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The Restaurant Business – How to Increase the Sales

Written on February 20, 2012 at 9:51 pm, by

You own a restaurant. You may have been wondering if you are maximizing your business’ potential. The answer, unfortunately, is “probably not”. The restaurant business can be tricky and full of moving targets, but the good news is you can learn how to increase the sales of your store right now based on the latest research from Technomic. According to their recent survey on the most influential factors prompting a consumer to eat at a given restaurant, Technomic has produced a list of the top ten items customers look for. What is boils down to is this: Fast-Casual Restaurants are the clear winners. You may or may not agree with results, but understand one thing–these are your customers talking, and you would be well advised to listen!

“Full- and quick-service operators continue to adapt and reposition their concepts toward areas in which fast-casual has been effective with consumers,” added Technomic Executive Vice President Darren Tristano. “This shift will likely blur the definition of fast casual in the eyes of consumers and increase competition in the segment.”

Here are the ingredients for How to Increase Sales in the Restaurant Business:

1. Food Quality: This should be a no-brainer. No one likes to go to a restaurant and be served garbage. If customers wanted leftovers from yesterday’s dinner, they could have just stayed home and ate on the couch.

2. Fine Ingredients: Once again, customers expect the food served at your restaurant to be made of better ingredients then they typically use at home, and they should. Unfortunately, some restaurant owners feel the need to lower food quality because sales may have slipped temporarily, but this ends up being a “self-fulfilling prophecy.” The more you try to save, the fewer customers show up.

3. “Fitter,” Wholesome Food: With all the hoopla surrounding the “fattening of America”, customers want choices that make them feel better about themselves, but taste great at the same time. The days of serving the One-Pound Burger & Mountain-o-Fries Special are dwindling, and dwindling fast.

4. Fresh Ingredients: If you have ever watched “Kitchen Nightmares” with Chef Gordon Ramsey, you’ll know this is a must-have for anyone serious about the restaurant business. All it takes to lose a lot of future business is one moldy bun or a dinner salad with wilted lettuce. Word travels fast in the restaurant business, especially these days with social media, and you’ll find yourself with an empty dining room faster then you can say “I’m screwed.” My wife can taste staleness a mile away, and if she detects it, she’ll never go back to that restaurant again!


Wholesale Kitchen Equipment

5. First-Rate Decor: Eat at your restaurant as a customer once in a while, and look around. Nobody wants to eat in their Grandma’s kitchen, with tired wall paper and dusty pictures on the wall. Consumers want to know the owner cares enough about their restaurant to keep it up-to-date, because if you keep the decor fresh, chances are the food will be fresh, too!

6. Fair Price: With the economy the way is these days, nobody is going to be plunking down a ridiculous amount of cash for food, just to say they did. That doesn’t work anymore–you don’t hear people bragging about how much money they paid for a meal, unless they’re bragging about what a great value the meal was. Be reasonable with you prices, give your customers a good value, and you’ll go far!

7. Fast Service: If you haven’t noticed, the pace of life has accelerated. Consumers don’t like wasting time on anything, and that includes eating. If you still think people want to relax with a meal stretched out over a couple of hours, then the 1970′s is calling…and they want you back!

8. Friendly Employees: Your hosts and servers are the front line of marketing for the restaurant business. It would behoove you to have regular meetings and/or training sessions on customer service, because exemplary customer service is what will keep you alive. Loose that, and you’ll lose your shirt–guaranteed!

9. Flexible Offerings: Today’s consumers are used to being able to get what they want, and NOW! Look at how everyone uses the internet, smart phones, TV, ipads, etc. The world is at their fingertips at all times, and not allowing customers to pick and choose what they want in your restaurant is absolutely going to cost you sales (and customers). Design your menu to allow for different options with all offerings, and you’ll greatly reduce the ammunition customers need for complaints.

10. Full-View Preparation: Consumers don’t like not being able to see the people preparing their food. With too many horror stories circulating about “what happens behind closed doors”, everyone feels more comfortable seeing the professionalism of the kitchen staff out in the open. Be proud of what you do and don’t be afraid to display it. If you aren’t proud of what’s going on in the kitchen, then it’s time for some changes!

These ten tips will absolutely help you learn how to increase sales in the restaurant business. Take them to heart, be honest with yourself about what you need to change, and you will realize more success! For further information, we also offer small business insurance, marketing, and general resources!

Customer Service, Restaurant Business , No Comments

Capital for Small Business is a Mess

Written on February 16, 2012 at 4:59 pm, by

If you have been searching for capital for small business ventures, then you are most likely frustrated and I feel your pain! The government said the Great Recession was over in June 2009. Yeah, right. Unfortunately, we’re at year three and still counting for very difficult economic conditions for many people, and most business owners. It’s not just the protesters at Occupy Wall Street or in your local community; it’s every darn small business owner. So, why are we so mad?

For small business owners, large commercial banks got them into this mess and now they are keeping them from getting out. Bankers now have been getting lumped in with used car salesmen and lawyers. Large commercial banks that practiced unprofitable lending policies that were deemed “too big to fail” were bailed out by the federal government through the “Troubled Assets Relief Program.” While most of TARP’s $245 billion that it invested in banks has been repaid, the banks aren’t doing much with the profit. Then again, maybe “not much” is an understatement. Try absolutely, positively nothing.

Robert Eyler, professor of economics at Sonoma State University in Rohnert Park, Calif., provides troubling insight into the current state of banking. Prior to the 2008 recession, he states that banks had about $2 billion in assets that they had not lent out. Right now, they have $1.5 trillion on hand! For those seeking capital for small businesses, how does that make you feel?

“We Are Lending!” is a popular message in front of many banks these days. It prompts the small business owners to apply for a loan, even though realistically their chances of getting one is extremely low. Even worse, banks tease small business owners by advertising low interest rate loans. Banks used to lend money, not just charge fees to keep your cash or give out coffee, cookies and trinkets on Saturdays. Fortunately for you, I have an affiliate relationship with Prosper.com, one of the few capital for small business sources left! Prosper is a peer-to-peer lending platform, allowing borrowers to secure fixed rate, unsecured personal loans through a network of lenders for small business investment opportunities. Give them a try!

Paradoxically, owners seeking capital for small business need to prove they don’t need a loan in order to get that loan. You can all the money you want, provided you don’t need it! Without credit, it becomes very difficult for most small business owners to expand their companies, and that is exactly what the economy needs. Large commercial banks should be ashamed of how little of their available funds has been lent out in the past three years.


At the same time that banks are stockpiling cash, their fees are increasing on virtually everything. Public opinion recently prevented Bank of America from charging fees for using its debit card.

This triggered a response by small business owners to move their accounts to community banks and credit unions, including myself. Not surprisingly, in the retail banking sector, more customers are choosing Wal-Mart’s financial services over those of banks.

To be fair, the blame is not targeted completely on the bank executives. In an overzealous effort by the federal government to ensure that another politically-damaging banking failure does not happen, the FDIC imposed very strict lending rules. It makes it much more difficult for the banks to lend money for capital for small business, even as political leaders publicly push those same banks to do more with the SBA. New laws require the FDIC to establish minimum leverage capital requirements and minimum risk-based capital requirements for all banks.

Banks also make payments to the FDIC’s Deposit Insurance Fund based on total domestic assets minus the tangible equity of the bank. The FDIC determines new ratios of insurance premiums to assets, where banks with higher safety ratings get lower ratios. In other words you pay less if you lend less. That makes sense to me – NOT! In fact, the largest banks with $50 billion in assets are also now required to demonstrate to the FDIC how they would break up and sell off their assets if they were in danger of failing.

Small business owners seeking capital can no longer wait for the pendulum to swing back to the lending side of the ledger. The FDIC must take action to allow and instruct banks to make capital for small business available again. They could establish a fund for small business from the $20 billion profit that the federal government made from TARP. This “Small Business Relief Fund” would more than double the loans that are currently available through the SBA.

Some business, such as restaurants and gas stations, are on the lending “black list”, and the SBA won’t loan money on them under any circumstances. Pretty sad.

If small business is the key to a wide-spread economic recovery, the FDIC, the SBA and the federal government need to pay more than lip service to it. Large banks are still failing the economy and every owner depending on them for capital for small business.

In the end, owners seeking capital for small business need to approach their community banks (where I have had some success), credit unions, or investigate leasing programs (again, where I have had some success) in order to be able to grow. At this point, there’s nowhere to go but up! For more information on small businesses, simply click HERE!

Business News, Financing No Comments

How to Make it in Business This Year

Written on February 11, 2012 at 9:54 am, by

If you are tired of spinning your wheels with your business and getting nowhere, it’s time for you to commit to learning How to Make it in Business, and this year is the time to do it! The economy has been stagnant for a while, but that is no excuse for not being able to improve your business and profitability. All-too-often business owners use excuses on why they can’t do this or that instead of plowing ahead and improving, so let’s get to it!

How to Make it in Business Tip #1 – Evaluate What Worked vs. What Didn’t: The best way to see if what you done last year can be transferred over to this year is to look at what worked vs. what didn’t. Did you try any new marketing methods? What were the success rates? Did you target the right market or have the right offers? What did your competition do that was different, but better then you?

How to Make it in Business Tip #2 – Create a Marketing Plan: If you put this off last year, then no wonder why your business wasn’t as successful. By creating a marketing plan, you are setting yourself up to succeed, so take the time calculate the numbers into your business plan and write down where you see your business in the next 12 months.

How to Make it in Business Tip #3 – Develop a Think Tank: It takes more than one brain to think of creative and innovative business practices. Reach out and gather people who want your business to succeed as much as you do, as in vendors, reps, colleagues, and such. Create a “think tank” for business ideas for you to work off of.

How to Make it in Business Tip #4 – See Your Business as a Customer: We all know that it mainly monetary reasons that drive people to succeed in a business, but step back and think like a customer. Start developing a strategy that focuses on your customer’s wants and needs and the money will start flowing. When was the last time you went into your business as a customer and bought something? You’d be amazed at what you’ll see!

How to Make it in Business Tip #5 – Update Your Website: A basic website will not attract customers. Update your website so that it fits with the latest trends in 2012. Incorporate options that will make customer’s ordering process easier, such as a PayPal check out, or update your information. Basically, make the website user-friendly and fun to visit. Make sure you sanitize the website of any “date-stamped” material – nothing is worse then seeing a comment dated from 2008 when it’s already 2012.


www.1and1.com

How to Make it in Business Tip #6 – Focus on One Thing at a Time: Don’t overwhelm yourself this year, and set reasonable and achievable goals. If last year was challenging, this year try to focus on things that make you happy. Hire others to complete tasks that you know will make you miserable and focus on tasks that make you happy because when happiness is apart of a business, it is bound to grow and succeed, and you’ll have much more enthusiasm then before.

How to Make it in Business Tip #7 – Enjoy Life Beyond the Business: By putting in countless hours of work, you are only hurting yourself. Although putting in time to make your business successful is vital, it’s important to remember that you do have a life outside of it. Start exercising or creating more time in your schedule to enjoy the small things. This is probably my biggest challenge, so don’t think you’re the only one with this “disease”! On the flip side, if you have been enjoying life a little too much outside the business and it’s been slipping, get yourself back in the saddle and run the business the way it deserves.

How to Make it in Business Tip #8 – Appreciate Your Customers: Your customers want to feel appreciated for their time and money spent at your business. A business will succeed if it is in constant contact with its customers. Offer discounts or special offers in order to attract new and old customers alike. Start a loyalty program for those who are regulars, and reward them at certain purchasing thresholds.

How to Make it in Business Tip #9 – Use Technology to Your Advantage: Learn how to use social media in order to increase traffic to your website. Many people are part of some sort of social networking site, such as Facebook or Twitter. Also, utilize E-mail Solutions as this a great, affordable way to stay in touch with customers. Special ads or coupons can be sent on a weekly basis in order to attract business sales and traffic. You can also save loads of time by using resources like Restockit.com to order business supplies online, and save yourself the time and expense of making special trips to purchase items for your business.

How to Make it in Business Tip #10 – Keep Better Track of Expenses: A business will never be successful if the numbers never match up. See where you can make cuts so that you can provide more to your customers. A business needs to be constantly updated with new material, so keep track of your expenses. You should be reviewing your sales vs. expense numbers at least on a monthly basis, if not weekly.

How to Make it in Business Tip #11 – Incorporate SEO Content on Your Website: Consumers use Google to find information, but is your website popping up in the first page of results? You could dramatically increase your sales and ad revenue by incorporating SEO content on your website. Either write the material yourself or hire professional writers to help your site become a turn-to solution for people. SEO content is that in which certain keywords are placed within the text, so research your business niche to see what type of keywords are most popular. Research small business marketing more effectively!

How to Make it in Business Tip #12 – Get the Word Out: There are many advertisement sources in which you can use in order to promote your business. The Internet is a popular choice by many, so making sure you have a website in place is key. Also, you can place ads via the Internet by using a variety of sources, such as Google Adwords. Put your business contact information out there on websites such as Yellowpages so that you are easily found. Get the word out and your business will prove to be successful this year.

Many are wondering How to Make it in Business to supplement their current income or to live out their dreams. Whatever the case may be, implementing these tips will help make your business be a successful one. For more information on small business, click HERE!

Restaurant Business, Retail Store Business No Comments

Best Task Manager Tips for Business Owners

Written on February 8, 2012 at 5:49 pm, by

If you’re anything like me, you manage the people, processes and resources of your business with the best of them, but are you your own best task manager? You probably don’t want to admit that you love distractions, but most likely you do! In fact, just like monkeys, we get a shot of adrenaline every time something pulls us in other directions. Why do you think you check your email so much?

Want to be more productive and get your focus back? There are no secret formulas here…simply do one thing at a time. Stop multitasking — that would be just another form of distraction. Of course, all this is easier said than done.

Here are some great tips for staying productive:

Best Task Manager Tip #1 – Work in Reverse: Work backwards from major goals, to milestones, to tasks. Writing “launch company website” at the top of your to-do list is a sure way to ensure you never get it done. Break the work into smaller and smaller portions until you have specific tasks that can be accomplished in a few hours or less: Write content for one page, outline an introduction for the homepage video, etc. That’s how you set goals and actually succeed in crossing them off your list.

Best Task Manager Tip #2 – Quit Multitasking: Switching from task to task quickly does not work. In fact, changing tasks more than 10 times in a day makes you dumber than being stoned. When you’re stoned, your IQ drops by five points. When you multitask, it drops by an average of 10 points, 15 for men, five for women (yes, men are three times as bad at multitasking than women). Just don’t relay that information to your wife…this is one those “guy secrets” we must keep to ourselves!

Best Task Manager Tip #3 – Simplify: You have technology all around you, so use it to your advantage! For example, instead of having to get and go to the fax machine, try eFax. You can send and receive faxes from your email. Or, try Restockit.com. You can order virtually any supply you need in two minutes on the computer rather then leave the business, drive to the store, pick out what you need, and drive back. There examples of such time-saving devices all over this website waiting for you!


Best Task Manager Tip #4 – Be Aggressive about Eliminating Distractions: Lock your door, put a sign up, turn off your phone, texts, email, and instant messaging. In fact, if you know you may sneak a peek at your email, set it to offline mode, or even turn off your Internet connection. Go to a quiet area and focus on completing one task.

Best Task Manager Tip #5 – Schedule your Email: Pick two or three times during the day when you’re going to use your email. Checking your email constantly throughout the day creates a ton of noise and destroys your productivity.

Best Task Manager Tip #6 – Use the Phone: Email isn’t meant for conversations. Don’t reply more than twice to an email. Pick up the phone instead, just like the old days. Same thing applies to texting – you can more done in one minute of actually talking then ten minutes of texting. I’ll never understand why kids love that form of communication so much!

Best Task Manager Tip #7 – Work From Your Own Agenda: Don’t let something else set your day. Most people go right to their emails and start freaking out. You will end up at inbox-zero, but accomplish nothing. After you wake up, drink water so you rehydrate, eat a good breakfast to replenish your glucose, then set prioritized goals for the rest of your day. I usually do that while exercising in the morning before breakfast…it’s a great time for me to concentrate on my body and mind without any other distractions.

Best Task Manager Tip #8 – Work in 60 to 90 Minute Intervals: Your brain uses up more glucose than any other bodily activity. Typically you will have spent most of it after 60-90 minutes. (That’s why you feel so burned out after super long meetings.) Take a break: Get up, go for a walk, have a snack, do something completely different to recharge. And yes, that means you need an extra hour for breaks, not including lunch, so if you’re required to get eight hours of work done each day, plan to be there for 9.5-10 hours. Often times I’ll do short bursts of intense work and break every half-hour or so for five minutes. It works better for me that way.

If you take these Best Task Manager tips to heart, you will find the ability to manage your day much more efficiently. For more information on small businesses, please click HERE!

Restaurant Business, Retail Store Business, Small Business Basics 1 Comment

How to Increase Sales in The C Store

Written on February 2, 2012 at 5:07 pm, by

In the ever-present battle for convenience store owners trying to figure out how to increase sales, Mars Chocolate North America recently completed such a study in partnership with a national c-store retailer. What they found out is a look inside the convenience store shopper’s mind to understand the way he or she makes a purchase decision. This can be a major help for those of us in the C Store industry!

The “C-Store Discovery Project: Path to Purchase Study” (P2P Study) examines shopper behavior from the gas pump to the checkout and how merchandising and target marketing influences buying decisions. The study examineed shopping patterns, impact of stimuli to consumer engagement and dwell time, and how the C Store retailers can use this information to create the most effective, profitable path to a sale.

“While this study’s primary focus is confectionery, the results span well beyond our category, so retailers can apply learning throughout the store,” said Larry Lupo, vice president of Sales Convenience & Retail, Mars Chocolate North America. “This research is just one example of how we’re developing insights to help our retail partners grow their total business and maximize trips.”

Nearly 1,800 consumers were included in the test from across the country, in all geographic regions to match c-store demographics. Rather than utilize retail locations, which potentially could disrupt the businesses, consumers were asked to visit a virtual reality store that simulates the shopping experience by using 3-D computer graphics. The flexibility of this Mars V-store enables testing multiple concepts, therefore reducing the need to design and build several store planograms for live testing on how to increase sales.

“The Mars V-store offers valuable insights for a fraction of the cost, in a fraction of the time, without disrupting the actual retail store,” Lupo explained.

In the study, each consumer shopped a virtual retail store with one of 12 different configurations of different merchandising situations in the C Store industry. This simulation measured the effectiveness of: gasoline pump-toppers; exterior signage such as on windows; interior signage such as shelf signs and blades; and finally, front-end and checkout area configurations.

One of the cells represented the current signage for the national retailer, and this served as the “controlled” factor against which all the other cells were measured. Other cells included a mixture of existing merchandising elements for the C Store retailer, plus variations of signage. Some formats included category and brand logos, while other signs featured actual product photos.

The Optimal Merchandising Plan:

“Through this comprehensive research conducted inside the virtual store, we’ve identified the most impactful merchandising situations to drive purchases,” said Lupo. “Our c-store partner can now pick the top one or two and test them in-store.”

Based on the findings, Mars has recommended that the retailer implement key signage and merchandising elements to draw shoppers into the store and increase sales conversions in the aisles and at checkout. Results of the P2P Study focus on the following recommendations:

How to Increase Sales Finding #1 – Pump Toppers: Use pump topper signage to encourage shoppers to come inside the store/candy section. Shoppers who view signage on pumps and hose clamps are encouraged to visit the candy aisle and spend more on confections.

How to Increase Sales Finding #2 – Clean up the Clutter: Avoid cluttered windows and doors with excess signage and allow for a clean store view. A clear view into the store makes it appear cleaner and more inviting. Well-placed window and door signs promoting confections drive traffic to the candy section and help stimulate category awareness and brand consideration. This may be a great time to have some Custom Signs made to help direct traffic flow and/or bring awareness to a particular section of the store.

How to Increase Sales Finding #3 – In-Aisle Signage: Employ in-aisle signage to draw shoppers to the candy section. The study noted that in-aisle signage, in particular, works to increase sales higher than average for the total store, as well as for confections and chocolate candy.


Seton Signs Tags Labels

How to Increase Sales Finding #4 – Drive the Brand: Communicate brand and product imagery on in-aisle signage. In-store signage featuring product photography was most appealing to consumers, driving more conversion and recall than signs with simply words.

How to Increase Sales Finding #5 – Checkout Displays: Checkout placement of singles and sharing-size bars drives optimal checkout conversion. To drive the highest total front-end sales, as well as sales for front-end chocolate, place top-selling chocolate singles and sharing-size SKUs at the checkout.

“By testing a number of different scenarios, we were able to validate certain merchandising configurations and discard others. While we anecdotally knew that some merchandising strategies worked, the research enables us to more definitively discard or uphold theories about traffic flow, signage, consumer preference and merchandising. We’re adapting the research to make it very relevant for the retailer and its shoppers,” Lupo noted.

“Our retail partner was pleased with the study. Together, we’ve already created a new front-end based on the study results, which will help capture more sales.”

In addition, the study asked consumers which promotional elements influence their in-store purchases. Coupons were the clear incentive, as nearly half of the shoppers believe coupons would inspire purchases. Other influencing factors include in-store displays (30 percent), frequent buyer/loyalty programs (30 percent), gas pump signage (24 percent), store window signage (20 percent) and in-store promotional signage (20 percent).

The Shopper Segments:

The study grouped consumers according to demographics and how they shop inside the store. Five “clusters” of key shopper segments emerged:

A. Back of Store Browser: spends the most time in the store – 63 percent more time than other segments — and makes the most stops.
B. Checkout Connoisseur: heavy front-end buyers, they also shop the back of the store thoroughly.
C. Quick Checkout: shops the front-end heavily, but spends less time than average in the store.
D. In and Out: similar to Quick Checkout, but they buy fewer front-end items.
E. Uninvolved: disengaged shoppers who aren’t very interested in shopping in the c-store.

This segmentation will enable retailers to develop merchandising programs to drive sales to particular segments. For example, to reach the consumers who are “Checkout Connoisseurs,” retailers should offer high-margin, high-impulse items at the registers.

This information can help tremendously if you been questioning how to increase sales for the C Store! Use the information, and start watching your store’s sales conversions climb! For more information on small businesses, please click HERE!

Marketing, Retail Store Business, Small Business Basics , No Comments

The Restaurant Business – Fast Casual Rules!

Written on February 1, 2012 at 4:39 pm, by

Fast-casual restaurants have become the standout in the quick-service restaurant (QSR) arena of the restaurant business and are projected to remain in the number one position for the immediate future, according to new data from Technomic. The fast-casual segment now earns $27 billion in annual sales and accounts for 14 percent of all QSR sales — a rapid increase from only 5 percent a decade ago.

Fast-casual sales for the restaurant business are projected to compound 8 percent annually over the next five years, so if you are looking to open or revitalize a restaurant, that is some seriously good insider information to consider.

“The fast-casual segment is still evolving in ways that are strongly influencing all sectors of the restaurant industry,” Technomic Vice President Joe Pawlak told members of its Food-service Planning Program. “While we categorize them among limited-service restaurants, they also compete strongly with full-service casual dining on several dimensions.”

“Full- and quick-service operators continue to adapt and reposition their concepts toward areas in which fast-casual has been effective with consumers,” added Technomic Executive Vice President Darren Tristano. “This shift will likely blur the definition of fast casual in the eyes of consumers and increase competition in the segment.”


$5 off orders of $50 at MissionRS.com

Technomic listed the “10Fs” of the restaurant business’ fast-casual segment consumer appeal in its presentation:

1. Food quality
2. Fine ingredients
3. “Fitter,” wholesome food
4. Fresh
5. First-rate decor
6. Fair price
7. Fast service
8. Friendly employees
9. Flexible offerings
10. Full-view preparation

We will examine these ten items in a separate post!

Other key features of fast-casual include a fast food service system, strong takeout orientation and check averages under $9 each, according to Technomic, which sub-classifies the segment into categories such as bakery cafes, Mexican/Southwest, specialty, sandwich, chicken, and burger concepts. Converting to a fast-casual restaurant may require an equipment upgrade (my favorite low-cost restaurant equipment supplier being MissionRS.com), but consider the costs of not following the money!

This is great news for the restaurant business in general, and for restaurant owners in particular! Your customers are telling you what they want, and they are responding to those who give it to them. If your sales are lacking, now is the time to do something about it!

You can succeed in the restaurant business by listening to what the customers want in a dining-out experience. For more information concerning small businesses, please click HERE!

Business News, Restaurant Business No Comments

Businesses for Sale Have More Hope

Written on January 25, 2012 at 4:25 pm, by

Extending a two-year trend, small business sales inched up again in 2011, according to BizBuySell.com, an online business-for-sale marketplace. This upward spike dates back to the beginning of 2009. This is good news for those with businesses for sale, as one could well imagine!

The number of small businesses across the United States reportedly changing hands in 2011 was up 3.3 percent to reach 6,703 vs. 2010′s total of 6,486. This comes in conjunction with a similar 3-percent increase in closed transactions from 2009 to 2010, according to BizBuySell.com. These statistics, while not overwhelming, come as a relief to the thousands of owners that have listed their businesses for sale with little interest or action.

“While 2011 continued to be a tough year for the nation’s small business owners, we were pleased to see that business performance is improving and more people are buying small businesses,” said Mike Handelsman, group general manager of BizBuySell.com and BizQuest.com. “Helping this is the fact that business sellers are adjusting their value expectations, something that should continue to spur deals in 2012.”

“We are seeing improved small business transaction activity driven, at least in part, by the fact that small business owners are lowering prices to attract buyers” Handelsman explained. “It’s slowly becoming a better time to be a seller, but it’s already a good time to be a buyer.”

Things continue to look up for small businesses. Fundamentals point to a continued slow, but steady growth in the businesses for sale market in 2012 barring unforeseen global economic issues. Small business performance is improving and sellers who haven’t been able to sell for the past few years should start to reach performance levels that make a sale possible. Added to this is the fact that sellers are becoming increasingly realistic about valuations to more aggressively seek a sale. The days of “over-valuation” appear to over, at least in the short-term.

Underlying all of this is the very favorable long-term conditions of latent supply — for example, the large number of U.S. baby boomers reaching retirement age — and demand that will continue to fuel transaction growth, especially as credit restrictions ease, the company added.

If you are looking for or have businesses for sale, I have a great resource for you to use. A good friend of mine (and my business broker), Jeff Krieg of Calhoun Companies is one of the best in the business. I trust him to make the best decisions for me in the realm of buying or selling businesses, and he is available here! Jeff is a true professional, and is willing to help any way he can.

It is inevitable that small business gets better as a whole…it just seems like it’s taking forever! On the bright side, there will always be a place for small business, just as the will always be people to buy the businesses for sale!

For more information on small businesses, please click HERE!


300x250 Marketing Evaluation

Business News, Restaurant Business, Retail Store Business 3 Comments

How to Buy Restaurant Equipment

Written on January 23, 2012 at 9:38 pm, by

While it is clear to most restaurant owners that developing a strong food service program depends on good equipment, it is often difficult to determine which equipment is best suited to your operation. Insight into customer demographics, along with their buying and eating habits, will help identify the food service offerings which may be in demand and will improve margins. However, with so many possible food service programs available, a true understanding of your restaurant’s human resources and financial commitment, along with the equipment to be used to deliver the product, are the key factors in building a successful, consistent menu.

Prior to selecting the equipment to be used to help deliver a profitable food service program, the following questions should be asked in order to understand the context in which the equipment will be used: Do we have the skill sets within our staff and management team to make this happen? What effect would employee turnover have on this program? What levels of training are required for each food service program we are evaluating? Is consistency from store to store an issue? How do we plan on training employees initially and on an ongoing basis? Will there be specific employees dedicated to this program or will there be crossed-trained employees who perform many tasks?

The answers to the above questions will truly help determine where you’re at from a manpower and management perspective, and should be a good starting point when turning your attention to the equipment that will be needed. Restaurants with experienced staff and strong internal systems can possibly rely on equipment that is slightly more labor intensive, while many may find comfort in knowing that the equipment they use can greatly simplify the entire process. Having heard on an ongoing basis that “it is difficult to find good, motivated employees,” I believe that restaurant owners need to do their homework when it comes to making the proper equipment selection.

When learning how to buy restaurant equipment, one can easily break the decision down into four areas: Initial Cost, Ongoing Operating Costs, Operation, and Support. Let’s take a closer look at each one.

How to Buy Restaurant Equipment Tip #1: How Much Does It Really Cost? The initial cost of equipment required to implement a food service program can easily be calculated, but there is more to the story then merely how much cash you lay on the table. The old saying “you get what you pay for” applies here, and cheaper is not always better. As with any business, volume and consistent delivery rules. Maybe you spend the extra $1,000 for a better cook top that can produce 25% more food per hour – your return-on-investment on that $1,000 will be pretty steep over the long-term! Instead of buying that bargain cooler with half the warranty of a better unit, you may want to step up for the better unit to avoid a very costly equipment breakdown somewhere down the road that could potentially cost you several days worth of revenue because your kitchen is shut down.

Also, remember to do a little comparison shopping, which can easily be accomplished by visiting our Equipment for Business page.


Wholesale Kitchen Equipment

How to Buy Restaurant Equipment Tip #2: How are the Ongoing Operating Costs? Attention must be given to the direct “ongoing operating costs” of the equipment being evaluated. For cooking equipment, one must factor in such things as energy consumption, equipment maintenance requirements and costs, ventilation requirements and costs, consumption of consumables (ie: for a frying program this would include the cost of oil, filter papers, etc.). Do not assume that all equipment is the same, and don’t base everything on one factor. Understanding the “ongoing operating costs” will make a huge difference on one’s bottom line. One great supplier I prefer is AbestKitchen | Restaurant Equipment and Kitchen Supplies. They have been around a long time and provide great service!

How to Buy Restaurant Equipment Tip #3: Is it Easy to Use? In recent years, a number of food service equipment manufacturers have listened to their customers and designed equipment with greater simplicity and ease of use. This is essential in most restaurant environments so it is important to learn about the operation and differences in controls that one system offers over another. Employee training is further simplified if equipment can be equipped with controls that use the “K.I.S.S.” method. Not only can advanced controls simplify daily operation, they will also improve ongoing training and the training of new employees, while greatly decreasing the burden on management for all the same reasons. If operating more then one restaurant, equipment controls will increase the consistency of your product offering from store to store and from employee to employee. The consistent delivery of quality food is key to any successful food service program.

How to Buy Restaurant Equipment Tip #4: How is the Support? Last but not least, one must understand the level of support that is included when purchasing equipment. The brand name may be important, however, the stronger more customer-focused companies offer in-store training, longer warranties, 24/7 hotline support services, cooking and operational guidelines, and a comprehensive parts and service network. Don’t hesitate to ask specifics about what you should expect from a support perspective, and don’t simply rely on the fact that others are using the equipment in question to make your decision.

To increase the probability of success when introducing a new food service program, make certain to understand the “human” dynamics with your organization, both the initial and ongoing operational equipment-related costs and the overall support you can expect from the manufacturer in question. Doing your homework upfront and understanding your true needs will make all the difference in the world when learning how to buy restaurant equipment!

For more information concerning small businesses, please click HERE!

Restaurant Business, Small Business Basics 2 Comments

Economy of the US Concerns Small Business Owners

Written on January 19, 2012 at 1:07 pm, by

If you have owned a business for any amount of time, you have probably felt a sense of foreboding concerning the economy of the US. We have lived with this cloud over our heads for a number of years now, and it just doesn’t seem to be getting any better. Every new quarter brings fresh hope, and the specter of gloom seems to seep in once we realize that it’s “more of the same.”

Sound familiar? Do you think you’re the only one who feels this way? Read on, and think again!

In a recent small business opinion poll about the economy of the US conducted by ORC International, 59 percent believe the recent healthcare law makes it harder for small businesses to hire more employees

Nearly half (46 percent) of small businesses believe America’s best days are behind it. Similarly, small business owners share negative feelings about Washington D.C. with 82 percent agreeing federal government should get out of their way and 72 percent agreeing federal taxation, regulation and legislation make it harder for small businesses to hire more employees.

Though many small business decision-makers are decidedly pessimistic about the economy of the US and legislation coming out of Washington D.C., they maintain a much more positive outlook about their individual circumstances with 65 percent believing their businesses are headed in the right direction. The EMPLOYERS Small Business Poll also found that only 39 percent of small businesses feel their best days are behind them compared to the 46 percent who believe the national economy’s best days are behind it.

Small Business Opinion Poll Snapshot:

– 46% agree that America’s best days are behind it

– 82% agree that Washington should get out of small business’ way

– 65% feel their own business is moving in the right direction

– 34% believe that economic uncertainty is the biggest challenge to small businesses today

– 70% feel that federal government regulations on small businesses today are not reasonable

In my case, I fear the economy of the US won’t significantly improve any time soon, but consumers will learn to adapt to the “new normal” just as business owners will. We, as owners, will have to learn to operate leaner and meaner, and provide exceptional customer service to stay competitive. We can’t risk losing our smaller customer base to someone else because we treated someone badly. Let’s leave that tactic to the big chains and big box stores!

About the Small Business Opinion Poll

The study commissioned by EMPLOYERS surveyed 501 owners or managers of small businesses with 1-99 full-time employees. Data was collected through telephone interviews during the period Oct. 6 — Oct. 13, 2011 at the 95 percent confidence level. The sample is stratified across business size and industry grouping, including manufacturing/construction, transportation/ communication, wholesale/retail, financial services, or personal/professional services businesses. The survey was conducted by ORC International, an Infogroup company through their Small Business CARAVAN.

For more information on small businesses, please click HERE!

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Loans for a Business Alternatives – Small Banks

Written on January 18, 2012 at 8:52 pm, by

In our ongoing quest to find working capital, equipment loans, start-up funding, or whatever financial need business owners have, you’ve probably noticed that getting a large bank to cut loose loans for a business is like pulling teeth out of “Jaws” with your bare hands. Loans for a business are anything but easy-to-come-by. In an effort to find the places you can go for cash, we will investigate that old stand-by, the bank!

Though Bank of America, Chase, Citibank and Wells Fargo say they are increasing their small-business lending in 2012 and recently shared their criteria for small-business loans with HuffPost Small Business, many business experts believe small businesses may find better luck seeking loans for a business from small banks or community banks, which “aren’t as exposed to the European debt crisis as the large banks are,” says Bernard Baumohl, chief global economist of The Economic Outlook Group, an economic forecasting firm in Princeton, N.J. It may be true that some of the larger banks are willing to provide loans for a business, including smaller businesses, but usually with absolutely ludicrous requirements to qualify for the loan, such as 50% down, $500K in liquid assets, etc. In other words, the kind of qualifications most small business owners (and potential owners) just don’t have access to.

Ami Kassar, founder and CEO of Philadelphia-based MultiFunding, points out that small banks, with $500 million or less in domestic deposits, account for 31.5 percent of all small-business loans, even though they account for only 11 percent of deposits. To help you in your search for a bank loan, MultiFunding recently released a tool that grades every FDIC regulated bank in the nation according to its commitment to small-business lending.

Another promising source of loans for a business venture is Prosper.com, who is a unique peer-to-peer lending platform allowing borrowers to secure fixed rate, unsecured personal loans through a network of lenders. These loans can be used for debt consolidation, home improvement, autos, small business investment, wedding expenses, major purchases, etc. Borrowers get loans starting at a lower average APR then the major lenders.

If you believe banks are only helpful for traditional small businesses, with years of consistent revenue, think again. A growing number of start-ups are opening up business checking accounts with so-called “venture banks,” which can act as strategic partners in the hunt for loans for a business, and that’s good news for the economy. Depending on who you ask, small businesses account for the vast majority of job creation in the U.S., as well as the world, to the tune of close to 80%. On the other hand, small businesses also account for the majority of jobs lost in this country as they close down, so stay tuned to this blog for information on how to improve a business!

My own experiences in the last few years confirm that smaller banks are more willing to work with small businesses such as mine. Think of community banks as “one of us”…they need to support the local communities so the local communities support them. It wouldn’t hurt for you to remind your banker of that fact, either – it worked for me! They may be your very best bet right now for loans for a business!

For more information concerning small business, please click HERE!


Financing 1 Comment