity and eradicate the sort of practice as outlined about instead of just turning a blind eye.

Ross Greenwood  sums it all up very well in his article -  A show of  good faith for franchising - in the Smarter Business Ideas Magazine published by Telstra.

Join us for a Webinar on March 31

Have a legal issue you need advice on?
Do you foresee legal risks for your business?
Do you need to hire a lawyer or should you do it yourself?

Join us for this webinar and have all your legal questions answered. This session is FREE and could save you time and money.
Be informed when faced with your next legal problem.

Title:        FREE Legal Advice with Havilah Legal
       
Date:       Thursday, March 31, 2011
       
Time:       11:00 AM - 12:00 PM AWST

After registering you will receive a confirmation email containing information about joining the Webinar.


Space is limited.
Reserve your Webinar seat now at:
https://www3.gotomeeting.com/register/437832558