Floods, increased insurance premiums, the worst summer for years, rising interest rates, the smoking restrictions, increased utility bills, ever-more stringent legislation, cheap alcohol at supermarkets, yet more proposed alcohol taxes - how much more can the licensee take?
All doom and gloom? Not so. At Guy Simmonds we are in a unique position to see the licensed trade in a wider perspective. Despite all the problems, the industry continues to appeal to people from different walks of life who are attracted to the opportunity of operating their own business and securing an attractive and rewarding lifestyle. We know this from the hundreds of people who graduate through our own award-winning training academy to become the next generation of licensees and acquire very lucrative businesses.
Certainly, we are pleased to report that the trade's recent difficulties have not adversely affected the saleability of licensed property - provided the business is correctly valued and marketed in a professional manner.
So, with continuing strong demand and businesses properly valued, we have just seen a record July and a record summer quarter of sale completions for both freehold and leasehold licensed property.
At Guy Simmonds, we firmly believe that in difficult trading times many prospective vendors are at risk of failing to secure the true value of their business upon sale. It is crucial that licensees who face business difficulties properly address their options. Do they want to sell, invest, develop, or plan a future exit strategy from the trade? It is the job of a professional selling agent not just to take instructions to sell, but to help clients understand and evaluate their options and thereby produce the best possible return for the client.
Many licensees who have been so tragically affected by the recent floods will no doubt be downhearted. But before choosing to sell it is important they take stock and seek advice to ensure they obtain the best capital/investment return for the business they have worked so hard to develop.
The trade has seen many challenges before: the breathalyser, foot and mouth, trade re-organisation after the Beer Orders - to name but a few. Yet it still proves to be one of the most desirable and resilient retail trade opportunities.