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In today’s fast-paced business world, selling your business quickly and profitably can be the key to unlocking your next big opportunity.
But navigating the complexities of the market and finding the right buyer can be a daunting task. Fear not, as we are here to guide you on the fast track to success.
This blog post will provide essential tips and strategies to ensure a smooth and profitable sale of your business. From preparing your business for sale to negotiating the best deal, we’ve got you covered. Whether you’re a seasoned entrepreneur or a first-time business owner, our expert advice and insights will help you navigate the challenging process of selling your company.
Discover how to position your business for maximum value, attract qualified buyers, and close the deal quickly. With our proven techniques and insider secrets, you’ll be empowered to take control of the sales process and achieve remarkable results.
Don’t waste any more time. Prepare to embark on your journey to a fast and profitable business sale. Let’s dive in and pave the way to your next successful venture.
In today’s fast-paced business world, selling your business quickly and profitably can be the key to unlocking your next big opportunity. But navigating the complexities of the market and finding the right buyer can be a daunting task. Fear not, as we are here to guide you on the fast track to success.
This article will provide essential tips and strategies to ensure a smooth and profitable sale of your business. From preparing your business for sale to negotiating the best deal, we’ve got you covered. Whether you’re a seasoned entrepreneur or a first-time business owner, our expert advice and insights will help you navigate the challenging process of selling your company.
Discover how to position your business for maximum value, attract qualified buyers, and close the deal in record time. With our proven techniques and insider secrets, you’ll be empowered to take control of the sales process and achieve remarkable results.
Don’t waste any more time. Prepare to embark on your journey to a fast and profitable business sale. Let’s dive in and pave the way to your next successful venture.
Selling your business quickly and profitably is essential for several reasons. First and foremost, time is of the essence in the business world. The longer your business stays on the market, the more potential buyers may question its value and lose interest. By selling quickly, you can capitalize on the excitement and momentum surrounding your business, maximizing its perceived value.
Moreover, selling your business profitably ensures you receive a fair return on your investment. After years of hard work and dedication, you deserve to reap the rewards. A profitable sale can give you the financial freedom to pursue new ventures or enjoy a well-deserved retirement.
Lastly, selling your business quickly and profitably allows you to maintain confidentiality. The longer the sale process drags on, the more likely your employees, customers, and competitors will become aware of your intentions. By executing a swift and discreet sale, you can protect sensitive information and preserve the value of your business.
Several key factors can significantly impact the speed and profitability of a business sale. First, the industry in which your business operates plays a crucial role. Industries currently in high demand or experiencing rapid growth tend to attract more buyers, increasing the likelihood of a quick and profitable sale.
Additionally, the financial health and stability of your business will be closely scrutinized by potential buyers. A well-documented financial history, solid profit margins, and a diverse customer base will undoubtedly enhance the appeal of your business. On the other hand, excessive debt, declining revenues, or reliance on a few key customers may deter potential buyers and negatively impact the sale.
Furthermore, the strength of your management team and the scalability of your business are important considerations. Buyers often look for businesses with robust management structures that can operate successfully without the owner’s constant involvement. If your business relies heavily on your expertise or lacks a strong management team, it may be perceived as riskier and less attractive to potential buyers.
To ensure a quick and profitable sale, it’s crucial to prepare your business thoroughly. Start by conducting a comprehensive audit of your financial records, ensuring they are accurate, up-to-date, and well-organized. This will instill confidence in potential buyers and expedite the due diligence process.
Next, assess your business operations and identify areas for improvement. Streamlining processes, eliminating inefficiencies, and enhancing profitability will not only make your business more attractive to buyers but also increase its value. Consider investing in technology or updating equipment to demonstrate your commitment to staying competitive in the market.
Furthermore, take the time to declutter and enhance the physical appearance of your business. A clean, well-maintained workspace creates a positive impression and showcases your attention to detail. Additionally, consider investing in professional branding and marketing materials to enhance the overall perception of your business.
By taking these steps to prepare your business, you’ll position yourself for a smooth and successful sale, attracting qualified buyers and maximizing your chances of achieving a quick and profitable transaction.
Determining the value of your business is a critical step in the selling process. There are various valuation methods you can employ, including the market approach, income approach, and asset-based approach. Each method has its advantages and disadvantages, so it’s essential to consult with a professional business appraiser to ensure an accurate valuation.
The market approach involves analyzing recent sales of comparable businesses to estimate the value of your business. This method relies on market multiples and considers factors such as industry trends, growth potential, and market conditions. It provides a realistic assessment of what buyers will pay for businesses like yours.
The income approach, on the other hand, focuses on the future earning potential of your business. By projecting future cash flows and discounting them to their present value, you can determine the value of your business based on its ability to generate income. This method benefits businesses with solid growth prospects or unique intellectual property.
Lastly, the asset-based approach calculates the value of your business based on its tangible and intangible assets. This method is most appropriate for businesses with significant tangible assets, such as manufacturing companies or real estate holdings. Intangible assets, such as patents, trademarks, or customer relationships, are also considered.
Regardless of the valuation method you choose, it’s crucial to seek professional advice to ensure an accurate and realistic assessment of your business’s value. A professional appraiser will consider all relevant factors, ensuring you have a solid foundation for negotiating the sale of your business.
Finding the right buyer for your business is essential to achieving a quick and profitable sale. The key is to target potential buyers with a genuine interest and the financial means to acquire your business. Here are some strategies to help you find the right buyer:
1. Market your business discreetly: To maintain confidentiality, it’s crucial to market your business discreetly. Engage the services of a reputable business broker who can help you identify qualified buyers while maintaining confidentiality.
2. Tap into your network: Leverage your professional network to find potential buyers interested in acquiring your business. Contact industry contacts, business associations, and professional organizations to spread the word about your business sale.
3. Utilize online platforms: Online platforms, such as business-for-sale websites or industry-specific forums, can be practical tools for reaching a wider audience of potential buyers. Ensure your listing is compelling and provides comprehensive information about your business.
4. Consider strategic buyers: Strategic buyers, such as competitors, suppliers, or companies looking to expand into your industry, may be willing to pay a premium for your business. Identify potential strategic buyers and approach them directly to gauge their interest.
Remember, finding the right buyer is not just about the financial aspect. Cultural fit, shared values, and a genuine interest in your industry can also contribute to a successful and mutually beneficial transaction. Take the time to vet potential buyers and ensure they align with your vision for the future of your business.
Negotiating the sale of your business is a critical step in achieving a profitable transaction. Here are some tips to help you navigate the negotiation process:
1. Establish your priorities: Before entering into negotiations, clearly define your priorities and objectives. Identify the minimum price you’re willing to accept, as well as any deal structures or contingencies that are important to you.
2. Be prepared and flexible: Arm yourself with a thorough understanding of your business’s strengths, weaknesses, and growth potential. Anticipate potential objections or concerns from buyers and be prepared with compelling responses. Additionally, be open to creative deal structures or financing options that may appeal to potential buyers.
3. Seek professional advice: Engage the services of an experienced transaction advisor or lawyer specializing in business sales. They can help you navigate complex legal and financial matters, protect your interests, and ensure a smooth negotiation process.
4. Maintain open communication: Effective communication is vital to a successful negotiation. Be transparent with potential buyers about your business’s strengths, opportunities, and any potential risks. Address any concerns or objections promptly and constructively.
5. Focus on the bigger picture: While price is an essential factor, don’t lose sight of the bigger picture. Consider the overall terms of the deal, such as the timing, payment structure, and any ongoing involvement you may have in the business. A favorable deal structure may outweigh a slightly lower purchase price.
By employing these negotiation strategies, you’ll be well-equipped to secure the best possible deal for your business, maximizing your financial return and ensuring a smooth transition for both parties involved.
Selling a business involves various legal considerations that must be carefully addressed to protect your interests and ensure a smooth transaction. Here are some key legal aspects to consider:
1. Confidentiality agreements: Before sharing sensitive information about your business with potential buyers, have them sign a confidentiality agreement. This agreement ensures that the buyer will not disclose any confidential information or use it for purposes other than evaluating the potential purchase.
2. Purchase agreement: The purchase agreement outlines the terms and conditions of the sale, including the purchase price, payment terms, representations and warranties, and any post-closing obligations. Engage the services of an experienced lawyer to draft or review the purchase agreement to ensure your interests are protected.
3. Due diligence: During the due diligence process, potential buyers will thoroughly examine your business’s financial records, contracts, leases, intellectual property, and other relevant documents. Ensure all necessary documentation is organized, accurate, and readily accessible to expedite the due diligence process.
4. Transfer of assets and liabilities: Determine which assets and liabilities will be transferred as part of the sale. This may include physical assets, intellectual property, contracts, leases, and ongoing obligations. Consult with a lawyer to ensure a smooth transfer and minimize any potential liabilities.
5. Tax implications: Selling a business may have significant tax implications. Consult with a tax advisor to understand the tax consequences of the sale and explore potential tax-saving strategies.
By addressing these legal considerations early in the process and seeking professional advice, you can minimize potential risks and ensure a legally sound and smooth transaction.
To ensure a smooth and successful business sale, consider the following tips:
1. Be prepared and organized: Thoroughly prepare your business for sale by organizing financial records, streamlining operations, and enhancing the physical appearance of your business. This will create a positive impression and instill confidence in potential buyers.
2. Market your business effectively: Develop a compelling marketing strategy to attract qualified buyers. Highlight the unique strengths and growth potential of your business, and leverage various marketing channels, both online and offline, to reach a wider audience.
3. Maintain confidentiality: To protect sensitive information and maintain confidentiality, work with a reputable business broker or advisor who can help you identify qualified buyers while preserving confidentiality.
4. Engage professionals: Seek professional advice from experienced lawyers, appraisers, accountants, and transaction advisors who specialize in business sales. Their expertise will help you navigate complex legal, financial, and valuation matters, ensuring a smooth and successful transaction.
5. Be patient and flexible: Selling a business can be a lengthy process, requiring patience and flexibility. Be prepared for negotiations, due diligence, and potential delays. Stay focused on your objectives and be open to creative deal structures or financing options that can expedite the sale.
By following these tips, you’ll be well-prepared to navigate the sales process, attract qualified buyers, and achieve a smooth and successful business sale.
When selling your business, it’s important to avoid common mistakes that hinder your chances of a successful sale. Here are some pitfalls to watch out for:
1. Lack of preparation: Failing to prepare your business for sale thoroughly can significantly reduce its perceived value and deter potential buyers. Take the time to organize financial records, streamline operations, and enhance the physical appearance of your business.
2. Overpricing or underpricing: Setting an unrealistic or overly inflated price for your business can deter potential buyers. On the other hand, underpricing your business may leave money on the table. Conduct a thorough valuation and seek professional advice to ensure an accurate and realistic pricing strategy.
3. Lack of confidentiality: Maintaining confidentiality is crucial when selling your business. Avoid disclosing your intentions to employees, customers, or competitors prematurely. Engage the services of a business broker or advisor who can help you identify qualified buyers while maintaining confidentiality.
4. Poor negotiation skills: Effective negotiation is vital to achieving a successful sale. Be prepared, establish your priorities, seek professional advice, and communicate openly with potential buyers. Avoid being overly rigid or emotional during negotiations, as this can deter potential buyers and hinder the sale process.
5. Neglecting legal considerations: Failing to address legal considerations can result in costly mistakes and potential legal disputes. Consult with experienced lawyers and professionals to ensure that all legal aspects, such as confidentiality agreements, purchase agreements, due diligence, and asset transfers, are adequately addressed.
By avoiding these common mistakes, you’ll increase your chances of a successful and profitable business sale. Preparation, patience, and consistency are the things that will make for a successful sale of your company. It’s a process, and it doesn’t happen overnight, but the reward will likely be enjoyed for years to come. Book a free call with me if you have any questions about selling a business by clicking here.
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Urgent Care Facility shutting down and liquidating all equipment. Three-month-old fixtures, inventory, and furniture must go. Items are being sold online to the highest bidder. This page will be updated as the inventory is updated. Items can be shipped or picked up in Glenn Dale Maryland. Shipping fees will be added at cost. Learn more about the items for sale here:
Zoll AED Plus Fully Automatic Defibrillator w/ AED Cover
3 Cu.Ft. Counter Height Laboratory Refrigerator
Physician Exam Stool
Primo Bottom-Loading Water Dispenser 5 Gallon Bottom Loaded Water Cooler
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This is a classic tale that is eye-opening for anyone that is striving to attain riches. Getting rich is fantastic, but knowing the price you pay for it is essential. Get rich but don’t sacrifice the wrong things to do so. The following essay was written by Nailia Tasseel, which makes this point eloquently and simply.
A powerful executive was walking along the beach in a small coastal village. He noticed a small boat with just one fisherman. Inside the small boat were several large fish. The executive complimented the fisherman on the quality of his fish and asked how long it took to catch them.
The fisherman replied, “Not very long.”
The executive then asked, “Then why didn’t you stay out longer and catch more fish?”
To which the fisherman responded, “I have enough to support my family.”
“But what do you do with the rest of your time?” the executive asked.
The fisherman said, “I sleep late, fish a little, play with my children, take a siesta with my wife, and stroll into the village each evening where I sip wine and play guitar with my amigos.”
The executive quickly interrupted, “I have an MBA from Harvard and can help you. You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat. With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet. After many years of growth, you would need to leave this village and move to the big city where you will run your expanding enterprise.”
“And after that?” the fisherman asked.
“Afterwards? That’s when it gets really interesting,” answered the executive, laughing. “When the time is right you would sell your company stock to the public and become very rich. You could make millions.”
“Millions? Really? Then what?”
“Then you could finally retire and move to a small coastal fishing village! There you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings, where you would sip wine and play guitar with your amigos.”
I hope you find this essay meaningful. Wealth is good, but you also want to be a rich person. You can be wealthy and rich at the same time if you are self-aware. Make business decisions that accomplish both and you will be truly happy.
There are myths about buying a business with no money down that I wanted to discuss in this post. It is possible, but that doesn’t mean it’s risk-free. The definition of an entrepreneur is “a person who organizes and operates a business, taking on greater than the typical financial risk.
My experience is that a personal guarantee or secured assets are part of most deals I have seen or been part of. There is nothing wrong with taking calculated risks. No bank or person will want to loan money to anyone who doesn’t have a high likelihood of repaying the loan. It should be disqualifying if you can’t create a business plan showing how a company you are acquiring will pay back any debt. Good deals will attract capital if the business idea is good. Here are six ways to buy a business with no money down.
Some might say entrepreneurs are risk-takers, which is probably true, but the risk can be minimal if you have the knowledge and take the proper steps. “Skydiving is also considered dangerous, but using a parachute and proper training minimizes the risk. The odds are 99.7% in your favor by taking standard precautions. Skydiving and business are the same in that risk can be significantly reduced by knowledge and preparation.
The questions to ask when buying a business are not only about the answers. It’s what is not said, non-verbal clues, and the temperament of the business owner. The questions below are meant to open the conversation up and learn things about the company that can’t be found on financial statements and tax returns. Questions should be asked in a way that is non-threatening and conversational. Your goal is to learn more about the business and establish the respect and trust of the business owner. This will serve you well in getting the company’s best terms and orderly transfer. The following are questions you may ask, but don’t make it an interrogation, as the business owner may become defensive and overly guarded about their responses.
• What year was the business started?
• Has it been for sale or purchased before?
• What are the greatest strengths and most significant challenges of the business?
• Why are you selling the business?
• Are you in discussions with other potential buyers?
• Can I review the company’s tax returns from the past three years?
• What are the revenues and net profits from the past three years?
• Does the business have debts, liabilities, or accounts past due?
• How was the asking price for the business calculated?
• Which assets are included in the price?
• Is the price of the sale negotiable?
• Is the business involved in any ongoing lawsuits?
• What are the company’s current contracts?
• What zoning or industry regulations affect the business?
• Who are your biggest competitors?
• How does your business distinguish itself?
• What is the target market for the business?
• Is that market growing, stable, or shrinking?
• Does the company own any intellectual property, proprietary processes, or exclusive products?
• Does the company own or lease its location/s?
• What are the terms of the mortgage or lease?
• Does the business own or lease its equipment?
• What types of insurance policies are in place?
• Who are the key employees?
Buying a business is a process that requires due diligence. Due diligence is a process of discovery where you look at all aspects of the company before buying. Asking thoughtful questions is one of the most potent tools in due diligence. Learn more about due diligence by clicking here.
Entrepreneurship: The Art, Science of and Process For Success Volume 4 is a collection of some of the most innovative minds. It is a best seller in the work-life balance category. The book shares secrets to financial freedom, unprecedented personal success, and unlimited human potential. This book will uplift, empower, and motivate you to take action to fulfill your dreams.
Most people die long before they are buried. The majority of the world is stuck in a rut of life. They go to a job that isn’t fulfilling and associate with toxic people. They struggle with getting ahead and don’t know what to do next. This book offers principles you can use right away, but there is no magic formula for success. While this book is a best-seller and gives insights, strategies, and principles to achieve your true potential, it can only work if you commit to adopting the principles. The Art and Science of Success can help you take your life to another level. It may not happen overnight, but through continuous learning, you will get the change you need.
Entrepreneurship: The Art, Science of and Process For Success Volume 4 is a collaboration of 26 authors. The writers come from worldwide to share their wisdom and life experiences. Consider this book a success contract, and you are invited to invest in yourself and get a copy of The Art and Science of Success today. You may also be interested in Seven Pillars to Profit, a great companion book.
It is possible to buy a business no money down. This article will discuss how you can own a company will little or no cash, but you must be willing to work hard and learn. Here are the things you need to buy a company if you are low on financial resources:
1) Become knowledgeable in the business you want to buy.
2) Develop a systematic approach to establishing relationships with business owners.
3) Understand fundamental business valuation principles
Most businesses aren’t sold as an all-cash transaction. The buyer typically pays a 10% to 30% down payment when buying a company. Lenders fund the balance of the purchase. Money gets loaned to people they believe are highly likely to repay it. Lenders can be family, friends, banks, business owners, etc. Gaining expertise in the business you want to buy will increase the comfort level of lenders.
Make it your job to become an expert in the business you want to buy. Do this by researching and talking to people in the industry. Talk to business owners, suppliers, end-users, and anyone with industry knowledge. Attend trade association meetings and meet as many industry insiders as you can. Let them know that you are looking to buy a business and would appreciate any input they have. They may even direct you to business owners interested in selling soon.
Create a routine with regular networking events where you meet business owners face to face. Be transparent and let everyone know you are researching the industry and intending to buy a business. Do this well, and you may get all the deal flow you need from this one activity. Compliment in-person networking with an online strategy where you meet business owners online using LinkedIn, Social Media, Forums, and any place business owners are online. Communicate by phone, email, text, or wherever they are, and keep a diary to keep track of all your contacts. Consider Contact Relationship Management (CRM) Software to manage your contacts. Some CRM systems are free if you stay under certain thresholds.
Understanding business valuations is not complex if you learn this single valuation method called the “comparable sales method.” As the name suggests, it compares similar-sized companies in the same business. It analyzes it’s asking price, which is publically available and free on business-for-sale websites like bizbuysell.com, bizquest.com, bizbrokernet.net, and other websites. Compare 3-5 companies with similar gross sales and net profit. Find comparable sales data in the same geographic area or as close as possible. All the information I have mentioned is publicly available and accessible, but knowing what they sell for isn’t. However, there is a workaround to estimate the sales price. Studies have shown that over 80% of businesses sell for 70% to 85% of the asking price. If the average asking price of five laundromats of similar size was $200K, I set a value of $140K to $170K.
Visit at least some of the businesses you used for comparable sales data. Do some due diligence to see how companies with identical gross revenue and net profit can differ. One company may have new equipment, and the other may have equipment that needs repair. One business may be in a great part of town while the other is in the wrong part of town. This work is required to become knowledgeable and expert to buy a company with little or no money, but the reward can be life-changing.
Expect a down payment of 10% to 30%, which was previously mentioned but is worth re-stating. Now that we know the company’s value using the comparable sales method, we can calculate a reasonable down payment. The other benefit of contributing your labor or expertise is getting experience in the business you will own one day. This direct experience will show the business owners and lenders that you know the company and are qualified to run and service the debt. You can start today by establishing relationships with business owners in person and online. Be creative and look for a win-win deal that protects all parties.
Buy a business with no money down without risking your own money. Buying a thriving company without cash can be done if you do the work outlined in this article. Getting business knowledge, building relationships with business owners, and understanding fundamental business valuation are crucial but not the most important. This strategy will not work without honesty, integrity, and discipline. The other skill you must have is patience, which can take several months or longer. Because of size and complexity, some deals can take much longer to get done but give a lifetime reward. Join our community by clicking the button below and learn more about buying a business on my blog.
Business due diligence is the examination of a company that you are considering buying. This post is going to discuss micro-business due diligence. 
75.3% of businesses are micro-businesses, according to the U.S. Small Business Administration. A micro-enterprise is a company with nine employees or less with less than 1.5 million dollars in gross sales. These businesses tend to have incomplete financial records, which require special skills to analyze and conduct due diligence. Micro-business owners may only have tax returns with no other “reliable” financial reporting. And the tax returns may not be accurate, so you must use different methods to get a reasonable idea of the business’s financial performance. Many would say walk away, but that excludes too many companies that can provide substantial income and be made more profitable. Buying an existing company is usually a more cost-effective and safer way to acquire and grow a business.
We generally want to see a minimum of 3 years of financial reporting for the various financial statements below. We also want to see the last 24 months by month.
Three years of tax returns
Profit & Loss
Bank Statements
Bank Reconciliation
Account Receivable
Accounts Payable
Statement of Cashflows
Customer List by Sales
Expense by Vendor
Payroll Reports
Journal Entry Adjustments
All Agreements with Customers, Vendors, Employees, Etc.
Timesheets for Employees
Company Debt
Owners of the company
Most micro-businesses will not have many of these documents, but that’s ok and the purpose of these posts. The most important thing is to build a relationship with the owner of mutual respect and trust to the extent possible. We must be very observant of what is said, what we see, and whether it all adds and makes sense. Do you get inconsistent answers? Do things conflict with other representations that make one statement “untrue”? We are buying the person who is reflected in the business. Part of due diligence in a micro-business is trust in the owner. A dubious owner is a red flag and should be a sign to walk away.
The above-mentioned is the minimum you need to perform due diligence. If the owner uses Quickbooks or some accounting program, you should have most of the data in the files. Alternatively, you may need to rely on getting reports from the point of sale (POS) or other sources. Be creative and know that the more challenging it is to get the information, the less competition you will have because most have already walked away.
Tax Returns
Cash Register Tape (Digital or Paper)
Bank Statements
Accounts Payable
Accounts Receivable
Payroll Reports
Company Debt
All Agreements with Customers, Vendors, Employees, Etc.
Timesheets for Employees
Customer List by Sales
When you have a business that looks good enough to get a Letter Of Intent, you have not committed to anything, but you will be considered a serious buyer. Start with this list of twelve questions for the seller. It allows you to ask the 12 questions below to get insightful responses. You can ask these questions at any time, but they should be asked before the conclusion of due diligence. You are not just listening to what is said but how it’s said. Are questions being answered with clarity and factually, or are the answers vague and non-conclusive? You may also repeat the same question phrased differently to confirm that you have drawn the right conclusions. Buying a business is intense, and there is a ton of information, and it can be a challenge to keep track of it all. Take notes!
Commonly stated reasons for selling include a well-earned retirement, failing health, etc. How do you know they’re telling the truth? Well, you don’t, but most people don’t decide this overnight – if the business has a solid history and a profitable future, the owner should be able to provide you with a timeline for their preparation for sale.
Naturally, suppose you move ahead with the purchase. In that case, you’ll be performing your independent valuation process, but if you can, it’s worth understanding more about the calculations used to reach the asking price. The usual valuation methods use asset-based or income capitalization methods, but multiplier valuation methods can be a more accurate gauge of small business value.
You could gain essential insights into the business’s potential by quizzing your seller on these points. See if the seller will give you some specific strategies for growing the business. If they share their ideas with you, ask why they haven’t executed the plans themselves. You may want to reconsider your position if the seller has tried many different things without success.
It’s natural to assume that your seller is just after the best price. But you may be wrong, and the seller could have several outcomes in mind. These may include wanting to see the business develop and grow or continuing to provide a stable workplace for employees. If this is part of the equation, your seller may be willing to be flexible over payment terms, which could help you to transition the company more effectively.
No buyer wants to acquire a business only to find the former owner is preparing to launch a new one, poaching all their previous customers. In this case, you may as well have started your business from scratch. Ask if the seller is willing to sign a clause to agree they won’t set up a competing company within a fixed period or a specific location.
These factors could be critical to the business’s continued success, so it’s worth understanding how dependent the company is on certain customers, supplier relationships, or staff expertise. You can’t count on their contribution unless customers and suppliers are tied into a contract. And if the business’s expertise rests with one or two key employees (possibly including the current owner), you could be on a sticky wicket.
The transition period can be quite a significant point. If you’re nervous about running the business successfully in your early days as boss – or are maybe new to the industry and need some in-job training – it could be worth your while to offer the current owner an incentive for staying on to help transition the business.
If you’re concerned about your time commitment to the business, this is an important question. If you plan to run it as a part-time venture – possibly alongside another company – it’s worth finding out how many hours the current owner logs each week. The answer will usually be understated, so find other ways to confirm the facts. Ask if they take holidays, too!
Most business owners will be prepared to talk about the challenges they face in the current market – and if they’re not, think twice before proceeding. No business is immune from competition or economic conditions, so don’t be afraid to ask questions about your seller’s strategies to stay ahead.
Assuming you want to take a salary at some point, it’s worth asking just how much the current owner is managing. It may give you pause for thought! Some business owners don’t pay themselves much, so their bottom line looks better than it is.
This question allows you to get insight into the sophistication of the seller concerning sales. Do they track detailed metrics on spreadsheets and computers, or is it all in their head?
Some owners will have financial records showing their least customers, but many won’t. This usually leads to excellent follow-up questions or a better look at the metrics the business is tracking.
Due diligence is taking a deep look under the hood and gathering information to ensure the business is the deal that was originally presented. Most deals don’t look as good when you take a close look, so this becomes an opportunity to modify your offer and negotiate based on your findings. In the rare case the deal is better than you thought, it is wise to close it as soon as possible before it gets away. If the company isn’t what you thought it was, negotiate based on new findings or walk away.
Take business due diligence seriously. Make a mistake here, and you may suffer serious financial loss. Many micro-businesses can be like jobs that don’t pay well with long hours. You are looking for what is beyond tax returns and financial statements. The owner usually self-reports tax returns and financial information, so we must verify the information with other sources. Get a professional to help you with due diligence if you have doubts about doing it correctly. Even seasoned entrepreneurs can use an extra set of eyes when doing due diligence. If you want a shortcut to due diligence, read the “do due diligence” bathroom shortcut approach.
How to value a business for sale is important for those buying a business. It is also helpful for business owners to know what their business is worth. It can be difficult to determine how much a business is worth. Whether it’s a startup or an established company, there are different factors you need to consider when valuing a business for sale. In this post, we’ll take you through the considerations of valuation and share tips to make the process easier. With this information, you’ll be able to make informed decisions about the value of any company.
To value a business for sale, you first need to understand its overall value. The total worth of a business can be calculated by adding up all of the assets and liabilities of the organization. This includes everything from cash, assets, and goodwill. Once you have the total worth of the business figured out, it’s time to apply valuation techniques. One common valuation method is “multiples of income,” which uses the company’s income multiplied by an industry-specific multiplier. The multiplier is calculated using recent industry sales data. BRG Business Reference Guide is a source for Rules of Thumb Business Data. The multiplier for most “small” businesses will be between 2 to 5 times earnings. That is a wide range, so I will share some tips below on applying the multiple for a given business.
1. Use comparable sales prices of businesses in the same industry and similar gross sales and profitability. Some databases can be purchased to obtain this information. However, you can also get this information by going to business-for-sale websites and analyzing their asking price. The asking price is not the same as the sales price. Most businesses sell for 10% to30% below the asking price, so factor this into your calculation.
2. Not all earnings are the same. A company that has consistent earnings over multiple years is more valuable than a company with erratic earnings with wide swings. Sales should also be consistent and ideally growing year over year.
3. If the company is too reliant on one large customer making up more than 30% of the business, it has a customer concentration issue. Companies with a customer concentration issue are less valuable because the business is at great risk should the customer go elsewhere for goods and services.
4. Will the company be able to prosper with new ownership? If the company can’t grow or thrive without the owner’s presence, the company is less valuable and may be worth little with new ownership.
5. Systems and processes should be in place so the new owner can continue operations with little disruption. The business will be less valuable and receive a lower multiple if systems are not in place.
6. The business will be worth less if key employees are unwilling to work for new management. Even a high risk of employee departure is devaluing a business.
7. Aging equipment that will require replacement and a major overhaul will take away company value. Specialized “one-off” equipment that is difficult to repair or replace can also damage company value.
9. Industry is shrinking, or technology is outdated will hurt value. This is a normal occurrence and may not have a huge impact on value if the market is large enough to sustain for many years.
10. A company with patents and registered trademarks will command a higher valuation. Intellectual property and a strong brand will enhance the value of a company.
11. A large, engaged social media following will add value to a company. Active social media accounts can enhance a company’s future sales and keep the brand relevant.
How to Value a Business Beyond The Numbers
To properly value a business, it is important to understand the company’s financials and earnings, but it’s also important to know the history. You should know about the company’s past, current, and potential future state. Understand what motivated the founders and their beliefs when the company was started. Once you understand the company’s past, present, and potential future, it is time to consider that in conjunction with its financial condition. A company with quality earnings and consistency will have a higher multiple than a company with lesser and erratic earnings. Use your judgment to make an informed decision about the business’s value based on comparable sales, financials, rules of thumb, and tips shared in this post. Learn other valuation methods here.
Business entrepreneurship is a term thrown around a lot, but what does it mean? Business entrepreneurship is the process of designing, launching, and running a new or existing business. This could be establishing a new company or turning an existing business around. Business entrepreneurship has many different aspects, and it can be a very rewarding experience. This blog post will discuss some basics of business entrepreneurship to get started!
Entrepreneurship involves risk-taking and constantly learning new skills. You must be willing to take on new challenges and be comfortable with changes to your marketplace as the industry goes through normal evolution.
Business entrepreneurship also requires a high emotional IQ. You must work with and engage with employees, customers, vendors, and other professionals. Your communication skills must be excellent to give direction and get things done per your instructions. An entrepreneur needs the following skills:
1. Understand how to read financial statements
2. Be able to create budgets
3. Ability to manage people
4. Continuous Learner
5. Leader
6. Marketing & Sales Skills
7. Analytical Skills
9. Proficient Writer
10. Good Writer
11. Good Soft Skills
You don’t have to be great at everything to be an entrepreneur, and nobody is; however, you must have strengths that overcome areas you may be lacking. There are quizzes you can take that tell you your suitability to be an entrepreneur. Also, continuous learning can strengthen areas where you are weak. You can also hire and form partnerships to add skills you are not good at. Business entrepreneurship is a great way to achieve your dreams and express yourself professionally while making a good living. Research the industry you plan to work in and look for mentors and experienced people in the field. Network with people doing what you want to do and learn from them. goals. If you are willing to put in the time and effort, you can be a successful entrepreneur.
The top 10 female entrepreneurs discussed in this post cover various industries, from entertainment to technology.
There are many successful female entrepreneurs, but we will limit our discussion to the top 10 female entrepreneurs. These women have significantly impacted their respective industries and continue inspiring other women to pursue their dreams. They come from all different backgrounds, but they all share one thing in common: they are strong and determined women who have achieved great things. We hope that you enjoy reading about these inspiring women!
Net Worth: $3 Billion
Oprah Winfrey is one of the world’s most successful and well-known business owners. She is a media mogul, talk show host, actress, and philanthropist. Oprah has been incredibly successful in her career and has used her platform to empower other women.
Net Worth: $1 Billion
Sheryl Sandberg is among the most successful women in technology. She is the Chief Operating Officer of Facebook. She advocates for women in the tech industry and has written a best-selling book called “Lean In Women, Work, and the Will to Lead.”
Net Worth: $700 Million
Folorunsho Alakija is a Nigerian businesswoman who is one of the richest women in Africa. She is the founder of Fashion Fair Cosmetics, a successful cosmetics company.
Net Worth: $700 Million
Tory Burch is a fashion designer and entrepreneur. She is the founder and CEO of Tory Burch LLC, a successful fashion brand. Tory is also a philanthropist and has created a foundation to support women entrepreneurs.
Net Worth: $600 Million
Martha Stewart is a businesswoman, television personality, and author. She started a successful media and merchandise company Martha Stewart Living Omnimedia. Martha is also an expert in home décor and has written several books on the subject.
Net Worth: $500 Million
Beyonce is a world-renowned singer, songwriter, and actress. She has accomplished very well in her career and is one of the most powerful women in the entertainment business. Beyonce is also a powerful businesswoman and has her fashion and beauty brands.
Net Worth: $430 Million
Indra Nooyi is the former CEO of PepsiCo, one of the world’s largest food and beverage companies. She is an accomplished businesswoman named one of the most powerful women in business by Forbes magazine. Indra is also a philanthropist and has created a foundation to support women’s empowerment.
Net Worth: $410 Million
Susan Wojcicki is the CEO of YouTube and is one of the most powerful women in tech. She strongly supports women in the tech industry and has talked about how Silicon Valley needs more diversity. Susan is also a philanthropist and has donated millions of dollars to support education.
Net Worth: $400 Million
Debbie Fields is the founder of Mrs. Fields Cookies, one of the most popular cookie brands in the world. She is a successful entrepreneur who built a large empire from her simple cookie recipe. Debbie is also a philanthropist and has given back to her community in many ways.
Net Worth: $50 Million
Arianna Huffington started “The Huffington Post”, one of the most popular news websites in the world. She is also a successful author and has written several books on success and happiness. Arianna is a powerful voice in the media and is an inspiration to many.
As of this writing, 74 female CEOs are running Fortune 500 Companies. Women are climbing the ranks and are expected to increasingly join the ranks of entrepreneurs. These are just a few outstanding female entrepreneurs who have significantly impacted the world for the better. We hope their stories have informed you or inspired you. We can all celebrate progress and show how everyone can pursue their dreams and aspirations. Thank you for reading!
This blog post is about mastering Buy-Sell Business strategies. It will cover the essential techniques for buying or selling a business. To excel in the buy sell biz arena, it’s necessary to stay ahead of the curve by understanding market dynamics. From analyzing trends to anticipating consumer behavior, we’ll delve into the strategies that give entrepreneurs an understanding of how to buy or sell a company.
Before embarking on any buy-sell business endeavor, it’s crucial to understand the dynamics of the businesses that you want to buy or sell. Discover how to analyze a company’s value, which is essential for all parties to make successful transactions. Look for deal structures and future planning that maximize value for both buyer and seller.
Bizbuysell is a website that allows users to buy and sell companies. It helps business owners and entrepreneurs connect with potential buyers and sellers to buy or sell their businesses. It is the most popular business-for-sale website in the world. More than 3 million buyers use it every month. It has helped hundreds of thousands of people find businesses to buy. This post will focus on the best way to use Bizbuysell to buy a business. You should narrow your focus to the type of business you want and the characteristics of the company you want to buy. An example of a business type would be landscaping, and a characteristic might be having at least ten employees. Time must be spent refining your search so you don’t look at businesses in which you have little or no genuine interest.
After refining your search, set up a free account on bizbuysell. The next thing to do is research the industry you want to be a part of. Use industry-specific information at www.bizbuysell.com/learning-center/industries to quickly get up to speed on your chosen field. These industry-specific tips will tell you what to look for when buying a business. Don’t limit yourself to this resource, but it’s a good start.
Now that you have refined your search and researched the field of interest, it’s time to see what companies fit your criteria. Bizbuysell has powerful search features that allow you to search by location and industry, allowing fast, easy searches. It also allows searches for franchises as well. You can also do advanced searches by adding listing type and price range criteria. If you want more refinement, you can use filters to add keywords, gross revenue, cash flow, year established, and more. Knowing this platform well will increase your chance of success. The platform allows you to save searches and have the results emailed to you. Turn on alerts so businesses that meet your search criteria are sent to your email automatically. It’s a time-saving feature that you should use as much as possible.
Engage as many business brokers and business owners as possible on the platform. It will allow you to investigate more opportunities and improve along the way. You must sign a non-disclosure document, which is customary in this process. It’s usually a
quick process that can be done with an e-signature. Always be upfront with everyone you deal with because your credibility is the most crucial thing if you want to be taken seriously by brokers and business owners. Meet face-to-face with as many companies as you can. This will provide you with the most opportunities, and you will get highly skilled at what to look for in a business. Buying a business requires extensive research on the industry, market, and trends. Network with business owners and people in the industry if you want to own a business. Meet with the suppliers you will likely work with when you become an owner. They will gain insight from being in many different companies in the industry. They also may be able to introduce you to people in the industry who want to sell their company.
Once you have found some companies that interest you, it’s time to take action! There is a process of due diligence where you collect documents and records to confirm the condition of the business. Due diligence also includes site visits, inspections, and more.
1. Do your due diligence before you buy a business
2. Understand the industry in which the company you are buying
3. Get a business valuation to make the best offer without overpaying
4. Research the asking prices of similar businesses and use this to support your offer price.
5. Meet key employees and learn their roles
6. Determine if critical employees will stay with the company after the sale
7. Research the industry in which the company operates
8. Inspect all equipment and assets of the company
The most important thing to know about buying a company has nothing to do with business. Trust and mutual respect are the critical components of getting a deal done. The buyer and seller are in somewhat of an adversarial relationship. Both parties want the best terms and price. While this is true, it’s also possible for the best terms and price to be the best thing for both parties. I recently worked with a buyer and seller where the buyer wanted to pay $750K, and the seller wanted a price of $900K.
Both sides were adamant and had little interest in moving off their positions. After multiple conversations with the owner, it turned out that the seller wanted the $150K to reward his employees for loyalty over the years. The final agreement was for the buyer and seller to contribute $75,000 to an employee retention plan. Both parties got most of what they wanted while making the company more attractive for retaining its employees. Keeping trained employees with many years of service is also good for business. Using buy sell biz to buy a company can be a great way to buy a business. You can purchase a quality company at the right price using the right tools and guidelines.
Bizbuysell is not the only business-for-sale website, but it is the biggest. You should use as many places as you can find the time to visit. Use all free automation tools to set up email alerts using your criteria. Be very systematic and understand the industry you want to enter. Know the market pricing by looking at comparable sales in the area for similar businesses. Learn how to perform due diligence to avoid making a bad deal. Get more tips on buying a business here.
You can do due diligence by inspecting a business’s common areas, like the bathroom and employee break areas. Observing common areas may have little to do with
the operation of a company but can be revealing. It can offer insight into company leadership and how employees are valued. The premise is that a clean and well-appointed common area suggests a company is better run than companies with lesser appointed and maintained common areas. You can have excellent common areas and a lousy company or poorly maintained ones with an excellent business. This approach is meant to be used with other corroborating information and questions.
Break rooms, bathrooms, and other common areas that are lacking may also be an indication of potential. Operations may be run quite well, but the attention to common areas may need attention. Generally, poor common areas suggest weaknesses in other areas. A company’s weakness may be potential areas to improve and make the business better and more profitable. Traditional supporting information like profit and loss statements, balance sheets, tax returns, and supporting documents must be reviewed before concluding. This is a simple way to look at a business and gain insight into the condition of the enterprise. It’s surprising how much information can be gathered through simple observation. This isn’t a substitute for due diligence but another input in your overall review of a target company.
I am not suggesting that you reject businesses because of a messy breakroom or bathroom, but it is an indicator. Also, look at the parking lot and conference room to get a feel of where the priorities of the company are. Take note of where the executives of the company park. Is it an assigned space with their title painted on the pavement, or is it on a first come basis. This gives some insight into the management style and company hierarchy.
Consider this “subjective” approach like a polygraph; not admissible in court but an excellent tool to guide your investigation. Well-appointed break areas, bathrooms, and common areas show the non-financial qualities of a company. It shows a company that values company morale, employee appreciation, a happier workplace, and employee retention. A good company is more than quarterly profits. A good company treats employees, customers, and suppliers like partners for sustained economic performance. Consider subscribing to my newsletter and joining a community of entrepreneurs helping each other reach business goals.
This post will discuss performing business due diligence on a micro-business and its challenges. 75 % of businesses are micro-businesses, according to the U.S. Small Business Administration. A micro-enterprise is a company with nine employees or less with less than 1.5 million dollars in gross sales. These businesses tend to have incomplete financial records, which require special skills to analyze and conduct due diligence.
Micro-business owners may only have tax returns with no other “reliable” financial reporting. And the tax returns may not be accurate, so you must use other methods to get a reasonable idea of the business’s financial performance. Many would say walk away, but that excludes too many companies that can provide substantial income and be made more profitable. Buying an existing business is usually a more cost-effective and safer way to acquire a business. Gaining the skills to buy a business will become more valuable as baby boomers retire in large numbers and are forced to sell due to their age and desire to retire.
We generally want to see a minimum of 3 years of financial reporting for the various financial statements below. We also want to see the last 24 financials by month.
Most micro-businesses will not have many of these documents, but that’s ok because this post will discuss how to perform business due diligence with less-than-perfect records. The most important part of due diligence is building a relationship with the owner based on mutual respect and trust. Be very observant of what you see and what is said. Does it all add up and make sense? Do you get inconsistent answers? Does anything conflict with representations that were previously made? You are buying the person who is a reflection of the company you acquire. Part of due diligence in a micro-business is being able to trust the owner. An untrustworthy owner is a red flag and should be a sign to walk away.
This is the minimum you need to perform due diligence. If the owner uses Quickbooks or some accounting program, you should have most of the data in the files. You may rely on reports from the point of sale (POS) or other sources. Be creative and know that the more challenging it is to get the information, the less competition you will have because most have already walked away.
Tax Returns
Cash Register Tape (Digital or Paper)
Bank Statements
Accounts Payable
Accounts Receivable
Payroll Reports
Company Debt
All Agreements with Customers, Vendors, Employees, Etc.
Timesheets for Employees
Customer List by Sales
When you have a target business that warrants a closer look, it is time to move forward with a Letter Of Intent (LOI). A LOI is not an agreement to buy but an acknowledgment that the significant terms of a possible deal are mutually agreed upon. This justifies the investment of time to begin the hard work and commitment of both parties to begin the due diligence process. Use the 12 questions below to gain insight into the company. You can ask these questions at any time, but they should be asked before the conclusion of due diligence. You are not just listening to what is said but how it’s said. Are questions being answered with clarity and factually, or are the answers vague and non-conclusive? You may also repeat the same question phrased differently to confirm that you have drawn the right conclusions. Buying a business is intense, and there is enormous information to analyze.
Commonly stated reasons for selling include a well-earned retirement, relocation, partner dispute, failing health, etc. How do you know they’re telling the truth? Well, you don’t, but an examination of the business will give some an indication or confirmation of their reasons for selling.
Naturally, suppose you move ahead with the purchase. In that case, you’ll be performing your independent valuation process, but it’s worth understanding more about the calculations used by the seller as they might be helpful in negotiations. The seller may be using incorrect methods or assumptions that you may be able to show and argue for a more accurate price.
See if the seller will give you some specific strategies for growing the business. If they share their ideas with you, ask why they haven’t executed the plans themselves. You can gain insights into the business’s potential by quizzing your seller on these points.
It’s natural to assume that your seller is just after the best price. But you may be wrong, and the seller could have other outcomes in mind that aren’t financial. These may include wanting to see the business develop and grow or continuing to provide a stable workplace for employees. If this is part of the equation, your seller may be willing to be flexible over terms, which could help acquire the company easier.
No buyer wants to acquire a business only to find the former owner is preparing to launch a new one, poaching all their previous customers. In this case, you may as well have started your business from scratch. Ask if the seller is willing to sign a clause to agree they won’t set up a competing business within a fixed period or a specific location. This is a deal breaker if the seller refuses to sign a non-compete agreement.
These factors could be key to the business’s continued success, so it’s worth understanding how dependent the business is on certain customers, supplier relationships, or staff expertise. You can’t count on their contribution unless customers and suppliers are tied into a contract. And if the business’s expertise rests with one or two key employees (possibly including the current owner), you could be at risk.
This could be quite a significant point. If you have concerns about running the business successfully as the owner’s early days, you may benefit from a longer transition period. It may be worth offering the current owner an incentive for staying on to help transition the business.
If you’re concerned about your time commitment to the business, this is an important question. If you plan to run it as a part-time venture – possibly alongside another business – it’s worth finding out how many hours the current owner logs each week. The answer will usually be understated, so find other ways to confirm the facts.
Most business owners will be prepared to talk about the challenges they face in the current market – and if they’re not, think twice before proceeding. No business is immune from competition or economic conditions, so don’t be afraid to ask questions about your seller’s strategies to stay ahead.
What the business earns for the owner is the most critical piece of information. Almost all calculations will be based on company earnings. Tax returns tell part of the story but not the whole story. You must also know what addbacks were used. Add backs are any non-financial item that reduces taxable income. It may also include discretionary expenses that are unnecessary to operate the business and is an owner’s benefit. It may be a luxury car or travel that is categorized as a business but was at the owner’s discretion and had little o no impact on the business.
This question allows you to get insight into the sophistication of the seller concerning sales. Do they track detailed metrics on spreadsheets and computers, or is it all in their head?
Some owners will have financial records showing their least profitable customers, but many won’t. This usually leads to excellent follow-up questions or a better look at the customers and the metrics the business is tracking. Don’t worry if the owner has little or no knowledge of these details. Your job is to find the answers and use them to make informed decisions.
Business due diligence is the process of confirming that the business has the potential you originally thought it had from the initial review. After due diligence, some deals have more or less potential than initially thought. Change the offer or terms to match the findings from due diligence. Negotiation isn’t over until the purchase and sale agreement is signed and the due diligence period has concluded. If the company isn’t what you thought it was, negotiate based on new findings or walk away. Schedule a free call with us if you have any questions about the business due diligence process.
Did you ever want to know how to start your own business? If you did, you are in the right place. This comprehensive guide will help you get started, from finding an idea for a business to financing. You’ll find everything you need to know, from starting a small business to making it successful. And if you have ever thought about entrepreneurship a try, this is the perfect guide for you!
A business is any enterprise used to generate income and provide a service to others. This could include selling products or services, providing a place for people to gather, or even renting office space. Countless examples include online services, personal services, intellectual property, and more.
There are a few things you need to do if you want to start your own business. You must clearly understand what you’re hoping to achieve with your business. You then develop an idea of the structure and governance of the business. Familiarize yourself with different entities, including LLCs, S-Corporations, and sole proprietorships. You may also need to get approvals from local and state governments. This research is best done on the secretary of State’s website. Most states are very helpful; some even make themselves available to answer questions. You must create a business plan that includes financial projections and a marketing plan. This will be the road map you follow and the document you share with lenders, partners, and investors.
There are many different types of businesses out there, but here are five categories you may want to consider starting if you want something other than your average job:
These businesses involve setting up a company without any prior product or service experience. The product or service may be delivered innovatively or be a new product to the market. These types of businesses can be very successful if you have a clear vision for what you’re trying to accomplish. You also must be willing to work for long periods before achieving success, more so than traditional businesses.
These companies offer goods or services that somebody else needs and want to be delivered quickly or at a low cost. They can be quite profitable if executed well, but the services have to be at least equal to or better than the current offering.
These businesses produce goods directly rather than selling them through agents or distributors. This type of business can be quite profitable because there are only a limited amount of manufacturers. Manufacturing companies control their production process and can choose to manufacture products that give them a competitive advantage based on their capabilities.
These businesses don’t generate revenue but rather focus on doing good deeds in the community or world. Non-profits can be quite successful and strongly impact the people they serve. Non-profits rely on donations, membership fees, fundraising, governmental assistance, or other support means.
These are individuals who operate their businesses and are often sole proprietorships. Some self-employed individuals will opt for a single-member LLC or other structure to give them legal protection if specific exposures warrant it. They rely mainly on profits generated from their efforts. They may use sub-contractors and outside services to deliver their products and services. This is the simplest way to start; other business forms can be used later as the business grows and needs change.
it’s important to choose the right business before starting your own company. A range of businesses is perfect for different people, depending on their goals and interests. It’s a good idea to take an inventory of your personality profile to see what best fits your skills and passions. You must know what you’re hoping to achieve with your venture. This will allow you profit, passion, and purpose in your business. These will be the things that will sustain you when you’re having your worst days, and they will come. it’s necessary to have this vision to develop a business plan and execute your business goals.
Acquiring an existing business is a very good option and reduces risk. An existing company has employees, suppliers, and vendors so you can make money from day one. The company will also have procedures you can follow instead of creating everything from scratch. The downside is that it can be more expensive than a start-up but not necessarily. In some cases, the cost of installing equipment, hiring employees, training, renovation, etc., can exceed the cost of buying an existing business.
Many non-financial issues need to be considered before starting or buying a business. The psychological demand is considerable, and you will need to maintain focus for long periods. Success may never happen if you don’t develop emotional fortitude. An entrepreneur must be able to face disappointments, adversity, and difficulty with courage while providing leadership to others. Too many outside distractions can lead to serious problems. You need to develop strong connections with people and organizations who can help support your new venture. Starting a business needs much support from others to become a reality.
There are several financing options available for small businesses. Almost all lenders will require a business plan or require information on the application. It’s best to start with the business plan and have it ready, as it will be valuable in all scenarios. The most common options include bank loans, credit cards, and venture capital. To get started, you’ll need to determine what type of business you want to start and what type of financing option is best for your specific needs. The internet has made it easier than ever for businesses owners and entrepreneurs everywhere to get their hands on some serious financial firepower
You’ll need to submit an application and prove your business is properly registered to get a loan from a local bank. You can also look into a small business loan through a financial institution. To apply for a small business loan online, you’ll need to create an account with the financial institution and complete some paperwork. After that, you can search for lenders who offer small business loans in your area.
If you want to start a business, you first need to understand the importance of figuring out your passion, purpose, and skillsets. A business is a way to create financial freedom and achieve success, but it’s also a lifestyle. It’s for individuals who want to create or invests in one or more businesses. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business. They bear most of the risks and enjoy most of the rewards. Choosing the right business can be difficult, but with research, you can start your own successful business. Learn more about buying businesses with little or no money by clicking here.
It’s no secret that selling a business in New York City can be daunting. The city is massive, and making your company sell for the most money will take time and effort, but with the right strategy, you can get tremendous results and sell for your dream price in the Big Apple.
This guide outlines everything you need to know, from preparing your business for sale to developing an effective marketing strategy and advertising. We won’t stop there—we’ll also cover all the resources you need to get a fast deal.
These are the significant steps that must be done to sell a business in NYC:
Before selling a business in New York City or anywhere, you must have a good reason for selling. Selling a business is hard work; if you don’t have a good enough reason, you will likely not do the work necessary for a successful transaction.
The next step is to know what your business is worth. It’s not an exact science, but you should have a range of its likely sales price. You can use “rules of thumb” from Business Brokerage Press or contact a business appraiser.
Preparing your business for sale is a critical step that must be taken seriously. Failure to execute proper preparation will lead to failure. Preparation includes cleaning up and organizing the physical location like when selling a home. An online business may require organizing digital assets and creating standard operating procedures. The company must be able to continue in your absence with trained personnel or operating procedures that a new user can follow. “It’s not what the business is worth to you but the buyer.”
Marketing materials are typically executed using a Confidential Information Memorandum (CIM). The CIM describes the operation and financial condition of the business in detail. Depending on the company’s complexity, this document can be five pages to 50 or more. This document is confidential and only released after receiving a non-disclosure agreement (NDA).
The final stage is due-diligence, where a buyer gets a comprehensive view of your business, usually including site visits. Any equipment will be inspected, financials will be analyzed, and customers may be visited. Meetings with critical employees may also be part of due diligence.
A business broker or intermediary is often used to assist in selling your business. They primarily help you prepare, market, and advertise your business. They are usually paid a commission at the time of sale and often collect upfront fees for initial prep work. Not all companies need a business broker, mainly if the business has less than ten people and has less than one million gross sales. Every situation is different. Do your research and make the best decision for your circumstances. Here are resources to help you when selling a business in New York City:
Ultimate Guide to Sell Your Business ebook
Rules of Thumb Data
Bizbuysell
Bizquest
Selling a business in New York City is challenging because of its large and sophisticated pool of buyers. New York has a higher cost of doing business than most places, making the market unique. It is critical to ensure the CIM and the financials are accurate. Expect to share tax returns for at least three years, balance sheets, and income statements for three years. Contact us for a free consultation if you want information about selling your company.
How much my business is worth is a question many business owners want to know. This article will discuss business valuations. valuation methods and tactics for determining value. Firstly, a business valuation is a process used to determine the value of a company. Every business owner will need a valuation done during the life span of any business, whether it is large or small. Valuation reports are one of the most crucial tools an owner will have at their disposal to assist with important decisions and business planning. Valuation Reports help business owners secure business loans, investors, partnership agreements, retirement planning, divorce settlements, decisions on when and if you should buy or sell a company, and the proper insurance coverage.
There are three types of business valuations: cash flow, free cash flow, and net present value:
Cash flow valuations are the most important type of business valuation because they reflect how much money a company has in the bank and how much it will need to generate to stay profitable.
It looks at how much money a company has left over after subtracting its current liabilities from its current assets. They are often more important than cash flow because they give a more accurate picture of a company’s liquidity.
This is another key type of business valuation that looks at future cash flows if a company sold all its assets (assets minus liabilities) today for an exact amount (less any discounts or commissions). This calculation is usually done using discounted future earnings models.
When you’re looking to do valuations, it’s important to research the company and the specific industry it is in. It is crucial to gather such information as the last three years of tax returns, Profit and Loss Statements, information on the customer base and the size of the company, and its location. Additionally, you may want to use two or all of the valuation methods mentioned above to ensure that you obtain accurate numbers for the report. Also, don’t overstate a company’s value based on projections made by unverifiable sources; make sure to consider recent trends and other documented data that may be important.
Business valuations are important to make informed decisions about a business. Using the right valuation methodology is important to arrive at an accurate estimate of a business’s worth. Many business owners decide to utilize the services of a professional valuation company to ensure the validity and accuracy of such an important report. You can use the rules of thumb to estimate your company’s value quickly. It is never too early or too late to find out the worth of your business because outside your home; it is most likely the largest asset a business owner has.
Knowing how to grow your business is one of an entrepreneur’s most important business skills. A company that isn’t growing risks reduced profitability or going out of business. A company that is growing can reinvest in the business and its people. This creates an environment where businesses and people constantly improve and produce better products and services. This article will discuss three concepts that will show how to grow your business:
Building a successful business starts with thoroughly understanding your customer base and your specific
market. The time you take to learn who your audience is and what they want will pay dividends for years to come. You should understand what their specific needs or problems are and be able to provide a solution for them. Creating value for your customer is a key tip for starting and maintaining a successful business.
This is where understanding your market comes into play. Successful entrepreneurs have a thorough knowledge of their market and effectively apply this knowledge to increase their footprint and profitability. You need to ensure that the product or service you’re selling is something people actually want and need. Understanding your market also includes researching your competitor’s demographics, determining what your company does best, and focusing on that. Studying your customers and the marketplace puts you in the position to offer them something they cannot find anywhere else. This can be done through services that meet or exceed their needs or by providing affordable alternatives.
Businesses come in all shapes and sizes, so there’s no one-size-fits-all approach to growing a business. However, there are some basic things that all companies require to thrive: Building the right team around you is a critical factor in growing. Placing the right people in the right position is crucial but is not limited only to employees. This also includes the people who are advising you or who you have a synergistic relationship with, such as mentors, attorneys, accountants, business consultants & networking with other entrepreneurs in your industry, etc… The saying “it takes a village to raise a child” also stands true for “it takes a village to raise a business.” In addition to creating the right team, it is equally important to have access to the right “tools” to help build your company. For instance, it does not matter what industry you are in you should be making use of online tools like Google Sheets or Facebook Insights; media platforms like LinkedIn, Twitter, Instagram, Facebook, etc.
A key strategy in growing your company has a business plan. Your business should be designed to become more profitable while growing. An effective business plan should have details on your target market, product or service, and financial goals. Set realistic goals, but challenge yourself to improve. Keep track of ideas, projects, and key metrics and always look for ways to increase efficiency, i.e., outsourcing, automation, technology, etc.
To continually grow a company takes planning, discipline, and execution, among other things. Growing usually means increasing sales, raising prices, getting more customers, etc. But, it can also be done by acquiring another company in the same industry. A plumbing company might buy a smaller plumber company for its customers. Growth by acquisition is an excellent way to maintain steady growth. Every business owner has to create strategies that work best for their situation. Be prepared to work harder and longer than you might think. Constantly exposing yourself to tips and strategies for growing your business will maximize your company’s success.
A business plan is a document that tells the story of your business from start to finish. It can help you determine your goals, identify
your competition, and develop marketing and financial strategies. When starting a new business, it can be difficult to determine what steps to take for your startup to reach its full potential. This is especially true if you have no prior experience or knowledge in the business or the specific industry. Fortunately, several resources can help you develop a business plan for your new startup. The following resources can provide the information and guidance needed to create a sound business plan for your new venture.
Small Business Administration (SBA): The SBA offers free resources to assist you in creating a business plan. They offer help in market research, financial calculations, funding, and more. Here is a list of Market Research Links offered by the SBA.
Careful business planning is critical to maximizing the potential of a business. More importantly, a business plan greatly reduces stress levels, which ultimately will cause personal and business ruin. A business plan allows for focus on the execution of the activities that bring the most value to the business. The Small Business Administration (SBA) has reliable sources for small business data trends.
Business plans should be a work-in-progress. Even successful, growing businesses should maintain a current business plan. Many resources are available to assist in developing a business plan; however, the principals must roll up their sleeves and do much of the heavy lifting. Professionals and software providers can help produce the business plan, but the principals must fully own it. If the principals don’t own the plan, it will likely be a document that doesn’t get looked at after the bank financing comes through or the exercise is complete. Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you — or investing in your company — is a smart choice. Contact us if you want a done-for-you solution where we write it for you. Schedule a call using the link below:
Rule of thumb to value a business is a fast and easy way to estimate its worth. Whether your business is in growth mode or has reached maturity, it is crucial to understand its value. Using rules of thumb to value a business can be a starting point for business acquisition, business exit strategy, or estate planning. Any critical decision about a company should begin with knowing its value.
Business Valuation: A detailed process done by a professional appraiser. They analyze your business thoroughly, considering assets, depreciation, and other key factors. It’s a formal, in-depth assessment that can cost thousands of dollars and take significant time.
Rule of Thumb: A quick and easy alternative for estimating a business’s value. It provides a rough approximation without the need for detailed information or analysis. While it’s not as accurate as a professional valuation, it’s a fast, low-cost method for getting an idea of what a business might be worth.
Simply put, a rule of thumb is great for speed and simplicity, but it’s not a replacement for a professional business valuation.
Understanding your business’s value is essential for several reasons:
Selling a Company: When you decide to sell your business, the first step is determining its worth. This valuation will help set a realistic asking price and inform your pricing strategy, making the selling process smoother.
Exit Planning: Every business owner eventually leaves their company, whether through retirement, selling, or passing it on. Knowing your business’s value is crucial for planning your future and the future of the company. It’s never too early to start thinking about what comes next after you step away from the business.
Business Growth: A rule of thumb can help you quickly assess your current value, enabling you to project your company’s future worth based on its growth potential. This knowledge is valuable for setting goals and benchmarks as your business expands.
Getting Investors: Attracting outside investment requires a clear understanding of your company’s worth. Whether you’re looking for venture capital or other forms of investment, having a valuation in hand makes it easier to convince potential investors of your business’s potential.
Business Financing: Securing capital is essential for growing and maintaining your business. Understanding your business’s value allows you to leverage it effectively to obtain the necessary funds for operational needs or personal goals.
Proper Insurance Coverage: To ensure you have adequate insurance, it’s vital to fully understand your business’s potential financial risks. Knowing the value of your business helps you select the right coverage, whether for property, liability, or life insurance, especially in case of catastrophic loss.
Divorce: If you find yourself in the unfortunate situation of a divorce, accurately valuing your business is crucial for dividing assets and liabilities fairly. Proper valuation ensures that your business is accounted for in legal proceedings.
Partnership Agreements: When making decisions among partners, understanding fair market value is necessary. This knowledge helps in negotiations, buyouts, and adding new partners, ensuring that everyone is on the same page.
Succession Planning: If you plan to leave your company, having a succession plan is essential. Without it, your business could face significant risks. A rule of thumb valuation provides a solid foundation for discussions about the future of the company after your departure.
In summary, a rule of thumb for valuing your business is more than just a quick estimate; it’s a valuable tool that aids in decision-making at various stages of business ownership, from selling and planning for the future to attracting investment and ensuring proper coverage.
Valuing a business doesn’t have to be complex. With a few simple guidelines—called rules of thumb—you can quickly estimate what your business (or a business you’re looking to buy) is worth. Let’s dive into these time-tested methods that can give you an instant snapshot of a company’s value.
Imagine a formula that gives you a business’s value by simply multiplying its annual revenue. That’s what revenue multiples offer. Many industries rely on this straightforward method. If you own a restaurant, retail store, or SaaS company, this might be your go-to tool.
Example: For a restaurant generating $500,000 annually, using a 2x revenue multiple, the valuation would be $1 million. Simple, right?
Looking for a more in-depth assessment? Earnings multiples zero in on the business’s profitability, particularly its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This method focuses on actual cash flow, making it perfect for industries where profitability is key—think capital-intensive sectors like manufacturing or logistics.
Example: A manufacturing firm with $300,000 EBITDA could be valued at $1.2 million using a 4x multiple.
If the business owns valuable assets—like equipment or real estate—an asset-based valuation adds up those assets and subtracts liabilities. It’s ideal for industries like construction or real estate where physical assets are the backbone of the business.
Example: If your construction company owns $2 million in assets and has $500,000 in liabilities, its asset-based value would be $1.5 million.
For smaller businesses, SDE is a handy rule of thumb. It includes the owner’s salary, perks, and one-time expenses in the valuation. Small businesses in retail or personal services often use this method to give a full picture of the owner’s financial benefit.
Example: A local bakery that generates $100,000 in profits plus $50,000 in the owner’s salary might use a 3x multiple, resulting in a $450,000 valuation.
Sometimes, the best way to figure out your business’s worth is by seeing what similar businesses sold for. Known as comparable sales, this method is widely used in industries like real estate or retail, where recent market activity gives clear insights into value.
Example: If three nearby restaurants sold for around $200,000 each, yours might fetch a similar price.
Some industries have their own special rules of thumb. Whether it’s a per-subscriber valuation for tech startups or a per-bed valuation for healthcare businesses, knowing your industry’s standard can help refine your estimate.
Example: A healthcare facility might use a $75,000 per bed valuation, helping you quickly calculate its worth based on capacity.
Get a free Letter of Intent to start making offers like a pro. This is where you formally make an offer for your target company. It is non-binding and may be modified multiple times in negotiation to satisfy all parties. Don’t worry about making a mistake because it is non-binding. The LOI is short and sweet and only includes the major negotiation points like price and terms. It is highly recommended that you engage an attorney to create the Purchase and Sale Agreement that will be binding. Find more help buying an existing company here.
Small Business Mergers and AcquisitionsSmall business acquisitions and mergers are one of the fastest, safest, and easiest ways for companies to grow. A well-managed acquisition strategy can help avoid waiting for organic growth and associated risks. It can be less costly than hiring new salespeople, higher advertising costs, equipment costs, and other expenses necessary to grow organically. The acquisition strategy is usually limited to large corporations and big businesses, but it works just as well or better for small businesses. An acquisition strategy allows any company to scale regardless of size or capital available. Every deal is unique and involves more than just capital. Deal-making requires creativity, flexibility, and understanding of the impact on your balance sheet. Profit and Loss and cash flow should also be part of the calculation in making an acquisition.
What is the ROI?
How easy is the new company to integrate into the existing enterprise?
How long would it take to grow to the same size without the acquisition?
Are strategic benefits like gaining skilled workers, customers, vendors, equipment, brand, etc.?
Are you able to create a proper integration plan?
What will be the short-term and long-term impact on financials?
Business acquisitions should be made without disrupting the target companies’ operations and processes, thus reducing the time to maximize profits. Making acquisitions is not hard, but it does take knowledge of due diligence and experience. It is a good idea to seek an intermediary or advisor to assist in the process. There may be other benefits, but the main reasons for acquisitions are access to new customers and revenue streams. Business acquisitions are one of the fastest, safest, and easiest ways for companies to grow. A well-managed acquisition strategy can help avoid waiting for organic growth and associated risks. It can be less costly than hiring new salespeople, higher advertising costs, equipment costs, and other expenses necessary to grow organically.
The acquisition strategy is usually limited to large corporations and big businesses, but it works just as well or better for small businesses. An acquisition strategy allows any company to scale regardless of size or with limited. Every deal is unique and involves more than just capital. Deal-making requires creativity, flexibility, and understanding your balance sheet. Profit and Loss and cash flow should also be part of the calculation when making an acquisition.
Business acquisitions should be made without disrupting the target companies’ operations and processes, thus maximizing profits. Making acquisitions is not hard, but it does take knowledge of due diligence and experience. It is good to seek an intermediary or advisor to assist in the process. There may be other benefits, but the main reasons for acquisitions are access to new customers and revenue streams. Schedule a call with us if you have questions about small business mergers and acquisitions, click to schedule a call.
I research and look up Maryland Business Facts & Trends to see what might impact small businesses the most. Maryland companies are on the rise, and that’s great news for businesses in the state. Maryland is perfect for business owners, with many cultural attractions, exciting job opportunities, and vibrant community life. In Maryland, business is booming. The state has several successful businesses, including some of the country’s biggest and most well-known companies. These businesses are responsible for providing jobs and economic stability for residents. The most successful Maryland businesses include Amazon, Google, IBM, Microsoft, and Walmart.
This success comes from various factors – including its location as a major hub for commerce and engineering innovation, its growing population and economy, and its tight regulatory environment. In addition to these strengths, Maryland is also known for being one of the most affordable states to live in – meaning that many businesses can operate without fear of financial instability.
According to The Baltimore Sun, Maryland’s economy is “the sixth largest in the United States.” This figure includes private and public sectors and is expected to grow by 2.5% annually through 2024. Maryland’s major industries that are growing include health care and technology. The report shows Maryland’s largest and fastest-growing companies and thriving industries. The report also outlines some companies’ biggest threats in 2022 and beyond. The changing demographics will impact how business is done in Maryland and around the globe.
Understanding the state’s main sectors is important to better understanding the economy. The state’s main industries are government, health care, aerospace and defense, and transportation. Regarding GDP, Maryland is second in America, behind New York City. Additionally, Maryland has a strong job market with high wages and opportunities for growth.
Maryland is a state in the Mid-Atlantic region of the United States. According to the most recent census, the population was just over 7 million. The state’s economy is diversified with a variety of businesses and industries. Its major industry is government services, which comprise about 60% of its GDP. Other significant businesses in Maryland include technology companies, manufacturing firms, and healthcare organizations.
It was eye-opening to see the main drivers of the economy and some of the significant threats companies face today. There is an excellent opportunity for economic growth in key industries using some of the latest technology and a highly trained workforce pressing technology to the cutting edge to drive growth. Maryland is a thriving state with many businesses and opportunities. I hope you find this report helpful and make your next business decision more informed and profitable.
Buying an existing business is the safest way to become a business owner. Starting a business isn’t easy and is risky. A better way to become a business owner is discussed in this article. Buying an existing business is the safer way to become a business owner. There are many advantages to buying an existing business; we will list the benefits of buying an existing one here. This will allow you to avoid the top reasons why start-ups fail 90% of the time.
Buying an existing business provides revenue already in place by the previous business owner. The company has a reputation in the marketplace that takes significant time to build and cultivate, and you will have it instantly. It will be easier to get credit from vendors because they are familiar with the company. You can also use equipment, inventory, and other assets to help finance the purchase of the business or working capital.
A business for sale already has brand loyalty and repeat customers. According to the Small Business Administration, 90% of startups fail. Companies fail because they run out of money, have poor market research, ineffective marketing, and many other reasons outside this article’s scope. Buying an existing business gives you customers on day one. While you may have a different vision for the company’s future, you have an excellent place to begin on day one.
One of the most significant advantages of buying an existing business Is that it already has customers. Buying a business does not change the customers, just the ownership. Furthermore, improving the company will increase revenue and enhance customer loyalty.
A startup business will have a steep learning curve. You can learn from mistakes yourself and train new employees to carry out the duties required by the operation. The race to get enough paying customers and operation efficiency before you exhaust your capital. Since startup resources are frequently limited, this is a high-risk way to get into business. An established business employs experienced people who are trained and familiar with providing the company’s goods and services. Buying a company will provide you with a valuable labor force on the first day of ownership.
When you buy a business, it already has vendors and a supply chain. The company will have professional relationships with vendors, suppliers, or resources the business needs to serve its customers. A new supplier may hesitate to work with a new business because it has no record or history of paying its debts.
Another advantage of buying an existing company is the transition period. This is right after the company is transferred to the new owner. The new owner gets to learn hands-on from the recent owner, so the new owner understands the systems and procedures and how to operate the business. The new owner can make any changes that will improve the current methods, but it’s best practice to exercise careful analysis and patience before making changes.
Buying a company operating for a few years will imply predictable revenue. An existing company will transfer the financial history to new ownership, reducing the risk compared to a startup. Purchasing an established business will allow the owner to accurately maintain the current business model with historical data to forecast future performance. The new owner will have an easier time growing a business that is already working but can be improved under new management.
There are many advantages to buying an existing company, but some risks associated with buying an established business should be carefully considered in your decision. There is a higher cost of entry to buy an existing business because it includes the company’s , inventory, furniture, fixtures, and goodwill. The initial cost will be much higher than the initial outlay for a startup, making it critical to know how to value the business. Bank financing can bring out-of-pocket costs down to 10% to 20% of the sales price, with 80% to 90% being financed. Debt service also needs to be considered as an additional cost.
New owners will have to establish a style of leadership that may not be accepted by employees who are used to past leadership. Employees may be loyal to the old ownership and may not have the same enthusiasm they had for the past owner. Other challenges include old equipment that may be nearing the end of its service life.
In most cases, there are substantial advantages to buying an existing company, but every situation is different. 10% of startups are successful, so there are times when it works. Ultimately, the decision should be made on the best possible financial outcome with the least risk. Spending more money might be less risky than spending less upfront with a startup. In addition to the economic implications, the quality of life or passion for the work should be factored into the decision. Click the button below to get specific information you can use now when buying a business.
One of the top questions people ask is how to buy a business safely. You can immediately reduce risk by buying an established business. This post details the steps to buy an established business for little or no money.
Consider your personality and ask yourself if you’re suited to work hard for a long time before reaching your income goals. Take this Entrepreneur Quiz by clicking here
Most businesses for sale websites allow you to use filters to refine your search to companies that meet your requirements and are candidates for further review. Establish the following criteria before you perform a search.
Gross Sales: (range)
Number of Employees: (range)
Management in Place: (Y/N)
Industries: (you can target several)
Product Company: (Y/N)
Services Company: (Y/N)
Retail: (Y/N)
Zip Codes: (zip codes, county, state)
Getting a steady stream of deals is essential in finding the right business to buy. Business for Sale Websites is an excellent place to search for companies to buy. Most business-for-sale websites allow you to add your criteria and set email alerts: Bizbuysell.com, Bizquest.com, and BusinessBroker.net. These are sites that will enable the use of filters. Also, use Linkedin, Accountants, Networking Events, Banks, Score, Letters, and Social Media. Use your creativity to create a steady stream of deals.
Small businesses sell at a multiple of 2.41 to 3.43 times earnings, according to the latest Bizbuysell Insight Report. The median sale price of companies sold in the 3rd quarter of 2020 was $299,500, a 19.8% jump from a year ago. The Bizbuysell Insight Report contains informative data that every serious buyer needs to study.
A professional Business Plan is needed to attract money to buy a business with little or no money. The plan needs to show the financial benefits that an investor will see by contributing their capital. Following are examples of different deal structures that may be used to help construct a deal for your specific situation.
Offer to assume liabilities such as vehicle leases, equipment leases, utilities, taxes, credit card payments, etc. The remaining balance due on the purchase price is paid on a deferred consideration basis. This works about 10% of the time.
Sell unused equipment like vehicles or equipment that aren’t frequently used. Look for machinery or any assets that don’t generate revenue or are underperforming. This works well with landscaping and construction companies but can work for any business with assets. You need to own the assets before selling them, so you may need a bridge loan to facilitate this strategy.
Offer a down payment with the seller financing the balance with a seller note. The owner will only do seller financing if they believe in your ability to successfully run the business in a manner that allows you to service the debt.
Supply free labor for a period to get a 20% credit towards the purchase price for a down payment. You can then go to the bank with a 20% down payment and get a traditional loan. Additionally, you become more bankable by having direct experience in the operation of the business.
Consider bringing in investors to contribute the required money in exchange for a share of the business’s profits. The investment return should be at least a 7% ROI to make it an attractive investment for your capital partner.
A balance sheet describes a company’s assets, liabilities, and shareholders’ equity at a specific time. It is a financial statement that shows what a company owns and owes and gives insight into underperforming assets that can be leveraged for a possible acquisition.
The profit and loss statement is a financial statement that summarizes revenues, costs, and expenses during a fiscal quarter or year. The profit and loss (income statement) should be reconciled with tax returns.
The cash flow statement summarizes the amount of cash entering and leaving a company. The cash flow statement measures the company’s cash to pay its debt obligations and generate profit expenses.
Adjusted cash flow is a company’s net earnings after expenses. It details the earnings before interest, depreciation, and taxes but includes add-backs for seller discretionary items and one-time expenses.
Use the asset value of any equipment and machinery plus consideration for goodwill. Also, consider multiple sales rules of thumb to calculate your offer with a 20% to 40% discount. Combine the average of these two methods to arrive at a fair price. Gross sales should be verified with three years of tax returns. Business owners are not likely to overstate gross sales on tax returns but commonly overstate expenses, which causes the under-reporting income for tax benefits.
An asset sale should be the first choice as the transaction to buy a business. It’s simpler and cheaper to execute as the seller keeps their liabilities without exposing you to anything that pre-dates your ownership.
Asset sales offer the following advantages:
Can offer depreciation & amortization tax benefits
Goodwill can be amortized over 15 years on business tax returns
More financing flexibility by assuming selected liabilities
Limited exposure after-sale reduces due diligence and transaction costs
More flexibility with employee decisions and staffing
A stock sale should be used when there is something of value in the business that you need going forward. An example would be a liquor license or a required permit to operate the business. This may be critical if you can’t get the authority to operate on your own or if it is cost-prohibitive. You may also be unable to get the license on time, disrupting business operations. The other reason to buy stock to own a company is you can do a more complex deal structure. Financing may be easier if you have the company’s credit history to get bigger loans approved. The advantages of a stock sale include the following:
Maintain contracts with customers reducing revenue risk
Keep trade credits and predictable pricing and terms with suppliers.
Employees are less likely to leave as nothing has changed.
Choosing the right entity can have business and tax implications that should be considered before making a decision. Less complex deals should generally be done as an asset sale. Stock sales should only be made when there is a financial benefit of doing, so that is worth the additional time and expense. Due diligence needs to be more thorough because unknown liabilities become yours after closing.
The first step in buying a business for turn-around is to get it for the right price. There should be enough money in the discount so you can correct the wrong things. The most powerful strategy to improve a business is to look at what the top-performing competitors are doing and model their best practices. Underperforming businesses could be turned around if the following practices are followed.
Join organizations that allow you to introduce your company to the community, customers, and your peers. Consider joining the Chamber of Commerce, your trade association, and a BNI group. Commit to a networking event at least once per month.
Find a free SCORE mentor to get help in improving your business. Read at least one business book per quarter. Consider getting the audible version if you’re strapped for time. Google the ten best books for business owners to read now and add them to your reading list.
Budget at least 10% on sales & marketing as a percentage of sales or the sales level you would like to hit. Include search engine optimization (SEO) and social media in your marketing plans. Map out your sales funnel and measure key metrics to determine your costs to acquire a new customer.
I recently found a franchise resale that was opened in 2004 for sale. The asking price was $149,500, with gross sales of over $500,000. A new franchise averages $125,000 with zero sales. Franchise resales can be had a huge bargain, especially with a bit of negotiation. I also saw a landscaping franchise started in 2014 with an asking price of $115,000. Sales were about $410,000 annually. The same franchise new would be about $200,000. You get all the benefits of an established business with a strong brand at a discount.
Many great businesses are available for sale that would make great acquisitions, but this article is about a less obvious place to find a great acquisition. Many businesses being offered for sale are lousy. Lousy companies have little or no stated income, and the owner wants an absurd price for the business. There are usually systemic problems with these businesses, like low sales, poor profitability, lack of systems, and little documentation, to name a few…
You should consider lousy businesses because they are abundant and can be had for a great price. The acquisition requires patience and discipline, but this can be the most profitable transaction you can make with the least risk. You buy below or near asset value or in line with verifiable cash flow to make it a safe investment. You can sell the assets to recoup your investment should you change course. The reality is that most of these businesses will never sell and simply close their doors. These are true bargains if you can buy the assets and build a successful business around them.
The right things wrong are the things that you can fix with your resources and skills. The most common problem with businesses is the lack of marketing and sales. Most businesses do an adequate job of delivering goods and services but fail to have systems to grow the business. When sales are poor, there is little or no money to address anything but day-to-day survival, which eventually leads to a distressed sale.
Look for businesses with the “right things wrong.” You can buy a business with strong marketing and sales and plug in your operational skills if you are a strong operations person. A company with good products or services with lousy marketing and sales needs an executive that can sell. Using this approach, you can get extreme bargains! Make many “aggressive” offers and exercise patience. Walk away from anything that isn’t a great deal. There are so many lousy businesses you will eventually get the business with the right things wrong. Plug in your skills and resources, and you will have a very nice business.
We have regular webinars addressing the different topics related to buying an established business. Our live sessions are worth attending even if you have already gone in the past. New content is always being added as market conditions change. Stay up to date with the latest strategies by clicking here to register for our next webinar.
Buying A Non-Essential Business During COVID-19 can be very profitable if done correctly. You may be asking why anyone would buy a non-essential business in the middle of a pandemic? Because the very best time to buy a business is when near-term prospects are murky, and the company is hated and unloved. Investors can pick up substantial assets at steep discounts compared to their underlying value. Non-essential businesses include but not limited to:
Shoe Stores
Playgrounds
Tattoo and Piercing Shops
Clothing Stores
Fitness Centers
Playgrounds
Tattoo and Piercing Shops
Adult Stores
Book Stores
Non-essential Fabric and
Craft Stores
Non-essential Furniture
Home Furnishings Stores
Bars
Hobby Shops
Music Stores
Smoke and Vape Shops
Plant Nurseries
Pet/Animal Grooming
Nail Salon
Movie Theatre
The list of non-essential businesses can be different depending on the state. The State of Florida designated pro wrestling as an “essential” business. Check your state to determine what is considered a non-essential business. Some non-essential businesses are not a bargain at any price. You must use some criteria to weed out companies that shouldn’t be considered. Here are some suggested criteria for acquisition candidates, but add your own as you see fit:
1) Gross Sales – Gross sales should have recovered at least 80% of pre-pandemic levels.
2) Good Equipment– Equipment is capable of allowing the company to grow 100% without adding major equipment or resources.
3) Products & Services – Changing consumer behavior caused by COVID-19 will have a minimal impact so the business can return to pre-pandemic levels after the pandemic passes.
4) Experience – You possess the experience and skillsets to grow the business at least 100%.
5) Competition – Competition has remained unchanged or improving as weaker companies close their doors.
Buying a business during COVID-19 is riskier than in normal times, which is why the potential returns are so much higher. At the same time, it does have a higher risk, but it’s still less than if you were to start a new company from scratch. Use a business buyer checklist to take a systematic approach that makes it easier to execute the proper steps properly. You will want to create a team of the following professionals to assist you whenever buying a business:
Bank/Lender
Accountant
Business Attorney
Management Team
Business Broker/Intermediary
The best deals always come from motivated sellers. COVID-19 has motivated sellers because they are not willing to risk an unknown future. Their risk profile may be different than yours because of age, retirement plans, lifestyle, burnout, divorce, etc… While the business may come at a discount, the transaction is still win-win because the business owner has decided that they want to exit their company, and your a willing buyer to help them achieve their goal.
Performing Due Diligence During COVID-19 is the same as in normal times, but you can expect revenue to be down. You will need to forecast future revenue and profit based on current information. Forecasting is not an exact science, but you can make a reasonable approximation based on pre-pandemic sales levels and the most recent buyer behaviors and governmental restrictions. You must fully understand where the breakeven point is for the company and your plans to make it profitable in the foreseeable future. Be sure to have sufficient working capital to make necessary changes and fund the business until profitability is reached if it isn’t already profitable. The cost to operate the business should include added expenses due to COVID-19. Research the Centers for Disease Control and Prevention website to learn how to plan, prepare, and respond to COVID-19.
Buying A Non-Essential Business During COVID-19 can be financially rewarding if you take the right steps. Be patient and seek out the advice of professionals in and outside the industry. Many may say it is a bad idea and wait for better times, but it may be too late to get a bargain. Warren Buffet says ” widespread fear is your friend as an investor because it serves up bargain purchases” and ” the best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.”
When buying or selling a small business, conducting due diligence is one of the most critical steps to ensure a smooth and successful transaction. To help you navigate this process, we have prepared a due diligence checklist for buying a business PDF, which you can download for free. This checklist is also useful for sellers preparing their business for sale. By using a due diligence checklist for buying a business PDF, you can systematically review all aspects of the business, from financials to legal matters, ensuring transparency and avoiding potential pitfalls.
Whether you are a buyer verifying a company’s financial and legal status or a seller ensuring everything is in order before closing, this guide will help you understand the key steps. Once a buyer is secured, negotiations are complete, and a purchase agreement is finalized, time becomes a crucial factor. Even if you have six to eight weeks before closing, those weeks will go by quickly, making it essential to stay on track.
A structured due diligence checklist for buying a business PDF helps both buyers and sellers:
Once the purchase agreement is signed, the seller must proactively manage the closing process. Buyers should not assume sellers will handle everything, and vice versa. By using a due diligence checklist, both parties can track their respective responsibilities and avoid last-minute surprises.
A due diligence checklist for buying a business PDF ensures that you cover all critical aspects before closing the transaction. Here’s how to maximize its benefits:
Buying or selling a business is a complex process, and having a structured due diligence checklist for buying a business PDF can make all the difference. It helps both buyers and sellers stay organized, avoid costly mistakes, and ensure a seamless transition.
Since every business transaction is unique, consult with your attorney and financial advisor to customize this checklist to fit your specific needs. Download our free due diligence checklist for buying a business PDF today and take the first step toward a successful business acquisition.
For more expert guidance, visit our full Selling a Business Checklist for additional insights and resources.
You can buy a business with less money than you might think. Some deals are made where you leave the closing with
cash. Every deal is unique and has an infinite amount of possibilities. The biggest hurdles to business owners are funding the deal and fear. Business acquisitions get funded based on the company’s financial strength and not necessarily the buyer’s finances. The business must be able to service any debt required to get the deal done. You will also need working capital to buy a business that can come from multiple sources besides the bank. The main sources in most deals are:
The failure rate for small businesses is high, but much of the risk can be avoided. There are five major reasons that companies fail. Don’t make these mistakes, and you will practically guarantee success. Don’t repeat the mistakes that have led to business failure.
1) Not researching the market
2) Flawed business model
3) Run out of money
4) Bad Marketing
5) Failure to Change
Changing business conditions, political unrest, and financial uncertainty has turned the world upside down and created lifetime opportunities. The biggest fortunes have been made in Great Depressions, National Disasters, World Wars, and events like 911. This crisis will create more fortunes because commerce moves faster now than ever! Download your free Business Buyer Resource Kit to take the first step in owning your successful company. Enter your email address below, and we will send it to you immediately!
We help entrepreneurs get past all the obstacles to owning a business. Join us for our next free buy a business webinar to get the latest strategies to buy a business. Register here.
A distressed business sale is a process of selling a company that is experiencing financial difficulty. Distressed
businesses may have various problems, including declining revenue, excessive debt, operational inefficiencies, etc. Selling a distressed has unique challenges but can be done with the proper strategy in many cases.
A distressed business sale will have a smaller pool of potential buyers so the strategy needs to fewer buyers. Adjustments must be made to price, terms, or other considerations to normalize the risk. The risk-reward should be in alignment with the price and terms. The price should recognize historical, current, and projected earnings.
Have a reasonable expectation about the length of time it will take to sell your business. The Business Brokerage Press reported that the average time to sell a business is seven months, but it may take longer depending on the industry and countless other factors. The final point is to be transparent, honest, and helpful if you want to sell your business. No business is perfect, and the more you share about the company’s benefits and potential problems, the better your transaction will go.
Go from being an adversary to being a partner. The desire for the next owner to succeed and this attitude will naturally come out, and you will get a deal done to sell your business. Contact us at 800-905-1213 for a free preliminary appraisal of your business. We can also answer any specific questions about your industry and your particular situation. You can also click here to schedule a convenient time for a confidential phone call.
How to sell your business by auction is good knowledge to know if your thinking about an exit strategy for your business. Online Auctions can be an effective way to sell a business if you need to get your business sold fast. You can sell any business or franchise using an online auction. Online auctions are user-friendly, open to the public, allows for thorough research of a business before placing a bid. Selling a business by auction is a way for buyers and sellers to arrive at a market price that is fair for both buyer and seller. Online auctions are a valuable resource for buyers and sellers who are seeking to become business owners or exit a business.
How The Auction Process Works
Online auctions are free and open to the public. There is no requirement to place a bid. All potential bidders are given an opportunity to thoroughly research and perform due diligence on a business BEFORE placing a bid. This includes reviewing any available financials, reviewing operational data, doing a site visit, and meeting with the seller which will be scheduled and by permission only. All bidders must sign a Non-Disclosure Agreement (NDA) BEFORE the details of the business are shared. Strict confidentiality is necessary because the employees, customers, and vendors are not aware of the sale. Contact us if you are interested in buying or selling a business by auction.
Click Here for Live Business Auction
Every business needs Marketing. Marketing is not sales, but you do need both for any business to survive and thrive. According to Wikipedia, 
marketing is the strategy that underlies sales techniques. I describe marketing as all of the activities that bring qualified buyers to your sales process. If you had an electronics store, your marketing would get qualified buyers to the store. Then your sales staff would explain the product’s features and benefits and close the sale.
Marketing is a system that supplies a steady stream of qualified buyers or prospects to your sales process. I recommend using a Contact Relationship Management (CRM) if you’re not using one already. This description applies to sole entrepreneurs and large companies. You may be the same person doing multiple functions, or different departments may carry out this function. Parts or all of the functions may be outsourced. While the marketing function can be outsourced, management must have an intimate knowledge of how the marketing program works.
No matter your marketing or how well it performs, its performance can fall off faster than you might think. Markets change, consumers change, and so should your marketing. Don’t make drastic changes without testing, but realize nothing in life is sure except change, and the rate of change will continue to accelerate. Moore’s Law says the number of transistors that can be put into a circuit doubles every two years. These same chips are powering the computers that are changing the business world and marketing.
Improve or create a sales funnel for your company. A sales funnel configured correctly will automate your marketing and help you scale your income automatically. Your sales funnel maps out a customer’s journey when purchasing your goods and services. The model uses the concept of a funnel because a large number of potential customers may come to the top of the funnel, but few end up making a purchase. Having just a few percent purchase your product is typical. The primary stages of a sales funnel are:
Awareness
Interest
Decision
Action
Russell Brunson, the author of Traffic Secrets is an expert at building sales funnels without having to be a techie or hire experts. He is a big advocate of funnel hacking to perfect your sales funnel. Constructing a sales funnel is not difficult if you follow the steps. There is a lot of information on the internet that tells you everything you need to know about constructing or improving an existing sales funnel.
This How To Buy A Business Tool Kit is for anyone who has asked, “how do I buy a business.” Unfortunately, the bureau of labor shows that approximately 20% of new businesses fail during the first two years of being open. 45% fail during the first five years. 65% fail during the first ten years. Only 25% of new businesses make it past 15 years. Businesses fail because the owner doesn’t have a business model with a high likelihood of achieving profitability. Unprofitable business models can be avoided with a business plan. The number of intelligent people who get into business without a plan is incredible. Lack of financing is another reason why so many businesses fail. The issue of funding can also be corrected with proper business planning. A business plan includes financial projections and details of how the company will be funded.
Insufficient marketing and advertising are other reasons why so many companies fail. Every company needs to have a steady stream of new customers coming in to grow and prosper. The best way to guarantee new customers is through paid advertising. It may take some testing and discovery to find the right places to advertise and the right messages, but it’s required if you want a profitable company for years to come.
It may seem too risky to own a business, but there is a way to do it while significantly reducing the risk. Buying an existing company with everything already in place has passed the most dangerous business ownership stage. A company with a history will allow you to know what it earned in the past and have systems installed to operate the business. I see far too many sophisticated people buy businesses and make critical mistakes that can be easily avoided.
It’s not hard to buy a business without money if you have the proper knowledge. You may never achieve the goal of owning your own profitable company if you don’t know the critical steps to buy a business. I have bought and sold businesses for myself and clients for the last 15 years. Every transaction I have been involved in shares the same critical components. Here are the critical components you must have for a profitable transaction:
1) Targeting
2) Funding Sources
3) Getting Offers Accepted
Creating Search Criteria
Many people do themselves a disservice by looking at all deals that might be interesting but have little chance of turning into a successful transactions. Limit your search to businesses where you have the resources and skills to get a deal done. You can buy a business with little or no money, but you must educate yourself on the process and build relationships with business owners.
Focus on businesses that you are qualified and equipped to acquire. There is a business for every level, and your next acquisition may not be as big as you would like, but start from where you are and continue acquiring and growing until you meet your ultimate goal. The criteria should include the following:
Geographic Location
Revenue
Net Profit
Employees
Industry
The best funding source to fund a business is seller financing, if possible. Share your credit score with the seller and an updated resume that shows that you can repay a loan from the seller. The SBA is a good funding source, but it takes a long time and requires a lot of paperwork. Lenders want assets they can use to collateralize the loan. Collateral can be used from the business that you are buying. Personal assets like real estate and other value items may also be used. Consider alternate sources like c-loans that will give you access to hundreds of lenders.
Making an offer is where the rubber hits the entrepreneurial road. There is a process for making an offer that takes time and patience. The offer should come in a letter of intent (LOI). Use the LOI Template provided below. Fill out the form accordingly, and we will send the LOI to the seller on your behalf as an intermediary. The LOI is non-binding and should only contain the major items like the total price and terms. Getting a mutual agreement on the LOI is the first step, but it likely does not cover all the details, and it shouldn’t.
Don’t get caught up on small details that distract from the high dollar items like terms and purchase price. You can add additional items to the LOI as an addendum. Remember that the LOI is not binding, so don’t worry if you miss something. Missed details can be included in the Purchase and Sale Agreement. Your attorney will be responsible for transforming your LOI into a Purchase and Sale Agreement and protecting you legally.
Business Plans are essential to reduce the risk of business failure. Many problems will reveal themselves by testing your ideas against know facts. A business plan can show that some companies should not be purchased at any price. A well-written plan will serve as an internal document to help guide future business decisions. It will also help outside lenders, investors, advisors, and other stakeholders understand the business and its future. A Business Plan is not necessarily a step-by-step or accurate forecast of what’s next in the company but a roadmap to acknowledge that it’s time for a different path or where the company is in its journey.
We offer free resources so you can buy and own a company with less risk. You will get a Letter Of Intent to start making offers, A Business Plan Template so you can plan for success, and a Closing Checklist, so you have a roadmap to get your deals closed. These resources will help you avoid the most common mistakes and help you become a successful business owner. “How to buy a company” is a skill every entrepreneur should know. The Buy A Business Toolkit will help you buy the following types of businesses: Laundromats, Manufacturing, Machine Shops, Retail Businesses, Service Businesses, Plumbing Companies, Electrical Contracting, Distribution, Automotive Repair & Retail, Boating Industry, Beauty & Personal Care, Education & Children, Entertainment & Recreation, Fitness, E-Commerce, Travel, Transportation & Storage, Travel, Communication & Media, Building & Construction Wholesale & Distributors, Gas Station, and Pet Services.
In this article, I’ll describe the impact of taxes when selling a business. Tax bills when buying or selling a business can be massive. Skillful planning and execution 
can significantly minimize the tax consequence. The IRS taxes treat different asset classes at different rates, hurting the buyer or seller. What you pay in taxes will depend partly on how the assets are categorized for the sale of the company. It will be taxed as ordinary income or capital gains. The rate will also depend on the tax rate of the individual.
Minimizing taxes from the sale of a business involves strategic planning and potentially utilizing various techniques and structures. However, it’s important to note that tax laws and regulations can change, and seeking advice from a tax professional or financial advisor is crucial for personalized guidance. Here are some general strategies:
1. Consult with a Tax Professional: Before selling the business, engage with tax advisors or CPAs specializing in business sales. They can guide your situation and help you navigate tax implications.
2. Utilize Qualified Small Business Stock (QSBS): Under specific conditions, selling qualified small business stock may qualify for beneficial tax treatment, potentially allowing for exclusion or reduction of the capital gains from the sale.
3. Consider Timing: The timing of the sale can impact tax liability. Depending on the business structure and your situation, selling the business in a particular tax year might be more advantageous.
4. Structuring the Deal: Structuring the sale as an asset sale or a stock sale can have different tax implications. Asset sales might provide benefits like allocating the purchase price to different assets, potentially reducing the overall tax burden.
5. Utilize Section 1202 Exclusion: This section of the tax code can exclude up to a certain percentage of the gain from selling qualified small business stock, subject to specific requirements.
6. Use a Section 1031 Exchange (Like-Kind Exchange): If you intend to reinvest the proceeds, you might consider a like-kind exchange to defer capital gains taxes. This strategy allows for the deferral of capital gains taxes by reinvesting in a similar asset within a specified time frame.
7. Employ an Installment Sale: By spreading the sale proceeds over multiple years via an installment sale, you may reduce the immediate tax impact and potentially lower the overall tax rate.
8. Maximize Deductions: Before the sale, maximize deductions related to the business to reduce the taxable income and, consequently, the tax liability.
9. Utilize Retirement Accounts: If eligible, consider rolling over some sale proceeds into tax-advantaged retirement accounts to defer immediate tax consequences.
10. Estate Planning Strategies: Considering estate planning can also be beneficial. Gifting shares before the sale or utilizing trusts can reduce the overall tax burden.
It will be assumed that the sale of the business will be an asset sale. In an asset sale, the seller retains possession of the legal entity, and the buyer purchases individual company assets, such as equipment, fixtures, leaseholds, licenses, goodwill, trade secrets, trade names, telephone numbers, and inventory. Asset sales generally do not include cash, and the seller typically retains long-term debt obligations. This is commonly referred to as a cash-free, debt-free transaction. Normalized net working capital is also typically included in a sale. Net working capital often includes accounts receivable, inventory, prepaid, accounts payable, and accrued expenses.
The best allocation for the seller is usually the worst for the buyer, so this may be a point of negotiation. There must be agreement on what is going to be intangible assets like goodwill and tangible assets like equipment. The buyer and seller determine asset allocations for the seven asset classes defined by the IRS tax codes, include:
The IRS allows buyers to “step up” the company’s depreciable basis in its assets by allocating a higher value for assets that depreciate quickly (like equipment, which typically has a 3-7 year life) and by allocating lower values on assets that amortize slowly (like goodwill, which has a 15-year life). This reduces taxes sooner and improves the company’s cash flow during the vital first years. Additionally, buyers prefer asset sales because they more easily avoid inheriting potential liabilities, especially contingent liabilities, such as product liability, contract disputes, product warranty issues, or employee lawsuits.
For sellers, asset sales generate higher taxes because while intangible assets, such as goodwill, are taxed at capital gains rates, other “hard” assets can be subject to higher ordinary income tax rates. Federal capital gains rates are currently 20% at the time of this writing for earnings above $445,851. Ordinary income tax rates depend on the seller’s tax bracket.
Assume a total sale price of $1,000,000. Here’s a potential allocation:
60% of the allocation above would be taxed on ordinary income. 40% would be taxed at the capital gains rate.be at would only subject 10% of the sales price to ordinary income. 90% would be taxed at the lower capital gains rate. The seller should allocate the purchase price to goodwill and intellectual property as much as possible. The buyer would like the equipment allocated at the highest possible to benefit from depreciation tax benefits. The best allocation depends on whether you are buying or selling a business.
Understanding the sale of business tax is different for the buyer and seller. Understanding the tax liabilities is essential before agreeing to a deal’s structure. The applicable tax laws change all the time when selling a business. It’s essential to use knowledgeable professionals familiar with the type of transition that will likely occur with the sale of your business. Click here to schedule a free call with us if you have any questions about tax bills when selling a business. Always consult your tax advisor familiar with your financial situation before making any decisions.
Buy A Business By AuctionYou can buy a business by auction safely. We currently have an advertising start-up being sold by auction. It is important to do your due diligence before bidding. You must sign a Non-Disclosure to get specific details about the business. You can visit the company and meet with the owner by appointment and permission only. Strict confidentially is necessary because the employees, customers, and vendors are not aware of the sale. Complete your due diligence before bidding. Call 800-905-1213 or email us so we can arrange a visit or answer any questions.
Earn Income [Miami Advertising Firm with Easy to Sell Service]
Gross Sales: N/A
Cash Flow: N/A
Inventory: N/A
Rent: N/A
Year Established: 2017
Location: Miami, FL
Business Description:
This business is a local business advertising firm that serves the Miami, FL area. This company began as a franchise but now is independent. There are no royalty fees, but proven systems are in place to grow the business.
IDEAL FOR ANYONE IN LOCAL MARKETING, SEO, LOOKING TO ADD REVENUE TO EXISTING CUSTOMER BASE OR ADD MORE CLIENTS
The current owner has run this business for less than two years and just didn’t have the time to devote to it. The owner only worked one of the three territories on a limited basis but was still able to do about $9,000 per year in sales with about half going to profit. The projected revenue for a full-time operator is $187,000 with $128,000 to the bottom line.
Car dealerships, restaurants, retailers, pizza shops, gas stations and more use this service. Some of the customers served include:
PAST ACCOUNTS THAT STILL NEED THIS SERVICE
Cricket Wireless, Cold Stone Creamery, Valvoline, KFC, ADT, Denny’s, Sprint, Volkswagon, Shell, Infiniti, and many more.
Step 1 Click the link below to digitally sign an NDA.
Step 2 You will be sent detailed information (memorandum) regarding the business.
Step 3 Schedule a meeting to visit the business and meet the owner if it warrants further due diligence.
Step 4 Place a bid for the business.
Step 5 You will be contacted to arrange a 100% refundable earnest deposit of $250 to register your bid. Your earnest deposit will be returned in the event your bid is not accepted.
Step 6 You must be prepared to fund the purchase of the business if you are the winning bidder.
Don’t hesitate to call our office at 800-905-1213 or comment below If you have any questions regarding the auction process, the business, or anything that you need more clarity on.
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Fitness Center for sale by auction in Montgomery County, PA. It is essential to do your due diligence before bidding. You must sign a Non-Disclosure to get specific details about the business. You can visit the company and meet with the owner by appointment and permission only. Strict confidentially is necessary because the employees, customers, and vendors are unaware of the sale. Complete your due diligence before bidding. Call 800-905-1213 or email us so we can arrange a visit or answer any questions.
Gross Sales: $360,000
Cash Flow: $46,448
Inventory: $5,500
Rent: $4,278
Year Established: 2018
Location: Montgomery County, PA
Business Description: This is an excellent opportunity if you are a personal trainer, coach, or nutritionist wanting to own your gym/ fitness center. The absentee owner currently runs this gym but can no longer keep up with the day-to-day demands of this growing business. This gym services the Greater Montgomery, PA, area and is part of a fitness franchise that focuses on personalized training at an affordable price. The franchise has a proven business model offering Small Group Personal Training for all skill levels and nutritional coaching.
The new owner will have support from the franchise to assist with the transition of ownership with systems already in place for automated customer billing, marketing plans & materials, online scheduling, web and social media design, and maintenance. Total Membership for this location is currently 120 Active members with the potential for more growth. This is a turnkey business with staff and systems in place and is ready for the new owner to start generating revenue on day one. The current owner has done most of the hard work to build out space, and it just needs an owner who can run the gym full-time. The location is right off a major highway in a shopping center with high-volume traffic and plenty of parking for clients. Don’t miss out on this great opportunity to buy a profitable fitness center for WAY less than the cost to start your own!
Health and Fitness industry (US):
– 2000: $11 billion
– 2017: $30 billion
Adult obesity rate (US):
– 2000: 30%
– 2016: 40%
What you get:
An Established Gym with 120 Active Paying Members. A fully-equipped fitness center at a cost much lower than starting from scratch
Ongoing training and support, fully integrated billing and autopay, and marketing software. Branding, web, social media, etc…
Staff and systems are in place for the new owner to start generating revenue immediately!
Step 1: Click the link below to sign an NDA digitally.
Step 2: You will be sent detailed information (memorandum) regarding the business.
Step 3: Schedule a meeting to visit the business and meet the owner if it warrants further due diligence.
Step 4: Place a bid for the business.
Step 5: You will be contacted to arrange a 100% refundable earnest deposit of $250 to register your bid. Your earnest deposit will be returned if your bid is not accepted.
Step 6: If you are the winning bidder, you must be prepared to fund the purchase of the business.
Don’t hesitate to call our office at 800-905-1213 or comment below If you have any questions regarding the auction process, the business, or anything that you need more clarity on.
Buy A Business By AuctionYou can buy a business by auction and get a great deal. This fast-food restaurant featured in Chatam, N.J., has been thriving even with COVID-19 restrictions. It is being sold by auction and is ready for your inspection. It is essential to do your due diligence before bidding. You must sign a Non-Disclosure to get specific details about the business. You can visit the company and meet with the owner by appointment and permission only. Strict confidentially is necessary because the employees, customers, and vendors are unaware of the sale. Complete your due diligence before bidding. Call 800-905-1213 or email us so we can arrange a visit or answer any questions.
Gross Sales: $290,000
Cash Flow: $77,153
Inventory: $2,500
Rent: $3,600
Year Established: 2015
Business Description:
Buy a business by auction that is turn-key with enormous growth potential. It was established over six years ago and is a local favorite specializing in fast food such as chicken, burgers, hot dogs, wings, etc… The restaurant is strategically located in a popular shopping center that provides high traffic from the nearby college, residential homes, and other commercial retail. The space includes a compact commercial kitchen with a walk-in cooler, freezer, separate dry storage area, etc… A new owner can take advantage of the Build-Out that has already been completed with new tables, a new countertop, a new water heater, and a new fryer. In addition, a new owner will be positioned to start making money on day one with a customer base & trained staff already in place. This business, located in an affluent area of Morris County with an average household income of over $160k, is currently positioned to provide a solid return on investment for a buyer. The seller will provide training for a mutually agreed-upon period to help with a smooth transition.
Step 1 Click the link below to sign the NDA digitally.
Step 2: You will be sent detailed information (memorandum) regarding the business.
Step 3 Schedule a meeting to visit the business and meet the owner if it warrants further due diligence.
Step 4 Place a bid for the business.
Step 5: You will be contacted to arrange a 100% refundable earnest deposit of $500 to register your bid. Your earnest deposit will be returned if your bid is not accepted.
Step 6: If you are the winning bidder, you must be prepared to fund the business purchase in 14 days, or the $500 earnest deposit will become non-refundable.
Don’t hesitate to call our office at 800-905-1213 or comment below If you have any questions regarding the auction process, the business, or anything that you need more clarity on.
This page will discuss how to sell a small business quickly using an auction. An auction is the process of buying and selling any time, including companies, by offering them up for bid, taking bids, and then selling the item to the highest bidder. Auctions are becoming more popular partly due to the pseudo-endowment effect, which means the bidder feels a sense of ownership and increases motivation to win and bid higher than initially intended. Bidders’ feelings at auctions can be attributed partially to competition and somewhat to pseudo-endowment. Auctions benefits include:
Create competition
Enhance buyer perception
Add sense urgency
External Validation
Fear of Loss
The amount a buyer is willing to pay. A bidder is expected to make the lowest possible bid and bid more as higher bids are made.
The minimum a business can be sold for regardless of the highest bid. This eliminates any risk of obligation to accept a too-low offer.
The starting price is usually 60% of the reserve price but can be set at any level to maximize interest and emotion. Many auction participants describe the intense emotions during the bidding process and the tendency to over-bid their pre-determined limits as “auction fever.”
In this type of auction, all bidders simultaneously submit sealed bids. No bidder knows the bid of any other participant. The highest bidder wins if the price submitted exceeds the reserve price.
Q. How long will it take my business to sell by auction?
A. 30-90 days after the company is prepared and bidding begins.
Q. Will buyers want to visit the business before placing a bid, and how is that managed?
A. Some buyers will want to visit, and some won’t. It benefits getting higher bids if the buyer invests time in a visit and conducts due diligence. Due diligence is only allowed after a signed NDA and proof of funds or credit check
Q. How will buyers pay, and is all the money due upfront once the bid is accepted?
A. Buyers will pay an earnest deposit of 10% of the bid paid by check. The balance will be paid by wire transfer or certified bank check at closing.
Q. Who handles the money, and is the earnest deposit due before the end of the auctions?
A. The seller’s attorney will serve as the escrow agent, or the seller may request Bizprofitpro to serve as an escrow agent. The Earnest deposit is due before the auction ends. Proof of funds or financing must be in place before the end of the auction.
Q. Do buyers have a due diligence period in the auction process, and when does it occur?
A. Due diligence can be done anytime during the auction upon mutual agreement between parties.
Q. Does the seller have the right not to accept the bid even if it meets the reserve price?
A. The seller must accept offers that meet or exceed the reserve price.
Q. Are buyers expecting to buy the business at liquidation prices?
A. Buyers are making bids among other bidders, so the added competition will push the price closest to the actual market.
Q. On what site is the auction taking place?
A. Bizprofitpro manages the auction confidentially online.
Q. Will the name of my company and location be given when marketing for the auction?
A. No, confidentiality is maintained with an NDA at every step until the company’s transfer is made.
Q. How will you determine a price to start the bidding?
A. Specifying the start price is a psychological determination. We set starting bids at a 60% reserve price to take advantage of the pseudo-endowment effect. This is the concept that bidders feel a sense of ownership and bid higher than initially intended. The reserve price protects the business from selling for less than minimum expectations.
Q. What can I expect to make if the business is sold via auction?
A. You can expect to meet or exceed the minimum reserve price. If multiple bidders exist, the upside could be substantially higher than the reserve price.
Selling a business by auction is not the right choice for every business. A market that is too small will not 
lend itself to being a successful auction for a business. Additionally, the industry the business is in will also play a significant factor in the demand for the company. We have data that can predict the likelihood of the best strategy to sell your business. There is little risk in using an auction to sell your business because the Reserve Price prevents you from receiving a bid lower than your minimum price target.
A pricing strategy must be developed before you decide to sell your business. The price must be based on the actual value of the company. We offer free preliminary business appraisals so you will know what your business is worth. We will also give you everything you need to get the most money for your business. Schedule a call with us or call if you are considering selling a business by auction at 800-905-1213.
Bizprofitpro offers small business assistance to help entrepreneurs plan, launch, manage, and grow businesses. We define the elements of companies by pillars. We identified Seven Pillars which are: Finance, People, Operations, Leadership, Change Management, Marketing, and Sales. We published a book on Amazon.com titled Seven Pillars to Profit – A Blueprint for Small Business Owners that offer insight into our business philosophy and the services that we deliver. We execute the best practices to grow any company.
All of our services are designed to increase revenue and profits in any business. Our services are designed to pay for themselves in cost savings or increased profits. We only recommend services that have an acceptable return on investment (ROI). We accomplish this by offering assistance in areas, which include small business advice, small business resources, and small business assistance. Here are our core services that are customized for your business:
Search Engine Optimization SEO
Pay per Click Advertising PPC
Landing Page Development
Website Development
Logo Creation
Social Media
High Impact Marketing
Keyword Research
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We help businesses become more profitable by increasing revenue. We offer a free review of any area in which you are seeking help for your business. We recommend the best course of action that meets or exceeds your objectives. The sooner you take action to increase your profits the sooner you can start enjoying the benefits of more cashflow, more revenue, more profits, and less financial stress. Schedule a time at your convenience to discuss how we can start increasing your profits.
Marv White is a Managing Partner at Bizprofitpro, a business strategy and exit planning firm. He helps entrepreneurs with small business assistance, raising capital, and improving financial health. He is also a best-selling author, speaker, and business coach.
It’s more important to know how to assemble the perfect remote team. The argument for a complete in-house, in-office team of staff is becoming weaker because of COVID-19 and how businesses have adapted. Most tasks can be effectively outsourced to freelancers and dedicated companies, reducing costs and boosting flexibility. By identifying which of these tasks you want to outsource and investing in the tools to manage people remotely, you can build the ideal distributed team for your company.
First, you need to decide which tasks within your company are most in need of outsourcing. These can be jobs beyond your skillset that you don’t enjoy or would simply benefit from professional expertise. The most important thing, however, is that freelancer roles are well-suited to remote work. Common examples include:
● Web & Mobile Developer – Coding is a foreign language to most people, which is why web development is one of the most popular jobs to outsource. Even if you use a user-friendly web builder for your website, a developer can use a specific coding language to personalize it beyond the basic templates, like CSS for Squarespace or PHP for WordPress.
● SEO Expert – High-quality SEO is one of the most reliable ways to drive traffic to your website. Not only does it increase conversion rates, but it can help establish brand awareness and credibility.
● IT Support – In-house IT support is a big expense that most businesses, especially smaller ones, don’t need. Remote support is the most cost-effective solution. You can expect to pay $60 to $85 per workstation per month for remote help desk packages, which include anti-virus, anti-spam, and remote access.
Freelancer, Employee, Or Company?
Once you have identified what jobs you want to outsource remotely,
you need to figure out what model you will use. Your main choices are hiring a freelancer, hiring an employee, or hiring a company with its team of workers.
The trickiest decision is choosing between freelancers and employees. According to Forbes, freelancing works best for short-term projects, one-off jobs, and anything that doesn’t involve a 9 to 5 commitment.
However, this isn’t a hard-and-fast rule: for example, a personal assistant is a job you would usually associate with traditional employment, but you can hire experienced remote assistants who can do a similar job to a traditional assistant – fielding phone calls, managing data entry, arranging your schedule – but with much more flexibility.
As for companies, there are several situations in which they are particularly useful. For example, when it comes to marketing and branding, there are several benefits to hiring a team like Rogue Creatives. Not only do you get a fresh, outside perspective, but you can also rely on the creative talent of several experts without having to pay for each one individually.
Once you have figured out who will comprise your remote staff, you must invest in the tools to manage them effectively. You will need:
● A way to communicate with them regularly. Email and Skype can work fine for individual freelancers, but for larger teams, you should consider a platform like Slack.
● A tool to keep track of invoices and payments, like a spreadsheet or, for more complex cases, some accounting software like FreshBooks, Intuit Quickbooks, or Xero.
● An established strategy for keeping track of their progress, whether it is daily updates or a time-tracking application.
Entrepreneurs need to be able to do whatever it is they do best. This means recognizing their blind spots and knowing when to delegate. You need to surround yourself with the best people, and the best people can be found all over the world. We are lucky enough to live in a globally connected world, where all of the world’s talent is accessible in a few clicks – take advantage of it!
Tina Martin is a Copywriter, Life Coach and author of IDEASPIRED.
How to sell a business quickly is a question that I get asked a lot. Unfortunately, the answer is seldom what anybody wants to hear. The average time to sell a company is about seven months, which hasn’t changed much in the last several years. This article will discuss the factors that ultimately determine how fast your business is going to sell and how to shorten the time it takes to sell your business.
This is where the buyer reviews the balance sheet, cash flow statement, and income statement to understand the company’s financial condition. Also, the tax returns should be made available and match other financial statements.
The company should produce a living wage, or it will likely take longer to sell or won’t sell at all. Any business can be sold, but it may take far longer, and the terms will be in line with the value of the business.
Your company should be able to be run by someone in the industry or of reasonable talent. Your processes, equipment, and employees should be able to operate the business within a short transition period.
A company’s sales price depends on seller discretion earnings (SDE). Most small companies under 500K can expect to sell for about 1.5 to 2.0 SDE, and $500K to $2MM in sales can expect a multiple of 2.5 to 3.5 times earnings.
The quality of earnings will also impact how long it will take to sell your business. High-quality earnings are highly repeatable regardless of who is running the business. Also, the effort to get consistent profits can be achieved with minimal effort. The higher the quality of earnings, the less time it will take to sell a business.
Selling a business quickly can be done if your company is priced right. The right price isn’t the lowest. A business priced too low will signal that something is wrong with the company. Not to mention, you leave money on the table and take a financial hit. The asking price of the business must be strategically priced for the market and advertised to a large audience of buyers. Get more information on our FAQ page, or click the button below to schedule a call today.
This article will discuss how to increase the value of a business by paying more taxes. To sell your business for the most money you need to report your actual income. If you have any thoughts of selling your business in the 
next 3 years; you must state ALL of your REVENUE on your tax returns. I know many are cringing at the thought of paying taxes on income that you can leave unreported and pay zero tax on the unreported income. But the reward is so much greater by paying taxes on all income. Every business owner should start reporting all income now in the event you want or need to sell your company in the next few years. The proof is in the numbers. If a business owner earns 100,000 in income and assuming a 25% tax bracket, but the owner only shows 60,000 in earnings. This amounts to a $15,000 tax bill versus $25,000 if all earnings were reported. $10,000 in less tax payments will cost $100,000 of business valuation. Consider the illustration of the example company below:
EXAMPLE COMPANY
The consequence of underreporting income is $100,000 in this simplified example, but it is very common for small businesses to follow this practice. Not only will you leave $100,000 or more on the table, but you may not be able to sell your business at all. Entrepreneurs that have the capital or the ability to raise capital will want more than a living wage that can be verified on a tax return.
The other consequence comes when no lender will lend your buyer money because the tax returns don’t justify a loan for the sales price you’re asking. Buyers will require at least 3 years of business tax returns to verify income and get financing. Never understate revenue, but you can be generous with expenses; particularly discretionary expenses. Discretionary expenses are the expenses that a new owner doesn’t have to continue to run the business. For example, travel, entertainment, auto expense, training, etc… that are really owner perks that a new owner can run the business without. Discretionary expenses can be added back and explained to the new buyer. A consultation with your tax professional is wise when using this strategy so that you adhere to best practices. Every business will be sold one day; it’s just a matter of when and for how much… Make sure you report your income so you can cash out of your business on your terms. Click here to get more tips to increase the value of any company.
A turnkey health and fitness club for sale with a proven track record of success. This fitness clue uses a fun kickboxing model that really works. It’s a fun way to get and stay fit with members maintaining memberships longer than industry averages. This is a franchise that costs way more to set up than the price it is being offered at. Call us at 800-905-1213 to learn more or click here to schedule a call.
It has survived COVID-19 restrictions
Trained staff in place and will stay
A successful business model in place
150 active members
State of the art technology to track fitness levels
Buy for less than the price of equipment
Location: King of Prussia, PA
Inventory: Not included in asking price
Real Estate: Leased
Building SF:2,653
Lease Expiration: N/A
Employees:5
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities:2653 sq ft of prime retail space
Support & Training: The seller will train the buyer for as long as needed
Reason for Selling: Running as absentee owners & no longer have the time with a full-time job
Franchise: This business is an established franchise
A signed non-disclosure agreement is required to get more information on this business opportunity. Click below to submit your email address so we can send an electronic NDA that can be easily signed online.
Our business is your profit. Our no non-sense business coach will be focused on increased profitability from day one. You can stop worrying about cash flow, payroll, retirement, or personal expenses with your custom blueprint to achieve more profit. You will get the support and accountability you need to get more time and money from business ownership. I am the author of Seven Pillars to Profit which is a blueprint for small business success and is the basis of this program. Get my book free by booking an introductory call so you can start getting results immediately. We don’t talk about theory, we talk about action and what you can do in hours and days to start earning more money in your business. Many things you can start in the next 24 hours with little or no costs and get immediate results.
1 – After you sign up, you get a link you can use for the next full year to schedule as many 15-minute Bizprofitpro Express Coaching™ sessions with me as you like.
2 – We start with a 30-minute introductory call to talk about where you are in your business, and what your goals are for the coming year. You will get more clarity and focus after the very first call.
3 – Then, during each subsequent 15-minute call, we’ll discuss your progress and agree on what you need to do next. We focus on simple action steps that lead to significant results.
4 – After each call, I send you an email with a link to a recording of our call, your homework, and the link to schedule your next call.
5 – You can schedule your next session using my personal Coaching Calendar as soon as you’ve finished your homework. That’s our primary rule.
6 – You have one full year to get on the phone with me for as many sessions as it takes to get “Bizprofit Results” and reach your goals.
7 – You also get Unlimited email follow-up for a full year. If you have a question between calls, you can email me any time.
• Increase your revenue without hiring new staff
• Get more sales from your current customers
• Increase your average transaction amount
• Create content for your B2B or B2C company
• Compete successfully with much bigger companies
• Get “unstuck” from a nagging business problem
• Any other business goal you have in mind – After you sign up, you get a link you can use for the next full year to schedule as many 15-minute Bizprofitpro Express Coaching sessions with us as you like.
P.S Our program is not for everyone as it is rigorous and demanding but it has to be to get the results you want. You will get a free digital copy of Seven Pillars to Profit just for booking an appointment. We go right to work on the free introductory call so you can start getting results from the first call.
7 Pillars to Profit by Marv White
Click to Schedule a Discovery Call
I sold my company some years ago, paid too much money to a business broker, and got poor results. It took over a year to close, and I didn’t get the money I deserved. This experience led me to share my story and help friends and colleagues sell their businesses without a business broker.
I created a systematic approach using technology and social media while keeping the sale secret how buyers find business opportunities has evolved and changed like most things. What worked a few years ago no longer works due to changes in technology and buyer behavior. The approach I am describing here is not for every business. Some businesses will require professional help because of complexities associated with the business, industry, market, or other factors.
This conclusion was reached by my own bad experience selling businesses and the desire to make selling a company easier and less costly. It is reported that most small businesses offered for sale never sell. This is because some components are not adequately prepared, and there is no systematic approach.
The most important part of the process is to keep the sale secret while getting your company maximum business exposure to buyers. Employees, customers, and vendors should never know your business is for sale until the deal is done. It’s important to have realistic expectations and know that it will take considerable time to get your company sold.
The approach I suggest includes market analysis and the necessary components for a successful transaction. You need to know the best price to sell your business without leaving any money on the table. A systematic approach is important if you want to sell your business without a business broker. It is also important that your business is properly marketed to the largest audience of buyers possible. You must be able to show your company’s benefits to a new owner. Sometimes a complicated transaction requires a business broker or professional help, but you know your business better than any business broker and are likely the most qualified to sell it.
The first step in selling a business is making the determination you want to sell. There should be a good reason to sell your company, so you don’t have regrets later. If your “why” is not strong enough, you probably will not have the will to do everything necessary to get your best deal. Don’t cheat yourself and sell too soon. If you still have the desire and the means to improve the business, you should do so. The better you can make the business, the more you will be rewarded upon your exit. Also, don’t hurt your business by staying too long and letting the business decline. This is not an easy decision, and your “why” should be clear to you when the decision is made.
The first step in selling a business is to know how to price the business for sale. No one will make an offer on your business if the price is too high. If your price is too low, you will leave hard-earned money on the table. There are several valuation methods, some based on the balance sheet, earnings, projections, equipment, intellectual property, comparable sales, and more. Seller’s Discretionary Earnings Method, Comparable Sales Method, and Multiple of Sales are the most appropriate for most small businesses. You will need the right data sources and proper financial documents for an accurate business valuation.
This key document contains all the financial information about your business. Its sometimes referred to as a Confidential Information Memorandum (CIM). The document describes how the business operates, its customers, equipment, pictures, etc. Consider it a virtual tour of your business that will be an expectation by any serious buyer. Buyers will not seriously consider purchasing your business if you fail to produce a CBR. You may be forced to accept a lower sales price if you don’t have a CBR. You can see a sample CBR here.
The adjusted cash flow statement is the document you can’t afford to have if you want to sell your company. The adjusted cash flow statement should show three years of financial data that tax returns can support. It’s called adjusted because adjustments are made for discretionary expenses, depreciation, amortization, interest expense, non-recurring costs, taxes, and other special expenses. Learn more about how this calculation is done here.
The first communication you will likely have with a buyer is by email. Set up a free Google Account which gives you free access to a suite of free Google services. The services include Gmail, Google Docs, Google Sheets, Google Voice, and much more. After you sign up for a new Google Account, get a Gmail Account. This email will keep all your buyer leads and communication separate from your regular email and let the discussions be secret until you have a signed non-disclosure agreement. Choose an Email name that does not describe anything about you or the business. The idea here is to be anonymous until an NDA is signed.
You will also need a Google Voice account which is one of the services included in your Google Account. All Google Products are assigned to this account which makes a convenient way of staying organized during the process of selling your business. Select the free “personal account” with a local number. Google will give you a list of numbers, and choose the number you want. It doesn’t matter which number you choose if it’s an area code that is common to your area. This will allow you to get a free phone number that you can forward to your regular phone line.
Get an online signature program like signNow which allows for sending non-disclosure agreements by email. The NDA is added to sign now as a template and can be sent out as often as possible with just a few keystrokes. After you send the NDA to a buyer for signature, sign now will send you a confirmation email with the signed form. This greatly speeds up the process and keeps digital records of the signed agreements. It is recommended not to share confidential information about the business with buyers unwilling to sign an NDA. Keeping the sale secret is important to protect the business.
Buyer-Seller meetings should only be done after you have an executed NDA and the potential buyer has received the adjusted cash flow statement and CBR we provided for you. In addition, “Buyer-Seller Meetings” should be done before or after working hours. It should be done when few or no employees are around. The buyer will expect a physical tour of the location and an explanation of your company’s products and services. Many questions will already have been answered from their reading of the CBR. You can expect the buyer to learn a lot about you, which is good. People buy businesses from people they like and trust. Be very forthcoming and don’t oversell.
You may have many conversations throughout selling your business. You will want to use a tool like Google Docs or Google Sheets to record the names, phone numbers, and emails of the people you talk to. A potential buyer you talked to weeks or months ago will call to continue the discussion about your business, and you may have no recollection of who it is. Above all, use the tool you are comfortable with as long as you can keep records of the people you talk to about your business.
Letter of Intent (LOI) and Purchase & Sale Agreement are being discussed together because every deal is not the same. Some transactions go to a Purchase and Sales Agreement and skip the LOI altogether. It has much to do with the buyer’s sophistication and information. A buyer with less information is more likely to offer the non-binding LOI. A buyer in a competitive situation may opt for a Purchase and Sale Agreement first if there is a threat; he could lose the deal to another offer.
Marketing your business on the biggest business-for-sale websites is necessary to sell your business in the least amount of time. In conclusion, you must list your business on multiple business-for-sale websites to get the most money. Bizbuysell.com and Bizquest.com are the two biggest websites for selling a company, and your business needs to be on these sites for a successful transaction. As a minimum requirement, you also need the necessary financial documents, including an adjusted cash flow statement and balance sheet. A CBR and a business valuation should be done so you know exactly where to price your business.
After you know the why “am I selling my business,” you must know the right price to list your business. You may learn that the price your business will sell for is less than you are willing to accept. In this case, you improve your business until your company is worth what you are ready to take. Get more information about selling your business without a broker by clicking the button below:
This article is written to increase the value of your company. Business owners can increase the value of their business by one to six times in twelve months. Most business owners have much of their net worth linked to their companies, which is often their largest asset. Increasing the value of your business can be the most effective way to create financial security and independence for you and your family. Maximizing business value is critically important, whether you are considering a transfer in the near future or years down the road. Public companies have a fiduciary duty to maximize shareholder value; small businesses should also have a duty to maximize the value of their companies for their own benefit.
The value of your business is a measurement of future earnings, assets, and risk. It’s no surprise that healthy companies have higher values in the marketplace. Most business owners focus on profits, as that’s what affords business owners an income; however, the real wealth of a business is in its valuation. The value of the business is the ultimate measure of the financial independence your company will afford you at the time of transfer.
Too many business owners focus singularly on profit and neglect the actions necessary to increase the value of their businesses. All too often this gets overlooked until it’s too late when the business must be transferred out of necessity. The business may transfer at only a fraction of its value had it been properly positioned and prepared or may never transfer at all. The U.S. Department of Commerce estimates that 3.6 million businesses are offered for sale every year. Only 250,000 of these businesses are actually transferred. Of the businesses that do transfer to new owners, 80% are sold at less than 50% of their real value.
The value of a business can vary greatly due to the illiquid nature of the market for private companies; and in part because of the necessary discretion involved in selling a private company. Unlike real estate, owners can’t put up a “for sale” sign and advertise their business. The business would likely suffer if competitors, customers, employees, and vendors learned that your business was for sale. If you follow just some of the techniques in this report, your business will be better positioned and prepared for a transfer whenever the time comes.
Some businesses may take years to prepare and position to reach a satisfactory value; so it is imperative to be as diligent about business valuations as you are about profits. The value of a company is a measurement of earnings potential, assets, enterprise risk, and other factors. It’s no surprise that companies with the greatest profit potential get the highest valuations in the marketplace.
Most owners’ focus on profits, as that’s what affords business owners an income; however, this report focuses on valuations as it usually receives little attention. The valuation of your company is the ultimate measure of how much financial independence your company will give you at the time of transfer. The value of a business can vary greatly due to the illiquid nature of the market for private companies. This is due in part to the necessary discretion involved in selling a private company, limiting the pool of potential buyers. Unlike real estate, owners can’t put up a “for sale” sign and advertise their business. The business would likely suffer if competitors, customers, employees, and vendors learned that your business was for sale. Transferring a business is a process that takes time. The time to start thinking about a business transfer is long before you have any thoughts of actually doing it. The consequence for not doing so can have enormous financial implications. Download the free report to quickly increase the Value of a company 1 to 6 times.
We help companies with business growth by generating more leads for clients’ products and services. We apply a 3x Sales and Marketing Tool to help companies exceed revenue targets and improve profitability. What worked a few years ago isn’t working today. We use a world-class state of the art marketing and sales system, so your business dominates your competition. We analyze your ideal client and understand what motivates them to buy your product or service. This allows us to create the blueprint that delivers steady leads to your business. Our 3x Sales and Marketing Tool is a customized strategy for your company. Our plan is designed to increase your revenue three times from where your business is today.
Business growth requires an understanding of many factors, including your competition, customer acquisition cost, scalability of your product or service, your offer, and much more. Our tool is designed to focus on the factors that generate leads that convert into sales. You will be armed with the knowledge and strategy to dominate your competition.
“I have never worked a day in my life without selling. If I believe in something, I sell it, and I sell it hard.” – Estée Lauder
We can create a custom blueprint for your business that generates more leads and more clients faster and more consistently. We will design and deliver a custom plan to 3X your business at no cost and with no obligation. Every business will grow with our 3x Sales and Marketing Tool. The speed at which a company grows depends on many factors, including production, human resources, inventory, sales cycles, etc… Every business is unique, which is why every plan is customized for the company.
Every business must be growing, or it’s dying. Business Growth requires more sales, and more sales require more leads. When your business can generate leads, you control your financial destiny. So many companies never figure this out, scrape by, and never stop struggling to get the financial freedom that entrepreneurship is supposed to deliver.
Contact us if you want to grow your sales and profits. We are happy to execute your 3X blueprint, or you can implement the program and enjoy the benefits. You win either way! Click or call to schedule a free consultation for your customized 3X Sales and Marketing Tool today.
The biggest hurdle to buying a small business is often financing the acquisition. If your credit score is above 675 you may fund your down payment with a retirement account. You can then fund the balance with an SBA 7(a) Loan. Retirement funds are tax-deferred and penalty-free as the down payment when securing an SBA 7(a) loan. 20% is typically allocated to the down payment and 80% funded by the SBA 7(a) program. Qualified Financial Institutions are aware of the requirements and will keep you in compliance and make the necessary filings. Rollovers have particular requirements set by the Internal Revenue Service, Department of Labor, and ERISA. These transactions must be done properly by qualified financial institutions.
Buying a small business using retirement funds is not a decision to be made lightly. Your financial future will be affected by the purchase of a company. Much of the risk of buying a business can be reduced by understanding the reasons why businesses fail.
1. Not understanding your market better than the competition
2. A business model that is flawed
3. The wrong location
4. Failure to advertising and market properly
5. Failure to change with the industry and market
6. Unable to hire, train and retain employees
You should only consider financing companies that you can navigate away from the perils that cause business failure. This financing technique works for existing businesses, and franchises. Buying a franchise is often a safer way to get into a business. Many businesses have been funded with conventional and creative business funding tools discussed in this article. These techniques enable entrepreneurs to combine traditional and alternative financing solutions. Take the stress out of financing a new or existing business so you can focus on the success of your business. Learn more about these business funding solutions with this Financial Funding Tool. click here
How to sell a business quickly requires a systematic approach. 80% of Businesses offered for sale will never sell. Businesses don’t sell because there isn’t a systematic approach to find the right buyer. Buyers are sophisticated and won’t buy unless the right components are in place. Bizprofitpro has created a system that makes sure your business has all the components it needs to get offers at the price that you deserve.
Selling a company quickly requires a systematic approach. 80% of Businesses offered for sale will never sell. So many companies never get sold because there isn’t a systematic approach to properly presenting your business opportunity and attracting buyers. We have spent years creating a Business Selling System that will ultimately get you the best offers for your business. Selling a business has changed because of technology and the rising sophistication of buyers. Buyers are smart and won’t even make an offer unless all the right components are in place. Bizprofitpro has created a system that guarantees you have all the components in place to get offers at the price you deserve.
Our Business Selling System is the fastest most economical way to get your business sold for the most money. Our system has five major components: 1) Professional Valuation 2) Prepare Selling Documents 3) Advertising & Social Media Campaign 4) Qualify Buyers 5) Deal Closing. Selling a business is not like selling anything else. It requires specific knowledge and expertise in many areas that include understanding the marketplace for small businesses, the latest marketing, and advertising strategies, and social media to achieve the best results. We offer free preliminary business valuation appraisal so you can know what price you can expect for selling your business. Click here for preliminary business valuation.
The Questions for Entrepreneur Quiz predicts if you have the right stuff to be an entrepreneur. We researched the personalities of successful entrepreneurs and studied common traits they all possessed to create the entrepreneur quiz. There are different entrepreneur types ranging from freelancers to business leaders. This quiz won’t tell you what type of entrepreneur you are but if your personality is compatible with entrepreneurship in general. This is an easy quiz to take, just add and subtract your score as you take the quiz to see your suitability to be an entrepreneur. It’s best if you get a piece of paper and tally your score as you answer the questions. The higher your score the more suitable you are for business ownership. Entrepreneurship is not for everyone. Be honest with your responses to get the best results.
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1. Were you a top achiever in school?
If you were a top student subtract 4, If not add 4.
2. Were you enthusiastic about participating in group activities in school?
If you enjoyed group activities like school clubs, team sports, or double dates, subtract 1. If not, add 1.
3. Did you prefer being alone as a youngster?
If yes add 1, If not subtract 1
4. Did you start a childhood enterprise or run for office at school?
can add 2. Those who didn’t have a childhood enterprise subtract 2
5. Were you stubborn as a child?
If you were a stubborn child add 1. If not subtract 1
6. Were you a cautious youngster?
If yes, subtract 4. I no, add 4.
7. Were you daring as a youth?
Add four more
8. Does the opinion of others matter a lot?
If you do, subtract 1. If they don’t add 1
9. Are you tired of your daily routine?
If that’s your motivation, add 2. If not, subtract 2.
10. Are you willing to work overnight?
If yes add 2. If no subtract 6.
11. Were your parents entrepreneurs?
Give yourself 1 point. If not, subtract 1 point.
12. Would you be willing to work “as long as it takes” with little or no sleep to finish a job?
If yes add 4 more.
13. When you complete a project successfully, do you immediately start another?
If yes, add 2. If no subtract 2.
14. Are you willing to use a significant amount of your savings to start a business?
Add 2 for yes and subtract two if no.
15. Are you willing to borrow money from a bank, or friends and family?
Add 2 for yes or subtract 2 for no.
16. If your business fails, will you immediately work to start another?
If yes add 4. If no subtract 4.
17. Would you immediately start seeking a good-paying job?
Subtract 1. If yes
18. Do you see entrepreneurship as risky?
If yes, subtract 3. If no, add 2.
19. Do you put long-term and short-term goals in writing?
Add 1 for yes and subtract 1 for no.
20. Do you feel you have more knowledge and experience with cash flow than most people?
Add 2 for yes and subtract 2 for no.
21. Are you easily bored?
Add 2 for yes, subtract 2 for no.
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35 or more: You share many of the qualities of an elite CEO. You have everything going for you and will likely enjoy spectacular entrepreneurial success.
18 to 35: You have the stuff that entrepreneurs are made of. You should do well as a business person as long as you give the required effort and maintain patience.
0 to 15: You can be a reliable business owner, but you have to make sure that entrepreneurship is for you.
-15 to 0: You might be able to make a go of it, but you may have to put in extra effort as your characteristics don’t lend themselves to the life of an entrepreneur.
15 to -35: Your characteristics and risk tolerance are not likely suited to be an entrepreneur.
The quiz isn’t scientific and shouldn’t be taken too seriously. It is meant to get you thinking critically about your personality as it relates to entrepreneurship. The voice inside your head is the only voice that matters. You may also consider clicking the following link to sign up for our next Business Buyer Webinar. We discuss the safest way to buy a business and join the ranks of entrepreneurs. Follow your heart and fulfill your potential whatever it is and wherever it may take you.
Selling a business is a monumental decision that involves a complex process. When selling a company in Maryland—or the greater DMV area (Washington, D.C., Maryland, and Virginia)—using a professional business broker can make all the difference. A business broker in Maryland brings local market expertise, buyer networks, and negotiation skills that streamline the selling process while ensuring you maximize the value of your business.
Here’s a comprehensive guide to the essential factors and strategies for selling a business with the help of a broker in Maryland.
Profitability is a primary factor buyers evaluate. Consistent and growing earnings attract higher offers and more buyer interest. On the flip side, inconsistent or declining earnings can reduce a business’s desirability. Quality financials not only enhance the asking price but also instill confidence in buyers.
Determining the right asking price is critical. It should be based on a blend of factors, with seller discretionary earnings (SDE) being a major influencer. Setting the price too high might scare off potential buyers, while a price too low could leave money on the table. Business brokers often use valuation tools and industry benchmarks to recommend an optimal asking price. We offer free rules of thumb to help you properly price your business.
Once a buyer is interested and price terms are agreed upon, the due diligence phase begins. This process involves an in-depth review of your business’s financials, operations, equipment, and records. Any inconsistencies can break the deal or lead to renegotiation. A broker can help you prepare for this phase to avoid surprises.
Your business should be capable of running without your direct involvement. Buyers seek companies with established processes, trained employees, and operational independence. Businesses that depend heavily on the owner are harder to sell and often fetch lower prices.
Lenders play a significant role in business acquisitions. A business that is “bankable”—with verifiable cash flow, strong financial records, and tangible assets—will attract more buyers. If your business lacks sufficient bankability, alternative financing arrangements, like seller financing, may be required.
Clean, accurate, and comprehensive records are non-negotiable. At least three years of tax returns, profit and loss statements, payroll records, and equipment inventories should be readily available. Proper documentation reassures buyers and supports your asking price.
Selling a business in Washington, D.C., Maryland, and the Virginia Market is more complicated if you don’t understand the market. Business brokers will likely fail if they don’t spend time analyzing the current market conditions. Methods for selling a company have changed along with technology and the speed at which business transactions happen. The practices that worked in the DMV area just a few years ago have stopped getting the results they once did. We researched market trends and used this data to improve our business selling methods.
Selling a business in Maryland is a complex process, and using a local business broker offers several key advantages:
Maryland brokers understand the unique dynamics of the Washington, D.C., Maryland, and Virginia (DMV) market, ensuring your business is positioned correctly.
Business brokers use local market data and industry benchmarks to provide a fair, realistic valuation, helping you maximize your sale price.
A broker creates a personalized exit strategy tailored to your financial goals and timeline, ensuring a smooth sale.
Brokers maintain privacy throughout the process, protecting your business’s reputation and confidentiality.
Brokers have access to an extensive database of pre-screened buyers, connecting you with serious potential buyers faster.
By working with a Maryland business broker, you enhance your chances of a successful sale, while ensuring a smooth and profitable transaction.
In today’s information-driven marketplace, buyers are more knowledgeable than ever. A systematic, well-prepared approach ensures your business meets the demands of savvy buyers. Preparing documentation, streamlining operations, and addressing potential concerns before listing are essential steps a broker can guide you through.
Preparation for due diligence should start long before you engage with potential buyers. Addressing issues proactively—whether they’re financial, operational, or legal—saves time and ensures buyers see your business in the best light. A well-prepared business is more likely to close quickly and at a favorable price.
Go to our FAQ’s for more information about selling a business. You can also schedule a free phone call to discuss the best strategy to market your business for sale without anyone knowing it’s for sale.
Selling your company is a major milestone, and partnering with a knowledgeable business broker in Maryland can ensure the process is seamless and profitable. From market insights to buyer connections and strategic planning, a broker provides invaluable support to maximize your business’s value.
Buying a franchise resale may be the safest way to get into a business. Buying an existing business has always been a secure way to buy a company. An existing business has customers, vendors, and history that can be analyzed and insight into future performance. According to the Small Business Administration, starting a business from scratch is a complete unknown, with a failure rate of 66%. Bloomberg says, “8 out of 10 entrepreneurs who start businesses fail within the first 18 months.”
1. Not Investigating the Market
2. Flawed business model
3. Bad location
4. Failed advertising and marketing
5. Failure to change with the market
6. Inability to hire and train employees
Buying an existing business is a less risky way to get into business than a start-up, but there may be an even safer way. Buying an existing franchise can be an even safer path to entrepreneurship. A franchise resale is like buying a regular, but the franchise takes it further, making it less risky by solving the top reasons companies fail. 
Most small businesses maintain incomplete financial records that don’t offer enough clarity for buyers to make informed decisions. Tax returns typically underreport income to minimize tax liability and confuse the business’s financial health. Additionally, relying on an owner to have implemented the best practices does not compare to a franchise. A franchise has proven its business model on multiple franchised units and has vast experience in different markets to continually make refinements to deliver the best results.
Franchises are held accountable by the U.S. Federal Trade Commission (FTC) and local state agencies for oversight and reporting. Franchises must file a financial disclosure document (FDD), which details information about the franchise that aids in due diligence. This data surpasses what most privately held companies can provide about the business and the overall market.
The Franchise Disclosure Document is a legal document available to prospective franchised buyers in the pre-sale disclosure process. The FDD contains all of the information that state and federal franchise regulators consider relevant to a franchise investment, and it is a critical document in researching a franchise. Information in the FDD includes the franchisor’s history and its executives’ business experience, the fees that the company charges, the requirements for purchasing inventory, the franchise agreement, and three years of the franchisor’s financial statements.
Item 19 as it is a critical part of every franchise disclosure document. It shows earnings, cost, and other key factors likely to affect future financial performance. Item 20 shows if the number of franchises is increasing or decreasing. Item 20 also contains contact information for current franchisees that you can use to contact franchisees as part of your due diligence. The combination of the FDD and traditional due diligence will offer great insight into the potential of a franchise under your ownership.
Franchises come with fees and royalties, which nobody likes, but they are fair value with the right franchise. One benefit of the franchise model is scalability in a way a privately held company doesn’t. You can operate single or multiple franchises with the same systems and procedures. You can now have an opportunity to increase your gross sales and profitability to the extent you want to grow your franchise and buy additional franchises until you reach your goal.
There are ample low-cost franchise resales, but you must dig a bit to find them. We researched and found solid franchises that will all eventually end up in the franchise-resale market. You will have to contact the owner directly to see if there is any interest in selling. Franchise resales take some work to find, but they are hard to beat when you do. Franchises don’t put a for sale sign in the front yard like a house. They prefer a discrete transaction where the general public doesn’t even know that it was ever for sale. It’s terrible for the reputation and viability of the franchise if franchisees are going out of business or being sold at a high rate. This would not reflect well on the health of the franchise. Also see top franchise rankings by Entrepreneur Magazine.
The best way to find a franchise resale is to approach owners independently with the utmost discretion. Sources like LinkedIn are a great place to reach out to owners who have owned the franchise for a long time. They are more likely to welcome an offer to buy their business to retire or pursue other interests. You can also mail or hand-deliver a private note to an owner expressing your desire to explore the possibility of a purchase. Employees, customers, or vendors should never see or hear your communications about your intentions. This will kill the deal immediately if it isn’t kept secret. Include your professional experience that demonstrates you can operate the business. Also, explain how you will fund the acquisition. Another deal killer is asking the owner to finance any part of your purchase before establishing a professional relationship. You should check if the franchise is SBA approved so you can secure financing. The ties should include mutual respect and some social capital. Buying a Franchise is hard work if done correctly, but buying the most profitable franchises is necessary. Contact us should you have any questions or need help purchasing a franchise.
Business Sale Escrow Companies are used to protect the financial interest of people when buying or selling a business. An escrow account is where a trusted third party holds funds until all the requirements of both buyer and seller are satisfied. Bizproiftpro can act as an escrow agent or you can use www.escrow.com to protect both the buyer and seller during the due diligence process. If all conditions are not met the funds in escrow are returned to the buyer.
1. Buyer and Seller agree to terms – Buyer begins a transaction by making an offer and depositing earnest money into escrow.
2. Buyer puts money in escrow – The Buyer submits an earnest deposit to escrow.com. The Seller is notified that funds have been secured ‘In Escrow.
3. Seller allows the buyer to begin due diligence – The buyer begins due diligence upon receipt of a “refundable earnest deposit.”
4. Buyer completes due diligence – The Buyer has the option to accept or reject the purchase based on findings.
5. Escrow.com pays the Seller – Escrow.com releases funds to the Seller from the escrow account if the buyer is satisfied with their findings from the due diligence phase. The balance of any funds due is made by wire transfer to the seller. A transaction is completed – safely and securely!
The may agreement include but not limited to:
• Execution of Bill of Sale by Seller and Buyer
• Execution of a Promissory Note by the buyer is seller financing is involved
• Transfer of all assets described in Bill of Sale
• Communication of all account IDs, passwords, phone numbers, intellectual properties, website, social media accounts, and related properties associated with the normal operation of the business being transferred.
The buyer may terminate the Purchase and Sale for any reason in the due diligence phase at their sole discretion. The Earnest deposit will be returned to the buyer on demand. The escrow fee is to be paid by the buyer and costs $250.00 on average for the transfer of a business but may vary. Use the fee calculator to determine the exact cost at www.escrow.com/fee-calculator. Contact us if you have any questions about buying or selling a business using escrow services. Call us at 800-905-1213 or click below to schedule a call.
800-905-1213
Are you evaluating your entrepreneurial opportunities? If you are reading this message, I suspect the answer may be “YES!” You are contemplating buying or selling a company or a big business decision. Maybe you’re contemplating starting a new business. These decisions are really big ideas to contemplate and ultimately will require a major life-altering DECISION on your part, a decision that may bring a whole slew of mixed emotions from excitement, uncertainty, fear, worry, and doubt. If you are contemplating moving forward with exploring these options around buying a business, selling a business, or any business decision, I urge you to keep reading. You may feel like you have been stalling out on the serious pursuit of these life-changing decisions. If you want to take charge of your life, make quantum leaps in your success, and finally see the results you are longing for, I want to introduce you to someone who can help guide you to making the right move.
• You wake up each morning, and you don’t have that drive and enthusiasm to get out of bed…
• You look at areas of your life and are dissatisfied but don’t know how to change them…
• You know that you were meant for something different, something greater…
• You have a big idea that you have wanted to pursue, but you have no idea how to make it happen…
• You know what you want to be, do and have in your life but doubt you can get there…
• You have a burning desire to make a difference in this world and to be of service in some way…
• You are afraid or apprehensive about stepping up, playing it big, giving it your all, making that leap…
I suspect if you are still reading, one or more of the statements above probably resonates with you. If you find it difficult to move forward with a decision to buy or sell a company or make a big business decision, we can help you get unstuck. We have a program that is a time-tested blueprint that allows you to access the untapped potential. Our experience with process improvement, systems analysis, technical and professional training, and organizational leadership brings a diverse skill set that effectively understands business challenges and opportunities.
If you want serious results in your life, if you desire to take that leap and buy that dream business or sell your company to pursue a new path, you need to ignite the change where your results are created in the first place. You need to change your mind! I invite you to schedule a Free Discovery Call and explore how you can get the results that you truly desire as you navigate the business buying or selling decision. Our services will set you up for phenomenal success and quantum leaps in your results. Click here for a free consultation.
This article will show you the steps to take when selling a business and keeping it secret. It is critical that competitors, employees, and vendors don’t find out about the sale of your company until the transaction has been completed. Selling a small business can be very difficult and costly if the proper steps aren’t followed. Nothing good is gained by letting the general public know that your business is for sale. Your customers may stop doing business with you if they believe the company is for sale. Employees may quit because their employment may be at risk with a new owner. Vendors may modify payment terms or require cash for goods and services. The value of your business can be reduced if word gets out that you’re selling a business.
1) Obtain a free e-mail address from Google, Yahoo, MSN or another free mail service. Use this alias for all advertising
2) Do not use the business phone number. You can get a free local number from Google or pay a few bucks for services like www.godaddy.com, www.ringcentral.com, and www.ringboost.com; Or search the web for a provider of your choice.
3) Obtain a post office box in another town instead of the business address. You must be careful with giving out geographical information because you risk people discovering your business is for sale. Avoid being too specific about the business location. You may need to use your county instead of the city if your business is in a small town.
4) Use someone else’s voice on voicemail greetings instead of your voice. A competitor, employee or vendor may call and recognize your voice.
Selling a business has never been easy. Use these tips to maintain confidentiality so you get what your business is really worth.
6) Require a confidentiality agreement be signed by anyone who wishes to learn more about your business
It can be difficult selling a business while maintaining confidentiality, but it is necessary to get the money you deserve from the sale of your business. You may also consider using companies that sell businesses. They are usually listed as business brokers or business intermediaries. They can be helpful but they do charge fees for their services that can go as high as 12% and require a retainer of several thousands of dollars to list your business.
Small business profit was the reason Seven Pillars to Profit was written. People are willing to launch or manage a business offering a product or service while taking risks to make a profit. Entrepreneurs have the willingness to have big ideas and daring to execute them. Entrepreneurs don’t see the world as it is but as it can be. If this describes you or your future self, this is for you. My name is Marv White, and I am the author of Seven Pillars to Profit: Your Blueprint for Small Business Success. This is a personal journey on how I got my business to deliver the wealth, lifestyle, and freedom we all deserve. Countless entrepreneurs are working.
tough and sacrificing everything to make their businesses provide the money, lifestyle, and freedom they want. This is the point of starting a business in the first place. We are taught at a young age that hard work will be rewarded. If we work harder, we can be successful, but it isn’t true. Busting your hump and sacrificing family time, personal time, and finances can lead to little or nothing in return or even debt. Working harder is not what makes you successful. Success is achieved when you start working on the right things and stop working hard on the wrong things. My book Seven Pillars to Profit is the blueprint for working on the right things. Make your business more successful than you ever dreamed, not by working hard but by working on the right things. My blueprint is not about working hard; that is not what makes a success. Working on the right things will get you to the tipping point. The tipping point is when things become so comfortable that what once was work is abundant opportunity. Some might say that legendary entrepreneur Elon Musk works hard with 13 billion in net worth and is the founder of Tesla, Paypal, and SpaceX. He has abundant opportunities and has not worked for a long time.
This tipping point is what Michael Gerber describes in his book E-Myth about working on your business and not in it. You no longer worry about your company because you have implemented systems so your business can grow without any day-to-day input. You don’t have to grind and fight for every percentage of growth because your business is built to do this automatically. Your business becomes a machine that delivers the financial rewards, freedom, and lifestyle you deserve. This does not take genius and is not hard to do. It takes discipline to work on the right things.
The tipping point is a shift from analog to digital thinking. Analog thinking is where you look for a faster horse that can gallop at 30 miles per hour versus 25 miles per hour. Digital thinking goes from struggling to get a horse to 30 mph to achieving 180 mph in an electric car. Analog is uncertain, with many variable results, while digital is precise with little variability. Digital thinking doesn’t require six times the energy to go from 30 to 180 miles per hour. It takes a fraction of the energy of analog thinking. Many use a sledgehammer for tasks when they should use a smartphone. Seven Pillars to Profit was written because I was stuck in the analog world. Being hell-bent on outworking everyone and growing the business through sheer will. Always being the first to arrive at the office and the last to leave. Pushing past exhaustion and wearing it as a badge of honor. It made me feel like I was earning my bones as an entrepreneur and worthy of success, but I was wrong!
My business defined me, and it was one of the most essential things in my life until my mother became ill. Now, the business meant little as I packed an overnight bag one Saturday and boarded a plane for Florida to be with my mom. I stopped caring and walked away from the business I had built from scratch with blood, sweat, and tears. At the time, the fledgling business had about a dozen employees and a staff that consisted of a bookkeeper and a supervisor. I left my business in the hands of my team without even telling them I was leaving. I didn’t talk to them for days and wasn’t thinking; I was acting on emotion. On an unconscious level, the belief in the back of my head was that the business would fall apart, but I felt that after the dust settled, I could rebuild. After a couple of weeks, I told my staff I would be gone indefinitely because I would be helping take care of my mom. Still, I was also in an emotional free fall and could not do anything else, never mind running a business.
This was my turning point. I was the guy wishing for a faster horse. My days used to be filled with angry customers, no-show employees, payroll, fighting the landlord, collections, begging for new business, etc. Does any of this sound familiar? I spend much of my time officiating daily squabbles between my supervisor, bookkeeper, and employees over petty matters. These would be the people who would run the business. Indeed, this was a train wreck, but I didn’t care and had no choice. Over the next several weeks, my staff would send me accounts payable and accounts receivable reports from QuickBooks and bank statements. I was shocked to learn that sales did not fall off a cliff and bank balances were climbing. As time passed and the business was doing well without me, it became evident that most of what I did didn’t make any difference. I was swinging a sledgehammer in my business and was only catching air. I was humbled that the only things that seemed to get results were what I did in the business, not the “work” I did. It was the 80/20 rule in full effect. 80% or more of the work I was doing in the business was a waste of time, although physically and mentally exhausting. I went from working hard in my business to doing nothing! And the company was doing as well or better than I was there.
This experience proved that working hard is not the key ingredient to getting the money, lifestyle, and freedom you deserve from your business. The key to a successful company is working on the right stuff. It’s about transforming your workflows to digital instead of analog. Get Seven Pillars to Profit and the blueprint to take your business success to the next level today. Take the leap from horses to electric cars.
“Marvin White demystifies the process of running a small business with three unique processes and seven specific pillars that, when applied, will take your business to the next level and reignite your passion for what you do! This book will change the way you approach business FOREVER!”
“Marvin White has the experience to help any Business Owner succeed; his new book dramatically and effectively shares this experience concisely and effectively. Any business owner who wants his navigation in the rough seas of entrepreneurship to happen with more ease and less struggle would profit greatly by reading Marvin’s book and engaging its principles!”
“I believe the Seven Pillars to Profit concept is a refreshing way to look at a business. It allows entrepreneurs and business owners to apply a systematic approach to improve their businesses and gain more profit.”
“Marv’s Seven Pillar Profit Model will put you on the high road to entrepreneur success. Incorporate these Seven Pillars to impact your business and achieve your destiny positively.”
Marv White is the Managing Partner at Bizprofitpro and the author of Seven Pillars to Profit: A Blueprint for Small Business Success. He holds a BS in Chemical Engineering with a minor in Economics. He has owned and advised numerous businesses, including start-ups, sole proprietorships, and large enterprises. He firmly believes that entrepreneurs and business leaders are special people who see the world as it can be and not as it is. Marv White has published over 150 articles about small businesses and related topics, including business exit strategies, growth by acquisition, and other issues.
E-Commerce
Restaurants
Convenience Stores
Coffee Shops
Bars
Services Businesses
Auto Repair, Service & Parts
Liquor Stores
Marketing Businesses
Health & Fitness Clubs
Top ten businesses for sale according to businessesforsale.com analyzes the hits on their site by business type. These businesses represent the most popular enterprises in the United States that can be found in virtually every city and state. The key to buying a business for sale by owner is to check the major business for sale websites to see what is available and what type of company you want to own.
Websites like bizbuysell.com, businesssforsale.com, diybizseller.com, bizquest.com are sources to find businesses for sale. Alerts can be set up that will automatically notify you when companies that meet your criteria are listed. This is a great time saver and allows for a systematic search of businesses of interest.
Do proper due diligence on any business you are considering buying. Due diligence is part of the buying process that allows the buyer to examine the financials of the company in addition to a comprehensive inspection of the operation. Due diligence is a chance to find any misrepresentations or unknows before you purchase a business. You may consider professional help when going through this process. Contact us for a free consultation should you have any questions about the process.
Best Way To Advertise Your Business For Sale
The best way to advertise your business for sale is to give your business maximum exposure. You will need to reach the maximum amount of potential buyers to create a market for your company. Confidentiality must be maintained while getting maximum exposure. Below is an example of how to advertise your business for sale while keeping it secret. You can use free programs like crello.com or canva.com to quickly create an advertisement for your business.
Notice the advertisement does not mention address, company name or identifying information that would make the sale of the business public. Harm can be done to the business is new of the sale becomes public. Customers, vendors, and employee relationships may be harmed if the information gets out before a buyer is found. You will need to have all interested parties sign a non-disclosure agreement before they learn details about the business. Here is a list of the most popular websites to sell your business:
www.Bizbuysell
www.Bizquest
www.BusinessBroker.net
www.bizseller.com
www.Us.businessesforsale.com
www.Loop.net
www.Businessmart.com
www.Bizben.com
www.Dealstream.com
www.Smergers.com
www.GlobalBX.com
Social media is another place you can advertise your business for sale. LinkedIn, Twitter, Facebook and Pinterest are the recommended social media sites to find a buyer for your company. Selling a business is a complex process that requires advertising to a targeted pool of buyers. Ads need to be written with discretion so confidentiality is maintained. You don’t want anyone to know your company is for sale until after the transaction is complete. Click here to contact us with any questions regarding the sale of your business.
We can help you get the best small business loan. Bizprofitpro has lenders that offer a range of solutions from the most proven sources with the best terms. Every business, at some point, will require capital to start or buy an existing business. You might also need money to continue operations and fund growth. We have several lenders with different products for whatever your circumstance may be. Get a customized funding solution to achieve your financing goals. We do the work to find you the money at the best terms. The following products have proven the highest approval rates with a fast loan process.
* Business Credit Card Program
* Unsecured lines of credit for individuals with a score of 680 or better
* Conventional bank loans
* SBA Loan
* Short-term small business loans
* Equipment Leases
Qualifying for the best loan requires a credit score above 680 on all three credit bureaus. Selecting the right loan product will depend on your circumstance. Every situation has a loan product, even if your credit is not perfect. The most important factor in getting a small business loan is the ability to repay the loan. The loan should only be for purchasing an asset that will create a return that can service the debt. Click the link below and fill out the form, and we will work with our lenders to get the money you need.
People ask “how to sell my company” all the time. Selling a business is one of the most complex transactions you are likely ever to be involved in. Unlike a publicly-traded company that is run for the benefit of shareholders, a privately held small business is run entirely for the benefit of its owner. The business is operated to maximize the lifestyle and the perks for its owner. This causes there to be many discretionary expenses that may be considered perks or items that contribute more to the lifestyle of the owner than the need of the business.
Small business owners make decisions to legally reduce the tax burden by expensing as much as possible through their business. This may come in the form of a luxury car, boat, house, business trip, or having a spouse on the payroll. These are considered “discretionary expenses” that are added back to income because the new owner won’t need these discretionary expenses to operate the business. Discretionary expenses and perks of small business owners make it difficult or nearly impossible to determine the exact cash flow for a new owner. Many deals fall apart because there is no way to make an accurate forecast of future earnings.
“Opportunities don’t happen. You create them.” –Chris Grosser
1. Making the Decision
Making the decision to sell a business is the most important step in the process. Many owners identity is attached to being a business owner. Friends, family, and the community look at business owners in a certain light which may be difficult to lose after the business is sold. There is also a financial consideration and how the sale of the business will affect future plans.
2. Optimize the Value of the Enterprise
Prospective buyers or a new owner would be willing to pay more for a business for these reasons:
a) Generates a lot of income
b) Income is steady every single month
c) Business has systems in place and not dependent on the owner
d) Business has a history of Growth
By improving the above-mentioned items, your business will become more desirable and sell for the most money. Don’t worry if your business is not perfect, no business is. People expect things to be wrong with any business and they come in with the expectation that they will use their ideas to fix it after they buy.
3. Decide whether to use legal professionals
There is a cost associated with using professionals but selling a business alone may put you at great of future liability or other complications. At a minimum, you will need an attorney to draft a Purchase and Sale Agreement that properly transfers the business and all of its assets to the new owner and eliminates any and all future liabilities. Additionally, you will want to consult with an accountant to best determine how to structure the financial part of the transaction and any tax liabilities you need to be aware of.
4. Determine the Value of the Business
There are countless numbers of valuation models that can be used to calculate the value of a business. The comparable sales method compares similar transactions and uses the data to determine a price. The debt capacity method is based on the amount a bank will loan for the acquisition of the business. The cost to replace method calculates the investment to replace equipment, furniture, and fixture. There are also rules of thumb that take the earnings of the company and multiples by a certain multiple depending on the industry. It’s not uncommon for there to be a wildly different valuation calculated by a buyer and seller. The buyer is usually 20% to 40% less than the sales price the seller estimates. Sellers should set the sales price reasonable or risk scaring buyers off and not even getting an offer.
5. Do the Actual Selling On Your Own or Use a Broker
Ensure that you work with reputable business brokers or business intermediaries. Business brokers and business intermediaries are experienced at pricing your business to sell at the maximum price. They also have expertise in confidentially marketing your business to the largest audience. The process of selling a business can be very complicated and time-consuming. While there is a fee associated with using a business broker, it is almost always money well spent. Most businesses never sell because it’s so difficult for a business owner to operate their business and have the time to market professionally and sell their business.
Selling a business is hard work and takes time. Delegate the appropriate tasks to professionals so you give yourself the best chance to have the most profitable transaction. Most deals fall apart a few times before actually getting closed. It is critical to allow your professionals to do their jobs and move the transaction along for your maximum benefit. You can learn more about the process of selling a business by clicking here.
800-905-1213
The most profitable franchise to buy can be found by evaluating the Franchise Disclosure Document, Bankability (SBA Approved Financing), Proven Business Model, Training, and Scalability of the franchise being evaluated. Rank a franchise among their peers and only consider the best of the best. Conduct interviews with key franchise executives to determine to confirm your research findings. Also, interview franchisees of “going” franchises to get real-world experiences and look for red flags. Use resources like The Business Reference Guide by Tom West of Business Brokerage Press, considered the most authoritative source of industry-specific business information.
Franchise Disclosure Document (FDD)
The Franchise Disclosure Document is a legal document that is available to the prospective buyer of a franchise in the pre-sale disclosure process. The FDD contains all of the information that state and federal franchise regulators consider relevant to a franchise investment, and it is the holy grail in researching a franchise. Information in the FDD ranges from the franchisor’s history and the business experience of its executives to the fees that the company charges, to the requirements for purchasing inventory, to the form of the franchise agreement, to three years of the franchisor’s financial statements. We pay special attention to Item 19 as it is a critical part of every franchise disclosure document. It provides a clear avenue for delivering performance information and must meet or exceed performance by its peers. Item 20 also gets extra scrutiny in our rankings to get the number of franchises and if they increase or decrease. Item 20 also contains contact information for current franchisees that we use to contact franchisees as part of our research.
Bankability (SBA Approved Financing)
For a franchise to make our Top 10 Franchise List, the franchise must qualify for the SBA Express Loan Program, which offers streamlined and expedited loan procedures for borrowers. The SBA Express Loan gives small business borrowers an accelerated turnaround time for SBA review; a response to an application will be given within 24 hours.
Proven Business Model
We use Item #20 of the Franchise Disclosure Document, The BRG Business Reference Guide, and other sources to validate the business model for growth and sustainability. Growth has to exceed the growth of the economy as measured by Gross Domestic Product (GDP)
Training
Strong training and support should be included in your consideration. Use franchisees’ input to review systems that support the owners. Review what the franchises offer in software, computer systems, group coaching, classroom training, mentorships, etc., and determine if they meet your needs.
Scalability
Verify that the Business Model has the potential to be scalable. We define scalability as the franchise’s ability to grow in profitability so that the owner can remove themselves from day-to-day operations. After the business has achieved scale, the owner can use the business to support their lifestyle or choose to grow to the next level.
Qualified franchisees can get SBA Express Loans in less than 24 hours. Investing in a franchise business is one of the safest ways to go if you’re thinking of buying a small business. A franchise has the business model, training, and systems to give you the best chance for success. You should also consider franchise resales because they already have customers and financial history.
The Small Business Administration (SBA) approved the best franchises to buy. Not only are they easier to finance, but they have to meet a minimum level of financial performance. Investing in a franchise business is a way to reduce the risk of becoming an entrepreneur. A franchise has a proven business model, training, and systems to give you the best chance for success. We have compiled a list of franchises with a total investment of less than $750,000 while reporting the highest financial success compared to its peers. They must also be approved for financing with an SBA or a traditional bank loan.
An SBA Express Loan can get you up to $150,000 in as little as 30 days. These are the best startup business loans available. 10-year terms, NO pre-payment penalty, No pledge of personal assets as collateral, Interest Prime + the prevailing interest rate.
Here is a list of franchises with a strong financial history that scored the highest in our review. We scored each franchise for Bankability (SBA Approved Financing), Viable Business Model, Training, Scalability, and Growth to be considered for our list. We then ranked the franchises among their peers and picked the best of the best. While every effort has been made to deliver accurate information, it is the buyer’s responsibility to conduct their due diligence. Bizprofitpro, LLC takes no responsibility for any action you may take regarding any information contained in our review.
Above Grade Level in Home Tutoring
Above Grade Level is a hot concept in an incredible growth market – education. We have the most comprehensive teaching materials of any tutoring provider! Twenty-five years in the making, our teaching materials have helped tens of thousands of students achieve academic success.
Advanta Clean
AdvantaClean Environmental is a dynamic, rapidly expanding concept that services the emerging and ever-growing indoor air quality market. This powerful franchise opportunity is built upon a multi-revenue stream business model, paperless operating platform, National Customer Care Center, and our franchisees’ savvy business skills.
Budget Blinds was founded on providing high-quality window coverings to consumers in a highly convenient way and at prices that fit almost every budget. Today, the Budget Blinds franchise system still strives to provide consumers with superior products through convenient, complimentary in-home consultations that include measuring and professional installation. Every year since 1996, Budget Blinds has been voted the #1 window coverings franchise by Entrepreneur Magazine (Entrepreneur, 2015).
CertaPro is the largest painting company in North America, with system-wide sales approaching $250 million. There are over 360 locations in the US and Canada, and the Pennsylvania-based company plans to have 550 locations by the end of 2016. The painting service industry is large, at over $40 billion annually. CertaPro is unique in the service category because its owners drive revenue from residential (B2C) and commercial (B2B) clients. Business owners scale by adding salespeople for residential and commercial sales, and most owners use subcontractors to produce the work – keeping overhead low.
The Closets by Design business model focuses on all aspects of the business. Each franchise designs sells, manufactures, and installs the complete portfolio of products, including closets, offices, garages, pantries, wall units, and beds. It begins with a proven and effective lead generation strategy. This, coupled with a disciplined and client-oriented sales model and metric-driven manufacturing and installation efficiencies, provide the tools for the franchise to manage and grow their business effectively. Each location has a factory and showroom located in a light-manufacturing industrial park. The average annual revenue of a Closets By Design Franchise in 2013 was 2.9 million dollars.
CMIT is a leading provider of IT services for small and mid-sized businesses (SMB) that employ 5 to 99 employees – large enough to need IT services but not big enough to warrant in-house IT departments. CMIT Solutions operates on a managed services model that offers specialized outsourced IT services at affordable monthly rates, with contracts lasting one to three years. Our subscription model allows small business owners to budget IT expenses effectively and saves them money in the long run. At CMIT, we focus on business results – performance, productivity, and profit for our clients we know that technology is a tool to accomplish those goals, and we ensure that our clients get the most out of their investment in technology.
Services offered to the business market include remote monitoring and repair, Helpdesk support, troubleshooting, networking, data backup, data recovery, website design, internet security and firewalls, software training, updates/upgrades, system administration, database design, and one-on-one mentoring. The new franchisee can secure a protected territory or become an area developer and grow to multiple locations in a larger territory. CMIT Solutions is looking for new franchisees focused on marketing and growing the business instead of working in it. The franchisor trains the franchise to build a sales and service team. Franchisor provides help desk and monitoring service, a low number of employees.
SBA’s Express programs offer streamlined and expedited loan procedures for buying an SBA-approved business. SBA Express gives small business borrowers an accelerated turnaround time for SBA review; a response to an application will be given within 24 hours. The franchises we have listed are approved for an SBA Express Loan. Our franchise list includes the cheapest franchise to own while being the most profitable franchises. Investing in a franchise business is one of the safest ways to go if you’re buying a small business.
REINVENT YOURSELF AFTER 50 WITH PURPOSE
To reinvent yourself after 50 is overwhelming and hard. By the time this you have reached many milestones and are likely to have a great deal of life experience and don’t want to go backward. Most people think that life is a linear progression and it’s not. Life is almost always full of ups and downs but we would want to think of it as being a process that is linear. Life is unpredictable and full of surprises which should be embraced for the new possibilities it presents.
Reinvention is really about change. There is a discipline described as change management that is usually applied to organizations but it holds equally true for individuals. Change Management is the discipline that guides how we prepare, equip, and support the successful adaptation of change for a successful outcome. It is never too late to become the person you were meant to be.
“Most people don’t grow up. Most people age. They find parking spaces, honor their credit cards, get married, have children, and call that maturity. What that is, is aging.”
by Mario Puig, MD
People often ask “how to reinvent yourself after 50” and as an over 50 myself I realized how difficult it can be. I have more friends than I can count that were downsized many years ago out of corporate American and have never found their way back to full employment or comparable compensation. I know people that made more out of college than they are making now. My personal experience and what is being written is depressing. I was just reading a blog and was blown away by what a lady that posted ” I’m 53 and still have an 11 and 12-year-old at home. Have a college education and can’t even get an interview.” This story repeated over and over again across America. One of my neighbors worked for a large insurance company for 18 years before being let go. After 3 years, he was only able to get a temp job that led to 6 months of employment before ending. Now he can be seen most mornings walking the dog and performing yard work during what most consider working hours. Younger people may be younger and hungrier than you and willing to accept lower pay but they lack the experience that decades of life experience brings. It may be time to create an opportunity that is best suited for your skills and experience. Working for yourself or owning a business is the only guarantee to be the architect of your future. You can join the ranks of entrepreneurs and enjoy the lifestyle and economic benefits that come with it.
Starting a business is not easy and can take a very long time before you are profitable. The better safer option is to buy an existing business that can be profitable on day one of ownership. Learn how to buy a profitable business with little or no money down. You just need to know and follow the necessary steps. Reserve a spot at our next Business Buying Workshop where you will get the steps to business ownership. Entrepreneurship is not for everyone. Take a free Entrepreneur Quiz that asks a few questions that will give you insight on your compatibility for entrepreneurship. We will cover the topics below and much more:
Topics Covered
How to find the right business
Finding the right things wrong in a business
How to quickly know what any business is worth
Understanding the numbers – balance sheet, P&L, and cash flow statement
What you need to know about adjusted cash flow
How to determine value if the financial statements suck or inaccurate
Pros and Cons of an asset sale versus a stock sale
How to bankruptcy proof any business
Maximizing profits in your business
What it takes to be an entrepreneur
Question & Answer
