Selling A Business - 8 Factors That Influence Selling A Business By: Peter Siegel, MBA | - Selling a business successfully requires a number of factors, not only related to the quality of the company and the offering terms, but also the external influences working in the marketplace. California business sales statistics (compiled and reported on the BizBen Index) help to reveal that one or a combination of the following factors greatly influence how many businesses are sold in California each month.
Small Business Purchase Loans Increase By Following Sba Requirements By: Peter Siegel, MBA | - Obtaining small business purchase loans was nearly impossible at the height of the financial crisis. Bankers were so fearful of making risky loans that they were turning down solid proposals as well as the weaker applications. But with encouragement from the government, through the Small Business Administration, institutions in the SBA's lending network now are turning on the money spigot again. Meanwhile, California borrowers are learning how to submit approval-ready loan applications. Tags:business sba loan, buy small business, purchase calif business
Selling A Business - Three Less Common Approaches By: Peter Siegel, MBA | - Common strategies for selling a business involve listing with a business broker, talking to competitors who might want to expand, and posting for sale by owner ads. All of these can be successful, but before a business owner who is ready to retire actually begins the selling process its a good idea to know all of the options. They include three approaches not usually considered.
How To Make A Buying A Business Checklist By: Peter Siegel, MBA | - After consulting with California business buyers for over eighteen years I highly encourage them to have a "buying a business checklist", an important tool if they are serious about purchasing a company and not wasting a lot of time looking. Only 20% of all potential business buyers within California actually end up purchasing a small business. I have found that the failure to buy a business can be chalked up to not following the proven suggestions listed below.
Purchase A Business With Limited Cash -- Five Tips By: Peter Siegel, MBA | - Trying to purchase a business with no money down is usually a waste of time if you want a good business. But leveraging into a small business for sale with a relatively small cash down payment can often be accomplished using some of these suggested strategies.
1. Seller financing is the most popular and perhaps the most effective way to buy a business opportunity with borrowed funds. The typical method is for the buyer to sign a promissory note to the seller for the amount carried b ... Tags:purchase a business, buy business, purchase with limited cash
How To Sell A Business In Today's Market By: Peter Siegel, MBA | - Rules for how to sell a business are different today than they were just a few years ago before the mortgage meltdown and economic crisis that followed. The difficulty of obtaining purchase money loans and greater buyer uncertainty because of the fragile state of the economy have made it necessary for owners of small and mid-sized businesses, if they want to sell successfully, to employ strategies that address current problems. Four important principles that help achieve a sale are:
Good Advice For Business Buyers - Make An Offer By: Peter Siegel, MBA | - Eric was understandably upset when he learned the bar for sale he had been looking at as a possible acquisition was sold for the price he thought it was worth--a price he could have offered, but didn't think the seller would accept.
That was his lesson in the importance of making an offer.
Confidentiality: Why It's Important To Control Info On Business For Sale By: Peter Siegel, MBA | - Business owners should keep the fact that they want to sell confidential. Before releasing information to prospective buyers, those buyers should commit to confidentiality in writing and should understand why it is important. Business brokers make commitments to owners of each listed business to keep the sale confidential.
In order to keep these commitments brokers must require each buyer to maintain confidentiality. This means that buyers agree not to do anything that would let a ... Tags:sell a business, selling a business, buy small business
Tips For Getting Your Vending Route Ready To Sell By: Peter Siegel, MBA | - The population of buyers for small California businesses has grown dramatically over recent months, with corporate layoffs releasing thousands of business-savvy people into the market for companies they can buy and manage. A well-run organization with a history of profitability, in a business that doesn't require advanced university degrees to understand and operate, is exactly what these buyers want.
This is a good trend from the standpoint of owners of full-line vending route comp ... Tags:selling vending business
Selling Your Business Online - Advertising Tips For Sellers And Brokers By: Peter Siegel, MBA | - It is estimated that over 70% of all California small businesses for sale that are put on the market by business owners, agents, and business brokers have a difficult time selling a business because they don't utilize the proven advertising and marketing concepts outlined below.
Writing an effective ad to sell a small to mid-sized California business takes a little more time in the beginning but will pay off in the end - I hear it all day long on the phone from successful advertiser ... Tags:advertise business for sale, sell business, selling business
How To Handle Inventory Valuation When Selling A Small Business By: Peter Siegel, MBA | - It might be the most tedious thing you do when buying or selling a small California business for sale, but conducting inventory--counting out the items that are sold (in a retail store or distributorship), or used in running the business (such as food stuff in a restaurant or parts in a manufacturing company)--is absolutely essential during due-diligence.
Interpreting Reported Earnings Quoted By Small Business Seller By: Peter Siegel, MBA | - If it's true, as commonly believed, that small business owners tend to be creative individuals, one of the expressions of this talent can be found in the way they calculate the adjusted net earnings they receive from their businesses.
Seasoned business brokers often have difficulty coming up with an accurate earnings figure when analyzing the records of a company going on the market. Their challenge is to determine how much a new owner is likely to earn, based on the current level o ... Tags:sell a business, selling a business, buy small business
Using Bulk Sales Services When Buying Or Selling A California Small Business By: Peter Siegel, MBA | - The final part of the whole deal is the escrow. The word is an old Anglo-French word which originally meant piece of parchment or fabric. In todays parlance, the word describes the process whereby a property is deposited with a third party to be transferred to the grantee (buyer), when certain conditions are met. Who utilizes the services of an escrow, bulk sale service? California business brokers, business owner/sellers, business buyers, and other professional intermediaries.
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Buying A California Business - 10 Important Items By: Peter Siegel, MBA | - 80% of all California business buyers never end up buying a business! Many factors contribute to this statistic, but by following the points below and utilizing the "TIIC Method" of buying a California business you should be successful in locating a business that interests you and completing the transaction!
Know The Types/Sizes/Locations Of Businesses You Want To Buy
Correctly Pricing A Business Is Important If You Really Want To Sell It! By: Peter Siegel, MBA | - As a consultant I talk to many California business owners, certified business brokers, and agents on a daily basis about valuing businesses. It always amazes me on how some of these individuals come up with the values on small businesses being sold. No wonder only 30% of all California small businesses sell! In many instances no consideration is given to the total picture like will the available cash flow of the business be able to pay the debt of a loan, will the deal as structured or pric ... Tags:sell a business, selling a business, pricing a business
How To Find And Buy A California Small Business By: Peter Siegel, MBA | - Most potential business buyers don't realize that 80% of all business buyers (those not utilizing the BizBen Network) are unsuccessful in buying a small California business. As the Director of the BizBen Network I talk and consult with potential business buyers on the phone daily, and hear, repeatedly, the frustrations and problems connected to searching for and buying a California small business. The concerns I hear are typically universal.
Unreported Income Claims - What Should A Business Buyer Do? By: Peter Siegel, MBA | - One of the most difficult challenges when purchasing a small business is expressed by this prospective buyer of a liquor store for sale who is told by the seller that there is more money being made than shows up on the books.
Should the buyer accept that statement and go ahead with the purchase so he doesnt miss out on a good opportunity? Or would he be smart to consider the seller untrustworthy and pursue other opportunities instead?
Janitorial Cleaning Business Buying Tips For Buying Janitorial Businesses By: Peter Siegel, MBA | - The English have a saying: "Where theres muck, theres money," which can certainly be true for companies providing janitorial cleaning business services for commercial and/or residential clients. But before buying a janitorial business service for sale that seems profitable, its good to look into six aspects of the offering to make sure the business is sound.
Here Is What Life Is Really Like For Small Business Brokers By: Peter Siegel, MBA | - Among the most intriguing career choices for business people is to become small business brokers. Many people who have burned out or retired from a corporate or even a small business position are attracted to this field because of its many benefits.
But does the reality match the myths about this work? Heres a frank look into some of the popular claims about the profession.
Questions To Ask About A Quick Printing Business For Sale By: Peter Siegel, MBA | - If youre planning to acquire a quick printing business for sale, you probably know most of the questions to pose to sellers, so you can learn, for example, terms of the lease, whether employees are covered by union contract and value of the equipment.
But there are more probing questions to ask so you can avoid a company that looks good on the surface, covering hidden problems. Three issues to explore in depth when evaluating companies in this industry relate to:
Buying A Yogurt Business? Here Are Some Important Guidelines By: Peter Siegel, MBA | - Most people interested in purchasing a yogurt business can anticipate many of the things they need to know about the shops under consideration. The right choice among these offerings should be a business that has a busy location, is well maintained and shows a profit on a consistent basis. But there are additional guidelines the prospective buyer needs to understand, in order to determine not only whether an establishment is really worth owning, but also how much it is worth.
Three Of The Worst Mistakes When Selling A Business By: Peter Siegel, MBA | - It is commonly understood by owners of small and mid-sized companies that when they put the business on the market, they need to follow basic practices, such as pulling together financial information for review by the buyer, and making sure the business will come with a good premises lease. And while doing some things right, owners often make serious mistakes that impact their ability to conclude a deal. Here are three of the worst mistakes made by entrepreneurs selling a business.
Time For Certified Business Brokers To Apply Excellent Customer Service By: Peter Siegel, MBA | - As part of a thorough understanding about business operations, many certified business brokers consider themselves experts on excellent customer service. But when subjected to pressure from the clock and the competition, they might forget to practice what they preach.
Here are five fundamentals of good customer care that business intermediaries need to remember.
Business Opportunity Or Buying A Job? The Distinction By: Peter Siegel, MBA | - Most everyone searching for a business opportunity has encountered the question about whether an enterprise being considered is a sound business investment or merely buying a job.
The distinction between the two often is unclear. But its important for entrepreneurs to consider this question when establishing criteria for the search, and when becoming educated in order to make smart buying decisions.
As a guide for determining whether youre buying a job or purchasi ... Tags:business opportunity
The distinction between the two often is unclear. But it's important for entrepreneurs to consider this question when establishing criteria for the search, and when becoming educated in order to make smart buying decisions.
Most buyers know to avoid companies such as a photo film processor, a vendor with candy bar machines in school lunchrooms, or a printer specializing in street maps.
But other trends deserve attention. Review these tips to keep you on the right track as you consider what kind of business to purchase.
Six Ideas Describe How To Buy A Business In The New Decade By: Peter Siegel | - Think you know how to buy a business in 2010? The rules have changed substantially, reflecting a changing business environment. Here are six principles business buyers ought to understand if they want to be successful now and in the future.
Small Business Sales Rate Grows In California During January By: Peter Siegel | - Twenty-four percent more small business sales were recorded in California last month compared to the first month of 2009. We reported this information for the industry and consider the statistic an encouraging sign of recovery from last year's slow market.
BizBen.com statistics show that 1,074 medium-sized and small businesses changed hands last month while there were 865 transactions in January of last year.
Selling A Small Business In 2010? Six Tips By: Peter Siegel | - A plan for selling a small business in 2010 should be tempered with a reality check about how the marketplace is different since the mortgage and credit problems. Just 20 months ago companies had strong profits to support their high sales prices, and there was purchase money available from lenders.
The hopeful seller should learn at least six important principals for selling a business in order to become an ex-owner successfully in this new decade.
Gas Station Business Buy Includes Five Risks By: Peter Siegel | - It makes sense to buy gas station businesses for an investment that will do well even when the economy is struggling. People in America will stop the spending on most budget items before they quit buying fuel for their cars.
Buying A Franchise: Pros And Cons By: Peter Siegel | - The current economy may be tough for many individuals who are looking, without much luck, for work that will get some money coming in again. But for franchisors who offer an alternative to the headaches and insecurities of corporate employment, business is on the rise.
And buying into a franchise system can be a smart investment for someone who doesn't feel secure about a future working for someone else. An auto service, fast food outlet, mailing center or other kind of franchised b ... Tags:buy a business, sell a business, business opportunities, business brokers
3 Types Of Car Wash Businesses To Buy By: Peter Siegel | - Listen to five potential small business buyers who are investigating car wash companies as they talk about the enterprises they've seen. Most likely you'll hear five different descriptions of the business.
That's because there are three basic business models in the industry and variations on those, often including a gas station, mini-market, gift shop, and lube rack. Further confusing the issue, some of those opportunities come with real estate.
For Success Selling A Small Business, Learn These Six Secrets By: Peter Siegel | - The owner of a small business may be smart about selling the company's products and services, but when it comes time to sell the business, there are six errors commonly made by sellers that ruin their chances. And it's not about the obvious things like pricing correctly and making sure you have a lease.
Here are six key things to avoid if you want to sell your business.
That might be a great plan, or a prescription for trouble, depending on the person's ability as a business owner.
The "hero" who performs so well in a company position, might not have what it takes to be successful at owning and running a business. And some traits thought to be assets for one who is self employed, may actually be l ... Tags:buy a business, sell a business, business opportunities, business brokers
Do Small Business Seller's Add Backs Make Sense? - Three Tests By: Peter Siegel | - When putting a small business on the market for sale, the owner often has to explain that he or she has been reducing taxable profits by charging the business for products and services not really needed to operate effectively.
If the restaurant, manufacturing firm, retail store or service company is paying for the owner's vehicle expenses and life insurance premiums, it will show reduced, taxable earnings. Meanwhile, the owner is reaping the benefits of those costs.
