Pharmaceutical companies understand how tough life can be. They have to answer to many different “bosses,” not all of whom really have anything to do with driving their bottom-line sales. While they are trying to generate and develop meaningful relationships with the most important clients while determining how best to handle key account management, they also have to address the demands and whines of regulators, auditors and other forces.

The pharmaceutical company must understand that key account management tactics are very important, while also requiring a dynamic approach, flexible positions and creativity. The key account sometimes has several different points of communication within the pharmaceutical company and this can lead to a certain amount of confusion if not handled correctly. However, it is also true to say that these individual “points” could view the key account from different perspectives, depending upon the job level and/or driving force.

Most pharma consulting experts advise us that a sales executive on the front line, if he or she is motivated by revenues, could not ultimately have the best interests of the client or the company in focus. This is often not a cut and dried situation but rather very subtle, and can nevertheless have an effect on the overall relationship between the two organisations.

Key accounts provide a level of cash flow-based stability to a pharmaceutical company that is difficult to replicate. However, the designation of “key account” status should not be given lightly. It should never be decided based on scale alone, and many other factors must be taken into consideration. It is possible that a high-volume could result in a low bottom-line return, due to the cost of servicing the needs of the client and razor thin margins.

Typically in most organisations, 20% of the clients represent 80% of the value and this business metric is well-established. As such, once an account is designated as potentially “key,” it should be segmented and categorised to determine the best approach. A number of different layers of key account management could exist within a typical organisation and all tiers of management, especially those who regularly interact with clients, must receive correct training in the techniques required to handle every level and type of account.

Many different ways exist to segment and categorise a client, when it comes to the designation of key account status and these include the company’s growth rate, its percentage allocation of profits, total annual sales and peer-to-peer comparison.

The pharmaceutical consulting firm will be the first to tell the company that no two clients are alike and furthermore that no two key accounts can be treated the same, either. Generally, pharmaceutical consultants know how to deal with various levels of accounts and can be very helpful in imparting this level of knowledge to the company’s various staffing points. A critical “mission” statement should be determined for each and every one of the pharmaceutical company’s clients, detailing the terms of the relationship accurately. There should be no “stock” description, but as each key account is of elevated importance to the company’s existence, all staff members must be trained to recognise the difference between “apples and oranges.”

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.

Do you see the prospect of buying an existing business for sale as being a leap in the dark, as this discourages many an enterprising individual? If they have never been involved in such a transaction before, it can seem to be very alien. After all, it is not like buying a more tangible product like a vehicle or a house, where in many respects “what you see is what you get.” A business valuation can be composed of several intangibles as well as inspectable assets and in many cases goodwill factors into the equation. Goodwill certainly comes into the equation in a service related business, as does a good client list and as such your process of due diligence will require you to explore and reveal quite a lot as you inspect different documents accordingly.

It’s important to remember that there are two distinct and different viewpoints. The seller will have a clear indication of the worth that he or she places on the business. Expect to see a certain amount of natural enthusiasm, as a lot of hard work and dedication has undoubtedly been put into the business by the outgoing seller. While you should always maintain an element of respect for the sellers’ point of view, you must look at all documentation and evidence in the hard light of day and understand that it is up to you to determine if you should buy business interests according to the specific value you set.

After you decide you need to move forward and you have really determined whether you want to buy a business of interest, get ready for a very lengthy process. During the entire process you must maintain a level of common sense and good humor and be prepared to cultivate a strong level of communication with the seller.

It is highly recommended that you bring in expert advisers and utilize proven resources, especially if you have no real experience of running a business in this line, or niche. This is not to say that you will simply hand off all the work to these advisers, barely looking at the documentation presented to you, as the decision-making must in the end be made by you and you alone. The financial documents and all of the paperwork must be reviewed by you first to be sure that you have a great feeling initially before you hand them over for further processing by your experts.

Always be wary if some of the financial documents are either missing or incomplete, or are not balanced and reconciled correctly. Accounting traditions and precedents must be maintained at all times. You may be asked to sign some non-disclosure or non-compete documents before these are made available, but the financials are the rock upon which everything else is built.

Each and every operation is different in its own right and no two businesses are the same. There are so many different events that can come to bear to create such a variety of external influences and situations at any time. Expect to uncover some unusual facts and figures or surprises and remember that, while industry benchmarks are interesting, a lot of the information you discover here will be a function of real-world activities.

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.

Whenever you buy a business, you will have to refer to a complex set of dynamics and will certainly do some work. The business is composed of a series of tangible and intangible elements and while there are certain benchmarks, often quoted by those seeking to sell at a favorable price, each situation is very different. As such, it can be very difficult for a prospective buyer to value a liquor store for sale, especially when he or she looks at what appears to be a similar prospect nearby at a significantly different price. Why is there so much difference, even though each appears to be similar in type, style and size?

When you buy liquor store business interests, understand that the purchase is composed of many different assets and the entity’s position at any one point in time is dependent on a large variety of factors. Some of these factors could include efforts already put in by the owner, marketing plans, client demographics, a particular focus on services or products, how well the staff interact and so on. It is therefore particularly important that you glean as much information as you possibly can, conduct comprehensive research and be especially diligent before you begin to decide whether it is right for you.

Here are some of the issues you might face when contemplating the purchase of a liquor store:

* its location.
* whether revenue and profits are stable and sustainable.
* the customer database and potential for expansion.
* how portable is the lease and what are the terms and conditions associated?
* demographics and population shifts.
* any pending road construction.
* employee situation – working for cash or favors, such as may be the case with family members.
* look for any opportunities or threats that could impact your revenues in any way.

Bear in mind that the liquor store industry tends to want to focus on industry benchmarks and while this is fine for some outline information, you cannot rely on it. It’s certainly true to say that no two businesses are the same and a variety of focus areas are possible – premium products, beer, wine and cigarettes. Always be on the lookout for abnormalities and if something really jumps out at you, get to the bottom of it. When all is said and done, is the bottom line of sufficient interest to you to go forward?

When you are assessing the business financials and particularly the revenues, you must dismiss any cash sales reported by the owner unless these sales are backed up by audited accounts and are included in tax returns. It is not fair for the outgoing owner to expect to receive value for these sales if he or she has treated them as “under the counter,” especially if they have not been reported for tax purposes.

Inventory offered must be saleable and not be made up of products that are out of date or unlikely to sell. For example, a huge stock of winter ales will not sell well as you enter the summer months.

To establish a base upon which to value and then decide to buy a business, look at net income, add owner salary, any perks, received depreciation and interest and then deduct any allocation for capital expenses. This latter item refers to any perceived payments you may have to make in the short to mid-term in relation to improvements, upgrades or necessary investments.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation – The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business.

There certainly is no feeling of freedom to compare with the joy of being self-employed and truly independent. Running a business gives you the opportunity to dictate the amount you earn and prepare for your future adequately. Proponents agree, however, that it is a significant challenge and that there are, of course, no guarantees! Be aware that there are significant risks associated with buying a business and this concept is not for the faint of heart or for someone who is easily confused.

If you have never run a business of any kind before you may be wondering where to start. You might like to consider buying an existing business as it is true that a lot of the leg work has already been accomplished and the business is established to a certain degree. While this is certainly true, you need to ensure that you walk into any situation with your eyes wide open, do a considerable amount of research, consult qualified experts, ensure that you value the business appropriately and at all costs, conduct your due diligence thoroughly.

If you have determined that you are going to buy business interests, consider all the steps that you will need to take next. Never be tempted to short cut or to let your heart rule your head. You can build up quite a lot of enthusiasm as you consider the prospects that may lay ahead of you and this may lead you to jump in front and short cut the natural process of discovery if you’re not careful. If you don’t watch out, serious problems can arise.

Time is definitely worth money, but any time spent in preparation here will be well spent, even though it may be a lengthy process as any successful entrepreneur can attest to. Those individuals who have bought a business for sale before will testify that their upfront efforts pay significant dividends as they move forward. As such, expect to spend money researching your business in terms of time at the very least, invest in educational materials, and you won’t be tempted to try and rush through the process.

The self-employed business person possesses a certain number of essential personality traits and if you’re looking to buy a business, you must also be positive and realistic throughout the process. Right at the top of your list should be common sense and a realization that if something appears to be “too good to be true” then it always is, without question. Keep a good sense of humor as you go through this lengthy procedure and keep a positive attitude.

It’s essential to strive to be a good communicator, as you certainly will need to be, as the seller and other interested parties must be grilled for information, as you impart your needs and requirements to them. By asking the right questions at the right time, you can determine a lot from the answers that you receive.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation – The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business.

The healthcare industry was one of the few growth areas during the recession of 2008 and 2009, and in the United States was front and centre in the news as Pres. Obama’s promised health care reform took a considerable amount of time in Congress. Indeed, the healthcare business was a pivotal part of Obama’s campaign and he wasted no time in prompting both houses of Congress to consider change. Could it be that we are poised for a momentous change in this industry, one which will reach every person in the country, ranging from individuals through insurance companies, hospitals to pharmaceutical companies? In these tumultuous times, the role of healthcare and pharmaceutical consulting organisations will be pivotal and all the skills possessed by these companies will be necessary as changes are processed and results analysed.

Healthcare will be a growing industry for the foreseeable future, especially as the generation known as “baby boomers” comes of a certain age, representing a strain on the overall health care system. A pharmaceutical company will need to be on its toes, innovative and ready to provide additional products and services. The marketplace is sure to get more and more competitive.

A spotlight will always be trained on costs and the role of the insurance company as intermediary between both ends of the spectrum. Healthcare professionals are sure to receive pressure, as they weigh up the advice that they should give their patients in the light of new rules and rafts of legislation. All in all, a great period of uncertainty can be expected in what is already a pressure filled industry.

In the future, pharmaceutical consultants, already in high demand, will be even more valuable as the role of pharma consulting extends to decipher these new rules and implications. A company’s workforce will benefit from the training provided by these consultants, as they deliver results and draw on years of experience, training and expertise. Executives from the parent company must spend as much time as possible dealing with the principal concerns associated with production and regulation. They should devote valuable time to staff administration, maintenance and training. To help ensure that sales executives are deployed correctly and return as high a value as possible to the company, the pharmaceutical consulting firm is ready and willing to take on this important task.

The healthcare business is one of our most dynamic industries and pharmaceutical and healthcare consulting is a critical internal component. The pharmaceutical company faces significant pressures from a wide variety of interested parties, not all of whom can be considered to be “friendly.” A pharmaceutical consulting firm is best positioned to advise the company’s executives, by interpreting each position and working out how to approach and handle each party from a position of strength. The consultant can be a valuable ally and an extra pair of eyes and ears, to help the pharmaceutical company navigate through challenging, risky, yet potentially lucrative times ahead. The company is advised to consider a long-term engagement with the pharmaceutical and healthcare consulting firm accordingly.

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.

Effective implementation is critical for any organisation engaged in today’s cut-throat business world, as with traditionally slim margins the difference between so near and yet so far can aggregate into a considerable problem. There are so many potential stumbling blocks that even the most experienced sales executive can miss the target, and yet it’s still important to focus on each one to move closer to a higher closing rate. While there is little that business chiefs can do to affect the closing rate when the sales executive is in the field and meeting prospects face-to-face, there is much that they can do to prepare the employee to engage in the first place.

First and foremost, the sales executive must cultivate the trust of the client. He or she must earn the trust and must do everything in their power to create the right impression, both personally and professionally. It will likely be necessary to engage, with numerous visits and interactions and be consistent at all times. At the very least, the executive must be prompt and attend all meetings on time, must call back as promised and follow-up any questions asked. The professional will be looking for the right information and will expect the sales executive to know what he or she is always talking about, without question. In the pharmaceutical industry, professionals and practitioners can be somewhat jaded and are used to dealing with executives from pharmaceutical companies that promise the earth, but don’t deliver. Through bad experiences, they may expect a representative to be interested in just selling and will have set up barriers accordingly, meaning that the first meeting or two would be involved in the breaking down of barriers in search of trust.

Once a position of trust is established and the potential client actually believes in the executive and sees potential for a future, there is more than just a foot in the door. This is not to say that sales will be a guarantee, but unless you reach this critical position you have very little chance of ever reaching the “Holy Grail.” A sales executive should never be afraid to call in testimonials from other established and happy customers, especially if the target has a personal experience with the provider.

Invariably, pharma consulting firms talk about the importance of effective implementation and the various tactics required to get the prospect to agree and to say “yes.” The modern-day sales executives should realise that most of the “old” techniques are so hackneyed that they should be laid to rest. After spending so much time building up trust with your prospects, trying to use any pressure tactics to exert sales, be they subliminal or not, can be disastrous. Time is so important and effective use of this resource will surely tell whether the sales executive’s day will represent success and profit to the employer, or not. It’s no surprise that pharmaceutical consultants know all about the various sales techniques required, especially whether they are pertinent to the industry or not. A pharmaceutical consulting firm is of great potential benefit to the parent organisation and can often help to ensure that effective implementation is front and centre to the sales executive’s approach.

Alan Gillies is the Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.

Buying a business for sale is a multi-step process and each step is important. You should never think about proceeding to the next position until the preceding step is complete and whatever you do, don’t be tempted to short-cut ever. You can view any time spent in preparation and in the revelation of facts and figures about the business to be well spent and as such you will be ensuring that no horror stories come back to haunt you when you take over.

Before you even start to talk to a prospective seller, a great deal of information can be revealed. But hold on for just a second, are you really sure that you possess the level of enthusiasm you need for this type of business? Do you really want to be involved in that industry and does it represent an area that you truly want to be engrossed in? Be advised, that unless you want to be a completely “absentee” owner and are considering the many additional steps that you need to take if this is the case, you should be enthusiastic about the business that you are getting involved in.

A process of due diligence requires you to inspect all kinds of documentation:

* Financials: these documents will include balance sheets, payroll records, tax reports, reconciliation documents and profit and loss statements. If the seller claims a considerable amount of “cash sales” but cannot point to these within tax declarations, then they cannot be counted and you must ignore them.

* Employee records: including longevity, pay scales, behavior, and attendance.

* Licenses: these will include county, city, state and federal licenses, as well as any certification you need to operate the business. It would be in your best interests to look at records independently, certainly if you believe there may have been any problems in the past or possible discrepancies.

* Equipment records: detailing the age, cost of replacement, any required inspections and associated results and details on maintenance investments.

* Inventory records: re-saleability, turnover and overall condition.

* Supplier contracts: including portability, alternatives and goodwill.

* Property records: are any rental agreements transferable to you without any problem, as this can be particularly important.

If you find that all records, licenses, contracts and agreements are in order and are workable for you going forward, you may be wondering how to arrive at a good value when you buy business assets. There are many different ways of looking at this. Some of the methods used to calculate include:

* Asset-based multipliers, where assets are totalled and value is determined.

* Rule of thumb, where industry benchmarks are used to establish the value (not recommended).

* Revenue-based multipliers, are where a percentage or a multiple of the monthly or annual revenue is used. Again not recommended.

* Cash flow multiplier – where the business owner’s profit is added to the salary and realized perks, with a number of expenses deducted. This is most often the most appropriate way of valuing the business for sale.

While there are many documents and figures that can be proven to backup an owner’s claim, or not as the case may be, you need to take into account significant facts. What is the age and reputation of the business, the level of competition expected, its physical location in many cases, the legal structure of the business, the quality of the premises and/or the difficulty in obtaining a new lease. When it comes to a business for sale, all will help you to determine whether you should buy a business like this, or not.

Richard Parker is the President and founder of the prestigious Diomo Corporation – The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.

For the would-be entrepreneur, a food and beverage industry option can be very attractive. After all, each one of us must eat and drink to be able to survive and we have to pay much attention to the fundamentals! While this may be the case, there are many complex and interrelated issues to consider before you buy a business involving an existing restaurant and it’s important to bear in mind that less than one in 10 purchases will actually succeed. Correct valuation upfront and an adequate process of due diligence will help you to survive against these odds and prosper.

One of the key skills that you can possess when you get ready to buy restaurant business assets is the ability to communicate and to decipher information. A number of meetings will be required with the seller and don’t be frustrated if the meetings don’t reveal some of the significant information. Normally, a seller will want to be just a little protective and will want to see how enthusiastic you are or whether you are really serious before any important data may be divulged.

There are some basic facts and figures to absorb before you are able to project your own figures for the future. What style of food does the business favor and how many tables are there in the restaurant? You need to know how many meals are served per day, per week and by month and if the menu is somewhat specialized, are the supplier contracts strong enough and is the supply chain sufficient?

In any business, labor costs are significant. How do the costs breakdown in this particular business and be careful if the strength of the organization is entirely based on certain personalities, key figures, or even the master chef. Tread carefully here as the seller may well want to keep news of the potential sale away from his employees, so you might not get some of the finer details right away.

When you start to compose a check-list of questions for the owner – and you might find you have hundreds, don’t be afraid to be as specific as you need to be and insist on appropriate answers. As you are preparing your position, though, remember that this type of business will call on very long hours and is typically a seven days per week activity. You will definitely be required to be good at managing people, dealing with significant problems and you might have to be patient before you can expect to see any profit from your endeavours.

As a new owner, you will need to set up and develop new relationships with all your suppliers. Sometimes certain suppliers may view a change of ownership as their chance to amend contracts to their benefit. You must be able to deal with distraught people, who may be upset because their table is not available, even though they booked it but arrived late. Employee motivation is very important and you should be ready to deal with every situation as it arises, whether that means praise or even termination!

When you’re sure that you are cut out to buy business interests in the restaurant industry, have tabled the right questions and received the comprehensive answers, are happy with your interpretation of the financials and contracts, then you are ready to discuss the value. Experts in this field should be engaged to help you understand what you are dealing with and you should use their findings to help you solidify your thoughts. If you know what the business bottom line is, the salary take of the owner, net profits and owner benefits, then you should adjust this figure according to any capital expenditure you feel is important.

With a restaurant for sale, expect your three major costs – food, labor and rent to be no more than two thirds of your total expenses and make sure that you have a first-class marketing plan so that you can tell the world about your new baby.

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation – The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business.

To buy business assets can be a daunting prospect, especially if you have not done this before. While it may be somewhat easier than establishing your own operation from scratch, understand that you are taking on, in many respects, the liabilities of somebody who is a complete stranger to you. To start off, you will be presented with many internal documents and will be able to look at the inner workings of the business for sale, but you must essentially be able to read between the lines and must not veer off-line, so a due diligence checklist is essential.

Many of the business owners you will come across are diligent and enthusiastic people, are justifiably proud of their creation and really want their baby to be nurtured and cared for by a new and careful owner, but you cannot assume that this is always the case. This is not to say that you have to assume the worst at all times, but you can never take any statements at face value and always have to be sure that there is proof to back up any claims made. Expert analysis will come in very handy here as you get ready to buy a business and you should seek out business experts, accountants and financiers right now.

Primarily, you are now engaged in the process of setting value. Undoubtedly, each of the parties – the buyer and seller, will have a different interpretation of the value of the business. The deal is only consummated when both parties are happy, but remember that it is up to you to determine the specifics under which you are willing to do the deal.

If you buy a business, a number of steps have to be taken as you go through your due diligence checklist and as you proceed, all the inner workings of the business will be revealed to you. Never rely on industry benchmarks, even though they may be useful for your information gathering purposes. The most recent financial documents are of the greatest importance and they should never be glossed over even though you have very many documents to check through. You may look at a particular business asset and think it is very interesting to you, but you should not skim over some of the less palatable figures that you are presented with under any circumstances.

Some of the important factors to consider when assessing the value of a business for sale include the scope and level of services on offer and the potential for expansion, the age and established nature of the organization and, most certainly, its reputation in the marketplace. Get a good impression of the competition in the industry and in the local area and understand that location may be the most important asset of all. If the business you are considering is principally Internet-based, it may not even have a “bricks and mortar” location. While the physical location in this case may be of no consequence, make sure that you understand the importance of conducting a thorough “due diligence” process, come what may.

Time spent going through this process of revelation as you work your way through your due diligence checklist, will be well worthwhile. This entire process may take you weeks rather than days, especially if you need to analyse daily operations, client interaction and staff behaviour, for example. Be prepared for a lengthy process and you will not become overly anxious to consummate an early deal.

Richard Parker is the President and founder of the prestigious Diomo Corporation – The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream to buy a business.

A pharmaceutical company can spend a considerable amount of time and effort developing and bringing new products to the market and be rightfully proud of its contribution to the healthcare industry. Such a company can spend enormous sums of money and many a late-night hour as it deals with the necessary consultation and lobbying, just as it puts up with endless layers of bureaucratic red tape. Ultimately, success boils down to the importance of effective implementation at the sales level. At the highest level of a pharmaceutical company, resources should be set aside to engage a pharmaceutical consulting firm, enabling you to focus on implementation and the achievement of meaningful results. The senior executives of the parent company are much better off allocating their precious time to product development and legal issues, leaving pharmaceutical consultants to help with specific training and methodology.

One of the primary reasons why a sales team member may fail to consummate a deal with the prospect is due to a lack of understanding of the potential client’s problems, issues and concerns. He or she should remember that financial details associated with the sale are not to be treated as primary, yet much further down the list. Today, the marketplace is very competitive and it’s not realistic to assume that a product will be sold just because it is available. On the contrary, many questions arise and all issues must be dealt with before the front-line professional will be at all ready to even trust the business, let alone engage and move forward. A hard approach to selling will definitely not work in this arena and any sales executive who comes to the business from other industries should be given specific attention by the pharmaceutical consultant.

When interacting with the client, pitching the benefits of the product must await its particular time and place. Due to unwelcome hard sales tactics deployed by old style salespeople, a certain lack of professionalism and the emergence of years of distrust, a degree of hostility can be expected in any potential relationship at a primary stage. This is a significant barrier to overcome and the establishment of trust is one of the primary keys to help build the executive’s ratio of effective implementation.

These days, pharma consulting firms are well versed with the difficulties ahead, have considerable practice in the industry and know how to overcome the expected barriers. This will require a focused approach, the training of adequate sales techniques, an understanding of territorial application and time management and, of course, product education, as without all these the sales closure ratio will be poor. As margins are so narrow, the company does not have the luxury of padding in this area and must ensure that the pharmaceutical sales team is as prepared as humanly possible to engage in bringing results.

Motivation is important when it comes to the sales team’s results, but financial remuneration or a convoluted bonus structure should not be primary, rather job dedication and performance satisfaction should be powerful incentives themselves. Financial remuneration alone will always tend to skew the executive’s approach to the task and he or she may not view the consummation of the deal as a two-way and ongoing relationship with a new client.

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.