Friday, June 26, 2015

Current Trends in Business Sales

This article was written by Peter Siegel MBA- Founder And Administrator of BizBen.com, reprinted by permission

The total of 5,120 small and mid-sized California businesses sold so far this year is the highest number of completed transactions through the first four months of any of the past seven years. The information, posted by the BizBen Index, also notes that last month's count of 1,193 transactions represents the most April business sales in the state since 2010.


Two key factors responsible for the strong improvement in California's business for sales marketplace include improved availability of business purchase money loans and a growing sense of optimism among buyers and sellers, as the economy continues to improve. Californians are more willing to go ahead with plans involving business transfers when they notice lower unemployment and a boost in the profits and value of the state's large corporations and technology companies.


A third reason for the improved rate of business sales can be attributed to increasing use of creative business sales strategies as buyers and sellers learn about ways to overcome obstacles that might have prevented them from completing their deals over the past few years. Among those smart strategies are transactions incorporating earn-out provisions, alternative methods of financing, such as buyers assuming some of the seller's obligations to vendors, and inventory consignment plans allowing the buyer to delay payment to the seller for inventory items until they are sold. Some of these and other innovative strategies are reviewed on BizBuyFinancing (business purchase financing assistance) http://www.bizbuyfinancing.com


Large County Sales Growth
Some of the largest Southern California counties posted higher business sales totals last month compared to April of 2014. The count of 300 transactions involving Los Angeles County businesses represents a 12.36% increase compared to the 267 sales completed in April of last year. Orange County's sales total was 132 last month, a gain of nearly 6.5% over the 124 transactions posted the previous April. The sum of 78 completed transactions posted in San Diego County last April increased by about one-third to 103 sales last month. The April-to-April sales total nearly doubled in San Bernardino County to 59 deals from 29 in April 2014.


Among the largest Northern California counties posting strong sales increases last month are Santa Clara County with a total of 66 deals last month vs. 56 sales in April of last year, and San Francisco County posting 52 sales in April 2015 compared to 36 the previous April.


The total California business April sales stats by county recorded last month, available at http://www.bizben.com/stats/stats-monthly-apr.php are: 


Alameda: 44, Butte: 12, Contra Costa: 29, El Dorado: 4, Fresno: 31, Imperial: 13, Kern: 13, Lassen: 1, Los Angeles: 300, Marin: 9, Merced: 3, Monterey: 15, Napa: 4, Nevada: 1, Orange: 132, Placer: 16, Plumas: 1, Riverside: 48, Sacramento: 26, San Bernardino: 59, San Diego: 103, San Francisco: 52, San Joaquin: 22, San Luis Obispo: 21, San Mateo: 21, Santa Barbara: 19, Santa Clara: 66, Santa Cruz: 10, Shasta: 10, Solano: 3, Sonoma: 34, Stanislaus: 12, Sutter: 7, Tehama: 1, Tulare: 22, Tuolumne: 1, Ventura: 20, Yolo: 8


Sales totals posted by California county over the last nine years are available at: http://www.bizben.com/stats/stats-total.php


The BizBen Index has been collecting and reporting information about small California business sales for 17 years to help business owners/sellers, buyers and the professionals participating in this market make informed choices and achieve success.

The California Paid Sick Leave – A Brief Reminder

image This article was written by Robin Noah, SCORE Orange County Business Mentor

If you do not have everything in place for processing the new Paid family Leave Act here is a reminder. July is just around the corner.

Most California businesses are aware of the new law for businesses with operations in California passed Sept. 10, 2014. At that time Gov. Jerry Brown announced that California employers will now be required to give part-time and full-time workers at least three days of paid sick leave per year, starting in July 2015.This leave is not to be confused with the Paid Family Leave act.(See note at end of article)

As the July 1 deadline approaches employers need to be prepared for meeting the obligation of the benefits under the new mandatory paid sick leave law tilted The Healthy Workplaces, Healthy Families Act of 2014.

Employers need to be prepared for administering the new law. They are:

· Required to post a paid sick leave poster that advises all employees of sick leave rights and is in a conspicuous location. Willful failure to post can result in a penalty of one hundred dollars ($100) for each offense.

· Provide written notice of the paid sick leave to all new hires from January 15, 2015 and existing employees covering the basic points of the law.

· Understand that an employee may accrue and use paid sick leave and may not be terminated or retaliated against for using or requesting the use of paid sick leave and has the right to file a complaint against an employer who retaliates.

Payday Notices have to be updated with each payday notice presented providing the amount of paid sick leave available to the employee. If you use a payroll service make sure they are ready and understand the issues regarding paycheck stubs.

There is a lot more information available in the internet. One resource is the Q and A athttp://www.dir.ca.gov/DLSE/Paid_Sick_Leave.htm

If there is an existing paid sick leave policy in place and it is modified prior to the July 1 operative date, to comply with the new paid sick leave law, an employee notice regarding the change must be provided within seven days of the effective date of the policy change.

Any separately written documents to be presented with the payment of wages should be consulted with a labor law attorney, including any policy documents.

Recordkeeping: Retention of records that document Paid sick leave activity is required for at least three years including:

     1.   Number of hours that the employee worked

     2.   Paid sick days accrued by an employee

  1. Paid sick days used by an employee.

Failure to maintain adequate records establishes a presumption that the employee is entitled to the maximum number of hours accruable – unless the employer can show otherwise by clear and convincing evidence.

NOTE: California's Paid Family Leave (PFL) insurance program, which is also known as the Family Temporary Disability Insurance (FTDI) program, is a law enacted in 2002 that extends unemployment disability compensation to cover individuals who take time off work to care for a seriously ill family member or bond with a new minor child. Benefits equal approximately 55% of earnings and have a maximum per week.

The Paid Family Leave program is administered by the State Disability Insurance (SDI) program of the Employment Development Department. Benefits commenced on July 1, 2004.

Editor’s Note:

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Buying Into The Senior Care Industry: Opportunities Worth Looking Into

This article was written by Peter Siegel MBA- Founder And Administrator of BizBen.com, reprinted by permission

     

It's no secret that Baby Boomers are changing our economy in many ways and predictions about how our aging population will impact the future keep rolling in.  From a small business perspective, the aging population in the U.S. presents a tremendous business opportunity for an Entrepreneur looking to get in to the senior care business.


Now as I've said in previous posts, this business and industry is not for everyone. While the numbers typically look good and this industry is thought to be recession proof, the truth is in order to be an owner-operator in a senior care business you need to be passionate about the service you provide.  So before you even consider what opportunities are available, think about what your role will be in the business and if it means working in a hands-on capacity you need to be honest with yourself as to whether or not this type of work is for you.  If you get past that, here are some opportunities that you can pursue to buy into the senior care industry.


Pharmacies

Buying a pharmacy is probably something most don't consider an opportunity in the senior care industry but it actually is. As more and more seniors are given prescriptions to stay healthy, the need for pharmacies remains steady. While big chains and grocery stores do hold a big portion of the market share, statistics show that independent pharmacies still comprise the largest segment of the retail pharmacy market.


Is this opportunity right for you?  If you are already working as a Pharmacist or in school to become one, it could be a great time to consider buying a pharmacy for sale.


Senior Helpers Franchise


In most every industry you can find a franchise opportunity and the senior care business is no different.  The Senior Helpers franchise is another way to get into this industry with the support of a franchise system behind you.  Senior Helpers provides in-home senior care which allows their clients to stay in the comfort of their homes but assists their family or caregiver in managing the day to day demands of an elderly relative.

The initial investment for a Senior Helpers franchise ranges from $80,000 to $104,000 and they require an ongoing royalty of 5% of your gross sales.  In order to qualify for a franchise you must have a net worth of $450,000 and $100,000 in liquid assets.  The business does not require a large office space and can easily operate in facility that is 800 to 1,000 square feet.


Is this opportunity right for you? If you meet the minimum financial requirements, this could be a great opportunity for just about any Entrepreneur.  While some of their successful franchisees come from a nursing or medical background, there are others that come from more of a business background.


Residential Facilities


Buying a residential facility is one of the most common things people think of when they are considering the senior care industry.  Residential facilities can be very profitable but that comes at a cost as this is a business that runs 24 hours a day, 7 days a week and it does not break for holidays.  You have to be prepared for that type of time commitment and understand the staffing demands of an operation such as this.


Is this opportunity right for you?  In my experience, people that are most successful in running a business like this have some sort of medical background.  It doesn't necessarily need to be in providing hands-on medical care but it is certainly helpful. As the owner you'll be responsible for making sure that the proper care is being delivered to your residents. 

 
In-Home Care Services


Much like the Senior Helpers franchise, there is also the option to provide in-home care services on an independent basis. In-home care can range from everything including actual medical care to helping with errands, laundry and other household chores.  There are also some in-home care services that just provide companionship.  The nice thing about an independent business like this is that it could most likely be a home-based business that doesn't require office space or a lot of overhead.


Is this opportunity right for you?  If you plan to be an owner-operator you must have a desire to work with the elderly.  If you don't truly care about their health and well-being you won't be successful in this business.


Hospice Services


Many people don't even realize that for profit hospice businesses exist but they in fact do.  A Hospice business typically provides end of life care to patients who are terminally ill and opted not pursue further treatment.  Hospice services are brought in to make the patient comfortable and assist family with their care throughout their last days.


Is this opportunity right for you?  I'll admit this is a tough business to be in.  While research shows that it is in demand and that the need for these services will only increase, you have to be very compassionate and be comfortable with being around clients who are going through a very stressful time.