Compass First

Is Your Business “You-Proof”?

Compass First — Wed, 03 Apr 2013 14:44:10 +0000

Whether you’re planning to sell your company sometime soon or sometime in the future; now is the time to ensure that your business isn’t all about you. From the latest research involving 2300 companies from around the globe, here are two key factors that are linked to the probability of getting an offer for your business when it’s time to sell.

#1: You’re almost twice as likely to get an offer if your business can survive the “hit-by-a-bus” test.

If you were out of action for three months and unable to work, would your business keep running smoothly? The more your staff and customers need you, the less valuable your company will be to a potential acquirer. One good way to start making your business more independent is to begin spending less time at the office. Start by not working evenings or weekends, and don’t reply if employees call. Once they get the picture, the best ones will start making more decisions independently. The shift will also expose your weakest employees, the ones that need training or that need to find another job. As for you, it might come as a shock to find out how much your business has become such an essential part of you; but if you’re going to sell your business one day, you need to look at it as an inanimate economic engine, not as something that defines who you are.

#2: Companies with a management team (as opposed to a sole manager) are getting offers at almost twice the rate.

If you don’t have a management team, hiring a second-in-command (2iC) is a good first move. A second-in-command can help you balance the demands of running your company and advance your targeted exit time.

Here’s a four-step plan for hiring a 2iC, thanks to advice from Silicon-Valley-based Bob Sutton, author of Good Boss, Bad Boss.

1: Identify someone internally. “The research is clear,” says Sutton. “Unless things are totally screwed up, internal candidates have a strong tendency to outperform external leaders.”

2: Give your 2iC prospect(s) a special project, one that allows them to demonstrate their leadership skills to you and the rest of your team. If your candidate or one of your candidates excels, it will be clear to your team why he or she was selected.

3: Communicate your choice. If you pick a 2iC from an internal pool, explain your choice to the rest of your team. At the same time, wrap your arms around those you passed over and make it clear how much you value their contribution.

4: Shift from manager to coach. “The transition from manager to coach is a gradual evolution where the goal is to ask more questions, spend more time listening, and spend less time talking and directing,” says Sutton.

Salon Asset Sale

Compass First — Wed, 20 Mar 2013 06:41:09 +0000

Spa / salon asset sale. Leasehold improvements are valued at well over one hundred thousand, which is easily seen upon viewing this impressive facility. This full-service hair and nail salon offers a highly visible location, facing one of the highest traffic counts in the area.

The owner focuses on beauty through natural products, and enhancing the body’s own regenerative powers, with a build out that would suit a blow dry bar, day spa, or any number of growth concepts.

A long term, below market lease is in place, with an estimated savings of $30,000 per year from current market rental rates.

Industry revenues increase during the summer months, so this is an excellent time to enter operations, and buy in before the busy season.

Please contact Compass First to set up a behind-the-scenes tour.

State Street Restaurant

Compass First — Sun, 17 Mar 2013 07:11:47 +0000

Turn-key restaurant facility, facing once of the highest traffic counts in Santa Barbara.

Impressive interior includes a stainless steel kitchen with hood, walk-in cooler, grease trap and ADA restrooms – all health department approved. Also features onsite parking (very rare) and a Type 41 ABC license.

Large customer pool is drawn to the area from a mixed demographic of working professionals, hotel tourists and late night bar crowds, creating the perfect opportunity to sample different revenue streams.

At under 2,500 square feet, this facility comes at a lower occupancy cost than other downtown restaurants, with a long-term lease available to qualified buyers.

Please contact Compass First, to set up a behind-the-scenes tour.

Winery Development

Compass First — Sun, 17 Mar 2013 06:47:24 +0000

Nestled in the foothills of the western Santa Ynez valley, this development project is poised for an investment-minded buyer.

From soil to shelf, this 10-acre parcel is permitted for a full service, Tier III winery concept, allowing agricultural growth, private label production and storage, and public on-site tasting rooms.

Tier III is the broadest permit available for a Santa Barbara County winery, and allows flexibility for an investor to take advantage of these multiple revenue sources. Investors can operate their own private label, or act as a property manager / lessor to third party winemakers, with a long line of production facilities hungry for a public outlet.

Unlimited small-scale events are allowed at the premises each year (up to 80 guests) with larger events up to 200 guests allowed 10 times per year. This opens up event options for on-site weddings, harvest dinners and weekly food pairings, in addition to income drawn from leasing, tasting rooms, retail wine sales and grape purchase agreements.

The hard work is done. This is an excellent opportunity to step into the final design phase of property development, and own a piece of the Santa Barbara wine country.

Please contact Compass First for additional details, and to review approved use permits and floor plans.

Four Traps to Avoid When an Acquirer Comes Calling

Compass First — Tue, 05 Feb 2013 06:11:24 +0000

You may be eager to sell your business, and happy to have a potential buyer at your doorstep, but what’s it like when an acquirer starts looking inside every inch of your business?

Most repeat acquirers will have a checklist of questions – both objective and subjective – that they need answered before getting serious about buying your company.

Examples of objective questions include:

When does your lease expire and what are the terms?
Do you have consistent, signed, up-to-date contracts with your customers and employees?
Are your ideas, products and processes protected by patent or trademark?
What kind of technology do you use, and are your software licenses up to date?
What are the loan covenants on your credit agreements?
How are your receivables? Do you have any late payers or deadbeat customers?
Does your business require a license to operate, and if so, is your paperwork in order?
Do you have any litigation pending?

Then they’ll try to get a subjective sense of your business, including figuring out just how integral you are personally to the success of your business. And that requires some investigative work as well as some tricks of the trade. For example:

Trick #1: Making last-minute changes

By asking to make a last-minute change to your meeting time, an acquirer gets clues as to how involved you are personally in serving customers. If you can’t accommodate the change request, the acquirer may probe to find out why and try to determine what part of the business is so dependent on you that you have to be there.

Trick #2: Checking to see if your business is vision impaired

An acquirer may ask you to explain your vision for the business, which is a question you should be well prepared to answer. However, he or she may ask the same question of your employees and key managers. If your staff members offer inconsistent answers, the acquirer may take it as a sign that the future of the business is in your head.

Trick #3: Asking your customers why they do business with you

A potential acquirer may ask to talk to some of your customers. He or she will expect you to select your most passionate and loyal customers and will therefore expect to hear good things.

The customers may be asked a question like ‘Why do you do business with these guys?’ The acquirer is trying to figure out where your customers’ loyalties lie. If your customers answer by describing the benefits of your product, service or company in general, that’s good. If they respond by explaining how much they like you personally, that’s bad.

Trick #4: Mystery shopping

Acquirers often conduct their first bit of research before you even know they are interested in buying your business. They may pose as a customer, visit your website, or come into your company to understand what it feels like to be one of your customers.

Make sure the experience your company offers a stranger is tight and consistent, and try to avoid being personally involved in finding or serving brand new customers. If a potential acquirer sees you personally as the key to wooing new customers, they’ll be concerned that business will dry up when you leave.

You may not be expecting an acquirer today, but it’s never too early to ask yourself the same questions you are likely to hear from an acquirer.

“Making the Bed” – A Guide to Fulfilling Your New Year’s Resolutions

Compass First — Thu, 24 Jan 2013 05:50:26 +0000

A New Year is upon us. For the past few weeks, the gyms have been packed, the morning joggers are out, and everyone’s clothes have been looking much more pressed and fit. Every phone conversation starts with “Happy New Year!”, and the energy and excitement of a new beginning carries us through the workday. We are amazed at our own motivation levels.

Already in the third week, however, we see the gym traffic is calming down. The “Happy New Years!” are limited to passing acquaintances. Our morning coffee addiction is back in full force, and you might find yourself already staring at your resolutions list, trying to remember just what it was you wanted to accomplish in 2013….

So what happened?

Before you officially revert to the old lifestyle – stop to consider: You might simply be taking on too many changes at once.

According to Charles Duhig, investigative reporter for the New York Times and author of the “Power of Habit”, trying to change multiple behaviors simultaneously requires more motivation, more willpower, and therefore a greater chance of failure. Loading yourself up with too many goals, although well-intentioned, is like trying to maneuver a barge.

The key to realistic change, says Duhig, is to streamline. Instead of overwhelming yourself with resolutions, we need to identify and focus on a few “keystone” habits that have the power to start a chain reaction in ourselves.

For example, studies show that families who eat dinner together statistically raise children with more self-confidence, greater emotional control and better grades. Not that eating together by itself has any bearing on these other behaviors, but academics theorize that this simple daily action promotes a greater sense of security and family connectedness in young children, which helps open the mind for other habits to grab hold.

Exercise, of course, is the ultimate keystone habit, and Richard Branson’s key to increased productivity. People who work out regularly automatically tend to eat better, sleep better and become more productive at the office, generally feeling more positive about themselves. Interestingly, study participants who set specific exercise goals like “I will work out for 20 minutes per day” fare less well than their peers in sticking to a new exercise program, who set general (and more attainable) parameters such as “I will do sit-ups and pushups every day”, without specifying an actual number. Setting the bar too high sets up parameters for failure.

Duhig explains that the key to maintaining keystone habits is to create an environment of consistent reinforcement, in the form of “small wins”. With small and consistent reinforcement, we trick ourselves into feeling only positive feelings. The change becomes contagious as these baby steps compound within ourselves, and we start to see the results gradually form into a habit.

So what is the easiest keystone habit of all (and also a great brain hacker)? Surprisingly enough, making the bed. Studies show that this simple daily task leads to better budget discipline, work productivity and a greater sense of well-being. Literally thirty seconds of effort that you can even shortcut on a busy morning by pulling the comforter up and over the sheets.

Conversely, an unmade bed creates an atmosphere more accepting of disorder…. and nothing breeds disorder like more disorder.

Malcolm Gladwell introduced this concept in The Tipping Point, with the “Broken Window Theory” of crime epidemics. Crime in this theory is also viewed as contagious, and much more likely to be committed in an environment where a state of disorder already exists.

“If the neighborhood cannot keep a bothersome panhandler from annoying passersby, the thief may reason, it is even less likely to call the police to identify a potential mugger or to interfere if the mugging actually takes place.”

Rudy Guiliani tapped into this theory as mayor of New York City, where amidst an incredibly high violent crime rate and growing protests from his constituents, he diverted city funds to focus on programs for simply reducing graffiti. Though other factors were assuredly at work here, after a short time the streets became cleaner, and surprisingly the crime rates began to drop.

Small changes to our environment, in other words, can have major consequences. Although this is nothing new to anyone who has seen or read up on the “Butterfly Effect”, this has tremendous implications when applied to a goal that we set for ourselves.

So start by thinking small. Instead of setting a goal to run 3 miles per day, simply walk to the end of the block and back after dinner. Do ten sit-ups, instead of 100, before bed. Complement just one person at work. Keep the resolution simple enough, and you can’t help but to do it.

Before long, the feeling of accomplishment will grow, the small wins will stack up, and your goals will also increase with time. Once the habit is in place, the bar can slowly be raised. Like boiling a pot of water, the initial energy is drawn out and takes a while to kick in, but once that water boils, it is very easy to keep it bubbling.

So when you get up tomorrow morning, tear up that long list of resolutions, and just set one small goal for yourself. Try tucking in those sheets before you go to work.

That may be all the resolution you need.

Prime Restaurant w/ Type 47

Compass First — Wed, 23 Jan 2013 06:05:03 +0000

Located in the heart of a resurging downtown, this enchanting restaurant space features a full service bar with Type 47 ABC license, a private parking lot, large catering kitchen and outdoor patio seating for customers.

Leasehold improvements are valued at well over five hundred thousand, which is easily seen upon viewing this impressive facility. An long term 15-year lease is in place, to secure the continued success of this unique investment, and make this an excellent opportunity for prospective buyers.

Please contact Compass First for more information, and to see this location first-hand.

Increasing Customer Tips with the “Rule of Reciprocity”

Compass First — Thu, 03 Jan 2013 17:38:05 +0000

In 1974, Phillip Kunz, a sociologist at Brigham Young University, wanted to see what would happen if he sent Christmas cards to people he didn’t know. He picked up several local phone directories and chose 600 addresses at random, starting a new Christmas list of complete strangers. He included handwritten notes or a photo of himself and his family. And the response was overwhelming. Over 200 people replied, sending photos and family newsletters of their own, as if they had known Kunz for years. Robert Cialdini is an emeritus psychologist at Arizona State University. What happened to Kunz, he explains, is the direct result of one of the rules that most interest him: the rule of reciprocation. The rule, he says, is drilled into us as children. “We are obligated to give back to others, the form of behavior that they have first given to us,” he says. “Essentially thou shall not take without giving in return.” You can see the same thing when it comes to tipping. If a server brings you a check and does not include a candy on the check tray, you will tip the server whatever it is that you feel the server deserves. “But if there’s a mint on the tray, tips go up 3.3 percent,” Cialdini says. According to Cialdini, the researchers who did that study also discovered that if while delivering the tray with the mint the server paused, looked the customers in the eye, and then gave them a second mint while telling them the candy was specifically for them, “tips went through the roof.” Servers who gave a second mint got a 20 percent increase over their normal tip. Continue Reading Excerpted from NPR.org

Profitable Bar / Nightclub

Compass First — Thu, 25 Oct 2012 04:33:29 +0000

Fantastic Night Club location! Featuring a Type 48 ABC License (full liquor), with no food requirement, a City Dance Permit and all equipment in place. New POS system, HD TVs, Sound, Dance, Lighting, and Electric Systems, all replaced in a $150,000 remodel in 2010. Also new drainage and tap lines. Includes outdoor patio, and lighted production stage. Below market lease makes this an excellent investment opportunity. Owner nets over $150,000 annually – please contact Compass First for details.

Profitable Cafe

Compass First — Thu, 25 Oct 2012 04:19:00 +0000

Successful breakfast / lunch concept in Santa Barbara County. Part-time owner works only 9:30 AM to 2 PM daily, and dominates the local breakfast market, serving a mixed demographic of students and office customers.

Includes outside catering accounts, prime location with all kitchen equipment and staffing in place, and ample parking. Indoor/outdoor seating keeps the business steady through every season. Perfect for a first-time operator or experienced restaurateur looking for fewer hours.

Seller is moving out of State and would like to sell quickly. Please call Compass First to pursue this opportunity.