A lot of information can be revealed before you even talk to a prospective seller. But hold on for just a second, are you really sure that you possess the level of enthusiasm you need for this type of business? Is the industry that you are looking at of particular interest to you and do you really want to get actively involved in everything that it represents? Be advised, that unless you want to be a completely “absentee” owner and are considering the many additional steps that you need to take if this is the case, you should be enthusiastic about the business that you are getting involved in.

A process of due diligence requires you to inspect all kinds of documentation:

* Financials: these documents will include balance sheets, payroll records, tax reports, reconciliation documents and profit and loss statements. If the seller claims a considerable amount of “cash sales” but cannot point to these within tax declarations, then they cannot be counted and you must ignore them.

* Employee records: including information on individual behavior, attendance, length of service and pay scales.

* Licenses: including federal, state, city, county as appropriate, plus any certification licenses you must possess to operate the business. Be prepared to consult records independently to see if there have been any discrepancies or problems in the past.

* Equipment records: detailing the age, cost of replacement, any required inspections and associated results and details on maintenance investments.

* Inventory records: including turnover, condition, and re-saleability.

* Supplier contracts: are they transferable, do you have alternatives and is there goodwill?

* Property records: including rental agreements and portability – the latter element is of considerable importance.

When you have inspected all agreements, contracts, licenses and records, you may find they are in good order and will work for you and then need to turn to the question of setting a good value as you buy business assets. There are many different ways of looking at this. Some of the methods used to calculate include:

* Asset-based multipliers, are where a total value of the assets is used to determine a value.

* Rule of thumb, where industry benchmarks are used to establish the value (not recommended).

* Revenue-based multipliers – a percentage is applied to monthly or annual revenues (not recommended).

* Cash flow multiplier, is where a business owner’s profit level is added to his or her salary and any other perks and certain expenses are deducted. This method is most commonly used to determine the value of a business.

Any number of documents and figures can be used by the owner to back up a claim and it is up to you to take these at their value and determine the appropriate conclusions. What is the age and reputation of the business, the level of competition expected, its physical location in many cases, the legal structure of the business, the quality of the premises and/or the difficulty in obtaining a new lease. When looking at a business for sale, take everything into account as you determine whether you should buy a business like this.

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.

If you have never run a business of any kind before you may be wondering where to start. You might like to consider buying an existing business as it is true that a lot of the leg work has already been accomplished and the business is established to a certain degree. Although this may well be true, be sure that you have your eyes wide open whenever you walk into any situation, as you need to do a lot of research, talk to experts and be clear that the business you’re looking at is well valued, and subject to a good degree of diligent checking.

When you decide you will buy business interests, there are certain specific steps that you must take. Never be tempted to short cut or to let your heart rule your head. It is natural to develop an enthusiasm for what you are doing and the prospects ahead and if you see positive signs during your process of discovery, this can lead to you wanting to jump ahead enthusiastically. Be warned, this can lead to serious problems if you’re not careful!

Successful entrepreneurs know that time in preparation, while it may be a very lengthy process and therefore somewhat costly, is money well spent. Whenever you buy a business for sale, the effort that you put in up front pays dividends all the way down the line as you proceed. As such, expect to spend money researching your business in terms of time at the very least, invest in educational materials, and you won’t be tempted to try and rush through the process.

The self-employed business person possesses a certain number of essential personality traits and if you’re looking to buy a business, you must also be positive and realistic throughout the process. Always focus as you look through the haze and realize that if something is “too good to be true” then it almost always is; you need to cultivate a strong appreciation of common sense. Humor will definitely be an ally as well, as this procedure can be very lengthy and will require you to maintain a positive attitude.

It’s essential to strive to be a good communicator, as you certainly will need to be, as the seller and other interested parties must be grilled for information, as you impart your needs and requirements to them. Being able to ask the right questions at the right time and correctly interpreting the answers is paramount.

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.

During key account management training, all the potential hurdles and obstacles that may be encountered, especially if the process of preparation is poor, must be understood as each party’s position is clarified. There is a distinct difference between principled negotiation and positional bargaining, which the pharmaceutical sales rep must understand. It is important to distinguish and to understand that positional bargaining can result in a less than equitable outcome. If a softer position is presented, the risk is that concessions may be made just so that an agreement may be achieved, bypassing the problem, while if a hard position is adopted this can lead to pressure on the relationship itself, with potential damage.

When two parties come together in the process of negotiation, it is important that each side is able to see from the other’s perspective. It is important that no process of blame is attached to any particular stumbling block or problem and that one party does not criticise the other for a particular stance. Every issue must be dissected and clearly understood, with potential outcomes investigated on either side. Each party should have a perceived stake in the outcome of the negotiation and as those discussions proceed, each party will then feel their positive involvement and a wish to find a mutually acceptable conclusion.

In our constantly evolving market, pharma training really engages the sales practitioner. The professional must be fully educated about the product line and it is his or her responsibility to ensure that the end-user, the pharmaceutical professional, is in possession of all the facts related to product usage, usability, restrictions, potential side effects and safety. Invariably, key account management training clearly understands how complicated this can be and that the path to sales closure is far from straightforward. The process of negotiation between the two parties is quite subtle and it’s important to realise that emotions can come into the picture. There is a danger that inadequate sales practices in the past can also place stumbling blocks in the way, as memories of this less-than-perfect interaction can cloud the healthcare professional’s judgement.

Preparation is everything and before any process of negotiation is undertaken, the sales representative should have gathered a lot of intelligence, information and data to bolster a clear understanding of the purpose at hand. By doing so, the sales rep will be able to clearly define the position without any possibility of misunderstanding or confusion. By taking time to understand the intricacies of the other party’s position, the successful sales representative can tailor the approach, while still successfully trying to match the company’s ultimate objective.

Alan Gillies is the Director of L2L Consulting, an elite pharmaceutical consultancy firm which specialises in Strategy Development and Implementation Excellence for prestigious multi-national organisations.

One of the key skills that you can possess when you get ready to buy restaurant business assets is the ability to communicate and to decipher information. You will need numerous meetings with the seller and don’t be surprised if the early ones don’t reveal some fundamental facts and figures. Normally, a seller will want to be just a little protective and will want to see how enthusiastic you are or whether you are really serious before any important data may be divulged.

There are some basic facts and figures to absorb before you are able to project your own figures for the future. What style of food does the business favor and how many tables are there in the restaurant? How many covers, or meals are set per week and by day and if the menu is very specialized how strong are the supplier contracts and the subsequent supply chain?

In any business, labor costs are significant. Find out how the costs breakdown and whether the strength of the entire business is based on the skills and strong personalities of key figures, notably the master chef. You may not expect to get a lot of the finer details during the early process, as a seller often wants to keep any news of a potential sale away from the employees until the appropriate moment.

When you start to compose a check-list of questions for the owner – and you might find you have hundreds, don’t be afraid to be as specific as you need to be and insist on appropriate answers. As you are preparing your position, though, remember that this type of business will call on very long hours and is typically a seven days per week activity. You will be required to deal with many “fires,” be great at managing people and your time and may not expect to see a specific net profit for quite a while.

Some of the challenges you may well face as a new owner include the ability to consummate new relationships with your suppliers. Some suppliers see a change of ownership as an opportunity to significantly “amend” their contracts, and prices. You must be able to deal with distraught people, who may be upset because their table is not available, even though they booked it but arrived late. You must be able to motivate your employees and be able to handle all situations immediately, resulting in praise or termination accordingly.

When you’re sure that you are cut out to buy business interests in the restaurant industry, have tabled the right questions and received the comprehensive answers, are happy with your interpretation of the financials and contracts, then you are ready to discuss the value. Always work with knowledgeable experts in the field who have experience in the restaurant industry and use their findings to backup your own thoughts. If you know what the business bottom line is, the salary take of the owner, net profits and owner benefits, then you should adjust this figure according to any capital expenditure you feel is important.

With any restaurant for sale, the three major costs involved – labor, rent and food, should be no more than two thirds of total expenditure and always remember that you will have to have a superb marketing plan so that you can tell everyone about your new creation.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation – The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business.

The exchange of value is insufficient if effective communication is not given great attention, and this is one of the main reasons why a relationship may fail. The element of one-on-one contact is still the most important and must be handled very carefully. Key account management training may well call for many different individuals within the company to be intrinsically aware of a client’s needs. A multitude of individual communications may take place. While this is going on, a specific “point person” must be front and centre, and focused on maintaining the critical communication with the key individual in that key account. In the very early stages of development, this relationship must be categorically identified and must be cultivated, or problems will certainly arise.

Customer service may be one of the first areas to be considered for cutbacks during slower times and while certain roles may indeed be effectively consolidated under the total domain of key account management, personal contact with the key client should never be overlooked. It is also not sensible for the organisation to put all its eggs in one collective personality basket. Relationships, whether in personal or business situations, are often based on the convergence of personalities, but there is a danger in relying upon these alone. Key account management structures should build in a certain layer of redundancy and ensure that the relationship with the client could not completely collapse if one party departs the organisation.

These days, key account management training should never be cast in stone, or the subject of a repetitive, “proven” philosophy. The management team responsible for setting up the company structures should be “street smart,” and well aware of what the particular client needs, as a consequence. They should not operate in isolation from the marketing office, but should get out and visit clients. They will then be able to modify the position of the company, act when needed and decisively if necessary and be able to patch up any breaks in interpersonal relationships, with confidence.

The road ahead is challenging for the pharmaceutical company, as even more legislation arrives and as a process of consolidation and acquisition is anticipated. Within the industry, major patents are set to expire and “niche” products and solutions will continue to emerge, so pharma training must become even more diversified and far-reaching, to be able to cope with each and every eventuality.

Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.

Don’t be one of those copywriters who makes the mistake of not knowing about the product. The prospects that are reading your copy aren’t stupid, so they will soon figure you out if you don’t have a lot of knowledge about the product. In other terms, people are less likely to buy from you if you know nothing regarding what you’re writing about. The prospect won’t find it really professional if they come to know that the author doesn’t know what he’s writing. For this reason, studying every aspect of the product becomes necessary if you hope to write great, effective copy. The best way to make your sales copy succeed is to be absolutely clear on a product, and studying that product is the only way. It is crucial that you give your potential customers the benefits in an accurate and clear way if you hope to convert them into buying customers. The second common copywriting mistake is that the copy just doesn’t catch the prospect’s eye. You must be able to really grab the reader if you hope for your copy to be effective. There are many direct response sales copies out there that don’t have an effective headline, which obviously affects the whole performance of your sales letter. It takes only a few moments for your reader to decide whether or not they’re useful so you must grab them early on. If you don’t put your unique selling point in your title, your reader may not know what it is and they might not buy. Your buyers will want to know how they can benefit from using the product, so mention it very early. Headlines that are tight and focused are better than those that contain too many words and don’t say anything. Lots of words make it lose its effect. Let’s say you sell slide scanners, keep the copy focused on how the product can benefit the end user better than other options.

Proper positioning of the price of your product in the sales copy is very important. If you tell readers the price right off the bat you will kill any curiosity and will probably end up with people not reading the benefits and simply leaving, which you want to avoid. Before you reveal the product’s price you need to provide people with the benefits and show them your offer. When you actually tell them the price you need to make sure that you are quite clear. Your prospects need to see it clearly so avoid hiding it in your sales copy. Make it obvious and evident, but at the right time. Overall, there are many reasons why your copy would fail, but the mistakes that we discussed in this article and important to avoid, so that you can achieve success with your copywriting.

Many healthcare professionals, pharmacists and practitioners have become rather jaded, often as a consequence of saturation, overkill and poor sales and marketing techniques. The average professional comes across many different pharmaceutical reps during any given week and may not anticipate these meetings very well. The rep has to tread very carefully, so that the right amount of influence is shown without any undue pressure or posturing.

Consultants who provide pharma training to sales representatives must focus on building confidence and must ensure that the rep understands the importance of preparation. You have to have a very clear picture of the endgame and know what you want to get out of it. This will vary from client to client, but the rep must master the ability to differentiate, even if he or she is always trying to sell an identical product. Be prepared for the rebuttal, which could be couched in many different forms and be prepared to be clear and assertive, without appearing to try and dominate.

It takes a lot to build a foundation of influence, through a process of preparation and subtle action. Maybe the rep will have to work through gatekeepers within the target organisation along the way? Be proactive here and make sure that you are empathetic and understand the challenges facing the prospect. You will need to look vertically and horizontally and take into account factors which may not necessarily have any direct association with the ultimate goal, but may nevertheless impact in one way or another. By doing all this groundwork, you are establishing a key position of trust, an essential attribute taught during key account management training.

By knowing what your prospects are likely to say to you in advance, you can have your position carefully crafted and be prepared to deal with their objections, positions and likely response. Put a clear and palatable solution to them, one that is likely to meet their ultimate needs, as well as satisfying your objective in closing the sale. It’s important to build flexibility into your stance, so that you can be seen to “give” somewhat, if necessary, helping to achieve a powerful feeling of collaboration between all parties, creating good relationships going forward.

Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.

Whenever you buy liquor store business interests, the purchase will be represented by many different assets and the seller’s position at that time will be dependent on a variety of different factors. These include the effort put into the business by the owner, marketing plans, the demographic make-up of the clients in its catchment area, focus on particular products or services, the competence and skills of the staff and so on. With this in mind, you will need to get as much information as you can, research comprehensively and ensure that your process of due diligence is in place.

All of the following issues must be considered when you are contemplating the purchase of a liquor store:

* location.
* are revenues and profits sustainable?
* the customer database and potential for expansion.
* how portable is the lease and what are the terms and conditions associated?
* demographics and population shifts.
* any pending road construction.
* look at the employees, do any work for cash or favors and are many family members involved?
* any pending threats or opportunities that could significantly impact revenues.

Bear in mind that the liquor store industry tends to want to focus on industry benchmarks and while this is fine for some outline information, you cannot rely on it. It’s certainly true to say that no two businesses are the same and a variety of focus areas are possible – premium products, beer, wine and cigarettes. Always be on the lookout for abnormalities and if something really jumps out at you, get to the bottom of it. When all is said and done, is the bottom line of sufficient interest to you to go forward?

When you are assessing the business financials and particularly the revenues, you must dismiss any cash sales reported by the owner unless these sales are backed up by audited accounts and are included in tax returns. The outgoing owner cannot expect to receive the value for these “under the counter” sales, as he or she may well have not reported them for tax purposes in the first place.

Inventory offered must be saleable and not be made up of products that are out of date or unlikely to sell. This would certainly be the case if you were presented with a stock of winter ales in the summer months.

To establish a base upon which to value and then decide to buy a business, look at net income, add owner salary, any perks, received depreciation and interest and then deduct any allocation for capital expenses. You may have to make a capital expenditure in the short to mid-term if you think that improvements, upgrades or other necessary investments are called for.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation – The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business.

Here lies the main point, the problem that has faced the motivational speaker or corporate trainer for years, now. It may be relatively easy to propel a salesperson to make a plan and to thereby establish a relative goal, but the execution is often the challenge. Theory in the classroom is one thing, the practice is another, with the important goal being to make the salesperson actively aware of real-world challenges and threats and positioning them so that they can cope when the pressure is on. So many divergent factors are in play when the salesperson is talking one-on-one with the prospect and, little understood but probably the biggest hurdle of all, is the problem standing in between the sales person and the contract – the subconscious activity going on in the mind of the salesperson him or herself.

It is very important that pharmaceutical sales training does not set up subconscious, relatively impossible and/or psychologically negative barriers, potentially compromising effective implementation. We often hear that nothing less than a 100% result is acceptable and this often forms the basis for setting sales goals in the first place. Such a “set in stone” position can often result in failure, however, and we must view opportunities from all different angles. It is sometimes better to accept a result that can be classified as a significantly high percentage, rather than striving to get 100% of zero.

A sales person must be taught that a display of persistence in the face of adversity is important. This is not to say that the person should push forward under all circumstances, as it is equally as important to understand that certain parameters may have made any kind of sale unattainable. This requires a person to adapt and evolve and use internal motivation to dodge the final line of defence and score the goal.

To create a solid foundation, the organisation must provide absolute commitment in terms of training, resource availability and a strong product, to support the sales force from the beginning. This is where critical, key account management training works best, infusing the right person with the right amount of knowledge and ability, allowing them to implement effectively and according to unequivocal guidance from senior management personnel.

Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.

There are many definitions of key account management but fundamentally it is the process of handling significant accounts by offering them a consistent package of products or services that are entirely tailored to their requirements. It’s far from as simple as that, of course and depends on many complicated and often associated factors. Company executives often find it difficult, if not impossible to establish a set of criteria to determine how they should handle and manage appropriately. In many cases, significant customers will be looking for enhanced value through selection of preferred suppliers. As they do this, they seek information that could help them strategically, look for partners to help them with certain projects, or sophisticated levels of economic financing. Depending on their level of proficiency, they may also seek and demand that their suppliers maintain a sophisticated approach to the relationship and even become party to the adoption of certain accounting, procurement and delivery methods.

It is unlikely that two key accounts will have similar make-up, structure and behavioural characteristics and it is likely that each will have specific demands, putting considerable strain on the pharmaceutical company, from a logistical and resource allocation perspective. Expect to come across complex demands, ensuring that sophisticated techniques must be initialised before the client can be classified as satisfied. The underlying challenge is to make the client feel as if their company is the only organisation that matters to the pharmaceutical company.

While many of the techniques deployed by the pharmaceutical sales training company during key account management training may be strictly confidential and essentially hidden from public view, the company will want to ensure that the net result of its activities will result in reputational gain. Some external parties may view the relationship as a successful and developing one – and as such, key account management deployment can be beneficial in terms of attracting the attention of new clients, in the future. Not surprisingly, pharmaceutical sales training always has many different perspectives and potential goals.

Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.