Wednesday, May 27, 2015

Finding the Perfect Business to Purchase

Many people dream of starting their own businesses, but even when they succeed in this dream,
Buying a business in Florida
about half of them will see their new businesses close their doors within five years. Due to the difficulty of getting a business off the ground in the first place, this type of failure can be extremely disheartening. Fortunately, those who want to own a business don't have to go through the growing pains that often end in failure. By following just a few tips, they can purchase already-established businesses.

Find the Right Industry
One of the biggest reasons companies go out of business is due to a lack of market demand, but this pitfall is avoidable by purchasing a business that is already established. This doesn't mean, though, that failure isn't still a possibility. Fortunately, choosing the right industry in which to purchase a company can easily increase the chances of long-term success.

Forbes points out that wineries, street vendors, social network gaming and Internet publishing are all great industries to step into in the current market. Unfortunately, some of the most common businesses are also some of the worst to get involved in. Grocery stores, restaurants and Internet cafes, for instance, all have high rates of failure.

Picking the Right State
Many budding entrepreneurs don't realize it, but the state where their business is located shouldn't necessarily be set in stone from the beginning. Forbes ranked Mississippi, for instance, as the worst state for businesses. This means enterprising individuals in the Magnolia State might rather look elsewhere. Fortunately, purchasing out-of-state businesses is just as easy as purchasing local ones. All that's necessary is to find the right state.

When making a decision, it's often smart to focus on population size and quality of life. Florida, for instance, has a quality-of-life ranking of 32. While its neighbor to the north has a ranking of 38 in this category, Florida has nearly double the population. That makes for a larger potential clientele, and it showcases why it's imperative to look at the big picture rather than just snippets.

Find a Business Broker
Purchasing a business isn't as simple as walking into a company, asking to see the manager and making a cash offer for the entire setup. After all, there aren't many people who can honestly say they've seen a "For Sale" sign in a company's window. These types of sales go through business brokers, so it's important for future entrepreneurs to do the same.
This step shouldn't be viewed as an annoying necessity, though; there are actually several benefits to using a business broker. For example, these professionals can prescreen a business before someone decides to purchase it. This greatly cuts down on potential risk. A broker can also handle the tedious issue of negotiating and the always-complex process of filling out the necessary paperwork.

Friday, May 15, 2015

5 Important Points on How to Prepare your Business for Sale

Selling a business involves lot of careful planning and research to ensure that you get the best value out of it. It is important to get in the best possible shape for receiving the best possible sale price and to further eliminate issues, which allows prospective buyers to negotiate the price downwards. 

If you have decided to sell your business, then this guide will outline some of the vital issues, which should be considered and which helps your business to achieve maximum advantage out of it.

Buyers need to take into consideration vital points before deciding to buy Florida Businessfor sale. If you are thinking to buy a business, then follow below mentioned factors:
  1. Plan well in advance – With different aspects of business life, it is advisable to plan well in advance, before you decide to sell your business to the buyer. 

  1. Sell your business carefully – It is very important to keep your business up-to-date which will help in its selling process. Further, you should keep all the paperwork up-to-date and document everything. Each responsibility should be clearly outlined and it also includes key performance indicators which clearly describe what is expected out of each player and group.
  1. Start your research for professional brokers – Meet out to some professional business brokers for selling business, as majority of good business deals come from them. By discussing your business selling needs with them, you will get a better idea of who your potential buyers could be and how you can best represent your company/business to get the best value out of it. 

  1. Business valuation – The most important benefit of approaching a professional broker is getting detailed information pertaining to different valuation models buyers who will benefit from your company in your particular category/niche.
  1. Your exit strategy – When you decide to sell your business, then you should create an ideal exit strategy with your professional team regarding what you wish to achieve from your business sale. For example, you may want to reach to fixed financial figures from selling your business to achieve your specific retirement goals. 

    While this was about how to prepare your business for sale, let us discuss about important information which is required by business brokers and intermediaries:

  1. Financial statement – Even though, a business buyer is paying for you what the business is set to accomplish going forward, they will take a look at your financial statement in order to assess the risk of anticipating your earnings stream.
  1. List of assets included/excluded from sale – It is very important that your professional broker or intermediary will have to demonstrate what your prospective buyer has in regards to what they would be getting in terms of investment. Therefore, for this reason it is important to prepare a list of assets which includes both tangible/intangible assets which are included as well as excluded from the main transaction. 

  1. Business plans/projections – Even though, a buyer will take a glance at the historical financial statements for understanding of risk, the price would be simply determined depending on what your business is set up to achieve. The best way to demonstrate future expectations of your company is to prepare a business plan which includes its financial projections in the best way.
  1. Products/services – Only you know your business and products/services better than anyone else does. Chances are that your business might be selling the benefits of your products/services for several years.
Thus, by keeping the above things in mind you can successfully sell your business to prospective buyers in the best way.

Thursday, May 14, 2015

8 Top Aspects to Consider When Buying a Business for Sale

Acquiring an existing business really proves as an exciting and adventurous undertaking which can prove you with an immediate return on investment. For buying the right type of business, it is vital to possess right skills and conduct a proper research, before you decide to buy any business. When you are purchasing any business, then you will be also buying its owner’s stock, assets as well as customer loyalty.

Take a look at below mentioned points which should be considered before buying businesses for sale:
  1. Cash flow – It is very important to remember that before you own any existing business, inquire about its cash flow. Before this, you need to make sure that there is enough cash to cover any type of immediate expenditure and debts, which you will have to pay off at a later point of time. If in case, you proceed to buying a business without having sufficient access to incoming funds, then probably it can pose a great risk.

  1. Location – Location of the business has been deemed as one of the vital factors which determine the success of your business. The physical location of the business can have a huge impact on the target market and demographic, which your business can expect to attract. It is very important to consider business location in reference to where you reside. If in case, you are travelling long distances to work each day, then it may cause a negative impact on your overall well-being and success of your business.

  1. Purpose of selling a business – If the business owner is selling a business, then there would be a strong reason behind it. The most common reason could be that the owner is planning to retire. If suppose this is not the reason behind it, then you should probably carry out some research to find out the real reason.
  1. Important business dealings – It is very important to have a good idea to implement a back-up plan in case things don’t go as expected. It is not advisable to put everything you have on the line for your purchase. You should plan ahead for unexpected and unfavourable occurrences as well.

  1. Get legal advice from lawyer & accountant – At the time of buying a business, there can arise several legal and taxation related implications. Receiving professional advice from legal lawyer and an accountant prior to signing any type of contract with the business owner is very essential to avoid any type of issues at later point of time.
  1. Have a planPrior to entering a contract, make sure that it is very important to have a strict plan and realistic budget. The plan made by you should outline ways in making your business more successful, including certain ways to set it apart from the rest of the competitors prevalent in the market. The budget limit determined by you should include certain ways of injecting cash into your business, if required. It is very important to be realistic about other types of potential costs.
  1. Hidden costs – Before you decide to purchase any business, check out for hidden costs. Investors should pay keen attention to potentially hidden costs.
  1. Due diligence – Carrying out due diligence is an important step when you decide to buy any business. Failing to carry out a proper diligence can result in buying a business which is facing financial issues.
Thus, it can be said that when followed in right way, you can buy the best business for your purpose and get maximum profit out of it.

Monday, May 11, 2015

7 Reasons to Approach A Broker to Sell your Business

For any businessman, selling his business establishment is the biggest transaction, that he will ever perform in his business career. Many a times, it has been seen that, some of the businessmen try to sell out their business on their own. 

When inquired about the deals, they gave different answers. Some said they got what they asked for, few said they think they got a better deal, while there were some who were not sure about the deal.

Looking at the above situations, you may feel to hire a business broker and above all know about the services you will get in back. Several Florida business brokers, have been approached by a number of businessmen, to sell out their business property.

Here are some top reasons to hire a professional business broker for selling your business:
  1. When a businessman tries to sell his organization on his own, his actions directly tell the world about the sale. It triggers his competitors to make use of the situation and damage company’s reputation; while on the other hand the customers and employees become tensed. When a business broker is handling things, he hides the company’s identity while presenting it to prospective buyers. In case the buyer wants to have the details, then he is asked to sign a confidentiality letter. 

  1. When a person sets on to sell his business, he gets stressed because of doing many tasks at the same time. It may even affect his business and may cause some damage which cannot be set right. By giving this responsibility to a broker, owner will be able to completely concentrate on the activities of his business.
  1. When you hire a broker to handle your business sale, he will set the deal in a less time with the help of his contacts and techniques. This will help your business from suffering any loss. Brokers maintain a database of buyers and their businesses, which help them to know whether the buyer have the revenue to buy the business.
  1. Broker tries to present the business in such a way so as to get the maximum selling price. Thus, he makes sure to assist the owner to get maximum for his business from the buyer.

  2. When it comes to a business, it is very difficult to guess its value. Each and every business is unique and has different criteria to calculate business value. There are certain guidelines available to ascertain the value of a business. The only place to get the best price is the market. An owner can get a better deal when there are bidders for his business entity.
  1. At times the seller may be having the first hand experience while the buyer may have bought some other businesses in the past. Here the buyer will try to get the deal in his favour by bringing the deal to lowest selling price. As being new, the owner may fall prey to the situation. Having the presence of an experienced broker will help the owner to get the best deal for him.
  1. When it comes to the sale of the business property, it is going to be tough on the seller emotionally. A broker is the person, who maintains communication between the seller and buyer. This helps to maintain a healthy relation between seller and buyer even after the deal. Many times, the buyer gives a profit share to the seller after closing the deal. 

Thus, the broker plays an important role to help the seller get maximum in the deal by maintaining confidentiality. He even acts as a buffer between the buyer and seller, when it comes to price negotiations.

Thursday, May 7, 2015

Top 8 Points to Get Your Business Advertised For Sale

For any seller who wants to sell his business, first he/she needs to advertise it to attract maximum number of appropriate buyers. For that it is suggested to list it under different categories, for getting better exposure. 

There are even some other useful points that will help you such as: 
  • It would be advisable to add information like the town or street where the property is located, along with the postcode in the advertisement. This will help those buyers who are looking for some property in that area. Many businesses for sale in Florida are advertised in the same way.
  • Suppose you are selling a hotel, then you can file it under many options other than just ‘hotel’. You can add it under categories like ‘restaurant’, ‘bar’, etc. based on the services you provide there. It will help you to get noticed by buyers, who are looking for such kind of business property.

  • Be honest when you are selling your business property. The reason they are taking up the business is to make money. So make sure to give out the correct number of figures to the buyers. You must understand that many a times a buyer will be relocating his business to a new area, so the risks are unknown to him. 
  • While there are others who are stepping into the business field by leaving behind a comfortable job. So your numbers matter! Make sure to provide correct data in the advertisement as it will attract more customers towards you.
  • You can mention your net or gross profit or turn over on a monthly, weekly or daily basis in your advertisement. There are some other information, that you can mention depending on your business. These are ‘lease period’/’rent date’ for commercial property,’ traffic’ for online business, ‘footfall’ for a retail business and for service providing business ‘demographics’ can be mentioned.
  • If you want to maintain confidentiality, then you can provide the profit or the turnover figures only on request. Having numbers on the advertisement is not enough, you need to acknowledge them. Otherwise, the numbers would look like suspicious and the buyers may not take you seriously. They may not even feel the need to inquire about the proposed business.
  • If you want people to take away your business fast, it is important to provide a genuine price for your business. It would be better to quote a big amount, so that you can come down from there. Remember that, if you quote too high price, your business will not be seen in the list, where buyers are searching based on a price range. 
  • If you decide to keep the price at a value lower than what you can take, then you will be left out with buyers to whom you may not be ready to sell your property. Just remember one thing that the decisions you take while having the negotiations at an early stage, like refusing or accepting an offer, decides the price of your business property. The only thing that you need to do is, attract as many as possible buyers for your property.
  • You can compare your business, that you have put on sale on the website, which sells businesses, then you can ask for the price to get an idea. First determine the value of your business, it would be better to ask for a business valuation. This can be done with the help of agents or through websites providing that facility.
  • When it comes to a business, there are different marketing strategies to get customers. The best one is to advertise your business property on online sites, as they are cheap and you will get maximum exposure.
Things are different when you are selling your business. Thus, trying the above mentioned points will definitely help you sell your business in the best possible manner.