The term “growing the business” seems to be the term of choice for business people who discuss expansion. Unfortunately, in too many cases, this growing never goes beyond the seedling stage. Business people also talk about “thinking outside the box.” Again, that concept encompasses so much – what box? How far outside? – that it really can be an unfocused way of planning. So many random ideas can come out of such discussions and thinking that nothing really gets accomplished. It might be a much better idea to focus on one small thing that would increase business. For example, you feel strongly that mailing a circular to your existing customer base or to the immediate neighborhood would increase business, but you never seem to have the time to do it. Why not plan on mailing 1,000 circulars to possible customers over the next 30 days? This means devoting about one hour, two or three times a week, to take this project to fruition. Don’t worry about next month – take one month at a … [Read more...]
Sellers ·Don’t have a valid reason for selling. · Are testing the waters to check the market and the price. (They are similar to the buyer who is “just shopping.”) · Are completely unrealistic about the price and the market for their business. · Are not honest about their business or their situation. The reason they want to sell is that the business is not viable, it has environmental problems or some other serious issues that the seller has not revealed, or new competition is entering the market. · Don’t disclose that there is more than one owner and they are not all in agreement. · Have not checked with their outside advisors about possible financial, tax or legal implications of selling their business. · Are unprepared to accept seller financing or now unwilling to accept it. Buyers · Don’t have a valid reason to buy a business, or the reason is not strong enough to overcome the fear. · Have unrealistic expectations regarding price, the … [Read more...]
by Jason Alan, Los Angeles Business Broker After continuously witnessing the intangible aspects of each and every business transaction I have experienced, I had to come up with a word that contained them all. Trust, confidence, good faith, and deal strength are the traits that hold each deal together. Industry experts agree that most deals have a tendency to fall apart 3 times before close, thus deal glue was born. The Bonding Agent A business broker handles many aspects of the transaction. The broker confidentially manages the confidential marketing process behind selling a business. You can think of the broker as a catalyst, something that ignites a reaction between two elements. The broker brings buyer and seller together to form a bond, while at the same time acting as a mediator between them. Finally, the broker handles all of the paperwork so everything gets done right. A seasoned Business Broker usually posses a certain set of skills to effectively mediate any … [Read more...]
Personally I believe the school of hard knocks is the best way to go, but here is a alternative view on college and small business. Check out what the Princeton Review had to say about The Entrepreneurial Generation. … [Read more...]
Quite commonly, business owners feel that their business is unique, but is it really? There are a variety of different ways that businesses can be unique. Yet, there are some key variables and factors that simply must be in place if a business is to be simultaneously unique and valuable. This leads us to an important question, are these unique and valuable factors transferable to a new owner? Here are five key factors to look for in a business. Factor One-The Assets Having an intangible asset, such as the perfect location with a locked in long-term lease (which would, of course, transfer to a new owner) is of vital importance. However, this is not the only example of critical intangible assets. Other examples would include a robust mailing list of past and current clients that was built up over a series of years, a popular franchise relationship, trademarks and copyrights or a respected and known product line. Factor Two-Is the Business Easily … [Read more...]
Who Are Potential Buyers? Once a business owner has made the decision to sell, he or she should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying businesses have also become more divergent and complex. The following are some of today's most active categories of business buyers: Family Members Members of the seller's own family form a traditional category of business buyer – a category of buyers that is “tried” but not always "true." There is something appealing about a family member taking over the business. There is a sense of keeping the business in the family and an assumption that such an arrangement will translate into the prime advantage of continuity. Continuity may in fact be the result as long as the family member buying the business treats the role as something akin to a hierarchical responsibility. This can mean years of planning and diligent preparation, involving all or … [Read more...]
San Fernando Valley Small Business Broker – Standards and Practices In a Business Transaction – Be that guy not THAT GUY!!!
By Jason Alan San Fernando Valley Small Business Broker June 9, 2012 Los Angeles, California Standards and Practices In a Business Transaction - Following these guidelines could improve your chances of completing the sale or purchase of a small business. Be that guy not THAT GUY! The following are helpful hints to help relieve the pain, panic and pressure of buying or selling a small business. Time kills all deals! Always do as you say and follow through no matter what on time, every time. If you say that you’re going to return a document by a certain time or perform any task by a certain point always follow through, showing up to appointments on-time is helpful too. The stress and anxiety caused by not following through or delivering by a promised time could cause a deal to completely collapse without warning. People like to know that you’re dependable and trustworthy, this can prove even more important if there is a element of seller financing involved in the … [Read more...]