EVALUATING A BUSINESS

Buying the right business

A key advantage to buying an existing business rather than starting one from scratch is that an acquisition allows you to skip the expensive - and risky - start-up stage. But you need to think carefully about what you're buying.

Different types of businesses carry different advantages and risks. Here are some to consider:



Franchises account
For about a quarter of all business purchases. A franchise is proven and tested, so you are buying a business that is already successful. As a franchisee, you benefit from the knowledge, established production and management methods, publicity, advice and superior buying power of the franchiser. You gain security by offering a known product or service.

The tradeoff is that you have little room for creativity or opportunity for taking the company in new directions. You'll also have limited control over price, products and production.

Before purchasing a franchise, determine whether other franchises in your area are financially sound, whether the brand is well known and how stiff the competition is in your area. It's also important to know what restrictions and obligations are imposed by the franchiser.

You can consult the Canadian Franchise Association for advice. In Quebec, consult the Conseil québécois de la franchise, or CQF (in French), for information on franchising and affiliated businesses in that province.

Sub-optimal or failing businesses
Some entrepreneurs opt to buy a failing business at a bargain price and then turn it around. This strategy involves recognizing unexploited opportunities and capitalizing on them. You may also come across products that were not successful but still have potential. For example, an ecological product may have been brought to market when public interest in the environment was less widespread than it is today.

Strategic acquisitionsIf you already own a business, an acquisition can be an excellent strategic move. Buying an additional business can help you enter a new market with ready-made expertise. It can also allow you to expand your range of products and services, and increase your operational efficiencies. A strategic acquisition is an ideal way to drive rapid growth and generate revenues that are not possible with your existing business. Such an acquisition may also provide extra collateral for additional financing.

Acquisitions typically provide an existing firm with new resources, capabilities and skill sets, along with new technology, physical assets, innovative business processes and rights to products that may strengthen a firm's position in the marketplace.

Acquiring your competition
This may enable you to improve on their ideas, increase your market share and diversify your product line. Make sure that you don't run afoul of any rules that encourage competition.

Manufacturing products
Products that have been designed by another firm can be a way to expand the range of products your firm offers. A product designer may have a patent or prototype that your firm can manufacture and market for a royalty fee. You can also secure rights to reproduce a product with a protected trademark in another country.

Buying a supplier or distribution channel
Can improve your company's performance and cut down on delays. It may also result in increased buying power, which can lead to cost savings and operational efficiencies. 

Management buyouts
(MBOs), in which a group of managers pool resources and purchase the firm they work for, are another option. Managers can reduce the risk they would face as individuals by acting together. Such buyouts offer several advantages over purchases by external buyers, since management teams typically have strong industry know-how, a good knowledge of risks and problems within the business, familiarity with current company culture and established relationships with customers, clients and suppliers.

Enyinnaya nnamdi
Sloane Business Management Consultants
CEO
info_sloanebizconsultants@yahoo.com
+23407-026341797

Understand and Honor Your Business Model

Ever wonder how legendary companies get started? Do they begin with elaborate business plans? Expensive surveys? Billion- Dollar loans?
                        NONE OF THE ABOVE
Great businesses begin with a great idea and a basic BUSINESS MODEL that people can easily understand and execute.
Every business is based on some kind of business model. In the case of southwest airlines, the business model is low cost fares and high volume, in the case of concord, the business model is high cost fares and low volume
When it come to business models, there is no right or wrong model. The key to running a successful business  is t find  a model that works and then work that model over and over again.
            Talking about the hospitality industry for example( hotels & restaurants). There are scores of different business models in the hospitality industry and each of the models has its success stories. Just look at some of the hotel business models available to travelers in and around Orlando, Florida.
            There are hundreads of “mom-and-pop” business models such as independently owned hotels, motels and bed-and-brakfasts.
            Then there are dozens of business models owned by chains of francisees, beginning wth the bare-bones, low-cost motels such as Motelsixetc and ending with the high-cost-luxury hotels such as exclusive Breakers hotel in Palm Beach, Florida.
Below are  some business models operating in the hospitality industry
-         suite- hotel business model e.g Homestead suites
-         extended-stay business models e.g suburban lodge
-         theme-park business models e.g the Animal kingdom lodge inside Disney world
-         convention hotel business models e.g Peace body
-         business hotel business models e.g The Hilton
-         mid priced, family- stay business models e.g Holiday Inn
-         historic hotel business models e.g the Century-Old park avenue hotel in winter park
-         golf and tennis resort business models e.g the Mission Inn in central Florida.
-         Luxury hotel business models e.g The Ritz calton and Four Seasons.

Enyinnaya Nnamdi
Sloane International Investments ltd
CEO
info-sloanebizconsultants@yahoo.com
+23407026341797

Marketing as a business philosophy

Improved standard of living result in more people and further increases in output accompanied by simple mechanization which culminates in a breakthrough when the potential of the division of labouris enhanced through task specialization. Task specialization leads to the development of teams of workers and to more sophisticated and efficient mechanical devices.  A major feature of our own industrial revolution is that production becomes increasingly concentrated in areas of natural advantage, that larger production units develop and that specialization increases as the potential for economies of scale and efficiency are exploited.

Enyinnaya Nnamdi
Sloane International Investments Ltd
C.E.O
info_sloanebizconsultants@yahoo.com
+23407026341797

FINANCIAL TRANSFORMATION

Sloane Business Management Consultants (SBMC) a division of Sloane International Investments Ltd (SIIL) provides business advisory and IT management consulting services to banking, investment, insurance, life & pensions and capital markets clients. Our consultants have a highly successful track record in converting strategy into realistic programme of change, and working with organizations to help implement practical solutions.
Our approach is driven by client demands and business imperatives. This is a necessity in an industry that must continually respond to regulatory initiatives while at the same time meeting the challenges of reducing costs, managing risk and enhancing the total customer experience, working in cost effective unison with a wide range of partners and product suppliers.
Sloane Business Management consultants is an independent consulting firm that understands the needs of clients in the financial services sector, shares their business aspirations and recognizes the challenges. Our consultants appreciate that in today’s complex business world, the best solutions are rarely available ‘off the shelf’ but come from experience, intelligent insight and creative thinking.
Sloane Business Management Consultants work in partnership with clients to supplement their management teams to assess situations, consider issues, identify options, plan change programmes and manage their effective introduction. Our services include:

• Programme governance, including programme and project management
• Electronic document and records management
• Business/IT function outsourcing
• Business transformation
• Aligning business and IT strategy

Programme governance, including programme and project management
We provide experienced consultants to formulate and deliver major programmes of change, using established practices to align investment more closely to strategic goals, enhance accountability for change delivery, improve the realization of business benefits and manage risk more effectively. Our expertise in the financial services sector includes:

• Programme managing the development and launch of new retail financial products
• Conducting programme assurance reviews for a major business change & IT investment
• Providing coaching and mentoring to banking staff to improve the effectiveness of their project managers
• Undertaking a ‘project recovery’ exercise and restoring a major project to good health

Electronic document and records management
EDRM covers the management of information (both structured and unstructured) as a corporate resource, ensuring that appropriate policies and procedures are in place. Information management also includes responding to the broad regulatory requirements. We employ a large number of consultants who are EDRM specialists and offer formal training programmes using the highly acclaimed AIIM courseware. Our EDRM activities include:

• Helping create enterprise-wide records management strategies
• Undertaking a Document and Records Management project prompted by Sarbanes-Oxley

Business/IT function outsourcing
Our consultants assess the business function outsourcing opportunity and examine the viability of forming an outsourcing relationship. We assist with implementation, including the structuring of service level agreements and provide help in managing the outsourcing contract. Sloane Business management Consultants also provides ‘health checks’ and reviews of existing arrangements and offers support for the reintroduction in to the main business of a previously outsourced service. Our experience includes:

• Implementing outsourcing arrangements for third party administration
• Reviewing potential outsourcing arrangements for a major financial institution

Business transformation
We achieve cost effective and efficient methods of working by redesigning operational processes both within and external to the organization. At the same time our consultants normally review and determine appropriate technology solutions. This may involve straight-through processing to deliver cost savings by streamlining the flow of information from customers through sales channels to back-office and outsourced processes. Our work includes:

• Performing a business process re-engineering project across all aspects of sales, document production, supplier interfaces, accounting and compliance
• Defining new service level agreements and redesigning business processes between a financial services organization and one of its clients

Aligning business and IT strategy
Our consultants work with senior management to enable information and technology within the organization to work effectively together, delivering tangible business value. We are also skilled in helping improve the effectiveness of both development and production environments using frameworks such as CMMI and ITIL. Examples include:

• Implementing a new quality management regime into a large and sophisticated IT organization
• Improving the performance and effectiveness of a large-scale IT function by introducing significant process improvements

Enyinnaya Nnamdi
Sloane International Investments Ltd
C.E.O
info_sloanebizconsultants@yahoo.com

Fiscal vs. Annual Planning

Annual, or calendar, planning means preparing financial reports and forecasts to cover a calendar year, such as 2011. Fiscal planning means selecting a 365-day period, such as Sept. 1, 2010, through Aug. 31, 2011. While a firm technically could record historical financial accounts over one period but make future plans and forecasts over another, it is simpler and more common to use a consistent "financial year."

1. Pros of Fiscal
   
   • 
     A business that experiences seasonal demand may find fiscal planning more suitable. This is because the time it receives revenue from sales and the time it spends money to make the relevant products will be distinct and could even be in different calendar years. Selecting a suitable fiscal year makes it easier both to assign specific expenses to specific sales and to apply the lessons learned from one "cycle" for future planning.
   Cons of Fiscal
   
   • 
     Using a fiscal year may make it more difficult to compare performance with other companies in a similar line of business that use either a different fiscal year or use the calendar year. This may be a particular problem for companies that deal in seasonal industries and want to see how well they performed against rivals over a particular season, or want to take account of their likely competition in a forthcoming season.
   Pros of Annual/Calendar
   
   • 
     A sole proprietor may find the calendar year system simpler, as this usually allows him to calculate business profits or losses on the same time basis as calculating other elements of his personal income for tax purposes. Indeed, a sole proprietor or partnership usually has to specifically justify using a fiscal year to the IRS.
     A business that employs staff usually has to file annual wage reports for tax purposes on a calendar year basis. Using the calendar year for all financial records on forecasts thus streamlines the process.
   Cons of Annual/Calendar
   
   • 
     Because January 1 through December 31 is inherently the most popular choice of a financial year, businesses that use external accountants may find it more difficult to get a quick service at a favorable price if they use the calendar year system.

Enyinnaya Nnamdi
Sloane Business Management Consultants
CEO
info_sloanebizconsultants@yahoo.com

STARTING A PROFITABLE CARGO BUSINESS

Domestic cargo business has become one of the most successful enterprises in Nigeria in recent times. The growing need to send both retail and bulk goods by air within the country has contributed to the success of the business. And this has encouraged many to go into it.
Mr. Sola Dada, a 34-year old graduate, was almost getting frustrated after being in the labour market for six years. He was introduced to the business a few years ago. Today, he has a success story to tell.
Operators say you can go into the business with just a little amount of money and expect to start doing well almost immediately, if you are literate and enterprising.
The Managing Director, Ose‘s Transactions Nigeria Limited, Mr. Emma Odia, says many people have become successful by running the domestic cargo agency, which he describes as a flourishing business.
Odia, who is also the President, Domestic Airport Cargo Agents Association, says there are numerous clients seeking to send consignments (goods) to various parts of the country by air, especially from Lagos.
Most goods from overseas coming into the Murtala Muhammed International Airport, Lagos, are usually transferred to the cargo section in the domestic wing for onward airlifting to other states especially Enugu, Port Harcourt, Kano, Yola, Abuja, and Owerri.
Apart from this, the DACAA leader says there are many organisations with offices in Lagos seeking to send their products and other cargoes to stations and offices in other parts of the country.
Explaining how the business works, the union leader says, ”Running a domestic cargo agency is a good business because operators live on commission. It works by receiving consignments (goods to be sent by air) from organisations and sometimes individuals on certain rates, usually calculated in naira per kilogrammes on the weight of the goods.
”As an agent, the airlines help you to convey these goods by charging you lower rates. The difference in the rates is what you get as your commission.”
While outlining the starting steps, Odia explains, ”Starting a domestic cargo agency is very easy. Anyone with a certificate of incorporation of his company can then become a member of the association by paying a membership registration fee of N250,000. From this amount, N50,000 is meant for registration form, and is non-refundable.
”The next step is to have an operations office located inside the Lagos airport‘s cargo section. This is acquired by paying the sum of N250,000 to the Federal Airports Authority of Nigeria as an annual rent.”
Learning the basic rudiments of the business is very easy, according to Odia.
He says the cargo agents either learn from colleagues in the same line of business as they try to get along or they may register at any of the aviation schools located around to acquire the knowledge. This, he says, takes just a few weeks. One of such schools is the Landover Aviation Business School in Lagos.
However, a major challenge currently facing the business, according to the DACAA leader, is the inadequate number of airlines ready to carry the consignments to their destinations.
He points out that for some reasons, Aerocontractors, which used to carry most consignments, has suspended operations, leaving only Chanchangi, Air Nigeria and IRS airlines to do the job.
The development, he says, has led to congestion at the cargo section as the remaining airlines cannot cope with the high demand. He notes that many of the agents, with the permission of the goods owners, are now forced to move some of the consignments by road.
The Managing Director, PTP Nigeria Limited, Mr. Jonathan Eghoboi, another operator, lists various items usually sent in retails and bulk by most clients to include laptops, computer systems, handsets, clothes, bags, communication equipment, electronics and companies‘ perishable and consumable products.
He lists some of the companies which usually send goods at the cargo section of MMA to include Globacom, Conoil, Mobil, Punch Nigeria Limited, AIT and MITV.
”One interesting thing is that apart from these Nigerian companies sending cargoes to other parts of the country mostly from Lagos, Nigerian and foreign traders importing goods from South Africa, Dubai, Hong Kong, Malasia and other countries depend on us to carry them by air to places like Abuja, Jos, Yola and Calabar among others.” he adds
Eghoboi says, ”The way you package your business will determine the extent to which you want to win big clients. Today, there are people who started small just a few years ago and they now have over 82 staff members, and offices located in most major airports in the country.”
An average of N120 per kilogramme on goods is charged, depending on the airline to be used. It is also important to note that the rate depends on the states and distance involved in the movement of the goods. What is charged in Abuja, for instance, is different from the rate in Yola.
The Managing Director, BOHMAT Ventures, Mr. Mathew Oboh, an agent, who says he ventures into the business five years ago, notes that there is nothing the agents do not send by air except arms, chemicals, inflammable substances and drugs.
He says the business is quite lucrative and anyone who is enterprising could become a successful operator in no time.

Enyinnaya Nnamdi
Sloane International Investments Ltd
C.E.O
info_sloanebizconsultants@yahoo.com
sloanebusinessmanagementconsultants.blogspot.com

How to Start a Small Scale Business

Starting a small scale business is a lot like falling in love. It grows on you. Sometimes you may not fancy the person that much, but as you get to know and interact with the person more, they grow on you, and before long, your heart starts to skip a beat.
You do not need a clash of cymbals, roll of drums, thunder and lightning flashes to get your business started. You may not even be thinking of starting a business in the first place. It often starts with your hobby or pet project. Something you have loads of fun doing on the side. You cannot wait to get back from work to jump on it. You are at work or school, but your mind keeps straying to it.
All it takes to move it to the next level is seriousness and commitment. Seriousness in improving your skills through practice and exposure, and commitment in finishing what you started. This may lead you to start a business or build your name into a brand. Somewhere along the line, it grows into a business. Maybe you are building a prototype of a machine that will change the way we do things, taking your cooking or sewing to the next level, compiling a volume of poems, writing a book, songs or film script, creating a masterpiece, composing a song, whatever it is that makes your heart race and soar. A business creates a platform for you to give the world what you’ve got.
At the beginning, you are just pottering around and having fun. You have no intention of going public or turning this into a business. You are just doing what you love. Somewhere down the line, as your product or service begins to make impact, it dawns on you, or you keep getting the comment “why don’t you turn this into a business”, the seed is sown in your mind, and the idea begins to grow.

Enyinnaya Nnamdi
Sloane International Investments Ltd
C.E.O
info_sloanebizconsultants@yahoo.com