ABC BUSINESS

WELCOME

Steve Smith AREINZ
Managing Director

Strong Demand For Businesses

Despite all the negativity we are reading and hearing from the media, ABC is experiencing a period of strong demand for businesses. In fact, May has been our best month in the last nine. With ABC’s strong marketing campaigns we are receiving an ever increasing number of “buyer enquiries” looking for sound businesses to invest in. This is all good news for prospective sellers in this period of media driven negative comments. Time and again businesses have proven to be the better form of investment. Very importantly, an investment in which you have control.

Demand is so strong in some sectors that well marketed businesses are achieving better prices for our vendors than just selling off the database. Once again this proves the power of strong marketing.

If you have a sound business and you wish to exit, but are concerned that you may not achieve your goal because of what you hear and read, you can be assured that the demand is still out there. To sell your business and achieve an excellent price, even in these tight economic times, just call one of our brokers.

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR

THE BARROW GOURMET GROCER

Location

Westfield Downtown Shopping Centre

AUCKLAND

Overview

The Barrow Downtown is situated on the ground floor of the Westfield Downtown Shopping Centre. This business has been in this area since the 1980’s, beginning as The Barrow selling fruit and veges. It has now developed into a gourmet superette and deli /cafe, with a liquor off-licence.

It’s customers are mostly city dwellers, tourists, corporate workers from the buildings nearby and ferry commuters.

Sales average around $10,000 per day showing a gross profit of 31.7%.

Products sold include:

European groceries

Fresh baked breads

Imported confectionery

Fresh and cured meats, deli items

Fruit and vegetables

Wine and beers

The fitout is top quality, costing over $500,000 two years ago.

The deli/cafe has them queuing out the door at lunch time because of their great array of salads and gourmet food to go. The cafe contributes around $3,000 to daily turnover.

The vendors have recently established The Barrow Britomart to cater to the market at the Eastern end of the CBD. All food is now prepared at this site and delivered daily to Downtown. This has significantly reduced the wage bill over the previous financial year.

The Downtown site has an area at the rear of the deli with a walk-in chiller, oven and preparation benches, where food preparation can be carried out allowing the purchaser to be totally independent. The present owner is prepared to continue to supply salads and other fresh products from their Britomart site, if required, on an ongoing basis.

Staff

Currently 5 full time + owner; +2 part time

Summary

An excellent business

Fantastic location

Great turnover, approximately $70,000 per week

Asking Price

Tangible Assets $350,000.00

Intangible Assets $350,000.00

Total $700,000.00 plus stock (approx $200,000)

Contact Kevin Hoare 09 630 1600 , 021 906 834

Ref: 21348

Click here to learn more

GOT DEBTORS?

Richie Lowe AREINZ

Tips on how to avoid and respond to debtors

Overdue payments are a fact of business but there are simple ways to help debt collection without it adversely affecting your business or your relationship with customers.

How you approach collecting debt will depend greatly on the business or the person you are dealing with. Helping a business overcome a difficult period might earn a loyal client so ideally it’s good to work on an outcome that maintains the relationship.

Some ways to avoid debtors or collect when you need to:

Get credit checks - if you offer a customer credit, you should check if they deserve it.
Set credit limits - your business should set a limit for each customer.
Get onto problems early - the sooner you chase, the more likely you will be paid.
Have clear terms of trade and get agreement - make sure your customers understand and accept your terms of trade.
Follow up effectively - the more personal the contact made, the more difficult it is to be ignored.
Be consistent - don't ignore late payments when your business is ok and take a harder line when things are not so good.
Sustain the relationship - be polite but firm and follow through with what you say you will do.
Ask why payment is late - is there a dispute? If not, and it's cashflow, ask to be paid by credit card (up to 50 days grace).
Debt collectors - removes the unpleasantness of chasing up but comes at a cost.
Court action - a last resort. Balance cost and time. Does it make business sense?

Based on an online training module of NZTE

Richie Lowe is General Manager of Affiliated Business Consultants Ltd (ABC) and Immediate Past Chairman of the Business Brokers Division of the Real Estate Institute of New Zealand..