Real estate investments can generally be put into three classes: Core, Value-added, or
Opportunistic.
Core investments are safe, stabilized properties that generally produce steady
income streams and have low risk.
For core assets, investors generally seek an internal rate of
return (IRR) of between 8 percent and 12 percent.
Core-plus or value-added properties generally
require direct equity participation and operational expertise. This may include renovating or
repositioning a property to create a stable cash flow that generates property appreciation.
The IRR target for value-added properties is 12 percent to 16 percent. Opportunistic investments generally involve a major capital injection into a failing property and are furthest along in the risk spectrum
.
For opportunistic deals, the IRR goal is 20 percent or higher.
Monday, December 20, 2010
Monday, December 6, 2010
Franchising
“When it comes
to resources, the
mantra of the suc-
cessful entrepre-
neur is to minimize
and control rather
than maximize and
own.”
Analysis
of potential profit margins can indicate key financial variables, such as return on
investment, net profit, cash flow and timeframe. At the store level, franchisees look for a
20% return on investment.
Once the potential franchiser’s financial analysis is complete, the entrepreneur should
focus on the service delivery system (SDS), a core feature of any franchise. The SDS
gives franchisees the resources to focus on exploiting the opportunity. They are not
distracted by acquiring the machinery, suppliers, land or building — those come from
the franchiser.
“Eighty-five per-
cent of all suc-
cessful entrepre-
neurs spend at
least three to five
years in their
industry learning
the language and
niches before set-
ting out in that
industry to start a
business.”
With the SDS as its core, the Franchise Relationship Model (FRM) further defines the
franchise relationship. The FRM deconstructs the entire franchise model so each part is
isolated, examined and optimized with the goal of providing the ideal, most profitable
product or service. To see what makes a franchise unique, focus on its FRM. This model
incorporates all the key elements — marketplace, demographics, contracts, financials —
around the customer and the SDS. Once it is in place, the FRM provides a common basis
for discussion among all the parties involved.
“Customers will
not beat a path to
your door, instead,
you must build a
roadway to them!”
Since real estate is often a franchise’s largest capital expenditures, site selection must
incorporate a number of essentials. Among the factors considered are:
•
•
•
Primary target audience density — Are enough customers nearby?
How many people pass the location — This can vary from day to night.
Car traffic patterns — Inbound and outbound traffic from a neighborhood have cer-
tain characteristics. A corner lot, traffic congestion and the location of traffic signals
can make certain sites more or less attractive.
Location visibility — This depends on such variables as signage, elevation and how
much time it takes for the building or the sign to become visible to approaching cars.
Visibility also can change from season to season due to foliage or snow and ice.
Local building ordinances — Governmental building restrictions can affect site
selection and may involve experts, such as land use attorneys, civil engineers and
architects. These costs invariably are passed on to the franchisee.
Traffic entrance and exits — Drivers need easy access to the property. Traffic flow
also determines whether customers can make a spontaneous purchase without risk-
ing an accident. Drive-through windows pose a special consideration that can affect
traffic patterns.
The neighborhood — Businesses, like individuals, have neighbors. What constitutes
a good business neighbor? Do you want the synergy of being near a competitor or
should the franchise be set among unrelated businesses? Clustering similar business
generates more like-minded traffic, and that increases competition.
“Retailers should
change their em-
phasis from the
quantity of stores
they open to the
quality.”
Stephen Spinelli Jr. co-founded Jiffy Lube International and became its largest
franchisee with 47 stores that posted 39 consecutive profitable quarters. He now teaches
entrepreneurial studies at Babson College. Robert Rosenberg, CEO of Dunkin’ Donuts
for 35 years, led the firm’s growth from 300 units to more than 3,000. He is now
on the Board of Directors of Sonic, America’s Drive-In. He is also a member of the
International Franchise Hall of Fame. Sue Birley is the former director at National
Westminster Bank, the world’s largest franchise lender.
to resources, the
mantra of the suc-
cessful entrepre-
neur is to minimize
and control rather
than maximize and
own.”
Analysis
of potential profit margins can indicate key financial variables, such as return on
investment, net profit, cash flow and timeframe. At the store level, franchisees look for a
20% return on investment.
Once the potential franchiser’s financial analysis is complete, the entrepreneur should
focus on the service delivery system (SDS), a core feature of any franchise. The SDS
gives franchisees the resources to focus on exploiting the opportunity. They are not
distracted by acquiring the machinery, suppliers, land or building — those come from
the franchiser.
“Eighty-five per-
cent of all suc-
cessful entrepre-
neurs spend at
least three to five
years in their
industry learning
the language and
niches before set-
ting out in that
industry to start a
business.”
With the SDS as its core, the Franchise Relationship Model (FRM) further defines the
franchise relationship. The FRM deconstructs the entire franchise model so each part is
isolated, examined and optimized with the goal of providing the ideal, most profitable
product or service. To see what makes a franchise unique, focus on its FRM. This model
incorporates all the key elements — marketplace, demographics, contracts, financials —
around the customer and the SDS. Once it is in place, the FRM provides a common basis
for discussion among all the parties involved.
“Customers will
not beat a path to
your door, instead,
you must build a
roadway to them!”
Since real estate is often a franchise’s largest capital expenditures, site selection must
incorporate a number of essentials. Among the factors considered are:
•
•
•
Primary target audience density — Are enough customers nearby?
How many people pass the location — This can vary from day to night.
Car traffic patterns — Inbound and outbound traffic from a neighborhood have cer-
tain characteristics. A corner lot, traffic congestion and the location of traffic signals
can make certain sites more or less attractive.
Location visibility — This depends on such variables as signage, elevation and how
much time it takes for the building or the sign to become visible to approaching cars.
Visibility also can change from season to season due to foliage or snow and ice.
Local building ordinances — Governmental building restrictions can affect site
selection and may involve experts, such as land use attorneys, civil engineers and
architects. These costs invariably are passed on to the franchisee.
Traffic entrance and exits — Drivers need easy access to the property. Traffic flow
also determines whether customers can make a spontaneous purchase without risk-
ing an accident. Drive-through windows pose a special consideration that can affect
traffic patterns.
The neighborhood — Businesses, like individuals, have neighbors. What constitutes
a good business neighbor? Do you want the synergy of being near a competitor or
should the franchise be set among unrelated businesses? Clustering similar business
generates more like-minded traffic, and that increases competition.
“Retailers should
change their em-
phasis from the
quantity of stores
they open to the
quality.”
Stephen Spinelli Jr. co-founded Jiffy Lube International and became its largest
franchisee with 47 stores that posted 39 consecutive profitable quarters. He now teaches
entrepreneurial studies at Babson College. Robert Rosenberg, CEO of Dunkin’ Donuts
for 35 years, led the firm’s growth from 300 units to more than 3,000. He is now
on the Board of Directors of Sonic, America’s Drive-In. He is also a member of the
International Franchise Hall of Fame. Sue Birley is the former director at National
Westminster Bank, the world’s largest franchise lender.
Thursday, April 29, 2010
TYPES OF LIQUOR LICENSES IN NEW JERSEY
TYPES OF LIQUOR LICENSES IN NEW JERSEY
For many years people in New Jersey have referred to licenses as either “C” or Broad “C” liquor licenses. The fact is, liquor licenses types are currently identified by an identification number that is issued by the State. It consists of a 12-digit number divided into a 4 groups. A sample license number would look like this: 1406-33-001-001. The first 4 numbers denote the county and the town, the second two numbers denote the license type, the third group is for the town’s use and the last group denotes how many times the license has been transferred.
The second group of numbers which denotes the type of license can fall into any of the nine following types:
31 – Club – Sell any alcoholic beverage but only for immediate consumption on the licenses premises and only to bona fide members and their guests.
32 – Plenary Retail Consumption License with Broad Package Privileges
Sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle and also to sell any alcoholic beverages in original containers for consumption off the licenses premises. You can have both a restaurant and a package store with the same license. FORMERLY BROAD “C”
33 – Plenary Retail Consumption License – Sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle and also to sell any alcoholic beverages in original containers for consumption off the licensed premises. Restaurant is permitted but not a package store with displays. FORMERLY A “C”
36 - Plenary Retail Consumption License (Hotel/Motel Exception) – Same as “33” with the exception of the issue to a Hotel/Motel of 50 to 100 or more rooms only.
37 - Plenary Retail Consumption – This license is issued to a non-profit Musical or Theatre Corporation Pursuant to the Provision of the N.J.S.A.
34 – Seasonal Retail Consumption ( May 1 through November 14) – Same as a “33” but only for Summer season.
35 - Seasonal Retail Consumption License ( Nov. 15 to April 30) – Same as “33” but only for Winter season
43 - Limited Retail Distribution License – Sell any unchilled, brewed, malt alcoholic beverage in quantities of not less that seventy-two fluid ounces for consumption off the licensed premises; but only in original containers.
Thursday, August 13, 2009
Script to list users per bes
SELECT CAST(ServerDN AS VARCHAR(256)) , COUNT (*)
FROM UserConfig
GROUP BY CAST(ServerDN AS VARCHAR(256))
FROM UserConfig
GROUP BY CAST(ServerDN AS VARCHAR(256))
Script for listing apps installed on bb
Script for listing applications installed on blackberry
SELECT U.DisplayName, U.MailboxSMTPAddr, C.ServiceName, S.ModuleVersion, D.ModelName
FROM UserConfig U INNER JOIN SyncDeviceMgmt S ON U.Id = S.UserConfigId, ServerConfig C, SyncDeviceMgmtSummary D
WHERE (S.ModuleName = 'net_rim_bb_qm_lcs') and C.Id = U.ServerConfigId and U.ID = D.UserConfigID
Friday, June 5, 2009
Lesson in patience & value
Source: Buffett 2007 Letter to Shareholders
Let’s look at the prototype of a dream business, our own See’s Candy. The boxed-chocolates
industry in which it operates is unexciting: Per-capita consumption in the U.S. is extremely low and doesn’t
grow. Many once-important brands have disappeared, and only three companies have earned more than
token profits over the last forty years. Indeed, I believe that See’s, though it obtains the bulk of its revenues
from only a few states, accounts for nearly half of the entire industry’s earnings.
At See’s, annual sales were 16 million pounds of candy when Blue Chip Stamps purchased the
company in 1972. (Charlie and I controlled Blue Chip at the time and later merged it into Berkshire.) Last
year See’s sold 31 million pounds, a growth rate of only 2% annually. Yet its durable competitive
advantage, built by the See’s family over a 50-year period, and strengthened subsequently by Chuck
Huggins and Brad Kinstler, has produced extraordinary results for Berkshire.
We bought See’s for $25 million when its sales were $30 million and pre-tax earnings were less
than $5 million. The capital then required to conduct the business was $8 million. (Modest seasonal debt
was also needed for a few months each year.) Consequently, the company was earning 60% pre-tax on
invested capital. Two factors helped to minimize the funds required for operations. First, the product was
sold for cash, and that eliminated accounts receivable. Second, the production and distribution cycle was
short, which minimized inventories.
Last year See’s sales were $383 million, and pre-tax profits were $82 million. The capital now
required to run the business is $40 million. This means we have had to reinvest only $32 million since
1972 to handle the modest physical growth – and somewhat immodest financial growth – of the business.
In the meantime pre-tax earnings have totaled $1.35 billion. All of that, except for the $32 million, has
been sent to Berkshire (or, in the early years, to Blue Chip). After paying corporate taxes on the profits, we
have used the rest to buy other attractive businesses. Just as Adam and Eve kick-started an activity that led
to six billion humans, See’s has given birth to multiple new streams of cash for us. (The biblical command
to “be fruitful and multiply” is one we take seriously at Berkshire.)
Let’s look at the prototype of a dream business, our own See’s Candy. The boxed-chocolates
industry in which it operates is unexciting: Per-capita consumption in the U.S. is extremely low and doesn’t
grow. Many once-important brands have disappeared, and only three companies have earned more than
token profits over the last forty years. Indeed, I believe that See’s, though it obtains the bulk of its revenues
from only a few states, accounts for nearly half of the entire industry’s earnings.
At See’s, annual sales were 16 million pounds of candy when Blue Chip Stamps purchased the
company in 1972. (Charlie and I controlled Blue Chip at the time and later merged it into Berkshire.) Last
year See’s sold 31 million pounds, a growth rate of only 2% annually. Yet its durable competitive
advantage, built by the See’s family over a 50-year period, and strengthened subsequently by Chuck
Huggins and Brad Kinstler, has produced extraordinary results for Berkshire.
We bought See’s for $25 million when its sales were $30 million and pre-tax earnings were less
than $5 million. The capital then required to conduct the business was $8 million. (Modest seasonal debt
was also needed for a few months each year.) Consequently, the company was earning 60% pre-tax on
invested capital. Two factors helped to minimize the funds required for operations. First, the product was
sold for cash, and that eliminated accounts receivable. Second, the production and distribution cycle was
short, which minimized inventories.
Last year See’s sales were $383 million, and pre-tax profits were $82 million. The capital now
required to run the business is $40 million. This means we have had to reinvest only $32 million since
1972 to handle the modest physical growth – and somewhat immodest financial growth – of the business.
In the meantime pre-tax earnings have totaled $1.35 billion. All of that, except for the $32 million, has
been sent to Berkshire (or, in the early years, to Blue Chip). After paying corporate taxes on the profits, we
have used the rest to buy other attractive businesses. Just as Adam and Eve kick-started an activity that led
to six billion humans, See’s has given birth to multiple new streams of cash for us. (The biblical command
to “be fruitful and multiply” is one we take seriously at Berkshire.)
Sunday, May 10, 2009
Windows Logo Key Uses
Window Logo Key + L is used to Lock your keyboard. Leaving your office for a meeting? Gotta grab some lunch? Gonna be right back? A quick Window Logo Key + L will lock your keyboard and keep your stuff safe!
Windows Logo Key (by itself)
Pulls up the START menu.
Manually type the name of a program to run in the “Run dialog box”.
Minimize all applications (quite handy!).
Undo minimize all applications (not sure why you would need to do this).
Locks your computer desktop (quite handy!).
Windows Help.
Starts Windows Explorer (quite handy!)
Starts “Find files or folders”. If you have Windows Desktop Search installed, it will open the Windows Search Box.
Minimizes all open windows and displays the desktop. Same as Windows Logo Key+M.
Opens the Find computer window. If you have Windows Desktop Search installed, it will open the Windows Search Box.
Cycles through the open applications on the taskbar (the bar at the bottom of your desktop). When you highlight the application you want, hit the enter key to display that application.
Shows the System Properties Window.
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