Best Business Tips and Strategies information channel:
We would like to thank the local libraries, schools, and universities for recommending students
to visit us when doing research on any of our information topics.
Are you not sure what Business to buy? Need to know what is a fair deal?
Martin Smith thought he was buying an established business with good credit and collectable accounts receivable. The day after settlement the surprises began.
Inventory could not be used because expiration dates had past. Money shown as receivable had already been collected. Vendors that were only willing to ship COD. Over $100,000 of real problems that should have been detected during the business purchase process popped up and almost shut Martin down.
Can you afford to be surprised? Of course not.
You have the power to not end up like Martin.
Owning your own business is part of the American Dream. Buying a business has many advantages over starting one from scratch if you know how. Be prepared and get all the benefits of buying an existing business.
Tangible benefits such as existing cash flow, existing customer base, existing systems, knowledgeable employees, and locations can be obtained cheaper by buying an existing business than starting from scratch.
1. Understand and Know What You do Well and Like
You must really look at the activities you like to do and find a business that allows you to do them. For instance some people want customers to come to them. A retail store may work well for them. On the other hand some owners would loose their minds staying in a store all day; perhaps something with outside sales will work for them.
Are you a people person, a thinker, a leader, or a salesperson? Do you like steady hours, flexibility etc. How much money do you have to purchase with? How much money must you make every week?
Remember the process of buying the business is not the same as running one. Do everything possible to make sure you buy one you will love running.
2. Make a Comprehensive Search for a Business
Make sure you know how to look for a business. Don't just go to one source but really check multiple reliable sources to find the business that is right for you.
Systematize your notes so you know what you looked at. Make sure you compare your strengths and weaknesses with the day-to-day tasks of running the business.
3. Understand and Value the Business Properly
Understand the basic financial techniques to value a business; it's cash flow and other assets. Know how to prepare a basic business plan in order to make projections into the future.
Understand how the business is getting its customers. Know how it delivers goods and services. Know the cash flow and how you will keep the current cash flow and then grow the cash flow.
4. Know how to structure and finance a business
Have a basic understanding of how the business valuation and related cash flow tie together. Make sure you know a number of possible ways to put a transaction together to overcome different risks.
Understand what may be financed by a conventional bank loan, a SBA loan or seller take-back. Understand how to take your outline deal and put it into a final enforceable contract.
5. Perform Due Diligence Thoroughly and Correctly
Know what to look for when investigating a company. Know how to tie accounting records into source documents. Understand inventory, equipment, vehicle titling and other problems. Understand what should occur at settlement. Make sure you are getting what you have agreed to pay for.
Recognize that the Broker almost always represents the Seller. For most small business purchases you, the buyer, will go through most of the process on your own. Make sure you know enough to get select the right business and negotiate a fair deal.
Gregory R. Caruso is an expert at helping business owners plan and execute the sale of their businesses. Greg is an inactive CPA, attorney, and business owner with 20 years experience. He can be reached at www.successfulexits.com.
Plan Your Success In Seven Ways
Many businesses lose money yearly because they don't think creatively about the future. They run their businesses doing what they think they should: dealing with customers, dealing with problems, ordering for their business, and paying their expenses.
After Hurricane Katrina - Seven Things You Can Do
If you are like me, you are living some distance from the devastation wrought by Katrina. If you are like me you not physically impacted and can watch the plight of others on television in the comfort of your home.
Seven Ways to Improve Your Results with Follow-up
What follows is a bold statement, but sometimes it takes a bold statement to get people's attention. One of the most important and yet overlooked skills in business today is follow-up.
How to Become an Expert in Your Niche Business
What is a niche business? A niche business is one that caters to the common needs and interests of a focused group of people. For instance, people who play golf forms a niche market and people who are golf instructors form an even tighter and smaller niche.
7 Steps Toward a Better Website
Creating a website is one thing, making it better is another. Matt shares 7 steps to help you gain a better website.
Home Furnishings in India : How to Find an Exporter, manufacturer or Supplier ? Beyond a Database.
Looking for a manufacturer or supplier of home furnishings in India ?Don't know where to begin? Want to find a source but at a loss for resources? Want to do business in India, but unsure what is the best way to go about it? This article attempts to answer some of these questions. Firstly, unless you have a link in India, you will find it a difficult task to sift through the information available on the Internet.
Top Ten Listening Skills for Speakers
Good Speakers need good listening skills to become Great Communicators. Speakers spend a lot of time developing speaking skills and often don't focus enough on the equally important communication skill of listening. As a Speaker trained in the art of listening I have put together the tips below.
Why Clarity Is Essential To Building Massive Momentum In Your Business
Clarity is an absolutely essential ingredient for you to achieve your full potential in business. Napoleon Hill, in his classic book Think & Grow Rich, said "Whatever the mind of man can conceive and believe, it can achieve.
10 Great E-Commerce Businesses You Can Start Now
If you've been thinking of starting a business on the web but you're not sure what type of business to start then this article is for you. You could be wasting valuable time trying to make your first move.
Top Ten Tips for Online Publishing Success
Use the checklist below to make sure your article, tip, or book excerpt will get published and make you a household name on the Internet. 1.
Wealth Building Scams
I have some good news and I have some bad news. First the good news.
Ten Reasons to Implement Choice Theory in Your Organization
What is Choice Theory (CT)? CT is a theory of the explanation of human behavior. CT has applicability to both a person's personal and professional life.
How To Make Money With Your Junk Mail
The term "junk mail" is a well-known term. To the common guy or gal on the street, "junk mail" to them is advertising flyers from the local grocery store and pizza shop that arrive in their mail every day.
10 Tips for Effective Proofreading
Proofreading may not be terribly fun, but it's one of the most important parts of writing. Have you ever read a web page or a document that had typos, grammatical errors, and punctuation mistakes? This reflects badly on you and your business, and you could easily lose a customer over a simple spelling mistake! Here are some tips for quick and effective proofreading:1.
Get Your Mailing Noticed - Seven Tips for Effective Direct Mail Pieces
When sending mail to clients and potential clients, make your mailing stand out from the stacks of "junk mail" they receive. Here are a few easy ways to get their attention.
Your Leadership Shopping List
'Tis the season to give. And finding the right gift to give the people on your team can be challenging.
Famous Business Strategies
Either simply a looker-on or a player in the world of business, you see millions piling into the accounts of world's most famous businessmen and naturally the question pops "How?", wondering what is the alchemy they've discovered? Yet, there is no magic here - it's mostly pure strategy. And what it takes to spot it and make it real.
Business Goals - The 10 Commandments
The Ten Commandments of Goal Setting While it's good to set goals and work them into a proper plan, the fact is many people succeed in business without setting any goals. Be careful not to set your goals too high.
Never Sell Again: Get Repeat Business and Avoid the Need to Prospect
If you're a business owner, you know that repeat business is critical to your success. It also makes your life much easier because you can count on ongoing business without having to continuously find new prospects and convince them to hire you.
7 Things You Can Do To Weather The Lows Of A Business Cycle
Hey, as hard as this may be for you to swallow, business online is no different than a business on Main Street in your home town or city. We have good times and we have slow times.
Akron City Directory
© 2012 - 2020 All Rights Reserved