|
|
|
Blogs and RSS Boost Your Online Business, Rankings, Traffic and Sales.
Blogs and RSS Boost Your Online Business, Rankings, Traffic and Sales. Blogs for Advertising? Yes! Blogs and RSS boost your online business, rankings, traffic and sales. We all sometimes ignore the trends in advertising on the internet until the...
LIGHTS, CAMERA, ACTION FILES! Organizing Your Office By Task
Lights, Camera, ACTION FILES! Organizing Your Office By Task Your desk is the most important part of your office. It is a work space, however many people make the mistake of using the desk as a storage space! In order for you to be focused on the...
STRIKING A BALANCE. Take Time Off To Be More Effective
STRIKING A BALANCE Take Time Off To Be More Effective What do an entrepreneur, a healthy checking account, your diet and a tightrope walker have in common? They all need balance to be most effective! Balance is a word that you hear a lot about,...
Tactical Hints for Succession Planning
Tactical Hints for Succession Planning The sooner the succession planning process is started the better, and you will have more options. Another advantage: options, such as buying life insurance to fund the stock ownership transfer, tend to be less...
What is Your Motivation - Goal Setting for Your Home Business
If you are a home based business owner probably the largest obstacle you must overcome is finding motivation. You work at home and need to get online to work on your website, marketing, research, etc. But there are many other things going on that...
|
|
| |
|
|
|
|
|
|
Getting Into Business: Don’t Start It! Buy It!!
Many of us have felt the entrepreneurial pull of running our own business at one time or another. The allure of being your own boss can be really strong, and it’s no wonder. Small business ownership and its operation has proven to be one of the most financially rewarding pursuits that you can follow.
But, it can also be very frightening for those just starting out! We’ve all heard about the high mortality rates for new business ownership; 50% won’t make it through the first three years. There are many reasons for this. Wouldn’t it be great if the potential problems could be eliminated for you as a new business operator? Well, they can!
Buy an existing profitable business instead of trying to start one from scratch! There are three key advantages to this:
Existing successful businesses have a proven track record of profits that will most likely continue long after the business sale. Now you get to apply your new ideas, expertise, and renewed energy to take the business to even higher profitability.
You’ll have established customers for immediate cash flow. No suffering through a long start-up period where you struggle to attract customers to your business. Use these customers as building blocks for future growth.
Typically, you’ll be able to use a business seller’s financing of a large portion of the purchase price to maximize your buying potential.
There’s no question that the success rate for new business owners that have purchased an existing business is much higher than for those who start a newly formed business. This is because an existing profitable business has already proven that it’s successful.
However, the actual process of purchasing an operating business can be a challenging undertaking and you’ll want to be fully prepared. You need to gather as much information as possible which will help you to; find a suitable business for sale, value the business, arrange financing, conduct negotiations, and finally, to actually close the deal and transfer ownership.
The first step in this process is to find out if you’re truly fully motivated to operate a small business (whether you start it or buy it). Ask yourself:
Do I know what kind of business you want to buy?
Am I technically qualified and experienced enough to run the business?
Am I prepared to “eat, sleep, and drink” the business 24-hours a day?
Next, you need to determine what your key reason is for buying and operating a business:
Buying a job to earn a living or making an investment.
Buying prestige (many business owners are respected community leaders).
Seeking self-fulfillment and control of your own destiny.
There are many sources of businesses for sale and quite a few businesses can be relocated. The Internet is one good source but you should start with the business brokers who serve your area. You will find them in the phone book yellow pages.
Now that you know what your motivations are for buying a business and where to find a good company for sale, you’ll need to have some idea about how to apply a realistic value to the company. This isn’t easy! Remember, the seller will want as much as they can get, and you’ll want to pay
as little as possible. The key is to strike a fair deal.
There are many other issues associated with valuing a business which are beyond the scope of this article and a prospective buyer is advised to read as much information on this topic as possible. Before you actually proceed with a purchase you should seek the advice and guidance of competent professionals.
Next, you’ll need to start thinking about how you’ll pay for this business. This also becomes an integral part of the negotiation process to arrive at a selling price. There are actually many sources of financing available to the purchaser of a business and frequently the buyer will use more than one of these sources:
Buyer's Personal Capital
Business Seller Financing
U.S. Small Business Administration (SBA)
Commercial Bank Loan
In almost all sales of small businesses, there is some amount of seller financing. This amount can range from 50% to 75% of the total purchase price. In most situations, a seller wants to receive as much money up-front as they can, while a buyer will want to pay out as little as possible.
Once you’ve completed negotiating the selling price for the business, the next step is to finalize the sale, take possession of the business, and begin operations. Closing the deal is the hardest to accomplish, but usually the shortest part of buying a business. After all, the valuations, due diligence, and negotiations are complete and now it’s a matter of getting everything into writing.
The best situation for all parties is to follow an orderly process that will move things along in a business-like manner. The major elements of the purchase and sale process are:
Binder and Earnest Money Agreement
Purchase and Sale Agreement
Closing (at which actual title and ownership is conveyed)
The Closing date and place are set to everyone’s convenience and all of the pre-closing tasks are assigned to the various parties for completion. At the Closing, the actual legal instruments of transfer are signed, money and/or promissory notes are exchanged, and the buyer becomes the new owner of the business.
Well, that’s a snapshot of what it takes to buy an existing business. As involved as it may seem, it’s far less trouble than starting a new business, faster, and certainly less risky. If you have an entrepreneurial mind-set and would like to consider getting into business for yourself, even if it’s only a home-based business, I strongly urge you to consider buying an existing profitable business. There’s tens of thousands of them out there right now just looking for a new owner.
More articles like this can be found at: http://www.businessbookpress.com/articles/business_articles.htm
About the Author
Mr. Russell L. Brown has been a business broker and consultant for over 25 years and has been directly or indirectly involved in all aspects of the buying, selling, brokering, and valuing of hundreds of existing companies. He is widely sought as an expert consultant and lecturer on the topic of buying, selling, and valuing businesses. More information about Mr. Brown and the books and software he has authored may be found at http://www.BusinessBookPress.com
|
|
|
|
|
| Motivation - Wikipedia, the free encyclopedia |
| Article giving an overview of the concept. Includes history, information on human psychological drives, and applications in business and education. |
| en.wikipedia.org |
|
| Motivation 123. Motivation Techniques & Tips for Your Happiness ... |
| Free Motivation Kit, techniques, tips, and ideas to help you achieve greater happiness and success. |
| www.motivation123.com |
|
| Motivation - the international disability charity Motivation |
| Motivation and other international organisations convene in Bangalore this ... Motivation is an international disability and development agency working in ... |
| www.motivation.org.uk |
|
| Motivation |
| Goal Setting is extremely important to motivation and success. So what motivates you? Why are you in college? If you are in college because that's what your ... |
| www.d.umn.edu |
|
| Employee motivation. Motivation in the workplace- theory and practice |
| Employee motivation in the workplace article. This article focus on aspects of employee motivation, theory and practice as applied to in the workplace and ... |
| www.accel-team.com |
|
| Motivation |
| Motivation Notecards pad. 6 notecards with envelopes pad ... Motivation Desktopper pad. Black brushed-aluminum frame with glass. (5"x7") pad ... |
| despair.com |
|
| Motivation Point. Motivation Advice for Your Achievement and Success |
| Motivation techniques and advice to help you achieve greater personal success in your life. |
| getmotivation.com |
|
| The Motivation Tool Chest |
| Motivation tips on self-development, workplace, leadership, at-risk youth, education. Example: People who have a vision control their destiny and lifestyle. |
| www.motivation-tools.com |
|
| Seven Rules of Motivation |
| Set a major goal, but follow a path. The path has mini goals that goes in many directions. When you learn to succeed at mini goals, you will be motivated to ... |
| www.motivation-tools.com |
|
| Motivation |
| MOTIVATION CHECKLIST. The following checklist may prove helpful in getting at the ... If you want to improve your motivation you may want to choose a ... |
| www.ucc.vt.edu |
|
| GENERAL PRINCIPLES OF MOTIVATION |
| Basic principles of motivation exist that are applicable to learning in any ... In a general learning situation, self-motivation without rewards will not ... |
| honolulu.hawaii.edu |
|
| TIP: Concepts |
| Weiner (1990) points out that behavioral theories tended to focus on extrinsic motivation (i.e., rewards) while cognitive theories deal with intrinsic ... |
| tip.psychology.org |
|
| Motivational Quotes, Motivational Quotations, motivation quotes ... |
| Motivational Quotes, Motivational Quotations, motivation quotes, inspirational quotations from Motivating Moments. Updated 2 times a week, ... |
| www.motivateus.com |
|
| Motivation - Atom Wiki |
| Motivation. Why are you doing this? RSS is [WWW] over five years old. It was designed for news sites, a way for them to list the stories they had. ... |
| www.intertwingly.net |
|
| Motivation & Inspiration from The Daily Motivator® |
| A brief, daily message of motivation and personal development, with an archive of more than 2000 previous messages. A positive approach to successful ... |
| greatday.com |
|
| Pages tagged with "motivation" on del.icio.us |
| by blowski to folksonomy marketing internet user generated content motivation theory business blog ... saved by 124 other people ... 3 mins ago ... |
| del.icio.us |
|
| Motivational and Inspirational Resources, Quotes, Short Stories ... |
| Free daily motivational & inspirational, quotes, short stories, messages, articles, thoughts, and poems designed to help you lead a happy and healthy life. |
| www.motivational-messages.com |
|
| Mental Help Net - Psychological Self-Tools - Online Self-Help Book ... |
| Methods For Changing Your Identity and Your Motivations ... There are two types of animal motivation: the motivation to approach something, ... |
| www.mentalhelp.net |
|
| Teambuilding Inc. Article - Team Motivation |
| Probably the first question to be answered in a discussion of motivation is ... Motivation in this case was lacking because the team’s purpose was not in ... |
| www.teambuildinginc.com |
|
| Learning Skills Program - Increasing Motivation |
| Motivation is a complex issue, with a number of causes and solutions -- many of which are of interest to university students, who usually know what they ... |
| www.coun.uvic.ca |
|
|