2.24.2006

Trendspotting Broker

Trendspotting Broker

Sorry for the last entry...still learning what not to do.

Anyway, I've been more involved with people who are buying and selling businesses. It is interesting how every type of business requires a distinct vntage point from a gross income perspective, and what makes it tick.

Liquor sales: I learned today that the smaller, more portable items such as pints of beer, half pints of liquor, have a 30-32% profit margin, while beer and liquor in larger quantities have about a 20-25% margin... Out of that one must pay rent, utilities, payroll, etc.

The client I gleaned this perspective from was referred to me by an Attorney friend after the client was dismayed with a couple of 'business brokers' who, in his opinion, inflate values too much and were not good facilitators.

I think the price one should be willing to pay must recignize tht intangible 'good will' if it is attributable to the continuing success of a subject business, but the business should be a machine already. Then, enhancing the value based upon your ability to revitalize small pieces of the business and add services or products while renegotiating your position to maintain other product lines(or not) adds directly to the bottom line...or at least forces one to discover new avenues and new trends within their business sector.

The speed bumps in business simply force you to discover newer and better products. But never forget the marketing, especially the BUZZ.

Always learning, I think. Chris

Chris

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