Buying a Business? Follow These Tips!

Congratulations!  You have decided to buy your own business! While exciting, there is a lot of information you should know to ensure the business you purchase is the right business for you. Kensington Company & Affiliates offers FREE consultations to help determine if business ownership is right for you. If the answer is yes, then Kensington can help guide you.

It is important to understand that you are not alone in the search for a good business to buy. You will be competing against other buyers so it is imperative to arm yourself with knowledge. Kensington Company & Affiliates can provide expert knowledge, advice, and guidance with NO FEE to you!

Here are some basic tips for you:

• Communicate! As your business broker, we are here to service you. Let us know the reasons you are, or are not, interested in a business we forward. This will help us fine tune our search and  have you in mind when the right business comes along.
• Be Honest! Be truthful about your financial situation and your background. We can not properly match you to a business if we have faulty information.
• Confidentiality Matters! Don't risk the sale by breaching confidentiality.
• It's Not Only Numbers! While it is important to analyze the numbers, there is more to the business. Learn more about the business, and the seller, by visiting the business and meeting with the owner.
• This Is Not A Job Interview! Act like a peer, not a job applicant. Show you are a business person who is ready to run the show.
• Be Respectful! Negotiating is part of the process. Discuss areas where you will need to invest in the business rather than pointing out flaws which may offend the seller. 

Buying a business is a lengthy, detailed process and it is important to understand each step along the way. Schedule your free consultation to learn how Kensington Company & Affiliates can help you successfully navigate your way to business ownership!

Kensington Company & Affiliates Has Won the HIA-LI Business Achievement Awards for Small Business!

The HIA-LI, Hauppauge Industrial Association, is the recognized voice for business on Long Island and a powerful force and economic engine for regional development. They provide a forum for business leaders to problem solve and network and have developed a series of initiatives and programs to support future growth of Long Island businesses.

Each year the HIA-LI recognizes business excellence in a number of categories.  The Business Achievement Awards are given to a Large Business (100 or more employees), Small Business (less than 100 employees), Rookie of the Year ( companies that have been operating less than five years), and a Not-for -Profit Organization.

The award criteria is a) positive employer/employee relations, b) commitment to the growth or betterment of the Long Island business community, and c) the three to five year vision for the company's future. Also considered is a) recent outstanding accomplishments, b) technical innovation or innovative processes, c) expansion into new markets, and d) industry leadership.

The 2012 finalists have been announced and Kensington Company & Affiliates has won the Business Achievement Award for Small Business! The winners will be honored at a gala held at the Crest Hollow Country Club on September 12th. We are honored to be recognized for our dedication to Long Island business.

The Business Achievement Awards Gala draws over 400 business leaders from across the Island making it a valuable networking opportunity. If you would like to attend, and possibly meet your next client, click here for the registration page. We hope to see you there and we look forward to building better business on Long Island!

Attitude is Contagious! Positive Attitude Can Produce Successful Sales!

Being successful in sales as in most things, requires two key ingredients-. a good attitude and positive energy. We have all heard the expression attitude is everything. That saying could not be more true then when engaging a prospect in a sales process. No one likes working with people who have a negative attitude. Attitude is contagious; if you are upbeat and positive this will help create positive, upbeat relationships with your prospects.

It is, however,  difficult  to be positive and upbeat day after day when you are in sales. After all sales is rejection and hearing ”NO” all day can wear on even the broadest shoulders. 

If you are a telephone sales warrior, there are ways to help keep your energy and attitude upbeat and positive throughout  the day. Here are three tips to help keep your head in the game: 

1. Make your difficult calls first:   If you have challenging or difficult calls that you need to make, make them early in the day. I think of those calls much like the dreaded visit to the dentist. Or, If you have a dentist appointment in the afternoon, you spend most of the morning feeling anxious and unfocused.) Make those challenging calls early in the day when you’re full of positive energy and then you can quickly put them behind you and move on with your day. 
2. Break up your cold calling:  The law of numbers says you are going to hear more “No’s” then ““Yes’s” when calling. And that’s only when you actually get someone on the other end of line vs. the endless voicemails you leave all day.…. Break up the cold calling,  and reach out to prospects that you know are tracking in your process so you can get some engaging conversations into the mix. You will have rejuvenated energy after speaking with a live voice that is appreciative of the information that you are passing along. 
3. Motion creates emotion:  Stand up, get out of your chair, pace the floor,  do what ever you need to do to get your blood flowing. No one wants to speak to someone who has no pulse, no energy and no passion.. If you are half dead on the phone, you are creating a situation for the prospect on the other end of the line to reciprocate e that low energy. Be upbeat, it is contagious and your prospect will instantly feel that energy. 

You have the power to change your attitude and energy. They are easy simple steps that can be embraced and bought into your sales process that will help keep momentum moving!

-Stuart Levenberg

 Kensington Company & Affiliates 

How to Prepare to Attend a Franchise Show

Kensington Company & Associates understands the importance of connecting a person with the franchise system that is right for them.  To that point, Stuart Levenberg has prepared these tips to help prepare to attend a franchise show. 

Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons that are interested in selling a franchise that you are not interested in. Before you attend, research what type of franchise best suits your investment limitations, experience and goals. Then, comparison shop for the opportunity that best suits your needs, and ask questions. 

Know How Much You Can Invest

An exhibitor may tell you how much you can afford to invest or that you can’t afford to pass up this opportunity. Before beginning to explore investment options, consider the amount you feel comfortable investing and the maximum amount you can afford.

Know What Type of Business is Right for You

An exhibitor may attempt to convince you that an opportunity is perfect for you. Only you can make that determination. Consider the industry that interests you before selecting a specific franchise system. 

Ask yourself the following questions:

  Have you considered working in that industry before? 

  Can you see yourself engaged in that line of work for the next 20 years? 

  Do you have the necessary background or skills? 

If the industry does not appeal to you or you are not suited to work in that industry, do not allow an exhibitor to convince you otherwise. Spend your time focusing on those industries that offer a more realistic opportunity.

Comparison Shop

Visit several franchise exhibitors engaged in the type of industry that appeals to you. Listen to the exhibitors’ presentations and discussions with other interested consumers. Get answers to the following questions:

  How long has the franchisor been in business? 

  How many franchised outlets currently exist? 

  Where are they located? 

  How much is the initial franchise fee and what are the additional start-up costs, if any? 

  Are there any continuing royalty payments? How much? 

  What management, technical and ongoing assistance does the franchisor offer? 

  What controls does the franchisor impose? 

Exhibitors may offer you prizes, free samples or free dinners if you attend a promotional meeting later that day or the next week to discuss the franchise in greater detail. Do not feel compelled to attend. Rather, consider these meetings as one way to acquire more information and to ask additional questions. Be prepared to walk away from any promotion if the franchise does not suit your needs.

Get Substantiation for Any Earnings Representations

Some franchisors may tell you how much you can earn if you invest in their franchise system or how current franchisees in their system are performing. Be careful. The Federal Trade Commission (FTC) requires that franchisors that make such claims provide you with written substantiation. Make sure you ask for and obtain written substantiation for any income projections, or income or profit claims. If the franchisor does not have the required substantiation, or refuses to provide it to you, consider the claims to be suspect.

Take Notes

It may be difficult to remember each franchise exhibit. Bring a pad and pen to take notes. Get promotional literature that you can review. Take the exhibitors’ business cards so you can contact them later with any additional questions.

Avoid High Pressure Sales Tactics

You may be told that the franchisor’s offering is limited, that there is only one territory left, or that this is a one-time reduced franchise sales price. Do not feel pressured to make any commitment. Legitimate franchisors expect you to comparison shop and to investigate their offering. A good deal today should be available tomorrow.

Study the Franchisor’s Offering

Do not sign any contract or make any payment until you have the opportunity to investigate the franchisor’s offering thoroughly. As will be explained further in the next section, the FTC’s Franchise Rule requires the franchisor to provide you with a disclosure document containing important information about the franchise system. 

Study the Disclosure Document

Take time to speak with current and former franchisees about their experiences. Because investing in a franchise can entail a significant investment, you should have an attorney review the disclosure document and franchise contract. You also should have an accountant review the company’s financial disclosures.

Returning Veterans Make Excellent Franchise Owners

Economic times are difficult, layoffs are common, and unemployment is high. People with jobs worry about losing them and those without jobs are fervently searching for one.  Times are difficult and especially so for the brave men and women who left our job market to fight for our country.  They sacrificed income and time with their families only to return home to a new fight.  The fight for employment.


Kensington Company & Affiliates may be able to help find the solution for veterans returning home by educating them on franchise opportunities. The same skill set that makes a good soldier is often the same skill set thats make a franchisee.


What makes a good franchisee?

• Passion
• Drive
• Self-motivation
• Work well within a team environment
• Work well with detailed systems

Franchisors recognize the value in working with veterans and many times will offer incentives to help a veteran get started in the business.  Call us to schedule a FREE consultation and learn if franchising may be the solution for you!

What to Plan for in a Buy Sell Agreement to Prevent Loss of Business & Litigation.

The Kensington Company & Affiliates would like to thank Jeanne Brutman, LUTCF, CBFS, CFS for submitting this informative article.

 

What to Plan for in a Buy Sell Agreement to Prevent Loss of Business & Litigation.

The Goal:  Transfer of Business shares in a life event to those who wish to keep the business and cash to those that need to be bought out due to the following circumstances:

• Death:  The premature passing of a shareholder.  Usually Funded with Life Buyout Insurance, assuming all involved are insurable.

• Disability:  The Unplanned accident or illness of shareholder.  Usually Funded with Disability Buyout Insurance, assuming all involved are insurable.

• Divorce:  Prevention of spouse of shareholder from causing undue stress on other business partners during separation or divorce proceedings.

• Discontent:  The inability of partners to co-exist in one corporation for any reason not related to legal or ethical violations.

• Marriage:  Prevention of future spouses of shareholders from making claim to partial ownership of business in future.

• Retirement:  The ability for any shareholder to leave at agreed upon time amicably.  Usually funded through combination of cash value life insurance, corporate retirement plans and possibly installment payments from Annuity products or ongoing business revenue (least practical).

• Felony:  The removal of shareholder that has legally or ethically endangered the company through their inappropriate actions. 

It is usually recommended to go through some level of third party business evaluation of  your business (not done by your cpa) every two to three years to substantiate the value of the business for IRS taxation purposes.   Business valuation can be done from 3 different perspectives. sale of business to outside parties, estimation of estate taxes or internal buy sell agreement. This should be done as soon as possible to get a base line of the business value as it hits profitability.  Flat value amounts can be used, but run the risk of out-dating rapidly and increased scrutiny from the IRS upon business transfer.  Business valuation formula’s are more useful, but also have to be reviewed and possibly revised as the business changes structure over time.  As mentioned above ,it is considered in good form to review the entire buy sell agreement and it’s formula’s or stated business value every 2-3 years, but. if the business is expanding or shrinking more rapidly, perhaps more often is advisable.

Lunch and Learn June 19th

Kensington Company & Affiliates   Free Lunch and Learn  with a Leading National Franchise Company and their Local Franchise Owners Next Tuesday, June 19th, 1pm The Olive Garden,Old Country Road, Westbury, NY If you are looking for business ownership and want a business that offers fast ramp up, a proven track record and big earning potential. This event is for you! ....and in house franchisor financing. Learn about a franchise that has been ranked by Entrepreneur Magazine as #1 in their category for 15 straight years. Free Event, Registration Required - Click Here (also featured at this Lunch and Learn will be a Franchise Resale for Budget Blinds Netting Approximately 125K and only asking $150K)

A Few Reasons to Learn More about Budget Blinds Low Investment Cost, Under $100K Total Investment   Very Fast Ramp Up and Big Earning Potential Franchisor Financing Available Few Employees Home Based, No Inventory, Low Overhead Flexible Schedule - Make your own Schedule $8 Million Spent Annually on Marketing - in the top 10% of all franchisors. Average Gross Profit = 53% 75% of their franchisees are Men with NO Design or Decor Experience Named the #1 BEST Franchise in their Category for the past 15 Years by Entrepreneur Magazine #1 for 3 years in a row, Franchisee Satisfaction, by Franchise Business Review - AMAZING FRANCHISEE VALIDATION - HAPPY OWNERS, MAKING MONEY Ranked in the top 70 of ALL Franchises by Entrepreneur Magazine Un-paralleled Training and Support Strong Vendor Relationships and Purchasing Power FREE LUNCH If you are looking for a low cost, home based business, that offers complete freedom and flexibility and can cash flows positive in a very short period of time, join us for this Free Lunch and Learn. Most of their franchisees are men with no previous design or decor experience that moved forward with Budget Blinds because of their AMAZING business model with strong earning potential. If you are looking for a business and are on a tight budget, want great support, need quick ramp up and cash flow, then you should invest an hour with us for a free lunch and learn. Don't take our word, meet with local franchisees and speak with 100's of others as you validate and learn about this great franchise opportunity. Furthermore, they will also fly you out to California to see their corporate offices and put you up for 2 nights to meet their team and view their operations. Call or email with questions. Stuart@kensingtoncompany.com 516-626-2211