Liquor License

2015-09-09T09:37:00.000+02:00

Business Rights

Zoning

Zoning of a property is the regulation put in place to preserve the character of the area and in turn regulate health, safety, welfare, morals, and limit nuisance disturbance to land users. Zoning must promote land use to the best interest of the occupants. It acts as a stabilizing factor in neighborhoods and preserves the character of the community.

The essential purpose of Zoning is to segregate Residential, Agricultural, Commercial (business), and Industrial areas from one another.
Regulations have been put into place to protect residential areas from encroachment by petrol stations, businesses causing a nuisance, factories, liquor outlets, and other disturbances.

Factors taken into consideration are traffic, character of neighborhoods, the fitness of the land involved and influence on property values.
The Zoning of a property regulate, among other things the Nuisance emanating from the use of a property. That is “An unreasonable, unwarranted or illegal use of property that infringes the rights of other people.” Therefore the quiet enjoyment of a person’s property is invaded by a person, causing the nuisance without that individual actually physically invading your property. A nuisance can affect one’s health, morals, safety, welfare, comfort or convenience.
It is therefore important to ensure that the proposed property is correctly zoned for the Application of a Liquor License. If you apply for a liquor license on i.e. a residential zoned property your application may be refused, resulting in a financial loss. The Municipality also has the right to close down your business if you trade on a premises Zoned for residential.

Before you apply for a Liquor License

To make sure that the Zoning of the proposed premises does not prohibit the application of a Liquor License. You can apply for a Zoning Certificate at your local Municipality. Under the Gauteng Liquor Act, the applicant of a Liquor License in Gauteng for a Liquor Store, Pub, Tavern, pool club, and Night club must obtain, in writing, a local authority approval to apply for such a liquor license. This is in addition to any Zoning laws. It is advisable not to apply for a liquor license if this is not in place.

www.liquorlicensing.co.za

For More information on liquor licensing contact
Elmien Liebenberg074 373 1888Frik Liebenberg082 556 8368

We Also sell businesses in The Vaal Trianlge
For more information contact
Frik Liebenberg
082 556 8368

2015-06-01T15:00:00.000+02:00

We would like to take this opportunity to congratulate

Eagles Rest

on the approval of their liquor license.

Thank you so much for using our services

For More information regarding liquor license applications click on the link provided below.

Or you can Contact us on the Following.

Frik: 082 556 8368

Elmien: 074 373 1888

www.liquorlicensensing.co.za

Congratulations to Lord Signature Hotel On the Approval of their liquor license.

2015-06-01T12:52:00.000+02:00

We would like to take this opportunity to congratulate

Lord Signature Hotel

on the approval of their liquor license.

Thank you so much for using our services

For More information regarding liquor license applications click on the link provided below.

Or you can Contact us on the Following.

Frik: 082 556 8368

Elmien: 074 373 1888

www.liquorlicensensing.co.za

Congratulations to Butcher's Deli and Diner on the approval of your liquor license.

2015-06-01T12:44:00.002+02:00

We would like to take this opportunity to congratulate Butcher's Deli

on the approval of their liquor license.

Thank you so much for using our services

For More information regarding liquor license applications click on the link provided below.

Or you can Contact us on the Following.

Frik: 082 556 8368

Elmien: 074 373 1888

www.liquorlicensensing.co.za

Verification of all Liquor Licenses in Gauteng.

2015-03-20T11:34:00.002+02:00

Verification of all Liquor Licenses in Gauteng.

The Gauteng Liquor Board has released a list of about 9484 liquor licenses, which may not be valid to trade alcohol for various reasons.

All licensed Liquor Traders must verify and update the status of their Liquor Licenses.

Failure to verify your license will result in your license to be declared null and void.

You will therefore not be allowed to continue trading.

You can verify your Liquor License by visiting the regional office in your area or you can instruct Frik Liebenberg Liquor License consultants to complete the verification process of your liquor License.

Frik Liebenberg Business Advisory Services cc 99/05522/23

0743731888 - Elmien

082 556 8368 - Frik

frik.christien@gmail.com

www.liquorlicensing.co.za

www.businessexperts.co.za

Establishing a Pub Gauteng

2015-02-23T12:55:00.000+02:00

Establishing a PubGauteng

Introduction.

The intention of this exercise is to assist the first time entrepreneur to note some factors which might influence his/her decisions when establishing a new Pub.

The intention is NOT to give legal or financial advice. All information is available for the entrepreneur to use at his / her own discretion and risk and Frik Liebenberg Business advisory services cc does not except any responsibility whatsoever for losses which the entrepreneur may occur when using this information. This information is by no means comprehensive and must be adjusted to suit specific situations and to suit provinces other than Gauteng.

Opening a new Pub is an exciting venture but not without risk.

Before you jump in and start spending money on your new venture, stop and read these few pointers that may save you money and loads of frustration.

The question is often asked “Where do I start?

1. SAPS Clearance.

You need a SAPS clearance certificate confirming that you do not have a criminal record. This step can take up to six weeks, so start with this before you do the rest.

Take a copy of your I. D. document and R59.00 to your local SAPS during office hours.
Ask them to do your fingerprints for the purpose of an application for a Liquor License.
Once you have your fingerprints taken, hand the fingerprints together with your receipt of R59.00 and a copy of your I. D. document to:

The Criminal Records Centre, First floor, Bothong Plaza West Building, 271 Francis Baard Street, (Previously Schoeman Street) Pretoria and deliver the original Police clearance Certificate to our office

You can send us the original finger prints, copy of the receipt of R 59.00 per set of finger prints and a copy of the Identity Document/s and we will deliver it to Pretoria and arrange for collection at an additional cost of R 800.

2. Premises.

You need premises before you can even apply for a Liquor License. The public area must not be less than 30m2. The ideal is that your premises are +500m or more from a church, school. However this is not always possible. Do not start spending money on renovating the existing building or start building a new building or sign a lease contract on the building before you have cleared the following:

Visit your local Municipality’s Town Planning or Land Use department and confirm with them that the premises or stand that you want to use are suitable for a Pub. (You need the ERF number of your premises)
Request a Zoning certificate from the Municipality on the stand that you intend to use. Your Liquor License Consultant must be convinced that the zoning is correct. In Gauteng you need a Local Authority Approval (A letter confirming you may apply) for a Pub in addition to the zoning certificate.
Negotiate a Lease Contract. If you are not the owner of the property then you require a lease contract between you and the landlord. Be careful when signing the lease contract. Read the conditions very careful, especially with regards to the following”

1. Escalation clause. This means the amount the rent will increase after every year. An annual escalation of up to 8% is acceptable in today’s economy. (Do not accept a 12% escalation clause for this is too high in today’s terms 2014.)

2. Right to renew. The renewal clause gives you the right to renew the lease contract after the expiry of the lease. There should be a % increase or a rand figure of the first year’s renewal increase in rent with an escalation clause for every year thereafter until the end of the renewed contract. The applicant is welcome to contact the writer for more information. (Do not accept a clause stating “The lessee has the right to renew the lease contract, without a clear stipulation of the cost of the lease after renewal.)

Note: The monthly payments stipulated on the lease contract can be inflated by the lessor’s on-costs such as administration cost, security cost, cleaning cost, rates and taxes etc. Establish first what extra cost will be charged before you mak a decision.

A guideline on the influence of rent on the profitability of a Pub is that if the rent is in the region 10% or more of a Pub’s turnover, you are paying too much rent which will inflate your overheads out of proportion.

3. SARS clearance.

Apply for your Tax clearance certificate at SARS. If the applicant is a juristic person such as a Company, the Tax Clearance must be in the name of the company otherwise the tax clearance certificate must be in the name of the applicant/s.

4. Liquor License Application.

Contact a reputable Liquor License Consultant to give you a quote clearly confirming all cost. Investigate the Liquor License consultant and ask for references. Make sure you know what is included and what is excluded in the quotation. Apply as soon as possible because a Liquor License Application can take a long time. (4-6 months or longer) You can apply on existing premises or on a stand on which there is no building yet.

Your Liquor License Consultant will give you a list of requirements for a Liquor License Application.

Don’t attempt to do a DIY job on your Liquor License application unless you are fully familiar with all aspects of the Liquor Act.

Section 23(3) of the Gauteng Liquor act reads: “Where an application for a license has been refused by the Board, no new application may be made in respect of the same premises within a period of one (one) year from date of refusal,........” If it takes six months before you receive a refusal from the board it means that you have wasted 18 months before you can apply again and then you might wait another 6 months before your application can be approved. That could mean 24 months which you might pay rent on an empty shop.

5. Start planning your shop.

Decide on your target market. (High income, Medium income or Low income group). Your products that you will sell and your shop furniture depends on this decision. (As well as the outlay and image of your shop).

Pay attention to the condition and suitability of the shop’s floor. If it needs replacement, estimate the cost. The shop floor is part of the image you wish to portray. It must be practical for high traffic, easy to clean and non-slip.
Painting and renovation the shop. Estimate the cost to paint and renovate. Choose your colours wisely. Steer clear of a dull neutral colour.
Determine the security requirements and cost such as burglar bars, safety doors, alarm system, armed response and new locks for the shop (Don’t use the old locks. You don’t know how many keys are floating around.) Install security mirrors, CCTV cameras, dummy cameras, an alarm system with armed response and safes
Design and estimate the cost of the signwriting and promotional material. Proper signage and graphics are crucial to establish brand recognition and must portray the message load and clear that your shop is a Pub. Decide on a Name and Logo and colours of the business. (Remember your business must “jump out in the street”. It simply means that your business must not melt into the surrounding shops but stand out very clearly) You must be able to read the signwriting and advertisements while driving at 60 km/hour. Rather write less than clutter the signboard with too much information. Items may include Neon Signs, Banners, Store Front Signs, Displays and message sign boards.

The lighting of the shop is important. It must suit the required ambiance of the type of business you intend to operate.
Bar Counter and Shelving. The Bar Counter and Shelving should be strong to support the weight of the liquor on display. Instead of storing your products in a store room, you can create attractive displays with it. Your shelves must be fully stocked. It creates the impression of a successful store. Avoid partially stocked shelves. Wall shelving must cover the walls, contribute to the image of the shop and must suit the shop's decor. A good idea is to use the open space above the wall shelving for promotion or alternatively it can be boxed with cladding or similar.
Impulse buying Countertop Display. Well selected display of smaller items usually bought on impulse can be displayed on the back counter or shelving.
Temperature control. Decide if an air conditioner is required to control the temperature in your shop.
Point Of Sale System (POS) and software. The liquor trader must employ a powerful POS system to control his cash flow, stock, shrinkage, and sales statistics. Contact a reputable POS supplier and decide on a system that will at least scan each item, adjust the stock level automatically, have a complete stock control system in place that will show any theft or shrinkage after each stock take, have a minimum and maximum stock level control with a re-order level flag. It must show the cash at hand and control the empty bottles.
Establish the suitability, quantity, safety and convenience level of the parking for your customers.
Decide on your pricing strategy. Visit opposition shops and determine their prices. Find out from suppliers the cost price of your products. Decide on a price mark-up percentage. It is not a good strategy to be the cheapest in town and never start a price war!
Decide on your product strategy. The type of products you will sell depends on your target market’s income and preferences. Initially and before start up it is difficult to know for sure what products are fast movers, however you can talk to other dealers who are outside your influence area. Establish the fast moving stock and list them.

Unfortunately you can not only stock fast moving stock. Some stock should be kept as a service product to customers who are seeking alternative products.

Your shop should be well stocked and must look successful. Do not allow partly stocked shelves but rather reduce the number of shelves. Keep them stocked to the brim.

Diversify. If you want to stock products other than liquor and smokers requisites, you need to apply to the liquor board to stock such items. Examples are rugby shirts, flags, biltong, braai equipment and other paraphernalia.

Initially stock high priced items such as exclusive wines and whisky with care. Keep a low stock of it until you have established the demand for it.
Compile a Suppliers List with alternative suppliers. Your purchases can influence your profit margins dramatically. Shop around for better deals. Do not buy from the local Liquor Store. Your relationship with your suppliers is critical. Try to line up alternative suppliers where possible. This should include refrigeration mechanics, electricians etc. Some suppliers offer a percentage discount on bulk/case purchases. Buy all your fast moving stock from them. The slow moving stock can be purchased elsewhere and in smaller quantities.
Decide on an Employment Strategy. Many successful businesses have failed because of employees. Take note of the following:

1. Do not employ anybody to do the work that you can do.

2. Work out your budget and cash flow before you employ anybody. It is not fair to an employee if you inform them soon after you employed them that you can not afford them.

3. Do not trust anybody. Ensure strict financial a stock control. Do your own buying and stock control. Ensure that your employees have no access to the Point Of Sale systems manager’s files. You as the owner must enter all stock delivered into the computer program and NO staff member may have any access to that program.

4. Follow up the applicant’s previous employees and get a reference.

5. Follow up the applicant’s qualifications.

6. Draw up disciplinary procedures for the employees. If an employee is found guilty of theft, do not only dismiss the person. Lay a criminal charge against that person and prosecute. Otherwise the person moves to a new liquor store and repeat the the same.

Insurance cost. Some lease contracts requires the lessee to insure for shop- front windows and other breakages. Also insure the Stock and Equipment.

· Register with the Receiver of Revenue such as Income Tax, Employees tax (PAYE), Value-added tax (VAT) if applicable, Unemployment Insurance Fund (U.I.F.)

· Apply for a Business License (if applicable) at your local Municipality.

· Appoint a registered accountant. Seek advice from your accountant on VAT registration and tax issues. You can save substantial amounts of money by using professionals.

· Decide on your business hours and stick to it. Advertise it at the entrance of the shop. You should keep in mind the security aspect inside and outside the shop.

· Decide on the legal entity of the business such as a Sole Proprietor, Company (Register the Company) or partnership (Draw up a partnership agreement).

· Banking. Negotiate with different banks the Cash deposit fee charged by that bank. (Cash deposits can attract huge bank charges) Then open an account.

· Order your stock. Ensure that you do not run out of stock, but do not over stock.

· Credit card machine. Negotiate with your bank for the installation of a credit card machine.

· Before opening buy an advertorial in the local newspaper with opening specials. Limit the specials both by quantity and time period.

6. Budget.

Work out a Budget. Without a Budget you can fail before you opened your doors. Remember to budget for the actual and hidden cost which are listed but not limited to the following:

1. Cost of the Liquor License Application.(± R13500 in 2014)

2. Cost of your first payment to the Liquor Board on approval of the Liquor License. ±R1500 in 2014)

For more information please click here

3. Rent deposit.

4. First months rent in advance.

5. Cost of stock.

6. Electricity deposit.

7. Painting and renovating the shop.

8. Tiling the shop floor. (if required)

9. Lighting and wiring. (if required)

10. Burglar bars and safety gates.

11. Alarm system and camera system.

12. Signwriting.

13. Stationary, printing etc.

14. Cost of equipment, furniture and fittings plus installation.

15. Cost of electrical installation of equipment

16. Cost of Point of Sale system and software.

17. Plumbing. (if required)

18. Trading License.

19. Computers and software.

20. Employment contracts.

21. Cleaning material and equipment.

22. Transport. (initially you can survive with a trailer)

23. Cost of rent while waiting for the Liquor License.

24. Installation the alarm system

25. Glasses.

26. Telkom line.

27. If your business is in Gauteng order a sign with letter 50cm high for the front door which displays the following:

Name of Business.

Type of Liquor License (i.e. Restaurant)

Trading times of the Business.

Liquor License Number.

28. Fire extinguishers.

29. Pool tables / dart boards.

Some notes.

Make sure that the electrical distribution board of the shop you have decided to rent have the capacity to carry the electrical load of your equipment. Your lease contract may have a clause placing to onus on the tenant to ensure that the shop is suitable for your purpose. They will not rewire the electrical distribution board.

1. Minors. Section 46 of the Gauteng Liquor act 2 of 2003. A licensee shall not sell or supply liquor on the premises to persons under the age of 18 years....

2. Intoxicated persons. Section 47 of the Gauteng Liquor act 2 of 2003. A licensee shall refuse to admit to the licensed premises or any part thereof, or sell or supply to an intoxicated person and shall have such person removed from the premises or any part thereof. (An intoxicated person is when his/her capabilities are so impaired by liquor that he/she is likely to cause injury to himself/herself or be a danger or nuisance or disturbance to others.

3. No liquor may be consumed outside a Pub.

4. Business Hours: Gauteng Monday – Sunday 08h00 to 20h00.

5. Weddings and functions.

A Pub license does not allow you to set up a Bar at a function. Your license only covers your registered premises and within the constraints of your floor plan approved by the Liquor Board.

6. If the Liquor License is in the name of a Company or Close Corporation.

If the license in in the name of a juristic person as mentioned above, a natural person must be appointed to manage the Pub. Contact your Liquor License consultant.

7. If the License holder is not the person who is running the Pub on a day to day basis.

Then a natural person who is running the business on a day to day basis must be appointed as Manager

8. Cash flow is very critical. Don’t buy anything except stock. Avoid “Nice to have” equipment and buy them when your shop is profitable. Many a profitable shop has closed down because the owner ran out of cash.

Once your shop is profitable, save at least six months overheads and invest it in a sixty day account.

9. Makro factors influencing the sales of a Pub.

As with all businesses there are distinct factors, which are out of your control, that influence the turnover of a Pub. If I may grossly generalize the following cycles may be observed.

1. Weather. – The higher the temperature the higher the sale of beer and beverages. There is a distinct drop is beer sales during rainy and cold days.

2. Sport. – Sport such as an important rugby / soccer match can influence your sales.

3. Weekdays. – Generally Mondays are much slower than Friday or Saturday.

4. Months. – Generally November and December are the busiest with February the slowest. Generally in spring sales rise. Easter season will influence your sales dramatically and depending on which days of the week the public holidays are, you will have dramatically lower sales.

5. Festive season. – This is the busiest part of the year. You need to order larger volumes of stock because most suppliers close over the festive season. Initially it will have a detrimental effect on you cash flow if you do not plan for that. You need to plan the fast moving stock such as beer. Again you can order a large quantity of beer for the festive season, and if it rains for three weeks, then in January you can be stuck with a large quantity of beer and a with a cash flow problem. The opposite is also true. If you order too little and run out of stock, you lose customers and sales!

6. Time of day. Mornings are slower and it picks up at 16h00.

7. Time of the month. From the 10^th until the 20^th of the month is usually slower than the rest of the month. But, if your target market is weekly paid customers, the scenario will change.

8. Labour unrest can affect your business in that strikes reduce the expendable cash of your customers. It takes a striker months or years to recover financially after a strike. If the demonstrations are held in the vicinity of your shop, your sales come to a virtual standstill. This can be expected from June to September.

Frik Liebenberg of Frik Liebenberg Business advisory Services cc 99/05522/23 has been a Business Broker since 1997 and a Liquor License Consultant since 2002. Feel free to contact us for further information.

Frik Liebenberg

Frik Liebenberg Business Advisory Services cc 99/05522/23

082 556 8368

Elmien Liebenberg
074 373 1888

frik.christien@gmail.com

www.liquorlicensing.co.za

www.businessexperts.co.za

The National Liquor Authority is addressing it’s challenges head on.

2015-02-18T11:49:00.003+02:00

The National Liquor Authority is addressing it’s challenges head on.

On 3 December 2013 the amendments of the National Liquor Amendment Regulations of Act 59 of 2003 was published.

The amended regulations bring about changes in the submission, processing of applications and the requirements for registration for both Distributors (Wholesalers) and (large) manufacturers of liquor. (This is not aimed at micro-manufacturers as it falls under the Provincial Liquor Act).

Amendment of Regulation 4 is of great interest to applicants;

“Whenever the National Liquor Authority is required to issue a registration certificate, it must be issued within 90 days.

The delays in issuing Registration Certificates under the National Liquor Act is well known, however the National Liquor Authority is determined to address the delays currently experienced with the issuing of Registration certificates for new applications.

On 11 February 2015 Adv. Sandile Nkosi, Acting Chief Director of the National Liquor Authority, invited steak holders and Liquor License Consultants to a consultative session on the Case Management Solution System. The session was highly appreciated by the Liquor License consultants as their input was required.

In short the National Liquor Authority is developing a system whereby the applications can be done on-line and issued without delay.

The developing of the system will take some months, but we hope to have a proto type ready by April 2015.

Frik Liebenberg

Frik Liebenberg Business Advisory Services cc 99/05522/23

082 556 8368

Elmien Liebenberg

074 373 1888

frik.christien@gmail.com

www.liquorlicensing.co.za

www.businessexperts.co.za

2014-09-18T11:07:00.001+02:00

How do I start a Liquor Business?

Introduction.

Before you jump in and start spending money on your new venture, stop and read these few pointers that may save you money and loads of frustration.

The question is often asked:

Where do I start?

You start with your premises. You need a premises before you can even apply for a Liquor License.

Do not start spending money on renovating the existing building or start building a new building or sign a lease contract on the building before you have cleared the following:

Visit your local Municipality’s Town Planning or Land Use department and confirm with them that the premises or stand that you want to use is suitable for the specific Liquor License (i.e. tavern, liquor store, restaurant, pub etc.). Some stands have a Land Use Right for residential, commercial, industrial and other.

Remember that a stand zoned for business may not be suitable for entertainment /amusement. (This includes a Tavern or Night Club License). A stand zoned for residential will not allow a Liquor License unless approved by the Municipality. It is no use to say that there are other businesses in the vicinity of your stand and therefore it should be acceptable. Each stand is zone individually.

(If your stand is in a rural area you need an official letter from your traditional leader confirming that you may apply for a specific Liquor License on your stand).

Request a Zoning certificate from the Municipality on the stand that you intend to use. Your Liquor License Consultant must be convinced that the zoning is correct. In Gauteng you need a Local Authority Approval (A letter confirming you may apply) for a Tavern. Pub, Liquor Store and Night club in addition to the zoning certificate.

Start planning your shop. Decide on your target market. (High income, Medium income or Low income group). Your product that you will sell depends on this decision as well as the outlay and image of your shop.

For a Liquor Store you may decide on a self service or service counter shop. This depends on safety and security in the area. A self service Liquor store will require much more starting- up stock than a service counter shop.

Decide on the minimum equipment that you require for a shop conforming to your planned target market. Source suppliers and secure prices on the equipment. Important is a good Point Of Sale System which is linked to the Cash register and computer.

Establish the suitability of the electrical distribution board of the shop. That is, can the distribution board handle the load of all your equipment without overload trip outs?

Pay attention to the condition and suitability of the shop’s floor. If it needs replacement, estimate the cost.

Determine the security cost such as burglar bars, safety doors, alarm system, armed response and new locks for the shop (Don’t use the old locks. You don’t know how many keys are floating around.)

Design you signwriting and promotional material. Signwriting must be professional. Take care that the sign can at least be read by someone traveling at sixty kilometers an hour. The sign must be clear and eye catching. Do not write too much on the sign. All other material must be professional and neat.

The lighting of the shop is important. It must suit the required ambiance of the type of business you intend to operate. A dark Liquor store does not contribute to the image of an upmarket Liquor Store or any Liquor Store for that matter.

Ascertain if the premises allow for suitable parking in terms of quantity and safety.

Decide on your pricing strategy. Visit opposition shops and determine their prices. Find out from suppliers the cost price of your products. Decide on a price mark up percentage. It is not a good strategy to be the cheapest in town.

Decide on your product strategy. The type of products you will sell depends on your target market’s income. Establish the fast moving stock and list them. Unfortunately you can not only stock fast moving stock. Some stock should be kept as a service to customers seeking alternative products. Your shop should be well stocked and must look successful.

Negotiate a Lease Contract. If you are not the owner of the property you require a lease contract between you and the landlord. Be careful when signing the lease contract. Read the conditions very careful, especially with regards to the following”

1. Escalation clause. This means the amount the rent will increase after every year. An annual escalation of 8% is acceptable in today’s economy.

2. Right to renew. The renewal clause gives you the right to renew the contract after the expiry of the lease. There should be a % increase or a rand figure of the first year’s renewal with an escalation clause for every year thereafter until the end of the new contract. The applicant is welcome to contact the writer for more information.

3. The monthly payments stipulated on the lease contract can be inflated by the lessor’s on costs such as administration cost, security cost, cleaning cost, rates and taxes and other. Remember the 10% guideline. If your rent is R15 000 your budgeted turnover should be R150 000 for a retail shop. If you don’t expect that turnover be aware.

4. Insurance cost. Some lease contracts requires the lessee to insure for shop front windows and other breakages.

Contact a reputable Liquor License Consultant to give you a quote clearly confirming all cost. Make sure you know what is included and what is excluded in the quotation. Apply as soon as possible because a Liquor License Application can take a long time. (4-6 months or longer) You can apply on an existing premises or on a stand on which there is no building yet.

Compile a Suppliers List with alternative suppliers. Your purchases can influence your profit margins dramatically. Shop around for better deals. Your relationship with your suppliers is critical. Try to line up alternative suppliers where possible.

Decide on an Employment Strategy. Many successful businesses have failed because of employees. Take note of the following:

1. Do not employ anybody to do the work that you can do.

2. Work out your budget and cash flow before you employ anybody. It is not fair to the employee is you inform them soon after you employed them that you can not afford them.

3. Do not trust anybody. Ensure strict financial an stock control. Do your own buying and stock control. Ensure that your employees have no access to the Point Of Sale systems manager’s files.

4. Follow up the applicants previous employees and get a reference.

5. Follow up the applicant’s qualifications.

Work out a Budget. Without a Budget you can fail before you opened your doors. Remember to budget for the actual and hidden cost which are listed but not limited to the following:

1. Cost of the Liquor License Application

2. Cost of your first payment to the Liquor Board on approval of the Liquor License.

3. Rent deposit.

4. First months rent in advance.

5. Electricity deposit.

6. Painting and renovating the shop.

7. Burglar bars and safety gates.

8. Alarm system and camera system.

9. Signwriting.

10. Stationary, printing etc.

11. Cost of furniture and fittings plus installation.

12. Cost of electrical installation.

13. Cost of Point of Sale system and software.

14. Plumbing.

15. Trading License.

16. Computers and software.

17. Employment contracts.

18. Cleaning material and equipment.

19. Transport.

20. Cost of rent while waiting for the Liquor License.

Remember the following when opening: (Some of the following items may be applicable to you).

1. Sign the lease agreement.

2. Apply for the Liquor License.

3. Paint and renovating the shop.

4. Install the alarm system

5. Install the burglar bars and safety gates.

6. Decide on the lay-out of the business.

7. Order and install the equipment, fixtures and fittings.

8. Order and install the signwriting.

9. Register with the Receiver of Revenue such as Income Tax, Employees tax (PAYE), Value-added tax (VAT) if applicable, Unemployment Insurance Fund (U.I.F.)

10. Register with the Health department at your local Municipality.

11. Apply for a Business License (if applicable) at your local Municipality.

12. Draw up employment contracts.

13. Draw up confidentiality agreements with employees, if required.

14. Draw up restraint of trade agreements with employees, if required.

15. Draw up disciplinary procedures for the employees.

16. Appoint a registered accountant.

17. Open a bank account.

18. Decide on the legal entity of the business such as a Sole Proprietor, Company (Register the Company) or partnership (Draw up a partnership agreement).

19. Take out insurance on the assets of the business.

20. Order Point of Sale system and train to use it correctly.

21. Draw up a Menu and recipes if applicable.

22. Train staff.

23. Order stock.

24. Order packing materials.

25. Order stationary and marketing materials (Menu’s)

26. Order Telkom telephone line.

27. Order credit/debit card machine.

28. Order staff uniforms if applicable.

29. If your business is in Gauteng order a sign with letter 50cm high for the front door which displays the following:

Name of Business.

Type of Liquor License (i.e. Restaurant)

Trading times of the Business.

Liquor License Number.

30. Order Signs for the Ladies and Gents toilets where applicable.

31. Order fire extinguishers and signs.

32. Order staff attendance book.

Some notes on a Licensed premises.

1. Minors. Section 46 of the Gauteng Liquor act 2 of 2003. A licensee shall not sell or supply liquor on the premises to persons under the age of 18 years or allow such person..... to be in any restricted part of those premises. (A restricted part is means a bar on any licensed premises in respect of which an on-consumption license has been issued,.....

3. No liquor may be consumed inside a Liquor Store.

4. No Liquor may be removed from an on-consumption premises such as a Pub, Restaurant, Tavern, Club, Night Club, and Pool Club. Hotel etc.

FRIK LIEBENBERG

Cell:082 556 8368

Email: frik.christien@gmail.com

ELMIEN LIEBENBERG

Cell: 074 373 1888

Email: info@liquorlicensing.co.za

www.liquorlicensing.co.za

Lifestyle Living in the koppies at Vaaldam. Vaal Marina. R1.7m

2014-06-25T11:35:00.000+02:00

Lifestyle Living in the koppies at Vaaldam.

Vaal Marina. R1.7m

This four tier property surrounded by indigenous trees and shrubs, with a pristine view of the dam, offers entertainment areas, a landscaped waterfall and a unique dwelling.

Enjoy the prolific birdlife and tranquil lifestyle only experienced in nature. Experience an exclusive and privileged lifestyle.

Phone Frik on 082 556 8368; frik.christien@gmail.com.

Lifestyle Living in the koppies at Vaaldam.

Vaal Marina. R1.7m

The property consists of:

Level one.

Lapa (± 80m2) with modern Jacuzzi, solid bar, modern kitchen, bathroom with shower and built in braai.

Outside is a Boma area suitable for a campfire under the Paper bark thorn trees.

Level two.

Paved parking area, garages, and laundry and a braai area.

Level three.

Entertaining veranda with a view over the moorings of the yacht club, built in braai, kitchen, lounge, bedroom and bathroom.

Level four.

Two bedrooms with a stunning view over Vaal Marina and Vaal Dam and a bathroom.

Security.

High quality burglar bars, safety gates and armed response secures the property.

Reason for selling.

Sadly the owner is retiring to a retirement village.

frik.christien@gmail.com

Frik 082 556 8368

Liquor License: Valuation of a business

2014-04-23T15:02:00.001+02:00

Liquor License: Valuation of a business

IntroductionASales Value...: Valuation of a business Introduction A Sales Value is the Value that a willing and able buyer is prepared to pay for a business, w...

2014-04-23T13:51:00.001+02:00

Valuation of a business

Introduction

A Sales Value is the Value that a willing and able buyer is prepared to pay for a business, with a given Net profit at a given time, taking into account micro and makro factors which have an influence on that business at that given time.

At the end of the day it is market forces that have the last say and the sales value of a business is determined by the Net profit with micro and makro factors adjusting the final calculation.

Ask twenty “experts “to calculate the sales value of a small business and you will receive twenty answers. The value of a business is often nothing more than a perception. The buyer, the seller, the accountant and the short term insurer all have their own values. It is interesting to see the difference in the Value of a Business between the calculations of the accountant of the seller and the accountant of the buyer.

Misconceptions. (a view or opinion that is incorrect because it is based on faulty thinking or understanding.)

1 Multipliers

The desired price was calculated at three or four times the monthly sales. This method was particularly common in the food industry, such as Supermarkets and Restaurants.

The value of Fuel Stations was calculated at Rand per liter sales.

This method of calculating is defective in that the monthly sales can not determine the value of a business. You can have several businesses with the same sales per month, but each have a different Net profit. (the overheads, markup and stock holding all has an influence on the Net profit). Some businesses are open seven day a week; others are open only five days per week. Some businesses are in a very high security risk area others are in a shopping mall. Some businesses are vulnerable to influences such as change in Government legislation, weather or public perception.

The main factor is the Net profit and not the sales or turnover that is used to calculate the Market Value of the Business.

2 Asset value plus goodwill.

A business can have an upmarket image with state of the art assets, but it is running at a loss or is making a very small profit. If there is no or very little profit in relation to the asset value, why would anyone invest money in the business if the investor does not receive an acceptable return on his investment? You can attempt to determine the value of the assets and buy the assets, but as a business it has no value or little value. Further the value of the Goodwill is difficult to determine.

Does Goodwill exist?

Some financial institutions dispute the existence of Goodwill. Let us say you open a fast food restaurant called Rommel fast food, and you are next to a well known Franchise restaurant. Rommel has operated for three months, but the well known Franchise restaurant, which is distributed throughout South Africa and has been trading successfully for twenty years. Then surely the Franchise restaurant has built up a notable Goodwill compared to Rommel.

To start a liquor store, you need to apply for a Liquor License. You can pay rent on an empty shop for say six months before you receive your Liquor License. Then only can you fit the shop with fittings and stock the business.

If you start a new business, you never know how long the business will take to reach Break Even point. (this is when the Business does not make a profit or a loss). Say the Business takes two months to reach Break even point, then you had eight months “loss” before you start making a profit.

Now once your Business is running at a profit and you want to sell the business, the above factors must be brought into the equation. It is true that the buyer can not pay for your mistakes or set up cost. Therefore a newly established business with a small profit can hardly be sold at the set up cost. It is just too high.

Therefore a well established and profitable business does have Goodwill through its name, products, services, customer relations and customer loyalty.

There are exceptions. If you buy a Hairdressing Salon the customers or Goodwill can be attached to the Hairdresser. Therefore, if the Hairdresser leaves very little or no Goodwill remains with the Business.

The following factors influence the value of a Business. :

Type of business
Asset Value
Trading Hours
Lease conditions of the site
Manager or self-management
Debtors and creditors
Stockholding
Method of payment for the business
How long has the business been trading
How long did the seller have the business?
Micro and Macro factors
Labour
Bee laws.
Location
Security
Contracts

Let's evaluate each one individually.

Type of business

During the last few years, well known successful franchise businesses achieved a higher selling price. It is important to note that buying a franchise does not automatically guarantee success. Some franchises are, to say the least, not worth considering at all. Another factor is the required skills that the Buyer must have to run the Business. The higher the skills required of the buyer, the less prospective buyers are available and the price will be relatively lower.

Asset Value.

Asset value plays a roll, but is secondary to Net profit. A business with an exceptional high asset value which is running at a loss has very little Sales value, except for the second hand value of the assets. On the other hand you can have a Brokerage Firm with a high Net profit which is run from a one room office with a few desks and a computer. The asset value of such a business is very low, but the owner earns a hefty income each month.

Trading Hours.

If you compare two businesses which have the same profit, but the one business is trading five days a week and the other is trading seven days a week, then the sales price must be adjusted upwards for the five day week business. Similarly a Business operating at office hours will be more in demand than a Business operating until 02h00 in the morning.

Lease Conditions.

The reputation of the Lessor plays a roll in the pricing, as well as the lease conditions and the monthly rental charged for the premises. The buyer must take note of the annual escalation clause, the lease term offered as well as the clause allowing the owner of the business to sell the business.

Is the Business Manager run or Owner Run.

If the Business is Manager run, the owner has more time for himself. However an owner run Business has more control over the business in terms of new initiatives, customer relations and day to day business decisions.

Debtors and Creditors.

Debtors. The age analyses of the business’s debtors have an influence on cash flow and cost of financing the debtor accounts. Cash businesses are preferred. Debtors who include Government (health, education, etc.) and Municipalities have a negative impact on the price of a Business because of the perception of their neglect to pay within thirty days from invoice. The history of the amount of bad debts will negatively influence the Sales value of a business. Creditors outstanding will influence the price and cash flow of the Business.

Stockholding

The cost of large stockholding and the cash flow required to maintain large stockholding is always taken into account. It must be remembered that on the day of the handover of the business from the seller to the buyer, the agreed stock value might be present, but the fast moving stock might be depleted. This requires an additional amount of cash that must be injected into the bought business. The buyer must ensure that the stock included in the Sales Price is calculated at Cost price and not Sales Price or marked up price and if VAT on the price of the stock, which is included in the price of the Business, is inclusive or exclusive.

Method of Payment for the Business.

If the Business is sold on installment, the price will be higher than for a cash deal.

How long has the Business been trading?

A business which has been trading for twenty years will have a higher price than a business which has been trading for six months. (even with the same net profit)

How long did the seller have the business?

A Business which had four owners in six years will achieve a lower price compared to a Business which had one owner in ten years.

Micro and Makro factors.

Micro factors are factors that you as business owner can control. Makro factors are the dangerous factors because you as a business owner can not control it.

Makro factors can be:

· the building of a new shopping mall which will draw away the business’s existing customers.

· new major opposition opening in the area of the business.

· government legislation.

· new trends, fashion or styles

· weather changes

· labour unrest

· BEE requirements

Labour.

Due to Governments draconian labour laws, the union’s unrealistic demands and South Africans low productivity, Business is steering away from labour intensive businesses. The cost of labour is just to uneconomical to employ a large staff complement in terms of wages, union demands, strikes and low productivity of South Africans. The price of a Business is positively influenced when a business has less staff and which is more mechanized.

Black economic empowerment.

A business which requires compliance with black economic empowerment is avoided and achieves a lower price. It can be argued that a BEE compliant Business can deal with Government and other Parastatal companies. The fact is that they are perceived that they fail to pay within thirty days and the cost of doing business with them is sometimes too high.

A buyer of some businesses buys the business for an income for his family and to create jobs for his/her children. He/she doesn’t want a stranger in the business. In large companies this is not such a big factor.

The location is important. A similar business situated at Kleinsee (which is a declining mine town with declining number of residents) compared to Vanderbijlpark can not have the same price.
Security plays a role in the value of a Business. Businesses situated at a Taxi rank are perceived a higher security risk than businesses in a shopping mall. It is also known that businesses at a Taxi rank have a high number of passing trade. Depending on the buyer the position can be seen as an opportunity or a threat.
Written and legally binding contracts that are profitable and which can be taken over by the buyer will affect the Sales Price in a positive way.

Determining the Value of the Business (Sales Value)

The most common calculation of determining the Sales Value of a Business is

calculated by means of three calculations namely:

Extra earning potential
Return on investment
Payback period.

The tree results are added and divided by three to get an average. This average is then taken and adjusted taking into account:

The price achieved from the sale of a similar business with a similar net profit.
Taking into account the factors as stipulated in the sixteen factors influencing the Sales price of a Business mentioned above.

· Extra earning potential

This calculation attempts to compensate for the risk of being in one’s own business. It is an attempt to calculate the reward which is an extra amount over and above what the buyer can earn if he/she invested the money or worked for a salary.

It takes into account the asset value, the net profit, the current interest rate one would receive from an investment, the reward from standing in the business (salary) and the length of time the Business has been in operation. This calculation gives an indication of the Goodwill value.

· Return on Investment

This method calculates the value based on a return an owner would expect for the risk he/she takes to run a business after allowing for a salary. The asset value is not a consideration.

· Payback period.

The Valuation is based on the period one would expect to recoup your investment times the net profit. The asset value is not taken into account. At present businesses sell for eighteen to twenty four times their net profit.

Final determining of the Sales price of a Business.

The above three values are added and divided by three to get the average.

The average is taken as a basis and adjusted taking into account the sixteen factors mentioned above which has an influence on the sales price of a business. It must be stressed that this method is a method to estimate the Sales Price or Sales value of a business. Other methods can be used, but the influences mentioned above must be used to adjust the Value to a more realistic figure.

We have been Business Brokers in the Vaal Triangle for nineteen years. Contact us if you are a seller or a buyer of a business in the Vaal Triangle.

Frik Liebenberg Business Advisory Services cc 99/05522/23

Frik 082 556 8368

Elmien 074 373 1888

frik.christien@gmail.com S L M Building First Floor

www.liquorlicensing.co.za 2 Hobhouse street. SE 2

www.businessexperts.co.za Corner Hendrik van Eck Boulevard

Liquor Licenses for Catering Companies. Gauteng Province.

2014-03-25T12:40:00.000+02:00

Liquor Licenses for Catering Companies.Gauteng Province.

We receive numerous enquiries from catering companies who wish to apply for a Liquor License. They wish to offer a one stop service to their customers by offering a Bar service together with the catering. The catering companies usually cater at different venues, depending on the customers requirements.

To apply for a permanent Liquor License one must first have a premises, because the Liquor License stands with one leg on the premises and another leg on the applicant. Therefore the catering company can not apply for a permanent Liquor License if it does not use the same premises every time.

The only choice they have is to apply for a Catering Permit. The Catering Permit is only valid for the one event and for the one venue applied for. It can not be used at other venues. The Catering permit will not be issued for more than seven days at a time.

To apply for a Catering permit or occasional permit is expensive and the Catering Company must ensure that the function attendance is sufficient to cover the cost or to make a profit.

The Gauteng Liquor Board requires the application to be submitted three weeks before the event. They accept no late applications. We require at lease two additional working days to prepare, commission, pay and submit the application.

An inspector of the Liquor Board will inspect the site and submit a report to the Local Committee for evaluation.

For More information Please Contact us

082 556 8368 Frik

074 373 1888 Elmien

www.liquorlicensing.co.za

Follow us on Twitter

Like Facebook

We also sell Businesses in Vaal Triangle.

www.businessexperts.co.za

for a full list of businesses for sale.

Important information regarding Distribution License (Wholesale)

2014-03-19T13:34:00.000+02:00

So what is a distribution license you ask?

Basically it boils down to selling liquor to licensed entities or person. You are not allowed to sell liquor to the public like a liquor store.
Most people call this license a "wholesale" license. But the wholesale license has fallen out of the Provincial act and is now regulated under the National liquor act.

Sale of Liquor.

Your registration enables you to sell to LICENSED businesses who will resell the product.

You may not sell to the public for own consumption or to any unlicensed person or entity.

Trading Hours:

Monday to Saturday between 09h00 and 18h00.

No trading on Sundays and public holidays.

These hours are subject to conditions imposed by the National Liquor Authority, and if the Municipality has not determined the trading days and trading hours.

Manufacturing, loading and traveling may be conducted outside these hours. But off loading of liquor to your client may not take place outside these hours.

A manufacturer or Distributor may deliver and off load to their own warehouse (no transaction takes place) after these hours.

Delivery of Liquor.

To deliver liquor the following is important:

Only liquor that has been ordered must be in the vehicle.
The original invoice to be kept on the registered premise and copy in the delivery vehicle stating;

1. Customer

2. Liquor registration number of both client and manufacturer/distributor.

3. Invoice number.

4. Date of issue of invoice.

5. Kind and quantity of liquor.

6. Price paid for by the client

7. Delivery address.

Do not deliver to any address not mentioned on the invoice.

Keeping Record

Keep record of all liquor sold in written or electronic form and it must contain the following:

Customer identification.
Certified copy of your Customer’s National Liquor Authority Registration certificate.
Invoice numbers and dates of issue.
Kind and quantity of liquor sold.
Purchase price paid.

BEE

Until October 2014 the threshold for BEE exemption is R5m turnover per year. After October 2014 the threshold will be R10m turnover per year. If your turnover exceeds R10m after October 2014 you cab contact our office,

Important.

You must file an annual information return in FORM NLA 28 at least 30 days before the anniversary of your registration certificate. (This is your application for renewal of your registration.)

A registrant who is the holder of an import certificate in terms of section 16 of the Liquor Products act 1989 (act No. 60 of 1989) must file an annual information return in FORM NLA 29 on or before 31 March each year.

Contact your Liquor License Consultant if you require assistance. It is the registrant’s duty to remember this important event and we as Liquor License Consultants do not accept responsibility to remind the registrant.

SAPD officials.

The SAPS has appointed dedicated officials who will enforce the law. Each official will have an appointment certificate and proof identity. Should you be non compliant they will issue a notice of non compliance. Should you not rectify the non compliance a criminal docket will be opened and the process of deregistration will begin.

Should you require further information, kindly contact

FRIK LIEBENBERG

082 556 8368

frik.christien@gmail.com

www.liquorlicensing.co.za

Follow us on TWITTER
Like us on Facebook

We also sell businesses in the Vaal Triangle

www.businessexperts.co.za

for a full list of businesses for sale in Vaal Triangle.

What Should I Know and Do after receiving my Liquor license.

2014-03-19T12:05:00.001+02:00

SO Now you have Finally Received Your Liquor License......

What now, besides trading?

There are important things to know that not ever consultant will tell you!

HERE IS SOME USE FULL GUIDELINES TO TRADE ACCORDING TO THE LIQUOR ACT

1. The liquor license certificate must be displayed on a conspicuous place on the premises and be produced on demand by a person authorized thereto by this act or any law.

2. If your liquor license is in the name of a Close Corporation, Company etc. a section 40 application must be made whereby a natural person is appointed as manager over the license.

3. If the liquor license is in the name of a natural person, and the license holder is not permanently present at the premises, a person who is permanently at the premises must be appointed in terms of Section 40.)

4. Do not make any structural changes to the premise before a Section 43 application for the alteration, addition or reconstruction of the premises has been approved by the liquor board.

5. A licensee shall refuse to sell alcohol to an intoxicated person.

6. A licensee must display on the front door or window of a licensed premises a notice with characters of larger than 5 centimeters in height the following:

- Name of Business.

- Type of license

- Times of Business

- License Number

7. Selling of liquor is regarded if you exchange or keep, offer, display, deliver, supply or dispose of for sale, or authorize or allow a sale. Supply is to place a person. in possession or control of the liquor for consumption. Therefore if you do not have a liquor license do not charge a cover charge with “free Liquor” or other methods to justify an unlawful sale of liquor.

8. Ensure that you choose an experienced liquor consultant who can supply references and proof of successful liquor license applications. Where an application for a license has been refused by the Board, no new application may be made in respect of the same premises within a period of one year from date of refusal....

9. Gauteng Liquor licenses must be renewed one day before the original issue date of the Liquor License. If you renew one month after the issue date a fine of 50% and two months after the issue date a fine of 100%is imposed. The third month the license expires without a possibility of reinstating the license. A new application must then be made. A renewal advice must be collected from the Board and payment must be made at First National Bank. Your renewal advice and FNB receipt must be kept for the renewal process of the following year.

10. The practice of renting a liquor license is unlawful and can result in the closure of the business and the possibility of further legal action.

11. A liquor license in Gauteng can not be removed from one premises and transferred to another premises. A new application must be made on the new premises.

12. Sale of liquor to individuals under 18 years old is regarded in a serious light and can result in criminal charges brought against the seller and / or the license holder.

13. There is no liquor license which will allow 24 hour delivery or sale of liquor.

For free advise contact

FRIK LIEBENBERG
082 556 8368
frik.christien@gmail.com
www.liquorlicensing.co.za
FOLLOW US ON TWITTER
LIKE US ON FACEBOOK

WE ALSO SELL BUSINESSES IN VAAL TRIANGLE AREA VISIT
WWW.BUSINESSEXPERTS.CO.ZA
FOR A FULL LIST OF BUSINESSES FOR SALE

What to look out for Before Applying for a liquor license in Gauteng province

2014-01-20T15:09:00.003+02:00

Before you apply for a Liquor License

To make sure that the Zoning of the proposed premises does not prohibit the application of a Liquor License. You can apply for a Zoning Certificate at your local Municipality.

Under the Gauteng Liquor Act, the applicant of a Liquor License in Gauteng for a Liquor Store, Pub, Tavern, pool club, and Night club must obtain, in writing, a local authority approval to apply for such a liquor license.

This is in addition to any Zoning laws. It is advisable not to apply for a liquor license if this is not in place

NOW YOU ASK WHAT IS ZONING????

Zoning

Zoning of a property is the regulation put in place to preserve the character of the area and in turn regulate health, safety, welfare, morals, and limit nuisance disturbance to land users. Zoning must promote land use to the best interest of the occupants. It acts as a stabilizing factor in neighborhoods and preserves the character of the community.

The essential purpose of Zoning is to segregate Residential, Agricultural, Commercial (business), and Industrial areas from one another.
Regulations have been put into place to protect residential areas from encroachment by petrol stations, businesses causing a nuisance, factories, liquor outlets, and other disturbances.

Factors taken into consideration are traffic, character of neighborhoods, the fitness of the land involved and influence on property values.
The Zoning of a property regulate, among other things the Nuisance emanating from the use of a property. That is “An unreasonable, unwarranted or illegal use of property that infringes the rights of other people.” Therefore the quiet enjoyment of a person’s property is invaded by a person, causing the nuisance without that individual actually physically invading your property. A nuisance can affect one’s health, morals, safety, welfare, comfort or convenience.

It is therefore important to ensure that the proposed property is correctly zoned for the Application of a Liquor License. If you apply for a liquor license on i.e. a residential zoned property your application may be refused, resulting in a financial loss. The Municipality also has the right to close down your business if you trade on a premises Zoned for residential

Business Rights

The Land Use Rights of a property plays an important role in your Liquor License Application. A Municipality begins with the planning process of land. This result is the Zoning of property, which allows certain uses and prohibits certain uses of such land. This process regulates the subdivision of land, street plans, plans for public facilities and building regulations. This planning process plans for the construction of schools, roads, sewage, water and electricity supply, policing, fire protection, businesses and other.

We advise all our client to make sure that their premises are
correctly zoned before we receive any money or start working
on the application

The applicant must take great care in choosing a Liquor License Consultant. Unfortunately there are many unethical and incompetent Liquor License Consultants.

Please note.
Section 23 (3) of the Gauteng Liquor Act 2 of 2003
Where an application for a license has been refused by the Board, NO new application may be made in respect of the same premises within 1 (one) year from the date of refusal, except by special leave granted at the discretion of the Board. It is therefore critical to choose your Liquor License Consultant with care

.
Frik Liebenberg

Frik Liebenberg Business Advisory Services cc 99/05522/23

082 556 8368

frik.christien@gmail.com
www.liquorlicensing.co.za
www.businessexperts.co.za
Follow us on Twitter @licensingliquor

New Amendment Regulation Liquor Act, 59 of 2003

2014-01-20T14:40:00.002+02:00

wwwLiquor act, 59 of 2003

On 3 December 2013 the Liquor Amendment Regulations was published in the Government Gazette Gazette no. 37091.

We of Frik Liebenberg Business Advisory Services, in our capacity as Liquor License Consultants, welcome the Amended Regulations as a positive step to regulate the applications for and the conduct of a National Liquor Registrant such as a Manufacturer, Distributor or both. The instructions are clear and will reduce uncertainties and will hopefully reduce lead times.

Zoning.

The Amendment Regulation clearly defines the Zoning requirements of the property as Industrial or by consent from the Local Authority.

The Land Use Rights of a property plays an important role in your Liquor License Application.

What is Zoning of a property? A Municipality begins with the planning process of land. This result is the Zoning of property, which allows certain uses and prohibits certain uses of such land.

This process regulates the subdivision of land, street plans, plans for public facilities and building regulations. This planning process plan for the construction of schools, roads, sewage, water and electricity supply, policing, fire protection, businesses and other.

The essential purpose of Zoning is to segregate Residential, Agricultural, Commercial (business), and Industrial areas from one another.

Regulations have been put into place to protect residential areas from encroachment by petrol stations, businesses causing a nuisance, excessive heavy vehicle traffic, factories, liquor outlets, and other disturbances.

Factors taken into consideration are traffic, character of neighborhoods, the fitness of the land involved and influence on property values.

The Zoning of a property regulate, among other things the Nuisance emanating from the use of a property. That is “An unreasonable, unwarranted or illegal use of property that infringes the rights of other people.” Therefore the quiet enjoyment of a person’s property is invaded by a person, causing the nuisance without that individual actually physically invading your property. A nuisance can affect ones health, morals, safety, welfare, comfort or convenience.

It is therefore important to ensure that the proposed property is correctly Zoned for the application of a Liquor License.

If you apply for a liquor license on i.e. a residential zoned property your application may be refused, resulting in a financial loss.

The Municipality also has the right to close down your business if you trade on a premises Zoned for residential.

Clearance Certificates.

The structure of the application is now formalized and is similar to the Gauteng provincial requirements. Requirements such as a South African Police clearance certificate and a Tax clearance certificate are now required. There is also provision made for the inspection of the registered premises.

Trading Hours.

The trading hours are specified as Monday to Sunday between 09h00 and 18h00.

Records.

Records must be kept by the registrant of any person or business entity purchasing liquor, and must contain the following information:

Delivery address.
Registration information.
Invoice numbers and date of issue.
Kind and quantity of liquor supplied.
Purchase price.

Invoicing.

When a delivery is made a copy of the invoice must accompany the delivery vehicle and an original invoice must be kept on the registered premises. The delivery address must be on the invoice. Deliveries must be made only to the addresses as indicated on the invoice.

General.

We receive numerous enquiries from applicants who wish to “Distribute” liquor from an office or house without storing the liquor at their premises. The regulations make it clear that the premises must be Zoned industrial or the Municipality must give written consent for such an application.

A registration for Distribution allow only sales to Licensed outlets such as a Restaurant, Pub, Tavern, Liquor Store etc. and no sales to the public is allowed.

For Any further information required contact

Frik Liebenberg

Frik Liebenberg Business Advisory Services cc 99/05522/23

082 556 8368

frik.christien@gmail.com

www.liquorlicensing.co.za

www.businessexperts.co.za

2013-11-08T15:17:00.000+02:00

What is the biggest mistake you can do in a business partnership?

To just trust a partner..... Yes you should trust your partner in business but there is a fine line that needs to be understood.

No room for trust and friendship in partnerships. Get it in writing -

anything less will almost certainly end in tears, court and hardship

In an age where it is becoming more difficult to do business, take proper advice from

experts, well trained and qualified business people. It is far cheaper to get the advice upfront than to

go headlong into a partnership, only to find it is the wrong vehicle for you. A

handshake does stand up in court, but you are guaranteed more protection from a

partnership contract drawn up by a lawyer. Make sure that each partner`s individual

financial structure from an income tax and estate duty point of view is secure (you

don`t want to be going into a partnership with someone who has just gone bang) Draw

up a workable financial formula for the dissolution of the partnership. Partnerships are

based on trust but you can save yourself a lot of heartache if you set them up with the

idea that they might not always be rosy.

The first shoot of trouble often occur because partnerships are frequently divided

between one person who has full autonomy over finance while the other provides the

creative clout. “Partnerships are” he says “creatures of trust”

The court archives are full of business partnerships that devolve around genesis of

good will and end on a sour note. To a large extent, the business partnership has been

susperseded by the CC, which is governed by the Close Corporation Act and is a

separate legal entity with virtually the same legal standing as a private company and

where the corporate veil shields personal liability. However, there are cases where

partnerships are more attractive than a close corporations. It depends very much on

the nature of the business, the risk involved and the projected profit and loss profile.

Partnerships, if properly set up, can be easier to dissolve and can also be very

advantageous from a tax point of view.

The essentials necessary for the creation of a partnership are:

* Each of the partners brings something into the partnership, whether it is money,

labour or skill.

* That the business should be carried on for the joint benefit of the parties.

* That the object should be to make a profit.

One of the problems that arises is without written contracts. Although the handshake

agreement is recognized legally, it is better to get things in writing. It is wise to

seek professional advice from a lawyer when drawing up a partnership contract. Such

a contract must pay particular attention to finances, stipulating each partner`s initial

financial contribution and entitlement to profits. A partnership contract must also

include legal precautions for the dissolution of the partnership.

It is more difficult to choose a partner than a spouse. “When they do work they can be

magic” The best advice is to go into all partnerships with the idea that you might

wake up one day and hate your partner.

Wherever you have got a partnership agreement, try to work into the partnership a

workable financial formula for its dissolution. In the end, it is this that will save

disillusion.

Close corporation versus partnership

* The CC is a separate legal entity while a partnership is not.

* Membership of a CC is limited to 10, there can be up to 20 partners in a partnership.

* The member`s liability in a CC is limited. In a partnership the partners assume full

liability.

* The CC is considered a separate taxpayer. In a partnership the partners are liable for

tax.

* A CC is taxed at company tax rates, whereas in a partnership the profits are taxed in

the partners hands at each partner`s marginal tax rate.

* Losses retained within the CC cannot be offset against the member`s income. A

partner`s share of the partnership loss can be offset against his/her other income.

* The member`s salaries are deductible for tax purposes, unlike the salaries of

partners.

For Further information or advise please contact us by

Email: frik.christien@gmail.com

Phone: Frik 0825568368

Elmien 074 373 1888

website: www.businessexperts.co.za

We have been Business brokers for more that 19 years and have a range of businesses for sale.

If you want to sell your business contact us!

Everything will be handled confidential and professional.

We also do liquor license application.

New Application

Transfer of a liquor license

Appointment of managers

Occasional or catering permits

For any liquor related business visit: www.liquorlicensing.co.za

Or contact Frik 082 55 68368

Elmien 074 373 1888

All liquor related advise are free.

2013-10-28T12:34:00.002+02:00

Annual Renewal of liquor licenses.

In terms of section 98 of the Gauteng Liquor act every license shall be renewed annually within twelve months from date of issue by payment of an annual fee. The license must be renewed one day prior to the issue date printed on the license.

FEES FOR RENEWAL OF A LICENCE IN TERMS OF SECTION 98

Prescribed Fees according to the Gauteng Liquor act.

Hotel Liquor license R3 500 Restaurant liquor license R3 000

Theater liquor license R3 000 Club liquor license R3 000

Night club liquor license R3 000. Gaming premises liquor license R5 000

Sports ground liquor license R2 500 Pub liquor license R3 000

Dance hall liquor license R5 000 Tavern liquor license R2 500

Pool club liquor license R3 000 Liquor store license R3 000

Grocers’ wine license R1 500 Micro-manufacturer’s license R5 000

Sorghum beer license

(on or off consumption) R2 000

ONCE A LIQUOR LICENCE HAS LAPSED - IT HAS NO MORE LEGAL EFFECT - YOU WILL HAVE TO RE-APPLY for a new liquor license.

A liquor license will laps two months after the renewal date without the possibility to reinstate the license.

Do not expect a reminder from the liquor board to remind you to renew your license.

It is in the licensees own responsibility and interest to ensure that the annual renewal fees are paid on or before the renewal date.

To ensure a smooth and correct precedure on renewing you liquor license in Gauteng

you can contact Frik Liebenberg Liquorlicense Consultants to collect your renewal advice from the liquor board in Johannesburg and deliver it at your premises.

To enable us to correctly offer this service we will need the following:

A certified copy of the license

A certified Copy of the receipt that was paid for the previous year.

A small administration fee will be charged.

For More information regarding Renewal of liquor licenses please contact us on the following:

Email: frik.christien@gmail.com

Website: www.liquorlicensing.co.za

Phone: 082 5568 368 (Frik)

074 373 1888 (Elmien)

More Important Information relating to a Licensed Premises.

2013-09-03T15:40:00.001+02:00

Information relating to a Licensed Premises.

1 Upon approval of the Liquor License the Applicant pays to the Liquor Board of R 1 500.

Gauteng Liquor licenses must be renewed one day before the original issue date of the Liquor License at a cost of R 3 000 per year. If you renew one month after the issue date a fine of 50% and two months after the issue date a fine of 100%is imposed. The third month the license expires without a possibility of reinstating the license. A new application must then be made.

A renewal advice must be collected from the Board at 92 Main Street Johannesburg and payment must be made at First National Bank.

Your renewal advice and FNB receipt must be kept for the renewal process of the following year. If the receipt is lost, you can not renew the license the following year.

2 The liquor license certificate must be displayed on a conspicuous place on the premises and be produced on demand by a person authorized thereto by this act or any law.

3 If your liquor license is in the name of a Close Corporation, Company, Club etc. a section 40 application must be made whereby a natural person is appointed as manager over the license. This person must be on the premises at all times.

4 Do not make any structural changes to the premise before a Section 43 application for the alteration, addition or reconstruction of the premises has been approved by the liquor board.

5 A licensee shall refuse to sell alcohol to an intoxicated person.

6 A licensee must display on the front door or window of a licensed premises a notice with characters of larger than 5 centimeters in height the following:

- Name of Business.

- Type of license

- Times of Business

- License Number

7 A liquor license in Gauteng can not be removed from one premises and transferred to another premises. A new application must be made on the new premises.

8 Sale of liquor to individuals under 18 years old is regarded in a serious light and can result in criminal charges brought against the seller and / or the license holder.

For more Information Visit our website www.liquorlicensing.co.za

or you can email us at frik.christien@gmail.com

You Can Follow Us on Twitter @licensingliquor

You can also contact a liquor license consultant directly by phoning

082 556 8368

Liquor License: We Take the hassle out of Liquor licensing.

2013-08-22T15:10:00.001+02:00

Liquor License: We Take the hassle out of Liquor licensing.: We Take the hassle out of Liquor licensing. The Services we provide is as follows. We do the application this includes the descript...

We Take the hassle out of Liquor licensing.

2013-08-22T09:05:00.001+02:00

We Take the hassle out of Liquor licensing.

The Services we provide is as follows.

We do the application this includes the description of your premises, Comprehensive written representation [According to reg3(2)(c)].
Floor Plan of your premises. (please note that not all consultants include this in there quote and will ask you to draw up your own floor plan)
If you are in Gauteng Province We pay and apply for your South African Liquor Traders registration
We also Pay your Lodgement fees

Please take note that Not All Liquor license consultants include this in there fees!!

All We require from you is as follows

Copy Of the applicants ID
If you are applying in a business name we will need the Certificate of incorporation
Most important is the ZONING of the premises. That is why we need the zoning certificate.
Ensure that you are in good standing with SARS (if your in Gauteng)

This is just to mention a few documents that is required and what services we offer.

For more information please contact us on the following:

frik.christien@gmail.com

082 556 8368

or visit

www.liquorlicensing.co.za

For more information

Liquor License: Liquor license Consultants Contact Details

2013-08-16T14:29:00.001+02:00

Liquor License: Liquor license Consultants Contact Details: We can be contacted by anyone of the following detail! Email: frik.christien@gmail.com You can email us with all your questio...

Liquor license Consultants Contact Details

2013-08-16T14:22:00.001+02:00

We can be contacted by anyone of the following detail!

Email:

frik.christien@gmail.com

You can email us with all your questions

Phone:

082 556 8368

for the more personal touch and to make an appointment.

Website:

www.liquorlicensing.co.za

Here you can browse our pages loaded with information regarding you Zoning of your property, types of licenses and lots more

We also sell businesses in the Vaal Triangle area visit
www.businessexperts.co.za

Liquor License: Liquor License: May I Rent a liquor license????

2013-08-16T13:21:00.001+02:00

Is renting a liquor license legal???
Liquor License: Liquor License: May I Rent a liquor license????: Liquor License: May I Rent a liquor license???? : Q May I rent a Liquor License from a license holder or may I use the license o...

GUIDELINES AND INFORMATION WHEN BUYING A BUSINESS

2013-08-14T14:43:00.001+02:00

BUYING A BUSINESS - BASIC GUIDELINES AND INFORMATION

Introduction

Buying a business - basic guidelines and information - is intended as information for the first

time buyer and buyers with some business experience. Detail explanations on the subject under

discussion falls outside the scope of this “Basic guidelines” and should you require further

information kindly contact your business broker, Frik Liebenberg at 082 556 8368 or

074 373 1888

1. Reason for buying a business

Be sure that your reason for buying a business is logical, and based on facts.

To be relieved of stress from your present work situation is generally not a

good reason to buy a business.There are no stress free businesses. It is

advisable to have the support of your spouse in this venture, especially if you are a first time buyer.

2. Choice of an agent/business broker

A business broker should have a working knowledge of contract law, financial statements/

balance sheets (and be able to read between the lines) be able to value a business

and have practical business experience. An agent selling houses IS NOT AUTOMATICALLY

QUALIFIED TO SELL BUSINESSES. Your business broker should spell out the process

and implications of the transfer of a liquor licence, cost of stocking and running the business.

Your business broker should be able to act in a consultancy capacity for a considerable

period (+/- 1 year) after handover to assist you with difficulty you might experience after

your purchase.

The following questions may be asked by the prospective buyer to the business broker to

ascertain whether the business broker is suitably qualified to assist him or her in purchasing

a business.

1) Do you operate from a registered business with a formal office?

2) How long have you been a business broker? (remember a residential estate agent is

not automatically qualified to sell businesses)

3) Are you registered with the Estate Agency Affairs Board?

4) Are you registered with the Institute of Realtors?

5) Did you complete business broking courses i.e. “IRSA Business Broking Course”?

6) Can you evaluate financial statements and read between the lines?

7) Can you do a professional valuation of a business? (Not by the magic multiplier method)

8) Will you assist me for at least one year after purchase and are you qualified to

evaluate and identify problems in a small business.

9) And most important, have you ever owned a business? (If not, you are talking to

a marriage councilor, who never was married)

Remember, you are placing your life savings in the hands of your broker. Does your

broker look after your interest, or after his own wallet?

BUYING A BUSINESS - A COMMITMENT

Don`t buy a business if you are not prepared to make a total commitment. That is a financial

and personal commitment. Nobody will make a commitment on your behalf while your money,

job and assets are safe and secure. The risk in business is real, and there are no guarantees,

however the reward are out there for the person who is prepared to take a calculated risk and

strive for self - actualisation.

Cost of buying a business

If a business is advertised for say R100 000,00 you will need more than R100 000,00 to

purchase the business because of “Hidden Cost” which are not always spelled out by

ignorant or dishonest agents.

The “hidden costs” are made up of the following:

A) Rent deposits

Your first month`s rent payable might be higher than anticipated.

Most lessors require two times your monthly rent i.e. one months rent

in advance plus one months rent as deposit. (If your rent is R3 000 your first payment

can be R6 000.)

B) Electricity deposit

Some buildings, not all, will include the electricity deposit in your rent deposit. Otherwise

you may be liable for a deposit which is +/- three times the average usage i.e. if your

electricity usage is likely to be R1 000/month you may be liable for a deposit of R3 000.

It might be more or less, dependant on the situation.

C) Stock

Your business broker should find out what is the optimal stock value for running the

business most efficiently.

Then: - if stock is included - calculate the fast moving stock value you must add to the stock

which is included and add this to your hidden cost.

Then: - if stock is excluded - add the total stock value required to run your business, to

your hidden cost already calculated.

PLEASE NOTE:

The prospective buyer must realise that when a seller, sells a business, and the contract

reads that the purchase price includes a specific value of stock, that value of stock

should be in the business at the time of the handover. But the seller will most likely

deplete the fast moving stock and refrain from buying stock or consumables if it`s not

really necessary. That means, when the buyer takes over the business, it could be

that he or she will have to purchase a specific amount of stock. It is therefore

advised that the buyer does not rely on the value of stock in the business at time of handover

to generate profit and a turnover as previously, because of the unbalance in fast moving

stock and slow moving stock.

It is therefore of extreme importance not to put down your last cent and expect the

business to give you a good return. Examples of above could be for instance that the

purchaser who takes over a restaurant, will have to replace all the cooking oil at a

considerable cost, because the seller will stretch the oil as far as possible. Package

material, cleaning material and popular items on the menu will not be in stock and items

which are kept in stock exclusively as a service item will be in abundance, but

unfortunately slow moving.

D) Working capital

Most businesses fail primarily because the owner has run out of cash to sufficiently stock

and maintain the business.

A professional broker can establish the cash you need to run your new business.

The cash required/working capital differs from business to business i.e.

Small Take Away R 15 000

Small Bottle store R 25 000

Small Fuel station R100 000

(Above are typical examples only and should not be used in your calculations without

investigation)

Example

Your purchase price of R100 000 can grow as follows:

Purchase price R100 000

Rent deposit R 6 000

Electricity deposit R 3 000

Stock say R 3 000

Working capital R 15 000

TOTAL R127 000

This indicates the importance of calculating your hidden cost, because you will hardly

secure a lone or bridging finance if you are just started out in your business and is short

of working capital.

Purchase contract

The seller has the right to appoint an attorney to draw up the contract and the buyer is

liable for payment.

When we draw up your contract, there is no charge for the contracts unless you appoint an

attorney to verify the contract (which is advisable).

E) Lease agreement

Your lease agreement is very important and should be verified by a lawyer. Two regular

roguery in lease contracts falls under the “option to renew” clause and transfer of lease

clause or sub - lease clause or sale of business clause.

Stamp duties and admin fee may be charged by the lessor.

Financing of a business (if required)

Financing for the purchase of a business is extremely difficult to obtain.

No financial institutions will grant a 100% loan

Sufficient security in the form of fixed property will be required. Remember, a house recently

purchased can hardly be given as security. Proof that the business can cover the loan and

support the buyer is required.

A comprehensive business plan must be prepared and should include at least the following:

1. CV of buyer

2. History of the business and competitor analysis

3. Income statement and balance sheet

4. Cash flow analysis

5. Information with regard to product, price, promotion and distribution strategies

6. Target market

7. Capital available (Buyers commitment)

8. Capital required - detailed purchase price and “Hidden Cost”

9. Lease agreement (Example)

10.Purchase contract

11.Asset list and values

12.Staff details (Expertise and wages)

(This can be prepared by your business broker at a nominal fee)

Unfortunately, smaller sole proprietors mostly do not have acceptable financial figures because,

hidden profits which the seller has been making, usually in the form of undeclared earnings and

other benefits, are not declared in the financial statements. They can theoretically not be

included for evaluating the business.

This is where the sophisticated buyer who knows what he is doing, come in. He knows the

risks, returns and value to him. Financial institutions usually do not have the working

knowledge of these type of businesses, and unless you have sound first hand experience

in this field, the figures will look unacceptable and a loan will not be granted.

The decision to purchase

Your decision to purchase are influenced by numerous facts. Beware of the so called

“Experts” who spread rumours and advice - especially those who never owned a business.

Once the parties have agreed to enter into a transaction, an offer to purchase should be drawn

up. Remember, an offer to purchase becomes a binding contract when signed by all parties.

At least the following should be recorded:

- The outline terms of the agreement

- V.A.T. and sale of a “Going concern”

- Definitions

- Asset list

- Stock

- Effective date

- Domicilium

- Purchase price + payment

- Occupation

- Insurance

- Debt

- Employees

- Section 34 of the insolvency act

- Conditions precedent

- Guarantees with regard to sellers

- Right to sell the business

- Ownership

- Training

- Suppliers

- Restraint of trade

- Validity of offer

Handover of business

Your broker should be present during the handover procedure to ensure:

- All the assets are in place and in working order.

- Stock taking is done to acceptable accounting procedures and correctly valued.

- All conditions of the contract are adhered to and all suspensive conditions are met.

- To act as mediator in the event of a dispute between the buyer and the seller.

- A formal handover document signed by all parties must be completed to ensure all parties

are satisfied and all monies are handed over.

- Any amendments or new agreements signed and accepted by all parties.

- All registrations and licences are in place.

FOR MORE INFORMATION PLEASE VISIT

www.businessexperts.co.za

or email us at

frik.christien@gmail.com

Liquor License

Business Rights

Zoning

Before you apply for a Liquor License

www.liquorlicensing.co.za

For More information on liquor licensing contact Elmien Liebenberg074 373 1888Frik Liebenberg082 556 8368

We Also sell businesses in The Vaal TrianlgeFor more information contactFrik Liebenberg082 556 8368

Congratulations to Lord Signature Hotel On the Approval of their liquor license.

Congratulations to Butcher's Deli and Diner on the approval of your liquor license.

Verification of all Liquor Licenses in Gauteng.

Establishing a Pub Gauteng

Establishing a PubGauteng

The National Liquor Authority is addressing it’s challenges head on.

The National Liquor Authority is addressing it’s challenges head on.

Lifestyle Living in the koppies at Vaaldam. Vaal Marina. R1.7m

Liquor License: Valuation of a business

Liquor Licenses for Catering Companies. Gauteng Province.

Liquor Licenses for Catering Companies.Gauteng Province.

For More information Please Contact us

082 556 8368 Frik

074 373 1888 Elmien

www.liquorlicensing.co.za

Follow us on Twitter

Like Facebook

Important information regarding Distribution License (Wholesale)

www.businessexperts.co.za

What Should I Know and Do after receiving my Liquor license.

What to look out for Before Applying for a liquor license in Gauteng province

Before you apply for a Liquor License

New Amendment Regulation Liquor Act, 59 of 2003

More Important Information relating to a Licensed Premises.

Information relating to a Licensed Premises.

For more Information Visit our website www.liquorlicensing.co.za or you can email us at frik.christien@gmail.com You Can Follow Us on Twitter @licensingliquor You can also contact a liquor license consultant directly by phoning 082 556 8368

Liquor License: We Take the hassle out of Liquor licensing.

We Take the hassle out of Liquor licensing.

We Take the hassle out of Liquor licensing.

The Services we provide is as follows.

All We require from you is as follows

Liquor License: Liquor license Consultants Contact Details

Liquor license Consultants Contact Details

We can be contacted by anyone of the following detail!

Email:

Phone:

Website:

We also sell businesses in the Vaal Triangle area visit www.businessexperts.co.za

Liquor License: Liquor License: May I Rent a liquor license????

GUIDELINES AND INFORMATION WHEN BUYING A BUSINESS

For More information on liquor licensing contact
Elmien Liebenberg074 373 1888Frik Liebenberg082 556 8368

We Also sell businesses in The Vaal Trianlge
For more information contact
Frik Liebenberg
082 556 8368

For more Information Visit our website www.liquorlicensing.co.za

or you can email us at frik.christien@gmail.com

You Can Follow Us on Twitter @licensingliquor

You can also contact a liquor license consultant directly by phoning

082 556 8368

We also sell businesses in the Vaal Triangle area visit
www.businessexperts.co.za