Sperity Real Estate Ventures

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What Are Business Buyers Buying?

The Q1 2021 Market Pulse Survey Report indicates that for those purchasing businesses for less than $1MM, Personal Services and Consumer Good Businesses are the top overall in purchased businesses. Notably, Restaurants moved down a notch in the <$500K range. In the $1MM-$50MM, Construction/Engineering and Manufacturing let the types of businesses purchased.

If you own a business in one of these top market sectors, note that Buyers are plentiful and seeking to purchase in these market sectors. Now may be a great time to transition to that next phase.
 
To start planning, determine how much money you will need to receive for your business to be able to live the life you want afterward. Think about these questions: What do I have now, and what do I need? Most people do not have their “number” figured out, but with a little work, you can get there quickly. Get some professional help from a wealth manager or financial planner to fine-tune that number.
 
We are here to help when you need to determine the marketability and approximate value of your business. For more information, please contact us by messaging us here or calling our office at 804-464-3898.
About the Market Pulse Report
The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold on the Lower Middle Market (values of $2MM-$50MM). The Q1 2021 survey was conducted between April 1-23, 2021 and was completed by 301 business brokers and M&A advisors from 44 states. Respondents completed 266 transactions this quarter. This is the 36th edition of this quarterly report.
Download here:
About International Business Brokers Association (IBBA) and the M&A Source

Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. For more information visit www.ibba.org or follow the IBBA on Facebook, Twitter and LinkedIn.

Founded in 1991, the M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information visit www.masource.org or follow the M&A Source on Facebook, LinkedIn and Twitter.

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Is now the right time to sell your commercial real estate?

As a commercial real estate investor, two of the most important and difficult decisions to make are when to sell and at what price. One of the most common questions we get is when is the best time to sell your commercial property? And in the same breath, we are asked — how much is my commercial property worth?

“Buy low and sell high”, right? If only it were that simple — flip a switch at exactly the right time. Even if you do get the highest price, you also need to consider how the sale fits into your long-term strategy. If you get a great return, but it’s at the wrong time, you may miss another business opportunity or not have liquidity for personal expenses at the time when you really need it.

When is the Best Time to Sell Your Commercial Real Estate

Let’s say that you just received what appears to be a great offer from a buyer out of the blue, or you have seen news about another building like yours selling recently and now you’re thinking that it might be worth exploring the market. Or maybe you recently bought this investment property and you’re thinking ahead. (Bravo for not waiting too long to consider your exit strategy!)

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You can break the decision making process into two silos (TIMING & PRICE), and those will interact together to make a case for whether you should sell or not. What we’re going to look at today is timing. (We will have another post up soon about pricing considerations.)

1. How is the economy and the real estate market surrounding your commercial real estate

There is no getting around it, some of the factors that influence the timing of the sale of your commercial property are out of your control. While you may not be able to control these influences, you want to know how they are affecting your timing. For example, if mortgage rates are the lowest that they have ever been (sound familiar?), then that bit of information lets you know that buyers are more incentivized to buy right now than they would be if rates were the highest that they have ever been.

  • What are the general market/economic conditions?
  • What are the vacancy and absorption rates for your specific market?
  • What is the market demand and current supply for this type of property?
  • What are the local price trends for commercial property sales and commercial leasing?
  • What are the commercial mortgage rates and terms being offered generally?

2. Drill down to specifics about your property, the commercial real estate leases and the tenants you have in place

Now that you have a sense for how the market is doing in general, and what kind of demand there is for your type of commercial property, let’s look at your asset specifically. Here we want to explore things about your building that may affect your decision on the timing of a sale. For example, having replaced the roof a month ago puts you in a very different place for marketability than having replaced it 20 years ago. Or, maybe you replaced it 5 years ago and want to sell before getting too far along and having a buyer question the long-term viability of the roof.

  • What is the financial strength and credit-worthiness of your current tenants?
  • What length of term is left on your leases? (commercial leases and apartment leases, if any)
  • How long have the current tenants been in their leases?
  • Are there any vacancies and how long does it take to fill space when there is a vacancy?
  • Is there any deferred maintenance on the building? (roof leaks, peeling paint, etc)
  • Consider the timing of capital expenditures (i.e., how long ago was the roof replaced?)
  • Is there any new development nearby? (this could hurt or help your marketability)
  • If you are also the tenant, what lease terms are you willing to offer?

3. Evaluate your personal situation and how the sale of your commercial real estate may impact you goals

Then consider your personal situation, goals, and investment strategy:

  • What is your anticipated timing of your retirement?
  • What type/class of property that you want to own?
  • What are the terms of your current commercial mortgage?
  • What is the status of any tax benefits? (i.e., historic tax credits)
  • What are the tax implications of selling vs. holding?
  • How does this real estate asset factor into your personal investment portfolio?
  • How much time/headache is this property costing you?
  • Is there something else you want to do with the capital you have invested here?
  • Are there any other personal circumstances to consider?

What can you do from here

After going through this review, you should have a solid handle on whether the timing is good for a sale — or is there another time that would be better, and how can you plan for positioning your property for sale. If there are a number of red flags that make it a bad time to sell, don’t just shelve this idea and walk away. Now is the time to look at those different pieces of the puzzle and see what you can improve. Think about what changes you could make that would create a more appealing situation for selling. When you renew a lease or sign a new commercial tenant, what should you keep in mind for the lease terms?

Of course, timing isn’t the only variable in making the decision to sell. Pricing is another huge consideration. While some aspects of timing will affect pricing, some aspects of pricing will also affect the timing.

We are here to help you achieve your goals, not convince you to sell. It very well may be that your perfect timing may be years away. Let’s make sure that we work together to take the appropriate steps to maximize the value of your commercial property.

While we are working on the next post, why not give us a call at 804-464-3898 or send us an email to get the conversation started? 

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Expanding Estate Sales with Myk-Beth’s

Michael Outen didn’t go from being a retired marine to estate sale extraordinaire overnight. However, a chance encounter while browsing a sale in his neighborhood changed that. The conversation turned into a job offer, and, as Michael puts it, “that was essentially the beginning of Myk-Beth’s Estate Sales.”

Before starting his own company, Michael learned the ins and outs of the business and also realized what so many estate sale companies weren’t doing. “Myk-Beth’s is a full-service estate sale company that not only does the estate sale and liquidates,” he says. “I’ve taken it a step further and we also prepare houses for the market.” While most companies leave as soon as the sale is over, Myk-Beth’s unique service also handles all of the donations of remaining items, removes all trash, and does whatever necessary to prepare a house for market, like painting, cleaning, and staging.

Since 2015, Myk-Beth’s Estate Sales has gained a reputation throughout their service area of Maryland, Virginia, and North Carolina for their professionalism and treating their clients’ family treasures like their own. Eventually, as business grew, Michael realized the need for a warehouse space to use as storage and for hosting sales. It was time to move out of his personal garage and provide a bigger space for his growing company. 

Michael was introduced by a residential Realtor to Sperity, which was able to understand the estate sales business and Myk-Beth’s specific needs. “Before you can find a space for us,” Michael says, “you have to understand our business. Not every Realtor understood that, but I was happy that Sperity was able to.”

For the new space, Myk-Beth’s required close proximity to the highway, a clean storage space, and security for their vehicles and valuables. Sperity was able to find just that near Richmond International Airport, in the East End of Henrico County. Myk-Beth’s new home serves as not just vehicle parking and office space, but a location to conduct estate sales when needed as well as a place for employees to meet.

With business rapidly expanding from 30 estate sales per year to now about 100 sales per year, Myk-Beth’s will be looking to find an even bigger space soon. “I wouldn’t imagine or think of going to anyone else when I get ready for the next space,” Michael says. Working with Sperity, he says, was an outstanding experience.

Myk-Beth’s is located at 4204-C Eubank Road, Henrico, VA 23231. For more information visit www.mykbeths.com

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Inside Out: How restaurants are restructuring their spaces during the pandemic.

Click to read the full article here.

Restaurateurs with big dreams and tight budgets have long lived by British real estate tycoon Harold Samuel’s adage: location, location, location. More often than not, much like the homes we invest in, the physical structure of an eatery and the address we plug into our phones are part and parcel with the identity of the restaurant itself.

“I have so many fond memories of ice cream as a child and nostalgia with my family – it was important to be somewhere with families and make connections and know all the neighbors and become the neighborhood scoop shop,” says Ruby Scoops owner Rabia Kamara. “I kept finding myself back in Brookland Park.”

Kamara and business partner Emmett Wright were hoping to open their first brick and mortar in the spring in a 2,400-square-foot blank slate, set conveniently on a corner and falling within their budget, ready to be built out to the owners’ liking. 

“This has been a big test and lesson in trust,” Kamara says. “I’ve helped open a lot of restaurants – I was not prepared for what opening my own situation would entail.” 

The pastry chef started Ruby Scoops in October 2014 as an online retailer, popping up at Washington area markets and festivals. In that time, she’s built a devout following of her small-batch ice cream and sorbet. “This is the longest time in five years I’ve not been selling ice cream to people,” Kamara says. 

The contract for Ruby Scoop’s 300 W. Brookland Park Blvd. location started to fall through this spring, and “broke down even further,” this summer, Kamara says. “It was very unclear about what the delivery date would be.” On July 27, Kamara posted photos to the Ruby Scoops’ Instagram page of a building very much in disarray, writing that it was no longer moving forward with 300 W. Brookland. 

With time and money already sunk in the original space, Kamara and Wright launched a Kickstarter to help them pursue the reality of a hard-earned storefront. More than 500 backers raised $32,191 for the team to invest in their new address, 120 W. Brookland Park, which is just 500 feet from the original and is set to open this winter. “Our Realtors knew we wanted to stay in the same area,” Kamara says. 

Nathan Hughes, principal broker at Sperity Real Estate Ventures, assisted Kamara and Wright in the search for their ideal scoop-shop location. Hughes has been a full-time business broker and commercial Realtor for 15 years, specializing in the inner workings of the Richmond restaurant market.

“It’s more art than science,” Hughes says of tracking down a coveted location. “Though there is a science to it for sure. What it really comes down to is your concept, what your offerings are and how it all fits into a neighborhood.”

There are still hot spots like the bustling, beer-centric Scott’s Addition district. Or the recreational and residential friendly Manchester, where Richmond’s first food hall, Hatch Local, is slated to open in the spring. 

But there is no new restaurant algorithm that will guarantee success in any neighborhood. No magic button that draws a constant stream of patrons. 

And even if you’re longing for a trendy locale, sometimes money won’t buy you what you love. For instance, Hughes says Scott’s Addition is difficult to get into, not because existing real estate prices are “insane,” but because there’s no “second- generation space,” and it’s very expensive to remodel.

In spite of the pandemic – and in the midst of more than two dozen area restaurants permanently closing since March – Hughes says he currently has about 15 to 20 businesses looking for storefronts. 

“For the most part they’re all looking for something smaller, around 1,000-2,000 square feet,” Hughes says. “A lot have a market component and most are focused more on takeout and outdoor space.”

 

Click to read the full article here.

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What Are the Benefits of Commercial Real Estate?

There are a lot of different options for people who want to get involved in real estate investing. Residential real estate is what commonly comes to mind, but that’s not all you can invest in. There are also opportunities in raw land, industrial real estate, and commercial real estate. While more difficult to break into than residential real estate, there are some benefits to getting into commercial real estate.

Greater Return

Commercial real estate has the potential to net its investors much greater returns than other types of real estate. Commercial properties are usually bigger than residential properties. Coupled with the tendency for commercial properties to be divided into different segments that can be rented to multiple entities, thus diversifying your risk, the amount of income generated is usually greater. What you can charge to rent your property will depend in part on the property value. This will have an impact on your rate of return, though there are other things you can do to boost your returns.

Additional Financing Options

One of the most common barriers to breaking into commercial real estate is how much more expensive the properties are to purchase. Fortunately for those getting into it, additional financing options are available that wouldn’t be options for residential investments. Commercial properties qualify for SBA loans, including 504 and 7a loans. In order for borrowers to qualify for SBA loans, they must meet requirements based on a few factors. These include the size of their business, the type of business, their credit background, and the business’s financial situation. Additionally, you’ll need to have some form of collateral, a 10% down payment, and a personal guarantee from anyone who owns at least 20% of the business.

Greater Income Stability

Income stability can be a major concern for real estate investors. After all, if you don’t have tenants paying rent, you still have to pay your mortgage and other expenses. Fortunately for commercial real estate investors, this type of real estate investing tends to offer greater income stability. More tenants in your property means that you are less impacted by losing one. Make sure you do your part to find the right tenants for your property to further increase your income stability.

Commercial real estate offers multiple benefits to investors. It offers the potential for greater returns, additional financing options, and greater income stability. If you have the resources and capital to get started in this type of real estate investing, it’s definitely worth your consideration.

Photo by Scott Graham on Unsplash

Ready to break into commercial real estate investing? Give us a call at 804-464-3898 and take a look at the properties we have for sale!

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Why Now is the Time to Make a Move on Commercial Real Estate

Commercial Real Estate in Richmond Virginia

Photo by Derrick Brooks on Unsplash

With the coronavirus pandemic sweeping the world, many businesses have shut down, leaving many vacancies in commercial real estate. Now is the perfect time to make a move in commercial real estate because prices are down, interest rates are lower and there is an excess supply of buildings. If you play your cards right, you could be successful in the commercial real estate industry after the pandemic crisis has abated.

Lower Interest Rates

Because of the pandemic and the current recession, commercial real estate properties have a lower interest rate than normal. The interest rate has reached incredibly low proportions, meaning that you don’t have to worry about paying a lot of money in interest overtime for your properties. You can buy many properties, most likely more than you otherwise would have, though you should still be wise with your purchasing power. While you will still need to keep an eye on making the numbers work during the pandemic, the lower interest rate could prove to be incredibly beneficial to buying commercial real estate.

More Supply

With many businesses permanently closing, commercial real estate there are deals to be had. These closures have left a supply in commercial real estate. With reopening delays and shifting customer demand, many businesses will not be able to last if they don’t make the right moves — resulting in vacancies and those properties becoming available for purchase. A high number of businesses are likely to close their doors forever because of the pandemic, meaning that there is a surplus of commercial real estate buildings. You can purchase these buildings now to make a profit later when more people are looking to buy commercial properties again.

Affordable

Because of the low interest rates and the increased supply of commercial real estate properties, these properties have become more affordable than they have in a long time. Because of their affordability, now is the perfect time to invest in commercial real estate. If you have the means to do so, you can buy up properties for cheaper prices than they would have been pre-COVID-19. Buying now could be incredibly beneficial in your future if the demand for business properties once again increases.

While you may not think now is the best time to look into commercial real estate properties due to the pandemic, it is actually a great time to look into commercial real estate properties because of their affordability, the increased supply, and the low interest rates.

Ready to make a move on commercial real estate? Find your next property investment in our listings!

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Instrumental Growth for Spacebomb

When Spacebomb, a Richmond based record label and recording studio, began to outgrow their Shockoe Bottom studio, they knew it would be a challenge to find a space that fit their needs and would allow them to grow in the direction they needed. Through a mutual friend, they had met and gotten to know Nathan over the years and knew if anyone would be up for the challenge, it was the Sperity team. Nathan and Veronica worked together to ensure the Spacebomb team wouldn’t miss a beat.

Spacebomb started looking for a new space in 2017. As a record label and recording studio, they had unique needs that they knew would take time to find. They were looking for a space that would have room to house both the creative team and the folks running the label and production company all under the same roof. Keeping these two teams together allows for communication in an efficient and fast paced way. “It’s a necessity in our industry,” says Jesse Medaries. “The ability to make decisions on the fly is super useful.” This space would need to have both an office area, and a full recording studio.

What does a recording studio require? A simplified breakdown includes the “live room” and the “control room.” The live room houses microphones where instrumentalists and vocalists perform and the control room houses equipment where the engineers and producers record the “tracks.” These are very specific needs, and not every space is able to be accommodating.

Nathan and Veronica didn’t waste Spacebomb’s time by showing them just anything that was available. They knew what their needs were, and showed spaces that they believed would truly work for them. Jesse remembered, “We looked at a few spaces that could have worked but didn’t quite meet what we needed. Eventually she showed us the space that we’re currently in.” Plans changed and a few months went by before the team decided to go back and look at the 106 S Robinson Street space.

The new space has been instrumental in their growth. “We’ve had a ton of really positive feedback on the space alone,” chimed Jesse. A lot of time, thought, and energy went into creating Spacebomb’s new headquarters. Not just the recording studio, designed by partner Trey Pollard in consultation with Adrian Olsen (of Montrose Recording), but the overall vibe and aesthetic — two things important in the music and art industries.

On top of finding a new space, Nathan and Veronica were tasked with finding a sublet for their Shockoe Bottom location. Handling both parts allowed for Spacebomb to focus on what really mattered: taking care of the artists they managed, and producing music.

 

 

 

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What Your Real Estate Website Needs to Be More Effective in Gaining Customers

These days, businesses simply can’t survive without a website. The internet is the first place a customer looks when they are looking to work with a business. With every business building a webpage, it can be hard to stand out. In order to get attention, you need to focus on your niche. If you run a real estate company, there are a few industry specific aspects of your website that deserve special attention. The following advice will help you focus your efforts so that customers are impressed when they view your page.

Add Quality Videos and Photos

There is absolutely no excuse for a pixelated image on your website. Pixelated photos and videos don’t allow customers to see the quality of the property. Instead, they get the impression that you don’t take pride in your work. On the other hand, HD photos and video show that you do high quality work. Video courses are a powerful type of lead magnet to include on your website. Quality video with nice music can help a customer build an emotional connection to the properties on display. It can be expensive to hire a quality photographer, but the returns are worth it.

Virtual Tours

The last thing you want to do to a customer is drag them through tours of properties that don’t catch their interest. This tires the customer, destroys their enthusiasm, and strains your relationship. You can avoid this with a virtual tour. With the emergence of 360-degree cameras, many real estate companies are starting to put together virtual tours of the properties that they sell and lease. This allows customers to get a better idea of what properties they want to visit in person. If a customer sees that you offer virtual tours, they will be much more interested in working with you, than a company that only shows pictures.

Engaging Content

In order to increase customer traffic to your website, you need to appear more in online searches. One of the best ways to do that is through content creation like a blog. Having a regularly updated blog will move you up in search engine algorithms. Having quality blog posts will create a good impression with your customers. It is a great way for you to show them your industry knowledge.

Working in real estate is a rewarding business. You are helping people find their dream space. You want to make sure that your hard work is paying off. By updating your website and following the above advice, you will see an increase in customers that trust in your ability to get the job done.

Looking for a new, bigger business location? We can help.

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Why work with a CBI?

From the IBBA’s website: “A Certified Business Intermediary (CBI) is an experienced business broker who is committed to the highest level of professional development the industry has to offer and has ethical values aligned with the IBBA standards of professionalism. A CBI has the ability to objectively guide clients through the intricacies of the entire marketing and negotiation process of a business sale, resulting in successful transactions and satisfied clients.

A CBI offers the most experienced professional representation available during the process of selling or buying a business. Along with having undergone a specialized initial program of detailed training, a CBI is required to earn continuing education credits to maintain the credential.

When you want to work with the best intermediary to buy or sell a business, look for the CBI designation.”

 

cbi certified business intermediary

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Coworking finds its home in Richmond @804RVA

Over the past decade coworking spaces have been popping up in big cities across the nation and with the changes in the economy, these spaces have been successful in fostering new ideas and startup businesses.

Larkin Garbee

804RVA Founder Larkin Garbee Photo by: Phil Riggan, Richmond.com

In America the median income for independent workers is about $51 thousand, according to a 2012 government report by the State of Independence government report. This coworking movement has even made its way to the Richmond market. 804RVA is the area’s first and only official co-working space, which is fueled by creativity and techie innovation.

Coworking is a concept that was originally cultivated in the late 1990s from the term “jelly” in New York City by a group of freelancers and it has now evolved into a worldwide movement. The concept is to create a shared workspace for freelancers, consultants and other people who typically work from home. The idea is to develop a space where creativity and new ideas can grow and people can exchange designs while working productively and freely.

804RVA was founded October 2011 by local small business dynamo, Larkin Garbee. “I was just looking for a creative, collaborative office space and I hadn’t understood the coworking culture yet,” Garbee said. Wolf shirt days, creativity, collaboration and jelly pretty much sum up the co-working movement at RVA. 804RVA is located on the corner of Allen and Broad streets near the VCU campus.

Garbee’s personality and experience is the model that the 804RVA coworking structure was built around. “I have a passion for technology but I also represent a lot of other things for small businesses and marketing,” she said.

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804RVA is an artistic, joint office area that is built in the showroom of Garbee’s other business, James River Tile. “I felt like it was a shame to have such a really gorgeous location that was being completely underutilized,” said Garbee. It wasn’t long before 804RVA was created.
“I think Larkin is really kind of the main reason most people are attracted to this and keep coming and that’s because she is a freaking fireball,” said Dorsey McFadden a digital marketing consultant and 804RVA coworker.

804RVA provides its members with varying levels of coworking zones including private offices, collaborative spaces, semi-private work areas and conference rooms. People come to 804RVA for a number of reasons including the value of working with others, for a sense of motivation, inspiration and unique networking opportunities. At 804RVA coworking gives people an opportunity to meet and interact with their peers in an environment that facilitates productivity and learning.

“To me and the next generation as a whole, we don’t want to just spend our time just passing out business cards. We want to learn, we want to get our hands on stuff and figure out how it works,” Garbee said. “Some coworking spaces are unique to having strictly just developers or just designers and I would say ours is truly a mix.”

Coworkers at 804RVA come from a variety of professional backgrounds such as web design, real estate, copy writing, web developing, marketing and researching.

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804RVA is known for its culture because it is different from that of a traditional workplace culture, since there are no bosses there is no tension between supervisors and workers. “The culture changes day-to-day depending on who comes in,” said Dan Kanach, 804RVA coworker and owner of One Duck Creative, a small creative media company. “It is generally like-minded, driven people who want to be around other driven people.” Most 804 coworkers agree that 804RVA provides a fun environment where individuals are free to create and collaborate. “I couldn’t see myself working with other people if I wasn’t here,” Kasach said, who described himself as a bit of an introvert.

Matt Russo is another 804RVA coworker who has been a member almost since the beginning. Russo is a freelance graphic designer and is currently working developing projects for 804RVA. He says 804 is still trying to invent its culture. Currently people are working hands-on trying to make the space a more active community rather than a place used strictly for working. “Members are trying to make 804RVA a place where people interact together, work on projects together and go out together,” Russo said. 804RVA offers classes and organizes social events to strengthen the overall coworking community.

Brian Bassett is a software development principal at IBM and a coworker at 804RVA who chooses to work from 804RVA instead of his traditional office setting because he finds the environment to be more dynamic, exciting, interesting and collaborative. “It’s collaborative even though people work on their own projects, work for different businesses and have different goals,” Basset said.

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Coworking is especially helpful to freelancers and remote workers because it provides those people with a sense of community and inspiration. “It creates a melting pot of creativity,” McFadden said, “not just design creative but techie too.” McFadden sees coworking spaces as motivational tools and she is driven by the office setting because it pushes her to be more accountable.

Coworking facilities like 804RVA operate based on memberships and provide members with better quality networking and stronger relationships. McFadden says small business people get the most out of these networking connections because it makes it easier access others and collaborate.

Coworking has helped some members break into new, cutting edge technology-based job markets. McFadden says coworking helps to hone professional skills and mold individual qualities and as a result of 804RVA she landed her first Pinterest account management job.

After talking with Garbee and Richmond’s coworkers the consensus is that people are tired of waiting on big companies to offer up jobs so they have taken matters into their own hands and created new jobs and projects through collaboration. People often turn to coworking spaces like 804RVA because of the lack of opportunities in traditional careers.

Some people agree with Dorsey McFadden and Dan Kanach and say coworking spaces serve a greater purpose as more transitional occupations. On the other hand others agree with Russo and Bassett and say these collaboration spaces have great potential to ultimately lead to better opportunities and new industries. As for Larkin Garbee, she says the future looks bright for coworking spaces in Richmond. As new ideas grow and evolve, she looks forward to playing host to more collaborative projects and classes in the future. She is currently planning on a larger scaled coworking space that will serve a larger community in the Greater Richmond Area by making things more accessible to non-members.

 

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2013 Elby Award nominees have been announced!

Here at Bandazian & Holden, we are proud to be a Silver Sponsor of the 2nd Annual Richmond Magazine Elby Awards! This awards program is THE restaurant awards program for Richmond, Virginia and was a hit from the start, last year. This is a time when the stars of the Richmond restaurant scene (some of the ongoing conversation can be found under #rvadine in the Twitterverse) take time out to honor the best and brightest among them.

I have not been involved in the selection or judging processes, but I don’t envy such a difficult decision. We have a lot of great talent and passionate operators and chefs here in town, and I hope that these awards will continue to honor and encourage more talent to develop.

If you are in any way involved in the restaurant scene, I encourage you to buy tickets and attend. Come support your favorite spots!

The event is on Sunday, February 10, 2013 at the Virginia Museum of Fine Arts and the doors open at 6pm. The awards are held at 6:30pm with a reception afterwards.

2013 NOMINEES 

Fine Dining Restaurant

  • Acacia Mid-town
  • Arcadia
  • Julep’s
  • Lemaire
 New Restaurant (Opened between Nov. 1 2011 and Oct. 31, 2012)

  • Deco Ristorante
  • Heritage
  • Peter Chang China Café
  • Tio Pablo
 Excellence in Service

  • Tiffany Gellner of The Magpie
  • Paul Heitz at Amour
  • Wendy Kalif at Bistro Bobette
  • John Van Peppen at Arcadia
Upscale Casual

  • Pasture
  • The Roosevelt
  • Sapori
  • Stella’s
 Cocktail Program

  • Heritage
  • Lemaire
  • Pasture
  • The Roosevelt
 Rising Culinary Star

  • Kyle Cox of Patina
  • Carly Herring of the Dining Room at the Berkeley
  • Jen Mindell of Avalon
  • Mike Yavorsky of Belmont Food Shop
Neighborhood Restaurant

  • Africanne on Main
  • The Black Sheep
  • Kuba Kuba
  • Tastebuds American Bistro
 Restaurateur of the Year

  • Jason Alley of Comfort & Pasture
  • Kendra Feather of Garnett’s, Ipanema & The Roosevelt
  • Ren Mefford and Chris Tsui of EAT Restaurant Partners
  • Paul Keevil of Millie’s, LuLu’s and Tio Pablo
 Chef of the Year

  • Tim Bereika of Secco Wine Bar
  • Peter Chang of Peter Chang China Café
  • Lee Gregory of The Roosevelt
  • Dale Reitzer of Acacia Mid-town
Culinary Student of the Year

  • Dana Goodchild at Culinard
  • Stephanie Louise Boehles at J. Sargeant Reynolds Community College
  • Jean Marie Kennedy at University of Richmond’s Center for Culinary Arts 

 

Who are you hoping will win? Who isn’t mentioned on this list that you think deserved to be on there? I would love to hear what you think!

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What’s going on with all of the restaurant closings lately?!

There has been a lot of attention given to the recent closings of restaurants in the Richmond area. There have been a lot lately, no doubt — here is a list of closings this year from Richmond.com that they are keeping up-to-date as things change. Some of these have been big surprises to the community at large, but it is important to keep in mind a  few things.

Not all businesses close (or are for sale) because of poor sales. There are a variety of reasons:

  • personal issues (divorce, wanting to spend more time with children, need to take care of an elderly parent, the owner has an illness)
  • the business strategy has changed (the owners no longer want to be in a particular area of town, the owners only want to operate where they own the building)
  • the owners are absentee and have other full-time jobs that are suffering because of the demands of owning a restaurant
  • the business is on track to make a profit but the owners have run out of operating capital
  • the owner is burned out, having spent the last XX number of years in the same location
  • the owners realize that the best time to sell is when business is booming — cash out while things are good and maximize the sales price
  • poor money management — sales might be great, but if you don’t manage your money well then you won’t stay open for long
  • the landlord isn’t willing to renew the lease — maybe they have a better offer from another prospective tenant
  • the owner isn’t changing, but they are changing the concept
I have seen all of these over the 8 years that I have been brokering restaurant deals and I am absolutely certain that I haven’t seen everything. There is always something new in this business, for good and bad.

There is also the counterbalancing effect of new restaurants opening up. Karri Peifer, Editor and Food Writer at Richmond.com, has been keeping track:

Almost one year ago, we posted a story about the transitioning of ownership of one Richmond restaurant legacy, Mulligan’s Sports Grille. The past month (Tuesday, October 9, 2012, to be exact) has unfortunately brought us the end to this story — covered here by CBS6 and here by Richmond.com. The restaurant’s official statement from their website is posted here (click the photo to enlarge) –>

Another restaurant that has gotten a lot of press coverage for its closing is Cafe Diem, at the corner of Patterson Ave and N Sheppard St in the Museum District — and right beside our office at 604 N Sheppard St. Since our company is involved in the ownership and management of their building, and most of the commercial property in the area, the media turned to us for some insight.

NBC12 coverage of Cafe Diem closing (with video and a guest appearance from yours truly)

Richmond.com coverage of Cafe Diem closing

Richmond Bizsense coverage of Cafe Diem closing

I think the press has done an excellent job with the coverage on this closing. It is often a touchy subject, not only for the restaurant owner(s) but the landlord, the restaurant employees, the loyal patrons, the restaurant vendors, and even the surrounding businesses.

In short, there are lots of reasons why restaurants close. Sure, times are tough all around and lots of people are cutting back on spending, but that doesn’t tell the whole story. If anything, if you enjoy a particular restaurant, be sure to visit it plenty and enjoy it while it’s here. It is fun to always look for the next big thing, but don’t forget about the old favorites either.  — By the way, there are LOTS of new restaurants coming soon. Keep an eye out here for announcements!

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Shop Locally, Boost the Economy

Over the past few years we’ve heard people talking about the importance of shopping local. These programs have been springing up across the country, urging consumers to join the “Buy Local” movement.

So, what difference does it make when communities shop at local businesses?

Well, the truth is when consumers buy from local stores instead of big box stores, more of their money stays in the community.

“Those purchases are twice as efficient in terms of keeping the local economy alive,” says The New Economics Foundation researcher David Boyle, in this article in Time magazine.

This movement plays a big role by boosting the economy and generating more jobs in the community.

Although sometimes the costs may be slightly higher at locally owned businesses, there are many benefits, such as lower transportation costs, more eco-friendly communities and the opportunity to form growing relationships with local business owners.

Buying local also alerts the community about the gaps in the market, creating a stronger sense of entrepreneurship and pushing for new businesses to prosper in markets that hadn’t previously existed locally.

When spend your money in RVA it keeps our neighborhoods unique with prospering local businesses versus streets lined with big box retail chains.

Here in Richmond, there are a few organizations that are dedicated to encouraging consumers to buy local goods and services. The Greater Richmond Retail Merchants Association is well known for their Think. Shop. Buy. Local movement, a large scale movement that works to promote the economic benefits of buying local goods by working across Richmond and the surrounding counties.

Originally created as a project at VCU, ShopRVA is a smaller nonprofit made up of local businesses, organizations, and individuals who are joined together to promote the culture and individuality of RVA. ShopRVA was created in 2009 and works to make RVA more green, economically and environmentally. Their goal is to make Richmond businesses into a strong foundation for a thriving local economy.

 “ShopRVA is new and filled with so much potential, people should listen to what they have to offer,” said Micah West, a student who worked with ShopRVA at VCU’s 2012 Social Media Institute. “They support the great things we have in the Richmond area and they want to express the creativity and personality of Richmond.”

These organizations work to remind us what makes Richmond such a unique city and they highlight why RVA is a wonderful place to live, eat, work and shop. With local restaurants on nearly every block, small markets throughout the Fan, and unique stores and boutiques in neighborhoods like Carytown and Libbie & Grove it is easy to shop RVA.

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Falling 2Q Restaurant Trends- Fast Food vs Casual Dining

Have you noticed a decrease in the amount of people dining at your favorite restaurants lately?

Well, a recent expert analysis by the global investment banking firm, Jefferies & Co. shows national restaurant earnings trends have weakened during the second quarter. It may come as a surprise that quick service or fast food style restaurants are holding on strong against the falling market trends especially when compared to full service restaurants.

Nation's Restaurant NewsAccording to an article on Nation’s Restaurant News, full service restaurants have been hit the hardest during this recent decline.

The instability in the economy plays the largest role in consumers dining choices. According to Jefferies’ analysts:

“Customers continue to struggle with economic/employment uncertainty, and affordability and value matter more than ever.” (per the NRN article).

The article also said that despite efforts made by casual dining restaurants such as discount and promotions, net traffic is dwindling.

Analysts even found a correlation between the rise in gas prices and the decrease in the amount of restaurant traffic.

“While gas prices spiked in March and have since come down, sales trends across the full-service restaurant industry have decelerated,” the Jefferies team noted in their report.

So the question remains why are fast food businesses doing better than full service restaurants? Is it just because of convenience and affordability?

The truth is, quick service restaurants have been exploring new concepts such as: menu ingenuity, creative advertising, and well-priced quality food.

Many fast food establishments have revamped their menus and created campaigns that showcase their efforts to become more affordable options to casual dining.

So, what are full service restaurants going to do to regain business?

In the NRN article analysts noted that consumers are looking for value, service, and atmosphere. With a good business plan and those qualities full service restaurants will recover.

The Restaurant industry proves to be unpredictable, as noted in another recent article on Nation’s Restaurant News, see how casual dining is making its recovery.

As the national restaurant market has declined in the past few months, have you noticed a change in RVA? Would you prefer a fast food option to your favorite dining dive in the city?

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RVA To Adopt Mass Transit by 2015

Good news, RVA!  After years of city-wide planning and discussions forums by various Richmond-based transportation groups like GRTC, VDOT and VHSR, mass transit is finally coming to Richmond.

Officially underway and expected to launch in 2015, GRTC will be implementing a “Bus Rapid Transit (BRT)” system from Willow Lawn to Rocketts Landing, with Main Street Station as a passenger drop-off/pick-up hub.

The first step towards bringing mass transit to Richmond, the idea of BRT is to have a large passenger bus run on a dedicated track lane that will bring large amounts of travelers to point-to-point destinations.

Ultimately, the BRT system will lay the foundation for an INTER-city passenger rail service, the “Light Rail,” to connect the whole Central VA region; from Norfolk to Petersburg to Fredericksburg to Washington, DC.

In a recent interview with Danny Plaugher, Executive Director for Virginians for High Speed Rail (VHSR), we discussed VHSR’s recent 16th Annual Meeting, “Connecting Virginia: How Regional Intercity and Light Rail are Changing Virginia.”

“VHSR hosted the meeting, because we felt there is so much positive news happening right now, in terms of rail development throughout Virginia.  Norfolk launched a Light Rail system called “The Tide” in August 2011, and in less than a year has exceeded more than one million riders.  More than 50,000 riders used the Light Rail service this past weekend alone.

Richmond needs to take this same initiative.  As an organization, VHSR wants to highlight all of our successes, including Norfolk, and focus on utilizing these models in other VA cities such as Richmond.”

As for what VSHR’s 2012 plans mean for Richmond business, Plaugher reveals the City’s latest plans for mass transit, details of where BRT will run and answers some burning questions weighing on the mind of Richmond residents.

[Read more…]

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Richmond Broadens Its Taste Buds at Broad Appetit

Did you know that (according to the National Restaurant Association) for every $1 spent in any of Virginia’s restaurants, 97 cents of that dollar goes back to helping build revenue for the Virginia economy?

Well, this coming Sunday, June 3rd will prove to be a HUGE boost for Richmond restaurants as well as the Virginia economy with the 5th Annual Broad Appetit Festival, happening downtown in Richmond’s Arts District.

 The highly anticipated festival, which runs from 11 AM – 6 PM, will stretch from the 100 to 300 blocks of West Broad Street and give Richmond natives, visitors, families, students and foodies alike a great sampling of the diverse, eclectic Richmond restaurant scene.

There will be over 60 local chefs, live music, youth activities and of course cuisine from popular restaurants like Bistro 27, Blowtoad, Comfort, Cous Cous, Olio and Six Burner.

Food prices will range from $3.00-$5.00 a plate as well as offer a variety of combos and mixed plates.

This will be the first time in festival history that Broad Appetit will feature exclusive Virginia beers and its first ever People’s Choice Awards, where festival attendees can vote for their favorite dishes.

To give back to the Richmond community, Broad Appetit is donating a percentage of proceeds from the festival to the Central Virginia Food Bank and Meals on Wheels.  Last year, a record crowd of over 30,000 gathered for last year’s festival, making Broad Appetit Richmond’s largest dining festival in Richmond’s history.

Broad Appetit  plays host to live music and events for all ages. It is the place where food and art intersect.

So, while you’re gearing up a hefty appetite for Broad Appetit on Sunday, take a walk around Richmond and experience the flavor that this eclectic city has to offer.

Which restaurant are you looking forward to trying out most at the festival?

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Starting a business in Richmond? You don’t want to miss this!

Being involved in helping start-ups in Richmond, we often get invitations to attend sessions put on by the Economic Development departments of the local governments. When we get them, I’ll make sure to post them here for your reference. The ones I’ve attended in the past have been extremely helpful and great brush ups on the resources that the localities provide for small business.

Here is the email from the City of Richmond that we received regarding the upcoming event:

As part of our  ongoing efforts to provide you with valuable information & resources, the City of Richmond Department of Economic and Community Development-Business First Richmond Program is pleased to announce another in our series of free educational seminars.

The City of Richmond Department of Economic & Community Development and the Virginia Department of Business Assistance will host the first in a two part series on establishing and  growing your business.   Part I in the series the” Entrepreneur Express Seminar” will address the basic concerns of establishing a business in Richmond.  The seminar will be held Wednesday, October 12, 2011 from 8:30 am to noon at the Police Training Academy, 1202 W. Graham Road, Richmond, Virginia 23220.  (See Entrepreneur Express Seminar Flyer for details)   Please share this information with your clients and colleagues.

To sign up (free!), you can either register online by clicking here, or call 804-371-0058.

Oh, and make sure to let me know if you’re going to be there! Leave a comment here or at least be sure to come up and say hello when  you see me there.

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Virginia ABC laws changing soon

Bar at Deanna's

*image courtesy of Alan Turkus (http://www.flickr.com/people/aturkus/)

A common complaint in the restaurant industry here in Richmond is about how outdated and difficult (and sometimes just plain nonsensical) the ABC regulations are, especially for start-ups. Well it might finally be time for that to change:

…the state’s Alcohol Beverage Control Board is for the first time in 20 years reviewing and updating all of its regulations in an effort to rewrite or eliminate any antiquated and burdensome restrictions. And they’ve asked the state’s merchants to help, giving them until Oct. 17 to propose changes.

Read more at the Washington Examiner

You heard them, folks. If you have an ABC license, then they want to hear from you! Be a part of the updates in the ABC laws. If you’ve seen what can be done better, now is your chance to speak up.

Where to speak up? I’m not exactly sure. I checked the Virginia ABC website and didn’t see anything specific about the initiative, but calling them directly would be a good place to start. If you do know the reporting process, please leave a comment with the information.

(Thank you to Richmond BizSense for pointing out this article in their morning email. If you’re not receiving it already, then you might want to rectify that.)

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Guide to Social Advertising

There is a lot of information out there about social media and how to use it to promote your business. I read a lot of write-ups on that and enjoy learning about social media — as you can tell with my involvement as a Founding Board Member of Social Media Club of Richmond/SMCRVA (website Twitter Facebook page).

Since the focus of this blog is not primarily social media, I try to keep that talk to a minimum. Once in a while I come across something that I just can’t help but share. This guide* from Eloqua struck me as particularly useful and to-the-point:

[slideshare id=8838937&doc=eloquagrandeguidetosocialadvertising-110812150816-phpapp02&type=d]

Speaking of social media and SMCRVA, be sure to check out this month’s SMCRVA event where you can meet and greet Richmond’s best connected social media folks and hear our esteemed speaker, Amber Naslund:

On Thursday, August 18, SMCRVA is giving Richmonders a unique opportunity to listen and learn from Amber Naslund (@ambercadabra), world class social media pro, blogger, VP of Social Strategy for Radian6 and co-author of “The NOW Revolution”.

Be one of the first 180 to buy a ticket and receive a free copy of Amber’s new book, thanks to The Hodges Partnership and Hodges Digital Strategies.

Buy tickets here (and quickly, so that you can be sure to have a copy of Amber’s book waiting for you at check-in!)

*Funny coincidence, I first saw this guide because of a tweet from Amber’s co-author, Jay Baer. See? Everything comes full circle.

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New insights on the sale of Cafe Gutenberg

As you may have noticed, we have Cafe Gutenberg for sale (see the big “Cafe Gutenberg – FOR SALE” in the menu above, or just click here). It’s a little bit of a different situation than normal, since usually these matters are highly confidential and even to find out the name and address of one of our business listings you would have to go through a screening process and commit to a Non-Disclosure Agreement.

In this case, the owners had decided to be upfront with their staff and even agreed to do an interview with Style Weekly about their decision to sell. Unfortunately, the article published didn’t accurately portray how the owners of Cafe Gutenberg feel about Shockoe Bottom or what they said about their reasons for selling the business.

Jason Guard, aka @rvafoodie, has given Chef Jen Mindell a chance to tell her side of the story as to why she and her partner are selling the business and to provide some background on how the past few years have been in Shockoe Bottom. Check out her guest post on Jason’s blog, Caramelized Opinions.

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7 key items to keep your corporation or LLC legitimate

No one likes to do paperwork. (well, almost no one — if you find that rare individual, hire them and keep them!)

In order to keep your corporation or LLC compliant, there are things that must be done consistently. These requirements are not onerous, but they are easy to overlook in the hustle of your day-to-day business.

I have seen a number of closing on business deals that are delayed because the corporate books weren’t kept up, or the annual fees weren’t paid and the corporation has to be re-instated. Be sure to set an appointment in your calendar once every 6 months to review all of these items and be sure that there is nothing that you need to catch up on.

Small Business Trends has a great post from this past week about this exact thing (here), so I won’t rehash it all over again. Here are the key points they make:

1. File your initial/annual reports (also known as a “Statement of Information”)

2. Keep up to date with your corporate minutes and resolutions

3. Record any changes for your corporation/LLC by Filing “Articles of Amendment”

4. Make sure you’re legal when conducting business out of state

5. Don’t commingle your personal and business finances

6. File DBAs for any name variations

7. Don’t forget to close an inactive business by dissolving your corporation/LLC

Read the full post for the details behind each of these pointers and consult with your accountant or your attorney, or whoever helps you with your corporate records.

If you are thinking of selling your business, this review should be on your checklist to take care of at the beginning of the selling process.

Take the little bit of time now to stay in compliance and avoid any red tape nightmares later when you find out that you didn’t!

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Small rental property owners breathe a sigh of relief

There is always a lot of new legislation passed every year that sounds like a good idea at the time and generally goes unnoticed, and every once in a while the consequences of that legislation become horrifyingly apparent afterwards.

This past year, the legislation that was causing so much heartburn for small property owners was a new IRS requirement that anyone with rental property file a 1099 for any repairs that add up to $600+ over the course of the year. (see my post about it here, from December 2010)

Good news — the provision was repealed before it could take effect!! (here is the actual legislation that was passed to repeal the IRS provision, in case you would like to read it)

Hats off to the Realtor community for standing against this for the good of the mom-and-pop investors, who are the ones would be most affected by those proposed requirements — and for Realtor Magazine’s blog for bringing the repeal to my attention. From their description of how everything unfolded, it seems as though everyone understood that this was good to do:

When the provision was included in the small business bill, REALTORS® were among the first and firmest opponents of it, helping to ensure that Congress understood the provision was an example of over-reach that was never intended to burden mom and pop property owners. Members of Congress and President Obama got the message and, in a rare example of agreement between not only Republicans, Democrats, and independents, but also between House and Senate chambers and between the legislative and executive branches, lawmakers agreed the provision needed to come out.

Nice to know that we don’t have this provision coming up to haunt us over the next few years, isn’t it?

 

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When should I sell my business?

Is now a good time to sell my small business?

What about all of the talk about changing the capital gains tax?

Should I sell now, or wait a couple of years?

What about the upcoming flood of retirees? Won’t all of that money coming into the market help increase prices?

Lucky for us, there is a recent article about exactly these questions in the New York Times from last Tuesday. Check out the article and the great comments by clicking here.

 

**I will delve into this topic more over the next year (and probably much longer than that, since this *is* what I do)

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How to make zoning easier to understand

Government regulations are typically so complicated that not only can the lay-person not understand what they mean, but they are written in such a way that even people that think they know what is meant are left arguing completely different interpretations.  Zoning regulations are no exception.

In fact, in NYC the zoning regulations are so convoluted that “In a recent case, a judge said the word “development,” which appears at least 2,500 times in the [zoning] resolution, did not mean what the city said.” (source: New York Times article — we’ll see more about that article in just a minute)

The Planning Commissioner for NYC, Amanda Burden, is attempting to make the zoning regulations a little more accessible to the general public by issuing a new city handbook with plain explanations and cartoon drawings that illustrate what particular zoning designations look like and what they mean.  Check out the coverage in the New York Times about what she has been doing to bridge that gap.

While this may not be the right approach for every locality, the idea is one that every local government should take to heart:  Start building tools that puts control of the government back into the hands of the people.  Sure, we elect officials to represent us and we should not be ruled by mob mentality (see: California), but the people also need to be able to understand what is being done — especially when we are expected to interpret these rules and abide by them.

I have seen far too many business and property owners try to follow the rules that have been laid out, only to find a health inspector or building inspector come in with a totally different understanding and cost the owner thousands of dollars in hard cost and lost business because the rules were not clear enough.

What do you think, Richmond? Have you had any issues with the local zoning regulations (city or county)? What would you suggest could be done to make the rules more clear?

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Redevelopment plans for Carytown get nod from Museum District

The redevelopment of the old Verizon building at 10 N. Nansemond Street has been hotly debated and contested. (see: the official site for the Carytown Place; Don’t Big Box Carytown‘s website; & this post and the accompanying comment thread on Caramelized Opinions for a good summary & feel of the debate)

The Museum District Association had originally ruled to oppose the redevelopment based on the original plans, but Friday they sent out a press release announcing the reversal of that position.  The gist of the situation can be summed up from this one paragraph in the press release:

The Board voted 13-1 in November to oppose the original SUP and subsequently provided the applicant with detailed requests for further changes to make it more amenable to the neighborhood. The applicant responded by altering the SUP to remove vehicular ingress/egress on Nansemond Street as well as reduce the number of available uses of the property to 10 uses. The applicant also agreed to limit the usable floor space of any one tenant to no more than 25,000 square feet, ensuring there would be multiple tenants in the building and ruling out a single, larger “big box” tenant.

The whole press release can be read here on the MDA’s website (right now it’s at the top, but it will shift down the page as new releases are issued).

What do you think? Are you satisfied with the MDA’s ruling, or are the changes in the plan not enough for you? In that case, what changes would be enough to get your support for the development?

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Retail Real Estate Market: 2010 vs. 2011

Retail real estate has gone through a lot over the past year and will continue to evolve over the upcoming year.  I can say from anecdotal experience in our office and from what I’ve heard from other colleagues in the business that the last half of 2010 was very busy, with the level of activity only set to increase going forward.

Retail Traffic is a great resource for information on the retail real estate market and I always enjoy seeing a new issue come out.  If you don’t want to miss anything, I would suggest you watch it closely too.  Of course, if I see anything particularly interesting, I will be sure to pass it along here.  For example…..

Their “Retail Real Estate’s 2010 in Review” is a comprehensive review of the biggest stories in retail real estate over the course of the past year.

And even more important, “What Will 2011 Bring?” (which links to a few other very informative pieces)

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What’s a business broker, and what do they do?

Business owners often wear many hats: Manager, Worker, Bookkeeper, Janitor, etc. Many owners can do well at all these tasks because they all pertain to their business. In many small businesses, the owner has a lot of proprietary equity; the business is truly the owner’s “baby” and they understand it from every angle. So often, when the decision to sell their business has been made, they are not sure how to proceed or have unrealistic expectations; they may talk to their CPA or other advisors and some may elect to attempt to sell it themselves. Sometimes this is because they are not aware there are any other options. Sometimes it is because they feel that they can do a better job than anyone else since they know their business so intimately.

However, the decision by an owner to sell their own business may be one of the largest missteps of their career. Why? Selling a business is much more complicated, involved and typically much more important than selling a house. Yet, imagine that you wanted to sell your home yourself without using a Realtor. You may know your house better than anyone, so it may seem a logical decision. But do you know what it’s really worth in today’s market? Do you know how to market it to as many qualified potential buyers as possible? Should you get an offer, do you have the experience to negotiate on your own behalf to get the most amount of money possible? Once agreed on a price, can you assist the buyer to assure proper financing is attained and keep the deal moving forward? Finally, even if you answered yes to any of these questions, can you afford the time it would take to complete this process? How much would this time really cost in terms of your productivity? Well, just like a house, you can ask each of these questions about your business and whether taking the sale into your own hands would really be to your benefit.

Fortunately for you, there is a better and easier way to sell a business that will typically result in a higher sale price, a faster close and require much less stress and time on your part. Chances are, there is a qualified business intermediary or ‘business broker’ in your town who, like a real estate agent, can properly price, list, market and sell your business. Selling a company confidentially is a complex and intricate process. A professional business intermediary will be able to handle every aspect of the sale cycle and keep the transaction moving forward through each step.

Services that a business intermediary will perform on your behalf will start with an evaluation of the business and an appropriate, professionally determined sale price for the company. A business intermediary will base the price on several pieces of information including the financial health of the business, demand in the marketplace for businesses like yours, condition of the assets, depth & strength of management, customer diversity, growth potential, and current industry sales trends. You may have heard that it’s as simple as a multiple of profits/EBITDA, but it’s really far more complex than a simple multiple to get the most appropriate (and often most lucrative) price and best terms (contrary to what you may hear in Wall Street, very few businesses sell for all cash).

Once an acceptable sale price or range is determined, the business intermediary will create a Confidential Business Summary about your business. Depending on your industry, this may include an Executive Summary of the business, management organization chart/personnel descriptions, facility specifications, sample marketing pieces and a summarized financial statement along with tax returns and/or other financial documents to verify the numbers. When completed, this will be the primary document to introduce the business to prospective buyers after they have signed a Non-Disclosure or Confidentiality Agreement.

This brings us to another great aspect of a business intermediary: Confidentiality. This is extremely important. Every time your business intermediary locates a potential qualified buyer, before disclosing any specifics about your business (including its name), they will have the prospective buyer sign a Non-Disclosure or Confidentiality Agreement. The document will cover many points including restricting the buyer from discussing with anyone that your business is for sale, and not allowing them to speak to or solicit your employees. This document protects you and your business.

Now that the business has been evaluated, a sale price determined and a Confidential Business Review Package created, your business intermediary will begin marketing the business. Finding prospective buyers, especially qualified ones, is one of the largest challenges to selling any company. Business Intermediaries will use a variety of methods to find qualified buyers. Methods that they will use depend largely on the industry your company is in, the size of the business and the geographic area that the business is located in. Some marketing channels may include working with buyers that the intermediary already has a relationship with who are looking for a business like yours; utilizing online resources made specifically for intermediaries to advertise the company to buyers looking for a business in your industry and price range; and using direct marketing methods to target synergistic or strategic buyers or other existing businesses that your company may fit in with. These are just a few broad avenues for marketing and successful intermediaries have their own proprietary ways of successfully finding qualified buyers, all of which are conducted discreetly and confidentially.

Once a serious, qualified buyer is found, your business intermediary will be there to work with you on negotiating the final purchase price and terms. These are often put into a Letter of Intent that will serve as an outline to the final Purchase Agreement. Ideally, the intermediary can generate multiple potential buyers and create real or perceived competition for the business. This tactic can often result in improved price and terms. Business intermediaries will often assist the buyer in finding financing sources and may have your business pre-qualified with an SBA lender if appropriate. An entire article could be written on financing alone, but suffice to say that an intermediary’s relationships and ability to work with various financing sources (banks, equity firms, private lenders/investors, etc.) is among their greatest assets to you and will open many doors to buyers in need of funding to complete the transaction. Finally, the intermediary will be with you through closing and will have helped to put together a plan between you and the buyer to ensure a smooth, successful transition and continuation of the business.

So for all the expertise, time saved and top sale price and terms attained, what does it cost to sell your business through an intermediary? Typically, business intermediaries are paid a fee which is typically a percentage of the sale price. Many intermediaries will also ask for a small fee upfront. This helps partially offset their costs in business valuation, marketing and advertising while also showing your seriousness and commitment to move forward with a transaction. The upfront fee may or may not be credited to the final fee upon the sale. In most cases, the sale price that a business intermediary can negotiate for your business will be higher than what a sale-by-owner transaction would bring, even after taking their fee into account; this is due to their knowledge, expertise and by maximizing leverage in the negotiation process. [By the way, as of 12/14/10 (and the foreseeable future), we have never charged an upfront fee here at Bandazian & Holden! – NVH]

For many small business owners, the sale of their business is one of their most critical life events; that may only happen once in their lifetime. Having the assistance of a focused professional to manage and lead you through the process all the way to the closing table can make a huge difference in insuring the outcome is consistent with your goals. We hope that you will consider meeting with a business intermediary to discuss your specific company and goals. A good and reputable intermediary will never charge you to discuss your options. We hope that you have found this article helpful and informative. The Carolinas-Virginia Business Brokers Association and its members are dedicated to serving our industry with the utmost integrity, loyalty and customer service.

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This article was prepared by the CVBBA for the purpose of assisting clients and their advisors in understanding the appropriate role and benefits of utilizing a business intermediary to facilitate the successful ownership transition of a small business. The reader has permission to copy and distribute as desired. For further information please go to www.cvbba.com.

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Important! New IRS requirements for all landlords

PaperworkAnyone receiving rental payments from either residential or commercial properties will need to review the newly-enacted small business legislation called HR5297 with their accountant and how it expands 1099 reporting requirements.

Currently, only real estate professionals that engage in property management services have to use 1099 forms to report any service provider that they pay more than $600 in a given tax year.

The changes will be enacted over the next two years as follows (details from the NAR Issue Brief released recently — can be found online here or hosted on my site here):

2011 Rule: ALL persons who receive rental payments must provide Form 1099. This affects ALL owners (both individuals and businesses) of rental properties, both residential and commercial. Thus, “mom and pop” investors and those who invest in real estate for their personal portfolios are subject to the new reporting requirement. Only aggregate annual payments of $600 or more for services (but not goods) must be reported.
2012 Rule: All businesses, including real estate businesses, self-employed individuals and independent contractors will be required to make a 1099 report of any aggregate annual payment of $600 or more to any person from whom they acquired goods and services.

Please keep in mind that I am not an accountant, so before you act on any of this information (or panic. or dismiss.) please consult with your accounting/tax professional.  But when I saw this come across my desk, I thought it was important that you are aware of these new rules!

(*Warning! Sales pitch!*) And, by the way, here at Bandazian & Holden, we have dealt with these reporting requirements from when they were first enacted for real estate professionals in the property management field, and we are accustomed to handling the necessary paperwork for our clients.  If you don’t feel like dealing with it on your own, let me know and come on board with us. (*End of warning. Enjoy your day!*)

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Restaurant trends for 2011

Everyone wants to know what the future holds, and the good folks at Nation’s Restaurant News have given us a peek at the future of restaurant trends.  It is interesting to see what’s brewing on the front lines of the restaurant industry, although I bet a lot of those “hot trends” will burn out before they get anywhere — and even more won’t make their way here to Richmond at all.

(from Pushing Daisies)

Maybe Richmond will get one of these?

The one that they are most confident in is — pies.  Not only sweet pies, but savory ones, too.  From what the article says, the pie shop is the new cupcake shop.  I guess it makes for a good headline (and no denying that pies are tasty!), but there are other predictions they make that I’ve already seen happening locally:

• The new mom and pop. Self-financed restaurants built on limited budgets are growing in number. “This is an economic decision,” he said. “There are a lot of people out there who still want to open up restaurants, and it’s a good opportunity to look at real estate in a down economy.” The restaurants are typically small and the owners are extremely involved. Some examples are eVe in Berkeley, Calif., and Sons & Daughters in San Francisco.
As for this being a “new” trend, I wonder where they’ve been?  I pretty much exclusively deal with this type of operator, and from everything I’ve ever heard that’s been the same for our company for the past 36 years.  If it’s becoming more prominent lately, then that could explain why things have been so busy lately (see this post I put up from just last week for more on that).

•  One-ingredient restaurants. “Restaurateurs are taking one ingredient and building full restaurants around them,” Freeman said. Following on the several-year trend of gourmet burgers, the trend is extending to grilled cheese sandwiches, hot dogs and sliders. “We’re predicting perhaps a peanut butter restaurant next or a big biscuit restaurant,” he said.

Looks like City Dogs has been onto something — they’ve certainly done well, with two very busy locations now (Shockoe Slip & the Fan.  I wonder what other concepts we’ll see that will play with this one-ingredient format.

What do you think the biggest trends for restaurants in Richmond will be for 2011?  What are you hoping will be the new trends?

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Play-by-play on the Richmond restaurant discussion

Last Tuesday was “An Evening at Morton’s”, where a select group of individuals involved in Richmond’s restaurant community were brought together to discuss Richmond’s food culture.  You can see my write-up and some useful links here.

I wanted to be sure you were aware of a few more resources that are especially useful if you weren’t able to follow along that night:

  • All of the participants answered some introductory questions before the panel, and the answers can be found here.
  • The live blog and questions from participants online were recorded and can be read in their entirety here.
  • Here is the NBC12 coverage of the event, and there is a video on that same page of the coverage.  The part of the report focused on the Steak Chat starts about halfway through the video.

I would love to hear what you thought of the discussion, and any insights you may have to share that didn’t get covered that night.  There was a lot to cover, and we could have gone on for hours — so there are definitely topics that didn’t get fully discussed.

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Richmond’s Food Culture — join in on the discussion tonight!

I’ve followed the ongoing series “An Evening at Morton’s” since it started off the year with a discussion on the Young Professional Business Climate, so I know that this is an exciting group and they have spun off some great discussions already.

Rather than rehash what has been said previously, I encourage you to read what Richmond.com has to say about the format of the evening and how you can participate. (nudge: go here)

[Okay, I lied. I am going to rehash just a little bit.] The masterminds behind the evening pick a topic, get experts together around a table at Morton’s Steakhouse down in Shockoe Slip, have a moderator facilitate the discussion, live blog & live tweet it, take questions and interactions with folks following along at home, record it, and release follow up posts wrapping up what was learned from the evening.

Thus is born #steakchatrva, or the long version, An Evening at Morton’s.

The topic on the table this month is Richmond’s Food Culture, which is a topic that is very near to my heart (and wallet, considering that most of what I do as a Commercial Realtor and Business Broker has to do with restaurants).  I had heard of the topic and suggested some folks and angles on the topic to make things interesting.  It hadn’t occurred to me that I might be asked to be at the table, so I was honored and excited to get the call.

We have a great panel for tonight’s discussion (taken straight from Richmond.com’s article on the evening):

While there are lots of people that could be included in the discussion, as evidenced by the larger than normal panel this month, there is only but so much space at the table.  It is always important to note that while we are representatives of the community, we are not the end-all to the topic and need the rest of the community to step up and participate.  We don’t want to lose the other voices that are equally important in the discussion.

So here is how you can participate:

What do you think we should be talking about? Have anything you would like to share?  Feel free to leave a comment or two here, if the urge should strike you.  Just keep in mind that I won’t be checking the blog once the discussion is underway, so chime in on the other channels listed above to have your voice heard after 6:30pm tonight!

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Business is getting better, Richmond

Business is booming!  Relatively speaking, at least, the economy is buzzing along.  Things certainly aren’t where they used to be, but they are getting better.  Running a small business is tough, no doubt about it — but it’s always tough.

One of the first questions I hear is “how is business” — and the answer lately has been that business is great!  The business I’m in (commercial real estate and business brokering) is busier than it has been in the past couple of years.  I can’t speak for the entire industry, but our small piece has been rolling along quite briskly.  The period between the 4th of July and Labor Day weekend is usually dead for us, except for the residential leasing, but this year defied past trends and was the busiest we’ve had in a long time.

As I’ve said in the past, I’m a small business.  I’m not Coca-Cola or Dow Chemical.  I don’t need the whole economy to be in a bubble to be doing well.  I just need to do well with and by my clients and customers to be rewarded.  Conversely, I don’t need the whole economy to be in recession for my business to be spiraling downward, either.

It’s not just our business at Bandazian & Holden that has been on the upswing lately.  I’ve been hearing from more and more friends that their businesses are doing the same thing, and that brings me great hope for everyone.

Don’t take my word for it, though.  The news outlets are tapping into the data and things are starting to spring back (or at least stop going down) all over:

From Nation’s Restaurant News: Atlanta’s restaurants seeing better days

Operators in the city pointed to an increase in private parties and convention business, which they expect to continue as the holiday season nears. And while diners remain value-conscious, some restaurateurs reported that increased drink and appetizer orders are giving check averages a boost.
From the Wall Street Journal:  Consumers Show Signs of Stirring
U.S. retail sales rose for a third consecutive month in September, posting a stronger-than-expected increase that should fend off fears of a double-dip recession but doesn’t signal a strong recovery.
And from right here in Richmond, in Richmond BizSense: Retail Slowdown Slowing Down?
For the second quarter, area sales totaled $2.59 billion compared to $2.64 billion in the second quarter of 2009.  The decrease of 1.89 percent is the smallest quarter to quarter change since BizSense began analyzing taxable sales data at the end of 2008—a sign that the slowdown may be flattening out.
…

Restaurants and bars are also doing a little bit better, growing sales by more than 6 percent in the second quarter. That is a big change from the 1 percent to 2 percent decrease reported for previous quarters.

What has changed?  I don’t know. Maybe people are tired of being scared and sitting on the sidelines, waiting for more bad news.  What I do know is that we got ourselves into this mess, and it’s up to us to dig our way out — everyone working on their small piece of the hole.  There is plenty of money to be made in good times and bad times, trick is that the people have to earn their money in the “bad times”.  Let’s keep making this work!

What do you think?  Have you seen business improving in your corner of the world?

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Richmond’s next frontier?

Style Weekly has an interesting article this week about a part of Richmond that has been largely ignored, Northside’s Brookland Park Boulevard.  There is a lot of great information in the article, so be sure to go here and read the whole thing, but I felt like this part in particular was a great summary of the past and present of this area:

Brookland Park Boulevard was a bustling commercial corridor in the 1950s and ’60s, with popular bakeries, restaurants, a theater and a nightclub. And today, despite the many vacant buildings, several businesses still do a thriving trade.

On Saturdays, the area’s many beauty and barber shops are packed. Soul food restaurant Sam’s Kitchen is doing well, Epps says, as is his brother’s newly opened restaurant, River City Seafood. The cheerful yellow Michaela’s Bakery, which opened in 2005, sells six-layer cakes and strawberry shortcakes wholesale. Owner Michael Hatcher wishes the city would think of some way to bring more customers in — something historic, he says, or a tourist attraction. Another longtime business owner, florist Sylvia Richardson, says loiterers are the biggest deterrent to business. She says she doesn’t feel comfortable even walking to the convenience store across the street.

The one thing on which the merchants agree is that Brookland Park Boulevard has potential. Car traffic is plentiful, because the boulevard connects the city’s North Side and East End, and the area is served by two bus lines. The street has some architectural gems, such as an old theater and an ornate bank building. Richmond Community High School, a school for the gifted, moved onto the boulevard in 2009. Young people are buying up houses in nearby neighborhoods.

Brookland Park Boulevard reminds me a lot of other Richmond gems like East Grace Street near the Carpenter Center and Manchester’s Hull Street.  A rich history, a questionable present, and a lot of enthusiasm and support to make the area a thriving community.

For another great write-up on the area, take a look at this very thorough post on This Decrepit Victorian from March 2010:  The Brookland Park Historic District.

What’s next for Brookland Park, I wonder?

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Richmond wins!

Winner at the Delta County Fair, Colorado (LOC)

We're number one!

As I mentioned earlier this year in “Richmond loves its working moms“, I appreciate when the rest of the world acknowledges Richmond’s superiority in all ways. It seems there are lists for everything, and while I find it to be overkill most of the time — any list can justify itself as being relevant and highly insightful by the obvious addition of Richmond (or Virginia as a whole) to the top of its rankings.

Imagine my delight when I found a helpfully compiled list of Richmond’s awards on the Greater Richmond Partnership’s website (here) and a similar but not completely identical list on the City of Richmond’s website (here).

Browse the awards and bookmark the links for future reference.  Find a few that mean  the most to you and let everyone know how great Richmond is! (and feel free to rub it in to friends that live in cities that ranked below us…)

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Official recommendations on the privatization of ABC stores

Virginia Governor, Bob McDonnell, has been getting a lot of news coverage lately over his push to privatize ABC stores statewide:  RTD from 9/3/10, NBC12 from 8/19/10, Hburgnews.com from 8/26/10, Style Weekly from 6/29/10.

This proposal still has a ways to go and many levels of bureaucracy to push through before it becomes reality, but McDonnell ‘s senior staff members have been studying the issue to make recommendations.  Here are their official findings (the full version), which were released today.  You can find the presentations that were made through this link. (although it doesn’t look like it will stay the top story but for so long)

I pulled out a number of points from the press release that I found to be the most intriguing:

  • 1,000 retail licenses will be auctioned off to the highest bidders
  • The licenses will be broken into three categories: 600 licenses for large establishments such as grocery stores; 150 for smaller establishments such as package stores and wine and beer shops; 250 for convenience stores/retail pharmacies
  • No one company will be allowed more than 25% of licenses within each level
  • 1,000 licenses will still give Virginia 1.8 outlets per 10,000 adults, far below the private state average of 3.8 per 10,000 adults
  • Majority of new license holders will be existing stores; Virginians will primarily see new shelves in retail establishments, not new establishments.
  • 332 licenses will be guaranteed for areas currently served by an existing ABC outlet
  • The additional 668 licenses will be granted based on population density
  • The wholesale side will also be privatized, allowing the Commonwealth to completely focus on law enforcement and regulation of distilled spirits
  • There is no tax increase in the privatization proposal
  • The Commonwealth will also make an additional $33 million on the sale of the ABC warehouse in Richmond and 19 state owned outlets
  • The number of ABC enforcement agents will be increased by 25%
  • The Commonwealth, through the ABC board, will maintain health, safety, law enforcement and marketing regulatory authority over private distilled spirit sales and distribution

Also, the point that has been making the most buzz lately is the idea of a 4% tax on the gross liquor receipts for restaurant operators.  That seems to have been taken out of the recommendations (given the 9th bullet point listed above), unless it’s a matter of semantics and they’ve buried it by not calling it a tax.  I didn’t have time to go through, but I’m sure there will be lots of other people combing through the details of this proposal word for word.

Another point that is of particular interest to me is the sale of the ABC main warehouse.  I wonder who will be listing that? *ahem* Mr. Governor, I’d be happy to take a look at it for you!

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Cleveland looks towards Richmond

It’s always interesting to hear what kind of impression Richmond leaves on someone visiting, and of course I especially enjoy it when that perspective reaffirms what I already love about the city.

Take a look at how a correspondent from Cleveland.com views the River City: “Richmond: Southern charm with an edge” (thanks to @verystickyrice & @sharischaefer for tweeting about the article, or I would have totally missed it)

I think he captured the feel of Richmond very well, and the piece was well thought through.  Granted, it’s a certain piece of Richmond and there are plenty more aspects that weren’t covered, but hey…he was only visiting for short time!  It’s hard to get the full view even while you’re living here.

Feel free to leave comments here on RVA Business, but it might be better to leave comments on their site to keep the discussion going.

Come on back anytime, Stephen!

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Should I wait to sign a lease, or is this as good as it gets?

Fear is a strong motivator, but so is hope.  They’re especially strong when they come together.  It’s a special moment when we’ve made it through an especially bad economic downturn and your business starts to tick upwards for the first time.

Commercial landlords have been through that hard time right along with every other business owner, and they are ready to see that uptick themselves.  They are ready to deal to get in good steady tenants.  At the same time, businesses are seeing new contracts come in (I know we have!) and they are ready to start taking advantage of the deals on leases — are you?

empty salon space

2217-2219 W Main Street

I’m certainly not the first to point this out, and I’m taking my cue from a recent online article on National Real Estate Investor — “Office Tenants and Landlords Battle for Upper Hand”

Landlord concession packages are not likely to get any bigger… “They’re as good as they’re going to get.” The same may be true with rents, he adds. “Rents may fall in some markets a bit further, but the ship starts to turn before a lot of people know they’re on it.”

Robert Bach, senior vice president and chief economist at Grubb & Ellis, agrees. “More tenants are active now and willing to sign a long-term lease because they are more confident in their own outlook and realize now is a good time because of the concessions available.”

They’re talking about office leases in the article, but it makes just as much sense with retail and restaurant spaces, too.

Of course you never know when the economy has hit bottom until it’s too late to take advantage of the best deals.  The great part is that as long as you’re not making decisions out of fear, you can keep your eye on your own business and use cues from your business activity help you decide when is the best time to move.

So if you’re seeing cues that things are getting better in your business, perhaps it’s time we talk about finding a good deal now…?

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Don’t let them catch you dancing!

Everyone can now rest easy, dancing will no longer be tolerated in the City of Richmond! (Well, when I say “everyone can now rest easy”, I really mean everyone except for those pesky dancers.)  From what I hear, dancing brings about all sorts of immorality so I am relieved that we won’t have dirty dancers parading around making light of the city’s laws. (My research really is confined to movies from the first half of certain movies from the 80’s)

I’m actually a little confused because visitors or transplants to the city are always complaining about how there aren’t many dance clubs here anyways.

Style Weekly has plenty of information in this week’s edition here, including a Q&A follow up session with a representative from the Mayor’s office.

As a tribute to the new City ordinance, here’s a video of some scenes from the movie Footloose:
[youtube=http://www.youtube.com/watch?v=wROSYW25vhc]

Actually, this ordinance is nothing new here in the Richmond metro area.  Chesterfield and Henrico have been issuing permits (or NOT issuing permits, depending on who you talk to) for a couple of years now.

Here are a few links about the stink from last year about Chesterfield and dance permits:

(thanks to Richmond Good Life’s time-capsule archives for those links!)

Henrico has the same type of ordinance and dance club permits, but I recently had a tenant that had to apply for one and it wasn’t a huge ordeal.

If you’ve run against any of these dance ordinances or know of how it’s handled in other areas, I’d love to hear about your experiences.  Leave a comment!

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Man v. Food — Richmond-style

Richmond restaurants have been getting lots of love from the national cable TV shows lately — Bobby Flay has been through a couple of times (or he’s been through once and he’s coming back through again soon) and Eric Ripert was spotted scouting the Richmond restaurant scene just last week.

Recently, Man v. Food stopped into three great local restaurants for their legendary food challenges — Caliente, Black Sheep, and Buz & Ned’s.  Rather than rehashing all of the details here, read this great recap of MvF’s visit to Richmond here on RVANews.com: “Man v. Food v. Richmond“

There was even a Nightline news crew covering MVF while they were here: click here for the video, which I can’t seem to embed.  It’s a Hulu video, so there are about 30 seconds of commercials, then skip ahead to 7:51 in the video by sliding the bar at the bottom.  Watch through about 15:52 and you’ll get to see the entire MVF report.

The reason I’m posting this now is because the Richmond episode will be airing soon, on Saturday, July 3rd at 10:30 E/P !  Set it up on your calendar, set your DVR because you won’t want to miss this!

[edit (6/26/10, 4:31pm): regardless of what the Travel Channel says, I’ve gotten multiple reports from people that their DVRs and other things have shown them that the actual premiere date is Wednesday, June 30th at 9:00pm E/P — given the incorrect info that I was relying on earlier, I feel that I should warn you that while the date has been confirmed by multiple people, I found the time through  some further research on the Travel Channel site]

In the meantime, check out the Travel Channel‘s photo slideshow of the visit.

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What if the last owner lost their ABC license?

Every once in a while a potential restaurant buyer will ask me about how any past ABC violations may affect the ABC licensing of a new establishment.  Here’s a fairly extreme case, but an important lesson to learn (from a RTD article last week, “Former Velvet strip club site can’t sell alcohol“):

Under state law, the ABC Board may refuse to allow a hearing on a license request if a license for that location has been refused or revoked within 12 months.

….

“It is enforcement’s position that without a significant period of time separating the Velvet reputation and clientele from that location, the reopening of a similar establishment will contribute to the reoccurrence of the same issues dealt with in the Velvet hearing,” said Francis J. Monahan, director of the law-enforcement bureau.

Oh…what’s the lesson you say?  Don’t mess with the Virginia ABC board! You may not agree with them and it may suck sometimes, but you have no choice but to play by their rules if you want to remain in business.

(I wrote about Sam Moore’s ongoing ABC issues a couple of years ago, too:  “Poor, poor, strip club owner…“)

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Restaurants in Richmond: New names & expansions

Every time you turn around in Richmond, there is a new restaurant popping up…well, pretty much everywhere! This week is no exception.

I’m not going to pretend that I’ll keep you up with ALL of the openings and closing through this blog, but I’ll keep up my tradition of sharing news when I’ve come across it and when there is a particularly active week or two I’ll compile the info and point you to where I’ve seen the news.

Speaking of which:

1) The old Fuddruckers at the intersection of West Broad Street and North Parham Road has been sold to Buz Grossberg to expand his Buz & Ned’s Barbeque concept to a second location from its original home on Boulevard. That was announced a few weeks ago or so. The reason why I think it’s noteworthy today is because of Buz’s interview with Al Harris of RichmondBizSense that was posted this morning. Lots of great info on his plans for the building, and how the deal worked when his last attempt at a new store didn’t.

2) Secco Wine Bar opened this week in Carytown (Style Weekly article from last week), after at least a couple of months of public preparation (and who knows how long this was in the works before it was made public).

3) Dos Amigos Burrito opened a couple of weeks ago on MacArthur Avenue in Northside, to replace a short-lived ice cream shop (posting from North Richmond News). From what I’ve heard, it’s related to Northside Grille around the corner on Bellevue.

4) Empress is opening with a “Grand Soiree” this Wednesday, 4/28, at 2403 West Broad Street (former location of Enoteca Sogno, and Ma Musu’s West African Cuisine before that). Check out this article on RVANews for more details on the restaurant and the Grand Soiree.

AND, there are plenty more on the immediate horizon! I can think of at least 5 others new restaurants that are coming soon, but they are all at a stage that I can’t spill the beans. Believe me, that you’ll be excited when you hear (and I’ll let you know as soon as they let me!).

If there are any others that I’ve missed, please share. We have a great restaurant scene here in Richmond, and it’s only getting better as we celebrate it!

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How does VA rate according to Forbes.com?

It was tight….who am I kidding, of course Virginia came out on top as the top-ranked state in the Forbes.com annual results.  A key point to keep in mind is that this is the second annual "The Best States For Business" article, and Virginia won last year, too!

The article is quick to point out, however, that Washington is right on our heels, and that we did not dominate the categories as we did last year.  The flip side to that is Virginia dominated the categories last year, and we still won this year!

Two key issues for going forward from here, and to capitalize on our success thus far:
1)  Washington did very well overall, and other states had high marks for their successes.  We should take the opportunity to study what they’ve done that made them successful in those areas, and see if those principles can be applied in Virginia.  Not all of those ideas can be easily transplanted, but we would be remiss to not consider what can be learned.
2)  Just like we highlighted from last year’s award from Forbes, we need to mazimize the good press from this recognition.  Let’s use it to draw in fresh blood, and to enhance the business environment.

To see what some Virginia politicians are saying about the outstanding results, see Vivian J. Page’s blog entry, "VA again Best State for Business".

Out of the 50 states, Virginia ranked as follows:
17th – Business Costs
5th   – Labor
1st   – Regulatory Environment
11th – Economic Climate
8th   – Growth Prospects
6th   – Quality of Life

Congrats, Virginia!!

(See also: RVA in Top 10 for Job Hunting from 8-11-06 & Maximizing the Good Press from 8-17-06)

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Why There Are No Bars in Virginia

No, really — there is no such thing as a bar in Virginia.  As a very deliberate result of the Virginia ABC Board’s regulations on the food/alcohol ratio, there are only restaurants that happen to serve food.

At the end of every year, restaurants must file
a mixed beverage annual report that details alcohol sales and shows the
ratio of food to liquor. ABC stipulates that each restaurant must sell
enough food and soda to account for at least 45 percent of liquor and
non-liquor sales, beer and wine excluded

A recent Food Fight article (which is the source of the previous quote) in Brick [EDITOR’S NOTE, 7/2/16: The Brick Weekly website is gone, so the links have been removed] gives a good overview of the impact this has on local business owners, and views from both sides.  Mostly, it is a government regulation, and just like anything else with the Health Board or the ABC Board, as a restaurant owner it is better to just learn to live with the rules and jump through their hoops and just get back to making money.

God help anyone that can help change the system and these arbitrary limits, but it’s not worth trying to make waves until you are firmly established and can work from the inside.

I still don’t feel like I have a grasp on why this rule is in place, except for the typically cynical view that Richmond is behind the times and too much under the influence of the “Moral” Minority.  The reasons that I have heard so far just ring hollow.  (i.e., This law is not necessary for keeping bars from popping up on every corner.  There are building codes and regulations on usage that can handle that.)

Something just feels wrong about my gut reaction against the regulation, so if someone can explain it, then please do.  I’m all ears (or eyes, in the case of reading responses).

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