Many mistakes that people make are predictable. To help you to avoid making them, FranNet has compiled a list of ten of the dumbest mistakes you can make when going into business. Remember these are mistakes others have made, so take advantage of our experience and save yourself from some potential problems!
• Don’t overextend financially when buying a franchise.
• Don’t start to look until you have an idea of what you’re looking for.
• Don’t assume that starting a business is easy!
• Don’t try to go it alone. Use Experts.
• Don’t forget about a business plan.
• Don’t pick a business because “there are so many of them, they must be good.”
• Don’t skip talking with the other franchisees.
• Don’t put it on your credit card.
• Don’t pick the business your dad (or spouse) likes best.
• Don’t fall in love with the product.
For a complimentary consultation:
Contact
Cecil Williams (cecil@bizbrokerflorida.com)
or call at 888-925-5055 ext.206. Visit my personal website to search
for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Tuesday, October 2, 2012
I want to retire in a few years. What do I need to do to prepare the business for sale?
I want to retire in a few years. What do I need to do to prepare the business for sale?
Question:
I want to retire in a few years. What do I need to do to prepare the business for sale?
Answer:
Many owners make mistakes in selling their businesses. They create a business that is too dependent on the owner for its operation and profitability. Buyers and lenders recognize the owner is the business and when the owner leaves the business will be worth a lot less. The buyer won't pay full value. Start now to delegate and prepare your key employees to run the business after you're gone. Other owners set an unrealistic price for the business based on the income they need to maintain their lifestyle in retirement. That's not likely unless the business owns a lot of assets with high market value. Get a realistic appraisal for the business and adjust your retirement expectations accordingly. Don't use unqualified family members who are attorneys and certified public accountants to assist you in the sale. Select advisers with experience in mergers and acquisitions. Selling a business is a complicated process. Poor advice can cost you a sale.
Get your financial statements including balance sheet, profit and loss statement and cash flow statements in good shape. The prospective buyer will want to see financial statements for the past three years certified by a certified public accountant. It's difficult to reconstruct financial statements retroactively and it's unlikely a certified public accountant will certify them retroactively. The same applies for the business's tax returns and bank statements. The prospective buyer will have their certified public accountants review all those documents carefully to detect any red flags that indicate the business is not as profitable as shown.
If you have a business that is likely to grow and be worth more than $5 million at the time of sale and plan to give part ownership to relatives, consider doing it now and let it appreciate in the relative's name. That will minimize gift taxes. Don't rush the choice of a buyer because the initial price seems best. After due diligence the buyer may lower the offer considerably. They may not be willing to keep key employees or the financing may be too risky. In the meantime you have lost other better buyers.
Don't underestimate the emotional trauma of selling the business. Often the owner's sense of self worth and purpose in life is tied to the business. Their business and social status in the community depends on the business. Giving that up can be more emotionally traumatic than they expect. That can cause them to act irrationally and do damage to the sale, their lives and their family life. Set goals for what you want to do in retirement. Before I retired I set seven goals that would keep me busy. Consider doing part time consulting to fill your time and keep you connected with your industry and business community.
Read: How to prepare to sell a business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Question:
I want to retire in a few years. What do I need to do to prepare the business for sale?
Answer:
Many owners make mistakes in selling their businesses. They create a business that is too dependent on the owner for its operation and profitability. Buyers and lenders recognize the owner is the business and when the owner leaves the business will be worth a lot less. The buyer won't pay full value. Start now to delegate and prepare your key employees to run the business after you're gone. Other owners set an unrealistic price for the business based on the income they need to maintain their lifestyle in retirement. That's not likely unless the business owns a lot of assets with high market value. Get a realistic appraisal for the business and adjust your retirement expectations accordingly. Don't use unqualified family members who are attorneys and certified public accountants to assist you in the sale. Select advisers with experience in mergers and acquisitions. Selling a business is a complicated process. Poor advice can cost you a sale.
Get your financial statements including balance sheet, profit and loss statement and cash flow statements in good shape. The prospective buyer will want to see financial statements for the past three years certified by a certified public accountant. It's difficult to reconstruct financial statements retroactively and it's unlikely a certified public accountant will certify them retroactively. The same applies for the business's tax returns and bank statements. The prospective buyer will have their certified public accountants review all those documents carefully to detect any red flags that indicate the business is not as profitable as shown.
If you have a business that is likely to grow and be worth more than $5 million at the time of sale and plan to give part ownership to relatives, consider doing it now and let it appreciate in the relative's name. That will minimize gift taxes. Don't rush the choice of a buyer because the initial price seems best. After due diligence the buyer may lower the offer considerably. They may not be willing to keep key employees or the financing may be too risky. In the meantime you have lost other better buyers.
Don't underestimate the emotional trauma of selling the business. Often the owner's sense of self worth and purpose in life is tied to the business. Their business and social status in the community depends on the business. Giving that up can be more emotionally traumatic than they expect. That can cause them to act irrationally and do damage to the sale, their lives and their family life. Set goals for what you want to do in retirement. Before I retired I set seven goals that would keep me busy. Consider doing part time consulting to fill your time and keep you connected with your industry and business community.
Read: How to prepare to sell a business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Buying or Selling An Internet Business
Buying or Selling An Internet Business:
There is a lot to like about an online business model. For starters, your company may have access to a much broader market, including in other countries. Some online businesses can also be run with no inventory, few to no employees, and without the hassle of accounts receivables when online payment is required at the time of purchase. Additionally, most key support functions can be outsourced, with the exception of marketing and customer service. Finally, if you're armed with the right set of tools, you can even setup and run a business like this with little to no technical expertise.
Read: Buying or Selling An Internet Business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
There is a lot to like about an online business model. For starters, your company may have access to a much broader market, including in other countries. Some online businesses can also be run with no inventory, few to no employees, and without the hassle of accounts receivables when online payment is required at the time of purchase. Additionally, most key support functions can be outsourced, with the exception of marketing and customer service. Finally, if you're armed with the right set of tools, you can even setup and run a business like this with little to no technical expertise.
Read: Buying or Selling An Internet Business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Monday, October 1, 2012
Selling a Business Don't Underestimate Your Power!
Selling a Business Don't Underestimate Your Power! :
When sellers prepare to sell their business, some are quick to take a defensive role relative to the buyer. After all, buyers conduct the due diligence, buyers make the offer, buyers request the necessary financial information, buyers make demands during negotiations, etc. The subservient role can be an easy trap for a seller to fall into. After all, they want their business to sell. But sellers have rights, too. And they have a responsibility to protect and defend the interests of their business.
The majority of business owners sell a business only once in their lifetime. The same can be said for someone buying a business...they typically only do it once. But, a strategic, corporate or equity buyer, is likely to have been involved in quite a few transactions - some that worked and some that did not. What does this mean for the seller? It means buyers that express interest in buying a business could have an experienced team of mergers & acquisitions advisors helping them or, have been through the business transaction process more than once. This can result in a lopsided negotiating arrangement - the amateur (the seller) versus the professional (the buyer).
Read: Selling a Business Don't Underestimate Your Power!
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
When sellers prepare to sell their business, some are quick to take a defensive role relative to the buyer. After all, buyers conduct the due diligence, buyers make the offer, buyers request the necessary financial information, buyers make demands during negotiations, etc. The subservient role can be an easy trap for a seller to fall into. After all, they want their business to sell. But sellers have rights, too. And they have a responsibility to protect and defend the interests of their business.
The majority of business owners sell a business only once in their lifetime. The same can be said for someone buying a business...they typically only do it once. But, a strategic, corporate or equity buyer, is likely to have been involved in quite a few transactions - some that worked and some that did not. What does this mean for the seller? It means buyers that express interest in buying a business could have an experienced team of mergers & acquisitions advisors helping them or, have been through the business transaction process more than once. This can result in a lopsided negotiating arrangement - the amateur (the seller) versus the professional (the buyer).
Read: Selling a Business Don't Underestimate Your Power!
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Buying A Business - What Should You Think About?
Buying A Business - What Should You Think About?
If you are thinking of buying a business it may be because buying an already established business could be an easier option than starting a business from scratch. When choosing a business to buy you must ensure that the business is totally right for you as it is a huge investment. Whether you are buying a business or beginning a business for the first time, you will need money behind you.
What Should You Think About?
1. If you are buying a successful business you are buying not only a thriving business but you are also buying a business which is based on the previous owner's reputation, this can be an advantage but can also leave you with big boots to fill so make sure you feel totally up to the job.
2. The business will come with established contacts, customers and staff. You may have to honor agreements and contracts which the previous owner made. However, this is hopefully not going to be a problem.
3. Why is the current owner selling? You do not want to be in a situation where the owner is selling in foresight of business slowing, or if the staff is unhappy. They may be selling a failing business which you will have to invest a lot of further money in, beyond the purchase price, to turn it around. Take into account how the current owner's sale will affect the staff and the clients; they may not take well to a new managing director.
4. You should not have to worry about a business plan nor a marketing plan.
5. Applying for loans and financial support should be easier as you will be able to refer to the company's current figures.
6. Your skills and the amount of money you can invest in the business. You would do well to choose a business which you feel you can do well in, a business which you have knowledge and contacts if possible. Buying a business because you are intrigued by it, and are planning to learn on the job, is probably not the best idea. Also rein your ambition in, and keep to things you can afford. This is going to be a huge investment of both time and money so do not make it harder on yourself by going for things you cannot commit to financially for the long term.
7. Location does not matter! Many many businesses have the potential to be relocated, so look for exactly the right business opportunity for you, not for the business opportunity simply located by you.
Make sure you get an accurate valuation for the business. You can receive advice from a business transfer agent or business broker and they will be able to value the business with the help of an accountant. Once you have agreed on a deal for an amount with the current owner you will have a window in which to check the figures and information you have been given about the business is correct. Make sure you use this opportunity you do not want a nasty surprise. This is termed 'due diligence'.
If you are thinking of buying a business it may be because buying an already established business could be an easier option than starting a business from scratch. When choosing a business to buy you must ensure that the business is totally right for you as it is a huge investment. Whether you are buying a business or beginning a business for the first time, you will need money behind you.
What Should You Think About?
1. If you are buying a successful business you are buying not only a thriving business but you are also buying a business which is based on the previous owner's reputation, this can be an advantage but can also leave you with big boots to fill so make sure you feel totally up to the job.
2. The business will come with established contacts, customers and staff. You may have to honor agreements and contracts which the previous owner made. However, this is hopefully not going to be a problem.
3. Why is the current owner selling? You do not want to be in a situation where the owner is selling in foresight of business slowing, or if the staff is unhappy. They may be selling a failing business which you will have to invest a lot of further money in, beyond the purchase price, to turn it around. Take into account how the current owner's sale will affect the staff and the clients; they may not take well to a new managing director.
4. You should not have to worry about a business plan nor a marketing plan.
5. Applying for loans and financial support should be easier as you will be able to refer to the company's current figures.
6. Your skills and the amount of money you can invest in the business. You would do well to choose a business which you feel you can do well in, a business which you have knowledge and contacts if possible. Buying a business because you are intrigued by it, and are planning to learn on the job, is probably not the best idea. Also rein your ambition in, and keep to things you can afford. This is going to be a huge investment of both time and money so do not make it harder on yourself by going for things you cannot commit to financially for the long term.
7. Location does not matter! Many many businesses have the potential to be relocated, so look for exactly the right business opportunity for you, not for the business opportunity simply located by you.
Make sure you get an accurate valuation for the business. You can receive advice from a business transfer agent or business broker and they will be able to value the business with the help of an accountant. Once you have agreed on a deal for an amount with the current owner you will have a window in which to check the figures and information you have been given about the business is correct. Make sure you use this opportunity you do not want a nasty surprise. This is termed 'due diligence'.
Source: By Paul Howe
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Do You Run Your Business as if it’s For Sale? | SucceedAsYourOwnBoss.com
Do You Run Your Business as if it’s For Sale?:
Even if you have absolutely no plans to sell in the near or far future, you should keep your business in sale-ready shape. For one thing, running a business so attractive and competitive that someone would want to buy it is more rewarding – personally and financially – than running a business that’s in constant disarray.
Read: Do You Run Your Business as if it’s For Sale?
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Even if you have absolutely no plans to sell in the near or far future, you should keep your business in sale-ready shape. For one thing, running a business so attractive and competitive that someone would want to buy it is more rewarding – personally and financially – than running a business that’s in constant disarray.
Read: Do You Run Your Business as if it’s For Sale?
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
Keep emotions in check when selling your business
Keep emotions in check when selling your business:
One of the top deal killer when selling a business is the owner's emotional preparedness.
Typically, owners looking to sell and retire will be near the completion of negotiating a deal and a wave of emotion will hit them when they’re at the precipice of exiting the business.All of a sudden, the owner will start making irrational demands and changing terms.
Read: Keep emotions in check when selling your business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
One of the top deal killer when selling a business is the owner's emotional preparedness.
Typically, owners looking to sell and retire will be near the completion of negotiating a deal and a wave of emotion will hit them when they’re at the precipice of exiting the business.All of a sudden, the owner will start making irrational demands and changing terms.
Read: Keep emotions in check when selling your business
For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com
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