What Should You Look For When Buying a Business?

If you’ve decided it’s time to expand your operations, RTA Business suggests that there are certain things you should look for when buying a business.

RTA Business Are Here To Help Potential Buyers

Have you decided it’s time to expand your operation, to take your company to the next step? If you have, then let RTA Business - the business sales broker - lend a heling hand. You’re sure to find the right firm for you with us, as we have the largest business database of any UK business transfer agent.

Therefore, we understand how hard it is to decide which company will be right for you and your circumstances. It’s certainly not an easy decision to make, and in our experience, there’s several things you need to consider:

What Do You Need to Consider? 

1)      Profit Margins: The most obvious is how much money they’re making. If they’re not making money now, then how will they make money for you, once the company has fallen into your hands?

2)      Potential for Expansion: Sometimes, it’s good to take a gamble on a business that may not have strong profit margins, but has a lot of potential for expansion. To figure this out, look at the potential business and see how it’s working in relation to the wider marker, can you see growth potential?

3)      Their Reputation: You need to think about how other people see them. Basically, if they have a bad reputation, that reputation will carry on with you at the helm, meaning that the company could prove to be a drag on your own bottom line.

4)      The Employees: The employees are the life blood of any organisation. If the company in question has employees you feel you can’t work with, it would cost you money to replace them. Ask yourself, is it really worth it?

5)      The Target Market: Is the potential business’ target market one you know? One you can work with? If the answer to both questions is no, that business just isn’t for you.

Most importantly, RTA Business would suggest that you think about how you can use the company in question to make money, both in the short and long-term, and use that to decide whether this is the right business for you.

If you want to learn more or need to speak to a member of the team, please contact the RTA Business Complaints department today.

RTA Business’ Top Four Tips to Improve Employee Relations

One of the most difficult areas of management is striking the perfect balance with your employees, and if you need help improving your strategy in this pivotal area, then you might want to take a look at RTA Business’ top four tips to improve employee relations.

A business is only as good as the people that work for it, and those people tend to be more productive, to contribute more to your business, if they are happy. An unhealthy relationship with the boss is a major reason why an employee may be unhappy at work, as they feel unable to forge a positive working relationship with their boss, and as such, they are not fulfilling their full potential.

If you are looking to eventually sell your business, you need to create a positive working atmosphere, to ensure that when it comes time to sell, your business is the best it possibly can be and is more than capable of attracting a buyer. That is why employee relations is a key area of your management style, and if it’s an area somewhat lacking, you need to improve them if you ever hope to sell your business.

The Top Four from RTA Business

There are multiple ways you can improve employee relations, however some are more effective than others, and these top four tips from RTA Business should drastically improve relations in your office.

1       Politeness: It’s a basic issue, but you’d be surprised how often employees quit their jobs because of an impolite boss. Everybody in that office deserves respect and if they don’t get it, their productivity, and thus your bottom line, will suffer due to resentment.

2      Incentive: Whilst you must be the authority figure for your employees, they need to also see you as the person who can reward them if they follow your direction and work as hard as they possibly can. Incentivise your employees to motivate them.

3      Co-Operation: This tip is pivotal. No employee wants to simply feel like a drone, following direction without any input. When a major business decision comes up, consult with your employees to make them feel involved. It will show them that you value their opinion and respect them. Respect usually fosters respect.

4      Outside of Work: Whilst you don’t need to build an intimate relationship outside of work, it helps to at least show an interest in your employee’s life away from the office. It shows that they are not just another number to you and endears them to you in return. 

UK Interest Rates Fall in March

The UK economic recovery seems to be gaining momentum at the moment, as this month that rate of UK inflation fell. What does this mean for those of you are there who are thinking of putting your business up for sale right now?

Inflation is the rate that consumer prices for goods and services goes up against real wage rises. If there’s a rise in inflation, it means that customers have less purchasing power. A fall, therefore is advantageous to the business community, as it means that customers have more purchasing power to the pound, stimulating spending.

The Rate of Inflation

So what does this latest fall in the rate of inflation mean and what are the specifics? According to the Office of National Statistics (ONS), UK inflation, as measured on the Consumer Price Index, slipped from 1.7% in February to 1.6% in March.

This figure actually further establishes an ongoing statistical trend running through UK inflation right now; it’s fallen for the third month in a row. Furthermore, inflation is sitting well below the Bank of England’s 2% target and it has done so for some time.

This latest Consumer Price Index figure is the lowest recorded since October 2009 and it isn’t the only inflation news coming through right now, as the nation’s other significant measure of inflation, the Retail Price Index, slipped from 2.7% to 2.5%.

Specifically, experts are suggesting that the biggest reason for the fall of inflation across the board came from petrol prices. They actually (and quite unusually for petrol) stayed level between February and March. In contrast they rose 2.2p per litre the month before.

However Petrol Prices weren’t the only reason that inflation fell across the country, clothing prices also contributed and so did food prices. So what does this mean the business sales industry?

What This Means at RTA Business

Because this is the sixth consecutive time inflation rates have fallen rather than risen, the gap spanning average wage growth (they rose by 1.4% in three months to January) and price rises for consumer goods continues to shrink, it means that consumer purchasing power has strengthened.

That’s really good news if you’re looking to sell your business right now. This is because if consumers are spending more, there’s more money to go around. It means not only that you are earning more, which makes your business look more attractive to a potential buyer, but that this buyer is more likely going to want to expand their business by buying yours. RTA Business knows now is a good time to sell.

UK Growth Largest of the G7 in 2014

The International Monetary Fund (IMF) recently made British business owners week as they announced that of the G7 countries, the UK is set to record the largest rate of economic growth over the current year. What are the obvious benefits for those people looking to sell their business?

It’s no secret that we’re in the middle of an economic recovery; in fact at this point, it’s practically gospel truth. Every set of data we’re presented with right now, whether it be about manufacturing, business confidence, the property market, GDP etc. is positive and most financial experts have suggested that by summer 2014, we’ll be recording pre-recession levels of growth.

However these latest figures hammer home just how strong the UK is right now in relation to everybody else, and this means that if you’re looking to sell your business to an international buyer, then there is never a better time to do so. Let the RTA Business Consultants blog break it down for you.

The G7 countries are the world’s seven most wealthy economies. Between them they hold 63% ($241 trillion) of global net wealth. The countries are the UK, the US (the world’s largest economy), Canada, Japan, France, Germany and Italy.

The fact that the UK is forecasted to grow more than any of the world’s other wealthiest nations, especially the US, is a testament in and of itself to the power of British industry right now. The numbers speak for themselves here.

According to the IMF, the UK economy is set to grow by 2.9% this year. This figure has been revised form the initial prediction the Fund made in January. At that time they predicted that the UK economy would grow by 2.4%. It also predicted that the UK economy would grow by 2.5% in 2015.

In contrast, the IMF said that the US economy will grow by 2.8% over the current year and that the Canadian economy will grow by 2.3%. Basically, at this point there is more potential for expansion in the UK economy than anywhere else. Potential for expansion will make your business look very attractive to international buyers dealing with less favourable circumstances.

Finally, the IMF predicted that the global economy is set to grow by 3.6% this year and an impressive 3.9% next year. Again, at RTA Business, we see this as good news for people looking to sell their business. Basically, more global economic growth means more money to go around meaning more people will be looking to buy.

At RTA Business, we recognise that the writing really is on the wall here. If you are looking to sell your business there really has never been a better time to do so.