The secret behind the establishment of solid, long-lasting and productive relationships in the business world is the ability to exert influence without appearing to be trying to exert authority. Not surprisingly, key account management training should help to show you how you can exert influence in any relationship, but should definitely focus on the amount of time and effort that you need to put into preparing, before you set out to engage with the prospect. The field of pharmaceutical sales can be more like a minefield, as the sales representative tries to bring a particular product to the attention of the end-user. Powerful forces can be at play and often a diverse set of emotions come to bear on any decision, so that the sales representative has to be armed with a lot of preparatory work before he or she can expect to attain success.

Many healthcare professionals, pharmacists and practitioners have become rather jaded, often as a consequence of saturation, overkill and poor sales and marketing techniques. It is safe to say that the average professional does not look forward to meetings with pharmaceutical reps, which can be all too frequent. The rep has to tread very carefully, so that the right amount of influence is shown without any undue pressure or posturing.

Comprehensive pharma training must be provided by consultants, so that the sales representatives under their charge are well aware of the meaning of preparation and go into the field with ultimate confidence. You have to know what your endgame is and what you want to achieve, very clearly. Every client is different of course, but the representative must know how to differentiate and approach from a different angle, even if the product is essentially the same. The professional may have many different ways of saying “no,” but the rep has to be prepared and be ready to assert the position without appearing to be dominant.

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. All this work will pay off as you will end up making a position of trust, an essential prerequisite, as 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.

Some enterprising individuals are put off by the thought of buying an existing business for sale, as they see it as a veritable leap into the dark. If they have never been involved in such a transaction before, it can seem to be very alien. Most of us are used to engaging in transactions where we buy a tangible product like vehicles or houses and in these cases “what we see is what we get.” To value a business correctly, you need to look at a number of different intangibles as well as assets that need to be inspected and you also need to consider goodwill in many situations. In a service related business, goodwill and a maintainable client list can be critical elements, but the process of due diligence involves the revelation and exploration of numerous areas and documents.

It’s important to remember that there are two distinct and different viewpoints. The seller will have a clear indication of the worth that he or she places on the business. Expect to see a certain amount of natural enthusiasm, as a lot of hard work and dedication has undoubtedly been put into the business by the outgoing seller. While you should always maintain an element of respect for the sellers’ point of view, you must look at all documentation and evidence in the hard light of day and understand that it is up to you to determine if you should buy business interests according to the specific value you set.

After you decide you need to move forward and you have really determined whether you want to buy a business of interest, get ready for a very lengthy process. During the entire process you must maintain a level of common sense and good humor and be prepared to cultivate a strong level of communication with the seller.

This is where expert advisers will come into their own and if you have no real experience with this kind of business, its related market or niche, utilize proven resources and get as much help as you can. This is not to say that you will simply hand off all the work to these advisers, barely looking at the documentation presented to you, as the decision-making must in the end be made by you and you alone. The financial documents and all of the paperwork must be reviewed by you first to be sure that you have a great feeling initially before you hand them over for further processing by your experts.

A red flag will be raised if some of the financial documents are incomplete, information is missing, or they are poorly balanced or even not reconciled. Accounting traditions and precedents must be maintained at all times. Don’t be surprised if the seller will ask you to sign a non-compete and/or non-disclosure document before any financials are made available to you, because these financials are nevertheless the rock upon which the entire business is set.

Each and every operation is different in its own right and no two businesses are the same. There are so many different events that can come to bear to create such a variety of external influences and situations at any time. Expect to uncover some unusual facts and figures or surprises and remember that, while industry benchmarks are interesting, a lot of the information you discover here will be a function of real-world activities.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.

If you have not engaged in something like this before, buying business assets can be quite a daunting prospect. In many respects, starting your own operation from scratch can be more difficult, but understand that here, you are taking on the liabilities of somebody who you do not know, essentially! You can certainly reveal many of the inner workings of the business for sale and consult numerous documents to help you understand what it is all about, but you must be able to read between the lines, and this is exactly why you need a due diligence checklist.

While a majority of business owners are enthusiastic and diligent people, have put a great deal of effort into their creation and would love nothing more than for the business to be continued and nurtured by a careful owner, you can never assume that this is the case. Please don’t think that this means you have to assume the worst in all cases, but it does unfortunately mean that you cannot take any statement at face value and you must look for proof in all cases to back up claims made. Always ensure that you employ the services of expert analysts as required when you buy a business, including accountants, financiers and business experts.

Here, your primary purpose is to set a value. Undoubtedly, each of the parties – the buyer and seller, will have a different interpretation of the value of the business. The deal is only consummated when both parties are happy, but remember that it is up to you to determine the specifics under which you are willing to do the deal.

If you buy a business, a number of steps have to be taken as you go through your due diligence checklist and as you proceed, all the inner workings of the business will be revealed to you. Never rely on industry benchmarks, even though they may be useful for your information gathering purposes. The most recent financial documents are of the greatest importance and they should never be glossed over even though you have very many documents to check through. Never be tempted to gloss over some of the less palatable financial figures, if a specific business asset appears to be of particular interest to you.

When you’re looking at the value of a business for sale, some of the more important factors include the scale and the level of services available, the potential for business expansion, the age of the organization and the reputational impact in the marketplace. Get a good impression of the competition in the industry and in the local area and understand that location may be the most important asset of all. You may be considering purchasing an Internet-based business or one that does not have a “bricks and mortar” location. While the physical location in this case may be of no consequence, make sure that you understand the importance of conducting a thorough “due diligence” process, come what may.

Reveal as much as you can as you work through this process and understand how important your due diligence checklist really is. If part of your due diligence process involves the analysis of daily operations, staff behaviour, client interaction and so on, this will invariably take many days if not weeks. As such, you should never be overly anxious to go ahead to close a deal and should be prepared, rather, for the lengthy process you are likely to endure.

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.

In times gone by a gas station has often been seen as a very lively investment, certainly when gasoline was a relatively stable commodity and the price was low, especially in the USA. In the past, there wasn’t so much pressure to cut down on oil sales or to be selective in our energy use, due to carbon emissions and consequent global warming effects. As time has gone by we can see that conspicuous energy consumption is no longer permissible and the run-up in gas prices in recent years has turned our focus toward hybrid or electric vehicles. Nevertheless, it seems clear that as a society we will still rely on gas for our vehicles for the foreseeable future and as we develop, the typical gas station has become more of a convenient destination for a variety of other services and products as well.

This business type is very reliant on its location, which you must bear in mind when looking for a gas station for sale. You might think that the value of the location is obvious, but if you talk to local authorities before you go too far, you will be able to see if events such as road construction would factor into your equation, or whether certain environmental issues need to be addressed including storage tank upgrades, or if there have been past issues with litigation. If you’re not careful, your income potential could be decimated!

It’s certainly true to say that gasoline sales by themselves may not represent a significant margin potential, so to value a gas station when you’re looking to buy a business, you may often rely on ancillary sales and other products or services. If the location you are looking at is not so advanced in these respects, consider the potential. Could you enlarge or install a convenience store, or license it out to another organization to handle it for you? Is it possible that you could build a very good quality car wash on the property and achieve revenues this way?

To buy gas station business assets successfully, note that operations that are known to be full service (gas, car wash and c-store) will generally command up to three times whatever the owner benefit figure is. Owner benefits can be made up of salary, profits, any perks, while adjusted for interest, depreciation and any other capital expenditure that you might have to make. If a simpler establishment is of interest to you, for example maybe due to its potential, you might expect to pay just one or even two times the owner benefits.

Pore over your business financials, your supplier contracts and make sure that you have adequate discussions with any landlord involved. Be careful when talking to the landlord, as they may often try to ensure that the incoming new owner is fully able to make the business a success, before doing anything!

Keenly observe what is going on at the gas station during the process of observation. You should be especially wary if the owner appears to be working “hands on” for long periods of time. Also make note of any family members putting in a lot of effort as they may be being paid under the table, or below market, or not at all and you may have to recruit paid staff to do their jobs when you take over. Observe key periods of time during the week and get good traffic and headcounts, so you can extrapolate the potential well as you prepare a potential offer.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.

Maybe for the first time, the pharmaceutical company can no longer depend on the phrase “bigger is better,” as it once was the case that the more people who heard the message, the greater the return. At one time, pharmaceutical companies used to look at each other and judge effectiveness based on how big the workforce was, as more volume would undoubtedly lead to enhanced revenue and a more than fruitful rate of return at the bottom line. However, in many respects this approach has led to saturation in the market, even as the market itself changes its characteristics. Today, much more emphasis must be placed on marketability and the promotion of niche products, with an accompanying rise in demand for specific training, rather than the use of a ‘broad paintbrush’ to accomplish everything. Sales force effectiveness is coming under scrutiny like never before, as it is realised that an oversized sales force could not only be neutralising, it could be detrimental to the success of the company.

These days, pharmaceutical sales training falls into two definite categories — education relating to the product itself and technical training in the area of sales and marketing technique, with the emphasis on the latest cutting-edge approaches. While the salesperson must always be focused on “winning,” it is not acceptable to approach the art of landing a sales contract at any cost. Rather, a new contract value is also reliant on its position in terms of logistical benefit and strategy, quite apart from financial measurements. It’s quite possible that a profitable sale, when viewed narrowly, could be far from as beneficial when all the other factors are taken into consideration.

These days there is not so much difference between success and failure, as margins are so thin and therefore sales force effectiveness is a highly important metric. Experienced consultants should be engaged to help in this facet of pharmaceutical sales training, to increase productivity, cut expenditure and boost morale among the sales force. Motivation is a very delicate subject and is far from just the provision of relevant financial bonuses for the salesperson. Indeed, sometimes financial compensation is not a primary driver and the organisation must be able to determine what really pushes each individual on the sales force. More often than not, a goal must not be infinitely achievable, or the sales person could be subconsciously held back as progress is made.

Sales force effectiveness can have a high impact on not only volume, but thin margins and high costs, so individual performance can have a ‘knock on’ effect in other areas. An organisation can start by assessing its current situation, looking at the metrics used to determine success or otherwise and how these very metrics may, by themselves, be contributory to the problem. Correct sizing of the sales force is so important, with territorial allocation and parameters such as “share of voice” optimised. How many sales calls does the salesperson make on any given day and is an inordinate amount of time spent travelling or on other non-productive activities?

Every moment that a salesperson spends with the client, whether detailing or otherwise, should be optimised as part of a revised approach to key account management training.

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.

Are Business Promotions and Company Incentives Beneficial for your Company?

With the increased challenges that all companies are faced with, many firms have implemented assorted initiatives to grow company earnings and shareholder value some have discovered the strategic price of company awards and company gifts.
From the boardroom to the frontlines to the client across the country, company awards and gifts offer numerous benefits to enhance performance. Not only are you showing your appreciation to the employee or customer, you setting a standard of thanks for the difficult work and dedication.

Corporate Awards Benefits : A company’s success depends on its employees and their capabilities. With the incentive of a company award or company present you attract and keep current employees to pursue for more at work. Company awards are good for :

Direction
Talent Retention
Sales Goals
PR
A Direct affect on the firm’s’s bottom line.

points to think about when giving a company Award : how often do you give the award? Most firms have a yearly corporate dinner or function where the years company awards are given out. This would be the best time to show your appreciation.
What sort of recognition are you wanting the award to represent? You definitely want to make this award stand out and make it represent the sort of difficult work that was accomplished. What kind of statement are you wanting to the company award to make? You want it to make it so that everyone else will battle for that award next year. A statement shows gratitude but also envy.

From the small business to the major corporation, company awards will have an increased performance level. No company should deprecate the power of company awards. Your business will gain a critical view of your operations and challenge to improve the business and company as a whole.

Benefit}s of company gifts : As major holidays are approaching, many corporations will be brooding about giving your clients ( and most likely employees ) corporate gifts. Sending corporate gifts does not always need to be thought about in the holidays. Many other occasions such as referrals, completion of a project, customer’s birthday or possibly even a business anniversary can be acceptable times to send apresent. When sending the present, ensure that you add an individual touch, as this can go a long way. Include a hand-written note, or wrap the present yourself. You may even present the present in the flesh to give it that additional touch. There are not a lot of do’s or don’t when sending a corporate present but the key is to make sure that the added touch is there to show the individual that you are thankful for whathas been accomplished.

Corporations should not belittle the power of business awards and gifts. Not only do corporate awards show true appreciation, it makes other staff try to become a standout in their field. Sending corporate gifts also reassures your thanks to the employee or customer that you appreciate the difficult work and dedication that it can take to run the business. These kind gestures will not only build your relationships nonetheless it will help you build the company by utilizing its maximum potential.

There’s a great deal on the line, as it is estimated that $25 billion per year is spent on marketing pharmaceutical products to healthcare professionals. Understandably, a substantial amount of interest has arisen in the methodology used and the tactics employed by pharmaceutical companies as they deploy their sales organisations to contact and influence professionals. Indeed, some advocate that the industry should be more tightly regulated and the U.S. Congress has been strongly urged to take an in depth look at how business is conducted in this arena. This just goes to underline the professional and highly focused approach that the pharmaceutical company must take as it seeks to interact with the very people who are responsible for buying its products in sufficient numbers to ensure the long term success of its organisation.

There are a number of countries around the world that have actively regulated how pharmaceutical companies can interact with professionals and introduced legislation accordingly. For example in Australia, codes of conduct have been established, with ethical marketing standards implemented and all member organisations must comply with the clearly laid out requirements or face legal action.

Pharmaceutical sales executives spend a large proportion of their time “detailing,” which refers to the act of visiting professionals and explaining the concept of the product, the reach, suggested markets, dosage, availability, side effects and other general industry news. Their communication skills must be absolutely excellent and sales executives must be able to systematically break down barriers that may have been built up over years of suspicion. Having said that, a sales executives is pivotal in bringing some vital information to the professional and supplementing the level of education. The pharmaceutical company must pay a great deal of attention to these methods of marketing.

If additional new regulations or restrictions develop in the near future, this would put even more emphasis on the need for effective marketing by the organisation. A company should engage pharmaceutical consulting firms due to the fact that they have direct experience and can as such help to train and educate the sales force so that they do not stumble at a vital time, make mistakes or negatively interact with professionals and spoil any potential gains.

It may be necessary to disclose all types of interaction, any hospitality provided or suggested, any gifts or assistance given and the very nature of the education disseminated. Not only will it be necessary for the sales executive to be highly educated in the product itself, fully understanding of restrictions and implications, but the executive must also be fully able to market to their highest ability.

The majority of pharmaceutical consultants dedicate a lot of their time to providing the correct balance between product awareness and marketing and to training methods as well. Time management is an essential skill required and staff must be trained to make best use of it, just as traditional marketing skills must be a point of focus and any latest developments or new legal requirements included. Company chiefs should outsource these methods to pharma consulting, enabling them to focus on other areas. With ineffective marketing, reputations can be compromised and there can be other implications, including problems with regulations and authorities; consultants must steer the organisation carefully.

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.

So much is at stake, that senior management should really focus on the organisation of the company’s sales force, being fully aware of its effectiveness and be ready to make changes whenever necessary to maximise performance; it’s not acceptable to take a back-seat approach to this type of organisation any more, if a company is to survive at all. With the typical cost of a sales call estimated to be anywhere in the region of about $400 or more, a lot is at stake if the sales executive is not being as efficient as possible.

A good sales executive must be well trained when it comes to the intricacies of sales closure, should have high class communication skills, be a people person and self-starter, but if poor methodology is used by the pharmaceutical company employer, all these skills can be put to waste. Look at what’s at stake – poor deployment could mean the difference between merely surviving or enjoying the many benefits of the company’s ongoing endeavours.

By leveraging existing assets, a pharmaceutical company can reveal significant potential improvements, “across the board.” It’s amazing how small improvements in significant areas can result in big profit gains. To the untrained eye, the sales force may appear to be effective, but highly skilled pharmaceutical consultants will be able to see how inefficient they really are and can advise the organisation in all the various areas necessary for improvement, helping it to move forward.

There are many different fundamental aspects to sales force effectiveness. This requires a focus on optimisation – of the workforce, of individual efforts, of sales territories, altogether, as one whole. A pharmaceutical consulting firm knows through experience how important it is to optimise, drawing on experience gained in business over all the years, through case studies and by an ongoing review of policies, procedures and advancements. No longer is sales force optimisation an exercise to be conducted with pen and paper, but rather digital products and software solutions should be engaged with potentially powerful results. While plans are being incorporated, internal intelligence should be brought in and everything incorporated prior to the actual launch.

Looking back, workload allocation data from previous seasons and historical performance charts can help to reveal the optimum size of the sales force. This should be engaged with market conditions, both current and projected and also fine-tuned according to the company’s product mix and plans for expansion.

Generally, pharma consulting covers many different facets and, of particular interest to the company, should help to reveal the best time management practices for the freshly optimised sales force. Schedules must be optimised as keenly as possible and each individual within the sales force should be trained to ensure that they take advantage of every block of time available, while supervisory staff are able to track, compare and advise accordingly. After eliminating potential overlaps and unbalanced workloads, the focused sales team can be ready to get out and work, using their new-found skill set and internally produced intelligence to overcome the competition. The cost of a sales call is only going up, so it only makes sense to rein in these costs as much as possible.

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.

Some people would say that it can be very difficult to determine the ideal amount of time needed to close a sale, due to so many external influences, but a sales executive should be primed to move the prospect on to the next stage in any effective procedure. This may not necessarily signify a sale, but there must be either a “yes” or a “no,” and never a “maybe.” Everyone’s time is very valuable and important in these situations, and the executive should be trained to note the subtle responses, language and tone from the prospect, so that he or she knows whether it’s time to move on to prospects who have better potential, or not. Effective implementation requires the sales executive to pay particular attention to time management and this extends to the time actually spent face-to-face, as well. Many advocate that the time spent with a potential prospect face-to-face is the most valuable of any sales executive’s day, requiring that all “non effective” time spent on administration and other issues be contained, but remember that not all of the prospect’s time can bring a “result.”

Outdated sales tactics have no place in the modern healthcare and pharmaceutical arena. So much is at stake here, as the professional healthcare provider needs to cut to the chase and be in possession of all the appropriate facts. Sales people who are at the top of the game realise that they need to build customer relationships first and foremost and always over deliver, rather than trying to focus on closing sales according to textbook concepts or the analysis of a prospect’s personality. It’s important to get to know the specific worries and needs of the customer and to use experience and ability to devise a way to assuage the client’s issues. It takes a long time to build up the trust and rapport with a client, and it can be easily removed. Other representatives of other organisations may also be vying for the interests of a particular client and there is much to be said for open, honest and frank relationships rather than the implementation of spin tactics.

The ultimate objective of a sales executive is of course to close a sale, but all the background work must be completed carefully involving an investigation of how a company could help a professional, rather than pitching a product. Always ask the right questions and spend as much time as necessary considering what these questions should be. Get the professional to open up and provide information upon which to base the next pertinent question, and through a process of problem solving such as this, the company will be many steps closer to that important sale and to improving the effective implementation ratio.

At present, pharmaceutical consultants understand how important the implementation ratio is and how much the parent company invests in the cost of its sales team. Generally, pharmaceutical consulting firms can help to elevate these ratios by taking time to train the sales force in the dedicated and specific techniques required to succeed. As a rule, pharma consulting aims to bring out the best potential and allows the company’s senior people to focus on product development and other essential areas.

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.

If you’re in the market to buy liquor store business, keep in mind that the process of due diligence goes far beyond simply an assessment of the presented financial documentation. You need to be able to access all the files and records, review information and research personnel as you review what you’re being told. It is recommended that you allocate at least four weeks for this process and do not be tempted to rush to judgement. There are a surprising number of issues which may only become apparent over a span of time, so always keep this in mind and proceed cautiously.

There are several points that you can give your attention to with regard to buying a liquor store business before you actually decide to immerse yourself completely in your due diligence process. While you’re likely going to have to do a great deal of number crunching and leg work as you press on ahead, is there anything at this point which you have come to understand about the industry, about this business in particular, its owners or its location so far that has given you pause, causing you to second guess yourself? If for instance, you’ve already seen that the financial documents are incomplete for reasons stated by the seller, or the general condition of the store or its assets aren’t to the standard you had been led to believe, inventories are not complete, certificates, inspections or licenses are compromised for whatever reason – all are very good reasons for you to move on and start looking for a better investment elsewhere.

For a process of due diligence to be complete, you will need to concentrate on seven different areas:

1. The Premises.

We’ve already covered the crucial importance of allocating not less than four weeks to this endeavour, and you should reach an agreement with the seller for this set period of time so that you can personally observe the day-to-day operations of the business. First of all, you’re going to need to assess the inside and outside of the place of business and figure out a rough estimate of what you might need to pay out to replace, repair or upgrade. Remember that the attitude of the staff is very important in the retail business and you should immediately assess how the existing staff interact with clients. Are they generally friendly, attentive, and prompt as well? Personal issues or conversations should not be apparent. Ask yourself whether the store looks good, has a good ambience, appears fresh and clean, has well-maintained restrooms and break areas and is generally spick and span.

You must also ensure that you are happy with the general location of the business, the surrounding stores, the type of people who frequent the area, the accessibility and especially beware of any pending major road construction in the area as this often has a significant bearing.

2. The Financials.

As a minimum, you will need to review the profit and loss statements, the balance sheets and tax returns. You would do well to employ the services of an accountant who is experienced in the liquor business to help you here. Look at all the supplier invoices and reconcile them to revenues. This may be a time intensive process but you will be able to determine your margins this way. Be very aware of any transactions that involve cash, especially if it involves your suppliers. You will need to get written confirmation from the suppliers of their ongoing terms.

Remember some of these industry benchmarks:

• gross margin should be between 24 and 28%.

• rent should be 7% of revenue maximum.

• product mix should be up to 70% liquor or up to 40% wine.

• labor should represent 5 to 7% of revenue.

• net profit should be 8 to 12% of revenue.

• inventory should be turned over between eight and 10 times per year.

3. The Equipment.

All equipment and furnishings should be in adequate working order and not in immediate need of repair or replacement. As such you should review all the maintenance and service records and look for yourself to see if all refrigeration cases are clean and well-maintained and all other equipment is well looked after.

4. Vendor Agreements.

Your wholesalers and suppliers are absolutely essential when you purchase liquor store business assets and you must get to know them well during your due diligence. Can arrangements be transferred to you or will you have to make new ones? You do not have to be prepared to settle with the existing suppliers or vendors and you should really investigate as many options or opportunities as you can. You may, for example, see better terms elsewhere and this knowledge will be great ammunition when you come to negotiations and peace of mind.

5. Lease Contracts.

Always be sure the lease is transferable or that there are no obstacles ahead of you. You must be able to assume or acquire a long-term lease before proceeding.

6. Operations.

It is likely that you will need a number of licenses and this should be a particular area of concern when it comes to a liquor license. Sometimes these may not be assigned or transferred or other onerous terms may be set by jurisdictions.

Go through the daily procedures from opening time to closing time; who has access to keys and alarm settings? Does the business have a procedure for emergencies of any kind? Ask the seller to provide you with an optimal inventory level. Ensure that you review all insurance certificates and be adequately covered for all eventualities. You will need to talk with credit card processors and merchant banks and be prepared to move to access better rates if necessary.

7. The Employees.

As this can be a significant cost and liability area, be focused here. Check each member’s compensation, especially if there’s any possibility of cash being paid “under the table.” If you see that there is a high turnover of employees, ask yourself why. Is there a procedure in place for training? While the seller will often be wary about letting his employees know that the sale is in process, you nevertheless need to analyze each employee individually, assess their loyalty and competence and adjust your plans accordingly. Understand that certain procedures may be quite traditional to them and you should ask yourself how you feel they will react if you need to make significant changes. If one or more employees are absolutely critical to your success, you will need to meet with them prior to consummating a contract.

When you find a liquor store for sale, if you conduct your due diligence correctly you will have the opportunity to see exactly how the business ticks, and you won’t be in for any surprises when you take over.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.