http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles.aspx Business buyer articles - Resources - Businesses for Sale en-gb Copyright Acquireo.com 2012 Acquireo Business buyer articles Thu, 09 Feb 2012 09:02:58 GMT 20 http://www.acquireo.com http://www.acquireo.com/pub/email/headers/logo-small.gif 236 63 http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/real-estate-inspection-service.aspx <p> When a person buys a home or a commercial building, the smart step toward an eventual purchase is to have the property inspected by a professional real estate inspector. The items that are part of a routine inspection are the hot water system, the heating, the air conditioning, the plumbing, garage doors and the roof. If there are built-in appliances these will be checked also. Depending on the part of the country the property is located in, there may be a need to inspect for mold in the property. Someone who has been an all purpose handyman would find this job right up there alley. All of these inspections take knowledge of the system and or the appliance. If a problem is found, the buyer of the property can pull and offer or make the repair part of the purchase contract. The skills needed for this work can be learned and then used to make the inspections. The problem is that this is a binding contract and if a purchase is made on the basis of a positive report, the inspector could be held liable. The repairs if they are needed are the responsibility of the seller. The cost of the inspection can be paid in full by the buyer or split between the buyer and the seller. In order to get into this business, you will need to have experience and even some formal education in some of the systems. </p> <strong>Where to find the education needed for inspectors</strong> <p> The Internet lists many places to get the knowledge and the accreditation needed to be a home inspector. A person interested in being in this business would be way ahead of the game if they checked out some of these sites and the cost of each program. Experts run these programs and the knowledge acquired would augment what the student brings to the table from their previous work. Since this business is all about being right, this suggestion makes a great first step in getting in this business whether starting from the ground up or buying an existing business. </p> <strong>Starting a business or buying a business</strong> <p> This question is always the one that needs to be answered early in the process of getting into any business. Start-ups can be stand alones, part of a franchise operation or deciding to go the other way and buy a business. Each has many advantages, but buying the existing business always seems to be one step ahead due to the clientele they have and the immediate cash flow. The cost can be substantially different between buying a business and starting one up. Existing clients have a real value when buying a business. </p> <p> Acquireo.com is a good place to locate <a href="http://acquireo.com/tag/home-inspection.aspx" title="Home Inspection Services for sale">home inspection services for sale</a> listed by business sellers and brokers. It also offers information and great help in getting started on the search for a business that is for sale. The <a href="http://www.acquireo.com/business-broker-directory.aspx" title="Broker Directory">list of business brokers</a> that are available through Acquireo are worth checking out and seeing if they can help you. </p> <strong>Money is the grease that makes a business possible</strong> <p> Money is needed in any business. The need is first apparent when the purchase or the start-up is set in motion. It later is the “mother’s milk” that allows the business to stay open and continue and hopefully grow financially. The owners of a small business are always looking for sources and ways to get money they need for both short term and long term needs. A person with excellent credit and assets can get bank help or loans from businesses that lend to a business that is being bought out or needs short term financing. Loans from the old owner of a business that has been purchased are common when a business is sold. Money lets everything happen, provides for growth and the day-to-day operation of any business. </p> <p> The real estate inspector business can be a one-man shop or a multi-person shop. With the pace that real estate changes hands every year, means that inspections will always be in demand and this business cannot be out sourced.Inspections give the buyer of the real estate a place of comfort when the property is given a clean bill of health. Money to carry out the inspections is needed until payments can be received. </p> <strong>Conclusions</strong> <p> Companies in the property inspection business are assured of an ongoing clientele as the number of properties that changes hands every year is a repeating process every year. The number may be growing one year and lover the following year, but the trend is up and these sales of property are almost always accompanied by an inspection. This is a source of reliable business on a yearly basis. A person that is considering this business as one that they would like to own will need experience and knowledge to do the job in the right way. There are schools and franchises that will help a person acquire the necessary education. There is a great deal of detail to this business and the need to be very precise in the inspections as there is a liability connected with doing these jobs. Purchases that are contingent on a passing inspection make the inspection of prime importance to both parties to the sale. This one element makes this a very important factor in the moving of property and the subsequent sale of the property. The written report can be used in court and also by either party to prove a contested point that has to do with the sale. If you have the knowledge and the experience, this field is going to be around for a very long time. It is a very critical service in the moving of real estate. </p> <strong> <p> <a href="http://acquireo.com/tag/home-inspection.aspx" title="Real Estate Inspection Service">Home Inspection Services for sale</a> </p> <p> <a href="http://www.franchiselogix.com/franchises/Home-Inspection-franchise-opportunities.aspx" title="Home Inspection Franchise Opportunities">Home Inspection Franchise Opportunities</a>  </p> </strong> Acquireo.com - Acquireo Team Tue, 08 Apr 2008 13:20:25 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/flooring-company-for-sale.aspx <p> A flooring company besides carpeting installs wood floors, tile, linoleum, concrete and vinyl squares. These flooring types, when properly installed, add beauty and ease of care to the part of the home or business that gets a lot of wear and tear. The variance of styles and types within the major categories offers the client a number of choices and colors to choose between. A new wood floor could be interconnected wood laminate products or parquet. Vinyl tiles can give all sorts of appearances like marble or terrazzo flooring. Real slate can be used also for the same flooring jobs. As you can see, the choices are endless and the customer has to make a difficult decision between the flooring ideas that are presented. To get a better view of what a new floor would be like, visit a showroom and see the products up close and in person. A photograph does not do the job like seeing the products in person. Connected wood laminate products not only look good, but also offer a very long guarantee. Slate or real tile products have a look and feel of old time elegance and again will hold up for a long time. All of these products come in many colors and shades of colors so a client can make very specific choices. </p> <p> Proper installation is the key to a final good appearance. People who do this kind of work are considered professionals by other trades people and by the contractors that hire them to do the job. Their knowledge and experience is what a job boss is hiring. They not only do it right, but also they do it fast. </p> <p> There are products that a homeowner can buy and install themselves with patience and care. The connecting wood laminates are an example of this. A concrete floor or one out of marble or slate should be left to an expert. Homeowners often attempt floors by the square, but the results depend on the patience and skill of the homeowner. </p> <p> A flooring company should have a showroom so the customer can see the finished product. Touching, seeing the colors and feeling the product will often make the sale. Price becomes a secondary consideration when the correct flooring sample is presented and the customer falls in love with it. A good salesman lets the products do the selling and they are there to answer questions and give some idea of the cost per square foot. The job can be broken into three parts. First is the presentation, the sale or decision and then the final installation. These elements should flow together and be seamless to the client. Negotiating around a budget can be a matter of just making the cost of the job work for the client. Having in-place financing for the customer will go a long way toward making the sale happen. </p> <strong>Finding a company that is for sale</strong> <p> It’s easy to locate <a href="http://acquireo.com/tag/flooring.aspx" title="Buy a flooring business"><u><strong>flooring companies for sale</strong></u> </a>and business brokers at acquireo.com. Another way to find businesses is to look at the franchise market. Flooring companies can be franchise operations as well as independents. Once a possible purchase is located, the real work begins. Negotiating the sale of a business is not like buying a house, as there are many factors that need to be considered when making the purchase. Does the business come with a building or is the lease transferable to the new owner? What condition is the equipment in and will the current employees stay when a new owner takes over? </p> <p> Usually there is a cash price and a financed price. The cash price is usually lower. The old owner may be willing to take part of the sales price in paper to help the buyer come up with all of the money needed to make the purchase. If they are willing to help in the financing, the sale may be easier to complete. The business broker will probably know the circumstances of the potential sale and be able to tell you if the seller is willing to be a lender also. </p> <strong>Other ways to buy a business</strong> <p> Once you know the amount needed to make the purchase, the buyer can find other sources for money. There are businesses that specialize in loans to buy a business. Banks, relatives and friends are also potential places to find the extra money that is needed to make the sale. If the terms cannot be worked out into a livable deal, the buyer should pass, as a bad deal will put to much pressure on the business and could make the business fail due to financial pressure. </p> <strong>Conclusions</strong> <p> Flooring is a purchase that is not only done for new structures, but is often done in a home or business that is being refurbished. A new kitchen floor or den floor are common for homes. A new showroom floor for a business may be needed to make the business sparkle again. Whatever the reason, there are always clients willing to spend money so they can have the floor they want in the home or the business. </p> <p> One of the necessities this business needs along with expert workers is a really top sales person or two. This product sells itself with help at the correct moment from an aware sales person. If the purchase of an existing business is in the works, make sure about either keeping the sales team or figuring who is going to make the sales in the future covers this. </p> Acquireo.com - Acquireo Team Thu, 03 Apr 2008 02:39:46 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/car-detailing-business-fixed-and-mobile.aspx <p> Why does a car that is twenty years old look like it just came off the show room floor and a newer car look like it is 40 years old. The reason that is most likely to be the case is the older car was detailed and the newer car was not. Detailing cars has become a big business that can be either mobile or a fixed location business. The mobile form of the business has caught on with the public, as the customer does not have to bring their car to the business and use up valuable time. The business comes to them and in many cases the car is detailed while they are working. </p> <strong>What is detailing the Exterior</strong> <p> Detailing the exterior of a car includes the engine, the tires and the body of the car. The detailing business will use a degreaser on the engine, wash and scrub the tires and then do the body of the car. This order of doing detailing is important as it makes for a better and more efficient job. Once the first two are completed, the final step, the detailing of the body includes both washing and then waxing of the body of the car. Having an expert do this work is becoming more common as people do not have the time to do it themselves and they want to protect and keep their cars in presentable shape. Cars cost a great deal of money these days, and the owner wants to feel good about the car they are driving. </p> <strong>What is detailing the Interior</strong> <p> This area of most cars is a catch all for all manner of trash and disasters. A car can, only be considered to be properly detailed, if the interior is thoroughly cleaned and cared for. This includes the ashtrays, the car seats and obviously the floor and the carpeting. The dash area needs attention as it catches dust and other dirt. The windows are one of the most important areas to clean well as the impression of looking out of a clean window is important to the customer. </p> <strong>Finding a detail business for sale or starting one</strong> <p> Finding a detail business that is up for sale may be easier than you think. One place to look is the search area on www.acquireo.com and also contact some of the business brokers listed on the site. </p> <p> Acquireo also has <a href="http://www.acquireo.com/tag/car-detailing.aspx"><strong>car detailing businesses for sale</strong></a> listed at  http://www.acquireo.com/tag/car-detailing.aspx.The top reason to buy an existing successful business is that the business will have a customer base. This means the new owner will have immediate cash flow. Cash flow is critical to a business at all times and particularly when it is new. </p> <p> Starting one up from scratch may be less expensive than buying one, but the drawback is the new owner has to begin prospecting immediately for customers. If you are good at meeting people and getting them to do business with you, then this may well be the way to get into the business. This decision is one of the first you will need to make as a new owner of a detailing business. A business broker can help with many questions and there are sites on the Internet that go into great detail about this type of business.<strong><strong> </strong></strong> </p> <strong><strong><strong><strong>What you need to be in business</strong> </strong></strong></strong> <p> What you need depends on several factors. Is the business going to be a fixed location or a mobile service? A purchased business should come with the basics to carry out the business, including a customer base. If you start from scratch you will need to prospect and advertise plus equip the operation. The equipment needed will be a car washing system, vacuum cleaners buckets and many soft rags. You will need a supply of the correct cleaning products and waxes. The better quality in this area, the longer the job will look good. The washing system can be purchased on a trailer or mounted in the back of a pickup. This will be a substantial investment that will quickly pay for itself if you can get a reasonable number of customers to do each month. The mobile business may be easier to get off the ground, than a fixed location. In a fixed location you will have all of the expenses associated with having a building to work in and do the work. Both types of business have their own advantages and negatives.<strong><strong><strong> </strong></strong></strong> </p> <strong><strong><strong><strong>Money and where to find it </strong> </strong></strong></strong> <p> Money will be needed no matter which business you elect to go into. If you do not have enough cash on hand, maybe the owner of the business you are buying will carry some paper on the business. A bank loan if you have good credit could be the answer also. People going into a business must work this out for themselves and come up with a plan that they can live with during the early months of operation. </p> <strong><strong><strong><strong>Conclusions</strong> </strong></strong></strong> <p> Auto and small truck detailing has become extremely popular as people get busier with their lives and the cost of vehicles becomes an important expense. Time or the lack of it has been a very strong incentive for people to use this type of service. Most people would like to drive a smart looking vehicle and it is this desire that makes them pay for this optional service. The mobile version really takes all of these factors into account. This is the perfect one or two man operation to consider owning. The cash flow can be very good once the customer base is built up and steady. The cost of doing business is a small part of the business and the money paid to the business has a high percentage of gross profit. Purchasing an in place business is not a bad way to start as the successful business will already have a client base to service. Detailing is here to stay and there are many potential customers to approach.<strong><strong><strong> </strong></strong></strong> </p> <strong><strong><strong><a href="http://www.acquireo.com/tag/auto-detailing.aspx"><strong>Auto Detailing businesses for sale</strong></a> </strong></strong></strong>can be viewed<strong><strong><strong> at <strong>http://www.acquireo.com/tag/auto-detailing.aspx</strong> </strong></strong></strong> Acquireo.com - Acquireo Team Fri, 21 Mar 2008 02:18:03 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/antique-business-opportunity.aspx <p> People who have a rare item of furniture, art piece, porcelain object or a painting with frame, may need to have the rarity restored. Since these are valuable objects and the restoration must be done correctly by an expert, this opens the opportunity for a company that specializes in this type of work. The money that can be charged for a restoration depends on what needs to be done. </p> <p> In order to do this kind of work, the person doing the work must be experienced and have knowledge of many types of restoration projects. The standard way to acquire this level of expertise is to work for several years in the business with a firm that does this work. There are a few schools that a person can attend to learn some of the techniques and this is particularly true in the art restoration. But the basic way to learn the business is by hands on experience. Getting a business to take you on and train you may be a hurdle, but it can be overcome with persistence and making multiple contacts. Once the knowledge is acquired, the chances to get into the business are open to an experienced person. This can be done by starting your own business or buying an existing business. Obviously the existing business is a better way to go as this type of business has developed clients and has built a reputation, which will bring in new clients. </p> <strong>Starting from scratch</strong> <p> Starting from scratch is never easy to do, as the person has to have some money saved and take the leap of faith to do this. In this specialized business, it can be done if you know quite a few people who can be possible clients and get you started fairly quickly so the cash flow can begin. There are not a great many expenses with this business, like there is for example in a pizza parlor. A person could start from their home and expand out as they grew. Reading and studying new techniques and methods is also a requirement to stay in business. Meeting the challenges of each project will be unique as each one will be slightly different. The person with the acquired knowledge and several years of experience can be pretty comfortable doing projects that they have done before. As they grow in confidence, the business can begin to get into areas that will expand the clientele and generate more income. </p> <strong>Finding a business that is for sale </strong> <p> Most people when they are trying to find a business that is for sale will use many sources to locate sales. The Internet is a good place to start and Acquireo.com can help you find <a href="http://www.acquireo.com/tag/antique.aspx"><strong>antique businesses for sale</strong></a> near you. Business brokers are an excellent source and they also can answer many questions the potential buyer has about buying an existing business. Brokers have experience in helping a buyer find the correct purchase to buy. The buy must be affordable for the buyer or have terms that can be favorable to both the buyer and the seller. The business needs to have prospects for growth in the future and an existing clientele that will be likely to stay with the business. Finding businesses that meet all of these criteria is like looking for a four-leaf clover in a field of clover. A broker can cut the looking down to a reasonable search. Once a prospective business is found, the negotiations start. Again a good business broker can be of great help in smoothing the way to a fair deal for both the buyer and the seller. </p> <strong>Money makes the deal</strong> <p> When a business is sold, there is a final price that needs to be met by the buyer in order for the sale to be completed. If the buyer has all of the money needed to do this that is the solution to this part of the deal. If the buyer is short, then they must find away to come up with the difference. Loans from a family member or from a bank are two ways that could be explored to solve the problem. The common source of the difference in money is the old owner. Many businesses are sold every month with the seller as the supplier of the extra money. Normally when they do this the price for business is slightly higher. Sometimes this part of the negotiation is better handled by the broker than by a face-to-face meeting between the buyer and the seller. Since this is part of many sales, the broker will be experienced in handling the deal making and coming up with terms that both parties can live with. If the deal looks like it would put to much of a strain on the business, it should either be renegotiated or walked away from as a bad deal will not workout in the long run. </p> <strong>Conclusions</strong> <p> Restorations of valuable objects take knowledge, experience and patience to do correctly. The person doing this type of work will need several years of experience to do it right. Getting this education can be done in several ways, but a hand on experience is the best way to learn. There are special schools to learn how to restore paintings and such. Furniture takes learning as well and this is learned by doing the jobs. Most people in this business learned it from a personal teacher or boss. Finding a mentor is not an easy proposition and will take some hunting to discover a possible teacher. Many of the people in this business learned it from a family member. There are no shortcuts and the objects that are worked upon are too valuable to be experimented upon. People that own these treasures are very careful whom they will give this kind of work. A business with a good reputation will be offered more work than they can possibly do. </p> Looking for antique businesses or <a href="http://www.acquireo.com/tag/antique.aspx"><strong>antique stores for sale</strong></a>? Check them at <strong>http://www.acquireo.com/tag/antique.aspx<strong> </strong></strong> Acquireo.com - Acquireo Team Fri, 21 Mar 2008 01:57:00 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/upholstery-business-for-sale--opportunities.aspx <p> Upholstery repair, reupholstered furniture and vehicles, motor homes and boats, airplanes and big land cruiser buses are all clients of <strong>upholstery shops</strong>. Upholstery business is a very profitable business for an experienced individual in this skilled occupation. Once a person has this knowledge and can handle any of these jobs, the door is open to owning a little one-man shop or a larger shop with several employees. Getting started in the business or buying an existing business is a matter of money and choice. Finding out about <a href="http://acquireo.com/tag/upholstery.aspx">upholstery shops for sale </a> is very easy as a website like www.acquireo.com will list businesses for sale and business brokers who can help you find a deal you can handle. </p> <p> Starting one from scratch is a matter of letting the community know that you are open for business. Advertising is one of the ways, getting the word out with different associated businesses is another way to begin to attract customers. Letting businesses know that deal in antiques or furniture that will need to be repaired is another way to gain customers. </p> <p> This way of getting into the business is slower than buying an existing business. If you can get into the larger deals like planes, boats and mobile homes then you can work on some projects that will generate some real income. People who own these kinds of possessions will spend money to get exactly what they want. </p> <strong>Finding just the right business to buy</strong> <p> The key to owning a successful business is made simpler by buying a going business with a good reputation. This business with a clientele and a following will mean immediate cash flow to the new owner. The secret is to maintain the quality of the work. If mostly the employees do the work, make sure that they will still be with the business after you buy it. You will need them to keep up the jobs and the quality work. Many of these types of businesses can be purchased with the help of the current owner. With a reasonable down payment, they will be willing to take payments for the balance that is due. Working out the details is sometimes easier to do with the help of a good business broker. They are use to putting deals together so that both parties are fairly treated. </p> <p> Make sure that the deal you do is very conservative as to payments. You can always pay more at any given time, but it is hard to lower the payment once it is agreed to. Careful scrutiny of the deal and the price is mandatory when buying a business. </p> <p> Equipment is always important in this sort of a business. Make sure that what you are buying is in good condition or if it needs to be repaired what is it going to cost to bring it up to standard. If a shop is part of the deal, make sure the building is inspected for its soundness. If it is a rented space, find out about renewal of the rent and can the current lease be assumed. When you buy a business, you would like to keep the same location if possible. If you are moving the shop, plan on a campaign to let the old customers know of the change. </p> <strong>Showroom of rehabilitated furniture</strong> <p> A showroom of furniture and before and after pictures will go a long way toward getting new customers. What can be done and how it will look after the repair is a real eye opener to the possible customer. The showroom does not have to be extensive, just enough to give a taste of the possibilities that you can offer to the customer. If space is at a premium, a gallery of pictures or a large scrapbook of before and after pictures will suffice. These also can be posted on your Internet website. The importance is to get the customer to imagine what their repair will look like when it is completed. </p> <strong>Found the business but lack funds needed to make the deal</strong> <p> This problem is one that business brokers see all of the time. They may have an answer for you that will work. You can also try and solve this problem for yourself by taking in a partner, speaking with a business lending company that helps new owners buy a business or trying to make a deal with the current owner. If a way can be found, make sure you can live with it over time. A tight deal may be unwise as the pressure to come up with the money could doom the business to failure. Walk away if it cannot be done in a fair way for you and the seller. </p> <p> Some times just the fact that you are willing to forget the deal will make the seller more reasonable to deal with. The art of negotiating the sale is one that can be put in play by either the business broker or the buyer. </p> <strong>Conclusions</strong> <p> If you possess the skills to do fine upholstering, then you can make a very good living by practicing your art. If you can expand the work by owning a business then you can make a great deal more money. Whether you start one for yourself or buy another person’s business is a choice you must make. Whichever one you do, you will grow faster as long as you do quality work, which will enhance the business reputation. Word of mouth advertising is the best form of advertising that a business can get. Your work will sell your company. Customers that get more than they expected are always willing to brag to their friends that they got a good deal from you. Charge what you need to, to make a living, but do the job right. It will get you new customers. Find people you can train or hire the experience. You will need both as you grow. Trade shows and county fairs are a good way to let the public see what you are about. Satisfied customers are the best form of advertising you can get. Remember that when you are thinking of cutting a corner to get a job done. </p> You may view <a href="http://acquireo.com/tag/upholstery.aspx">Upholstery Businesses for sale</a> listings at http://acquireo.com/tag/upholstery.aspx Acquireo.com - Acquireo Team Mon, 28 Jan 2008 23:47:13 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/buy-a-carpet-store-for-sale-or-start-one.aspx <p> In the rug and carpet business the store and the showroom for displaying the carpeting is essential to making the sales. Smaller samples can be carried into the home, but seeing the carpeting in a larger section makes a bigger impression. For a person to get into this business this should be a serious consideration. It would be possible to start out with just a sample case, but the business will grow faster once the showroom and a permanent location is in place. A buyer in this type of business can go the franchise route or be a supplier of different brands of carpets or rugs. The franchise store will have some restrictions on what products can be sold in the store. A business that represents many different product lines has no such restrictions. It is up to the storeowner which carpet companies are represented to the store’s customers. </p> <p> Location of the store is helped by being in a center or strip mall or on the corner of a busy intersection. It is preferred, but not absolutely essential as it is in other types of businesses. This is a niche market and people who are in the market for replacement carpeting or furnishing a new house will seek out those businesses that are convenient to them. Carrying brand name carpeting will help as these names can be displayed in the ads for the company in both print and media advertising. Having excellent sales people working for the business also easily influences this business. Hiring experienced people or building a solid training program will help to fill this important part of the business. It also would be wise to have in house financing for those people who cannot pay cash for their purchase. </p> <p> Buyers who are looking for an existing business to buy can find listings of businesses that are for sale and business brokers on www.acquireo.com. This source can give a buyer a feel for what is available in this business market. Contacting business brokers will also help in gathering information as to the businesses that are for sale in a specific geographical area. </p> <p> Giving carpet-cleaning companies a finder’s fee for recommending your company can lead to some very motivated clients. It is possible that they will run across customers that need to have their carpet replaced and just not cleaned. It would not hurt to cultivate owners of these businesses in your area. </p> <strong>Finding the motivated seller of a carpet business</strong> <p> Local business brokers may have such listings and the Internet will have many more. A buyer may need to expand the idea a little as many of the businesses that are for sale are multi-flooring businesses and not just limited to carpeting. </p> <p> The reason that the sale is being offered is a strong indication of a good deal or a risky deal. Legitimate reasons to sell the business are the selling party is older or the heir of a deceased owner. These sellers are usually very motivated to make a deal and may even be willing to take payments for part of the purchase price. Poor health can also be a consideration by the seller to want to let go of a successful business. All of these reasons are factors that could make the sale more favorable to the buyer. </p> <p> Long standing in the community also helps to make the deal a better one for the buyer as people are likely to know of the business and its reputation. These are just some of the first reasons to look at a business that comes to your attention. </p> <p> Obviously the financials of the business will need to be studied for trends. A yearly increase in business is a very good sign in a profitable business. If the sales have been dropping the reason must be ferreted out. It could be something as simple as the top sales people left the company or retired. It also could mean that there is a new competitor in town that is getting the business. </p> <p> The business broker who is handling the sale will sometimes have all of the answers to your questions. But it is still a good idea to look at the deal very carefully yourself. Questions like the lease assumption, when will the rent negotiations be open again or repairs on the building that is part of the sale. Again these are serious questions that must be made clear to the buyer. </p> <strong>If the price is very high, places to find the money </strong> <p> Lenders in business buying can be approached to see if they would consider your deal. Some angel groups will help put a deal together if they feel it is a solid investment. Partnership arrangements of short or long duration can be put in place to get the money. And as a final place to get the funds, the old owner may be willing to take a payment deal if the down payment is high enough. While finding the deal, you should also be exploring how you will come up with all of the funds needed, if you do not already have them available. </p> <strong>Conclusions</strong> <p> This business of selling carpet, rugs and other flooring is a high capital venture. It is not likely you could do such a business out of your garage. You may be able to work a deal with an existing owner to work your way into an ownership position. You could also lead a partnership group into a profitable situation if you know people with investment money. </p> <p> A high growth area would be a natural for rapid increase of sales and a superb business opportunity. Sales is the name of the game in this business and a staff of sales people who can make it happen is the best way to grow fast. You will need to have one or more top sales people working for you in the business. People will stop by to look, but they must be sold in order to do business with them. A walk-in is an opportunity not a sure sale. </p> <ul> Looking to buy a carpet business for sale?Check listings below: <li><a href="http://acquireo.com/tag/carpet-store.aspx">Carpet stores for sale</a></li> <li><a href="http://acquireo.com/tag/carpet.aspx">Carpet Businesses for sale</a></li> </ul> Acquireo.com - Acquireo Team Mon, 28 Jan 2008 16:25:17 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-buy-or-start-an-auto-painting-business.aspx <p> Painting vehicles is a business that can be part of a franchise chain, started from scratch or purchased as a going business that is either private or part of a chain. The vehicles can be family size cars or trucks to big rigs and motor homes. The house specialties will probably determine the type of work the business takes on in its daily operation. Even the categories stated above can be broken into smaller sub categories. For example the cars that are family size could also be cars that are built especially for classic design or for sport. These cars could be a racing vehicle or a newly designed specialty car. The trucks could be regular pickups or older classic models that the owner wishes to make sparkle again. The customers of these painting shops are willing to spend the money for a quality job that makes their vehicle, whatever it is, look like new again. This comes at a price and that is why these businesses are very good cash cows. </p> <p> Look at the big rig trucks if you do not think these owners are willing to spend money to make their rigs look like they were just driven off of the show room floor. The same is true for some of the mobile homes that you see driven down the interstate. Whatever clients you want to go after, there is a business for them and their desires to see their vehicle look great to the eye. This opens a door to the automobile painting business that is filled with opportunity for those that are willing to cease it. If you have the experience and the money this could be your dream of owning a very successful business in a field you like. </p> <p> <strong>Finding a business that is up for sale or could be started</strong> </p> <p> The franchise businesses are set up to do cars or pickups, another words they are set up to run them through as fast as they can at as low a price as they can and still make money. The advantage to a franchise is they will heavily advertise and you will get business from their ads. This is not the business for a perfectionist who wants to do special work for people who will appreciate the detail that goes into such work. Expensive paint jobs are the work usually of specialty shops. If you could find one of these that is up for sale and also successful it may be a good buy if the price is right. The other way to get into the high-end market is to start a business from the ground up. Of course this is a slow start, as no one knows of your business when you first start it up. You will not have the advantage of the franchise or the successful business that is bought outright. </p> <p> You can find <a href="http://acquireo.com/tag/auto-painting.aspx"><strong>auto painting businesses for sale</strong></a> at http://acquireo.com/tag/auto-painting.aspx and also from business brokers who able to assist you in many ways. These professionals can answer many questions and may have private listings that you may not be able to find any other way. </p> <p> If you find a business that is for sale and the deal sounds solid then the hard part begins. Negotiating with an existing owner and finding out all of the important information is what buying a business is all about. Questions like how big a staff does it take to continue the success and still grow. Will the people who are there stay with the business and a new owner Can a deal be made with the owner that is fair to both parties? This is where a good broker can answer a lot of questions or get the answers you would like to know. They know that a deal can be made or busted on little things as well as big things. </p> <strong>The grease of any deal is the money</strong> <p> You have found the right business that is for sale. Now the money part of the deal becomes critical to making it happen for both the old owner and the buyer. If the buyer has all of the money needed to make the buy then there is no problem. If the buyer is short and needs to raise the difference between what he has and the selling price, sometimes some creative dealing must be put in play. This shortfall can be alleviated by several means. The money can be obtained from family or friends, a business-buying lender who specializes in making deals happen. Bringing in a short-term partner may raise the money. The solution used most often is the old owner will accept some of the purchase price in payments. If this is the way it comes down the purchase price is raised a little over what a cash deal may have been. The active business broker is very good in these situations and may bring the deal to completion. </p> <strong>Conclusions</strong> <p> The vehicle painting business takes skill and experience to do right. A person with this knowledge would be a good candidate to own this type of business. It will take some doing to find a business that can be purchased right. This business would be more difficult to start from the ground up as it may take to much time to build up a following. A franchise may work if that is the type of business you wish to own. At least you would have an established name and advertising. </p> <p> The best plan of all in this case is to find a successful operation that you can purchase under favorable terms. It may take a while, but the deal has to be okay or it will be too difficult to pull off in the long run. This is a business that could grow to an even bigger enterprise, as there are so many types of vehicles that need to be painted. You could expand to cover more of the possible market. </p> Acquireo.com - Acquireo Team Mon, 28 Jan 2008 00:58:58 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-payday-loan-business.aspx <p> One of the newest businesses that have become a feature in most cities is the rapid growth of the payday loan business. These lending companies make loans against a person’s pay day check, their pension check or their Social Security check. The customer writes a check for the amount that will be due on the day of the coming check and pays the loan and the interest. Since this is a high-risk loan due to the clients and the chances of not getting paid or paid on time, the interest that can be charged is extremely high compared with a standard bank loan. The clients as a rule are people who cannot get loans from banks or credit unions. Most of the clients will pay the loan, if their employment is not interrupted. The interest rate per $100 borrowed can be as low as $15 and as high as $75 per $100 in the state of Missouri for a 30-day loan. The amount that can legally be charged depends on each state’s laws. </p> <strong>Two ways to get into this business</strong> <p> A person can start a payday loan business from scratch or buy an existing business or franchise. The startup costs includes setting up a retail shop, office furnishings, fast Internet connection, computer and a reasonable amount of cash for lending. If an existing business is purchased, the plus factor is the business has a client base. The client base is important, as many of these borrowers will be repeat customers for a surprisingly long number of months. They will pay off the loan and then come back in a few months and do it again. These customers usually have a very good source of funds like a pension or SS. </p> <p> The return on investment is very high and is not without a substantial risk. The rule is being tough on whom you lend too and be very quick to find out why a payment was missed or late. Many of these clients will have more than one of these loans out at a time. Since credit checks are not usually run, the lender cannot look at this factor. It is wise to ask the borrower if they have other loans out. </p> <p> The idea for these companies is that people, who do not have a good banking relationship, will have emergencies that will require a short-term loan. This is the stated purpose of these companies. However in real life these lending companies become like a bank to people who cannot get a bank loan. A well runs payday loan company can make a substantial return on the money that is loaned out to the customers. </p> <p> Existing <a href="http://www.acquireo.com/tag/payday-loan.aspx"> payday loan businesses for sale</a> may be viewed at http://www.acquireo.com/tag/payday-loan.aspx. </p> <strong>A business that demands good people skills</strong> <p> Payday lending requires solid training of the staff to make sure that the employees follow all applicable laws. The fines for not following the state laws are substantial. Another reason for good people skills is the enter-action between customers and the business will be determined by how the customer is treated if there is a problem. Collecting delinquent accounts is part of the business and the success in this area will directly affect the profit of the company. Rapport with the customer will go along way toward the customer being willing to work through a problem area like loss of job or sudden illness. </p> <p> People who are clients of a Payday loan company are lacking in credit standing, but are just in a bad place and cannot use normal borrowing methods that are open to people with good credit. Treating them with respect will go along way toward making them feel obligated to paying you off as soon as possible. They will also be more forthcoming if a problem does happen. Training your people to treat the customers well will pay dividends over time. </p> <strong>Location and referrals</strong> <p> Use your customer base to get more customers. Referrals are one sure way that existing customers can help to grow your business. Give them an incentive to recommend you to their friends. A spiff for them and the referred person will make getting new customers an easier proposition. </p> <p> Your location in a high foot traffic area will be very helpful as it is with any retail business. A shop with no other attractions near it will have to do much more advertising to bring in the customers. Coupons that are mailed individually or in coupon letters of flyers will get a small return based on the number sent out. Insets and asking old customers for referrals will probably get a better response. </p> <strong>Conclusions</strong> <p> Payday loan businesses fill a need and are also very lucrative to the owner. The high return on money that is out on loan can return a significant profit if some care is exercised on whom the loans are made to by a strict loan policy. Checking accounts and debit cards are a solid sign of stability. Fixed income clients are also good potential customers, as their money flow will not be disrupted. Home ownership and length of time at one bank will also be an indication of stability. </p> <p> Repeat customers are like gold to this type of business. You have a history with them and you can expect it to be satisfactory in the future. Lack of credit is the biggest factor that drives people to use these companies to borrow money. The result is you are dealing with a higher risk client, but you can also make more money on the money you lend out to the customers. Some loss factor must be built into the business plan. However a good pre-loan interview will help to keep losses at a minimum. The Internet is a good place to get further information on this type of business. </p> <p> Existing <a href="http://www.acquireo.com/tag/check-cashing-page-2.aspx">Check cashing Businesses for sale </a> may be viewed at http://www.acquireo.com/tag/check-cashing-page-2.aspx </p> <p>   </p> Acquireo.com - Acquireo Team Sun, 06 Jan 2008 00:35:22 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-buy-a-dough-nut-and-pastry-shop-business.aspx <p> To be the successful owner of a donut and pastry shop, a person better be a baker by education and love. If the owner is going to work in the business, the hours will be like a night watchman and a milkman. The baking has to be completed in the early hours of the morning in order to be able to serve freshly baked products. The donuts and the pastries are the specialty of the house, so the quality and product choices have to be a reasonable number. The customers are willing to pay for something different as long as it is an exquisite, tasty and an experience. </p> <p> This is a fairly high markup business and satisfied customers become repeat customers that come back week after week. It is possible to grow the business with coupons and special deals for customers that buy certain dollar amounts. Another way to make customers happy is to give them a reward for referrals to new customers. The best way with out a doubt is to consistently deliver the best donuts and pastry in the area. </p> <strong>Start a new or buy an old</strong> <p> The potential owner of a donut shop or pastry shop has to come early to the decision of whether to start a new shop or buy an old one. At <a href="http://www.acquireo.com">Acquireo.com</a> the potential buyer can find shops that are listed for sale and business brokers that will help them find a business that is for sale. One of the best reasons to consider buying a shop that is in existence is the clients are already use to shopping at the business. If the new owner can keep up the quality and even add more selections, the clientele will continue to buy from the business. This means that the shop does not need to go through the growing curve that a new business must endure. Immediate cash flow will also help the new owner recover the investment at a quicker pace. This big plus in buying a business is offset somewhat by the higher price that an established business will command. A buyer has to pay for the good will the company has developed over time. </p> <p> When a new business like this bakery shop is started, the owner must consider many factors that will seriously affect the business during its startup phase. Aside from the money needed to buy equipment and obtain a business location, the owner must also figure on a reasonable amount of money that will be needed to advertise the business. A new business has a serious problem. Their potential customers do not know it is open for business without this advertising blitz. This can be a very healthy expense for a business with few customers. Advertising can be done in many ways, such as, mailed coupons, TV ads, radio spots and picking a location with tremendous foot traffic. </p> <p> Another big expense for this type of business is the cost of the equipment needed to open the doors. Kitchen equipment can be purchased either new or used. Careful shopping is what is needed when doing this equipment buying. </p> <p> A smart move when opening the shop with a new owner or from scratch is this. Come up with a new customer welcome special that brings the customers into the shop. This could be for example a dozen and a half for the price of a dozen. </p> <p> If you plan to have a series of new products for your customers, you could announce them in flyers that are given with the purchase or in your ad campaign. </p> <p> Business brokers can be very helpful with this part of the business plan, as they may have seen an idea that really worked well for one of their customers. It never hurts to ask them if they have seen anything in the way of advertising that captured customers. This source could also be useful in finding used equipment. </p> <strong>Working and negotiating the deal</strong> <p> When you find the perfect business to buy, you want to make a deal that works. Most businesses of this type can usually be purchased with some help from the old owner. This means simply that the old owner will take part of the purchase price in payments. If this is the case, the price of the business will increase over the price of an all cash deal. Another important part of this purchase is the ability to get help and training from the old owner. If you have the baking knowledge this may be as simple as learning any special recopies that the old owner has. It also would help to see the routine the shop used on a daily basis to have the fresh products out each morning. This business is all about freshness and this does not happen by accident. Preparation and planning go into efficiently doing this operation on a daily basis. A new owner should not be put in the place of having to reinvent the wheel. A cooperative previous owner will make this part of the deal go through with ease. </p> <strong>Conclusion</strong> <p> High profit margins are available in this type of business. If the owner is heavily involved in the business, the profit can be substantial. The biggest problem the owner has to overcome, once the customers are coming through the door is the time that is needed to run this type of business. The baking has to be done at night and the store needs to be open in the daytime. Finding and keeping good employees will help with this problem, but it is a problem that must be resolved. </p> <p> The owner cannot do all of the work by himself or herself or they will burn out. The family can be help or finding good help can solve this problem. </p> <p> Finding a business that has a good following that is up for sale at a price you can afford is going to take some time and serious investigation. If a deal can be found, the deal must still be fair to both parties or it could cause a problem later in the business. Buying a business has to make sense from a financial perspective or it should be passed on and forgotten. </p> <p> Looking for buying a donut business? We have it all here <a href="%E2%80%9Dhttp://www.acquireo.com/tag/donut.aspx%E2%80%9D">Donut Businesses for sale</a> -Acquireo.com.<br /> If you are looking for similar businesses, the ones listed below will be all you need: </p> <ul> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/candy-store.aspx%E2%80%9D">Candy store for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/snack.aspx%E2%80%9D">Snack retail business for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/bakery.aspx%E2%80%9D">Bakery for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/bagel.aspx%E2%80%9D">Bagel Business for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/deli.aspx%E2%80%9D">Deli business for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/ice-cream-shop.aspx%E2%80%9D"> Ice Cream shop for sale</a></li> <li><a href="%E2%80%9Dhttp://www.acquireo.com/tag/cafe.aspx%E2%80%9D">Café business for sale</a></li> </ul> Acquireo.com - Acquireo Team Fri, 04 Jan 2008 22:58:48 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-concrete-business.aspx <p> Concrete construction is used in many aspects of construction from the backyard patio to concrete commercial buildings. Hoover dam just southeast of Las Vegas has tons and tons of concrete in the dam that holds back all of that water in Lake Mead. The dam was built in just less than 5 years and employed hundreds of depression era workers. The pouring of the concrete to make the dam is one of this industry’s masterpieces. A person with knowledge, experience and love of construction could make a very good life for themselves in this business. Cement is used in small construction projects like patios and stucco buildings and large commercial buildings like manufacturing plants and large commercial buildings. This is a business for all types of construction people with knowledge of concrete. Of course for larger projects it would help to have an education in engineering. </p> <h4>Starting a company or buying one is going to take some investigation</h4> <p> Starting a concrete construction company is going to take some fortitude, money and several years of experience. A company that poured pads, driveways, and patios could make a very good living for the owner of a small business. These jobs would not take a great deal of equipment and could be run with a small crew of employees. A company that specializes in this part of the construction business could deliver the concrete to the site. Another area of possible work is a partnership or subcontracting jobs with a pool company. In ground pools are built with a surrounding area of concrete which may or may not be part of the patio. A person starting a small operation should have many friends in the business that have worked with them before If these friends no that you do quality work and are able to handle the work, they may be willing to give you a shot at some of their smaller jobs. </p> <p> Buying an existing company will make the chances of success much higher and could make a significant difference in immediate income. An existing business with a good reputation is worth a great deal in the construction business. the asking price may be high, but maybe a deal could be struck with the current owner to buy the business over time. Many deals are completed this way. One thing a successful company will have is a good staff and usable equipment. Quality conscious professionals do quality work. This reputation will get many new jobs when customers check out your references. Check new <a href="http://www.acquireo.com/tag/concrete.aspx">concrete businesses for sale </a> at http://www.acquireo.com/tag/concrete.aspx </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> The only way to become a big company in this business is to grow into it, be born to it or have the money to buy out a big competitor. Solid jobs done on time and at the budget will help with growth. Customers and general contractors really like working with professionals. The secret is doing the work you know you can do and be careful when you are stepping out of your comfort zone. Analyze the business and the cash flow it will generate and make sure that you have been very conservative with your estimates. </p> <h4>Weather consideration in the concrete business</h4> <p> One expense that is not thought of immediately is a stand-alone weather service. This can be a service provided on the web, or rented by the month from companies that specialize in satellite distribution of immediate and local weather. </p> <p> The problem with concrete and weather is this. Rain or extremely cold weather can ruin how concrete sets up. An owner in this business must know what the weather is going to do after a pour is completed. Make this mistake one time and suffer the loss and you will never let yourself be put in that position again. The loss on the job and then having to redo the job is a real bummer. Fortunately this is not a problem with the information that is available real time now days. </p> <h4>Paying for good help and keeping them on staff</h4> <p> Successful construction companies have a very good staff that takes pride in their work. Development of people in your business will also let you grow, because you need help and extra supervision as you grow. Multiple job sites will be a nightmare if you try to do it all by yourself. Pay your top people well and try very hard to keep them as busy as you can. People who like the work like to work. </p> <h4>Money can be found if you are short when buying</h4> <p> When you find the perfect business that is for sale, try to get the asking price without involving the current owner. Taking in a partner, getting money from a business lending company that specializes in buying businesses are two ways to come up with the money. Family and friends could be approached for a short-term loan. The final source for many sales is the current owner. Often they will consider doing this if the purchase price is sweetened a little. If you are using a business broker, they could help in this area of the sale. Their experience in making sales happen can be used to your advantage. </p> <h4>Conclusions</h4> <p> Building something that will be around for a while is a very satisfying businesas. The concrete construction business can be such a business for the owner and his staff. The pride in a job that is well done and can be revisited is part of the appeal of this business. The other solid reason for this business is someone has to make the concrete do its job. This takes knowledge, experience and skill. Pads or simple patios do not come into being by accident. If they are done right, they will last for a long time. More complicated structures that are made from concrete are marvels of design and thought. Some of Frank Lloyd Wrights work that still stands shows what can be done with concrete floors and overhangs. A person with a love of this business will never be bored or without an interest in the next project. </p> <p> If you are looking to own a concrete business, check relevant businesses for sale at <a href="http://www.acquireo.com/tag/concrete-contractor.aspx">Concrete Contractor businesses for sale</a> and <a href="http://www.acquireo.com/tag/concrete-pumping.aspx">Concrete Pumping Businesses for sale</a> - Acquireo.com  </p> Acquireo.com - Acquireo Team Fri, 21 Dec 2007 00:31:39 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Todays-Business-Opportunity-Market.aspx <p> All indicators point to continued growth within the "business opportunity" segment. There are usually three independent factors that contribute to an increase in people looking to get into their own businesses. Lower interest rates play a significant role by allowing individuals to finance their business at attractive rates. Next, the job market: When jobs are plentiful, people first think about switching companies rather than considering self-employment. When jobs are scarce, owning a business becomes a viable option. The final factor is the financial market. When the stock market is stable or increasing, and CD rates reasonably attractive, most Americans are comfortable in allowing their money to grow from these investments. However; recent years have shown that the market is not for amateurs and so average people look to other vehicles to build their wealth hence, self employment. </p> <p> Whenever one of these three areas is in disarray, the business opportunity market enjoys a growth spurt. Right now, all three are in flux, so the numbers of people looking to take control of their own destiny is booming. </p> <p> However, the category we've come to know as Business Opportunities is somewhat misleading. When I hear this terminology, I can't help but think of "get rich quick" schemes and unrealistic infomercials promising riches beyond belief. </p> <p> A recent poll indicated that 50% of all Americans dream of owning a business. For most, there are three possible options that make sense: starting a business, buying a franchise, or buying an existing business. All have their pros and cons, and the choice depends upon the specific needs, goals and expectations of each individual. </p> <p> <strong>Start Ups</strong> </p> <p> I've always believed that everyone should start at least one business from scratch in his or her lifetime. It can be one of the most exhilarating and educational undertakings you will experience. Unfortunately, the chances for success are not very good. In fact, over 80% of all start-ups fail in the first three years and 80% of those that make it, fail in the next two years. That means that 96% fail overall; quite an expensive education isn't it? </p> <p> The biggest culprit contributing to failure is a lack of capital. I have started several businesses and I've now come to expect the following: </p> <ul> <li>Revenue comes in about half as quickly as originally expected. </li> <li>Expenses are usually much higher than anticipated </li> <li>The world is never as excited to buy my products/services as I thought they would. </li> </ul> <p> Of course, many start-ups survive, and thrive, way beyond expectations. Certainly, I've had some blockbuster experiences, but several dismal failures. If you're going to start a business, it is critical that you not only plan properly, but you are certain that you have the financial resources to endure a slower than expected period to profitability. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Franchises</strong> </p> <p> Running a franchise can be a wonderful starting point for those making the leap from the corporate world to self-employment. The beauty of franchises in theory, is they provide you with a recipe to operate your business, covering all of the daily activities that you can expect to encounter. While it does sound attractive, one must also realize that the potential upside is generally limited. </p> <p> Gone are the days of obtaining master franchise rights for an expansive territory, unless you buy into an unproven franchise. Typically, as soon as your franchise location begins to achieve some success, the master franchiser will open additional locations nearby. In effect, your "partner" becomes your competitor. </p> <p> While franchises can be a wise choice for some, experience has shown that buying an existing franchise location can be a more prudent decision. A new location is much like a start up, except that you'll have a game plan and supporting materials. When considering a franchise, it is wise to investigate the business on your own and the best way to do that is to speak with existing operators of the franchise you are considering. </p> <p> Keep in mind that the franchiser's agenda is to sell you a franchise. Surely, they want you to succeed, but opening new locations is their corporate objective. So while they may provide you with additional support, it is important for you to do your own research to be sure that you are capable of running the business and that the market and location are right. Your relationship with the franchiser is crucial. If you do not feel confident and trusting of them, then you must carefully consider whether or not you want them as your partner in this venture. </p> <p> Personally, I believe that if you're going to buy a franchise, then buy a resale. This way, you get the best of franchising and all of the pluses that an existing business has to offer. </p> <p> <strong>Existing Businesses</strong> </p> <p> Buying an ongoing enterprise will provide you with benefits that are not available in either a start up or franchise (except for a resale). With an existing business, you'll have </p> <ul> <li>Historical financial information </li> <li>A built in infrastructure (employees, customers, suppliers) </li> <li>Immediate cash flow</li> </ul> <p> While this sounds wonderful, there may very well be a premium for these added benefits. However, when it comes to investing your money, the objective is to make a prudent long-term decision and an existing business offers you the largest potential upside. Plus, you'll generally negotiate directly with the seller and so you can construct a creative deal that will allow you to acquire the business for less than you would expect. </p> <p> Regardless of what road you choose to purse, the most important thing is that you do something! Everyone knows that unless you have a senior position within a company, you simply cannot get rich working for someone else. Even if you're an executive with an attractive compensation package, you're one bad quarter away from unemployment. </p> <p> For many, owning a business is a dream. For some, it will become reality. Your fate is in your hands. Whether you choose a start-up, franchise, or existing business, it can be done. It's up to you. Currently, the market is in your favor and the time is right, for you to finally put yourself in a position to be your own boss. </p> Acquireo.com - Richard Parker Thu, 13 Dec 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-painting-company.aspx <p> A freshly painted building, home or room gains a new look and appearance. Professionals with special equipment almost always paint structures over one story in height. Homes and rooms are a different matter. The homeowner or a professional can do these. Homes with older citizens often have to have a professional come in and do the painting as they cannot do the physical work. This includes both the interior and exterior. Rented offices, apartments and homes are often painted by a painting shop that has a contract with the rental agent or the management of the unit. This is another occupation that cannot be outsourced, as the work has to be done on site. Professional crews can do the job in short order and with little mess. They know all of the shortcuts and finish the job to perfection. </p> <p> Trades of all kinds are having a problem finding new help. People, who do not know the business, think there is no money to be made in the painting trade. That is a mistaken assumption that could not be further from the truth. A small business can be a true gold mine of profit when run properly and kept busy. Both the owner and the employees can do very well for themselves financially. Contracts with rental agencies and real estate management companies can provide a steady source of work. Real estate agents are often asked whom do they recommend to do the painting job on a home that is coming to market. The other big group of potential clients is the private homeowners and small office-building owners. These are very good clients that will hire out the work rather than do it themselves. The secret is to let the word out that you are available and then when you get the job, do the job right and on time. Search out the people who make the recommendations to clients and those that do the hiring for painting work. These people only want one thing from the people they hire. Do the job correctly, do it as promised and leave the job site as clean or cleaner than you found it. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <strong>Start one up or buy one.Which is best?</strong> <p> A person who is thinking of going into the painting business asks this question often. The answer is it depends on the deal and the money needed to make it happen. Starting a painting shop from scratch can be done rather inexpensively and quickly. A truck or van, ladders, some scaffolding and painting tools will get a person started in the home business. The first issue when starting a business is getting customers to work for. This will take some prospecting by the owner of the new business. Clients will not start coming to a new business until a reputation starts to build. The owner is going to have to be pro-active when getting a new business off the ground. Meeting with decision makers and getting the first job is what it is all about. By doing the job right, the painting company will get more business this way. If the owner is well financed the slow build up of cash flow will be a livable situation. </p> <p> Acquireo has <a href="http://www.acquireo.com/tag/painting.aspx">painting businesses for sale </a> listed by brokers and owners. It also lists business brokers that are in the area of the buyer. Brokers found on the site can be contacted to see what listings they may have in the painting shop area. Brokers will also be able to answer many of the questions potential buyers are concerned about Solid facts and figures are the bread and butter these brokers will provide to the interested buyers. </p> <p> A buyer can also use the search ability of the internet to find other businesses and brokers that can be looked into. This is just another way to gather information. </p> <strong>Money and the deal</strong> <p> The potential owner of a business must have some money either to start a business or buy a business. It will probably take more money to buy a business than to start one up from the ground up. The existing business would have some clients that are repeat customers and the more of these there are the more valuable the client list. Existing contracts are also of value as long as the contracts can be assumed. </p> <p> The current owner is often a source of part of the purchase money. This comes at a price in many cases, as the price of the business will be more if the owner has to loan money. This can also be part of the deal negotiating </p> <p> One of the pluses of buying a successful business is the staff must be very good at what they do. If they are going to stay after the current owner leaves, then this is a big plus. Maintaining a solid work force is always important in a trade type business. Experience and work quality are factors that keep a business on top. </p> <strong>Conclusions</strong> <p> Painting and maintenance go together in the painting shop business. A company that provides quality work that is done on time and within the budget is likely to be successful and given repeat business. The need for this service is going to stay steady and increase over time. The work cannot be outsourced, as it must be done onsite. These factors are critical and will keep a business like this busy with an increasing workload. These factors will grow the business and keep the staff busy with work. </p> <p> Rehab projects are another source of work and many different painting companies bid government contracts. The residential jobs and small office jobs are very profitable and not that hard to get. These jobs can be acquired by showing pictures of other jobs that the company has completed. References from satisfied customers will go along way in getting new work. Attention to detail is the key to keeping the customers happy and satisfied with the work. </p> <p> If you are looking to own a painting shop or painting business,check out the listings below: </p> <ul> <li><a href="http://www.acquireo.com/tag/paint.aspx"> Paint stores for sale </a></li> <li><a href="http://www.acquireo.com/tag/painting-contractor.aspx">Painting Contractors for sale </a></li> </ul> Acquireo.com - Acquireo Team Thu, 29 Nov 2007 10:52:02 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/tree-trimming-and-tree-care-service-business.aspx <p> Tree care and trimming can be done by a one-man business or a large corporate business. The larger business will be able to have the more expensive equipment which means they can be bigger trees with much greater speed as far as trimming is concerned. Vehicles with an armed power ladder or basket makes tree trimming much easier to do. A one-man shop will probably be doing the work by climbing up into the tree and using ropes and safety harnesses. </p> <p> Tree care and disease analysis or prevention is an activity that can be done only with education and experience. A one-man shop could do this work as easily as a large corporate shop. Both businesses if they have the needed expertise could do this type of work equally well. The knowledge is the important ingredient here and not equipment or number of personnel. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <strong>Finding or starting a tree service company</strong> <p> A person that is interested in owning a tree service company could start one out of their home by prospecting in residential neighborhoods to get started in the business. Of course some equipment and knowledge would be a needed element to starting such a business. The tree trimming will take some skill and knowledge about how to accomplish the tasks in a safe manner. Some one who worked for a nursery or a tree farm could have learned the basics of tree trimming. There are also many information sources on the Internet and in books that could be purchased. </p> <p> Tree diseases would be best learned in a formal setting and could be credentialed by earning a degree in the topic. There are universities and colleges that offer this type of study. Once a person has earned the degree, experience could be gained by working for a state or the federal government. The training and experience could also be gained by working for a private firm. </p> <p> With the knowledge a person could start business from their home and add personnel as the customer base grow. Buying an existing company would require capital and some business acumen. Hiring a business broker to help with the search would speed up the process. This professional would also be a good source for getting questions answered about this type of business. </p> <p> This is a niche market and the number of business that come up for sale in a given year, would be far less than many retail stores. A person thinking of getting into this business is faced with moving to buy a business or starting one up from the ground up. Also the solid business broker will have some idea of what amount of money is needed to buy such a business. When this is learned, the buyer must decide if they can come up with the price of buying a business. Starting one up may be the only way the to get into an owner position. </p> <strong>Coming up with the needed money</strong> <p> No matter whether you are starting the business or buying a business, you are going to need to have some cash to make it happen. You will need more money when buying an existing business than you will normally need to start one up from your home. When you buy a business, you are also buying the built in cash flow that comes with the business. The customer base has value and can make the business very likely to succeed in the future. This cash cushion will help the business get through the growing stages and provide the business with income to buy more equipment or hire more people. </p> <p> The operative question is does the buyer have the funds to pull this off or are they going to need help in buying the business. The help can be found in several places. Relatives and friends could be a source. A bank loan may be able to be arranged by the buyer. There are companies on internet that advertise that they lend money to prospective business buyers. This source should at least be checked out if you need extra cash to pull off the deal. The most likely source for some of the money is the seller of the business. Many business sales are completed each year in this way. The current owner will take back paper as part of the purchase price. If this is the way the purchase is done, be prepared to pay a little more for the business. </p> <p> An existing business in this field would need careful inspection of the equipment being purchased. What is the state of repair or can it be put in good repair at a reasonable price. This is where you may need expert advice. If there is a need for new equipment, the business must be evaluated on the worth of the existing customers and not the equipment. Long-term contracts have value if they can be assumed. </p> <strong>Conclusions</strong> <p> The tree service business is a very small part of all of the businesses that come up for sale each year. This niche business can be a very profitable business to start or buy. The service is needed by homeowners and businesses every year and can be in great demand if you live in an ice storm area of the country. These storms create a huge demand, as trees will need to be taken care of by someone. Diseases in trees are another matter that takes expert attention and analysis. If the tree is on the property of a private person, they may have no outs when it comes to solving the problem. Certain types of trees are more susceptible to life killing diseases. This should also be taken into consideration when choosing the trees to be planted for a new landscaping project. Good advice is the way to go. </p> <p> The final suggestion for those interested in this business niche is get the experience by working some where for a time and also get the education so you can do it right. Like other niche companies there are few shortcuts that can be used to speed up the learning curve. </p> <p> <em> Looking for <a href="http://www.acquireo.com/tag/tree-service.aspx"> <strong>tree care services for sale</strong></a>? We have it right here at <a href="http://www.acquireo.com/tag/tree-service.aspx"> Tree trimming and tree care businesses</a> </em> </p> Acquireo.com - Acquireo Team Thu, 08 Nov 2007 02:53:52 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-an-office-cleaning-business.aspx <P>Cleaning office spaces after hours is a business that can be started from home or a person can buy an existing company Almost any company with an office can use the service as this is a neglected area for most businesses that do not have the service. </P> <P> Cleaning windows, dusting, emptying trashcans and running the vacuum cleaner is not a very profitable use of office staff. Some owners of a business do it themselves to save money. Others just let it go until it just becomes a severe necessity. If the office is used to hold meetings with customers, the service may well be needed to keep the office in a presentable condition. The restrooms are another area that needs to be cleaned with some frequency. What type of company a customer hires depends on the business and the concern for security. A company that has many secret documents may need to hire a cleaning company that has a well-vetted staff. A business office, which can be secured for the basic security, can hire a person or two who work from their home. A business with many secret negotiations and using sensitive material may need to use a very secure service for their office cleaning. There are companies that can do both or just one or the other. </P> <strong>How to break into the business</strong> <P> One way to learn the business is to work in it for a time to learn the ropes. The learning curve is not very long or steep. Doing the job that is expected is the most important aspect to this business. The customer hires the company based on what is promised and it better be delivered or that company will be replaced by another who will keep their commitments. Hiring personnel with a good work ethic and unquestioned honesty is a requirement that must be kept at all times. </P> <P> A family could start this type of business and run it from their home while they built the business up over time. The equipment needed is not out of range in cost and can be purchased easily by someone looking to get into the business. </P> <P> Careful attention to detail is important, as a dusty lamp could easily be spotted. Desk side waste containers that are not emptied would be another area of obvious notice that the cleaning job was done in a haphazard manner. A restroom that is not left as a thoroughly cleaned space would stand out like a sore eye. The way to keep customers and get referrals is to do the job better than expected. This starts with the owner of the cleaning business and is part of the work ethic of the helpers who do the work. </P> <P> Spot-checking by the owner or supervisor is critical to keeping the work up to the standards promised. Promises made to the customer must be kept all of the time. If weather or an unexpected emergency prevents the work one night or weekend, the customer must be told why and when it will be completed. Communication with the customer is always important in a service business. </P> <strong>Finding a business and the money</strong> <P> Business brokers will be able to help you find businesses in this market that are for sale. The cost of buying a business or franchise is related to the customer base, the reputation of the business and the profitability. Starting one depends on how quickly you want to grow and the number of customers you can sign up to use your service. In either case you will need some money to run and own the business. The business will dictate how much is needed. Once you find a business for sale, the negotiations will be critical if you need the help of the current owner in order to make the purchase. If this is the case, the price will probably be higher to buy the business. Other sources for coming up with the money are relatives and friends, the bank and business lending. Each source has its own problems and pluses. The real meat of the matter is how much extra you will need to make the deal. </P> <P> Several concerns with this business are apparent. Can another owner assume the customers under contract? How much longer are the contracts in force? Is there a continuation clause in the contract that controls the fees that are charged to do the work? Is there a sales person that is responsible for getting new clients or was that what the old owner did for the company? This is important if the new owner is not a sales type of person. Someone has to speak for the company and make the company grow with new clients. </P> <strong>Conclusions</strong> <P> This could easily be a family business and could be started with a lot of effort and not a great deal of money. It could also be purchased and have an immediate cash flow. It comes down to the finances of the new owner. Money can be found for a really profitable business. This may mean taking in partners, silent owners or borrowing the money from one of the sources mentioned earlier. </P> <P> Often in business purchases the old owner becomes a source for financing the sale after a reasonable deposit. This source is common in many deals and without it many sales would never take place. It never hurts if there is a business broker involved to ask if the owner is receptive to taking back some paper to complete the sale. In most cases, the broker will have a good idea if this is possible. </P> <P> Office cleaning can be a great family business as it is done at night and must be done by trustworthy people. It also is a labor-intensive business so there is not a lot of cost of product associated with the business. </P> At acquireo.com, we have tons of <a href="http://www.acquireo.com/tag/cleaning.aspx">cleaning businesses for sale.</a> Check out commercial cleaning services, office cleaning services and carpet cleaning services below: <i><ul><li><a href="http://www.acquireo.com/tag/cleaning.aspx"> Cleaning businesses for sale</a></li> <li><a href="http://www.acquireo.com/tag/office-cleaning.aspx"> Office cleaning businesses for sale </a></li> <li><a href="http://www.acquireo.com/tag/carpet-cleaning.aspx"> Carpet cleaning businesses for sale </a></li> <li><a href="http://www.acquireo.com/tag/commercial-cleaning.aspx">Commercial Cleaning businesses for sale</a></li></ul></i> Acquireo.com - Acquireo Team Thu, 08 Nov 2007 01:44:52 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/the-cabinet-shop-business.aspx <P>A cabinet shop can be started in a homework shop, but in order to do it right a person would need to have a spacious place to do the work. They would also need to have real experience in cabinetry and wood working detail. A knowledge of how to do the work and an artist eye would make a terrific combination to some one looking to own a business in this field. </P> <P> The obvious way to get into the business is to buy an existing firm and capture many pluses that come with an existing business. Equipment, a place to do the work and a customer base are very good advantages when buying an existing business. A cabinet shop is really a creature of its reputation with contractors and the advertising it does to the homeowners. A good sales staff with a portfolio of quality pictures of prior jobs is also important in getting new business. The homeowner business will be far more profitable than the contractor business. </P> <P> Both of these customer types are important to keeping the cash flow coming into the business. Some owners in this business will take the contracting jobs just to keep their staff busy. They know they will make money on homeowner jobs. </P> <strong>Locating or finding a business to start or buy</strong> <P> Location of the business is not as important as a retail store’s place of business. The importance of locating the business is having the floor space to do the jobs that come in the door. Also the shop must have solid equipment and a staff that is good at their job. Experience in this business is gained by doing the work and not by book learning. A hand on knowledge is the only way to learn to be an artisan at woodworking. Most people in this field have been doing this kind of work since they were a kid. They may have learned it from their father or another relative. </P> <P> If you have been doing some small jobs for neighbors or small contractors in your home, it may not be that hard to expand your business as you have some valuable references. Slowly taking on bigger projects is a way to grow your business and still be stationed at home. At some point you will need to get a shop and add an employee or two. Be prepared to spend money and not make a great deal at first. You are at the mercy of customers needing to have work done in order to get the money in the door. This will grow by word of mouth and by some very pointed advertising. It may be a good idea to hook up with a good commission sales person to bring in the business. Again you will have to pay for talent as these sales people who can do the job are highly paid. </P> <P> Finding an existing business that is for sale is going to require a search. Talk with business brokers about their listings. They may know of a business in your area and they will have listings in other cities. This is not a common business that comes to market so you will have to be patient and maybe check with several business brokers. Once you find a likely candidate, the fun will start. </P> <strong>The art of the deal</strong> <P> The buying of a business is much more complicated than buying a home. There are many factors to take into consideration like, company profit, existing clients, number of people on staff, areas of possible growth, current financials and why is the owner selling. Is the asking price something you can afford and pull off without a huge growth in business? Will the current owner consider carrying paper to make the deal happen? All of these questions will need to be answered and many more. A business broker will know many of the answers to the business details. If he has done his job, he already knows the answers. A pro in this area can make a deal go far more smoothly than if the owner and the buyer was negotiating face to face. The point is let the broker earn the commission he will be paid if the deal goes through. </P> <strong>Money is needed to make the sale </strong> <P> If you have all of the money needed to make the deal, you are in the catbird seat. If you are going to need help with the purchase price, you will need to find a source to help you come up with the difference. A lender of some sort must be found. Your banker, a relative, a friend, a business lender from the internet or the owner himself may be willing to help raise the needed money. If the owner will take part of the purchase in a loan, then you have a start in getting together the funds to buy the business. If the owner is involved, the purchase price will probably increase some. Business buying lenders are found in great numbers on the internet and they are professionals at doing this kind of loan. The other sources mentioned are iffy, but they sometimes will make the short-term money available. </P> <P> Money is the name of the game in this kind of a purchase. It will make the difference in the price and the possible success of the venture. Be careful of too heavy of a debt load when buying a business. This can sink the project right from the start. </P> <strong>Conclusions</strong> <P> This is a unique business that the owner must bring exceptional skill to in order to be successful. Woodworking talent is at a premium to do this business right. A staff of professionals must be acquired in order to grow. Talent comes at a price and must be kept happy in order to keep them. The new owner must be a sales type person or be willing to hire a talented person in this area. Sales is the name of the game in any business and this one is no different. </P> <P><I>If you are planning to <a href=http://www.acquireo.com/tag/cabinet.aspx><B>buy a cabinet business</B> </a>, visit <a href="http://www.acquireo.com/tag/cabinet.aspx"><B> Cabinet Businesses for sale </B></a>, where you may be able to find a business near you.</I></P> Acquireo.com - Acquireo Team Wed, 07 Nov 2007 19:38:44 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/wine-and-liquor-store-business-with-great-location-can-be-cash-cow.aspx <P> A wine and liquor store is a retail business, which needs a good location. Traffic and a decent amount of floor space will make the difference between success and failure. Starting one from scratch like other businesses has some advantages such as upfront cost, but the established business has a built in immediate cash flow. Which one a person should do is a decision that should be made very carefully. This choice is easier if the potential owner has access to whatever money is needed. Building a new business may be very satisfying to the owner, but it is more difficult than taking over a thriving business. An established business has the customer base already and this can be a factor in almost guaranteeing success </P> <strong>How and where to get the information </strong> <P> How and where to get the information needed to find a store for sale or how to start one from the get-go is fairly easy these days. The Internet is loaded with information on this type of business. You can also locate business brokers with listings in this business class and stores that are advertising their sale on the net.Check out <a href=http://www.acquireo.com/tag/wine-store.aspx> <B>wine stores for sale</B></a> at http://www.acquireo.com/tag/wine-store.aspx to find a store near you.This is a common type of business that comes up for sale in larger cities all of the time. A person could almost decide where they would like to live and then find a business for sale. </P> <P> In some states, it’s harder to start this type of store due to local laws on liquor. This also could make it harder to find stores that are for sale for the same reason. Stores that have been started in more lenient times may be small gold mines and the owners may be reluctant to sell. If they will sell, they may want a premium for their business. As stated before, this is a business ownership situation that will take some careful study. A person needs to figure the best way to go about getting a business or starting one. A solid business broker can also answer a ton of questions and give very timely advice. There are also many books on this topic and this business type. </P> <strong>Buying the business and money</strong> <P> If you have a decent nest egg, you can probably pull off buying a business without much trouble. If you are a little short and have excellent credit you may be able to get money from a company that specializes in loans to buy a business.Another obvious source is the current owner of the business. If the owner can afford to carry back some paper to make the sale, they may do it for a premium price on their business. </P> <P> Starting from the ground up is a different matter in that you will need to get the business up and running and then do advertising to let the public know of the new business. This type of business depends on traffic and if the store is in a busy strip center or shopping center it should do ok. A busy corner location is even better for the store. People go to these types of stores as a convenience rather than loyalty. The prices are usually very competitive between stores and so price shopping is not very practical. There are also controls on the selling of spirits and this also keeps the prices in line between stores. </P> <strong>Wine as a special item</strong> <P> Wine is a matter of taste and preference. People who like wine love to find a vintage that few people know about before it becomes well known to wine lovers. A store that develops a reputation for bringing in new brands at decent prices will get some play by their wine loving customers. An e-mail alert system is very good at generating new sales from existing customers. This opens the door to many special wine tastings and weekend specials. Wine has a mystery to it that is not present with any other form of drink. A store owner that becomes a local wine expert will enjoy over a period of time a special place in the community. </P> <strong>One place to consider starting a store</strong> <P> If the city you are living in were growing rapidly, a wine and liquor store in a high traffic area that is in the heart of the growth side of the city would make sense. As stated earlier this is a convenience purchase type of product. People will not drive long distances to buy booze. They will stop at a store that is near their home and purchase what they need for the weekend. A population shift is going to open opportunities for this type of store. If the trend were well in place and substantially growing, this area would be a good location for a store. People shop near their home if they can since it is just easier to do. </P> <strong>Conclusions</strong> <P> Convenience is a big part of where people buy their liquor or wine. Most families will have occasions in their home when they will need to visit a store that sells these types of specialty retail products. A good selection of wines and liquors will go a long way toward making a first time visitor a repeat customer. You can add to the sales total by selling small impulse items that have a high markup per sale </P> <P> If you can find an existing store that has a good sales and profit history, this may be a better buy than starting a store. You will pay more for it, but the extra cost will be covered by immediate cash flow, which is very helpful in keeping the business successful. This is one of the basic rules in owning a business of you own. Some owners can afford to help in the financing of the purchase. This type of a deal is often far easier to put together and complete the sale. Remember one thing for sure. A retail business is always influenced by location, location and location. Location can overcome many negatives in a small business. </P> <P><i><B> If you are looking for wine stores or liquor businesses to buy, check out the business for sale listings we have currently. <ul><li><a href="http://www.acquireo.com/tag/wine-store.aspx">Wine Stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/beer-wine-market.aspx"> Beer and Wine Markets for sale</a></li> <li><a href="http://www.acquireo.com/tag/liquor.aspx">liquor stores for sale</a></li></ul></B> </i></P> Acquireo.com - Acquireo Team Tue, 06 Nov 2007 22:30:50 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/interior-decorating-business-opportunity.aspx <P>Customers can come from both the business world and in private homes. Locating these customers is a matter of your company’s reputation, advertising and being in the right place at the right time. This is a skill business that can be studied and learned in a formal setting like a college. Some people have a better eye for the business, but a smart business owner can hire great talent if they are good at bringing customers through the door. Getting started can be as simple as doing it out of your home or buying an existing firm. You will need the foundation of some education in the field. A degree in the field will give you creditability and prior jobs will allow you show a portfolio. Another way to get started in the business is to work for a successful firm and learn from the talented people in the firm. </P> <strong>How to get started on your own</strong> <P> Once you have the education and some experience, you can start your own business or buy an existing one. The problem with buying an existing firm is the business may be a captive of one talented owner. If the customers are seeking out the company due to the owner, then the reputation may not be transferable to a new owner. This is always the problem when buying a business that depends on creative talent in order to make sales. If you have a successful history, you may be able to pull it off, but if you are that well known, you may be better off to just start your own company. This decision should be studied very carefully. What will you gain by going down either path? The other problem with buying an existing company is all you are buying is the reputation and maybe some open doors to corporate clients. This is not like a retail business where you are buying customer traffic. If you really have the talent to deliver creative jobs, then the way to go may be to just start your own company from the start. A firm with several talented employees may be worth the gamble if they will stay with a new owner. As you can see this is not an easy problem to solve and each situation must be looked at on its own merits. </P> <strong>It takes money to start or buy a business</strong> <P> If you have a solid amount of money, you can either start a business or buy a business. If you have little money, but a lot of talent, you can start a business out of your home. This is a much slower process to build a business, but for some potential interior decorators this would be the only way they can get a start in the business. The point of this section is that there is no way around the fact that a person will have to take the hard way to own a business if they do not have the funds. If they do have the funds they can probably do either course to owning a business. The caveat is that when buying an existing business in this industry the company may be closely tied to the current owner who has a reputation in this industry. The buyer must be sure that buying the name is worth the price and can be used to continue the business. If it is a larger company with a staff, the chances of continuing will be easier as the staff could continue to turn out the work and maintain the standards that made the company a viable purchase. </P> <P> Starting a business after gaining the knowledge and the experience either formally or by working in the industry is the way most new owners get involved. The small start from home is the way many get into this business and begin to build a reputation. Word of mouth referrals seem to be the best way to get new clients in this industry. Advertising is a possibility, but trade shows may be a better way to get your message out to the business community. Home shows would be a way to get the message out to homeowners </P> <strong>Trade experience versus formal education</strong> <P> Formal education at a school with a great reputation is a good start in this business. Learning the business by working in it is another way to learn the trade. Both will work, but having them both will add to your creditability. Knowing what works and how visual and technical problems have been resolved is invaluable experience. Developing the eye for the business and the creativity that is needed to build a reputation can be partially learned, but it is an innate talent with many of the more successful interior decorators. If you are in this category, then dreaming of owning a business may be a lot easier for you than it would be for someone who is less talented. </P> <strong>Conclusions</strong> <P> Interior decorating is a business that comes with an eye for style and class. Businesses are willing to spend good money to put the right image out to their clients. Moneyed homeowners are also willing to spend to get the right feel for their home. Some homeowners have no idea of colors or furniture style and really do need help. Professional help can make a difference in the impression a business makes on clients when they visit the office. Style and quality carry the feel of competence to the visitor to the business. No coordination makes for a jumbled appearance and a scattered mind. This may not be true, but people due follow their impressions when doing business. The biggest factors in this business are knowledge, experience and talent. Formal training will help any one that wants to make this their life’s work On the job knowledge will provide a basis for doing the work, but the formal training allows for better use of innate talent. This is a unique business that will attract a special and creative person. </P> <P>Find existing <a href="http://www.acquireo.com/tag/interior-decor.aspx"><strong>interior decorating businesses for sale </strong></a> at http://www.acquireo.com/tag/interior-decor.aspx</P> Acquireo.com - Acquireo Team Tue, 06 Nov 2007 02:10:24 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/book-store-business-opportunity-.aspx <P>A retail store that buys and sells used books, rents books and sells new books is a profitable possibility for the right owner. If you can find one for sale or a great location with a rent that is affordable, then this business will have a chance for success. Like most retail businesses this type of store needs to have traffic to succeed. The problem with most of them is the chain store competition has forced them to sell without adequate margins in their selling price. A store does not have to beat the price of competitors; it just has to be competitive. </P> <P> New book sales are going to be a tough one to crack as the chain stores can sell at very good prices. Used books on the other hand are merchandise that there may be no competition at all. Buying books and giving credit for them toward the purchase of other books is a good way to get inventory at little out of pocket cost. </p> <P> Renting books for a week at a time with reasonable deposits is a way to keep the cash flow up without having to pay for more inventories. Keeping cash flow coming into the business is the key to any retail operation. </P> <strong>Finding an existing store for sale</strong> <P> The Internet is a good place to start looking for existing bookstores that are up for sale. There are not a huge number and they are all over the country. A person that is looking to find a store will probably have to be willing to move to buy an existing business. The price of the store will not only be prior year’s sales history, but also the current inventory and any computer assisted buying and selling information. A potential buyer would be wise to spend some time with the current owner to get a feel for the customer base and the daily sales volume. Also look at where the chain bookstores are in relation to the store that is for sale. Are the other businesses in nearby locations solid and likely to stay there in the near future? Are they the type of business that will generate traffic for the store? </P> <P> Contact any business brokers that seem to have a few bookstores for sale. They may know more about the business and could be a great source of quality information that would help you in your search. A good question for any broker is how the stores are deciding on what their current inventory is worth. This business also would seem to cry out for some current owner financing. A bookstore owner is an unusual retail person and is usually attracted to the business due to a love of books and reading. This limits the potential buyers and the seller may be very willing to carry back some paper to make the sale happen. </P> <strong>Starting a store from scratch</strong> <P> The advantage of starting a new store is that you can slowly build up your inventory by trading and handing out credit for books a customer brings into the store. If you can find a decent location at reasonable rent this could be a way to get into the business. The startup will have to spend money to get customers into the store, as they will not have any built in clients to start. This means that cash flow will be slow and will build up over time. The owner better be able to live for a while without any money from the store for personal use. </P> <P> Fixtures are going to be a healthy expense as books are heavy and will need to be displayed in order to sell them. Twenty dollars a square foot of display is a good ballpark to use to figure the cost of fixtures. Book information can be readily obtained on the Internet, but this means you will need a fast connection and a solid computer system. </P> <P> Advertising the new business will be a high priority for the business. This is expensive, but it must be done. Think about giving each customer a card to give to a friend to invite him or her to the store. This will help a little on the business expense of bringing customers into the store. Check out the library and university sales that happen each year. They may be a good way to get some quality titles that would not come in via customers. </P> <P> If you have friends who are writers, have them come in for a book signing and/or talk. You will be surprised at how people will come to hear a local author. Some advertising may be necessary to gain the audience. </P> <P> Another way to get free publicity is to get a radio station to talk about books or a library to help with drawing a reading crowd. </P> <strong>Conclusions</strong> <P> Bookstores are a unique retail store. The chains have been tough on many of them, but there is still a niche market for those that are willing to work to find them and exploit them. People who love to read are a loyal group if they can be attracted to your store. Books and readers have a bond like men and cars. It is hard to understand, but it can be taken into account and used to develop a list of clients. Finding or starting a business is a decision that will have to be weighed very carefully by those that are interested in owning a bookstore. Bookstores do seem to have an energy that is not found in other retail stores. Using this to advantage is part of owning a successful bookstore. </P> <P> Finding the right deal is part of the search and can make the difference between failure and success. People will not beat down your door to spend money and you are going to be forced to be proactive in getting customers in your store. </P> <P><I> If you are looking for existing book store businesses we have them here at <a href="http://www.acquireo.com/tag/book-store.aspx">Book stores for sale</a>- http://www.acquireo.com/tag/book-store.aspx</I> </P> Acquireo.com - Acquireo Team Tue, 06 Nov 2007 01:34:18 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-or-buy-a-gun-shop-business.aspx <P>A Gun Shop is a unique business that is heavily regulated by both the federal government and state and local laws. This niche retail business is one that takes prior knowledge to run well. The shop owner must be able to answer a variety of questions. Selling guns, rifles, shot guns and offering a repair service can be a profitable business for a small shop. Most of these shops do not need a prominent place of business, as this is a niche retail business. This is the kind of business that could be run from a ranch or a small farm. </P> <strong>Finding a business for sale</strong> <P> Contacting business brokers or doing a search on the Internet can help in finding one of these Gun shops that is for sale. There is not a huge number for sale as the business is unique and can be run by a gun lover for a long time past retirement. A person that has a passion for guns and is a frequent gun show visitor may be the ideal person to own such a business. These shows may also be a way to get a lead on a store that is for sale. </P> <strong>Starting a Gun Shop from scratch</strong> <P> A shop could be started almost anywhere near a city with a reasonable number of residents. The need for walk by traffic is always nice to have, but people will go out of their way to travel to a well-stocked Gun Shop. The owner or someone on the staff must be knowledgeable about all types of guns and weapons. Also the people in the shop must know how to get a gun repaired for the customer. If they cannot do it for the customer, they must know where to send the gun to get it repaired. A new owner must be conversant with the laws on selling guns. They must have the Federal registration and follow the rules for reporting sales to the letter. This is a very stringent requirement. The local state and city rules must be followed and again they are enforced. A well-stocked gun shop is going to take some money to buy inventory. Contacting well-known gun companies will also be a good way to find out more about running a Gun Shop. </P> <P> Another suggestion for learning the business is to work for a while in an existing shop to learn the business. If you decide to buy an existing shop, the old owner could stay for a while to help you learn the operation of the shop. </P> <strong>Contact name manufacturers for more information</strong> <P> If you want to own a Gun Shop you could find some useful information by contacting some of the name manufacturers about their products and the sale of them. Some will offer solid information on the sale of their products. The more knowledgeable you are about various guns the more confident the customers will be when shopping in your store. Buyers in these products lines are asking questions to see what you know and validate what they think they know. Knowledge is what a Gun Shop customer is looking for from a store owner or the staff. </P> <strong>Buying an existing business</strong> <P> Like most other businesses there are strong advantages in buying an existing business. The first and probably the most important advantage is the existing business will have a client base that has a history with the store. If the old owner will stay awhile and introduce you this is even better. The existing owner may be willing to help finance the business by taking back some of the purchase price in paper. Usually when this is part of the transaction, the price will go up some. The customer base also means that the new owner will have an immediate cash flow from the business. If you have the mailing addresses of the customers or an e-mail address, the change of ownership is a good reason to contact the existing customers. If you have extensive gun knowledge, it may be wise to mention that in the letter or e-mail that is sent to the customers. </P> <P> Also a mailing to possible gun owners may be wise to let them know the business is under new management. Lists can be purchased by zip code and would be worth the effort. An existing business has the advantage of reputation and being located at an address for a certain length of time. If the business will be moved to a new location, the customers should be made aware of that fact. </P> <P> The rule in buying a business is that an existing business has a better chance of success than a new startup business. The built in customer base makes a huge difference in the success rate of a purchased business. If the buyer can find the right deal this is the way to go, if the price is right or the terms. </P> <strong>Conclusions</strong> <P> Gun shops are a unique business and are not as readily started or sold. Other types of retail businesses are usually rather easy to locate and buy. These businesses are often run as a matter of passion as well as a way to make money. The owners are very careful whom they will sell to, as they want to do right by their customers. Money alone may not be the final answer. That is not seen as often in other types of businesses. </P> <P> The other different factor in a Gun Shop is the stringent rules that must be followed first to be licensed and then to sell to the public. ATF inspections can be very tough if the owner has not really done a good job of following the rules.Paper work is the big hang up in this area. It must be done to the letter. Local and state laws can also enter into how the business must be run. A potential owner should be very aware of all of these requirements when going into this business. </P> <P><i>If you are looking for existing gun shops for sale,we have some businesses right here: <ul><li><a href="http://www.acquireo.com/business-for-sale/81770.aspx">Guns and Accessories Store for sale-Oklahoma</a></li> <li><a href="http://www.acquireo.com/business-for-sale/79951.aspx">Gunstock Manufacturer for sale-CA</a></li> <li><a href="http://www.acquireo.com/business-for-sale/72841.aspx">Gun Shop for sale-FL</a></li> <li><a href="http://www.acquireo.com/business-for-sale/2912.aspx">Gun Store for sale-FL</a></li> <li><a href="http://www.acquireo.com/business-for-sale/2892.aspx">Pistol Range and Gun Store for sale-NY</a></li> <li><a href="http://www.acquireo.com/business-for-sale/3502.aspx">Gun Shop for sale-NY</a> </i></P></li></ul> Acquireo.com - Acquireo Team Thu, 25 Oct 2007 20:15:22 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/vitamin-store-business-opportunity.aspx <P>Natural health buffs are great repeat customers and a well-located shop will do well if the shop has competitive pricing and knowledgeable help. These customers will become repeat customers for the store if they are satisfied they are getting good service and fair prices. Many of these customers are very knowledgeable about what they buy and why. Since this is the case, the staff better be very well trained, so they know what they are talking about. These stores can be part of a chain outfit or an individual store. A prospective owner can buy an existing store or open a new one. A store with a good location, fair prices and knowledge about the products will have a chance to do very well.</P> <strong>Which store idea is best for you</strong> <P> Your dream is to own a health food store and you are looking into how to make that happen. Two quick ways to get information is use the Internet to see what kind of stores are for sale. Also you would be wise to speak with several business brokers to see what they have available and the current pricing. Franchises are also available in this industry. You can check them out online and contact them direct for more information. </P> <P> The other way to get into this business is to start a store from scratch. If you are knowledgeable about the business, you can do this by locating a shop space for rent in a high traffic mall and getting your wholesalers lined up. The problem with this idea is you need to have prior knowledge and the ability to get the store up and running with no built in cash flow. This means that you will probably not be able to take any money out of the business for a year or more. </P> <P> An existing shop is usually a better bet for success, as you will have some cash flow from the beginning of your ownership. The base of clients is an important asset to an existing business. Cash flow can make the difference between success and failure of a new owner. </P> <P> Check out all of your options and study the advantages and negatives. A business broker is a good source for getting information for this analysis. Read the franchise literature also as they are in the business of helping their owners prosper. Any source of information may help you make a better decision for your circumstances. </P> <strong>Financing a business</strong> <P> If you have the cash or the credit line in place then you have resolved some of the new owner problems. If you are short of funds and need help from a current owner or from a business lender it would be wise to let the business broker know the facts up front. These brokers are pros at solving financing problems. Also the current owner of an existing business may be willing to take some of the sale price in paper. They also may be willing to stay a while to help train you and give you some on the job experience. If the two of you are compatible this can be invaluable. A new business from scratch that is not franchise related will require knowledge on your part to pull off successfully. You will have to do every thing yourself and there will be no advisors on the side. This way of breaking into the business may be only for the limited few who really know the business. A person that has worked at another store may be just the candidate for a startup store. Practical experience, ordering knowledge, product information, which is gained from this prior employment, could make the startup easy for such a person. </P> <strong>Learning the business and what you can say</strong> <P> This business is tricky in one respect; you have to be careful what you say to a customer. Any kind of a medical claim needs to come from a source other than you. Most good shop owners in this business use references to answer customer questions. A statement in a book by an authority will give you legal cover in most instances. Let the customer read for himself or herself and do not offer your opinion even when you are sure of the answer. Leading a customer to a reputable source is good business and keeps you from practicing medicine. The fact that you knew where to find the answer will not be lost on the customer. </P> <P> Read all of the time for your own knowledge and attend seminars and meetings conducted by experts is a great way to improve your personal knowledge. The more you know, the better you can help your customers. </P> <P> Your knowledge will also help to gain repeat customers. These customers are critical to the growth of the business. Every customer that becomes a repeat customer almost guarantees growth over the time. Repeat customers are also likely to refer other customers to your business. </P> <strong>Conclusions</strong> <P> The herb, vitamin and health food businesses are a growing industry around the world. People want to stay healthy and are willing to spend their money to make that happen. They know that they can prolong good health if they take care of themselves. It is obvious that this is taking place. Look at the number of people who have quit smoking and are eating food that makes for a healthy diet. Long-term health has become a very serious desire of the population, as it grows older. The Internet is filled with websites promoting good health, as well as TV and magazines. Many of the celebrities have also taken good health to heart and are promoting the merits of it to all who will listen to them. </P> <P> All of this publicity has made owning a store in this business a profitable business to own. There is a side to the business that comes to the owner that is not measured in money. That is the feeling a person gets by helping someone that needs help. </P> Acquireo.com - Acquireo Team Thu, 25 Oct 2007 02:35:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/the-copy-store-business-and-its-opportunities.aspx <P>Combine a great location with walk by traffic, with quality equipment and a friendly staff for a successful copy shop. This combination makes for a profitable copy shop that can be bought or started from scratch. In either case, location is very important to the cash flow of the business. Many people need to make copies for all sorts of reasons. They will come to a store that is an easy drive and the store must have reasonable prices and solid equipment. These customers can be individuals or business people. It does not matter, as they both need good copies of an image or a text document. These new color copiers have increased the possibilities for customers to use your shop. The new copiers have also reduced the price of full color copies. </P> <strong>Buy or start a store</strong> <P> This is one of the many decisions a new owner must come to grips with early in the process of acquiring a store. There are pluses and minuses to either way of becoming an owner. One of the quick ways to gain knowledge is to contact a business broker. He will know stores that are for sale and he will also be able to give you an idea of what it will cost to buy an existing store. The advantage to buying an operating store is they have developed a clientele, which brings in cash flow. Immediate cash flow is a consideration for buying an existing store. The possible negative of this deal is the price you will need to pay to get the business. Most existing businesses will sell for more than starting one from scratch. </P> <P> Another item or suggestion in this case is the age of the equipment and its condition. Modern copiers are very efficient and turn out superior copies. The new color copiers give fantastic color copies that are brilliant in color and appearance. If an existing store does not have one, you will need to get one immediately to draw in the traffic. </P> <P> One other advantage of an existing store is you may get some help from the current owner in the financing. The old owner may be willing to take back some paper to make the deal. </P> <P> Starting a store from scratch may cost less in upfront money, but the owner will have to spend money to let the public know of the store is now open for business. It the location is in a high traffic strip mall or center, the advertising may not have to be as extensive. Good signage is critical and will cost some very real money. Attracting businesses around your store is another way to make the store grow. </P> <strong>Business copies, collating, reports and faxing </strong> <P> Get businesses around you to use your multi-copy service to improve the your way to make money. Multi-page documents will need to be copied and collated for the customer. Some businesses will want these reports to be bound with the spiral binding. All of these processes can be charged for and will add to the overall profit of the business. Make sure that all of the customers that come into the shop know all of the services that you offer. You never know what they may need or whom they know. A simple services card is all that is needed to inform the customers. </P> <P> Faxing documents is another high profit service. Few private individuals are set up to fax documents. Some businesses sometimes will need this service for various reasons. Their machine is being serviced. They need to send an extended message or they just do not fax very often. Whatever the case, the cost of faxing is small and the profit is substantial per fax job. Individuals will need to have something copied and then faxed. This makes the job per person even more profitable. Building up the business customers will make the store a high return on jobs and the individuals will come when they need something done or they will refer their friends if they are well treated. The secret to this business is the repeat customer that comes back as needed. </P> <strong>Mailing service or package service</strong> <P> Both of these businesses fit well into the copy store business. Take a hint from the franchise operations that are doing the same thing as you can. All you need to do is get set up to handle this extra service. Some businesses can get by with some part time help at certain times of the day or night. Others may find they need full time help. Every service that is offered has the chance to add customers for other services that are offered. The customer is in the store and will take advantage of the convenience. </P> <strong>Conclusions</strong> <P> Almost every adult is a possible customer for a copy store. Individual customers and businesses will all find times they are in need of using most of the services offered above. Since there is a universal need for these services, this means that either type of customer will visit a well-located store during the business day </P> <P> Bindery and collating are not usual office practices unless the business needs this done all of the time. Most businesses will out source these jobs to a professional service. Large copy jobs are sent out just to get them done faster and more efficiently. If there are a number of pages per document set, this means collating also and this is done faster and more accurately by the correct equipment. When printing is needed on both sides of the document, a copy shop with the right copiers can do this job with ease. </P> <P> All of the mentioned services are found in many franchises and they could be duplicated by a non-franchise store. Profitability is not in the name alone, but in the location and individual services the store can offer to the customers. Friendly and helpful staff is very important in this business. Not all customers know how to run the machines and may need help. </P> <P> <I>If you are looking for a <a href="http://www.acquireo.com/tag/copy-store.aspx"><B>copy store for sale</B> </a>, <a href="http://www.acquireo.com/tag/shipping-and-packaging.aspx"><B>shipping and packaging store for sale</B> </a>or a <a href="http://www.acquireo.com/tag/printing.aspx"><B>printing business for sale </B></a>, you are welcome to check them out at Acquireo.com-<a href="http://www.acquireo.com/tag/copy-store.aspx"><B> Copy Stores</B></a></I> Acquireo.com - Acquireo Team Wed, 24 Oct 2007 01:22:45 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/the-art-gallery-and-gift-shop-business.aspx <P>A business that includes a picture framing business, an art gallery and a gift shop is a business that has an excellent chance of succeeding. If the location is high traffic this will get potential customers to stop and go through the gallery. If your shop is located in a tourist area you may get an entirely different group to visit your store depending on the time of year. </P> <P> The gift and framing business should give the store a constant cash flow and the gallery will help the bottom line each quarter. Pictures and art works are an individual like or dislike. What one person would find a must have item another could pass on without a second thought. This means in the gallery you will need to have some variety of art and pictures. </P> <P> Two attributes are needed to be a successful gallery owner. You must be passionate about art and you must be a good businessman with really good people skills. Negotiating the sale of an expensive piece of art is not a take it or leave it type of sale. It takes some skill and a willingness to deal to make the sale happen. </P> <strong>Start a store, Buy a store, Buy into a Franchise</strong> <P> These are three of the ways to get started in this business. Starting from scratch is the least expensive in start up cost, but also the most difficult to make successful. Buying an existing store is wise for some people as there is already some cash flow and a customer base. Buying into a franchise may offer some advantages, but the buyer should really study the franchise offer and make sure they can live with any restrictions that are part of buying into the franchise. </P> <P> All of these options have merits and a plus and minus check off system will let you understand better the difference between the ideas. The amount of money you have available for the startup or purchase will also be a determining factor on which way you go. Buying a successful shop that has a clientele is not a bad way to go and may offer the greatest chance of success. Also the current owner may be willing to finance part of the sale price. </P> <P> A business broker could be of help in finding businesses that are for sale. They would probably be of help in locating potential properties that are up for purchase. They also may be able to give you some solid advice on how much to pay. </P> <strong> Where to find items to sell </strong> <P> Estate sales, eBay and the Internet offer items that could be purchased by a knowledgeable buyer. If you know what the market is looking for or are good at seeing a fad develop, you could find some bargains in these venues. There are many Internet companies that will offer you smaller items for the gift shop and for impulse type purchases. Unusual and visual are two of the prerequisites for items for your shop. People are attracted to the unusual and the more visual the item is the more likely the sale. </P> <P> Another way to find items for sale is to build up a list of artists that are willing to let you represent their work. Meeting local art teachers and art groups may also let you find an artist before they become famous. Art and craft fairs and shows are another way to find items that could be sold in your shop. </P> <P> Join any mailing list you can find for people in this business. The more information you have, the better you are able to stay up with what is happening. </P> <strong>Location is important</strong> <P> Location is always important in any retail business. If you wish to sell at the higher end of the art world you better plan on having a prestigious address. Tourist type shops can be on a retail street or in a shopping strip. Good traffic is the key to being successful. You need the walk-by traffic to get people in your shop. The casual shoppers can turn into a customer that spends some real money if your items catch their fancy. You never know who will pull out a credit card and buy the most expensive item in the shop. </P> <strong>Advertising the business</strong> <P> This unusual business lends itself to mail campaigns and e-mail notices. Local radio and TV may work, but you will need to try it on a small level first to see what kind of a response you get from your ads. </P> <P> A current Internet site is a great way to push the new items in your store. You must have the capability to change your web pages yourself, as you need to make the changes. A stale website is never a good idea. It must be kept fresh.You may want to see what other shops do to gain business if you have some contacts in the business. </P> <strong>Conclusions</strong> <P> This business is different and can be a very interesting way to make money. Inventory turnover will keep people coming back to see what you are currently displaying. One-man shows and special types of art can also bring in the old and new customers. Finding a constant source of new items is the art of running a successful business. New ideas, art pieces and gift items are necessary to stay current in the business. This is the only way to get old customers to stop in and see you again. If your items are stale, the old customers will grow bored with seeing the same thing each time they stop. </P> <P> New artist and new art pieces will always be a new experience for customers. If you are lucky enough to find an up and coming artist, your shop could become very busy if you are representing the artist. Unknowns can be valuable too, as customers always want to be the first to recognize a new talent. </P> <P> The range of possibilities in this business is only contained by your imagination. This is the great part of this kind of a business. It is always changing and keeping your interest in what is going on in the creative world.</P> <P><I>If interested in owning an existing art gallery or gift shop business, visit <a href="http://www.acquireo.com/tag/art-gallery.aspx"><strong>Art galleries for sale</strong></a> or <a href="http://www.acquireo.com/tag/gift-shop.aspx"><strong>gift shops for sale</strong></a> at acquireo.com </I></P> Acquireo.com - Acquireo Team Mon, 15 Oct 2007 13:54:00 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/so-you-want-to-go-into-business-for-yourself.aspx <P>Owning your own business is a dream that many people have, but only a few will put in motion. For those that want to capture the dream, there are paths that can be followed which will make these dreams come to pass. How to get from an idea of ownership to the actual running of your own company is detailed in this article. </P> <strong>Deciding the type of business you want to own</strong> <P> This decision is complex and sets in motion for many the success or failure of the business. What type of business do you want to own? Do you have the money to start or buy such a business? If you do not have the total amount needed, can you get it from some source? Do you have personal experience in the business you would like to own? Is your work life likely to help you in your business venture? Can you survive the first year of operation while you get the business on a solid footing? Are you going to need to take money out of the business in order to live? </P> <P> All of these factors go into the decision of the type of business you would like to own. Knowledge of the business type and the money you have available are two of the first things a potential owner needs to look at to become an owner. Are you are going to buy an existing business or start one from scratch is another element that must be studied. There is usually a difference in cost between buying an existing business and starting one up from the ground up. The reason for this price difference is the cash flow the existing business is pulling in currently. Another item to be considered is to buy a franchise or not. Is your knowledge of the business from work experience or does it come from a hobby or a small sideline business. </P> <strong>The decision as to type will be controlled by funds</strong> <P> The amount of money available will control the decision for the type of business you end up owning. This is the time and place for a reality check between what is possible and what is your dream business. Most owners of a business come to this point in the decision-making early in the process. Of course if you have unlimited funds then almost anything is possible. The real world scenario is the money available will dictate in most cases what you can do or attempt to do. Careful planning and honesty to your self is critical at this point. If you are going to have to live off the business in the first year, you better plan for that necessity. </P> <P> How much capital after purchase is it going to take to run the business without huge incoming sales? Once these factors are faced and decided upon the work of finding a business for sale or starting one from scratch is in play. </P> <strong>The use of a Business Broker</strong> <P> At this point it may be wise to speak with several business brokers and see what they can suggest or advise you to look at. They have a good idea of what the markets are like and they will be a great source of current information. They will know about franchises and independent businesses that are for sale. They will be able to give you very good ballparks on the money needed to buy the business type you want or what it would take to start one. Take advantage of this excellent source </P> <strong>Owner financing of a business</strong> <P> Many businesses are sold each year with the help of the current owner. They are willing to carry back some of the purchase price if the buyer cannot come up with all of the money needed to make the purchase. When this is part of the deal, the sale price is usually increased to sweeten the deal for the seller. It is an inducement for the seller to make the deal. If the terms are fair and the business can carry the extra payments then a deal may be struck. This negotiation is tricky and must be fair to both parties. If the deal is unfair to the buyer, the best course of action, if better terms cannot be arranged, is to walk away from the sale. Poor terms and an unfair financial burden can result in a failure of the business or a forced sale. This is a no win situation in the long run for both parties. If you cannot get help from this source, then you can try business lenders, but they do not have the incentive that a seller has to loan you the money. If you can get a lender interested you may be able to make a better deal for an all cash buyout. </P> <strong>Conclusions</strong> <P> Making a dream of owning your own business happens can be done if you are realistic and have some money. You need both to pull it off. Remember that owning the business is not a guarantee that you will be free from a boss or worry. </P> <P> Business ownership brings its own set of worries and problems. You are the decision maker and you must face up to making the choices. There is no one else to do this job. The customers in a sense become your bosses, as you will depend on them to stay in business. Getting them to deal with you and spend money is the art of owning a business. There are many sources you can read on how to make this happen. Some of them offer very good ideas that you can put into play immediately. When you were thinking about the type of business you want, this should have been part of your decisions making. You have to know as much as you can before you own a business in order to have a chance at success. Some luck is involved, but hard work will usually be the difference in a business. </P> Acquireo.com - Acquireo Team Fri, 12 Oct 2007 00:17:11 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/when-hiring-a-chef-for-your-restaurant.aspx <P>Hiring a chef for your restaurant is not going to be as easy as you think it will be. An outstanding chef can demand a sizeable compensation package and may only be good at preparing outstanding dishes and be very poor at managing the kitchen. Finding one that can do both is the trick. </P> <P> Chef schools are a good source for finding newly minted chefs, but they will rarely have any management experience. If you can continue to run the kitchen as the new chef learns the ropes of leading the staff, then this may be a possible solution. If you want someone to take over the kitchen from top to bottom, this is going to cost some money and your restaurant may be just a resume-building job in the eyes of the newly hired chef. This is a sticky problem for a restaurant owner. If you are off the beaten track, this will make it harder to attract a really good chef, unless they are just tired of the rat race in the big city. Small towns are not a show place for a talented chef. If their intention is to build a reputation for future use, then your restaurant will not fill the bill. </P> <strong>Chef schools</strong> <P> Chef schools are expensive and are supposed to be a three-year curriculum, but are often only a one-year course before the student is offered a great opportunity with a big hotel or casino. This competition for these young people will make your offer more difficult to stand above the rest. There is such a demand for quality chefs and the supply is limited. Newly trained chefs can prepare great food, but they have no experience in running a kitchen or managing the staff. This part of a chef’s job takes time to learn and you will have to be the teacher of how to manage people, buy for the kitchen and plan for easily delivered meals. If you are not in an upscale area, then you will face the problem of the chef wanting to become known and your restaurant not allowing for that to happen. These people realize that there is a difference between being in the big leagues and playing in a small market. The other factor in finding a chef from these schools is the students are constantly offered jobs in restaurant chains and hotel chains. Your offer to them will have to be very competitive and enticing as to the freedom you may be able to offer compared with a chain operation. You still will not gain a chef with managerial experience. </P> <strong>Listing job on the web</strong> <P> There are websites that allow restaurant owners to post jobs for chefs. These sites are another possible source for finding a candidate for your business. The advantage to the owner of the restaurant is they can list the requirements of the job. Job requirements can eliminate some people who would not have qualified for your job. The chefs who do respond will have different levels of experience and capabilities. Running the kitchen, ordering the ingredients and being able to put out quality food are important elements for a solid chef. Imagination and food knowledge will also come in various levels. Finding a chef you can afford that can also do the job is going to be like trying on shoes. Some will fit well and some would never work out. Those that fit will need to be looked at as to working compatibility. A candidate may have all of the requirements and be very difficult to work with over time. This situation will not work out for the restaurant owner. </P> <strong>Compensation</strong> <P> Structuring the pay to the chef can be worked out in many ways. Straight pay for hours is the obvious way to pay the chef. This may not work, as you cannot come up with enough pay under your current situation. Performance pay connected with a guarantee is one of the ways you may be able to compete with the big boys. Sales improvement is easy to calculate and is an obvious way to show growth of the restaurant. </P> <P> A percentage of ownership for the right person may also be a way to get a really capable person. This also has the advantage of binding a quality chef to the operation. In the right situation this may offer the best option of all. </P> <P> A contract between the owner and the chef is not unusual. The contract will detail exactly what the duties are and how they will be paid. Any really qualified person is going to demand that the agreement be put in writing so that both parties know what was agreed to between the owner and the chef. </P> <strong>Training of staff and education</strong> <P> A good chef will by example show the staff how to complete the work in the kitchen. He will know all aspects of the job and be able to show or demonstrate what he wants from the kitchen staff. If the chef is also a good teacher, you have a winner as this talent can be multiplied. Teaching the staff the correct way to run a kitchen will increase efficiency and lower cost. This will help the bottom line of the restaurant. </P> <P> A chef that is worried about giving up his secrets is detrimental in the long run. You learn by doing. Asking questions and trying a new ways of doing things can find improvements. New specials are discovered this way all of the time in quality restaurants. Sharing knowledge and answering questions helps all involved grow. New restaurant dishes are the result of experimentation and trying out a new idea. If this is not done, the growth will be slow to non-existent. Restaurants live on reputation and quality of food and service. The reputation is not a given and must be earned over time. </P> <strong>Conclusions</strong> <P> Finding a chef is not like hiring wait staff. Many people can serve food. A good chef must be looked for, given reasons to join your restaurant and then compensated in a way that meets the competition. This will be a major expense to a restaurant that may or may not be covered by an increase in business. It could however give the owner more free time and not be such a slave to the business. Some owners would be happy with that trade off. Others want the talent of the chef to increase the sales and add to the bottom line. </P> <P> Advertising on the internet and in larger city newspapers may be useful in getting some possible candidates. Chef schools could also be a source for chef for your business. The problem most restaurants have is the chefs are in demand and can be very difficult to hire. Their expense will not be small as their reputation or skill will be what you are hiring and not everyone can do the job. This accounts for the shortage of good chefs. Schools that teach are constantly raided for half trained chefs. This makes finding a chef you can hire and afford a problem that you may have to spend a lot of time doing. The chefs have the advantage at this time. </P> Acquireo.com - Acquireo Team Thu, 11 Oct 2007 20:51:28 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-an-ebay-business.aspx <P>eBay has become a great way to sell all kind of merchandise on the web. A person can start out by selling personal items they wish to get rid of and graduate to selling merchandise that they find or contract for. An eBay business can become a full time business and for some be a very profitable enterprise. </P> <strong>How to get started on eBay</strong> <P> eBay has a website that can be found on the Net that describes exactly what a potential seller on eBay needs to do. There are many other sites that offer to help and or teach you how to be successful on eBay. There is obviously no lack of information and websites that are willing to help you get started. </P> <P> This information will help any new eBay seller get started and hopefully reduce the learning curve toward success. There are many missteps that can make getting started filled with potential errors. All new enterprises are learning situations and eBay is no exception. </P> <strong>What to sell</strong> <P> There is an alternative to selling your own merchandise on eBay. Drop off eBay stores have become a creative way to enter the eBay business. These stores advertise that they will help sell items for you on eBay. The reason this works is people do not know how to use eBay or they are too busy to try selling anything in this way. The customer with something to sell is willing to pay a fee for help in selling whatever the item is. This has big advantages to the storeowner. They have a constant flow of new items to sell and they do not have to spend any money buying the items they then sell. New inventory keeps buyers coming back to their listings on eBay. </P> <P> If you do not want to sell other people’s items, you can buy items and sell them for yourself. College auctions of equipment, state and city auctions are excellent sources for merchandise that can be purchased for a song and sold for a decent amount. A fellow I knew bought a palette of Hulk Hogan VCR tapes and sold them all on eBay for $5 each. His cost per tape was about 5 cents each. How he knew he could make money on them is a mystery. It may have been that he could buy them so cheap he figured he could not lose. Stories like this are common for people who go to these auctions. When the equipment that is owned by the military comes up for auction there will be some real bargains. Items like this will be very profitably sold on eBay. </P> <strong>Specialization selling</strong> <P> The success stories on eBay seem to have one common factor for those that sell merchandise. They specialize in a very specific area of items they sell. It could be clothes, toys, diamonds, cutlery, art pieces or any thing you can think of selling. It is possible on eBay to build a reputation for selling things that are always in a similar category. If you want to branch out, there is no reason that you cannot start a new company and list the new products under that name. </P> <P> If you enjoy a solid eBay reputation, your reputation will help get you business. The reputation is made up from timely service and fair treatment of the customer. The delivered merchandise is what it was claimed to be. All three of these elements are critical to a good eBay reputation. </P> <strong>Learn by reading</strong> <P> There are many books about selling on eBay in a successful way. Reading these books will speed up the learning curve and prevent common mistakes. Some very successful eBay business people have seminars that will enhance what you have read. Websites on the Net are also available for free and at modest prices to learn the ins and outs of eBay. Knowing what to do and how to do it is worth time and money. Emulating pros is not a bad way to learn what to do and how to do it. Ebay pros are willing to give solid advice in books, websites and seminars. There is no better group to learn from in the eBay business. </P> <strong>Finding things to sell</strong> <P> Finding things to sell other than through auctions takes some work. You can locate companies that offer items to sell and you can go to garage sales, pawnshops and thrift shops. You could specialize in estate sale items such as antiques. The smaller the niche is the better you might become at finding great buys that can then be sold on eBay at a better than average profit. When you are an expert in certain areas it is easy to recognize when you are offered a bargain priced item. These can then be turned around and sold on eBay. </P> <strong>Payment for eBay purchases</strong> <P> Many sellers on eBay take credit cards or PayPal for payment. Others will take money orders or bank drafts. Very few will take a personal check, or if they do, shipment is not made until the check clears the bank. PayPal and credit cards are the most popular forms of payment. The reasons are pretty clear. The payment is almost instantaneous and will be good funds. Once the payment is made, the seller has the obligation to deliver the purchased item. </P> <strong>Keeping your record clean and clear</strong> <P> It is difficult to sell anything and not at some time have a dispute with the customer. The secret is to settle the matter as quickly as possible and as fairly as possible. Keep your eBay record clean and the customers will rate you better. </P> <P> A good eBay rating by customers will lead to more sales. Lack of problems is good; solving the few problems that happen is critical. </P> <strong>Conclusions</strong> <P> An eBay business is easy to start and does not take a lot of money to get up and running. A person could start by selling items they already own and slowly buy and sell other items. If the profits were put back into the business this would help grow the business. A growing eBay business can be sustained over time by having items to sell that people want. Finding these items is the area that will take work to find. Products that are wanted will sell, finding them is the job of the eBay business owner. Think outside of the box and find unique items that are not commonly seen. Find useful and helpful items. These will sell also and help the company turn a profit. The items need to be purchased right so they can be sold at an attractive price and still make a profit. </P> <P> A person should study the successful eBay companies and what they do to remain successful. These business people have found ways to be successful and their techniques should be studied. </P> <P> Read everything that eBay puts out for information. Sure some of it will be promotional, but some of it is very helpful. Read and decide for yourself what is true and important. The more you read and study, the better you will be prepared to make good decisions. </P> Acquireo.com - Acquireo Team Thu, 11 Oct 2007 20:42:31 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/understanding-restaurant-health-codes.aspx <P>If you own a restaurant, you not only need to run the business in a profitable manner, you need to meet the restaurant code requirements of your local government. Meeting code requirements is an ongoing and critical part of running a restaurant. Code requirements are absolute requirements that must be met in order for your business to remain open. Code citations must be promptly met and corrected. </P> <P> Restaurant code requirements are put in place by the local and state government to protect the public and to help the restaurant owner operate a safe business for his diners. Compliance with the code will prevent illnesses brought on by improper food preparation, storage, cooking or lack of cleanliness by the kitchen staff. Inspectors are given wide latitude of when and how they may conduct an inspection. They can drop by at a time of their choosing, without notice to the restaurant. </P> <P> Local authorities determine how often an inspection is required. There are specific requirements that must be passed in order to get a clean report. Again these requirements are part to the local rules and provisions. The inspectors are trained to look for certain important factors that are known to prevent health problems. Food used in a restaurant must come to the restaurant from approved sources. It must be stored at approved temperatures and be prepared with approved standards. Each local health inspection department can give the owner a set of rules that must be met. Cooking of food must be done at certain temperatures and then stored or kept in approved ways. Kitchen cleanliness is always an important consideration and must be done with approved methods. Washing of kitchen utensils, rags, and staff hands must be done in an approved manner by the staff of the restaurant. Cleanliness of the kitchen itself is part of the inspection and storage of cleaning chemicals must be done in an approved way. Prevention of accidental food alteration is part of the inspection. </P> <strong> Cooking temperatures </strong> <P> Local governments can set rules about the cooking temperatures for meat, poultry, pork, eggs and fish. These are in place to keep undercooked food from being served and causing a patron to have a food induced illness. Food cooked at approved temperatures will be safe to eat and should not cause the patron any problem. </P> <P> Undercooked meats, eggs or fish can allow organisms that are injurious to humans live through the cooking process and make a person eating the food very ill. Cooking at approved temperatures kills the organisms and prevents the food caused illness. </P> <strong> Refrigeration standards </strong> <P> Just like cooking temperatures, refrigeration standards are set to keep food at safe temperatures. This includes storage of cooked food, uncooked food and foods that should be kept in a frozen state until ready to prepare. Poor refrigeration can be very dangerous as the food is not safely stored under these conditions. Most locals require a way to constantly monitor the temperatures of the refrigerator and freezer units. Many restaurants use a separate thermometer to meet this requirement. Since these appliances are looked at many times during daily operation, the extra temperature monitors can be seen routinely. </P> <P> Salads with eggs and meats are very sensitive to poor refrigerated storage. This can be very harmful to someone who eats this food after this poor storage. This is why these requirements are in place and enforced by the inspectors. </P> <P> Cooking and storage of food is a serious area of inspection and should be maintained at the code standard at all times. This is the reason for surprise inspections by local health inspectors. </P> <strong> Hot-Holding temperatures for cooked food </strong> <P> After food is cooked it must be held for service in a safe manner. Hot-Holding temperatures are mandated by local health authorities and are part of restaurant inspections. This accounts for special equipment in buffet restaurants. Their hot food trays must be kept at correct temperatures for the time they are put out for public consumption. This is another safety issue for prepared food sold to the public. This food has been cooked and must be kept at reasonable temperatures until the customer takes it. </P> <strong> Restaurant cleanliness </strong> <P> Most restaurants do a very good job of keeping the area that the public sees in very good order. The kitchen is the area that inspectors are most concerned about. Cleanliness here is imperative to the preparation of safe food. Evidence of rodents or roaches is a serious problem for restaurants and must be seriously kept to a minimum of zero tolerance. Food is always out or being prepared. This constant attraction is like a magnet to various rodents and bugs. An ongoing battle must be kept up to keep these invaders at bay. The health inspector will come down very hard on a restaurant that is lax in this area. The inspectors or the customers of the restaurant cannot tolerate situations that are not under control. Since the customers are not privy to the kitchen, it is the job of the inspector to keep this part of the restaurant up to code. The health inspectors are the eyes and ears of the customers. When they pass a restaurant on its inspection the diner can expect to be served safe food. </P> <P> Cleanliness also includes the clean up of dishes and utensils, prep areas are kept in a spotless condition and rags and other cleaning tools are properly maintained and used. This care for not only the food, but also the operation of the kitchen is necessary to insure the safe delivery of food to the restaurant’s clientele. One of the ways to keep this aspect of restaurant operation is to require that codes are met and kept. </P> <strong> Conclusions </strong> <P> The restaurant business is a unique business when compared with other types of businesses. The business is heavily regulated, employee heavy, fad affected and at risk monthly or so for inspections. The good restaurateur will meet each of these challenges with skill and the desire to go the extra mile since their customers can be seriously affected by poor operations. Keeping the code requirements in place as part of their operation is not only necessary, but smart business. No restaurant wants the PR problem of a public notice of a food problem. Operating within the code will keep the owners from having this problem. </P> <P> Friendly and cooperative attitude will help keep the inspectors on your side. There is not a need for an adversary type of relationship. The inspector has a job to do and the owner has to comply with the rules of the local government. </P> <P> Fighting city hall is usually not a good idea, as their rules must be followed in order to sell food to the public. In the long run a clean operation will keep the restaurant out of trouble and inspire public confidence in the food served. Bad publicity about tainted food can ruin a restaurant over night and in some cases make it impossible to recover. Make sure your operation stays well within the rules and do not try to beat the system. Owners should take pride in the fact that they serve quality food that has been safely prepared and cared for before it was served. Customers will keep coming back to a restaurant that operates in this manner. </P> Acquireo.com - Acquireo Team Mon, 08 Oct 2007 18:51:50 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-run-a-retail-store.aspx <P>Retail businesses sell all types of merchandise and are not limited to what is sold in a five and dime or a dollar store. The items sold could be clothes to skateboards to motorcycles. Any store at a fixed location that sells similar items each day could be considered a retail store. There are several facets to a successful retail operation. </P> <strong> Location </strong> <P> Location is the critical element for almost all retail outlets. A store needs traffic passing by it every day. In a shopping center with other good retail outlets, there is a synergistic effect between them that helps each capture customers. Most centers are anchored by a prominent store, which gets a lot of traffic. This is of prime importance when looking at locations. A new store needs traffic to get off the ground and develop a following. </P> <strong> Merchandise </strong> <P> The next two important factors are the merchandise and the staff that waits on the customers. Both are critical to success of the store after the traffic situation is resolved. Attractive merchandise is needed or little or no sales will be made. If you get the people in the store, you need merchandise that gets attention and will be attractive enough that people want to purchase the items. The store will also need to constantly have new items for sale or the customers will begin to think that there is never anything new to look at or buy. Marketing and merchandising of products is an ongoing challenge to the retail merchant. How they do this and how often depend on what the general store image is to the public. Special times of the year will dictate some of the merchandise on display and offered for sale. </P> <strong> Employee impact </strong> <P> Customers desire well-trained and helpful employees. They want to deal with store employees that know where items are in the store and can answer other questions. A store employee should know the main items the store sells and should be continually brought up to date on new merchandise or specials the store is currently marketing. If you run weekly specials the store people should be versed on the special and it’s pricing. Customers should not have to remind people waiting on them that the merchandise has a special price this week. When a customer has to do that every time they shop at your store, they will begin to believe it is on purpose and not an accident. </P> <P> Employees that are idle should not keep a customer waiting when they are ready to be helped. There is nothing more irritating to a customer than being ignored by the store help. A store owner would be wise to get a report by a secret shopper of their experience with the store. Being aware of what is happening in the store is part of good management. Never assume all is well as many owners are the last to know what is really going on between the customer and the store employee. Customers will complain by not coming back and you will never know they feel mistreated. Not being helped by a knowledgeable employee is a common complaint by store customers. </P> <strong> Displaying merchandise </strong> <P> The art of displaying merchandise in an attractive manner is an entire course in retail store management. If items are not seen or displayed properly, you will not sell many of them. Merchandise needs to look fresh and crisp at all times. Shop-warn items should not be displayed except in a bargain section. Impulse items should be on display near the cash out area. Items should be displayed in the appropriate sections. Similar items should be collected in the same area of the store. </P> <P> Attractive displays also may need special devices so the items can be shown to advantage. Stacking or hiding items is not a good way to get the customer’s attention. When thinking of a display try to get into the customer’s mind and imagine what they will see with the display. If it does not draw attention, it is probably not doing the job. Eye level or slightly lower is the optimum position to show specials. Signs and placards are another way to grab the customer’s eye. </P> <P> Newspaper ads, TV and radio will help to get them in the store, but the displays are what sells the merchandise. It is a terrible waste of money to get customers to come to your store, only to walk out when they cannot find what they came in to see. Putting the customer first in your ideas will help you make the correct display decisions. </P> <strong> Ordering </strong> <P> Ordering in a timely manner needs to be automated some how. Inventory levels need to be monitored and kept at the right level at all times. Being out of sought after items just sends the customer to another store. The store owner and the store manager should be aware of inventory all the time. This is a prime area of responsibility in running the store correctly. </P> <strong> Other business concerns </strong> <P> A retail business has to operate like any other business as far as sales tax, payroll taxes and quarterly reports to meet state and federal requirements. This part of the business is like many other businesses and is just part of owning a business. Time must be scheduled for these activities or hire it out to an expert on a part time basis. For some owners this is the best way to handle this needed function. There are dates that must be met and these reports must be filed on time. Hiring this out may solve this problem with expert help. </P> <P> Advertising is another area that needs to be considered in the retail business. What is done in this area is related to the items sold. How often it is needed and the type will depend on the business. This can also be contracted out, but it must be kept under control, as it is easy to buy more than is useful. An experienced ad agency may be needed for a while until the business can become stable. This is a learning situation and what works must be found. </P> <strong> Conclusions </strong> <P> Location, location, and location is the critical factor in every retail business. Walk by traffic or car traffic is needed to be successful in the retail business. Once this factor is covered, the merchandising and employee management can be put in place. If people do not come in the store, then it will not matter what you do as far as employees or merchandise is concerned. </P> <P> Excellent customer treatment is the result of well-trained employees and does not happen automatically. This has to be part of the planning by the management. Trained employees help to bring back customers and make them the best customers of all. A repeat customer is worth a great deal of money over time. Also repeat customers will refer other people to your store. This is word of mouth advertising that all business want, but have to earn the hard way. </P> <P> Displays need to be eye catching and help to sell the product. Posters and placards can be used to direct attention. Once the customer is through the door, you have a chance to make a sale. A successful retail store puts all of these factors together. </P> <P><I><strong>If you are looking to own a retail store,Acquireo has a variety of retail businesses listed by brokers and private sellers below:</strong></I> <ul><li><a href="http://www.acquireo.com/tag/clothing-store.aspx">Bridal shop for sale, Clothing boutique for sale</a></li> <li><a href="http://www.acquireo.com/tag/dollar-store.aspx">Dollar store for sale</a></li> <li><a href="http://www.acquireo.com/tag/jewelry-store.aspx">Jewelry store for sale</a></li> <li><a href="http://www.acquireo.com/tag/gift-shop.aspx">Gift shop for sale,Candle and gift shop for sale,Candle and floral shop for sale</a></li> <li><a href="http://www.acquireo.com/tag/furniture.aspx">Furniture stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/womens-clothing.aspx">Womens clothing business for sale</a></li> <li><a href="http://www.acquireo.com/tag/mens-clothing.aspx">Mens clothing business for sale</a></li> <li><a href="http://www.acquireo.com/tag/lingerie.aspx">Lingerie business for sale</a></li> <li><a href="http://www.acquireo.com/tag/kitchen-cabinet.aspx">Kitchen cabinet business for sale</a></li> <li><a href="http://www.acquireo.com/tag/bakery.aspx">Bakery for sale</a></li> <li><a href="http://www.acquireo.com/tag/candy-store.aspx">Candy stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/food-retail.aspx">Food retail Business for sale</a></li> <li><a href="http://www.acquireo.com/tag/donut.aspx">Donut business for sale</a></li> <li><a href="http://www.acquireo.com/tag/snack-retail.aspx">Snack retail business for sale</a></li> <li><a href="http://www.acquireo.com/tag/snack.aspx">Snack business for sale</a></li> <li><a href="http://www.acquireo.com/tag/cosmetics.aspx">Cosmetics business for sale</a></li> <li><a href="http://www.acquireo.com/tag/art-gallery.aspx">Art gallery business for sale</a></li> <li><a href="http://www.acquireo.com/tag/hardware.aspx">Hardware business for sale,Hardware store for sale</a></li> <li><a href="http://www.acquireo.com/tag/super-market.aspx">Supermarket business for sale</a></li> <li><a href="http://www.acquireo.com/tag/card-shop.aspx">Card shop for sale</a></li></ul></P> Acquireo.com - Acquireo Team Mon, 08 Oct 2007 18:45:40 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-run-a-construction-company.aspx <P>There are three separate entities that a construction company has to satisfy in order to remain in business for an extended period of time. Licensing by the state, county and city can be the first hurdle the construction company must conquer. There are licensing test that must be taken and passed in order to get the license to operate. When this is acquired, the insurance that most clients will demand you have can be obtained to cover the job liability. Having the license will also allow bidding on jobs and doing subcontracting work. </P> <P> Subcontracting work is the second entity that needs to be satisfied. A general contractor on a project will contract work to qualified businesses based on licensing, reputation and price. The better the general contractor, the better the jobs that can be found this way. Solid general contractors are better to work for as their checks should be delivered on time and will clear the bank. If you are new to the contracting business, make sure you ask around about any general contractor you are thinking of working for or with. Some big companies have lousy pay practices and can put a small contractor in a world of hurt very quickly. </P> <P> The third entity to satisfy is the final customer. Some contractors will only work for the final customer as these are the payers for the job, and the terms can be ironed out, completed and the check will be paid. There is no middleman in the way, like there can be with a general contractor. </P> <strong> Employees you can count on </strong> <P> Solid construction companies with excellent reputations have people working for them that are very good at what they do, are great with the customer and finish the job as agreed or earlier. If they are well treated by the owner of the business, they will always go the extra mile for the boss. Respect and trust are a two way street. Good employees demand it and good employers will make sure it is part of the operating plan of the business. If you lose your quality people, you will suffer on the job and could end up out of business. Some owners just cannot seem to get this idea through their thick head. But the proof is just watch the construction companies with good reputations and see how their people act on the job. They are pros and do the work with skill and expertise. There is an obvious respect between the owner and his people. If you ask around it becomes quite apparent which companies’ people want to work for. Pay is only part of the answer. On site treatment of the employee is also an important element of the job. Mutual respect and trust are a big part of why some companies always have a list of people who want to work for them. </P> <P> If there is a problem, it should be settled in private. Public dressing down is very poor management by the owner. No one wants to be embarrassed on the job. On the other hand public recognition of a job well done will never be frown on if the owner is sincere in the praise. Skilled, smart employees can make a company stand out and poor employees can quickly ruin a company with the people who hire. This one element of a construction company must be constantly handled in a professional manner and certainly not like a plantation owner. </P> <P> Hiring experience is never cheap and training new employees has its own cost. Successful companies have come to the conclusion that a mix of both gives the best result. In any hiring agreement, make sure there is a trial period stated and a time certain evaluation date. This lets both parties know that there is a probation period that must be completed. </P> <strong> Bidding jobs, carefully to win </strong> <P> A job is up for bid that sounds like it is right up your alley. Make sure all the job details are clear and any questions you have are answered before committing your company. Go over the bid with a find tooth comb to find any math errors or mistakes in entry in the spreadsheet. Let the bid sit for a few hours or days if you can and then look at it again with fresh eyes. If there are obvious contingencies, make sure they are noted as part of the bid. Do not assume that something is understood as common practice. This can get a construction company in financial difficulty very quickly. If there are time constraints, make sure that the contract states how the scheduling will be handled and how it will be agreed upon. Scheduling problems can escalate in a construction job and throw all kinds of plans and money up in the air. If there is a dispute, the way it will be resolved should be included in the bid. </P> <P> Cover the possibility of rising material costs in the bid. Commodity prices can soar over night and could have a very serious effect on your cost for the job. Construction firms have been damaged when copper prices or fuel prices suddenly go crazy. </P> <strong> Office staff and the telephone </strong> <P> Make sure your phone calls are answered in a friendly and professional way. When a possible customer calls in to your business, how they are treated on the phone will make an impression. Poor phone technique can leave a bad impression. Let the staff and those who answer the phone know explicitly how you want the phone answered and then test it yourself to see if it is being put into effect. If a specific staff person is needed to answer a question, try to do it then or let the person calling know how soon an answer will be available. People are willing to wait, usually, if they know that the answer will be coming in a reasonable time frame. </P> <P> Quality staff work is another sign of a well-run business. Details are the nuts and bolts. These should be handled efficiently and with accuracy. Once a good staff is put in place, the business should seem to run on its own. Compliments will go a long way to keeping it that way. </P> <strong> Conclusions </strong> <P> Constructions companies can be moneymakers and financial disasters. Running a construction company takes planning and careful attention to detail by all involved in bidding a job. Bad bids cost money that could kill the profit for a year or more. The money in any bid is in the details. The secret is to understand the terms of the bid and make sure that is exactly what you are quoting on. Special considerations should be noted and specifically agreed to before accepting a contract. </P> <P> If there are time constraints or time penalties for the job, make sure you know the details of who sets the constraints and what will happen if there are situations that cannot be foreseen. Scheduling delays are the biggest danger here and who sets the schedule must be spelled out. Your contract should set the time needed to do your job if the job site is ready. Conflicting schedules for your work and another are the problem for the general contractor and should not be held again </P> Acquireo.com - Acquireo Team Mon, 08 Oct 2007 17:47:18 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/business-plan-resources-for-your-restaurant.aspx <P>From the start, it will be a well-researched restaurant business plan that will be your single greatest asset. It is the greatest key to convince anyone to make a loan, invest capital, lease, or do any type of business with you. Think of the restaurant business plan as an extremely valuable road map for your restaurant business. Long before you open the doors of your new restaurant, having privy to the best restaurant business ideas and restaurant business information will serve to enlighten you on both the possible pitfalls and various opportunities of the new venture. </P> <P> Restaurant start ups should incorporate in their business plan such elements as company description, industry analysis, products and related services, the target market, information on the competition, sales and strategy operations, planned management and organizational structure, a long term development plan that includes an exit strategy, and financial data projections. </P> <P> Many restaurateurs omit these crucial stages when buying a restaurant. They are focused on getting the financing to open the restaurant doors to create cash flow as quickly as possible. Doing the hard work, creating a winning image, great food, and the burning will to succeed are not enough. Proper training will be perennial among the restaurant resources that must be in place. The restaurant business plan must also include well-established operating procedures that will be followed on a religious basis. At any point in time, the winners of any venture are the ones that have the best tools to work with. </P> <P> Knowledge alone is not power! Power is knowledge applied effectively! You will need to be exposed to up-to-date restaurant business ideas, restaurant business information, complete sample plans and more to stay abreast and competitive in the market. And for both parties, it makes the transactions of buying restaurant and selling a restaurant a lot easier. </P> <P> Many of the challenges that will face the restaurant owner will be in the area of menu and recipes costs, hiring, illness and complaints, foodborne illnesses, sales breakeven points, operations, employee corrective actions, restaurant maintenance, employee and manager reviews, food cost yields, labor scheduling planning, running inventories, employee time-off requests, scheduled restaurant evaluations, and customer service surveys. </P> <P> An excellent source of information for your overall restaurant business plan can come from business software. Planning experts, consultants, executives, and CPAs use the Business Plan Pro 2004 PREMIER. The package allows the user to combine several businesses plans to see the big picture and track results more efficiently. You will be able to see advanced financials, sales forecasting, and profit and loss statements far more clear. Another great software tool is the “Restaurant Business Plan Software” that incorporates all the tools necessary for the small business owner to succeed. </P> <P> Perhaps for the restaurant owner, the best software package available might be the QuickPlan 2003 Restaurant Business Plan software package. This is a complete package that is industry-specific, and covers full service, limited service, fast food, bakeries, caterers, nightclubs, franchises, and expansions with that incorporate a definite them. </P> <P> These software packages can be great tools for setting up a fantastic business plan that will help you to get funded. All of this may at first seem difficult, but you can rest assured that your competition is privy to such information. The sooner you are on board, the sooner your success will be insured. Knowing your business, your market, and your strengths and weaknesses is just smart business. Remember, it is a sound business plan that will make your dreams of restaurant ownership a reality. And, should you decide to sell a restaurant business in the future, you can serve as a valuable font of information for a potential buyer. </P> <P> The National Restaurant Association is an excellent industry tool that has the latest information on industry trends and research results. Being part of such an organization encourages networking with others to share information and discover new strategies that will make member’s operations more effective. Some of the group studies include internal auditing, human resources, risk & safety issues, marketing, quality assurance, and nutrition. It is a privilege to have access to leaders in the industry that can offer timely insight on the things that matter the most—as well as help you continually fine tune your restaurant business plan. </P> <P> In fact, any support group that offers assistance and networking is worth looking into. The immediate gain is access to a constantly expanding array of insights, tools, and resources from fellow independent restaurant operators. You are embarking on a time-honored endeavor of business ownership. How you mentally approach the task will weigh heavily on your chances of success. Right actions only have one consequence: Right results. </P> Acquireo.com - Acquireo Team Wed, 03 Oct 2007 20:12:00 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/resources-and-tips-on-financing-your-restaurant.aspx <P> If you are thinking about financing the restaurant of your dreams, you certainly do not need anyone to tell you how difficult it can be. If you already have a go of it, money can be tight while trying to build up the restaurant’s reputation. With respect to cash flow—often times it does not flow. One bad night can result in an unprofitable week, and the slow periods often last longer than expected. On the other hand, you may be in the position to sell a restaurant, and being privy to a few handy restaurant selling tips can be of tremendous value—no matter what side of the fence you are standing on. </P> <P> Bank loans may be thought of as the obvious way for a buyer to raise capital for a restaurant business. However, it may surprise you to know that from the viewpoint of the lender, even a profitable restaurant is a big risk due to historical pre-tax profits ranging from 4-7%. If you are on the buying end and obtain a loan whereby the interest rate is high, this can be a problem within itself—especially for low margin businesses such as restaurants. Do the homework and make sure that a bank loan is the way to go. For the owner looking sell a business, knowing any likely stumbling blocks ahead of time that the buyer might encounter will help you to part with the property on schedule. </P> <strong> Self-Financing </strong> <P> The owner of a restaurant is looking to successfully sell a business, and is not over concerned what type of financing you use—as long it is legitimate. If you have the available capital, self-financing becomes a viable option. A word of caution though, there is often no recovery of personal capital if a venture goes bad once you have taken it over. On the other hand, if you are using your own capital, the incentive to succeed might be stronger. Of course, the stronger the incentive to succeed—the greater the chances of making your new restaurant venture a success. </P> <strong> Personal Loans</strong> <P> For the buyer negotiating with an owner to sell a restaurant business, the numbers indicate nearly 42% of private investors are close family members, such as a sibling, spouse, parent, or grandparent. There is a lot of investing going around these days, and approximately five out of every 100 adults in the United States have invested in someone else’s business within the past three years. Restaurants are the most common businesses started in the United States; therefore, it stands to reason that selling a restaurant will be among the most common types of business transactions. Keeping these numbers in mind, it should give you a great deal of encouragement if you are looking for a personal loan. </P> <strong> Factoring the Accounts Receivable </strong> <P> At this stage of the process, the selling price for a restaurant has been agree upon, and all the variables have been taken care of. Now that the business is up and running, there may be those periods that you will need a quick influx of working capital. Factoring is a form of finance whereby a business can accelerate cash flow by selling its accounts receivables at a discount. It allows the business to move forward and receive needed cash flow without waiting for outstanding invoice to be paid, and is a process that works well for service-based businesses. However, restaurants usually have very little business of this kind. You should never rule out any avenue of help at the initial stage though. Always follow through! You can never tell what kind of surprise might show up at your doorstep. </P> <strong> Factoring Credit Card Payments </strong> <P> Restaurants do have a lot of credit card transactions, and by leveraging this type of capital—restaurants can literally obtain capital with other people’s money. Restaurants can actually leverage up to $120,000 in the process. The restaurant owner can use the money for any purpose—from expanding the business to buying new equipment. The factoring advance is not a loan; it is simply an advance against future credit card payments. </P> <P> The company purchasing the credit card payments usually takes a fixed percentage of future credit card transactions, and makes the payment to the restaurant usually within 14 days. If this is a viable option for you, make sure you know what the restrictions are. Generally speaking, to qualify, a restaurant would have to be running for more than a year, and take in over $5000 per month in credit card transactions. Additionally, there would need to be more than one year left on the lease to qualify. A word of caution is to avoid companies that charge an application fee or closing costs. There is not that much information paperwork to be processed. </P> <P> Angel investors may also be a route worth considering as well. These individuals look for restaurants with high growth prospects. You may have to relinquish some control over the business, but it can be a start if your business is in the early stages of growth. These types of investors can be readily found in large metropolitan areas. </P> Acquireo.com - Acquireo Team Wed, 03 Oct 2007 17:57:56 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/things-to-research-before-you-buy-a-restaurant.aspx <p> Before you venture out and buy a restaurant, you should consider finding out the important facts. Restaurants may be the most sought after businesses for sale. You may find yourself in the position of buying a restaurant that is already doing quite well with a solid customer base. However, make sure you know the full story behind the business before signing on the dotted line. </p> <strong> What is The Real Story? </strong> <p> There is a real story behind every attempt to sell a restaurant. The answer can be right on the surface, on the other hand, finding the real reason may take some probing. If the customers stopped coming, it will benefit you to know why. When organizing the plans to buy a restaurant, you need to know if there are any pending legal or financial issues surrounding the need to sell. </p> <strong> Make Sure You Check All the Books </strong> <p> Your plan to buy an existing restaurant business should hopefully contain elements that will make you a tidy profit. If so, put on your detective hat and make it a point to carefully examine recent expenses and sales to ensure the restaurant you have your sights set on is in the black. This means taking the books to your accountant to see if anything looks suspicious on the surface. Are all the payments going where they should? Does the restaurant have a healthy bank account? Are there any hidden expenses that will show up when you least expect it? </p> <strong> Is the Restaurant’s Reputation Sterling? </strong> <p> Restaurants draw clientele base on reputation as much as anything else. A great way to get the inside scoop when buying a restaurant, is to ask the restaurant’s vendors if the business has been paying its bills on time. If your potential vendors are unhappy with payment performance, this should send up the red flag in a hurry. It is also a great idea to spend time in the restaurant you plan to buy as an actual customer. There is no better way to measure customer service and obtain on overall feel than to sit at the table and be served. </p> <p> Whether the restaurant is one-of-a-kind or an existing restaurant that is part of a business chain, there are principles to consider that will give your venture a better shot at success. A restaurant concept that is well-defined stands a much better chance of long term success—and after buying a restaurant, it is wise to set specific goals from the very beginning that will define and measure your restaurant’s success. </p> <strong> Longevity</strong> <p> For the adventurous at heart that plan to buy an exiting restaurant business, it is prudent to know that business conditions can change over night, and your success may depend on being able to meet the changing demands and buying habits of the customer. And, you can bet on your customer base changing periodically. “Winning” is essential, and means maintaining success over a long period. Aspects of your business will change over time—it is simply the nature of how things are. Staying on top of trends without veering away from the loyal customers may prove to be a winning combination. </p> <strong>Market Appeal</strong> <p> If you want your restaurant to be busy, an appealing concept will be the thing that wins the day. Restaurants that have a broad and well-developed “theme” enable them to form and dominate a market niche. People will frequent a restaurant that has good appeal—and the more familiar you are with the demographics of your potential customers—the greater your chances will be of running a smooth and successful operation. A restaurant with solid appeal makes a person “feel” good about being there, and the word of mouth endorsements that will surely follow can prove to be a great benefit. </p> <strong> Thing in Terms of Expandability </strong> <p> After successfully buying a restaurant, you can never tell what direction your venture will take. If you have a winning business plan, it can be a good platform for securing a lease or going to a money source to obtain funding. Also, a good business plan will help you to develop systems and procedures required to maintain a state of consistency. Who knows, opening that second restaurant might become a viable option! And before long, you may be looking at a chain of restaurants opening across the states. </p> <strong> Fully Examine the Assets </strong> <p> You should have full access to the assets listed for the restaurant business. This means taking a close look at the age of the equipment. How old is the stove, and are any of the rest of the assets outdated? Is the location of the restaurant up to existing building codes? Even the name of a restaurant can be considered an asset. What does the name imply, and is it in step with the customer base you want to attract? How to buy a restaurant and reap the benefits is best realized when you have a comprehensive action plan in place. </p> <p> Listed below are restaurants for sale advertised by brokers and private sellers. </p> <ul> <li><a href="../../tag/italian-restaurant.aspx">Italian Restaurants for sale</a></li> <li><a href="../../tag/pizza-shop.aspx">Pizza shop for sale,Pizza restaurant business for sale</a></li> <li><a href="../../tag/fast-food.aspx">Fast food franchise business for sale</a></li> <li><a href="../../tag/mexican-restaurant.aspx">Mexican restaurant business for sale</a></li> <li><a href="../../tag/cafe.aspx">Cafe business for sale,Cafeteria business for sale,Cafe Eatery for sale</a></li> <li><a href="../../tag/sandwich-shop.aspx">Sandwich shop for sale</a></li> <li><a href="../../tag/sub-shop.aspx">Sub Shop for sale</a></li> <li><a href="../../tag/bagel.aspx">Bagel restaurant business for sale</a></li> <li><a href="../../tag/deli.aspx">Deli business for sale</a></li> <li><a href="../../tag/latin-restaurant.aspx">Latin restaurant for sale</a></li> <li><a href="../../tag/coffee-shop.aspx">Coffee shop for sale</a></li> <li><a href="../../tag/take-out-restaurant.aspx">Take out only business for sale</a></li> <li><a href="../../tag/catering.aspx">Catering business for sale</a></li> <li><a href="../../tag/breakfast-lunch-restaurant.aspx">Breakfast lunch business for sale</a></li> <li><a href="../../tag/barbecue-restaurant.aspx%22">Barbecue restaurant business for sale</a></li> <li><a href="../../tag/american-restaurant.aspx">American restaurant business for sale</a></li> <li><a href="../../tag/ethnic-restaurant.aspx">Ethnic restuarant business for sale</a></li> <li><a href="../../tag/steak-restaurant.aspx">Steak restaurant business for sale</a></li> <li><a href="../../tag/seafood-restaurant.aspx">Seafood restaurant business for sale</a></li> <li><a href="../../tag/specialty-restaurant.aspx">Specialty restaurant business for sale</a></li> <li><a href="../../tag/gourmet-dining-restaurant.aspx">Gourmet dining business for sale,Diner for sale</a></li> <li><a href="../../tag/buffet.aspx">Buffet business for sale</a></li> </ul> <p>   </p> Acquireo.com - Acquireo Team Wed, 03 Oct 2007 15:25:23 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/why-buy-an-existing-restaurant.aspx <p> If you are looking to become a restaurant owner, you will no doubt spend a lot of waking hours contemplating the mysteries of how to buy a restaurant. You can rest assured there are a lot of great opportunities these days to buy a restaurant. However, with franchises, start-ups, and existing restaurants to choose from, it can be a bit overwhelming to say the least. After reviewing all the possibilities, you may have some tough choices to make. There are going to be challenges with any new business venture, and buying a restaurant will tax all of your business skills. The two most pressing concerns will be growing your restaurant and enticing people to continue to eat there. Your best chances of success may be realized if you buy an existing restaurant business or franchise that is up for resale. </p> <p> If you decide to buy an existing restaurant business, one of the benefits you will immediately realize is the privilege of examining its historical performance. This will allow you to make some very important business decisions. Your strengths can be of great use even if the restaurant was not profitable in the past, and your greatest hope can be to evolve a winning operation. </p> <strong> Existing Restaurants Are Easier to Investigate</strong> <p> You should always do a thorough investigation of any piece of real estate—and especially if you plan to buy a restaurant. This will require taking an up close and personal look at its past activities, current operations, nearby competition, and its future business potential. Restaurant traffic speaks volumes about what you can expect in the future. It is also important to monitor health trends and how they fit into the current status of the restaurant as well as your ownership goals. </p> <strong> An Infrastructure Already In Place</strong> <p> An infrastructure can best be described as the location, equipment, employees, operating systems, and existing supplies. This removes the challenges of starting out at ground zero when buying a restaurant, and will allow you to focus on building the business—which is where your attention should be. A solid infrastructure already in place also allows you to implement new changes more rapidly. With an existing restaurant, there is quicker opening time versus the time needed if it were a new development. The existing customer base of an existing restaurant can carry the business until you are firmly established, and once firmly established, you can then work on bringing in new customers. </p> <strong> The Benefit of Pricing Differences </strong> <p> There may be the perception that to buy an existing restaurant business, it will cost more. This is not usually the case. The odds are actually in your favor of saving money in the long run when buying a restaurant where all the amenities are firmly in place. Even if purchasing the restaurant requires a premium down payment—you at least know up front what you are getting. Usually with a new franchise, there are demographic studies done on drive by traffic, demographics, and potential customer bases. These are all studies that try to determine the restaurant’s potential for success. In reality, this is a near impossible task. It is also good to note that a new location can take up to a year or more to build. All of these challenges are avoided for the most part when buying a resale location. </p> <strong> Negotiating Flexibility</strong> <p> It is not hard to understand why buying a new restaurant will give you a greater margin to negotiate. Owners are usually selling for a specific reason, and if the price is right, chances are you will have few obstacles standing in your way. Remember, everything from the purchase price to the financing package can be negotiable when buying a restaurant. </p> <strong> Seek the Help Professionals </strong> <p> Regardless of the size of the restaurant business, you should consider using the services of both an accountant and lawyer. The first mistake is to think that with a small restaurant business, you can forego the support of professionals. Accountants and lawyers can be a great defense mechanism in ensuring that you are well aware of any risks involved. Remember though, that the role of the lawyer in purchasing a new restaurant is simply to write the legal terms of what you and the seller agreed upon. Ask the right questions if you plan to buy a restaurant that is for resale. Your goal is to find professionals that will assist—and not simply take your money for drawing up the contracts. </p> <p> Listed below are restaurants for sale advertised by brokers and private sellers. </p> <ul> <li><a href="../../tag/italian-restaurant.aspx">Italian Restaurants for sale</a></li> <li><a href="../../tag/pizza-shop.aspx">Pizza shop for sale,Pizza restaurant business for sale</a></li> <li><a href="../../tag/fast-food.aspx">Fast food franchise business for sale</a></li> <li><a href="../../tag/mexican-restaurant.aspx">Mexican restaurant business for sale</a></li> <li><a href="../../tag/cafe.aspx">Cafe business for sale,Cafeteria business for sale,Cafe Eatery for sale</a></li> <li><a href="../../tag/sandwich-shop.aspx">Sandwich shop for sale</a></li> <li><a href="../../tag/sub-shop.aspx">Sub Shop for sale</a></li> <li><a href="../../tag/bagel.aspx">Bagel restaurant business for sale</a></li> <li><a href="../../tag/deli.aspx">Deli business for sale</a></li> <li><a href="../../tag/latin-restaurant.aspx">Latin restaurant for sale</a></li> <li><a href="../../tag/coffee-shop.aspx">Coffee shop for sale</a></li> <li><a href="../../tag/take-out-restaurant.aspx">Take out only business for sale</a></li> <li><a href="../../tag/catering.aspx">Catering business for sale</a></li> <li><a href="../../tag/breakfast-lunch-restaurant.aspx">Breakfast lunch business for sale</a></li> <li><a href="../../tag/barbecue-restaurant.aspx%22">Barbecue restaurant business for sale</a></li> <li><a href="../../tag/american-restaurant.aspx">American restaurant business for sale</a></li> <li><a href="../../tag/ethnic-restaurant.aspx">Ethnic restuarant business for sale</a></li> <li><a href="../../tag/steak-restaurant.aspx">Steak restaurant business for sale</a></li> <li><a href="../../tag/seafood-restaurant.aspx">Seafood restaurant business for sale</a></li> <li><a href="../../tag/specialty-restaurant.aspx">Specialty restaurant business for sale</a></li> <li><a href="../../tag/gourmet-dining-restaurant.aspx">Gourmet dining business for sale,Diner for sale</a></li> <li><a href="../../tag/buffet.aspx">Buffet business for sale</a></li> </ul> <p>   </p> Acquireo.com - Acquireo Team Wed, 03 Oct 2007 15:20:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/are-you-sitting-on-undiscovered-business-capital.aspx <p>Although thousands have discovered this golden opportunity, some of the savviest investors are still unaware of this remarkable funding option: <em>You can utilize your IRA monies before retirement age to purchase a business without incurring early distribution penalties.</em></p> <p>Thanks to the government’s 1974 ERISA laws, you can self-direct your retirement funds into investments that include purchasing a business and/or franchise. Have your eye on a corner taco stand? Thinking of turning your love for animals into a pet-grooming shop? Funding your dream enterprise with retirement monies is a dynamite option for those wishing to take control of their future by going into business for themselves.</p> <p><strong>The Benefits</strong> While individual retirement account (IRA) funds could be used in this way for the past three decades, it’s only been in recent years that people have taken a closer look at personally controlling the investments made by their IRAs both in and out of the stock market. More specifically, an increasing number of new business owners are enjoying the benefits available to them through what are commonly known as “self-directed IRAs.”</p> <p>By using an IRA structure similar to that of a self-directed retirement account to purchase a business or franchise, you can save money, increase your retirement account value, and even offer a 401(k) to your employees. It’s ideal for those who want to avoid taking out loans to finance a start-up business. Or, if your retirement funds can’t cover the full purchase price, the structure allows for multi-party purchases – a perfect set-up for husband and wife teams. You can even combine your retirement money with loan money. All these options allow you to start your business with significantly less overhead, which translates into greater profits. </p> article continues below <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script> <p> </p> <p>For example: To finance a $200,000 business, a 10-year 10.75% SBA loan could stunt your growth for the first 10 years. However, a similar business funded with retirement monies would not be subject to debt payments. Thus, the over $2700 you would be paying monthly on your loan could be reinvested instead into your business to increase your growth rate. </p> <p><strong>It Gets Better!</strong> Using retirement funds to finance your entrepreneurial endeavors could mean much higher returns within your retirement account, since company profits not expended on loan repayments can be deposited back into the account. In this way, your retirement nest egg grows along with the success of your business. Profits funneled into your retirement account are tax deferred, just like earnings from traditional stock-market investments. Over time, this could save you thousands in tax dollars. </p> <p>These self-directed account structures provide a surprising amount of flexibility. Plans such as these allow for investments into new or existing businesses. Other plans are structured to allow for investments in real estate, vacation rentals, hard money lending and much more. Into real estate flipping? You could combine your interest in real estate with your desire for self-employment by forming a Real Estate Operating Company (REOC). Want to invest in shrimp farms in New Orleans or timberland in New Zealand? With the right self-directed account structure, you can do that, too.</p> <p>According to David Nilssen, president and CEO of Guidant Financial Group, a retirement account facilitation company headquartered in Bellevue, Wash., “Most people don’t realize they can make substantially more with their IRA and earn this in investments that traditionally are more secure than the stock market, like real estate and tax liens. Yet less than 4% of the 16.4 trillion dollars in retirement funds are held outside stocks, bonds and mutual funds.”</p> <p><strong>Getting Started</strong> Restructuring your IRA (or other retirement accounts, like 401(k)s) to allow for a business or franchise purchase is best left to professionals experienced in such matters. While no taxes or penalties are triggered in transferring the funds from your old retirement account into the newly created one, the IRS does have the right to tax up to 100% of your IRA value if you fail to follow the appropriate government guidelines. For this reason, you will want to employ the services of retirement account facilitators who have structured hundreds (and preferably thousands) of these accounts successfully. </p> <p>Although an increasing number of investors are discovering the value of this business-funding option, there are still only a handful of companies that specialize in creating these unique accounts. Many offer free consultations and will explain in more detail how the structure works in relationship to individual business goals. Do your homework, and don’t be afraid to ask questions. Remember, it’s your money and your business.</p> <p>Financing your business with your own retirement funds takes the anxiety out of this first step in business ownership … and it puts you on the fast-track to greater success.</p> Acquireo.com - Sharon Petersen and Lauren Goodman Mon, 01 Oct 2007 23:00:58 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/eight-keys-to-selecting-the-best-retirement-account-facilitator.aspx <p>A growing number of people are discovering the joys of utilizing IRA money to purchase businesses and franchises. Consequently, more companies are springing up to meet the account-structuring needs of those seeking to take advantage of this “self-directed IRA” funding option. These companies can run the gamut from the sublime to the ridiculous, so it’s crucial that consumers know what to look for when choosing a retirement account facilitator.</p> <p>When structured correctly, money in your IRA account can be accessed before retirement to buy a franchise/business without incurring early distribution penalties. Setting up a structure for these types of transactions is a complex process involving rollovers, creations of corporations and/or new accounts within IRS and Department of Labor guidelines, and appropriately submitting numerous documents to various agencies. </p> <p>Ensuring that the structure is created correctly and that all compliance measures are adhered to is critical. If it’s done wrong – or if it’s created for a transaction that doesn’t meet government guidelines – it could result in the incurring of significant penalties or the dissolving of the tax-free status of your retirement account. Not only could you lose the opportunity to purchase the business or franchise of your dreams, but you could be penalized as much as 100 percent of your retirement funds. </p> <p>Although you can find numerous companies on the Internet offering to facilitate the structuring of these unique accounts, beware: all facilitators are not created equal. Some of these companies cut corners that leave clients open to later IRS repercussions. Others are tiny one- or two-person operations lacking the infrastructure to provide professional service or, based on the handful of accounts they have set up, they lack adequate experience to provide reliable guidance. So who can you trust? Thankfully, there are some professional and respected companies you can rely on with confidence. But even among these, costs for services can vary widely.</p> <p>To help keep you and your hard-earned retirement money safe, here are some of the characteristics you should look for in selecting an account facilitator:</p> <p><b>Professional Expertise.</b> Look for companies staffed with a wide variety of professionals who can look at your unique situation from all angles. Check to see whether the company is affiliated with other respected organizations, is well-known in the industry, and completes hundreds or, better yet, thousands of these plans each year.</p> <p><b>Reputation.</b> Even though this is a relatively new industry, you do want to see that the facilitator has been in business for at least a few years and has built a reputation for itself. Nothing can replace the value of real-life experience. You want to be confident that all the early trial-and-error took place long ago and that the current service is reliable and error free. You don’t want to be the guinea pig for a brand new company. It would be wise to invest some time in checking out what companies are in the news and what type of recognition they have been receiving. </p> article continues below <p> </p> <p> </p> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script> <p> </p> <p> </p> <p><b>Communications.</b> Does the company make you blindly submit your information to them without providing the ability to talk with them directly? While online submissions are fine, be wary of sites that don’t even give you a phone number where you can contact them. Also, are their representatives always available to answer your questions? A good rule of thumb is: the easier it is to communicate with the facilitator, the more secure you can feel about what is happening behind closed doors.</p> <p><b>Success.</b> Is the company growing or is it struggling to keep its head above water? Will it still be in business next year? The best companies to deal with are those that have a large and growing clientele. Don’t be afraid to ask how many similar accounts the company has structured or how many clients they’ve served. Bolder is better when it comes to questioning those who will be facilitating your financial future.</p> <p><b>Conservative Approach.</b> Hearing “yes” is not always in your best interest. There are companies out there that will, out of ignorance or greed, set up structures that enable you to purchase businesses that are not permitted or advised under the IRS or Department of Labor laws. Choosing a facilitator that will keep you away from any business deals that are even remotely questionable is a safer route to take. Look for facilitators who encourage you to run your potential transactions past counsel. Better yet, look for a company that includes this step as part of their facilitation package.</p> <p><b>Customer Service.</b> So what constitutes topnotch customer service? Look for characteristics such as: Proactive Communication (the company reps keep you regularly informed of where you are in the process, and they speak a down-to-earth language you understand, not some trade lingo that makes little sense in the real world); and Ongoing Support (you can rely on the company to answer your questions and “hold your hand” if necessary after they’re set up your account).</p> <p><b>Turnaround.</b> A company should be able to set up the account within 20-25 days. Yet some companies promise five days or less … which makes you question what corners they’re cutting, since some states require as much as eight days to process documents. You need to be clear about your time constraints, and you should expect a clear and honest time estimate in return. And then you should be able to rely on that estimate. </p> <p><b>Competitive Prices.</b> Is the company clear about the costs up front? And do you know exactly what services you are purchasing? Some companies will charge separately for each step of the process, while others will charge for the “package.” Package deals can provide the better bargain, as they includes features that other programs will expect you to pay for separately and which can add substantially to your costs (such as an IRS authorization letter or time with outside counsel). </p> <p>One of the best steps you can take is doing a thorough study of the companies wanting your business. Shop around! Most account facilitators have websites you can peruse and most offer free consultations. This may sound simplistic, but write your questions down beforehand and keep them in front of you. It’s far too easy to lose your train of thought in the midst of a detailed – and sometimes confusing – sales presentation. </p> <p>Finally, never lose sight of the fact that you’re dealing with your money, your business/franchise purchase and your success or failure. Go with a company that ensures that your money never leaves your authority, and that you remain the one who defines your future. </p> Acquireo.com - Sharon Petersen Mon, 01 Oct 2007 22:23:32 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/hiring-an-attorney-for-the-business-buying-process.aspx <P>First and foremost, as a business buyer, you must understand when to bring on the professional help of an Attorney and to how hire those with the right experience. You are looking to buy a business and you are the one employing them so the decisions are all on you. Attorneys will be more of a hindrance than help if you bring them into the fold too early or ask them for help on things that are really an opinion rather than based on actual knowledge. I have seen many occasions where Buyers kill their own deals by not being prepared but even more so, by the Attorney that likes to prove his/her brain power or overly “protect” the client. This unfortunately also happens on the Seller side of the table too. </P> <strong> Where do I find these professionals?</strong> <P> Other business owners, Business Brokers, Business Advisors and business based Accountants are all your best resources. It is not recommended to look one up in the phone book or on the internet. They should be local to you and/or your new business venture if possible, but it’s not necessary. Hopefully, once you sign the deal you will never need to use them again until you are looking to sell. </P> <strong> What are the best hiring criteria? </strong> <P> I don’t think I have met a lawyer who has done at least one business related contract that would tell you he/she can’t handle a business purchase transaction. Although many transactions are very simple when performing an asset based purchase (as most are), experience in an actual buy/sell transaction is a must. It is especially essential if buying a business with environmental issues involved such as a gas station or car wash or with licensing issues such as a bar. If this is not the case, I would recommend asking about a flat fee for their services. Many will do that if they have the experience (like they should have) in transactions with the type(s) of businesses you are looking at. </P> <P> There are plenty of solid choices in Attorneys that you will come across but you must feel absolutely comfortable with them. Lawyers tend to make people feel like they are inferior. This may or may not be intentional, but it happens just because legal matters that most people have no clue about are involved. This must not interfere with the fact that YOU are hiring the Lawyer, they are not hiring you. I can’t stress enough how important this is since Attorneys are known to be total deal breakers even in a perfectly cut and dried transaction. </P> <P> Also, contrary to what they may think about themselves or may tell you, most Attorneys are not good business people. So don’t even waste your time looking for a Lawyer that can give you business advice. What matters is their experience from a legal standpoint in business buy/sell transactions for the industry you are looking to buy into. </P> <strong> When should I hire one? </strong> <P> Please heed this warning on the subject of bringing an Attorney into the fold. Once you are absolutely ready to look for a business, you can start looking for an Attorney. Meet with them and be clear that you want to find the right person to help them and when you are ready, you will retain their services. </P> <P> The time to bring them in completely often stems from the type of business you are buying. Again, if there are any state or federal regulations or licenses involved, they should be brought on board when you start due diligence. If this is not the case, then get them involved when you are at the end of your due diligence and certain you will be going through with the deal. Up until the point that the due diligence period ends, you are not legally obligated to buy the business and you really don’t need to start paying for a Lawyer. </P> <strong> What will they do for me?</strong> <P> If there are state and federal issues to be checked out about the business and the Seller(s), your Attorney should be doing these background checks for you during due diligence. Some checks take a while to get back so they might as well be started as early as possible. This shouldn’t be a problem to you if you have done your prep work and submitting an offer to start the due diligence was a wise decision. </P> <P> Buyer Attorneys will be tasked in making sure all of the contingencies that were met from the letter of intent during due diligence as well as the other necessary agreements are transferred over to the purchase contract. Be sure to remember you are the boss here! Do not let your Attorney or the Seller Attorney drag things out! They should both just be translating your verbal and written agreements with the Seller into legalese and making sure it gets on the contract. Keep it simple. They should also be drafting a non-compete for the Seller to sign to protect you from having them become your competition anytime soon after the transaction is finished. </P> <P> Ask your Attorney to explain to you anything they feel should be covered for your protection in the non-compete and purchase agreement. If you feel it will hinder the transaction or disrupt your relationship and previous agreements with the Seller when at the closing table, that is your decision to make or dismiss. Letting either Attorney run amok will cause major delays or possibly shut down the deal. Not only will this cost you money for more work by your Lawyer, but it may cause you to lose any deposits you have made. </P> <strong> How much will it cost? </strong> <P> I would like to tell you that this transaction will not cost much. If you have ever closed on a house, you know you always feel like you paid too much. This is more complicated so if you thought a house closing was expensive by way of attorney fees, this might not make you too happy. It also may not be as bad as you think. </P> <P> First off, just like with a house, if you can, try to ask for a flat fee. For a simple straight forward business with no federal or state regulations and licenses involved, this should not be a problem. It will definitely make your Attorney do his/her job efficiently and probably even better than with a floating retainer or hourly arrangement. A flat fee can run from $1200 to $2000. That’s really not too bad. If a flat fee is not an option, you may see rates of $120-$300 per hour. I have to say that usually you are not getting any better of an Attorney at the high end versus the low end if they have the experience. But what you are dealing with is a better negotiator. Either way, tt doesn’t hurt to ask for a lower rate. </P> <P> If that doesn’t work, and you still like them, be prepared to do as much work for yourself as possible regarding making sure all of the points get covered in any docs they are preparing and all of the standard clauses are included. Don’t let them hunt things down that you can get or dictate yourself. That being said, an hourly arrangement can get ugly if you don’t keep control of the situation, but you are looking at a range of $1200-$3000 for a typical small business transaction. </P> <P> To sum it all up… don’t be afraid of your Attorney. You hired them and you can fire them as well as give them a good or bad review to your other business owner friends. They need to keep that in mind and so do you. It’s your new business that you are buying and you have been in the mix of finding it, checking it out and negotiation the deal since day one. Be a part of the transaction as much as possible and let them do their job, which is to translate your needs into a legal format. </P> Acquireo.com - George Sierchio Thu, 20 Sep 2007 13:40:23 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/hiring-brokers-or-advisors-for-the-business-buying-process.aspx <P>The start of the hunt for a business to purchase is a very important time in the process. I would strongly recommend getting help to make your decisions much easier. Business Buying Brokers and Advisors are very useful when you are on the hunt and when you find a viable business fitting the criteria model you have made in your prep work before starting the hunt. </P> <strong> Does every buyer necessarily need help from a Broker or Business Advisor? </strong> <P>If you have already bought a business before then maybe you don’t need help. Although it wouldn’t hurt to get a second opinion on businesses you are seriously considering purchasing, especially when determining a fair market price. </P> <P> If you have never bought a business before, it really is a good idea. Once you buy the business, a Business Advisor will really come in handy to help you settle into your new venture quicker and with better success. </P> <P> Be smart and do not buy a business and expect to know everything and do everything. Plan on sticking to what you know best and get help with everything else until you either learn it, or permanently hire someone to take over the work. Taking on too much will quickly put your new venture into a hole. </P> <strong> Where do I find these professionals?</strong> <P> I would start with asking other business owners you know if they could recommend someone. If this is not possible, ask attorneys or accountants. I would also recommend doing a strong internet search specifically for the following key words “broker help in buying a business” or “business advisor help in buying a business”. From the search results, look for one in your local area. </P> <P> You can technically hire this kind of help from anywhere as long as you don’t need them to physically look at the businesses with you. Be prepared to get in touch with a few. You really need to feel comfortable with this person. </P> <P> Keep in mind that using a Broker that came directly from a listing is OK, but they are really representing the seller more than anything else. With that said, some of the larger Brokerages will actually assign a Broker to you that is really there to help you out but you need to ask how this works on a case by case basis. </P> <strong> Which one is better to go with? </strong> <P> The answer to this question often comes down to plain experience. Obviously a Broker has experience in Buying/Selling a business so this would always be a good idea. Better yet, a Broker that also has business owning/operations experience would really be ideal as far as Brokers go. If you are looking more long term, then finding a Business Advisor that has a background in business buying and selling is the ultimate way to go. </P> <strong> When should I hire one? </strong> <P> That’s very simple. As soon as you have performed your prep work, you should look for the proper Broker or Advisor to help you out. Services should be used through the due diligence period. They really aren’t needed following that unless you are looking for help with the business after the purchase from an Advisor. </P> <strong> What will they do for me? </strong> <P> Either one can fine tune your business buying criteria from your prep but a Broker is more adept in actually helping you on the hunt or actually performing this service for you. They can also help you search for the right business including soliciting businesses that fit your criteria that are not actually listed as for sale at the time. For the right price, almost any business is for sale so this may be a route you would want to take although it will be a much longer process. </P> <P> These professional can make sure that a particular business that interests you fits all of your criteria well enough to get more information on it. Remember that you will initially get very little data on the business you are looking at. </P> <P> Once you sign a non-disclosure, you will get additional information and these professionals will really be able to tell you whether to pursue it or not. If that is the next step, they will be a big help in giving you the right questions to ask the Seller/Broker about the business since this information will be limited financial data and an expanded description in most cases. </P> <P> Their help in determining a fair market price for the business is the next crucial point. This is where you really can’t go wrong with getting help and taking purely personal opinions out of the loop. </P> <P> Before you get all of the company financial history and dig deep into the operations of the business during the due diligence process, you will need to make an offer on the business, which is why this valuation is needed. This offer is made using a “Letter of Intent”, which is an agreement to pay the offered price if the business passes your “test” of contingencies. </P> <P> A Broker or Advisor can make sure you have a reasonable set of contingency criteria to prove that the business is worth what you are offering. They will assist you in the due diligence process, along with your accountant, to verify that this is the case. Once the business passes muster, the Advisor or Broker has finished their job as far as the purchase is concerned. </P> <strong> How much will it cost? </strong> <P> Well, there are no set prices for this kind of work. Some may work hourly and some on a flat fee with some limitations on length of the contract term or the number of businesses they will look at with you. Others will have a small upfront fee with the rest of the payment tied to the asking price or savings from the original asking price. </P> <P> It shouldn’t surprise you to see prices in the range of $125-$200 an hour or flat rates of $2000 to $4000. Again, if you find a broker directly through a listing, this will be “free” help. You may get lucky and find a gem but you might end up getting what you pay for. Don’t forget that a broker that comes from a listing is actually working for the seller since that’s who is paying them. </P> <P> This is a big decision you are making here so this help really is necessary and worth the money if you are serious about purchasing a business. If this seems like too much money to make sure you do things right, then maybe you aren’t really ready at this point in time. </P> <strong> Conclusion </strong> <P> One final point about who you choose to help you find the right business and ultimately purchase one. Do yourself a huge favor and do not employ an accountant or attorney as your advisor. Everyone has their place in this process and this is not the one for either of these professions. </P> <P> Although these professionals are needed in the process and should have experience in business buying/selling procedures, the majority are not qualified, nor do they have the time, to be a business advisor to you. If that was the thought process you had, forget about it right now. I promise you it will not be money well spent. </P> <P> Please keep in mind that any advice you get from a Broker or Advisor is just that: advice. This is your money, time and effort going into the business you want to find and purchase. All final decisions are yours to make. </P> <P> Being prepared before even starting your hunt is essential. Getting help doing anything you have not done before is just as important. </P> Acquireo.com - George Sierchio Thu, 20 Sep 2007 13:34:16 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/buying-a-business--prepare-yourself.aspx <P>So you have decided that you would like to run your own show and buying an existing business versus starting from scratch is the way to go. This is a very wise decision if you have not been involved in a start-up before. The question then is: Are you ready? </P> <P> The following steps need to be taken in order and looked at very seriously. This is just the beginning but it is necessary to be in the right position to make what will be a very big, life changing move. </P> <P><strong>Step 1: What type of business?</strong> - You need to decide what kind of business you want to be in. At least whittle it down to two types. If you don’t, a few things will happen. First, you will be looking for a long time in a very wide circle. It is hard to get a grasp on a good business opportunity when you have no idea where you want to be. If you are all over the place, you are not ready to buy a business. </P> <P> Second, the people who will most likely be helping you (advisors, brokers, etc.) will not want to be around you for long. They will be spinning their wheels with you and will quickly put you at the bottom of the list. Even sellers who are attempting to sell on their own will get annoyed with you very quickly if you bombard them with questions but otherwise don’t seem too interested in their business. </P> <P> <strong>Step 2: Do you need a partner? </strong> - Partners are necessary for two things. Either they will supply you with capital or they will provide you with skills you may not have. The latter is a better reason for a partner and a combination may work as long as you are going in with an even money 50-50 deal. I don’t recommend picking a partner based on their bank account. You will most likely have major problems within 12-18 months. Trust me, I’ve been there. </P> <P> Running a business by yourself, especially for the first time, is a scary proposition. But having a good accountant, lawyer and a business advisor is the way to go. At one point or another, even your best friend will turn on you as a partner. </P> <P> You are better off having someone that covers your shortcomings as your employee, along with a deal to give them a small piece of the pie while they remain an employee. Having a partner or two holding a large chunk of the business over your head will quickly stifle you and make you regret the purchase. </P> <P> <strong>Step 3: What kind of buyer are you?</strong> - In my experience, there are three main types of true buyers: those that look only for high cash flow, those that look for decent positive cash flow with the thought of using their experience to grow the business, and those I like to call bottom feeders. </P> <P> Bottom feeders like to look for sellers in a really bad position such as fighting partners (see step 2), or negative cash flow due to an inexperienced owner. These are perfect to scoop up for next to nothing because the sellers not only want to get out, but they need to get out. </P> <P> If you are a bottom feeder though, you better be good at turning things around quickly because these businesses are in major disarray. Being able to see how to get them into a positive cash flow or a good light quickly is a necessary skill too. A bottom feeder could also be looking for the opportunity to grab equipment and fixtures cheaply for their already running business. </P> <P> Also keep in mind that it will be next to impossible to get seller financing from these types of purchases. The last thing these people want is to remain tied to the business or their arch enemy ex-partner. </P> <P> I should point out that if these are “true” buyers, then there are also “false” buyers. These people are either the unprepared and uncommitted buyer that I am trying to not let you be or they are just looking for information. This means either they already have a business and they are trying to scope out competitor info to help them or they are prepping to start a business from scratch and could use the information to help them get a leg up in the process. </P> <P> <strong>Step 4: How am I going to pay for this? </strong> - Please don’t make the mistake of thinking that because you are buying an existing business that a bank is just going to hand over the money. Even if this business is doing extremely well, this most likely will not happen. It is true that buying a solid business with strong cash flow will help, but the business type, collateral and your background are very significant. </P> <P> And no, you can’t just apply for an SBA loan. These are not easy to get and yes you do have to pay them back. The government isn’t that nice. Again, business type, your personal collateral and a lot of other factors determine this loan process. Normally, this is not the fastest way to get a loan either. </P> <P> Please know that your own money (including your house) as well as friends and family are going to be your main resource. Property involved in the sale is a big help. Keep in mind that the “cash based” business you may be dying to get into is the hardest to get funded by a bank. There is usually not enough proof on the books and in tax records for a bank to give you a loan based on the merits of the business. That’s the main drawback of the cash business. </P> <P> There is one other way to get a loan. That would be through the seller and it’s called “holding a note”. Risky businesses like bars and restaurants (especially without property), as well as any other retail type business, are a prime target for a seller holding a note. Typically you will being putting down 30%-70% with the rest financed with or without interest for a period of 2 to 5 years. It may take some convincing, but most sellers will give in when they realize that in order to get what the business is worth, they need to hold a note. Business Brokers come in handy when this kind of convincing is needed. </P> <P> <strong>Step 5: What can I afford? </strong> - Usually the cash flow of the business is the best indicator to use for valuing a business. Often a “rule of thumb” multiple for the industry combined with factors such as location, years in business, revenue trends, market situations, etc. are used to multiply against the cash flow. When this is the case, the buyer and seller will be closer to being on the same page for determining a fair price. </P> <P> It is also a good indicator to use because this is how you will determine if you can pay off a loan using the business cash flow. For instance, say a business has a $100k cash flow and you buy it for $200K with 50k down. That means you have a note for $150k. Say that the note has a 2 year time frame with no interest from the seller. That means you will be paying out $75k a year for two years. </P> <P> Can you survive personally on $25k or less a year for 2 years? Don’t forget that things will probably slip a little when you take over and that you may need additional capital as is often the case. Do you have enough in the bank to handle this for 2 years? </P> <P> You need to know this. Having these scenarios in your head ahead of time will eliminate looking at businesses that don’t completely fit your needs. This will also avoid wasting time, money and energy. It’s not as simple as finding a business with a great cash flow and hoping all is well. </P> <P> Hopefully this very simplified example will show you that it takes money to make money even in an established business. If it were that easy, anybody could buy a company with a million dollar cash flow. </P> <P> <strong>Step 6: Commitment to buy </strong> - This sounds obvious but it really isn’t. You will be wasting a lot of your time, seller time and broker time if you are not absolutely sure you are ready to do this. In addition, you will waste money if you get an advisor involved to help you determine if this business is a fit and worth purchasing (I highly recommend this by the way) without being mentally ready and committed. </P> <P> Believe me when I tell you that a seller or broker is not going to give you much financial and business information unless you are committed enough in the buying process. An uncommitted buyer is very easy to spot, especially to a business broker. </P> <P><strong> Congratulations!</strong> You are now ready to start shopping for a business and will be prepared to buy when the right opportunity presents itself. I know I have said it a few times before, but I highly recommend using a business advisor to prepare yourself in determining the right business and price range for you before business hunting. </P> <P> Again, having a broker between you and the seller is also a good idea. Most importantly, do not get a lawyer involved at this time. Unless you need a pre-emptive agreement made between you and a potential partner, attorneys are unnecessary and a hindrance at this stage. They really should not be introduced into the process until you are in the due diligence stage. </P> Acquireo.com - George Sierchio Thu, 20 Sep 2007 13:14:29 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/finding-a-business-to-buy-and-determining-an-offer-price.aspx <P> So, what is really involved when finding a business to purchase and how complicated could it be? </P> <P> I’d like to say the answer to this question is “it’s very simple”, but since it really isn’t, I won’t insult your intelligence. And it is definitely not similar to searching for a home. Except for the fact that there are Brokers to help you and market trends involved to assist in valuations, there is no comparison to buying a home. </P> <P> Believe me, if you have not bought or sold a business before, this process will come as a shock to you if you are looking to compare it to house hunting. </P> <P> In this process, you will be highly analytical and the Seller will be highly emotional. This is their baby that they have built on their own, or like you are attempting to do, have bought from someone else and made it their life. Hopefully I can help prepare you for the general process steps that will occur. </P> <P> Before you go forward and read the steps below, it is important that you have already prepared yourself to buy a business. To make sure you are ready for the information in this article, please read my other article that precedes this one entitled Buying a Business- Prepare Yourself. </P> <P> <strong>Step 1:<i>Shopping</strong></i>- There are many places to look for businesses for sale and there are ways to go about buying unadvertised businesses. This second way is a little complicated and too much for this article so we will stay with advertised businesses for sale. </P> <P> As far as looking for advertised businesses are concerned, the internet is a great place to look. The newspaper is the worst place to look and in a moment I will tell you why. </P> <P> You will find two types of businesses in your hunt: those for sale by the owner and those for sale through a Broker. Not to get too in-depth since it is a subject in itself, you are much better off sticking with Broker based sales. These can be found on Broker websites and they also occupy 95% of the listings on general business for sale sites. </P> <P> I recommended staying away from newspapers because most of those ads are for sale by owner (FSBO) businesses. On top of that, they do not give you enough information to warrant truly looking into the business. </P> <P> Concerning dealing directly with Sellers, it is a rare instance that this is ever a good experience. The pricing is normally way off and the information is very often inaccurate. If you get past that, then the negotiating will often be very unpleasant. </P> <P> Working with a Broker is a good idea and you don’t have to work with just one company. Go to as many as you can find but only continue working with those that you feel comfortable with and those that pay attention to you. If you are a prepared Buyer and a Broker does not give you the attention you deserve, get another one within that brokerage. </P> <P> You will often find listings on a particular internet site to be the same because most Brokers work on a non-exclusive basis. Don’t get confused if you see very similar listings since they are probably the same business. </P> <P>By the way, when I say use a Broker, I mean a BUSINESS BROKER. </P> <P> Do not waste your time with any listings you find with a Real Estate Broker. The majority have conned a not-so-savvy business owner into thinking that they know how to price and sell a business just to lock them into a 6 month contract and hope a sucker comes by to purchase the business. Don’t be that sucker. Again, this is not like selling or buying a house so stick to a Business Broker. </P> <P><strong> Step 2:<i>Taking action</strong></i>- If you see something you like, take the next step in getting more info from the Seller or Broker. You will most likely need to sign a non-disclosure form. If a Brokerage gives you this form, you will only have to sign it once and it will carry over to every listing they show you. </P> <P> Respect this short but very legally binding document. It should basically state that you will be receiving confidential information and you agree to keep it confidential. Confidentiality will also mean not exposing the for sale status to any employees, vendors, customers, etc. </P> <P> Lastly, it will have a circumvention clause that states if you try to pull a fast one and go around the Broker after you have this vital information, you will be caught (believe me you will) and you ,as well as the Seller, will owe money to the Brokerage company. It’s shady and not right so just don’t do it. </P> <P><strong> Step 3:<i>Information gathering</strong></i>- Once you have signed the non-disclosure and asked for further information, you will receive a packet of vital information. In most cases you are not going to get 3 years worth of tax documents or even P&L reports for that matter. You can ask for it, but the odds are slim on getting it. That’s too much information at this point to give to a semi-committed Buyer. </P> <P> What you will get is a profile which will give the latest 12 months of revenues, expenses and cash flow information. Other provided information may be whether inventory is included in addition to its value, the value of furniture, fixtures and equipment (FFE) but not a list, an extended business description, and lease or property purchase information. </P> <P>At this point the address and name of the company may be given to you, but often that is done after you have reviewed the information and request to see the business. Again, this avoids giving tire-kickers vital information and the location when they are really not serious Buyers. This may disrupt the business or waste the Seller’s time. </P> <strong> Step 4: <i>Review</strong></i>- Once you have the vital information you need you must really review it. This is the time to ask questions. However, it is not the time to start negotiating. </P> <P> If you are getting into a business that you are not very familiar with regarding the technical aspects, get some help with good questions to ask. Believe it or not, asking irrelevant questions will not be received kindly with either the Seller or the Broker you may be working with. </P> <P> There is nothing wrong with going into a fairly unfamiliar business, but asking the right questions with help from a Business Advisor or Broker will become essential in this type of circumstance. Asking nothing at all, whether you know the industry or not, is also not a good idea. </P> <strong> Some basic questions would be: </strong> <P> Is there anything missing in the profile or something that doesn’t make sense? An example would be a profile that says there are 3 full time employees but there is no payroll information at all. </P> <P>Is there any seasonality to the business?</P> <P> Is there any heavy competition in the area?</P> <P> Again, you and your advisors can come up with many questions depending on the type of business. The kinds of questions that won’t usually be answered are along the lines of very in-depth financial inquiries or those related to contacting vendors and such. </P> <P> You are looking to ask mostly surface type questions to determine if you would like to get to the next level of digging into the company. There is still no real commitment to purchase at the next level, so don’t feel you need to know everything to get there. </P> <P><strong> Step 5: <i>See the business/Seller meeting</strong></i>- When you have done your review and things still look interesting, this is the time to request a viewing of the business and/or a meeting with the Seller. </P> <P> A meeting with the Seller will not be made to negotiate price when dealing with a Broker. This is neither the time nor the place. Doing this separately with the Broker in the middle of the Seller and you is crucial. </P> <P> If a Broker is not involved, this meeting will probably end up being the start of negotiations between you and the Seller. Again, it often ends up not being pretty unless you are going to offer very close to the asking price. This is why I do not recommend dealing with FSBO businesses. Most smart Brokers will also have you conduct a visit before allowing a Broker-mediated meeting with the Seller. </P> <P> Assuming a Broker is involved, they will give you the business address to visit it. Depending on the type of business, a discrete “drive-by” will be permitted or an arrangement to see the business after hours will be made. Retail establishments will almost always allow you to do the “drive-by”, which entails seeing the business through the eyes of a customer. </P> <P> Talking to employees, customers or looking for the owner will get you immediately blacklisted from this business as well as any others you want to see if working with a Broker. If working with a FSBO, you will probably get yourself thrown out very quickly and the deal will be dead. </P> <P><strong> Step 6: <i>Determine an offer price</strong></i>- Here is the one thing that almost all first time business Buyers do not do well. First, you need to understand that if the business was appealing enough to get you this far, then you should come up with an offer to the Seller. If you are going to completely insult them by low balling well below market value, don’t do it, but you really don’t know what they will accept without putting some kind of offer on the table. This is an automatic missed opportunity if you don’t give it a shot. </P> <P> For example, a business could be on the market for $300k and it was attractive enough for you to get to Step 5 of the process. Let’s say you determined there are factors in your research that lower the value of the business such as the need to replace some of the equipment. Now you think an offer of $200k would make more sense. Well, offer a little less than the $200k with your reasons behind it. </P> <P> If it is a price you can live with and it makes sense, go for it. The Seller just might take it. If the Seller balks, then you move on. That decision by the Seller will probably tell you they are unreasonable and someone you don’t want to deal with anyway. Maybe he will change his mind before you find another suitable deal. Or maybe he will come up with a counter offer. You will never know if you don’t put it out there. Don’t make assumptions. </P> <P> Hopefully you initially chose to look at this particular business because it fit all of your pre-business hunting criteria that you established. On top of that, I will assume you have conferred with an Advisor that has market/industry knowledge who determined that the original asking price made sense based on preliminary information. If this is all ok, then the process of determining an offer price in this step should be relatively painless. The offer will sit well with you when you make it regardless of whether the Seller takes it or not. That’s the goal. </P> <P>Congratulations, you are now ready to make an offer! At this point you have done everything possible to determine that this business is right for you and you have come up with a corresponding price tag. </P> Acquireo.com - George Sierchio Wed, 19 Sep 2007 02:31:36 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/hiring-an-accountant-for-the-business-buying-process.aspx <P>As a business buyer, you must understand when to bring on the help of an Accountant and to how hire those with the right experience. Accountants are not business advisors, although some actually are Attorneys. I don’t recommend using the same person as your Attorney and Accountant. That situation usually does not end up working to your advantage as you may think. </P> <P> First things first about Accountants; you need to use a CPA. This skill set is much different than a bookkeeper or a friend that is a CFO at another company. Accountants are very good at one thing; history. They crunch numbers based on historical data to let you get a true picture of the business you are looking at and find any hidden finance related inconsistencies. They can also sometimes model forecasts but are mainly very adept with past/current financial data and tax related implications regarding the purchase and operation of the company. </P> <strong>Where do I find these professionals?</strong> <P>If at all possible, you should ask around to other business owners that you know or you can ask your Business Broker or Business Advisor. It is best to stick with someone that is both local to the area in which you are buying the business or local to your home. Your attorney may also have access to a good business savvy Accountant. </P> <strong>What are the best hiring criteria?</strong> <P>Like I mentioned before, the Accountant must be a CPA. They must also have experience with businesses and preferably businesses of the size you are looking to buy. Someone who just handles personal accounting issues is not someone to bother with. Even better, but not necessarily a must, familiarity with the industry you are buying in would be a plus. This experience should really include knowledge of the due diligence process. Additionally, you want to set yourself up with someone that you feel will treat you with importance even after you buy since this is the person you should have on your team throughout the life of this business venture. </P> <strong>When should I hire one?</strong> <P>Once you have done all of your prep work including knowing exactly what type(s) of business you are looking for, then you should start looking for an Accountant. With this key information settled in your head, now during your interviews you can ask about their background with those company types. Do not actually bother hiring an Accountant until you are sure you are going to submit an offer on a business, which starts your due diligence. </P> <strong>What will they do for me?</strong> <P>First off, I should warn you that what you don’t want them doing for you is performing a valuation, unless they have a lot of experience doing so with the industry you are looking at. This is not their strong point. They should be taking the due diligence financials (P&L’s, Balance Sheets, Tax docs, etc.) and comparing them to what you were told via the Seller’s business profile as well as making sense of them to paint a financial picture for you. </P> <P> A CPA should be able to show you past performance versus current performance. They may also be able to give you an idea of the future performance. Hopefully they can set up a spread sheet for you to try and run some possible projections by adjusting numbers on the spreadsheet. A good Accountant will also apprise you of any tax related issues that may come about regarding the business itself and with financing the purchase of the business with personal, bank, or seller funds. </P> <P>Don’t bother asking their opinion of whether to buy or not. Even if they have one, it shouldn’t sway you either way. You have seen the business and during due diligence you should be observing it even more in action. That in conjunction with the financial picture the Accountant paints should be your indicators. Even if the business has numbers falling off, as long as there is no missing information (like a ridiculously low payroll) it does not mean the business is a bad buy. It may mean that the current owner is just flat due to being ready to retire or just plain losing interest. That’s why a Business Broker or Advisor can add good insight with the financial picture from the Accountant. </P> <strong>How much will it cost? </strong> <P>Unfortunately you really need an Accountant for your due diligence and you will most certainly need one for when you are actually running a business. If you chose one correctly by experience and fit with your personality, it will be worth the money. Although the rates can be all over the board depending on where you are located, generally the rates should be in the range of $120-$175 an hour. With this said, it will probably cost in the neighborhood of $1200-$2000 for most small business purchases. Not ridiculous but it adds up quick if you are not prepared and end up going to due diligence on 3 or 4 businesses instead of 1 or 2. </P> <P> Making the right choice regarding an Accountant is crucial but much of that choice is based on your preparation before starting to hunt for a business. Do not overlook this fact. A good Accountant will also help to make sure you get all of the key financial docs from the Seller. Those key docs are based on the type of business you are looking at. Again, that’s why knowing what you want to buy and hiring an Accountant with a background in that business along with due diligence experience is important. </P> Acquireo.com - George Sierchio Wed, 19 Sep 2007 02:24:32 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/when-starting-or-buying-a-retail-business.aspx <P>Retail businesses cover a huge group of stores that sell every product known to man. Retail stores can be in the grocery business or sell parts for the automobile. The retail business that you want to own should be in an area of interest to you so that you approach it with an inner passion. If you love messing with cars then a parts business would be a retail business you could enjoy. The same could be said for antiques or rugs. The products your store would sell depend on the knowledge you bring to the business. Specific interest in certain things that people will buy will give you an edge when speaking to customers. If you were an expert in a certain field this would be a natural area to sell products to the customers. Finding a business for sale in a category may take a business broker to find or the buyer could start one up from the ground up. </P> <P> There are so many retail categories that you will need to speak with a business broker to get an idea of the businesses that may be for sale. You may go looking for one type of business and find another that looks even better. You would also be wise to check the local papers for businesses for sale by owner. Another choice is the large number of franchises that are available to a retail store buyer. There are advantages to a franchise store in this crowded field of retail outlets. </P> <P> If you are of the mind to start one of your own, you will have to be very careful about the location so as to get a shot at traffic that passes the store. A shopping center with a large traffic base like a name grocery store would be a good place for almost any kind of retail store. Location is extremely important in the retail store business. The passing traffic can make a store or kill it off. The lack of traffic is hard to overcome for most retail stores. A unique niche store will also get business if it is a one of a kind for the area. People will drive out of their way to get to a special store that sells what they are looking for. If your store fits that bill, you will get customers. A me-too store will have a difficult time in an out of the way location. </P> <P> Another way to look for a retail store is to look at the ones that are successful in your area. Why do they have a following and is their product line different than other stores. Try to think of what you could do to be unique in your area and eliminate the me-too look for your business. A really different store can do well if there is a need for the products it sells. Difference for just that is not going to hack it. Find a need and fill it is a standby statement for success. </P> <strong> How to find the right business for you </strong> <P> Make a list of retail type businesses you would not like running and then do the same for the ones you would like to run. The list that you like is the areas you should concentrate on. Liking what you do and making money is the likely step to being happy with your company. It is also a business if other factors are reasonable, you will have a very good chance of success running. Making money in a business that you do not like is not enough for most people. Over time they will come to dislike going to work and will eventually sell out. </P> <P> Another factor that is not always considered by a new owner is the hours you will need to be at work. Some one always needs to be there during store hours. If you have a large older family this may be an easy problem to solve. On the other hand if your spouse has a job and you are the only one available you will be elected to work the hours that need to be covered. This may be necessary at the beginning as you may not be able to have all the employees you need to cover the store hours. Some people in the food franchise business have discovered that all they purchased was a grueling job with endless hours of work. If you were purchasing a successful existing business with employees, you would be wise to find out what the staff plans to do when you take over the company. You really need to find out what key employees are planning. This could be critical to the continued success of the company and keeping the business on an even keel. </P> <P> A great suggestion right after you take over is to have a meeting with all of the employees to introduce yourself and discuss any significant changes you plan to make in the near term. You would be smart to keep changes at a minimum for a while if the business is already doing very well. Change to show who is boss is a stupid thing to do. </P> <strong> Money makes the deal happen </strong> <P> Money is the key ingredient when buying a business. A cash deal will be the cheapest and the easiest to complete. Finding additional money over what you can put up is the next common hurdle that a new owner has to face. Some would-be owners have other assets that they can use as collateral to make a loan. Other potential owners will approach the business lenders that can be found on the Internet. Many will have spoken with their banker or relatives. If you can get the extra money from disinterested third parties you should be able to buy the business for a better price since you are offering a cash-out deal. Bringing the needed money to the table makes for a better bargaining position. </P> <P> Buying on terms from the owner will usually cost more money in the price and interest. Many owners do not want to stay connected and will not consider a terms deal. The best you can do is make the offer and see how the current owner replies. </P> <strong> Conclusions </strong> <P> The retail business is a smorgasbord of possible business ventures. The yellow pages of any major city will verify the huge number of possible business types. It does not matter what your interest are, you will find a business to help you with your needs. This opens the door for you to either buy or start a business that you have an interest in owning. Your basic interest will help you live with the business once you own it. It is a strong factor in the success of the business. Running a business you like will be very helpful in facing the day each morning when you get up and have to go to work. </P> <P> The wonderful world of retail business is so diverse that there is room for just about any kind of retail business. People with very specific needs will go to special retail shops and those with usual needs to go to the stores that are most convenient for them to go to. This area of ownership really comes down to the interest of the owner. </P> <P><I><strong>If you are looking to own a retail store,Acquireo has a variety of retail businesses listed by brokers and private sellers below:</strong></I> <ul><li><a href="http://www.acquireo.com/tag/clothing-store.aspx">Bridal shop for sale, Clothing boutique for sale</a></li> <li><a href="http://www.acquireo.com/tag/dollar-store.aspx">Dollar store for sale</a></li> <li><a href="http://www.acquireo.com/tag/jewelry-store.aspx">Jewelry store for sale</a></li> <li><a href="http://www.acquireo.com/tag/gift-shop.aspx">Gift shop for sale,Candle and gift shop for sale,Candle and floral shop for sale</a></li> <li><a href="http://www.acquireo.com/tag/furniture.aspx">Furniture stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/womens-clothing.aspx">Womens clothing business for sale</a></li> <li><a href="http://www.acquireo.com/tag/mens-clothing.aspx">Mens clothing business for sale</a></li> <li><a href="http://www.acquireo.com/tag/lingerie.aspx">Lingerie business for sale</a></li> <li><a href="http://www.acquireo.com/tag/kitchen-cabinet.aspx">Kitchen cabinet business for sale</a></li> <li><a href="http://www.acquireo.com/tag/bakery.aspx">Bakery for sale</a></li> <li><a href="http://www.acquireo.com/tag/candy-store.aspx">Candy stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/food-retail.aspx">Food retail Business for sale</a></li> <li><a href="http://www.acquireo.com/tag/donut.aspx">Donut business for sale</a></li> <li><a href="http://www.acquireo.com/tag/snack-retail.aspx">Snack retail business for sale</a></li> <li><a href="http://www.acquireo.com/tag/snack.aspx">Snack business for sale</a></li> <li><a href="http://www.acquireo.com/tag/cosmetics.aspx">Cosmetics business for sale</a></li> <li><a href="http://www.acquireo.com/tag/art-gallery.aspx">Art gallery business for sale</a></li> <li><a href="http://www.acquireo.com/tag/hardware.aspx">Hardware business for sale,Hardware store for sale</a></li> <li><a href="http://www.acquireo.com/tag/super-market.aspx">Supermarket business for sale</a></li> <li><a href="http://www.acquireo.com/tag/card-shop.aspx">Card shop for sale</a></li></ul></P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 18:30:22 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-real-estate-business.aspx <P>The real estate industry is very sensitive to economic changes like interest rates and the cost of materials in building houses. Interest rates in particular can easily swing the number of sales that are completed during any quarter of the year. Rising interest rates will slow down the sales and falling rates will aid the sales of real estate. This is an important fact in the real estate business as this can absolutely cause rapid changes in income from the sales that can be made. </P> <P> With this in mind, the time to buy an agency that comes up for sale may be when the real estate business is in the doldrums. A hot real estate market will make an existing firm worth more, as their income will be higher during this period of time. Of course if you follow this course of action, you will have to wait out the slow down in the markets. Another factor in the purchase or start-up a real estate company is the state licensing requirements. Most states have serious requirements for real estate agents and brokers. Brokers have a much stiffer requirement in most states than an agent. The requirements include passing exams and a fixed number of educational hours for both agents and brokers. There is also a requirement for continuing education. These state mandated steps to a career in the real estate business would have to be met before an agency could be purchased or started. Since this industry is regulated and has strong legal steps to comply with, this licensing plus experience would be an initial step to being an owner in this field. This is not a business that can be stepped into by just paying out some money. </P> <P> An agent can have the goal of owning their own firm, but it will take planning and meeting the state rules to make this happen. Once a potential owner has these steps out of the way, finding an existing business to buy will be in order. A quick check of real estate business listings reveals that they are usually found in larger cities and the asking price is significant. There are also resales of franchise companies. Just typing into a search engine, “Real estate businesses for sale”, came up with this quick check. A buyer could also check with business brokers and real estate brokers in their city. Another source worth checking out would be a franchise connection. An in place real estate business is advantages as the name is already known and will get clients due to this. When you start a company from the ground up you do not have this advantage. An existing business with several locations will come with a higher price tag than what you could start your own business for. </P> <P> Another way to gain ownership would be buying into an existing business. This could work if you have a solid relationship with the current owner. The problem is you will not have the final say in most decisions unless you are buying controlling interest. </P> <strong> Specialty real estate firms </strong> <P> Most people think about a firm that helps with the buying and selling a home. There are several other areas of specialization. A real estate firm could become expert in buying and selling commercial property, farmland and farms, farm product processing plants, rental properties and shopping centers. Actually a broker could cut out a niche market from many that are available in the real estate business. If you have an area of expertise, this could become something that could be marketable and cut out a lot of competition in certain situations. Some real estate firms have unique departments that handle certain types of real estate marketing. The decision you must make is what kind of a firm are you going to own. You may have to start your own in order to make it happen. </P> <P> You could also get into real estate management and the buying and selling of these rental properties, which is a very unique part of the industry. Shopping center related firms could be in from the start of a project. They can help with the formation of the firm to build and own the property and then handle the rentals and day-to-day management of the center. </P> <P> The point of all of this is there are areas of real estate specialization that lend themselves to a business that just works in this real estate category. </P> <strong> Finding the money to make your dream happen </strong> <P> You may not have the total purchase price for an existing business. The question is how do you come up with the balance to make the deal. Finding a source to lend you the money is one way to come up with the needed funds. There are businesses that offer loans to new owners of businesses. These can be found on the Internet by just doing a search. Family and friends could be another source of money. One way to get the needed money is to take in a partner for the business. If you have a friend in the business maybe they would be interested in owning part of the existing company. All of these possible money suppliers will have different requirements for paying the money back. Make sure you can see your way clearly on how you will accomplish the pay back. This business can be adversely affected by interest rates so you would need a second way to make the payments. A person thinking about ownership in this field must remember that it can be feast or famine as far as sales and commissions go. This is not like being in the restaurant business or owning a printing company. Successful brokers can make considerable money in a good market. They can also have periods that are very tight as to sales. The brokers that succeed have a policy of putting away some of their earnings during good times to cover the less profitable times. Doing this just shows the broker has a realistic view of the business. </P> <Strong> Conclusions </strong> <P> This business can be extremely profitable during low interest rate economies. The legal and state requirements make the ownership of a brokerage firm more difficult to own than is the case with other businesses. Buying and selling a real estate business is somewhat more difficult due to the restrictions that are placed on the owner of a real estate firm. You must have the appropriate licenses in place before you can begin operation. This is true whether you buy a company or start one up from scratch. Finding a firm you can afford will take some time and research on your part. Hiring a professional business broker may speed up the search. </P> <P> Deciding early on if you want to be a specialist will set other decisions in place. Niche areas that you are an expert in will help cut the competition somewhat. A general real estate business will have the potential for more clients, but will need and ongoing advertising campaign to gain listings and clients looking to buy. The start-up is cheaper to open, but will have little cash flow like an existing firm. Money flow is the one huge advantage buying an existing business offers to the new owner. </P> <B>Real Estate businesses for sale listed by business brokers:</B> <ul> <li><a href="http://www.acquireo.com/tag/broker-mortgage.aspx">Broker Mortgage business for sale</a></li> <li><a href="http://www.acquireo.com/tag/real-estate-broker.aspx">Real estate broker business for sale</a></li> <li><a href="http://www.acquireo.com/tag/property-management.aspx">Property management business for sale</a></li> <li><a href="http://www.acquireo.com/tag/home-inspection.aspx">Home inspection business for sale</a></li> <li><a href="http://www.acquireo.com/tag/surveyors.aspx">Surveyors business for sale</a></li> <li><a href="http://www.acquireo.com/tag/commercial-real-estate.aspx">Commercial real estate business for sale</a></li></ul> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 18:20:43 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-floral-business.aspx <P>People purchase flowers and plants as gifts and for their own enjoyment. This growing business niche should be considered like any other retail business with a perishable product line. There are two ways to become an owner of a floral shop. You could start one from the ground up and build the business. The other way is find one that is for sale and make the purchase. There are valid reasons to go either way. The big plus for buying an existing business is they have a following from an existing customer base. This fact will mean an immediate cash flow to the new owner. A purchase of an existing business will cost far more than starting one from scratch. This is the basic reason to start from scratch. </P> <P> The lower cash outlay to become an owner of a floral business could be the one factor that makes a person go one way versus another. If a person is going to open a brand new shop, they will have to pay particular attention to the location of their new store. Drive-by traffic and walking traffic can make a big difference in how fast the business grows. This type of floral operation would be the typical florist’s shop that you can find in many shopping centers. There are other variations of this type of floral business that a knowledgeable person could start or buy from a current owner. You could get into the wholesale side of the business and supply retail shops. You could supply businesses with floral arrangements that they want delivered every week. Weekly deliveries that are done on a contracted basis could be in addition to the normal business of the shop. </P> <strong> Where to find floral businesses that are for sale </strong> <P> One of the first places to start the process of looking for a business is to contact companies that franchise floral shops. They will know of any for sale or how to start a new one. Another quick source is to use an Internet search engine and see what comes up under floral businesses for sale. Acquireo.com has a list of <a href="http://www.acquireo.com/tag/florist.aspx">Florists for Sale</a>. A third excellent way to discover businesses for sale is to contact business brokers to see what they have listed in their firm. All of these sources will probably bare fruit and will jump-start your search for a business you can buy. A study of what is being offered will help you see what kind of money is needed to buy an existing shop that has been successful for a few years. The business brokers will usually know if the current owner is willing to carry back some paper or not. Knowing the lay of the land will give the prospective buyer knowledge of what they will need to do to buy an existing business. Being forewarned and aware could help shape an offer in the best light. A seller that claims that they will not consider an offer that is not the full price may waffle when shown an offer that is close to what they want and will entail a short term payment period for the balance. </P> <P> Local newspaper ads are sometimes good places to find an offer to sell by an owner. You might also check with wholesale florist. They may know of a shop where the owner wishes to retire so they are looking to sell. Digging out possible purchases is grunge work, but it could pay off in the end with a great purchase of a successful business. Looking and asking is what it is all about and the time spent this way will give you a feel for what the market seems to be asking for a business. </P> <p> Negotiating the deal with the current owner is sometimes better left to the broker than a direct face-to-face with the owner. The professional business broker has done this before as part of getting a buyer and seller together. Their experience may be worthwhile when working out the final price for the sale. If terms are needed, it is better coming through them than in an immediate meeting. Giving every body time to think is all it takes to let a deal simmer and then come to completion. </P> <strong> If you have the money we can deal </strong> <P> The long time saying is “money talks”. When buying a business this is absolutely a fact. Hard cash deals are difficult for a motivated seller to turn down. The secret for the buyer is to make a trial offer and see what kind of counter offer comes back from the seller. If you have all the money in cash, this makes your offer very attractive if it is even close to the bottom dollar the seller will accept. If you will need some term to buy, the seller will ask for more money as a final price. Most sellers have two prices in mind, the cash price and a terms price. It may be to your benefit to arrange for another source of needed extra money over what you already have available. Possible sources for this money are a bank loan, a business lender loan or family and friends. A business lender makes loans all of the time to buyers of businesses and they are very well versed in this type of lending. Because of their special knowledge, they may be easier to deal with. You can find several such lenders by doing a search for business loans on the Internet. If your credit rating is strong and you have other assets, you may be able to get a loan from your local bank. Friends and family are a final choice after the first two have not panned out. </P> <P> It is to your advantage to offer an all cash deal to any seller as this will usually save money and give the offer more creditability. Money talks very loudly when buying a business. Let the seller stew over your offer and make the decision to accept the offer or reject it. If the business has had few offers, then yours may look like a gift from heaven. </P> <strong> Conclusions </strong> <P> The floral business is a niche business in the world of small businesses. A shopping center shop can be a little gold mine due to the traffic that wanders by the business. Customers buy gift for others and they also buy for their own enjoyment. Fresh flowers smell good and look marvelous when professionally arranged. If is hard to walk into a shop, browse and not buy something. The return on investment can be very good when the business has a substantial clientele. This solid success will also raise the price of this existing business so you can expect to pay top dollar to purchase it. Remember though that you start getting your money back almost immediately as the cash flow will begin right away. </P> <P> If you start a new shop in a center you can expect slow growth for a while until you develop a clientele. Your cost of doing this should be far less than if you have purchased a going business. The decision is yours to make depending on the funds you have available to own a business. This is a common choice that new owners have to make. </P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 17:08:25 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-property-management-business.aspx <P>Property management is a business that is regulated and requires a real estate license in many states. This first step requirement means that the potential buyer of an existing business would need to be qualified to run the business. They would also need to meet the same requirements to start one from the ground up. </P> <P> One way to get experience in the business is go to work for a large management company and learn the ropes. At the same time you could be completing any educational requirements and prepare for taking the license required to professionally manage properties. Starting a company of your own will take some strong detective work to find a property that is looking for management or looking to replace the current management firm. This will entail a great deal of cold calling and phone work to come up with possible clients. </P> <P> At the same time you could get a web site built so you will have something to point people to when you are speaking with them on the phone. You would also mention the website in all communications or advertisements. All of this would come after you have decided on a company name and have a phone number and address for your business. </P> <P> Knowledge and preparation are requirements for success. Whether you buy an existing business or start one up, you will need to gain experience and first hand knowledge of the business from some source. The best way to gain real experience is to work in the business for a year or so for a management company. The requirements in your state should be checked also to see what licenses are needed. There could also be educational requirements that you would have to obtain. A smart person would make sure they have all of these ducks out of the way while working for someone else. The real estate department of your state will be able to give you the information you need to know. There also could be an association of property managers in your area. Both of these sources are a place to start to find the information you need. </P> <strong> Finding property management companies that are for sale </strong> The Internet will quickly give you and idea of what is for sale and where they are located. Business brokers are another solid place to find listings of businesses that are currently on the market. You can also get questions answered about the way to buy one of these businesses. One important facet of the businesses for sale is the asking prices. This may be eye opening for you. You might also check out local newspapers and the local real estate association. Lawyers that specialize in real estate transactions may also know of management companies that are looking for a partner or are for sale. Once you have an idea of the capital needed to pursue a purchase you can begin to figure if you can make a deal. If you are going to need help with the money you will have to resolve that common problem also. The business brokers will have a good idea if the listed business is cash only or the current owner would consider terms. This type of information will speed up the process of finding a deal that you may be able to pull off. <P> Another aspect of property management is the properties handled. Are you going to only deal with large apartment complexes or single-family residences? The type of properties you wish to handle could determine the price of a management company. </P> <strong> Money makes the deal </strong> <P> Money talks when buying a business. The seller is usually anxious to sell and if a real money offer is made, they may bite even if it requires terms to complete. The point here is make an offer and see what the seller responds with. You never know what kind of help you may get from a motivated seller. Other ways to make up a short fall is a loan from the bank, a business lender found on the Internet, a partner and family or friends. Some deals take a great deal of creative financing to pull off. If the existing business has long-term contracts with their clients it may be easier to get a loan from a disinterested third party. The most common way to handle the short fall is to get the seller to take back paper to be paid in full by a set date in the future. Maybe they would remain a silent partner for a short length of time. The answer to this problem is how much you can put down and how long you would need to pay off the balance. </P> <P> The only way you will ever know if a deal is possible is to make an offer and see what the counter offer looks like. The business broker in a deal can help in the negotiations and in many cases make it happen through their deal making skills. </P> <P> If you come to a point in any deal that the final terms are too difficult for you to live with, then it is time to take a walk. Knowing when to walk a way in also part of good deal making. The wrong terms could make the deal a failure from the beginning. The last thing any buyer wants is to put a large down payment into a business and then watch it fail. The loss of this money could be the end of any possibility to own your own business. The thought process should go like this, this deal is not possible and there will be another chance down the road. Some times in the heat of negotiation the making the sale happen becomes the end in itself. This should never be the reason to make a bad purchase. This is a serious situation that needs to be well thought out. </P> <strong> Conclusions </strong> <P> Once you have the experience, education and licenses, the ownership of a property management company is possible. You can either start one up or buy an existing firm. The expense of buying one will be much higher than starting one from the ground up. Finding one you can buy will take effort and the willingness to commit a sizeable amount of money. The obvious way to start is through a business broker, as they will have a current list of business for sale. They should have a very good idea of what you will need to pay to buy a property management company Coming up with the money may be a problem for some buyers as the price of an existing successful firm will be higher than a startup. An existing management company’s current customers will be a large asset, as they will supply immediate cash flow to the company. So the higher price is offset by the constant cash flow from contracted customers. </P> <P> If you start a company from scratch, you will need to plan on a significant amount of cold calling, phoning and face-to-face meetings to find customers that need your help. This is a slow start but can be a reasonable way to get into the business </P> <P>If you are interested in <a href="http://www.acquireo.com/tag/property-management.aspx">buying a property management company</a>, check out businesses for sale at <a href="http://www.acquireo.com/tag/property-management.aspx">http://www.acquireo.com/tag/property-management.aspx </a></P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 17:08:00 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/start-a-printing-business.aspx <P>Printing is the one service that almost every business that exists will need to purchase in some shape or form. They could need business cards, stationery, service forms, flyers, post cards and warranty cards. Every business is a potential prospect and can become a loyal client that orders printing every year or sooner. Also private people may need printing done. The terrific fact about a printing business is there is no end to potential customers that can be acquired by an aggressive marketing campaign. Since all of these paying customers exist, waiting for a printing expert to call on them and compete for their business, this can be a cash cow business. Getting started in the business can be accomplished in many ways. You can buy an existing business with their client list and an immediate cash flow. You can start a small in the home printing service. Another way to get started is to make a deal with several printing companies that you will sell their products on a broker’s agreement. A printing broker can go where the quality and price are and compete with just about any one in the business. They can buy locally or over the Internet at wholesale prices. The beauty of this facet of the printing business is there is little investment needed other than a phone, computer and the knowledge of where to get jobs done. </P> <P> If you want to own a facility this is very possible in almost any city as there is a turnover in this business and there are usually businesses for sale. You should checkout listings in the local paper, on the Internet and through business brokers. Any one of these can give you a lead to an owner that is looking to sell. Most of the printing businesses that are for sale can be purchased with the help of the owner or with outside financing if the deal is a large dollar situation. A large printing company can have considerable money in equipment and the building they own. They also will have a loyal customer base and an art file that is worth its weight in gold. This is an important asset, as the artwork may not need to be done again on repeat runs. </P> <P> There are all types of printing companies. There are companies that print on high quality paper. Others may print catalogs or insert flyers for newspapers. Large poster printing is another printing specialty company. Screen-printing is a unique type of printing company as they do decals, bumper stickers, advertising boards, signs for bus, shirts, hats and cups. They can get a printed logo or text on just about any object that will take printing ink. All of these businesses can be very profitable once a clientele is in place. If the buyer has the money or can make a deal with the current owner, buying a going business is worth the investment if they are profitable. </P> <strong> Finding the right printing company for you </strong> <P> If you know the business then you will probably know already which area you would like to stay in. Local newspaper listings and the Internet will give you a quick overview of what is available. A business broker may have more detailed list to study. They should also have some idea of what kind of money is needed for each type of printing company. This source can speed up the looking process by several weeks or more. Hopefully they will have some of the specialty printing businesses in their lists. Some of these specialty companies are extremely profitable as the specialty cuts down the competition to a few providers. </P> <P> If you need help with the purchase, the broker will know if the owner is willing to be a source of financing or is willing to go along with terms. There are so many ways a knowledgeable broker can help with the purchase. They can help with getting a fair price based on the financials of the company and not pie in the sky. Their ability to be a fair go-between for the buyer and the seller will expedite the sale. They can deliver terms the buyer can live with after the purchase. </P> <P> The printing business has so many possible avenues that a buyer can pursue, there should be a deal that will suit the buyer. A very special segment of the printing business is the printing of circuit boards for computer companies and special equipment manufacturers. Advertising specialty items need to be printed. Almost every city has a company that does this type of business on a large scale. </P> <strong> Finding the money to complete the sale </strong> <P> Money is the grease that makes the deal happen. This critical element can be a stumbling block or just another problem to work through. If both parties take the attitude that this problem can be resolved, then normally there will be a way to make this happen. If the seller does not need the full balance in cash from the sale, it is possible that they will take back paper for a period of time. If they cannot or will not finance the sale, then the buyer will need to come up with other sources to get the money that is needed. </P> <P> There are many companies listed on the Net that are in the business of making loans to facilitate a business purchase. Their requirements are varied and will depend on the purchase price, the company profitability, the credit rating of the buyer, the down payment and the length of the loan. If they agree to finance the purchase then the buyer will usually get a lower price for the purchase as the seller is receiving complete cash out. </P> <P> Your own bank may be interested in making the loan. Friends and relatives are another source of funds. You may be able to get an SBA loan to make the sale. The buyer may have other assets that can be borrowed against to get the necessary funds. In any event the sale will not happen if the total price cannot be covered in some way. The buyer needs to be realistic if the funds are difficult to arrange and realize that this deal may not be possible. </P> <strong> Conclusions </strong> <P> Printing is a necessary service that most businesses need and cannot do without. This means that a person getting into this business has a huge number of possible clients to go after. This also means that there is always the prospect of extended growth for the company. This is a big plus for any new business owner. </P> <P> The variety of printing businesses also opens many doors for the possible buyer. The many types of businesses that make up the printing industry will let the potential buyer find a niche that is just right for them. There are also franchise operations available and off shoots like screen-printing and specialty printing companies. This gives the buyer a selection to consider and study for the best fit for them, both financially and from an owner’s viewpoint. There is also the printing broker aspect that may be the easiest to enter, as the money needed to do it is rather small. This business category is full of many different opportunities. </P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 16:56:33 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-landscaping-business.aspx <P>A landscaping business can be started from your home or you could buy an existing business. An interesting combination might be a nursery business with a landscaping business as an equal side business. The focus of the business could be homeowners, commercial accounts or both. The way to acquire customers will combine advertising, referrals and maybe help from a franchise commitment. The cost of getting started will depend greatly on the size of the business you buy or if you start a lawn care business from your home. This range opens the door for many potential owners to get into the business. The up-front expense can be very high dollars to the cost of an old pickup, a gas mower and a gas weed eater. Home customers are probably easier to get than commercial customers. Insurance coverage and legal employees is another factor in the cost of doing business. </P> <P> Lawn care, tree care and outdoor plant care are all part of the landscaping business. Bushes and shrubs can be part of the mix also. Whether you are doing it for a commercial establishment or old Mrs. Smith’s tiny lawn there are similarities in the landscaping business. The private home may be easier to land, as companies are not constantly approaching them. The commercial building owner or a shopping center manager would be called upon often to consider a new landscape company. The competition and the requirements a commercial account may have can eliminate many small companies. The fastest way to grow is to buy a business with a built in clientele. You can build a business one customer at a time, but this will take time and weeks of frustration. On the other hand the small business is not a huge capital investment. </P> <P> A large commercial landscaping company is going to have a steep asking price as the clients are in place and are likely to stay in place unless the company causes a rip in the relationship. A change of ownership will not be a big item as long as the service stays solid. A sharp increase in the monthly bill would not be the smart thing to do just after the purchase. If things stay relatively the same, the business would likely continue as before the ownership change. </p> <P> A small home-based lawn care service would not be costly to start and could grow fairly fast in a decent location. People that need their lawns taken care of are expanding every year. Retirees are sometimes prevented from doing the work due to physical limitations or they just are willing to pay for the service. This group is easily contacted and referrals from existing customers could be obtained without a great deal of trouble. </P> <strong> Finding businesses for sale </strong> <P> A check on the Net, for landscape businesses for sale, shows a number of high dollar businesses for sale. The listings are interesting as most are in larger cities. There are few lower priced or small businesses listed individually. A business broker would have a more detailed list of possible purchases. Also they could help with the information about requirements for insurance and employment laws that need to be followed. The broker can help in the negotiation with the current owner if terms are the only way you can purchase the business. </P> <P> Using the Net to uncover important information about this business area will save time and quickly let you know if you can pull it off with the money and skills you possess. A very large company purchase may not be available to all buyers, but it is worthwhile to know what is required to get in the game. Smaller entry companies may be open to purchase and with terms that are within your reach. The big advantage of a purchase of an existing business is the clients they bring with the purchase. This means there will be immediate cash flow from the purchase. This is a big plus with some people, as they like to see they are getting their purchase money back. </P> <P> A really large company may be in need of good management rather than the work of a job foreman. A shake up of the sales force may be order to get the company growing again. This type of information will become rather obvious when studied by a person that knows what to look for and how to solve the discovered problems. </P> <strong> Money is the name of the game </strong> <P> A small company purchase or starting a company from scratch may be well within the resources of the buyer. A larger purchase may need terms from the old owner to complete the sale. The other sources for extra money could be a bank loan, business lenders loan or personal loans from friends or relatives. </P> <P> A very large purchase of several million dollars may take corporate type financing as seen every day in large business buy-outs. This kind of a sale could be completed through private stock or ownership through an LLC. It is the amount of money needed to make the sale that would make this purchase far more difficult to bring about. Raising the needed funds would have a lot to do with who was heading the investment team and their history of success in the business world. </P> <P> It is surprising to see some of the asking prices for some of the landscaping companies listed on the Internet sites. If these prices are backed up by profits, then this is a highly profitable business. A company in this high priced neighborhood could be in need of better management as its size has made it more difficult to run properly. This could open the door to a conglomerate offer from well-financed people. </P> <strong> A combination business possibility </strong> <P> A nursery and landscaping business would seem to be a natural combination for an owner to consider. They need each other’s skill and products so they could provide both to the customer. A person could find a small nursery for sale and piggy back a landscaping business on it. This may not be a common business, but it is worth looking at as a possibility. </P> <strong> Conclusion </strong> <P> The need for quality service from a landscaping company is growing as our population grows and gets older. Private homes make up the largest group of customers, but maybe not the most lucrative to have on the books. Commercial customers are what every company would like to have, but the competition is tough. </P> <P> Finding companies for sale that you can afford to purchase is going to take some very good detective work and maybe the help of a solid business broker. The listings on the Net seem to be found in large cities and have substantial asking prices. Business brokers will have a more thorough list to work from. They are very worthwhile to seek out and ask questions. Once you have found a property that you think you can buy, the negotiating will start for real. A business broker may be very useful in the negotiations to make the deal. The deal, the financing and the property are all critical elements in the purchase of a business. Several situations should be looked at and compared as to their individual merits. </P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 13:44:03 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-spa-business-.aspx <P> Variations in the spa business make it an interesting possible venture for a person looking to go into business for themselves. A spa can be a day spa, a resort type spa, a hot tub distributor and a spa attached to a hotel. The spa can include hair care, massage, nail care and body care. Your interest and the money you have available will be factors in choosing which business you should pursue. The Internet is an excellent source for finding what kind of businesses are for sale and where they are located. A potential buyer can also check out this same question with solid business brokers. By doing this, the buyer can quickly get a feel for what is available and the capital needed to complete the sale. </P> <P> The other way to get into the business is to start a brand new business. This will cost somewhere near what you would pay for a similar type of spa business, except for the value of their existing clientele. The advantage to the existing business purchase versus the brand new start-up is the existing customer base and the immediate cash flow. There are many types of spa businesses and the cost of the one you would like to own will depend on the type you choose. A resort type spa for example will probably cost far more than a day spa or a distributor of spas. The services that you offer will also show up in the cost of the spa. Service usually means the need for employees to provide the service. Employees have an on going monthly cost that does not go away whether you are busy or not. Other services may be equipment dependent and therefore you have the equipment cost and the maintenance expense. </P> <P> A distributorship will have its own unique costs and expenses. A show room is almost mandatory to run the business correctly. You cannot sell spas without demonstrating them. This will entail a building set up to do just this and a different set of employees to pull off this type of business. Salesmen and people persons are going to be important factors in all of these businesses. Solid sales people are a necessity in selling spas to the public. This is a luxury item, not a necessity of life. </P> <strong> Which spa business for you and how to find them </strong> <P> As stated above the Internet is a great way to start looking for businesses that are up for sale. This will give you a good idea of the difficulty in finding one that is in the area of the spa business that catches your fancy. These listings will also let you know if there are businesses in your local. Talk with spa owners and business brokers to get an idea of the opportunities that are available in the spa business. Visit day spas and resort spas to see how they are run and the services they offer to their clients. Ask them if they know of any businesses for sale. You never know where you will get a solid lead. The business broker will have answers for some of your questions and will know where to find the answers he does not know off of the top of his head. An experienced broker may have already helped with the sale of the type of spa business that you are favoring. This part of the discovery process is like being a good detective. Let the facts and the leads get you where you can see the answers to your growing question list. Spending the needed time on this part of business buying will help in many ways. You will become better versed on what is available and the prices that different businesses command. You will also soon discover whether you can buy an existing business or have to start one from the ground up. This will help to determine the money needed and how you can come up with the purchase price or start-up price. </P> <strong> I have the money or I can get it </strong> <P> You have to be able to say the above in order to buy an existing business or start one up. The cost in this niche business will depend on the selected area of the spa business. Once you have selected the spa business you wish to own, then you must find one for sale or start one up. Both of these will have prices that you can afford or can get financing for. Raising the total price may take some creative financing on your part. The current owner may be willing to accept terms to enable the purchase. Other areas that may loan you the money you need are the bank, relatives, loan from a business lender and a loan on assets you own. </P> <P> One way or another you will need to come up with the total price. If the current owner is involved, be prepared to pay a premium for the business. Most owners have a cash price and a higher terms price. The problem with this is can you afford the business and still have enough capital to run the business. If the answer is yes, then all is okay. If this is not the case, maybe the potential buyer may need to pass for the time being. Knowing when to pass by an opportunity may be just as important as making the decision to buy. </P> <P> Maybe in this business, you can select a less costly avenue to get into the spa business. You have several ways to go and if one road is closed then there may be another way to go. The point of this is do not strap yourself financially to buy a business and make success more difficult or impossible to obtain. A buyer must make realistic judgments. Viewing these decisions through rose-colored glasses can be a serious error. </P> <strong> Conclusions </strong> <P> The multi-faceted spa world offers several types of businesses to consider owning and running. Some take a large capital commitment and some are far more reasonable in their money requirement. The choice is yours based on your interest and the money you can bring to the table. </P> <P> An area not previously mentioned is the franchise spa company. This area should be looked at as a possibility. There are some advantages to being connected to a spa company with a nationwide reputation and advertising campaign. </P> <P> Financing in this business category is not much different than what is needed in other business purchases or start-up cost. Some versions are capital intensive and some do not take anywhere the same money commitment. Finding the right business for you in the correct segment of the industry will take study and comparing the chances of a successful ownership. </P> <P> The suggestion is to talk with business brokers to see what they have for sale and the money needed to make the purchase. They are a great source of good information and current trends or developments. The experience they have and the sources they can call upon will be of help in getting answers to your questions. Knowing answers will help you make far better decisions and thoughtful changes in your plans. </P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 13:27:07 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/buying-a-hotel-business.aspx <P>So you have always wanted to own a hotel or a motel, in your part of the country. Maybe the area you want to own a place in is in a resort area or a downtown location of a portion of town that is being rehabilitated. How do you go about finding properties that you could purchase and run profitably? </P> <P> A first step is to consider how much capital you will have for a down payment and for working capital. Then figure that this will represents from 5% to 20% of the total paid for the property. The second part of this exercise is the property must be assumable or the current owner will consider carry the balance above the down payment. You may also look into what a bank would demand to make a deal. Assuming you have good credit and several years of experience in the hotel or motel business you would probably make an excellent prospect to purchase the right place. </P> <strong> Finding properties that meet your qualifications </strong> <P> The first step that you should take is to let brokers that are specialists in hotel properties know that you are in the market and the price range you are looking for. This could begin the search for potential hotels or motels that meet your requirements. You could also check out properties listed on the Net by various brokers There are many listings to look at and the search engine can be made more selective by limiting the sections of the country you are interested in looking at for a hotel or motel. Both of these steps will generate information that can be used to consider what the current market looks like and what type of units are for sale. You could limit searches to properties that are for sale by owner and are in a certain state. The limitation could be further refined to only certain states or cities. If you are interested in a specific resort area you could limit the search to what is available in that particular resort area. The top price you are willing to pay could be put into the search engine, as further limiting criteria. </P> <P> You can also easily find brokers in the area that you are looking at that limit their listings to hotels and motels. They are experts in moving this type of property. These property experts are excellent sources to get information from and obtain a feel for what the market will bare in the area you are interested in pursuing. </P> <strong> Financing the hotel or motel </strong> <P> There are sources listed on the Internet that specialize in these kind of business loans. The current owner may be willing to take back a mortgage for that portion of the purchase price that you do not have in cash. If the property is a high dollar investment, you may be able to form an LLC with partners and buy the property as an investment. There are many ways to make the purchase work if you have enough of a down payment to make it a worthwhile venture. It will help a great deal if you have a successful history running a business like this. Your personal credit rating will also be a factor. Getting the money needed is always the challenge when buying any business and a solid broker may be able to come up with financing sources. These brokers are invaluable in the deal making if they have the experience under their belt. They also can be used to help in the price negotiating and the terms of the deal. There is always a way for a motivated buyer and seller to come to an understanding that will work for both parties. </P> <P> If the deal is just out of your reach then you must make that choice. Stretching to make a deal can be part of many purchases, but the stretch still has to be within reason. If the financial stretch is to far and could over time jeopardize the chances of success it may be time to pass on the purchase. You will need money to run the business and you will need more money than you realize to market your facility. In a resort area this is absolutely the case, as most people will make their room reservations before they come to town. The obvious way to get your message out is to use Internet advertising. All of these expenses need to be considered in order to make solid financial decisions. These have to be part of the financing plan when purchasing a hotel or motel. </P> <strong> Other considerations about the hotel business </strong> <P> There are two businesses that a person can own that take care 24 hours a day and someone always needs to be minding the store. The dairy business is one; because cows need to be milked daily and the hotel business as the desk needs to be covered 24/7. An owner of a hotel or motel must come to the realization early in the game how tied down to the desk they want to be on a weekly basis. If they want any freedom at all they will need to hire desk personnel and maids to keep the rooms in order. This is another fixed expense that there is little leeway in managing. You cannot go on the cheap with either employee because both can have a serious affect on your business if not the right person. A poor desk person can lose business for you by the way they handle incoming calls from people looking for a room. This person is your business as far as the person on the other end of the line is concerned. Poor phone technique can cost a lot of money in a year. This area of your business must be properly run or it will cost you more than you will ever realize. Room service is a given to anyone renting a room in your establishment. They fully expect that it will be done right and on time. Remember once you own the hotel you may need to do all of these jobs in order to run the business. </P> <strong> Conclusions </strong> <P> This hotel/motel business category has a very large price range for a buyer to contemplate. Most people will not build one from the ground up. The purchase of a hotel usually requires some financing to complete the deal. Many times the current owner is the source of the financing. Outside sources are also available to the buyer to raise the money to make the sale. This type of loan is based on several factors such as hotel experience, down payment, credit rating and cash flow prospects for the business. </P> <P> A good broker may be brought in to find a suitable property and help with the price negotiating and maybe even help in finding the financing. The least they can do is bring to your attention a hotel they have a listing on and the asking terms. They will probably have an idea of how quickly the current owner wants to sell the hotel. It is sometimes easier to get a better deal from an impatient owner of a hotel or motel. Ask lots of questions of the broker when you find one that buys and sells properties as a special niche market. They can be of great help. </P> Acquireo.com - Acquireo Team Tue, 11 Sep 2007 13:20:57 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-home-repair-inspection-businesses.aspx <P>When buying or selling real estate, it is common for the buyer to request a home inspection in order to discover appliances or house mechanicals that could be potential problems. This would include items like the air conditioning system, the heating system, the plumbing system, the electrical system, the roof, the foundation, the outside paint or siding and other items that could need to be replaced. A handyman would be a good candidate to own such a business. There are private and franchise home inspection companies that either could be started from scratch or purchased as an existing business. The advantages of buying an existing business are the clientele that comes with the business. It is also easier to continue on the path to a successful operation with the purchase of an existing business. </P> <P> The other avenues for a good handyman are the need for home repairs as well as inspections. These businesses are always in demand as there are always people who cannot do their own work and need to hire it out to a professional. There are a multitude of repairs and improvements that are consistently needed around a home. This constant need by homeowners makes for a never-ending group of clients that need something done. The lack of prospects that need work done is not likely to happen in any city. The problem for a new repair company or inspection company is that they are not well known when they open their doors. A franchise operation alleviates this a little, as the franchise name may be well known. A private named company has to dig for its clients at first. This will entail a serious amount of time advertising and prospecting. This could be another reason to consider buying an existing business with a good reputation. </P> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <P> A part time handyman may be able to start a full time business with greater ease since they do have some clients that can refer them to others. They do have some people who know the quality of their work and they do not start out as a complete unknown. </P> <P> As with all other business purchases, the buyer of an existing business does pay for the reputation and client list of an existing business. This adds to the startup cost of the business, but it may be quickly covered by the existing clients’ need for work. The purchased business could also work only with rental companies and apartment owners, instead of private parties. or home owners. Rental property work is a very special area of the repair business. These clients are sought after and always in need of help if they have a number of properties under management. The competition to land these clients is going to be substantial as these are considered bread and butter clients. Since these management companies have numerous client owners, they are excellent sources for repair work. The big plus for the repair company is they only have to make the sale to the manager of the rental company. </P> <strong> Finding a company and buying a company </strong> <P> Finding the right company to buy is the first priority of a new potential owner. There are several ways to do this. A buyer can study the businesses for sale in the local newspaper. You could ask any accountants or bookkeepers you may know if they know of a business for sale. The Internet is a good place to look, as there are two possible ways it may help. You can find a list of business brokers that work in your area. You can find listings of businesses for sale. Both of these sources will give you possible businesses that need to be contacted. Enlisting the help of a business broker, is very good way to go, as these professionals can be of considerable help in providing information and assisting in the purchase. Buying a business is far trickier than buying a home. There are so many aspects of a business purchase that must be checked out before the purchase is made. A business broker is use to doing these steps, as this is what they do for a living. All of this is about finding a company to buy. </P> <P> After you find the company you want, what are the steps toward making the sale happen. This is always the art of negotiating. First a price must be established once the financials have been disclosed. The prospective buyer has the obvious need and right to all of the facts and figures about the business. Some owners are reluctant to disclose every thing and this is a mistake. Lack of transparency can kill the deal. There can be two prices. One can be based on a complete cash out an another can be higher if the buyer is going to need terms to complete the deal…This is common when the seller carries back paper to enable the sale. </P> <P> This part of the sale is extremely important, as it is the crux of the matter. The price paid for a business can be determining in whether the deal works and is successful for all parties to the deal. The price while critical, the terms of the sale are just as important. A low price with monthly payments that are too high can be just as crippling. Both the total price and the monthly payments need to be in a range that can be handled without suffocating the business. The business broker can help in negotiating an agreement that all can live with and prosper under. If the deal cannot be worked out so that it is favorable to all concerned the buyer would be wise to just walk away from it and try later with a different seller. The worse thing a buyer can do is strap themselves into a financial arrangement that they cannot live with for the length of the payment period. The business broker can help with making the situation work for both the buyer and the seller. </P> <strong> Conclusions </strong> <P> The home repair business has many potential clients as there are always people who cannot do the repair work by themselves. They need to hire it out or it will never get completed. There are more homeowners than there are repair people to do the work. There are many possible jobs within this group of people, so this group is the clientele for the typical repair business. The second group of possible clients is the real estate management companies and the real estate brokers. These clients are always solid and worth cultivating if you want to grow such a business. </P> <P> The home inspecting business is always in demand, as most buyers of homes want them inspected before they buy them. They do not want to buy a problem that they will need to fix shortly after they buy the home. The real estate brokers can be influential here as they have the inside track on recommendations. If you buy an existing business, the client list will come with it and will provide some clients to the business. This is the obvious reason to buy an existing business if the price is not too high. As with all purchases of an existing business the buyer must evaluate the price versus what the business will bring with it as to clientele. </P> Acquireo.com - Acquireo Team Wed, 05 Sep 2007 14:33:53 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-day-care-center.aspx <p>Assuming you can obtain the appropriate licenses and meet the state requirements you can start a Child Care business or a Day Care Center. Or you could buy an existing business with its in place clientele. The second choice can be better if a fair price can be reached and you can keep the existing clients. On the other hand if you have a potential customer base that is just waiting for you to open your doors, you would be far better off if you can start the business in your own facility. The cost of buying an existing business can be far higher than if you start one from the beginning. The big advantage is having a clientele from the get-go. The problem is how do you guarantee that the base of customers will stay with you when you buy the company. This is the real value of an existing company. </P> <P> The opportunity that is available to a Day Care Center is very high these days, as more and more Mothers are working outside of the home. They need someone to watch their child or children. This need is growing every year, as more and more families become two income families. This demand is making Day Care Centers a scarce resource and there is a need in many cities for more quality centers. This growing demand makes starting a center a truly good idea also. </P> <strong> Check out with a business broker</strong> <P> A business broker will probably know what is available in your area and at what price. On the Internet you can find other brokers and maybe get more of a feel for what the existing care centers are selling for. If they have ever sold one or been a party to buying one, they may know some of the requirements to own and run a Day Care Center. A good business broker is a good source for information and details about a Child Care Center. </P> <P> It is often a very good idea to have a business broker on your side when looking to buy a business. They are aware of what the market will bare and the businesses that are ready to be moved quickly if the offer is solid. They may know a great deal about the business if they have sold one like it before. In any event they can get answers to just about any question you can come up with. </p> <P> An experienced broker can be invaluable in finding the best deal and terms for you. This service can be worth far more than what it will cost in commissions or advisory fees. If they do not know the legal requirements in this case, they will know exactly where to find them. </P> <strong> Money needed Money found </strong> <P> It is not unusual for a buyer to need money to complete the deal. Many buyers get the needed money from the old owner who carries back some paper on the sale. Others borrow it from friends and family. Some get it from banks and others get it from other loan sources. There are businesses that advertise on the Internet that they will make business loans of this type. There are several places a buyer with good credit can find money to complete the purchase of a successful business. A profitable business is a terrific asset as it has real value plus it generates cash flow. This is why the Internet companies will make loans to facilitate the purchase of a solid business. </P> <P> If you get money from the owner you will probably need to pay a higher price for the company. The price goes down for cash and up for partial cash. </P> <strong> A start-up may be the answer </strong> <P> A start-up care center is much cheaper to start since you will not be paying for the customers of the existing business. But you will have to advertise to let Mothers in your area know that you are open for taking on new children. Since there is a demand for businesses like this, you will probably be able to get a good start once you are open for business. You must make sure that you meet all of the requirements of your state for this type of business. These requirements are fairly stringent in most states. But you must make sure you meet them, as the fines for not doing it are substantial. The equipment needed for this business is not that costly and can be purchased as needed. The first problem after deciding where to run your business from is finding customer’s that need your service. This is a deeply oriented customer business. People are very careful with their children and you need to make them feel very comfortable that your company will care for them as they would themselves. </P> <strong> If you buy another person’s care center </strong> <P> You need to be sure that the clients will stay with you and become your clients. You will pay for cash flow when you buy an existing business. Just make sure it stays with you for a specific period of time. This can be put in the contract and would affect the price for the existing business. Also the business would be more valuable if it could be easily expanded. These are just two factors that should be looked at very carefully when buying a business in this category. Make sure the cash flow will easily cover any loans needed to make the purchase. What would the cost of help be and is it hard to find. Ask the business broker if there are other factors that you should be aware of in this field. </P> <P> Also ask the owner if he would share with you any ideas he has to increase the business and make it more profitable. All information that you do not know will help you make a better decision about buying and running the business. Remember you will be dealing with Mothers and their closest love, their children. </P> <strong> Conclusions </strong> <P> This business type is in serious demand by families looking for quality places to put their children. They need to be safe and well run by people who like and care about children. If this is you, this business may be exactly what you are looking for. If you have the money you can look into buying an existing business or you can start your own from the beginning. Either way the treatment of existing customers will generate more clients if you get good referrals. Excellent care of your clients children will help you obtain replacements and new clients by recommendations. There are many ways to gain more money in this business. You can offer extended hours or have a larger place that can handle more children. You may need more help, but the math will make this an easy decision. </P> <P> Longer hours will mean more help, but this may be worthwhile if you can get added money for the extended hours. Teaching numbers and letters can be a plus benefit that is worth more to some parents. The ability to make the children happy with their environment will go along way toward keeping the parents happy with your service. </P> Acquireo.com - Acquireo Team Wed, 05 Sep 2007 14:29:41 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-an-auto-business.aspx <P> Which part of the auto business is of interest to you and do you have enough money to pursue that interest. This is the first question that people thinking of getting into an auto related business must answer for themselves. There are many auto related businesses that a person can consider. The range can start with auto repair or care and go to a new dealership. There are several areas that are different and yet are some how auto related. </P> <P> The business types that fit into these categories have significant differences in start up cost. A new car dealership will cost more to buy than a small repair shop. A used car dealership may have a lower start up cost than a large multi-bay repair shop. A brand name muffler shop can have a large price tag if started from scratch. With these money considerations a person that wants to own a business in the auto field must be realistic about those areas they can afford to start or buy. There is a huge difference in the price tag of these different operations. The prospective owner of one of these businesses must make an early decision of what they can afford that they also would like to do. If is not logical that a non-mechanic would do well in with a repair shop. A non-sales person is not likely to own a car dealership. The point is that personal traits, likes and dislikes will lead a person to the likely businesses that they should consider. </P> <strong> How do you find auto businesses are for sale </strong> <P> Business brokers as a group are very good sources of businesses that are on the market. There are brokers that specialize in certain types of business, who would be very good people to contact about auto related businesses. The Internet is an excellent source for finding brokers and businesses that are for sale. Any large city is going to have brokers that specialize in buying and selling existing businesses. Brand name auto related businesses could also be contacted to see where and what they have to offer. If you have a passion for hot cars or just making them run right, maybe a car repair shop or a custom car shop could be your cup of tea. The cost to start one of these shops would be less than a new car dealership. On the other hand if you are a terrific sales person, a car sales company either new or used would be a logical choice if you have the money to buy one or get a new one off the ground. There are brokers and brand name auto companies that could help you find the answers you need for this niche area of the auto business. One other factor that must be looked into is there are many types of used car businesses. There are companies that only carry certain brands and there are businesses that restore certain cars. The variations which are found within the auto related entities is so profuse, that a person would be wise to see a list of all of the businesses in the area they wish to work. There are just so many possibilities that a person may consider when looking for a business to own. </P> <strong> If you have the money, the old owner will have the time </strong> <P> If you have the money, the old owner will have the time to listen to your offer to buy their business. This does not mean that you have all of the cash yourself, it just means that you can make a cash deal happen. I f you can get pre-approved for a credit line or loan, you can get a better price typically with a cash price offer. Most sellers will lower the price if they can be totally cashed out at the time of sale. If they do have to carry back paper, the price will be higher than an all cash deal. Using the sources that are easily found on the Net can help arrange this loan. By using a good search engine to find companies that make loans to buy a business, you will be surprised at how many sources make these business loans. </P> <P> Other money sources are partners, friends or relatives. Each of these will have different pros and cons associated with them. Relatives may be willing to make a loan, but they will probably want it to be very short in time. A partner can bring all other sorts of difficulties, as someone has to be the boss. Friends may be okay if they can truly afford the loan. In any event a disinterested third party is the best of all sources if for no other reason than peace of mind. </P> <P> A substantial down payment may ease the reluctance of the seller to carry back paper. At this point in the sale, it is all about negotiating the deal. Terms can be fair to both parties and that is the way it should be or the deal may ultimately fail. If the seller will not cooperate and the other money sources are not willing to help you, it is time to walk away. Sometimes not doing anything is the best course of action by all concerned. It may be that a year would make all the difference in the world. </P> <strong> This business purchase cries for a broker’s help </strong> <P> Because there are so many aspects to the auto business, this area is one where a knowledgeable broker with solid lists of businesses for sale would be of real help in finding a situation that is perfect for the buyer. They could give a quick over view of what is available in the categories that make up the auto businesses. This could save time and maybe even generate a new idea for a business. This is just one of the many services that a good broker can provide in the search for a business property. </P> <strong> Conclusions </strong> <P> The auto related business is an interesting area of possibilities for the person that wishes to own a business connected to cars. There is an area for just about every interest or personality that wants to earn his or her living in these areas. If you like working on cars or selling cars or caring for cars there is a business for you. It truly is about what you like to do with your time and finding an area that will allow you to enjoy yourself and make money at the same time. Finding a property that fits your interest or your skills is easily accomplished by using an experienced business broker. They will know the businesses in a geographical area that are for sale. They can give you a run down on the prices and the profitability of the businesses on their lists. This is a great time saver and speeds up the gathering of information that you will need to make informed decisions on the business you would consider owning. You may find two or three possibilities and this would be better for you as you could see which would be the best to buy based on many factors. Profit versus price would be a first consideration. You could find whom you could make the best deal with and have the best terms of purchase. And of course that is very important in buying an existing business. </P> Acquireo.com - Acquireo Team Wed, 05 Sep 2007 14:21:00 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-hair-salon-business.aspx <P>The hair salon business is all about customer satisfaction. Those salons that have happy customers thrive and grow. Those that have a problem with customer satisfaction will not grow, will not get referrals and will eventually lose customers, and go out of business. The message here is if you are not a people person, then this business may not be for you. A salon needs to be a pleasant place to visit and spend an hour or so. The beauticians need to be skilled and friendly. They need to be efficient in their work and professional in the service they provide. </P> <P> A person with the knowledge, licenses, some business skills and the desire to work for themselves can be successful in this business. The first step, after putting in your time to learn the business, may be renting a space in an existing salon. This arrangement will allow you to gain more experience without going fully out on your own. Be careful about any contract you sign when doing this so you do not limit what you can do in the future. This is a way to build a following that will stay with you when you open your own shop. Depending on where you live, you may or may not be able to start in your own home. Zoning laws about home businesses will determine if this is a possibility. If not, it will take some money to start a shop, in the typical strip mall or small business corner. You may consider doing this with a partner and there by cut the expenses a little. You could also rent space to another beautician with her own following. In fact this may be a way to get a very nice salon off the ground with a bang. </P> <P> A hair salon these days can be far more than just doing hair. It can also do nails, offer massages and body wraps. It could be part of a workout complex or part of a larger hotel or motel complex. The secret to growing a business like this is foot traffic and referrals. Starting from scratch is the hard way to go, but it is the least expensive out of pocket cost, compared with buying an existing shop and its client list. The problem with buying an existing shop is the customer list while valuable could also be very unstable. A buyer would have to make it part of the contract that a certain percentage of the clients must remain customers. The known entity has value and the location, but the client list can be hard to value. </P> <strong> Using a business broker correctly</strong> <P> A business broker may have listings in your area of shops that are for sale. Check with them and local papers for businesses for sale. Use the Internet to expand your search and the list of business brokers that may be able to help you find the perfect shop for you to buy. A solid broker can be of real service and speed up the process of finding what you are looking for. They also are very good at negotiating the deal and the terms if they are needed. Brokers that have been in the business for a while are excellent sources for getting answers to your questions. If they do not know the answer they know where to find it. A business broker can be of service and value far above what you will need to pay for their help. If nothing else they can evaluate the price of the business to see if it is fair. The fact is most of these professional brokers help far more than telling you the price is fair for the business you are considering. </P> <strong> You have the desire, but not all of the money </strong> <P> This is a common problem when buying a business. Where to find and get the extra money needed is part of the problem solving that is needed when buying a business. A loan from your friendly banker, a second mortgage on your home, a loan from family or friends and finally terms with the present owner are typical ways to come up with the money needed to buy a business. The first three are fairly obvious to understand. The answer is usually a quick yes or no. Terms from the current owner will depend on several factors. How much of the total price can you come up with and still have money left to operate the business. How much of the total price does the owner need right now? Are they going to stay in the area or move? This can be an important factor in making a deal How much of a premium over the cash out price are they going to demand if you want to buy on terms? How long will they give you to pay off the balance of the agreed to price? Terms are a matter of how badly they wish to sell, how much they will need to carry back in paper and what you can afford to pay back on a monthly basis. If the term price is high enough this could cement the deal. If they are just tired of the business and ready to retire, then you may be in a strong position to negotiate. In any event, this is a common way to make up the short fall between the money you have available and the asking price. </P> <P> There is one other source you may try. The Internet list many businesses that make loans to business buyers to complete the purchase. These companies understand this type of loan and can evaluate it better than most lenders. It is certainly worth checking out if you need the extra money to make the purchase happen. The worst-case scenario is you have to go back to the owner and pay a higher price for the business to get the terms you need. </P> <strong> Conclusions</strong> <P> The beauty business is alive and a growing niche in the business world. People will pay good money to look their best and the salon is able to make that happen. When a shop is opened in a mall or a strip of commercial establishments, the traffic will help it grow right from the start. If the service is good, a loyal customer can be obtained. This is money in the bank as this business is all about customer care and satisfaction. Repeat customers guarantee cash flow and also referrals. As the business grows the fixed expenses stay relatively constant so the profit margin will grow significantly. There are several ways to enhance the business and improve cash flow. An owner can rent out chair space or just hire new employees as needed. The business can offer other services such as nails and massages etc. Beauty takes care to maintain and customers in this business are willing to pay for its maintenance. If they feel a new service will help with their appearance, they will spend the money for it. This business is not a costly business to start like many other new businesses. An existing salon may be quite a bit more in cost to buy, but the immediate cash flow will help it succeed. </P> <P> If you are interested in owning a hair salon/Nail Salon,Spa or any beauty business for sale,you may want to check out the listings below: <ul><li><a href="http://www.acquireo.com/tag/beauty-salon.aspx">Beauty Salons for sale</a></li> <li><a href="http://www.acquireo.com/tag/hair-salon.aspx">Hair Salons for sale</a></li> <li><a href="http://www.acquireo.com/tag/beauty-salon-spa.aspx">Beauty Salon and Spa for sale</a></li> <li><a href="http://www.acquireo.com/tag/hair-salon-spa.aspx">Hair Salon and Spa for sale</a></li> <li><a href="http://www.acquireo.com/tag/hair-nail-salon.aspx">Hair & Nail Salon for sale</a></li></ul> </P> Acquireo.com - Acquireo Team Wed, 05 Sep 2007 14:16:59 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-gym.aspx <P>The cost associated with starting a fitness center or gym will depend on size, location, equipment, number of employees and other normal start-up business cost. If it is a franchise operation there could be fee to the franchise people </P> <P> The other way to do it is to buy an existing business with its built in clientele. If it is a membership fitness center, the clients are locked in for the period of their contract. Any membership considerations should be fully disclosed and made part of any buy out agreement. Again there may be franchise considerations that need to be disclosed. </P> <P> This type of business will have some pretty healthy start-up cost or buy-out cost associated with it. The equipment needed and the employees to run the business are going to be substantial money drain as well as the building, the utilities and other business expenses. If it is a buy-out of an existing business the client list is worth a great deal. This cash flow generator will have a value of what it brings in each year. If the business is a franchise operation, there may be on going payments to be part of the franchise. If it is a start-up franchise then there will be additional cost to buy the franchise. This business will entail a substantial investment to buy or start. If this is your area of expertise, then you will need to figure out how much you can bring to the table to see if you can afford the purchase price or the start-up expense. </P> <P> There is every reason to believe that you can make money owning one of these facilities. People are very conscious of the need to keep their body fit and are willing to pay good money to make this part of their life style. This was a fad at one time, but now it has become part of the culture to keep your body in good health. Many people need the added incentive to go to a place where they are expected to work out to keep their body in good repair. They also may need the advice of a fitness expert on how to take off weight or gain it back. The client may also need the exercise as part of a rehabilitation program. Or maybe the guy or girl just wants to look good to other people. It does not matter why they come to the center, just that they do and are willing to continue to pay to come. </P> <strong> Finding the right center for you to run</strong> <P> There are several ways to find businesses that are up for sale. The local papers can be one source. Business brokers are another solid source. A buyer can also use the Internet to find businesses that are for sale and business brokers that will help in the search. Finding a business in this field in your city may be difficult as there are not always candidates in this field for sale in all areas. This may be a good reason to get a good business broker on your side. They will know what is available and maybe a good deal about this market. This buy-out may necessitate moving to another city to find a business to purchase. </P> <P> A business broker may be of great use in this business search. This is a unique business area and the number of businesses for sale will be somewhat limited and usually found only in larger cities. A larger business broker company would be a good place to start this investigation of what is available. This unique business would be a likely candidate to use a broker to help them make the sale. </P> <strong> Buying or financing a fitness business</strong> <P> Since this business has a high dollar cost to get into, most buyers will need to have substantial funds available or solid financing in order to buy an existing business or start one up. The money sources for this venture can be the current owner, an Internet business lender, your bank, your relatives, loans on property you own or family-money. This purchase is not a small consideration and most likely will take some kind of financing for most new owners. You should be aware of this going in and a discussion with a business broker could help you figure if it is feasible for you to make happen. This business is capital intensive to enter. The return can be excellent, but the upfront money needs to be considered from the beginning. If you are going to need financing, then the availability of financing will depend on what you can put down and your credit and business history. The deposit has to be a reasonable percentage of the full price for the business. Even owner financing will require a sizeable deposit on your part. The best course of action early on is to have a heart-to-heart conversation with a qualified business broker to see if it is possible for you to pull it off. If that answer is yes then finding the correct property for you may take some time to ferret out. You might be wise to check out some franchise operations to see what they offer. As you can see this is not like buying a local retail store or hardware. Check out the Net for yourself to see the listings and where you would have to buy in order to find a business for sale. There are not as many opportunities in this niche market as there are in other businesses. It just does not lend itself to starting one up without enough of a population to support its operation. Patience in finding the right property and the right deal will pay back big dividends in the long run. This is no place to buy a big white elephant. </P> <strong> Conclusions</strong> <P> This business entity is not as easy to find as other businesses are in every community. There are always restaurants for sale in every larger town. That may not be true with this type of business. You may have to look in other towns near you in order to find one that is for sale at a price that is within your budget. Even then you need to arrange financing that is reasonable when compared to the cash flow of the business. Franchising or a private center is another question to answer. All of these considerations must be looked at with a cold and realistic eye in order to have a chance for success in the future. The investment needed to carry this out requires that any reasonable buyer do this. </P> <P> The ongoing expense of running this type of business must also be studied. Employees and advertising are going to be critical to running a successful operation. The long hours of operation are not like running an office. This factor alone makes employees a serious consideration. Another serious budget item will be an advertising campaign that will need to be active most months of the year. Certainly a solid campaign the last few months of the year when people are making up the New Year resolutions to get into better shape in the coming year. This is a solid business opportunity for those that have the funds or can get them. </P> <P>If you are planning to own a gym business here are some listings that you may want to look into: <ul><li><a href="http://www.acquireo.com/tag/fitness-gym-page-1.aspx">Gym Businesses for sale</a></li> <li><a href="http://www.acquireo.com/tag/fitness-center.aspx">Fitness Center for sale</a></li> <li><a href="http://www.acquireo.com/tag/health-club.aspx">Health Club for sale</a></li> <li><a href="http://www.acquireo.com/tag/women-fitness.aspx">Women's Fitness Centers for sale</a></li> <li><a href="http://www.acquireo.com/tag/curves-women-fitness.aspx">Curves Franchise for sale</a></li> </ul></P> Acquireo.com - Acquireo Team Tue, 04 Sep 2007 13:23:32 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/starting-a-pet-business.aspx <P>Pets have a great deal of money spent on them each year by their adoring owners. People feel an obligation to take care of their pet and will spend money on their pet that they would not spend on themselves. These well known facts create a business need that can be very lucrative and easy to get into by those that possess the knowledge and the skill. </P> <P> Pet shops, pet salons, pet grooming, pet babysitting and pet care are all potential businesses for a new owner. The new owner can buy an existing business or start one up on their own. Many pet groomers get their start grooming part time and then go full time when they have enough clients. Pet shops and pet care are booming businesses as there are always new pet owners and new pet needs that an owner must take care of. </P> <P> Many of these pet businesses have a very loyal clientele and buying an existing shop can be tricky. If it is strictly a grooming shop, part of the reason for its success has to be the groomers that work there. If it is for sale, make sure that the seller is not going to open another shop in the area. This can be accomplished by making a non-compete clause part of the sales contract. The advantage to a buyer is there is a built in cash flow and a client list. This is one of the reasons that many experts say that a new owner should buy an existing business if they want to gain an edge on future success. </P> <P> If the shop sells pets and supplies, then that is a different story and the business can be evaluated like any other retail business. In this case, the buyer would be buying reputation and location as well as the business has some following from existing customers. </P> <P> A good groomer can start a business in their home and as they grow move into a shop. They then can further expand by adding other groomers to the staff. The profit margins in this business are pretty good as the grooming skill is what is being sold and not a product. This opens the door to a start-up business and a groomer with little capital can grow the business from home. </P> <strong> Where to find a business or grow a clientele </strong> <P> Look on the Internet for brokers that handle this kind of business. Or ask around locally if there is a broker in the area that specializes in buying and selling businesses. Once you find one to talk with, they will help you or lead you to a broker that handles the type of business you are looking for. This is a very good way to start your search for a pet business of any kind. You can also ask groomers if they know of a shop that is for sale or a retail outlet. </P> <P> One way to get a feel for the business is to work in one for a few months and check out the pluses and minuses. A real hand on experience is an eye opener to a potential owner. Working in the business for a few months will let the possible buyer of such a business see if the business is for them or not. They will see the day-to-day frustrations and small victories that make up a retail business. </P> <P> Special features such as pick up of pets and delivery will make your business different than other groomers. Special prices on certain days of the week and deals if the customer uses your service three out of every four months are incentives to keep your customers returning to your business. Referrals are worth a discount to the customer that refers a new customer. New customers will return again if treated right the first time they use your service. </P> <strong> Using the Internet to find businesses </strong> <P> A person that is looking to buy a specific type of business can enter the business type in a good search engine and the results will be amazing. The search engines will find many brokers that deal with the buying and selling of businesses. With this information, a buyer can find great information about the businesses for sale and the location and the price in some cases. This is a quick way to gather pertinent facts about the businesses the buyer is looking for. The more precise the input in the search engine, the better the results will be. The modern search engines do a marvelous job of ferreting out the needle from the straw. If you were interested in Pet Shops for sale, you could enter that and you will get a list of places that have such listings. The same would be true with any business related to pets or their care. You could also limit the search to areas of the country or even cities. The point is you can use the Internet to do some of the work and investigate the possibilities. </P> <strong> Arranging financing in advance </strong> <P> If you have good credit and a reasonable down payment, you can arrange your financing of a business before you find such a business. This could easily save you money on the purchase price as most businesses for sale have a lower all cash price than one where the old owner has to take back some paper. Cash is king when negotiating the sale. Your own financing will also give you a quicker look at the financials of a business. Owners like to deal with serious people and a person with their own financing in place will be taken seriously. There are companies that do nothing but finance business purchases. These are easily found on the Internet. You would not do yourself any harm by checking out some of these companies, just in case they are needed. Money talks when negotiating and having the ready cash available will give you a leg up in this discussion. </P> <strong> Conclusions </strong> <P> There are many positives about the pet business. There will always be a call for the services and supplies that these businesses offer. The grooming aspect of it can be started from your home with little start-up money needed. This will allow a person to grow into a full time business and continuously make money. This fact makes the grooming part of the business very attractive if a person has the requisite knowledge to do the grooming. </P> <P> The supply part of the business is like most retail enterprises. Location and following will make an existing business more valuable than another. The terms of purchase are important and may make or break the deal. A thorough financial study of the existing business is needed to see if the price to be paid is justified or not. These facts are easily documented through sales records and bank statements. A potential owner would like to see a steady growth pattern over several years. Growth curves and a study of how the business is being run, from an efficiency standpoint, are worth the look-see How does the business respond to marketing campaigns and have they been successful. The point is a study should be made of the business in question.. </P> If you are looking to owning a pet business, below are some choices: <ul><li><a href="http://www.acquireo.com/tag/pet.aspx">PET BUSINESSES FOR SALE</a></li> <li><a href="http://www.acquireo.com/Search/results.aspx?key=pet%20grooming&op=1&lo=&cou=&sta=&tl=-1&pmin=-1&pmax=-1&cat=&mile=rNFhMt805GNVD37jmRASDQ==&hom=-1&rel=-1">PET GROOMING BUSINESS FOR SALE</a></li> <li><a href="http://www.acquireo.com/Search/results.aspx?key=pet%20food&op=1&lo=&cou=1&sta=&tl=-1&pmin=-1&pmax=-1&cat=45&mile=rNFhMt805GNVD37jmRASDQ==&hom=-1&rel=-1">PET SHOPS FOR SALE</a></li></ul> Acquireo.com - Acquireo Team Fri, 31 Aug 2007 18:35:53 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-a-car-wash-business.aspx <P>There are several options for a person to consider when looking getting into the car wash business. Should the person buy an existing business? Should it be automatic-self service or one with a staff of washers? Should you consider a mobile business or a business with a fixed location? Should the business be a hand wash business or equipment oriented? All of these questions must be answered and the potential owner must come to grips with these options. The amount of money the person has available to put into the business will be a determining factor on what way would be the best way to go. A fixed location will cost more to do than a mobile business. Buying an existing business is usually more costly upfront than starting one from scratch, but in this case it would depend on which way the person chose. For example the mobile car wash would be far less expensive than a fixed location operation. The mobile business would have the cost of equipment and a truck. The fixed location would entail a building and the equipment for the bay or bays. </P> <P> Starting either from scratch would cost a certain amount. Whether this would be more of less than buying an existing business would depend on the deal that could be made with the current owner. If the owner is motivated and trying to just get out of the business, then a better deal may be possible. The circumstances would dictate the answers to these questions. </P> <P> Talking with business brokers and looking on the Internet could help in finding a person with a mobile business. The fixed property would probably be easier to find. </P> <P> Another possibility would be to start with a mobile business and as the cash flow became more stable, look into getting or adding a fixed location car wash. </P> <strong> The Internet is a terrific way to find businesses/equipment for sale </strong> <P> A person thinking about starting one of these car wash associated businesses can easily find car washes for sale and brokers who represent them. The mobile businesses may be slightly harder to find, but they are available. The advantage of buying an existing business is almost always a better way to go than starting one from scratch. The immediate cash flow and clients is a huge plus to a new owner. This factor could be the difference between success and failure. An existing business is much easier to push past the break-even point and to a successful venture. A true start-up business has to gain clients and slowly build up cash flow. The question for the owner of this business is will it happen soon enough for the business to survive. </P> <P> Talk with a broker about what is available and the terms they feel they can obtain from the current owner. If this is out of your reach financially, then a mobile hand wash could be the answer or using a small power washer to get the business off the ground and started. There are several options in this business that could lead to a successful new business. Getting clients will be the biggest problem facing the new owner of such a business, as there are few to none when the business is opened. </P> <P> The Internet can be used to find equipment, which is new or used. This is another real advantage of using this tool to help a potential owner find what is needed. Just put in what you are looking for in the search box and you will be surprised at how many sources will show up. </P> <strong> Arranging financing of an existing business </strong> <P> The current owner is the obvious source of some financing of an existing business. The problem is the buyer will have to pay a higher price for the business than if it were being purchased for cash. Having your financing in place when making your offer for the business will save money on the purchase price. </P> <P> The Internet is an excellent way to find business financing for your purchase. There are several firms that show up on the Net for this type of loans. These firms are in the business of doing this kind of lending and are much more understanding of the problems a new owner faces when buying a business. They are certainly worth contacting and discussing your situation. </P> <strong> Car Wash information and Car Wash business planning </strong> <P> There are great sources on the Net that will help the potential owner of any type of business. The Car Wash business is well covered and a buyer can get good information about running and owning this type of business. Having prior knowledge of what is needed to be successful in this business will help a potential buyer decide if this is the correct move for them to follow. A book that tells the facts is invaluable to the buyer of such a business. Getting an up close and personal look before the fact lets the buyer imagine what it would be like to own a car wash business. If they like what the see in their minds eye they can pursue the project. </P> <P> Another way to get information is to speak with people in the business. They may be willing to talk if they are sure that you will not be in competition with them. They could lead you to brokers and companies that would be helpful in getting more information. The one question that you should try to get them to answer is would they do it again. Has it panned out like they thought it would before they got into it? </P> <P> Any information from all sources will help you evaluate even better the advantages and disadvantages of going into such a business. This is true of any type of business that a person is considering. </p> <P> The problem as always is one size does not fit all. One owners experience could be great and another could wish they never made the decision </P> <strong> Conclusions </strong> <P> This business, car washing, has so many options available to owners and potential buyers that need to be looked at and considered very carefully. </P> <P> It is not like buying a restaurant or a plumbing company. Those businesses have limited variations such as location or the type special services they offer. This business has many different levels of financial commitment to buy or start. All of these options make this an interesting business to consider. People are very particular about their cars these days. Their car represents a substantial investment that needs care and ongoing maintenance. This means this business niche is likely to grow and be used by more people all of the time. A trend like that makes this business even more attractive to the potential owner. </P> <P> Finding a business for sale and the needed money to make the purchase is fairly easy for a person that is used to using an Internet search engine. If you speak with someone in the business, they may be very helpful and even better they may be in the market to sell. If they are, the obvious question is why do they want to sell. In any event they could give you valuable insight into the business. </P> If you are looking to <a href="http://www.acquireo.com/tag/car-wash.aspx">buy a car wash business</a>, you can find them at <a href="http://www.acquireo.com/tag/car-wash.aspx"><B>Car Washes for sale</B></a> listings at Acquireo. Acquireo.com - Acquireo Team Fri, 31 Aug 2007 18:30:13 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-buy-a-gas-station-for-sale.aspx <p> Gas station business comes in many forms and types from what it used to be years ago. There are brand name stations, convenience stores, private brand stations and those stations that are part of a larger car care operation. </p> <p> All of these different options make for an interesting mix to consider if you are in the market to own a “gas station”. The first big difference to be considered is the fact that there is a big difference between a brand name station and a convenience store operation. In the first place a brand name station must buy its gas from the oil company it represents. A private convenience store can buy its gas from any supplier willing to sell to them. Or they may be tied to the convenience store chain they are part of. </p> <p> The path to ownership of a gas station can be done two ways. The owner can buy an existing business or start up a new one. There are many facets to buying an existing situation. This is particularly true if it is a brand name station or a name convenience store operation. These situations can be only a partner like situation and not a complete ownership deal. There are many variations in these deals and a business broker would be a good place to get advice as well as any of the brand name companies. In any case, be sure you understand completely any restrictions that will be placed on your business. After the purchase is not the time to discover that you do not have a free hand to run your business. </p> <p> Buying one or starting one could be very high in the requirement for capital. In either case the new owner of the business is going to have to come up with some decent amounts of capital in order to get into the business. </p> <h3> Finding the opportunities in the Gas Station Business </h3> <p> The way to find opportunities in this business is to talk to people who know what is available and the details of how it works. The buyer would be wise to speak directly with some of the brand name companies and also visit with business brokers to discuss their listings. The brokers will be aware of many of the deals that are currently open and they should be able to answer most questions that you have in mind. The convenience store operators will also be worth speaking with, as they are very interested in expanding their operations. They offer different deals depending on what they are after, just like the brand name gas companies. </p> <p> You can find all of this information or contact info on the NET. Using this resource can save time and allow the buyer to get quality facts and figures. This is very helpful in finding the right deal for you and deleting those that do not fit the your expectations. You might also approach some of the facilities near you and see if you can get any information from that owner. If nothing else you may be able to get a contact number. </p> <h3> Convenience Stores are different </h3> <p> Convenience stores are more like a retail operation and they make their money not only selling gas, but also by selling all manner of other products. Gas sales for most of them are really a convenience for the customer and not a big profit item. The other consideration for a prospective buyer is you are going to need employees to run the store. These stores usually are open seven days a week and 24 hours every day. This means it is mandatory to have employees to keep the doors open. This becomes an on going monthly expense that needs to be covered by the sales that are run through the cash register. If you are not good at hiring people and then managing them this could be a problem in owning one of these stores. The chain outfits are very good at teaching these skills to owners that have never done it before. If you learn easily, then this possible problem can be avoided. </p> <p> If you get into a private convenience store ownership, you do not have the immediate name recognition. You may gain the ability to buy from any company that will sell to you. The pros and cons in this area should be studied and many questions asked of the broker or the old owner. These questions should include the advantages of no brand name connection. A person looking to go into this area of gas sales should know all of the answers about the operation of the convenience store before purchasing this type of business. </p> <h3> Find the Money and Make the Deal</h3> <p> If a buyer has the money the deal is easy to make happen. If the buyer can find the money the deal is still possible. The point is, there are companies that show up on the Internet that specialize in making business purchases and sales happen. These companies will show up just by putting in “financing a business purchase” into the search engine. The results are huge when this is put into the search engine. There are any number of companies that finance business purchases. </p> <p> The advantage of having the money for the purchase is simple. The buyer can usually get a substantial break in price when offering an all cash deal. The savings can make whatever you pay in interest for the loan seem small compared to the savings. A cash offer is very difficult for a seller to ignore as long as the offer is in the realm of reason. This could give you an edge if there is another buyer in the picture. </p> <p> If you do not have the money and can not borrow it, this leaves the seller as the possible source of the money you need to complete the deal. Maybe the terms from the seller will be something the buyer can live with and even tolerate. </p> <strong>Conclusions</strong> <p> The gas station business is not as simple as it once was. The sales are made by brand stations or by stores that sell gas as a convenience for the customer and not as a great profit maker. Private companies can be a good buy if they have an isolated customer base. This business does not lend itself into getting started in it slow way. The first step is all in or not. </p> <p> A person with a reasonable down payment should be able to gain the rest of the money needed if the figures for the business show that it is a profit maker that could cover the loan. The seller may even consider carrying some paper back to facilitate the sale. </p> <p> Finding a business for sale is a natural for the Internet to do. The buyer can certainly find business brokers that would have listings that included these types of businesses. Speaking with these experts could go a long way toward helping the buyer make a good decision. The more factual information the buyer has at his disposal will improve the decision making process. There is no substitute for doing the homework when looking for a business to buy. </p> <h3><a href="http://www.acquireo.com/tag/gas-station.aspx">GAS STATIONS FOR SALE</a>:</h3> <ul> <li><a href="http://www.acquireo.com/tag/convenience-store-gas-station.aspx">Gas Station with Convenience Store for Sale</a></li> <li><a href="http://www.acquireo.com/tag/convenience-store.aspx">Convenience stores for sale</a></li> <li><a href="http://www.acquireo.com/tag/gas-station-with-property.aspx">Gas station with property for sale</a></li> </ul> Acquireo.com - Acquireo Team Fri, 31 Aug 2007 18:17:09 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/agricultural-business-start-up-ideas.aspx <P> Agricultural businesses are varied and cover much more than a large farm or ranch. A person looking to start a business or buy an existing business in this area will need financing as well as specialized knowledge. The availability of land to start a new agricultural business is a limiting factor these days as there just is not that much land still not being cultivated. This means that a new owner will usually have to find an agricultural business that is for sale. There are always family businesses for sale, but they do not become available at low prices these days. The land is valuable and the existing equipment if in good repair is also not cheap. New equipment is priced like new cars are these days. The prices are higher and higher and out of sight. Most new owners of ranches or farms were born into the family business and are just taking over the running of a family or corporate enterprise. There are other related agricultural businesses that can be started from scratch or purchased from an existing owner. These include farm supplies, farm equipment, nurseries, small special crop farms, pest control, a niche winery, crop dusting companies and horse or cattle ranches. All of these businesses can usually be found on the market. The problem, as with any other purchase of a business, is this. Can the buyer come up with enough money to interest the current owner and will the current owner carry back some of the paper. There are many very solid reasons that a new owner should consider buying an existing operation rather than starting a new company. The cost will be higher usually with a running business, but the existing business will have customers or a history of production. </P> <P> Many of the related agricultural businesses will not take the capital to get started or to buy that is needed for the purchase of a large ranch or farm Farming these days is a capital intensive business and this is one of the reasons that family units are always coming on the market. This opens the door for opportunity for the person looking to buy, but it also means that the buyer must have the capital or credit to make the purchase. A suggestion for a potential buyer is contact brokers who specialized in these businesses and see what is being offered and the terms of the offers. This will quickly inform the buyer what they are going to need to make a sale happen. </P> <h3> Getting started in related businesses </h3> <P> If you are interested in owning an agricultural business that supports the farming community, then your capital outlay may be significantly lower and may show a higher percentage return on investment. Farming has a low return on invested capital since the price of land and equipment has sky rocketed in this current market. Some of the other specialized businesses can be purchased or started with less capital and the percentage return is considerably higher. These are factors that should be considered by a potential new owner. One of the reasons that the family units come to market is just this fact. The old owners die or wish to retire and their children do not with to continue the business. So they put it up for sale, knowing they can get a better return on their money without the work or the risk of farming. Brokers usually know why a property is being offered and this knowledge can help the buyer make a better deal with the old owner. Maybe just as a matter of principal, they want to see their farm remain a family farm and not part of a large agricultural corporation. </P> <P> Related businesses offer the potential owner the chance to be in the agricultural business, but with a lower entry cost. Again check the Internet and with brokers to see if there are existing businesses for sale. If you are planning a new start-up, then you will need to do a good deal of investigation and planning to see if your idea is feasible. The biggest problem you will have is the agricultural community is pretty loyal to old suppliers and a start-up must fight this earned loyalty. Another question is there enough possible business to make your operation money above expenses. </P> <P> If you are going into a specialized crop area then this may be a situation where the return is much higher than normal farming. Some specialized crops do not take a huge amount of acreage to be successful. A small hot pepper farm can make a killing if they have the right crop and their harvesting season is different than the rest of the world. Small wineries in many states are allowing families to make a livable income and enjoy their way of life. Your broker should know if any of these types of agricultural businesses are for sale, or will you need to start your own operation from scratch. </P> <P> A farm supply company is just a specialized retail store. If you know how to buy merchandise and then market it, this can be a very profitable business. If you can find a need and fill it then you are going to be well ahead for most businesses. Winning on price is a dangerous way to do business. Filling a need with something that others do not offer is a sure way to make money. This kind of a start-up is golden. </P> <P> Any kind of special farm product that can be grown on small amounts of acreage can be a profitable venture as the capital cost are kept low and the return can be substantial. If you like an area and there is land available maybe this kind of agricultural business should be looked at and considered. Ag businesses that are support in nature and have nothing to do with the actual growing of the crops can be profitable as long as the farm community is financially healthy. </P> <h3> Conclusions </h3> <P> There are always agricultural businesses for sale; the problem is many potential owners do not have the needed capital or credit to pull off the deal. Farming is a high dollar investment due to the cost of land and equipment. It is also hard to begin a start-up since land is dear and good land is hard to find. This means that the only way most people can get into this area of the agricultural business is to buy an existing operation. Related agricultural businesses can also be found on the market. They may be easier to buy, as the investment needed will probably be lower and terms may be easier to arrange. This area is also easier to get a start-up off the ground and running. </P> <P> Special crop production is another way to make it in the agricultural business. If you know how to produce a special farm product and you do not need a lot of land to make it work, then this area may be just the ticket. The markets are wide open for quality higher priced farm products. </P> <P> The best advice that a potential owner can get is study the market and make sure you have the needed money to pull off whatever deal you are looking at. Find a knowledgeable broker and ask lots of questions. Use the Internet to look up answers to questions that you come across. There is a store of solid </P> <h3><a href="http://www.acquireo.com/business-category/Agricultural-Businesses-for-sale-page-1.aspx">AGRICULTURAL BUSINESSES FOR SALE</a>:</h3> <ul><li><a href="http://rss.acquireo.com/rss/tag/nursery.aspx">Nurseries for sale</a></li> <li><a href="http://rss.acquireo.com/rss/tag/landscape-nursery.aspx">Nursery and landscaping business</a></li> <li><a href="http://rss.acquireo.com/rss/tag/tree-farm.aspx">Tree farms for sale</a></li> <li><a href="http://rss.acquireo.com/rss/tag/fish-farm.aspx">Fish farms for sale</a></li> <li><a href="http://www.acquireo.com/Search/results.aspx?key=feed%20farm%20supplies&op=1&lo=&cou=1&sta=&tl=-1&pmin=-1&pmax=-1&cat=1&mile=rNFhMt805GNVD37jmRASDQ==&hom=-1&rel=-1">feed and farm supplies for sale</a></li> <li><A href="http://www.acquireo.com/business-for-sale/77741.aspx">vineyards for sale</a></li> <li><a href="http://rss.acquireo.com/rss/tag/pest-control.aspx">pest control services for sale</a></li> <li><a href="http://www.acquireo.com/Search/results.aspx?key=farm%20equipment&op=1&lo=&cou=1&sta=&tl=-1&pmin=-1&pmax=-1&cat=1&mile=rNFhMt805GNVD37jmRASDQ==&hom=-1&rel=-1"> farm equipment businesses for sale</a> </li></ul> Acquireo.com - Acquireo Team Fri, 31 Aug 2007 17:59:50 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/accounting-business-start-up-ideas.aspx <P>An accounting business never lacks for potential customers. There are always new businesses getting started. Established businesses may want to make a change from their current accounting connection or get a second opinion on a tricky tax situation. Specializing in Tax Accounting is another area that is open to a CPA firm. Corporate taxes are complex and need the advice and professional knowledge that such a firm could provide. The point is that this niche area of the business world is one that is always vibrant and open to those with knowledge, drive and a very strong work ethic. How to break into this lucrative income business is not as easy as it is with other privately owned businesses. The requirements to start or own a professional accounting business are very high as to education and experience. </P> <P> A knowledgeable person could start a bookkeeping service fairly easy these days as the software and computers have made it much easier than it was before computers. To get into professional accounting or tax planning takes education, experience and in most states passing the state’s exams for such a professional designation. If you like number crunching, have a penchant for detail and are willing to spend the time and money to gain the education and then the experience, this field may be your pathway to a business ownership. </P> <h3> How to get started</h3> <P> There are two obvious ways to gain ownership of an accounting firm. You can start an accounting practice from scratch or you can buy an existing firm. A hybrid way could be to buy into an existing firm with the plan to later buy the entire firm. There are advantages to both ways of entering the ownership of an accounting business. Starting one from scratch does not take a great deal of start-up capital, but there is no built in revenue source like there would be if an existing firm were purchased. This can be critical if the start-up owner is not good at acquiring new clients. A person starting from scratch should have at least some part time clients to give them some base customers. After that, the work of gaining clients one at a time is a battle that must be won and it is never ending during the first years of operation. The start-up owner must also have some capital to live on or another source of income while their business is getting off the ground. </P> <P> <a href="http://www.acquireo.com/business-category/businesses-for-sale-accounting-tax-consulting.aspx">Buying an existing accounting practice</a> is going to cost quite a bit more than starting a business from the ground up. An existing business has established customers and an immediate cash flow that will help to carry the business into the future. The problem for the potential new owner is the business will have a price tag that is based on the annual income. The larger the cash flow, the higher the price will be for the accounting practice. The first rule when thinking about going into business for yourself is to seriously consider buying an existing business. If the buyer has the money, the advantages far outweigh the negatives of such a purchase. The immediate cash flow is a positive that makes buying an existing business a much better bet for success than a new start-up business. </P> <P> Finding an existing business for sale is rather easy as the Internet is filled with brokers who specialize in buying and selling businesses. Many of these brokers have listings on their website. Find a couple in your area and see what they have to offer. </P> <h3> Other Accounting Business Possibilities </h3> <P> If a person likes accounting, but does not want to go the full route of becoming a CPA then there are other accounting business possibilities. A bookkeeping service can be started part time and slowly grow into a full time business. Every business needs their books kept up to date. It does not matter what kind of business it is, there is the consistent need for current bookkeeping. The owner of the business may not have the time to do the books, may not know how to do the accounting or just wants to hire out this aspect of his business. This opens the door to many businesses and can also be an arrangement with a CPA firm. The CPA firm may contract out the month-to-month bookkeeping to another company. They may just recommend another company to do the grunge bookkeeping work that is needed to run the business. The opportunity here is the business client needs the day-to-day bookkeeping done and does not want to do it for themselves. This fact opens the door to a bookkeeping service. </P> <P> An offshoot of the bookkeeping service is a payroll service, which can be a very good income source for the small bookkeeping service. Every business has to pay its employees in a timely manner and with few errors. This service is a commonly contracted out part of running many businesses. </P> <P> A third accounting business is a tax preparing service, sales tax service and employee income tax reporting. The tax preparation is an easy business to grow, as almost every body is a possible client. This means you can have individuals and businesses as clients. The individuals may be only once a year or four times a year. There are far more of these possible clients than there are businesses. This is a natural tie in for a bookkeeping service as the business client will have to report income and possible tax owed each year or maybe even four times a year. </P> <P> All three of these accounting type businesses can be started on a small scale and grown over time. It is also possible to find a bookkeeping service that is for sale and has a ready clientele. Again it is about money to buy or time to build the business. The cash flow for a one-person office or with a part time assistant can be substantial once a client list is developed or purchased. This area of the accounting business lends itself to a weekend part time start-up. The other plus factor is that with the computer and the software that is now available any one with a knack for numbers and can read can get into these businesses. You can also jump start the business by buying out a going service with a good paying client list. </P> <P> The other aspect of these niche areas is they do not take the formal education and meeting of state licensing requirements. The CPA exam for instance can take several years to pass. </P> <h3> Conclusions</h3> <P> If you have the education and can pass the CPA exams, then starting a CPA firm or buying one is a way to make a good living in a much needed business. The bookkeeping and the tax rules get more complicated each year. Clients have to be advised on how to meet these requirements. They need someone to do the work and it must be done right. Since they are experts at their business, they do not have the time or energy to study this area of their business. Consequently they hire it out to a firm or bring in a bookkeeper to help. All of these requirements make for a natural and lucrative arrangement for the accounting firm. </P> <P> The same can be said for the bookkeeping service and it may be easier to get into, as the requirements are not as strict. The owner along with good software can do a great deal of the work needed by clients. Since the rules and regulations get more complicated each year, this area of business will do nothing but continue to be in demand. </P> <h3><a href="http://www.acquireo.com/business-category/businesses-for-sale-accounting-tax-consulting.aspx">ACCOUNTING BUSINESSES FOR SALE</a></h3> <ul><li><a href="http://rss.acquireo.com/rss/tag/cpa-practice.aspx">CPA Practices for Sale</a></li> <li><a href="http://rss.acquireo.com/rss/tag/tax-practice.aspx">Tax Practices for Sale</a></li> </ul> Acquireo.com - Acquireo Team Fri, 31 Aug 2007 17:07:48 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/ways-to-finance-your-business.aspx <P> There are many ways to finance your business. Your own money that you have saved over time is the most obvious, but if that is not available then other sources must be found. Relatives and friends could be a source for temporary funds, but usually not long-term loans. Reliable long-term financing of a business is something that all businesses face at sometime during their life. </P> <h3> Cash flow</h3> <P>Cash flow is without a doubt is the biggest problem that all businesses must face. It does not matter the size of the company. The bigger the business, the bigger the cash flow problem. A growing young business is very likely to experience cash flow problems. The luxury of ready cash is one that comes with time and success for a business. In the meantime there is a need to get short term financing so the business can operate. If the owner’s savings have already been tapped, then other sources must be found. If the owner has a good credit rating then the bank may consider a signature loan to the individual and not to the business. The bank could also give a revolving line of credit that is backed by real estate or stocks. </P> <h3> SBA loans and factoring</h3> <P>Another way to get financing is to see if you can qualify for a SBA loan. This loan is again made to the individual and not the business. These are not quick to get or easy to get for the business borrower. Without some assets, you are not likely to qualify for such a loan. Further down the list of ways to get money for the business is to factor your account receivables. This can be easily done if you are selling to quality clients. Each factoring company has its own rules and what invoices they will accept for loans. These loans are limited only by the amount of your invoices and their quality. If all of your jobs are custom in nature, then you could demand a 50% deposit on all work you accept. </P> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <h3> Angel financing</h3> <P>Another source of money is seeking out what is known as angel financing. This money comes from wealthy investors who are seeking out promising young companies that should prosper if they have the money that is needed. There are several advantages to this financing, as it does not have to be repaid until the company is taken public or becomes so successful that the angel can be bought out. When you accept an angel you in affect take on a partner. This is not all bad as the angel could have contacts to grow your business. Successful individuals like this cannot only bring in capital, but also business expertise that could help your business grow faster and with a more solid base. </P> <P> You can find these angels by looking on the Internet or asking bankers or brokers in your area. They exist everywhere, but are usually found in bigger cities. </P> <h3> Bring in a partner</h3> <P>You can advertise for a partner to come in and help you grow the business. There are people in every city that are looking for a business opportunity that have money for the right situation. This is a longer-term answer that should be considered only if you feel the person that you are considering would be someone you could live with. Do not swap a temporary problem for one that will be long term in its effect. Partners in a business are similar to partners in a marriage. There are good unions and bad ones. You never know for sure what you are getting until later. </P> <P>Private personal loans can be obtained, but the interest rate that will be charged will be higher than what the bank will charge. Second mortgages on real estate are usually rather easy to obtain if there is sufficient equity in the property. The problem with all of these loans is they are made to the owner and not the business. If the business fails, the owner is still liable for the loan. When a business is very successful the banks and other lenders will make the loan to the business without the backup of the owner. But that will not be the case with a young growing business. </P> <P> There are many options for raising money to finance a business. The problem with all of them is they depend on having assets, good credit or significant cash flow when compared with the loan size. There are very few options that do not tie up the business’s assets and the owner’s. Few lenders will make loans to the business by itself. One of the few loans made to the business is factoring loans. Using the invoices as collateral for the loans makes this possible. </P> <h3>Private offering to friends</h3> <P> Another method to raise money is to make a private offering of stock to a small group of investors. This is easier said than done, but it is possible if you have the right group of people available. It has to be a small group or it would be considered a public offering and not a private investment. The rules are very stringent on this type of stock offering. Get good advice before you attempt it. </P> <P> A business cannot thrive if it is under financed for long periods of time. This problem must be resolved and the sooner the better. The struggle to live within the cash flow stream is one that all businesses face and it can make it extremely difficult for the business to prosper if they are always fighting the finance battle.</P> <P> Solving this problem is worth the time and trouble, as it will allow the business to have some breathing room and enjoy its growth. All possible solutions should be explored, as some are more of a fit than others. Obtaining fresh capital is always the way to go if the payback is not onerous. Getting the money is always the goal, but it has to make economic sense over the long run. Be careful not to jump from a small fire to a big fire that can consume you and your business in debt. </P> <P> Once the financing issue is under control, a business owner has the capability of growing the business in a manner that is sustainable. This is the goal of every business. Financial control is a precursor to successful growth, which can be carried forward into the future. When financing concerns are put in their place, the business will be able to grow with fewer problems or at least not those of a severe financial nature. Cash flow must always be watched and managed so the bills can be paid in a timely manner. Maintaining a good credit rating is always in the company’s best interest. </P> <h3> Seller Financing</h3> <P>Up to 90% of businesses sold are financed in some way, by either the seller or from other outside sources. Usually sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price. Read our article on the <a href="">seller financing basics</a> for more information.</P> <P><B> Conclusions</B></P> <P> Financing a business is never easy and a young business faces even more difficult problems to overcome. If the owners have money then the problem is fairly easy to solve. If there are no assets or extra money available all sorts of schemes will need to be played out in order to live with money short falls. Short-term money will need to be found from many sources. The ideas presented have been used by many businesses to overcome short-term money crunches. Surviving over time seems to allow the company more room. Every money crunch that is resolved will ease the problem for few days or even weeks. As a business grows, the money problems will always be there, but maybe not as severe in nature. </P> Acquireo.com - Acquireo Team Mon, 02 Jul 2007 16:28:46 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/step-by-step-procedure-to-buy-a-business.aspx <P>There are two questions you should ask yourself before purchasing any business. Why do I want to buy a business and what kind of business would fit in with your personal experience. The “why” is in many cases more important than the “what” when answering these two questions? You need to know why you want to own a business and are you ready both financially and emotionally. After you answer this question you can look into what kind of business you think you should own. </P> <h3>Why do you want a business?</h3> <P> Why you want to take on the responsibility of a business is important. Owning and running a business is a challenge to do successfully. If you want to be your own boss that is OK as long as you realize that your future earnings will be in your hands and not those who run the business where you are working now. You must have sufficient money to get the business up and running and still pay your monthly bills that you currently have. You cannot count on taking any money out of the business for several months to a year. Your own business does mean some freedom, but it also means you are the owner seven days a week and with little time off. You also need to figure if the business you are thinking of getting into is one that you can run without many extra people or is it one where you will need help. This is important for several reasons. More people means the business has to generate more income. There are also rules that need to be complied with as far as employees are concerned. Let’s assume you are financially and emotionally ready to take this big step. What kind of a business are you going to buy? </P> <h3> Which type of business would be a match? </h3> <P> The type of business depends on your interest and knowledge. If you have an area of expertise, then this area should be looked into very seriously. Are you a people person, then a business with a retail or business-to-business element would make sense. People businesses need a front person to capture the clientele. If this is your forte, then this business area should be looked into with a serious intent. One of the ways to find out which types of businesses are available is to look into a <a title="Find a business broker near you" href="http://www.acquireo.com/business-broker-directory.aspx">business broker </a> and see what they have listed. Another way to find a business that may not be listed is to ask bankers you know or other business owners. Accountants could be another source of businesses that are not listed for sale. Business brokers list most of the businesses for sale in the market online. Listings by private owners and Business Brokers online are available at the <a title="ind Businesses for sale online here" href="http://www.acquireo.com/buy-a-business.aspx">Buy a Business</a> Section of Acquireo.com.If you do not have the patience to browse each of them by state or category,Search the business you are looking for with a <a href= "http://www.acquireo.com/Search/SearchAdvanced.aspx">keyword or location</a> </P> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <P> With these two questions answered or at least a tentative decision made, the buyer needs to look at each business that meets the criteria that has been set. Formal meetings that allow for full disclosure of the business’s situation both current and future are an important step in finding out more about the business. How the business has done in the past is useful for predicting the future. This meeting is also the time to find out if there are any problems coming up or like building code changes or possible lawsuits. Are there any obligations, which will be assumed that can be brought forward in time as to payment? Are key employees going to stay with the business and if not can they be easily replaced. Is there a way to quickly add to the business or change some of its functions to add to the sales? Are the prices being charged at a fair level? The real reason for these meetings is to exchange information. Win-win deals can only be made when both parties are equally informed. </P> <h3> Buying a business outside of your experience or knowledge</h3> <P> If the business is one where you will need training to learn the business, make sure you have a timely agreement with the old owner for their help for a period of time. You would also be well advised to have the owner introduce you to the important clients that have made the company successful. This introduction could be the difference in keeping the client and losing them to a competitor. </P> <P> Learn as much as you can about the competition. These are the people who can move in on a new owner. Make sure they have not suddenly developed a product that is superior to what you will be selling. Also find out if you can who they sell to and why the old owner could not make any headway with the competitor’s clients. </P> <h3> Price negotiation</h3> <P> With the exchange of information out of the way, the hardest part of any purchase comes into play. The price that the business will sell for is usually a negotiated sum. There are many ways to come up with the selling price. The owner will have a price in mind and you will have an offering price you will start the bargaining with. Another price can be obtained from a third party who is certified to set prices for businesses that are put up for sell. The certified brokers have passed a series of tests that qualify them to come up with an unbiased value for the business being sold. This price is fair to both the buyer and the seller, because it is arrived at by standard business evaluation principles. This expert price is the result of hard work and careful analysis of the business both current and future prospects. </P> <h3>Terms of the deal</h3> <P> Once a price is set, the terms of the deal can be negotiated. There is always a cash price and a price, which involves terms. Most owners are willing to carry back some of the purchase price in order to expedite the sale. This is an area that usually can be dealt with by reasonable bargaining and private negotiating. </P> <P> Banks can be a source of funds for some buyers if they have assets and very good credit. Sometimes a person can arrange for private financing among friends of relatives. The seller is always a potential lender for the buyer if they have a big enough deposit. Some times the seller’s asking price is too high, but the buyers counter offer can be “I will meet your price, but you will need to give me very good terms”. This is all part of the buy-sell negotiating. Simple rules should be in play during the negotiating. Remember the seller wants to sell and if you make reasonable counteroffers, there is a good chance that one of them will be accepted. Do not try to win by just being stubborn. Compromise is the way to make the sell happen for the buyer and the seller. </P> <P><B> Conclusions</B></P> <P> Keep the old owner on your side, as you never know when you may need them for something that comes up after you have made the purchase. The problem may have happened to them in the past and they may know the perfect solution. </P> <P> The final advice for buying a business, is do your homework and do not believe that all will just go smoothly during the first year. There will be problems, and since you are the owner, you will have to resolve them in a timely manner. If you have to employ others, treat them with respect and if they know the business, ask them what they would do if they were in your shoes. Knowledge is power and respect will help you gain the employees willingness to share with you.</P> <P> Firm and fair are the traits of a good employer.</P> Acquireo.com - Acquireo Team Mon, 02 Jul 2007 16:16:33 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-decide-the-right-business-for-you.aspx <P>If you have the desire to own your own business, then the decision is which type of business should you start or buy. This question has several reasonable answers, but you need to decide why or what business would be right for you. </P> <P> Here are some of the criteria that help in making the correct decision. </P> <h3>Money</h3> <P> The amount of money you have for investment could be a deciding factor in picking the business you end up owning. The money will certainly determine if you can buy an existing business.This opens up more opportunities, as there are any numbers of businesses for sale in any given year. If you are not flush, then you must decide which type of business you would be comfortable starting from scratch. Those people who have capital have a great edge in the business they would like to own. They can afford to buy a successful business which also means they have a better chance of owning a moneymaker. Money or lack of it can be a very important element of which business could be right for you. </P> <h3> Experience in a business </h3> <P>Your experience or special knowledge can lead you to a business that would be an excellent choice for you due to this special knowledge. If you were a master plumber for example, it would make sense for you to own a plumbing company. The same would be true for an electrician or an engineer. Expertise in any field would let you have a better chance of owning a business, which would be successful Any service field that a person knows well is certainly an area that should be looked at very seriously. Service businesses are always in demand and quality businesses quickly gain customers and the subsequent referrals. If your knowledge were in management or consulting, then these areas would be natural choices. Prior experience could be a factor in making a business choice. </P> <h3> Personality or natural style</h3> <P>If your personality is naturally outgoing and people related, then you should seriously consider a business where you would have constant contact with people. Some sort of a <a title="Retail businesses for sale " href="http://www.acquireo.com/business-category/businesses-for-sale-retail-stores.aspx">retail business</a> or a business that is heavily sales related would be a good choice for a person with these traits. The analytical type may want to get into a business that solves problems. <a title="Home Inspection Businesses for sale" href="http://www.acquireo.com/Search/results.aspx?key=home%20inspection&op=1&lo=&cou=1&sta=&tl=-1&pmin=-1&pmax=-1&cat=&mile=rNFhMt805GNVD37jmRASDQ==&hom=-1&rel=-1">Home Inspection Business</a>would be a possible business choice. The idea here is take advantage of a natural instinct and make let it fit into a business that needs that kind of interest. </P> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <P>A person with sales ability has an advantage as they can fit into many types of businesses and do it with great success. Sales are the mother’s milk to any business and those who can sell are very likely to do well in any business that is heavily dependent on selling. A sales pro can also manage people well as management is basically getting people to do what you want them to do. Sales leaders have a knack for doing just that. </P> <h3> Change of career field</h3> <P>Some people need to have a complete change of career in order to become recharged with their work. If you have always wanted to be in <a href="http://www.acquireo.com/business-category/businesses-for-sale-building-construction.aspx"> building - construction business </a> and you are willing to study, then it is possible that a business in those types of fields would work out for you. You may have a hobby that you could convert to a thriving business. Maybe you have always wanted to own a hotel or a bed and breakfast, and then this could be a workable plan if you read about it and are aware of the pros and cons in this industry. Owning a saloon has a romance to it, but the business is confining and not everyone’s cup of tea. The point here is wanting to change your career field is fine, but make sure you are informed about the business before you make that leap. </P> <P> In order to make the change, you may need to go back to school so this idea will take some serious planning and work. Going back to school sounds easy. Doing it is another thing all together. </P> <h3>Spend time with an owner</h3> <P>A neat way to learn about a business you want to get into is to go to work for someone already in the field. Ask around and explain what you are after. You can probably find an owner who is willing to take you on if you can bring something he needs in return. This may not be available in all cities, but you never know until you ask. </P> <h3> A new niche business</h3> <P>If you can see a need that does not seem to have a solution business wise, then this could well be a good place to start up a new business. There are many examples from real life like Google or FedEx. These ideas became very good businesses as they were needed and filled a niche that had no companies in it at the time. </P> <P>This follows the maximum of find a need and fill it. The beauty of a niche business is if you are the only one filling it, you may have no competition to deal with. If you want to test your idea ask other people if they would use such a business if it existed. If the answer is yes, then you may be on to something. </P> <h3>Income</h3> <P> What level of income do you need and will the business you are considering provide this level of cash flow. If it will provide the money level, then keep it on your list. If not then you will have to continue your search. You may have to go to a different industry to keep the income at the level you need for your life style.</P> <P> If existing businesses are able to do this then you know it is possible to do. This may also be a reason to consider buying an existing business if you have the funds or can get terms you can live with. Changing to a much shorter income is okay if you can accept it, but for some this is reason enough to not become an owner. You have to be straight with yourself when it comes to income. </P> <P><B> Conclusions</B></P> <P> As you can see from all of the factors that need to be considered, becoming the owner of a business is not a decision that should be made without very serious thought. There are so many considerations to look at and answer for you. </P> <P> Unfortunately no one but you can provide the answers. This must be a complete commitment on your part in order to be successful. Kidding yourself about this could be a recipe for disaster. This is a time to be brutally honest about what you want and what you are willing to do to get it. </P> <P> Owning a business has many advantages, but you must be honest in your decisions. Only you are the maker of these business changes and you will win or lose based on what you do. When you own the business you are the upper management where the final decisions are made. </P> Acquireo.com - Acquireo Team Mon, 02 Jul 2007 14:00:54 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/buy-an-existing-business-pros-and-cons.aspx <p><strong>The cost of a new business vs. an existing one</strong></p> <p>Starting a business from scratch is usually far less expensive than buying an existing business. This is the biggest factor between these two choices. There are many reasons to buy an existing business. If money is not a limiting factor, then buying a business that is successful makes more sense that starting one from the get-go. One of the most important reasons for buying an existing company is they are established and the company has a monthly cash flow. The existing business enjoys a following of customers, which means immediate money coming in through the cash register. This one fact helps to offset the higher cost of an existing business vs. starting one up. Another factor is a new business has to do a great deal of advertising to let a potential customer know they are open and where they are located. The existing business does not need to do this kind of advertising.</p> <p><strong>Success chances of a new business vs. an existing business</strong></p> <p>A new start up business is far more likely to fail than an existing business with a successful history. The reason for failure in most cases is lack of cash flow and gross under financing. An existing business will have cash flow and a customer base, which will allow it to survive. A new start up business has neither of these critical elements. In addition the start up in many cases has little ready cash for waiting out the start up period and all of the expenses of getting a new business off the ground.</p> <p>Given a choice, purchasing an existing business is far more likely to be the better investment. A start up while attractive due to lower beginning investment has a greater chance of failure. These considerations should be taken into account by a person looking to own a business</p> <p><strong>Reasons not to go with an existing business</strong></p> <p>A startup business is less expensive than buying a business that is up and running. When you buy a company that has been around for a while, you assume the reputation of the business. You will have to live with the good will it has generated over time. If the good will has been slipping, then be prepared to spend some money letting the public know the company is under new management. In any event it is good to let the world know that new people are running the company. If your idea for the business is an offshoot of the current business, then you may or may not be better off starting fresh with a new company. If your business plan fits with the existing company then that should be the way to go. If they are contrasting or completely incompatible then a new start up is the way to own you new business life. Do not let your ego get in the way and lead you into a start up situation. There is absolutely no reason to feel that an existing business is less brave.</p> <p>A reason for buying an existing business is you may be able to get the old owner to help you learn the ropes if it is a new experience. Many owners of startups are fearful they might fail at running a business so they try to take the less expensive way to try managing a company. This is not a valid reason but somewhat of a cop out. </p> <p><strong>Which situation will cost more in advertising dollars</strong></p> <p>A start up will need a great deal of early publicity to attract customers to the business. This is required as the location, the name and what you are doing is not known when you first open your doors. This type of advertising is far different than what you would do with an existing successful company. You might want to show the public that new management has taken over the existing company. </p> <p>A new company that never existed before will need to spend money on TV, radio and newspaper ads to attract customers to the new establishment. They will have to repeat the ads in order to get their message across so the customer will give them a try. In some ways this expense could be considered part of the initial cost of the new business.</p> <p><strong>New business employees</strong></p> <p>An existing business will have employees who know their job and are very likely to be responsible for the overall success of the business. Any company is only as good as the people who work for it. A successful business has gone through the shake out period of finding good employees. A start up business needs to find employees and this takes time to develop a good staff. This adds another critical factor to the start up time of the first year or so. A new owner cannot do everything by himself or herself. They will need help from their family or need to hire it in. If the business is new to the new owner as far as experience, this start up time also requires a very quick learning curve.</p> <p><strong>Customer base</strong></p> <p>The customer base has to reach critical mass in order for the business to grow and stay successful. An existing business will have developed a base of customers. A new start up has very few customers when the doors are first opened. The problems for both situations are different and need to be addressed. An existing company will need to maintain its existing customers and then try to add to that number. As long as the standards that allowed the company to get where it is are continued, the base should remain stable. If there is a fall off in the work or treatment, the customer base could begin to erode. This is not uncommon when a new inexperienced owner takes charge. The wise new owner will make every effort to not let this happen. A start up business has no base and needs to grow one as quickly as possible. A sizable customer base will automatically generate cash flow for the company.</p> <p>Without this luxury, a new business must get new customers the hard way, one at a time. There are very few referrals in a start up business’s early months. This is a significant difference between an existing business and a start up business. The new owner of an existing business would be wise to spend the time on meeting all of the important customers of the company. If the old owner would take the time to make the introductions, that would be even better. </p> <p><strong>Conclusions</strong></p> <p>If money is not a consideration, then an existing business is the way to go. The odds are definitely in the favor of new owner of an existing business. The start up is the way for a less financed person to own a business. It will be more difficult to make a go of it, but it can be done. A good idea and a great deal of hard work can make it successful. Study your situation and compare the pluses and minuses for a business that you want to own. If you cannot find one for sale on favorable terms then you may be forced to start from scratch. In either case, you will end up with a different kind of boss. The boss will be you. </p> Acquireo.com - Acquireo Team Sat, 16 Jun 2007 00:41:35 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/business-seller-financing.aspx <p><strong>Seller financing</strong></p> <p>A seller that is willing to accept terms will usually have a different price for a financed deal versus cash only deal. If the buyer is asking for terms, then their negotiating position is weaker than if they were paying the cash out price in full. It does not matter to the seller if some of this money is from a loan from another source.</p> <p>If terms, using the seller, are the only way the deal can be floated, then this will take some serious discussion as to length of time and the amount of the loan. The balance will come from money the buyer has access to. The purchase price of a seller-financed purchase can carry a premium of 40 to 60% more than the cash price. It is obviously in the buyer’s interest to get the money elsewhere so that the cash only price can be met. </p> <p>This large variance in price makes for spirited negotiating and leaves a great deal of room to come up with a deal. This is where a third party like a business broker is very useful as they have been through this stage of a sale many times. A broker would have more experience at this deal making than either the buyer or the seller in most business sales.</p> <p><strong>Third party financing</strong></p> <p>If the company being purchased has a solid financial history that can be documented by a CPA or a business attorney, then it may be possible to get some financing from a bank or a private lending group. The buyer would also have to have a very good credit rating, as the loan will be made to the buyer and the business with both responsible for the loan. </p> <p>A private lending group may be a little easier to get a loan from, but the interest rate would probably be higher.</p> <p>It may be possible to get the needed money from relatives or friends in order to make the purchase. In any event is it worth trying all avenues to get the needed funds. The worst that can happen is the answer is no and the deal cannot be made.</p> <p><strong>Other possible money sources</strong></p> <p>It may be possible for the buyer to become a majority partner for a time with the old owner in order to make the sale. All of the business liabilities would be the new owner’s problem, but the old owner could be a participant in the business until it is paid in full. This would be a tricky negotiation, but it could be pulled off with a motivated seller.</p> <p>One source that may have real possibilities is the use of angel financing. This is money put up by an investor or investor group to help a company with good prospects grow. The buyer would be advised to see if this is a possibility as there are many advantages to this way of raising money. The best part being that the money does not have to be paid off until the company is sold or taken public. If the company has prospect like this due to an invention or a new product, then it is possible to attract some attention.</p> <p><strong>Caveats for both the buyer and the seller</strong></p> <p>Any financing that is arranged to make the purchase must be based on reasonable growth for the foreseeable future and not a huge increase in business. If the increase does turn out to be better than expected, the buyer will be able to retire the debt sooner. But, the buyer should not count on this in order to make the payments. The payment needs to be structured using conservative projections for the business’s future sales and profit. Any other scheme could be destined to failure from the get go. A payment plan that is based on pie in the sky will work to the buyer’s detriment and the seller will end up with a repossessed business that could be harmed by a desperate owner. This would be a very bad arrangement for all concerned.</p> <p>The secret is to come up with a plan that will work if everything stays exactly the same. If the business has a steady flow of cash over time, then it is likely that this will continue into the future. This plan will lend itself to completion that is in every one’s best interest. </p> <p><strong>All business deals are unique</strong></p> <p>Almost all sales of a business are unique and require a different approach in order to pull the sale off. Fixed multipliers are just guidelines to come up with an asking price and are not set in stone. Subjective values of businesses are the norm and may well be why a pro needs to be brought in to evaluate the business’s value. This is the key to future financing whether it is the seller that makes the loan or another party. If the business is one of a kind it is even more difficult to come up with an asking price. In this case it is even more important to hire a certified business broker <a href="http://www.acquireo.com/business-broker-directory.aspx" title="Business broker directory">Find a business broker near you.</a> Putting a value on an existing business is part real numbers and part a skillful art. At least the pro has some idea of where to start when coming up with a price.</p> <p><strong>Conclusions</strong></p> <p>Early in the discussion of the sale of the business, the air should be cleared as to where the purchase money is coming from or if the buyer is going to need to use financing to make the purchase.</p> <p>The seller needs to let if be known if they are willing to accept terms or finance part of the purchase price. If they are looking for an all cash deal, then this should be stated also.</p> <p>Laying out the cards early lets both parties know if they should continue the discussion or move on. Structuring a business purchase is all about factual discussions and obtaining the pertinent information. Honest disclosure will move the deal along faster if the discussion is acceptable from the beginning.</p> <p>If the seller and the buyer are still interested at this point, then further discussions could be held with the hopes of finding an agreement that works for both. Since terms are part of most deals, this is not usually an obstacle. If there were no seller financing then many deals would never be finished as other financing would not be available. As it turns out this is the grease that makes deals slide together and become a win-win situation.</p> Acquireo.com - Acquireo Team Sat, 16 Jun 2007 00:37:25 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/after-you-buy-a-business.aspx <p>After you buy a business, what should you do? That question has many answers and it depends on the kind of business you purchased. It also depends on what your operating capital looks like after a substantial outlay of money to make the purchase. Consider the following items for review and maybe even possible changes. New ideas for expanding the business or improving how it is run should be put into play slowly and not with abrupt measures.</p> <p><strong>Small changes and big changes</strong></p> <p>Right after taking over the ownership of a business it is natural for the new owner to put his personal stamp on the business. This move should be done with caution and slowly, as employees are nervous with the change in ownership. Snap changes should be small in nature and big changes should be discussed with key employees who will be affected by the changes. The operative rule is to do this cautiously and even let a month or two pass before instituting any major change. Rocking the boat right after purchase can be disconcerting to all involved.</p> <p> <center> <small>article continues below</small> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p>If a big change were necessary the owner would be wise to hold a meeting and explain the reasons for the change being put in place. Saving money or an increase in efficiency are valid reasons to make a change in operating procedures. A change that will affect employees' take-home pay better be explained in detail to each person. Loss of income will cause an immediate reaction that could have long-lasting consequences. Changes of this nature should be carefully considered before they become policy. Any change that decreases a person's paycheck will be resented and should be explained.</p> <p>Any owner always looks for new products or a new way to do business that increases sales and income. The new owner is no exception; in fact a new owner will be more likely to try something different. Make sure you let your people in on your idea.</p> <p><strong>Inventory and equipment</strong></p> <p>Inventory and equipment are always of concern to a business that manufactures products or does a service like a printing company. Managing the inventory so that you have what you need on time needs to be watched and maintained. The secret is to not overbuy and waste cash flow on inventory that can be purchased closer to when it is needed. Most companies assign someone to keep track of what is used and when it should be replaced. This is an important area for a new owner to get the handle on as quickly as possible.</p> <p>Equipment that is used routinely should be serviced regularly. If your company is dependent on this equipment, then it should be maintained in a timely manner.</p> <p>Preventable breakdowns should be kept to a minimum. Breakdowns are always expensive in repair cost and loss of work time. If your company is running on old equipment that is nothing but bandages and hope, you better start thinking of buying equipment. Ask your suppliers if they know of any for sale. Suppliers can be an excellent source for finding equipment and special repair people.</p> <p><strong>Say hello to your major clients</strong></p> <p>If you can arrange it, let the old owner introduce you to the major clients. If not, do it yourself. There are several other things you can do when you take over a business.</p> <p>Send a letter letting clients know that new management has taken over the company and if they have any questions or suggestions, please give a call. Arrange for an open house for any clients to visit and meet the new owners and management. Communication at this juncture is worth the effort. It also will help to alleviate concerns by the client and maybe prevent stories from circulating that could be harmful to the company. It also keeps competitors from stepping in and trying to take your client. Most customers will stay if they have been content to this point.</p> <p>Let all potential customers know that the company has changed hands and would like to be considered for future work. There are several reasons for this move. Maybe the old owner had a dispute with the potential client. If this is the case, maybe this can be put to rest. You may get lucky and hit a client that is looking to make a change from their current supplier or Service Company.</p> <p>The point is, you should let the world know that the company is continuing and will be run by new people. This is a way to keep existing clients and get new clients. Keep the current customers and grow the business with new clients. This is the way to grow an existing business.</p> <p><strong>Employee interviews</strong></p> <p>Early in the changeover to you running the company, you should schedule meetings with employees and managers if there are any. This should be a two-way conversation. You want the employee to know more about you and what you are going to do. You can learn more about the day-to-day operations of the company. Ask questions and then listen very carefully. Take notes as this lets the employee know you are listening. Good employees are hard to find and every effort should be made to keep them once you find them. Employees in an existing company have been tested and the ones remaining have proven their worth to the company. At least, that is the supposition that should be assumed at the beginning.</p> <p>Let some time pass after you buy the company so you can make your own judgments about the current staff of people. This will help you from making mistakes due to wrong impressions. Do not be afraid to show a little humor with the people who are working for you. Humor has a leveling effect and makes for common bonds over time.</p> <p><strong>Advertising</strong></p> <p>Look at where the business advertised in the past and make sure that the internet is included. Update the company website. New management banners can be rented and displayed for a month or so. When making a decision on where to spend advertising dollars, ask for a breakdown of who will see your ad and the number who will see it. If the viewers seem small, seriously think about passing, unless it is a very select group of potential clients. Advertising is a necessary expense that must be used, but thoughtful decisions are in order.</p> <p><strong>Conclusions</strong></p> <p>The first few months after purchasing a company are not the time to make mistakes that can be avoided. Changes should be done carefully and explained to the employees. Advertising should be continued, with the mention of new ownership. Employees should be met and interviewed for information and evaluation. They probably know more about the company than anyone. An effort should be made to meet important clients since they are the source of cash flow to the company. Check the inventory controls or the lack of them. Make sure that some one is responsible for this part of the business. Ask the most knowledgeable people in the company about the state of the equipment and is there a maintenance program in place. Prevention of problems is a necessity for any company. The most important thing an owner can do is ask questions and listen.</p> Acquireo.com - Acquireo Team Sat, 16 Jun 2007 00:26:23 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/The-Right-Business-For-You.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> According to industry statistics, over 90% of the people who begin the search to buy a business NEVER do! </p> <p> The only way that you'll avoid being a 90 percenter is by acquiring the right knowledge. Likewise, the only way to ensure that you will be successful in the business is to be absolutely certain that you buy the right one. </p> <p> Don't be alarmed, most people have no clue what business is right for them. The amount of businesses for sale can be daunting; the choice is enormous. </p> <p> There are many proven steps that can help you determine what is the right business for you. </p> <p> <strong>Develop YOUR Golden Rules:</strong> </p> <p> Put together your list of five golden rules of what any business you buy MUST have in place. Think about this and be specific. Don't say: " I have to enjoy what I do"...sure that's important, very important in fact. However, if you're in a business that you initially think you're going to love, but you find yourself losing money, I can assure you that you'll learn to hate everyday very quickly! </p> <p> As an example, here are my five golden rules for any business I consider buying: </p> <p> It must be a sales and marketing driven business - that's what I do best. It must have some element of exclusivity either in the product or within a territory. If not, I have no point of difference to offer new clients and maintaining current clients will always be a risk. The product or service must be a high margin item -this way, it's simply a matter of time, persistence, and sales savvy (my strength) for me to build the business. Plus, the margins will allow me to try new, creative ways of building the business. There must be a built in demand for the product or service. I've learned the hard way that trying to create demand is far too expensive. I do not want to sell anything that competes solely on price. There's no long-term viability in that business model. These are my rules. Unbreakable. Non-negotiable - no matter what! Guess what? They are bulletproof. When I find a business with these in place, and there are plenty, I am always going to be successful. You can certainly follow mine, but I will also show you how to modify them to find the business that makes perfect sense for you. </p> <p>   </p> <center> <small>article continues below</small><br /> <a href="http://www.diomo.com/?m_a=1240"><img src="http://diomo.com/banners/6_image.jpg" border="0" /></a> <br /> <br /> </center> <p>   </p> <p> I must admit that I do have a fifth and sixth rule, but they are negotiable: I like businesses that don't have a lot of employees and I prefer, if possible, to have a business where there are repeat orders from all clients. But again, I will sway from these two but never, ever from the other five. </p> <p> Helpful hint: you probably won't come up with five today. Your list may even change a bit during your search. As you visit different businesses, speak with sellers, and conduct your research, you may discover certain things that are added or deleted from your list. That's OK. However, getting this list down pat as soon as possible is fundamental to your success! </p> <p> <strong>"Whatever It Is That You Do Best......"</strong> </p> <p> Next, get a true grip on your skills. Don't pretend to be something that you're not. The rule here is that whatever it is that you do best (sales, marketing, operations, etc), must be the single most important driving factor of the revenue and profits of any business you consider purchasing. Repeat the last sentence once again; it holds the key to your success! </p> <p> With business ownership, one of the main goals is for you to control your own destiny. Don't put yourself in a position where if one employee leaves, you're in big trouble. Your skills must be the fuel that drives the engine. </p> <p> The right business for you is one that will thrive from your strengths and not suffer from your weaknesses. Take a long, hard look at yourself. Picture yourself in the business. Of paramount importance is that you must perceive yourself as enjoying the business. If you can't, then there's just no way that you can be successful. The business that you choose has to be one that you'll be proud to own. </p> <p> <strong>Fall In Love With The Profit NOT The Product!</strong> </p> <p> Another key factor is to avoid falling in love with the product; rather, you must fall in love with the profit and the lifestyle that it can deliver to you. Many buyers begin to dream about all of the exciting things about the business and they become delusional about what can realistically be achieved. The product that the business sells, or the service that it offers, unless offensive in nature, is meaningless in the overall scheme. If the business does not produce the income you need, or provide you with a satisfactory return on your investment, then rest assured, you will learn to detest the product quickly. </p> <p> Likewise, a bland, boring product line can become very attractive if the business is growing and you're enjoying the work. </p> <p> <strong>Stay Focused - Don't Get Discouraged</strong> </p> <p> During the search phase, it's easy to become discouraged by the vast amount of available businesses. Don't get overwhelmed. Approach this methodically. If necessary, rule out the ones that you don't want. For example, if you're not interested in a gas station, restaurant or convenience store, you'll rule out 50% of all online listings. Search through listings paying attention to the profits not just the asking price. Understand that listings do not always portray the whole picture. Send inquiries to the listed contact. Arrange meetings with sellers. Prepare the questions you need to ask. You cannot by a business from a listing. Visit businesses. With each meeting you'll get closer to knowing what is and isn't right for you. </p> <p> Above all, get into the game. Once you own the right business, you'll never look back! </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:28:08 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Valuing-A-Business.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> Accurately valuing a small business is often the most challenging part of the process for prospective business buyers. However, it doesn't have to be an overwhelming or difficult undertaking. Above all, you should realize that valuation is an art not a science. As a buyer, always keep in mind that the “Asking Price” is NOT the purchase price. Quite often it does not even remotely represent what the business is truly worth. </p> <p> Naturally, a buyer's valuation is usually quite different from what the seller believes their business is worth. Seller's are emotionally attached to their business. They usually factor their years of hard work into their calculation. Unfortunately, this has no business whatsoever being in the equation. </p> <p> The challenge for you the buyer is to formulate a valuation that is accurate, and will prove to provide you with an acceptable return on your investment. </p> <p> <strong>There are several ways to calculate the value of a business:</strong> </p> <ul> <li><strong>Asset Valuations:</strong> Calculates the value of all of the assets of a business and arrives at the appropriate price.</li> <li><strong>Liquidation Value:</strong> Determines that value of the company's assets if it were forced to sell all of them in a short period of time (usually less than 12 months).</li> <li><strong>Income Capitalization:</strong> Future income is calculated based upon historical data and a variety of assumptions.</li> <li><strong>Income Multiple:</strong> The net income(profit/owner's benefit/seller's cash flow) of a business is subject to a certain multiple to arrive at a selling price.</li> <li><strong>Rules Of Thumb:</strong> The selling price of other “like” businesses is used as a multiple of cash flow or a percentage of revenue.</li> </ul> <p> Let's look at eack to determine what's best for your purchase: </p> <p> Asset based valuations do not work for small business purchases. Assets are used to generate revenue and nothing more. If a business is "asset rich" but doesn't make much money, how valuable is the business altogether? Conversely, if a business has limited assets, such as computers and office equipment, but makes a ton of money, isn't it worth more? </p> <p> Income Capitalization is generally applicable to large businesses and most often uses a factor that is far too arbitrary. </p> <p> The “Rule of Thumb” method is too general. It's hard to find any two businesses that are exactly the same. Valuation must be done based upon what you, as the buyer, can reasonably expect to generate in your pocket, so long as the business' future is representative of the past historical financial data. </p> <p> The multiple method is clearly the way to go. You have probably heard of businesses selling at “ x times earnings”. However, this can be quite subjective. When buying a small business, every buyer wants to know how much money he or she can expect to make from the business. Therefore, the most effective number to use as the basis of your calculation is what is known as the total “Owner Benefits”. </p> <p> The Owner Benefits amount is the total dollars that you can expect to extract or have available from the business based upon what the business has generated in the past. The beauty is that unlike other methods (i.e. Income Cap), it does not attempt to predict the future. Nobody can do that. Owner Benefit is not cash flow! It is however sometimes referred to as Sellers Discretionary Cash Flow (SDCF). </p> <p> The theory behind the Owner Benefit number is to take the business' profits plus the owner's salary and benefits and then to add back the non-cash expenses. History has shown that this methodology, while not bulletproof, is the most effective way to establish the valuation basis of a small business. Then, a multiple, based upon a variety of factors, is applied to this number and a valuation is established. </p> <p> The Owner Benefit formula to use is: </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Pre Tax Profit + Owner's Salary +<br /> Additional Owner Perks + Interest + Depreciation</strong> </p> <p> <strong>Why Add Back Depreciation?</strong> </p> <p> Depreciation is an expense that allows a business to deduct a certain amount of money each year from an asset so that it's purchase value is reduced by its overall useful life. As an example: if the business buys a $25,000 truck and it's useful life is estimated at 5 years, then each year, the company can deduct $5000 off it's income to lessen its tax burden. However, as you can see it is not an actual cash transaction. No money is physically leaving the business or changing hands. Therefore, this amount is added back </p> <p> <strong>Why Add Back Interest?</strong> </p> <p> Each business owner will have separate philosophies for borrowing for the business and how to best use borrowed funds if necessary at all. Furthermore, in nearly all cases, the seller will pay off the business' loans from their proceeds at selling therefore you will have use of these additional funds. </p> <p> <strong>A Note About Add Backs:</strong> </p> <p> After completing any add backs, it is critical that you take into consideration the future capital requirements of the business as well as debt service expenses. As such, in capital intensive businesses where equipment needs replacing on a regular basis, you must deduct appropriate amounts from the Owner Benefit number in order to determine both the true value of the business as well as its ability fund future expenditures. Under this formula, you will arrive at a "net" Owner Benefit number or true Free Cash Flow figure. </p> <p> <strong>What Multiple?</strong> </p> <p> Typically, small businesses will sell in a one to three times multiple of this figure. Now, this is a wide range so how do you determine what to apply? The best mechanism I have found is that a one time multiple is for those businesses where the seller is “the business”. In other words: "as out the door goes the seller, so too can go the customers". Consulting businesses, professional practices, and one-man businesses come to mind. </p> <p> Businesses that have a strong track record, repeat clients, historical pattern of growth, more than 3 years in business, perhaps some proprietary item, or an exclusive territory, a growing industry, etc., will sell in the 3 times ratio. The others fall somewhere in between. </p> <p> So now the big question: what number/multiple do you apply to the Owner's Benefit number? The answer is simple: nearly all small business will sell in the 1 to 3 times Owner Benefit window. Of course this is a very wide range. </p> <p> <strong>The Rules To Apply To Establish A Multiple:</strong> </p> <p> You also want to calculate the Return On Investment (ROI) that you can expect to achieve when buying a business. Let's say that you have $100,000 for a down payment. If you go to Las Vegas and let it rip on “17 black” well you should be entitled to enormous odds. Wouldn't you agree? On the other hand, if you invest it in commercial real estate, which is a sold, stable investment, then 10% return on your money seems about right, doesn't it? </p> <p> Buying a business is clearly more risky that real estate but definitely not Las Vegas and so you should expect something in between. I've always felt that 25% return on your investment should be the minimum and you can, if negotiated well, you'll get as high as 35% -50% ROI. </p> <p> <strong>If You're New At This, Here's What To Do:</strong> </p> <ul> <li>If you don't know how to read an income statement, then learn. It's important for this process. It's simple, and can be done quickly.</li> <li>Work with your accountant, if necessary, to determine the true Owner Benefits of the business. Be careful about the add-backs. Make certain that any benefits being added back are not necessary expenses needed to run the business.</li> <li>You can only add back something that has been expensed.</li> <li>Calculate a multiple in the 1-3 times window based upon the business' strengths and weaknesses.</li> <li>Determine your investment level and an acceptable ROI.</li> <li>Understand that value is personal.</li> <li>If the business is right for you, it is all right to pay a slight premium but not too drastically overpay.</li> <li>Consider applying other valuation formulas simply as a test to your figure.</li> </ul> <p> <strong>Professional Valuations: Do You Need One?</strong> </p> <p> For most small businesses, hiring a professional to perform a valuation is not necessary. First of all it is expensive, and more often than not, it simply does not reflect reality. I read a valuation recently on a local company handling specialized telecom components in a very restricted marketplace doing $700,000 a year in sales and netting $100,000. The valuation started off: “The company is focused upon the B2B telephony segment which is a $42 billion industry in North America.” I threw out the entire report after reading that one sentence. Why? How on earth can you possibly compare a $42 billion dollar industry and a $700,000 local distributor of telephone systems? Don't waste time or money getting a professional valuation done. Let the seller do that if they so choose. If you want to look at a variety of scenarios, they are some very good, inexpensive software packages available that will do the same thing at a fraction of the cost. </p> <p> <strong>The Key Points:</strong> </p> <ul> <li>Remember that valuations are not scientifically based; they're subjective.</li> <li>Use a variety of methods.</li> <li>Owner Benefits is the number to base your multiple</li> <li>Uncover how the seller established the asking price</li> <li>Valuation is a personal formula - What's the business worth to YOU</li> <li>Consider the potential return on your cash investment</li> </ul> <p> <strong>The Final Word:</strong> Never, ever buy a business just because the price is right - first and foremost be certain that the business itself is right for you! </p> <p> The contents of this article have been extracted from How To Buy A Good Business At A Great Price. The valuation section contains over 30 pages. </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Due-Diligence.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> Due diligence is probably the most critical stage in the buying process. Many prospective buyers incorrectly identify this period as strictly a financial review but it goes far beyond that. Due diligence encompasses are far greater project and that being the complete investigation and review of the business. </p> <p> One of the keys to buying a good business, comes from your ability to learn the intimate details of the business. To identify the strengths, weaknesses, pluses, minuses, growth opportunities and areas of concerns. If you do not do a flawless job of gathering information, you will not be able to pull the trigger and complete the transaction since you'll be uncertain about too many components of the business. </p> <p> <strong>When To Start The Due Diligence?</strong> </p> <p> The investigation process begins the moment a business becomes of interest to you're your goal is to make certain that you uncover everything about any business BEFORE you buy it. You don't have to meet the seller or even visit the business for your research to begin. The Internet is an incredible tool that will allow you to investigate the business, the industry, the competition, the marketing, the suppliers, and on and on. </p> <p> The importance of beginning your investigation early on cannot be emphasized strongly enough. This way, you'll position yourself to ask the proper questions to the seller. Once you progress to the stage of an accepted offer, you will commence the inspection or financial due diligence. This period usually lasts 10-30 days. This is the time when you'll have access to all of the company's books and records. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> Once you being looking at a particular business, you'll find a thousand things crossing your mind regarding the acquisition. Keep a notepad handy at all times and log your thoughts. You'll have many thoughts about things “I need to check out”. Write these all in one place. Don't trust your memory; these little things are the ones that can come back to haunt you down the road. Begin to put together your checklist of what you ned to investigate and how you're going to do it along with the materials you may need from the seller to accomplish it. </p> <p> <strong>A couple of things to keep in mind:</strong> </p> <ul> <li> <p> <strong>Allow yourself enough time:</strong> Many sellers and some brokers will press for a very short inspection period; sometimes just days. Don't get bullied into this - give yourself ample time to complete this part of the process. You should allow for, negotiate and not settle for less than a 20 business day inspection/due diligence period. </p> </li> <li> <p> <strong>Prepare properly:</strong> Since you'll have some time restrictions (you'll only have x number of days per the contract), provide the seller with a listing of all of the materials required for you and or your CPA to complete this exercise. No matter what you're told, do not begin the process until they have everything ready for you. </p> </li> <li> <p> <strong>Dealing With Surprises:</strong> You'll probably find some surprises, don't panic, it's normal. Work through them. Get clarification. Build your case. Don't run to the seller or broker every time you find an inconsistency between what you've seen versus what you were told. No business is perfect. The rule to follow is do not treat any incidents as catastrophes nor should you treat any catastrophes as incidents. If you find a major problem, get your facts in order and you can then decide the appropriate action to be taken with the seller (i.e. renegotiation, walking from the deal, etc..) </p> </li> </ul> <p> According to industry statistics, nine out of ten people who begin the search to buy a business never complete a transaction. While there are many reasons for this dismal figure, a lot has to do with the inability of people to "pull the trigger". This gun shy reaction is related specifically to uncertainty: if you have not gathered the right information or failed to investigate the business thoroughly you will not be 100% certain of what to do. And so, you'll drop the project. Conversely, if you do a flawless job of investigating the business, and everything else adds up right, then making the final decision is simply one more step in the process! </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Business-Brokers-Do-You-Need-One.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> One of the most frequent questions I am asked by prospective business buyers is whether or not they should hire a business broker. My initial response is always: "yes...but". The "but" is that you should "use" one, not "hire" one. A business broker can have a very specific and important role in the buying process. The "but" is related to understanding what that role is. </p> <p> Business brokers almost always represent the seller. The seller pays their commission and even if they are assisting you in the process, they have a fiduciary duty to the seller. This is not to say that they won't provide you with helpful advice. </p> <p> <strong>Why then, you may ask, should you use a broker?</strong> </p> <p> In the past thirteen years, I have personally purchased ten businesses. I have used a business broker in nearly every transaction. Even though I would consider myself a very savvy buyer, there are three things that a business broker can do that are very helpful. </p> <p> <strong>Business For Sale Listings:</strong> </p> <p> They can provide you with access to business for sale listings and details about the business that you may not discover on your own. Although the majority of businesses sold in the U.S. are not done through brokers, some states have a multiple listing service of businesses for sale, similar to residential real estate. In states that do not offer this, brokers will often only show you their own listings. In those cases, you'd have to work with several brokers just to see a variety. You may want to search for your states, "business broker association" and see if such a service exists. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Always Good To Have A Buffer Between You and The Seller:</strong> </p> <p> They can be a conduit to help deliver bad news to the seller. There may be instances where you have to retract or modify an offer and certainly times where you'll need to adopt an aggressive negotiating position. Since you'll most likely need the seller to train you after the purchase, it's not a good idea to aggravate them too severely. As such, let the business broker deliver the bad news. </p> <p> <strong>The Paperwork Is Astounding:</strong> </p> <p> A business purchase, no matter how small, requires a tremendous amount of coordination and document chasing. The data you'll need from a seller to evaluate a business, the documentation required to close a deal and the overall chasing that must be done between buyer/seller and their professional advisors, can be astounding. A good broker will be an enormous help putting all of it together. </p> <p> <strong>Using The Right One:</strong> </p> <p> In addition to being frequently asked by readers of my book about brokers, I also receive the greatest number of complaints from readers, about brokers. While many of these complaints are justified, equal amounts are due to a basic misunderstanding of what a broker can or cannot do. </p> <p> A business broker cannot help you buy the right business. They can assist you, but ultimately, it is up to you to make that decision. A business broker cannot afford to spend countless unpaid hours searching for the right business for you. The search is something that you must do. They'll provide you with the tools to do it, but it's your responsibility to get the ball rolling. A business broker cannot conduct the investigation for you. They may suggest common things to look for, but they won't be your detective. A business broker cannot negotiate the best deal for you. Most will certainly attempt to bring all parties to a point of understanding, but if you want the best deal, then you must realize that nobody cares more about your investment than you do. </p> <p> Meet with several until you find one who makes you feel comfortable. In my course, How To Buy A Good Business At A Great Price, there is an entire chapter devoted to hiring and using the right broker, however, here are a few questions you should ask them including: </p> <ul> <li>How experienced are they?</li> <li>How many transactions have they been involved with?</li> <li>Have they ever owned their own business?</li> <li>Do they specialize in a particular business type?</li> <li>What references can they provide?</li> <li>How many clients are they working with presently?</li> <li>How many agents work in their office?</li> <li>Of the total number of businesses they've sold in the past year, how many were their own listings and how many belonged to other agents? (this will indicate their willingness to suggest businesses to you based upon your needs not simply because it's their listing)</li> </ul> <p> <strong>Your Presentation Will Determine Everything:</strong> </p> <p> Don't just call or email a broker inquiring about a particular listing. The point of your contact is to first determine how effectively they communicate and how eager they are for good buyer prospects. If they do not reply to your email or return your call within 24 hours, forget them (unless of course their voice mail indicates they're out of town). I've heard some brokers say they're too busy to return buyer emails. Some only reply after they get a second or third inquiry from a buyer. </p> <p> I don't care how flooded the market may be with buyers, or how inundated they are with buyer emails, there is no excuse for not getting back to people in a timely manner. </p> <p> <strong>Help Them To Help You:</strong> </p> <p> Once you begin to speak with a broker, if you feel good about their attitude, follow up and commentary, arrange to meet them. Keep in mind that you want them to keep an eye out for the hottest listings for you. To accomplish that you must convey several things to them: </p> <ul> <li>Show them you're serious. A business broker wants to be sure that if the right opportunity comes along; you'll be ready to buy!</li> <li>Prepare a laundry list of the types of businesses you're interested in purchasing</li> <li>Present them with your personal financial statement</li> <li>Tell them precisely how much money you have to invest</li> <li>Ask them for suggestions as to how you should conduct your search</li> <li>Ask them to show you how to best navigate the Internet</li> <li>Call them regularly, at least once a week.</li> <li>For the first couple of businesses that you locate on your own, ask them to check them out. See how long it takes for them to give you data or follow up with you. If it's more than a couple of days, use someone else.</li> </ul> <p> Much of this information may be confusing to a first time buyer. It's logical to think that brokers should be falling all over to get your business. Unfortunately, this is not the case. I have always found this a little bizarre. Typically, this is not the philosophy employed by most brokers. This is an inventory business. Brokers make money by having good listings. A lot can be said for that but, let's remember that every seller needs a buyer. If not, no deal! </p> <p> Business brokers have a role to play. Use them effectively and they can be a solid asset to help you complete the deal. Likewise, if they do not demonstrate a serious commitment to follow up on your requests, then get another broker. </p> <p> But remember, no matter how effective a broker is, when all is said and done, the task of buying the right business is ultimately, entirely in your hands! </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Financing-The-Deal.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> If you're thinking about buying a business, you'll be pleased to learn that financing the purchase is generally quite easy. In fact, it's far simpler to get the money you need to buy an existing business than it is for a start up. Most people simply don't realize how to do it. Don't get the wrong idea: you're not going to buy a business, at least a good one, with no money down; that only happens in the infomercials. </p> <p> Many prospective business buyers mistakenly believe that traditional lenders will welcome them with open arms when they present them with a business they're looking to acquire. Unfortunately, nothing can be farther from the truth. It still amazes me how the banks have got most people fooled. They run these great ad campaigns promoting themselves as “business/client friendly” but try to get them to lend you money to buy a business. It won't happen. </p> <p> It doesn't matter how experienced you are, or what your relationship is with them,. Unless you're prepared to collateralize the loan 100% with non-business and personal liquid assets, they aren't going to give you a penny. So don't waste your time seeing them. With the terms they offer, it's just not worth it. </p> <p> The landscape is pretty lopsided when it comes to how people buy small businesses. 90% of all transactions involve some financing. Only 10% are all cash deals. Even if you're inclined to pay all cash, my advice is not to do so, unless you get a very hefty price reduction: at least 20%. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Seller Financing</strong> </p> <p> The vast majority of small business acquisitions involve seller financing. In fact, it's estimated that over 80% include some for of financial aid from the former owner. While the percentages vary, it's generally 30% to 50% of the total purchase price. When you think about the situation, it makes perfect sense. First of all, by providing financing, the seller validates the viability of the business itself. Also, the seller is able to get the highest price possible by funding part of the acquisition. </p> <p> From a buyer's perspective, it serves to reinforce that the seller is also at risk in the transaction. It's a perfect mechanism to help ensure that what you've been told by the seller is true and accurate. It also serves as a mechanism to deal with situations that may arise later on that come about as a result of their actions where you may need the ability to offset their financing. </p> <ul> <li>While the terms vary for seller financing, you can expect to pay about 6-8% over four to five years. Plus, you have the ability to get far more creative with seller financing than any other: </li> <li>Negotiate a holiday from any payments for three-six months after closing </li> <li>Allow for the first year to be all principal </li> <li>Have the right to make lump sum payments several times a year towards the principal </li> <li>No prepayment penalty </li> <li>You can arrange for lower payments throughout the loan with a balloon payment down the road </li> <li>While you will have to sign personally, you will not have to personally collateralize the loan. The seller's lien is against the assets of the business. </li> </ul> <p> <strong>SBA Financing</strong> </p> <p> The Small Business Administration does NOT lend money for people to buy businesses. The SBA guarantees loans made by lenders (up to a certain amount) for small business acquisitions. There are both good and bad points to an SBA loan. </p> <ul> <li>The good news is that there is money available; up to $1,300,000 plus additional funding should it include real estate. </li> <li>The terms for repayment are favorable-up to 10 years and greater when real estate is involved </li> <li>When a business passes the SBA qualifications, you can be fairly confident that it is a solid business </li> <li>If you do not have at least 25% equity in your home, you may not have to fully collateralize the loan. </li> <li>Typically, they will finance 70-80% of the deal. </li> </ul> <p> You may be thinking, if you can make the acquisition with 20% down, why would you even think about anything else? Here's why: </p> <ul> <li>Most small businesses won't pass the SBA requirements </li> <li>The financial review is based upon the weakest of the past two or three year's tax returns </li> <li>You must have demonstrative experience in a business that is similar to the one you are considering </li> <li>They will want your house, life insurance policy (possibly) and your first-born as collateral. </li> <li>It can take up to 90 days to complete the entire process. </li> </ul> <p> Having said this, it is nevertheless advisable for you to explore the SBA option. You'll want to approach a “preferred SBA lender”. Most banks have this status. What it allows for is the banks to approve the loan on their own without having to submit everything to the SBA. If you choose this route be VERY specific in asking the lender for timelines to complete the transaction. </p> <p> <strong>So What's Your Best Bet?</strong> </p> <p> Unless you're buying a business for under $100,000 or getting an enormous price concession, don't pay cash. As for SBA approval, while their rigid guidelines will help to confirm the viability of a business, unless you're making an acquisition where you cannot finance the down payment, I tend to place this as my second choice. </p> <p> I am a huge believer in seller financing. It's like buying a used car with an extended warranty paid for by the prior owner. There's no substitute for the flexibility you can achieve, or the favorable terms, plus, more than anything else, it really forces the seller to share in the risk. If I'm going to buy someone else's business, I want to be darn sure that they've got a stake (or risk) in my success as well. </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Forget-The-Asking-Price.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> The asking price has nothing to do with the purchase price. Good negotiating skills and creative deal making is what gets a deal done! So, when looking at listings, don't get discouraged by what they're asking. After all, if you do this right, that's not what you're going to be paying...right? </p> <p> It's easy to understand the seller's desire to price a business higher than what the market will bear. </p> <p> <strong>Most sellers have an emotional attachment to their business</strong> </p> <p> Sellers generally do not receive any professional input when establishing their selling price. </p> <p> Every seller wants to get the most money in his or her pocket from the sale. </p> <p> The challenge for a potential buyer is to combat these issues with factual information in order to acquire the business and achieve the greatest possible return. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> Both buyers and sellers must realize that business valuations are very subjective. It's an art, not a science. Both parties must also realize that appropriate formulas for that particular size and type business must be applied. Of equal importance is that both parties must that a business is only worth what a buyer is willing to pay and what a seller is willing to accept. </p> <p> All of this sounds pretty basic and generic doesn't it? The difficulty of course is to come to a common dollar figure. I've always felt that every seller's value is too high and every buyer's calculation is too low, and somewhere in the middle lays an accurate valuation. </p> <p> <strong>This Is A Down Payment Driven Negotiation</strong> </p> <p> Sellers usually have a fixed figure of what they want to walk away with in their pocket. That is why the down payment is quite often more important than the actual purchase price. I have been involved in countless transactions on behalf of buyers when we've offered to meet the down payment requirements in exchange for a massive reduction in the total purchase price or have received incredible concessions on the balance of sale note (zero interest for one year, extended terms, etc.) </p> <p> When addressing the price in any negotiation, ask the seller to outline how they arrived at their price. If you do your research, you'll be able to demonstrate an abundance of reasons why they may be asking too much. Having said this, there are certain sellers, highly motivated ones, who price their business fairly. In these cases, work on getting other concession in the deal in exchange for meeting their price. </p> <p> Whenever you look at a business purchase, keep in mind that EVERYTHING is negotiable; especially the price. Use it as a barometer for the seller's thought process. Don't allow the asking price of any business within striking distance be a deterrent to you. If it's the right business for you, then solid negotiating skills can adjust any seller's thinking. </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Start-Off-The-Buying-Process-Right.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> There's a reason why buying a business is referred to as a "buying process". There are a substantial number of steps involved and much to consider, especially for anyone who has never bought one before. </p> <p> This is a major decision and investment. With so much at stake, it is crucial that you prepare yourself properly and educate yourself for this journey and take the necessary steps to be certain that you make all of the right decisions along the way. </p> <p> According to industry statistics, nine out of ten people who begin the search to buy a business, never complete a transaction. Perhaps the biggest reason for this dismal statistic is that most people simply do not realize how much is involved. </p> <p> Part of the challenge is that most are "first timers". Faced with having to make one crucial decision after another, they become overwhelmed and frustrated and soon they abort the project. </p> <p> Your approach must be different. </p> <p> As Thomas Edison once said: "There is always a way to do it better...find it!" </p> <p> <strong>This Will Take Time - Just Don't Take Forever:</strong> </p> <p> You can easily turn this entire buying process into an endless search. The average buyer spends 18 months looking. However, there's no reason why you shouldn't be able to complete the process in six months. If you're working full time, you will have to be disciplined in your search efforts. If buying a business is a goal you've set for this year, then block off at least ten hours per week to devote to this project. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Starting Off Right:</strong> </p> <p> It is estimated that 70% of all searches by buyers is now conducted via the Internet. A short time looking at business for sale websites and you'll soon realize that the number of available businesses is incredible. In fact, there are hundreds of thousands of them out there. It would be very easy to turn this into a never-ending search instead of a buying process. </p> <p> Instead of looking at endless business for sale listings trying to figure out which, if any are right, you must first identify what type of business is right for you and then focus your search accordingly. </p> <p> Take a good look at yourself. What are your strengths, weaknesses, likes and dislikes? Don't try to be something you're not. Most people simply don't know what's right for them and that's fine. If this is your predicament, sometimes it's best to start by ruling out all of the businesses you don't want. </p> <p> Next, consider your finances and focus solely upon those that make sense from an investment perspective. With these two criteria alone, you'll be able to whittle down the choices. </p> <p> <strong>Educate Yourself About This Process:</strong> </p> <p> Unless you have a wealth of experience buying businesses, it is critical that you acquire the necessary knowledge and information to make this decision. You are going to face an onslaught of decisions throughout this process. Having the knowledge will likely make the entire difference between buying the right business and the wrong one. </p> <p> Don't fool yourself into thinking that your attorney or CPA can make these decisions for you, although it is extremely important to find quality advice from professionals that specialize in business. It is incumbent upon you to take the time to learn what is involved and how to successfully navigate your way to your dream. Think of it this way: if you're going to invest your savings to buy a business; shouldn't you first invest the time to learn how to buy the right one? </p> <p> It's been proven over and over again that well-informed, properly prepared buyers acquire good businesses; the rest get sold lemons! </p> <p> This is one decision you must get right the first time! </p> <p> <strong>Organize Your Finances:</strong> </p> <p> You will definitely be required to produce a personal financial statement at some point. Get the details together right away. List all of your assets and liabilities and outline your net worth. Check your credit rating and rectify any erroneous information. You can obtain a free copy at www.freecreditreport.com </p> <p> <strong>Make Sure Your Family Is On Board:</strong> </p> <p> If you have a spouse/partner, be certain that together you discuss this project. It's no use going down the road with this if your spouse is not on board. You both have to see the dream. Business ownership is a time consuming commitment. The hours are long. You need their support. Keep them informed. Answer their questions. Get their input. Remember, even though this may be your business, they're in it too. </p> <p> <strong>Determine Your Investment Level:</strong> </p> <p> Determine with absolute certainty how much of your own cash you are prepared to invest. Forget any relatives who may have promised that they'll "back you." When the time comes to lay down the money, chances are they won't be around. </p> <p> Don't bother looking at businesses that are unaffordable. Over 90% of small business purchases involve seller financing. Generally, this is 40% - 50% of the purchase price. If you have $100,000 to invest, don't look at businesses that will sell for $500,000. It's OK to dream, but be realistic. </p> <p> Also, take the time to sit down with an SBA specialist to research all avenues for your financing. They provide all types of loans for entrepreneurs financing a business purchase. See www.sba.gov for further information. </p> <p> <strong>Intermediaries-Do You Need One?</strong> </p> <p> I am a firm believer in using a business broker to help you throughout the process. Keep in mind that the seller nearly always pays brokers and so their role from an advice point of view may be limited or even tainted. However, a good broker can, and will: </p> <ul> <li>provide you with access to a vast database of businesses for sale </li> <li>walk you through the valuation process </li> <li>provide you with comparable business valuations </li> <li>keep the deal moving along when obstacles are encountered </li> <li>be the bearer of bad news to the seller when necessary </li> <li>ensure all pertinent documents are assembled for the closing </li> </ul> <p> <strong>Your Six Steps To Success:</strong> </p> <p> Commit to a deadline for buying a business (not just "looking" for one). </p> <ol> <li>Set aside time everyday to work on this project. </li> <li>Organize your finances. </li> <li>Work on determining what type of business will thrive from your strengths and not suffer from your weaknesses. </li> <li>Seek professional advice from a qualified accountant, and attorney. </li> <li>Unless you have a wealth of experience buying businesses, then educate yourself about this process. Learn as much as you can. When it comes to investing in your future, you can never know too much! </li> </ol> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Negotiating-Your-Way-To-A-Great-Deal.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> When it comes to buying a business for sale, the most exciting and anxious moments can be experienced when the time arrives for you to enter into negotiations and make an offer. This part of the process completely handcuffs some individuals. There's really no need for this to happen. Just like every other aspect to the buying process, your preparation will determine your level; of success. </p> <p> Keep in mind that this should be an enjoyable and educational part of buying a business. There is much to be learned during this phase. You must also realize that negotiations will evolve, and so if you approach it with an open minded strategy instead of a "take it or leave it" philosophy, you will ultimately perform much better and produce a stronger deal. </p> <p> Likewise, you should also know this is the stage when many deals come apart and never recover. Most of the time this happens becomes of the inability of one or both parties to truly understand what it takes to get the other side to see their point. Or, a failure to address the other party's in a way that protects your specific interests. </p> <p> Negotiating involves many independent personality issues. When dealing with a seller you must bear in mind that this is a very emotional time for them. They are looking to sell a business that has benefited from their hard work and sweat. It can be quite a personal adjustment for many and they do become irrational. They often feel as though they are losing a part of themselves. Be sensitive to their emotions but never at the expense of fabricating a good deal for you. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> Your personality traits will come to light as well. Do your best to understand yourself. If for example, you're not a patient individual, then you must train yourself to avoid giving in on a certain point simply because you're tired of discussing it. You're better off to move on to something else and come back to it with the seller. </p> <p> <strong>Find Their "Pain", Soothe It and YOU Win!</strong> </p> <p> Everybody has their "hot buttons" in a deal. These are the points that in the mind of the buyer or seller, will make or break the deal. Once you identify them and can find a way to ease their concerns, you'll win. It works all the time. As an example, if the seller wants to be certain that they walk away from the deal with a specific amount of money in their pocket after broker commissions, paying debt, etc., then the down payment amount of the deal is clearly their "hot button". There are two ways to determine this; put in an offer and see where and how they counter or, ask them pointedly: "what's more important to you, the down payment amount or the purchase price?" </p> <p> The former method is usually more effective only because you can read into a variety of issues once you see the structure of a counter offer. However, asking them directly is a very accurate way to measure this as well. </p> <p> Getting back to our example, if it's the down payment then it's your turn to leverage the deal. Get as close as you can to their figure but, in exchange, get reduced interest rates on the balance of sale, extend the first payment to 60, 90 or 180 days after closing, negotiate the first year without interest, include the ability to payoff the note at anytime without penalty or to make periodic lump sum payments towards the principal. There are tons that you can do once you know their pain. </p> <p> An associate of mine who is an excellent negotiator always says that you should make, and get concessions. In other words, whenever you agree to something, get something in return. It always works. </p> <p> <strong>Preparation is The Key To Successful Negotiating</strong> </p> <p> The average purchase agreement has over fifty individual clauses to be negotiated. There is far more involved than simply agreeing upon the price, down payment and terms. You will have to deal with the specific assets to be included, non-compete clauses. Lease assignments, inspection period, adjustments, employee issues, liabilities, and on and on it goes. </p> <p> Think about the specific point to be negotiated, what your position is and what your rebuttal will be to the seller's comments. Play the "what if" game prior to sitting down to the table. </p> <p> <strong>Play "What If"</strong> </p> <p> Layout the various points giving consideration to what the short-term and long-term impact will be of your decision. As an example, if you negotiate finance terms with the seller that calls for one lump payment down the road (i.e. a "balloon payment") you must also consider that the business MUST be able to make that payment at that time. What if there's a cash crunch? What if you'd like to use the funds for something else at that time? What if…. you want to balance that with a straight-line finance program so that you'll know what your obligations are every month and you can budget accordingly. Every situation is different but again, consider the impact for today and down the road. </p> <p> <strong>Structuring The Offer - and Remember, It's YOUR Offer!</strong> </p> <p> The offer will, in most cases, begin the ball rolling on a potential acquisition. At times, this is the most effective way to gain insight into the guts of the business. You may also be dismayed to learn that you may in fact have to make an offer without all of the data that you would like to have. As an example, you may only gain access to the true financials after an accepted offer has been put forth. </p> <p> This is fine, no need to panic. You may be asking: "how can a formulate an offer without all of the information?". A goiod question in theory but this is not always reality. Consider the fact that sellers may be exposed to a plethora of buyers and not knowing which ones are serious, they may choose to holdback certain information. </p> <p> The offer you present is YOUR offer. You should be comfortable tabling any terms that YOU are comfortable with. Whatever the seller is "asking" is simply a guideline. Remember, it's an "asking price" not a purchase price. On the other hand, don't be ridiculous. Table something that forms the basis of a future meaningful conversation. Your offer is to a certain extent a tool to prod the seller into playing his or her hand. To get them to demonstrate their pain; the areas that are fundamental to the deal. From their perspective. </p> <p> There's nothing wrong if they are insulted. They may or may not be, and you can always refine your offer as the case may be. Additionally, a buyer's value of the business will certainly differ from a seller. That's where negotiation comes into play. There are no hard rules for what the terms of your offer should be. Each situation is different. While it's not advisable to make unlimited offers expecting one to catch on, you MUST make offers. Don't over engineer each potential acquisition. Once a business is of interest, you've done your homework, you determine that you would, under the right conditions like to buy the business, then get your offer in. </p> <p> There are standard offer to purchase agreements available to use. Every business broker will have one and so too will most attorneys. The one thing that you want to be certain of is to retain the ability to rescind your offer at your "sole and absolute discretion" if you determine that the business is not what it was represented to be. However, you cannot have an unlimited time frame to do so after acceptance of the offer. </p> <p> Generally, once an offer is accepted, you will have a certain number of days to perform the financial due diligence (often referred to as the "Inspection Period"). Allow yourself enough time to conduct this. The idea is that you must be able to retract the offer for any reason whatsoever right up to the last day of this due diligence period. </p> <p> There are some offer contracts that stipulate that you cannot retract your offer and get a refund of your deposit if the financials are within 5% of what has been presented. This is a ridiculous clause. Never agree to it. You must be able to get any monies returned, for any reason, through the due diligence phase. Conversely, if you sign off after the due diligence and then decide thereafter you do not wish to go through with the purchase, the seller is, in all fairness, entitled to your deposit. </p> <p> <strong>Lawyers and Accountants and Others - Everyone has an opinion</strong> </p> <p> Let's understand one thing: lawyers cannot negotiate your deal for you. They can certainly help to ensure your protection from potential liabilities but when it comes to negotiating the actual business deal, they are definitely NOT the ones to act on your behalf. I am certain that any attorney reading this column will disagree. That's OK. However, I have yet to meet more than a handful of attorneys who demonstrated any proficiency whatsoever in the actual art of negotiating the deal points of a small business acquisition. Most have never bought a business before themselves so even though they may have been involved in deals; it's not the same perspective. You'll want to hear their point, but their input should be reserved for the areas in which they are experts: the legal aspects of the deal. </p> <p> As for accountants, they too have their role: the input from a financial point of view and tax consequences. Leverage their expertise as well, but do not let them influence the actual business deal. </p> <p> <strong>The Last Word:</strong> </p> <p> Great negotiators are not born; they evolve. Your effectiveness will increase over time. Be creative. Be reasonable. Keep the end result of putting a good deal together in your mind. Don't lose patience. Don't be confrontational. If there is tough news to deliver, let your broker do it. After all, you will need the seller to provide you with training. </p> <p> Learn from each experience. Understand that there will be set backs; work though each. You cannot win every point. It's a give and take. Prioritize. Prepare. Win/win is not realistic. The objective is clear: you win, the seller is reasonably happy! </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Industry-Statistics-That-Every-Buyer-Needs-To-Know.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <ul> <li>90% of all of the people who begin the search to buy a business never complete a transaction Only 20% of all of the businesses listed for sale ever sell. </li> <li>Business brokers only account for 10% of all transactions. </li> </ul> <p> Why is it so important for you to know this? Let's look at each one individually: </p> <p> <strong>Why 90% Never Buy:</strong> </p> <p> Interestingly enough, a recent poll indicated that 50% of all Americans dream of owning a business. One would think that with such high numbers, far more people would be successful. After all, a 90% failure rate is abysmal. There are several factors why this happens. </p> <p> <strong>Reason # 1:</strong> Most people have never bought a business before. They enter this process completely unprepared. Even if they've had a successful career to this point, for most, nothing they've ever done adequately prepares them for what's involved in this process. It's even new to those who have been involved in corporate acquisitions because now, it's their money at stake. Clearly, a lack of education is the number one reason for failure. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> Today's business buyer will face an onslaught of life altering questions, situations, and decisions during the various stages of the buying process. Lacking the critical knowledge to make these decisions, they simply choose to abort the project rather than seek out materials to assist them. It's crazy, but most people will spend hours online trying to save a few bucks when booking a vacation, but will not invest any time learning how to buy the right one. To avoid this trap, educate yourself, before you start looking, and certainly before you invest your money. </p> <p> <strong>Reason # 2:</strong> Determining the right business is difficult for most people. With so much on the line, most get too scared to take a chance of buying the wrong one. After looking at many listings, and even visiting some sellers, most people cannot get comfortable with what type of business fits with their strengths. Don't spend your time searching endless business for sale listings, trying to figure out which, if any, may be right for you. Determine what business is right, and then find it (it's actually quite easy once you know how to do it). Whatever it is that you do best has to be the single most important driving factor of the revenue and profit of any business you consider purchasing. </p> <p> <strong>Reason # 3:</strong> A lack of expert advice. Not having access to expert and unbiased advise derails many people. Business brokers work for the seller. Family and friends, while generally supportive, usually lack experience in this area and so they too do not prove to be of much help. Plus, most are negative about the entire concept because they don't want to see you at risk. The average person cannot afford to hire priced consultants or representatives, since they want to allocate their available funds to the acquisition itself. Whatever it takes, be sure that you have someone with whom you can strategize and discuss various opportunities or have their input for the situations you will encounter. </p> <p> In summary, to avoid being a 90%er: </p> <ol> <li>Educate yourself </li> <li>Determine what business is right for you </li> <li>Affiliate yourself with someone who can provide you with expert advise </li> </ol> <p> <strong>Why 80% Of All Listings Don't Sell:</strong> </p> <p> There are too many listings. The Internet is swamped with business for sale listings. There are hundreds of thousands available. Websites scream about quantity: "20,000 businesses for sale...click here", but very few provide quality. Now, it's certainly not the website's fault. They are providing you with a service. Unfortunately, they cannot police the quality of information provided. Sellers and brokers list businesses, and provide information that is often inaccurate or misleading. Any seasoned buyer knows that they have to dig in and extract the information. You have to know what questions to ask, what to look for, and how to determine if what is being represented is true. </p> <p> Most businesses are overpriced. The sellers have no logical reason for their asking price outside of deciding that they want x amount. That may be fine for them, but that's no way to package a business for sale. There are additional unrealistic expectations by the sellers which cause only one in five to sell: they want all cash sales, they do not provide adequate books and records, the business may be in decline, and quite often, they do not disclose enough information for someone to make a logical decision. </p> <p> Every business has secrets. You need to learn everything the business before you buy it. When sellers misrepresent facts, or do not disclose all of the issues, when/if they arise, buyers become leery of continuing the negotiations. Again, it comes down to knowledge. </p> <p> <strong>Business Brokers Are Only Part Of The Process and A Big Part of The Problem:</strong> </p> <p> Sellers and Intermediaries have terrible follow up skills. Have you tried contacting any of the sellers? Most of the online listings are represented by business brokers. I don't know about you, but one of the biggest complaints I hear is that you cannot even get a reply to your inquiries. It's craziness. </p> <p> A business broker can be of use to buyers in the right scenario. Keep in mind that they almost always represent the seller. In all fairness, they are besieged with buyers so when you contact them, be compelling. Demonstrate that you're serios. Tell them exactly what you're looking for (if possible), how much you have to invest, and most importantly, that you're READY to buy immediately, if you find the right opportunity. </p> <p> Don't restrict your search to brokers. Once you have an idea of the type of business you want, consider doing a direct solicitation businesses that fit your needs. Send them a direct letter and let them know what it is that you're looking for. Get the word out to everyone: friends, family, professional contacts. You never know where the right lead will originate. </p> <p> <strong>Your Next Steps:</strong> </p> <p> Buying a business is something that anyone can achieve. Don't let this become a looking process. Put yourself in a position to buy. Above all, educate yourself. You cannot guess your way to success! With the right information and advice, you'll make all the right decisions. Don't allow yourself to become a 90%er! </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Buying-A-Retail-Business.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> If you're thinking about buying a retail business, there is a lot that you must consider outside of the basic nuts and bolts of the business. There's an old saying that retail success hinges on three factors: "location, location, location". While this is true to a large extent, it's not always the case. When looking at retail businesses, you're number one goal must be to determine what "drives" the customers to the store. </p> <p> <strong>What Brings In The Customers?</strong> </p> <p> <strong>Location:</strong> </p> <p> If the business relies on its location then you'll want to be certain: </p> <ul> <li>The lease in place is transferable/assignable and is long-term. You must negotiate additional options to give yourself at least ten years of contract length. </li> <li>Is there an anchor tenant that brings customers to the locale? If so, then you'll want to know how long their lease is, and if they have any plans to relocate in the near-term. Also, be certain that this anchor tenant is solid financially- think about all the poor merchants who relied on K-Mart and General Cinema traffic. The stores surrounding these faced disastrous situations when they closed numerous locations. </li> <li>Is there any planned road construction that can impact the business? Typically, major roads undergo some form of construction every ten years or so. Visit the city hall/planning office to see when the last work was done and what plans if any may be in place. </li> <li>Above all, think about every possible situation that can impact the location and investigate it thoroughly. </li> </ul> <p> <strong>Product Offering:</strong> </p> <p> If the operation is driven by its product offering you'll want to be certain that you're capable of continuing to identify the types of products that customers want. If this function is performed by an employee/buyer, you may want to have them own a stake in the business as well. However, if you're not 100% comfortable with performing this function yourself, or are not the type that has an "eye" for product, you may not want to go down this road. </p> <p> <strong>Marketing:</strong> </p> <p> For some retail businesses, it's the marketing that brings in the customers, and location takes a back seat. These are destination locations. Furniture and specialty retailers are typical examples. They spend a fortune on advertising and promotion, and they get the people to the stores. Here again, if this is what drives the business then you'll want to be certain that your greatest skill lies in this area. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Avoid Working 100 Hours Per Week!</strong> </p> <p> The biggest issue that I discuss with clients who want to become retail merchants is for them to get a true grasp upon the actual workload that's required in this environment. Retail hours can be hell, especially if you're in a mall where you're required to maintain certain hours. I meet far too many retailers who seem to work seven days a week It does not have to be this way, as long as you set up the business to run properly without you having to be there every minute. </p> <p> Hire great people! Getting good employees is an ongoing challenge. You shouldn't be afraid to churn through employees until you get the right ones. Pay them well. Train them effectively. Put policies and procedures in place that allows them to get up to speed quickly. Work towards having a key manager in place that can relieve you of some of the daily burdens. Never, ever tolerate stealing. Hire a mystery shopping company to do an assessment at least once a year. It's a great way to learn what the customers are experiencing. </p> <p> Implement the most effective technology you can afford. There are tremendous systems available today for point of sale tracking, inventory management, accounting modules, etc. Systematize everything so that you're not beholden to being there every minute. One program that I've seen quite a bit of is RetailPro. It appears to be very robust and cost effective. It's well worth checking out. There are many others available as well. </p> <p> <strong>Growing The Business</strong> </p> <p> If you're agenda is to make a lot of money, then it's hard to do so with one location. Growth usually requires expansion. Many times however, one successful location does not translate well into a second successful one. This usually happens because the owners cannot duplicate the business effectively. That's why systems are crucial. It's also why you need to have a crystal clear view of what brings in the customers and then be able to duplicate it effectively. </p> <p> The other reason why this happens is that the owner is the business and then ends up trying to be effective in two location. Guess what? It doesn't work! Build the first one. Get the recipe in place that includes a top notch manager. Then, you can decide to either run the second one yourself or put in the manager from the existing location. </p> <p> If you're running a large sized operation, you may want to consider opening a second one that may be a bit smaller, with an option to expand. This doesn't always work, but should be considered. </p> <p> Certainly when thinking about buying a retail operation, and growth is your objective, you have to decide if it's even a possibility, or is it too specialized? If you buy a scuba diving store that's on the ocean, well you cannot open up a second location in a rural area and expect similar results. The business itself may be restrictive from a growth perspective. </p> <p> <strong>What's A Retail Business Worth?</strong> </p> <p> Just like any other business resale, there are no "golden rules" to establish the value of a retail business. The main issue must always be how much the business is making. This is the key component that must dictate the purchase price. Inventory is one element that clouds many retail business purchases. You need the inventory to drive revenue. It may or may not be treated separately in the price. Notwithstanding this, the combination of the profit and inventory acquisition cannot over inflate the price to the point where it's not a feasible investment. Liquor stores for example may sell at a reduced multiple of earnings, but inventory is priced and purchased separately. Conversely, a clothing retailer may be sold at one fixed amount and includes all of the assets. </p> <p> When it comes to inventory, your investigation must conclude if the product is saleable, and in what time frame. Specialty retailers usually have a ton of obsolete or slower selling product. If there's old inventory it must be discounted heavily in the valuation. </p> <p> <strong>What To Do Next?</strong> </p> <p> Lots of people have made lots of money operating retail businesses. If you're cut out for it, you can also be successful. But, you'll want to weigh all of the factors to be certain that this type of business fits both your strengths and the lifestyle you want. </p> <p> In most regions, there are always an abundance of retail businesses listed for sale and some excellent local websites available to find them. You should check out the major business for sale websites, the local business broker sites, keep an eye on the classifieds as many retailers attempt to sell their businesses privately. Often times, a local merchant will foolishly hire a commercial real estate agent to sell their business and so you should review the multiple listing sites as well. Lastly, you may want to think about businesses that you patronize that you feel have growth potential. Then, simply approach the owner to discuss it. </p> <p> While many people think that it all comes down to location, the savvy retail business buyer knows there's far more to consider in the equation. </p> <p> For many, owning a business is a dream. For some, it will become reality. Your fate is in your hands. Whether you choose a start-up, franchise, or existing business, it can be done. It's up to you. Currently, the market is in your favor and the time is right, for you to finally put yourself in a position to be your own boss. </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Run-Your-Business-Like-You-Have-to-Sell-It.aspx <p><em>Author's note: While this article was written mostly for business owners, you will learn some of the pitfalls and warning signs to look out for with businesses you may consider purchasing. As well, it will provide you with some benchmarks to evaluate how to implement these suggestions once you own the business.</em></p> <p>Industry statistics indicate that the average small business changes hands every five years or so. If you-re thinking about buying a business, or own one now, the day will come (faster than you think), when you-ll want to sell.</p> <p>By positioning your business to operate in a certain manner staring today, you-ll not only sell it for more, you-ll actually make more money between now and then.</p> <p>The key to selling anything is to make it easy for someone to buy. This is especially true when it comes to a business. There are certain things that have an enormous impact upon the eventual price you will obtain.</p> <p><strong>A Problem Later Is A Problem Now:</strong></p> <p>If there-s something in your business that would turn off a potential buyer, chances are it-s also hurting your business today. Typical examples are high customer concentration, the possibility of losing a key supplier or employee, contingent liabilities, past claims, leases due to expire, inaccurate inventory, poor monitoring systems, etc.</p> <p>While trying to build your business, even if you have no plans to sell it, look at it through the eyes of a possible buyer. By simply identifying possible issues, and fixing them, your business will improve immediately. Likewise, these matters will not come back to haunt. Don-t think they-ll disappear, or a savvy buyer won-t uncover them. They-ll stick around and hurt you today and down the road.</p> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p><strong>Keep Good Books and Records</strong></p> <p>Any business broker will tell you that a business with super clean books gets the most action, and usually the purchase price is very close to the asking price. When the time comes to sell, a business with clean books and records will generally selling in the shortest time frame possible. In fact, this is usually the number one reason why deals fall apart (outside of major, sudden surprises). </p> <p>In operating your business today, keeping great books will allow you to always have a true grasp on your cash flow and the ability to properly analyze expense and other activity.</p> <p><strong>Systems, Policies and Procedures:</strong></p> <p>I once read that a company-s manuals, policies and procedures should be explained in such a way that the lowest level employee can understand them. If you incorporate a methodology to deal with every possible scenario that comes up, and modify it continuously, think about the positive impact that can have when the time comes to train a new employee, expand the office, or open a new location. Instead of wasting endless hours getting people up to speed, all you need to do is 'throw the book at them'.</p> <p>Similarly, every buyer is concerned that too much of the business may be new to them or that they won-t ever be able to grasp the guts of the business. With top notch manuals, systems and procedures, this concern will be completely eliminated so they can focus on replacing you effectively.</p> <p><strong>What happens if you get hit by a cement truck tomorrow?</strong></p> <p>Can anyone step in and run the business? If they can-t, and something happens to you, the business will go down the tubes quickly. Not only will they forfeit your income, they certainly won-t be able to sell it. So, if you are you 'the business', better start working on your systems, or be certain that you always look both ways before your cross the street!</p> <p>Unless an individual comes from a like industry, or is one of your current employees or partners, they will be worried about the transfer of your knowledge. Regardless of how simple your business model may be, training a new owner to do what you do everyday is crucial. The majority of people buy businesses that are in new industries (I don-t necessarily agree, but that-s the fact). As they go deeper into evaluating your business, they usually get nervous by thinking about all of the things they don-t know. If you don-t have a simple mechanism to show the new owner how to get up to speed quickly, or if they fail because your job role was too overwhelming for them, you too can suffer if you-ve participated in the financing.</p> <p><strong>Unreported Income – You Can't Suck and Blow!</strong></p> <p>If you-re in a business where you remove 'cash' and don-t report it to the IRS, well of course, that-s your business, and your risk. The problem if you intend on selling the business, is that you-re only cheating yourself. Some people claim that as long as you can 'prove' the figures you-ll be fine but it-s not that simple. You may not want to prove the figures. If you-ve hidden it from the IRS, do you really want a complete stranger knowing about your 'dirty little secrets'? </p> <p>Furthermore, for every dollar you steal, you-re probably saving thirty cents or so on taxes. On $30,000 a year, over for five years, you-ve saved yourself a grand total of $45,000 plus payroll taxes. Now, if you take the same $30,000 per year, and record it properly on your books, the total amount will be added back to the total figure that a buyer will use to value the business, including the payroll taxes. Here-s the kicker: businesses sell at a multiple. That same $30,000, will have a two-three times multiplier attached to it. On the high side that $30,000 will increase the value by $90,000. That-s double what you saved by not reporting it.</p> <p>From an operational standpoint, that same money kept in the business can be used for all kinds of marketing or business building. Use it right, the money can have a significant impact on the business, which again will result in more money while you own it, and two to three times more when you sell it. Sure 'cash' is sexy, but in reality, it-s nothing more than a temporarily high, just like a 'one night stand.</p> <p>Well all is said and done, if you approach the daily running of your business like you have to sell it tomorrow, you-ll find yourself implementing strategies that will immediately improve your business, and will pay you multiple dividends down the road when the day arrives to sell it.</p> <p>For many, owning a business is a dream. For some, it will become reality. Your fate is in your hands. Whether you choose a start-up, franchise, or existing business, it can be done. It-s up to you. Currently, the market is in your favor and the time is right, for you to finally put yourself in a position to be your own boss.</p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Buying-an-Internet-Business.aspx <p>Personally, I love the online business model. My company now does business in over 50 countries. The business has no inventory, no receivables and a handful of employees; we outsource nearly every key function except customer service and support. I have absolutely no technical expertise. The entire business is automated and it's incredibly profitable. An ideal business model isn't it?</p> <p>Perhaps the best part about an online venture is that you can get into one quickly and inexpensively whether you buy an existing one or start one from scratch. Although multiples for successful online ventures are * far greater than most bricks and mortar businesses because of many of the factors you'll read about here. Additionally, because an online business can be run from anywhere at anytime, it's an ideal business to have if you're not yet ready to take the full plunge into your own business or you like to travel, work remotely or casually (it's 3:00 pm now and I'm in Australia with my family on vacation looking at the famous Sydney Harbor and Opera House at this very minute…and, even better, people are buying our program right now...gotta love it!)</p> <p>Don't be mislead thinking its all fun and games. But, it's the kind of business that if you put in the effort upfront, and automate every aspect of it, it will pay enormous ongoing dividends relative to the time expenditure. Right now, it takes me about 90 minutes maximum each day to operate the business, if at all.</p> <p>If you want to buy an existing profitable venture, keep in mind that the multiples may be higher than traditional small business valuations since there are so many great benefits to them. You should also know that the financials of most pure Internet businesses are generally simpler to investigate because there's generally no cash sales, and almost all of the transactions are via credit card.</p> <p>Likewise, if you decide to start one from scratch, you can build a website, and begin initially marketing for just a few thousand dollars.</p> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p>Here's what you need to be aware of when buying an existing online business:</p> <ul> <li>Online businesses go far beyond building a website. It's not an: "if I build it they will come" business. Sure you can have clients worldwide but they have to find you before they can buy your goods and services. If not, it would be like Wal-Mart opening a new store with more products at deeper discounts then locating it ten miles offshore in the ocean. Even if they offered 50% discount of every item, nobody will make the trip to the store. You need to figure out how to get people to the store (the website). In other words, you need to market the business and figure out how to get the store to the land where all the people are (translation – how to get people to your site). </li> <li>Niche products work great. </li> <li>You'll need to do extensive research to learn about the competition, the industry, products, competition, etc. It's not as easy as finding this out about a local bricks and mortar businesses. </li> <li>You need a bullet proof non-compete clause with the seller since it's so easy for them to open up a competing business in another name, country, etc. That is why you MUST have a large balance of sale as part of the deal. </li> <li>Make sure that any products or services being sold if not proprietary are going to be available to you from the various suppliers. </li> <li>If the business relies on email marketing campaigns, investigate how they get their lists and prospects. No matter how great email marketing is, spam is out of control, it will eventually become highly regulated with massive penalties for offenders. </li> <li>Stay away from fads, or any products that may become subject to government intervention or stricter controls such as pharmaceuticals. </li> <li>Verify any potential liabilities, guarantees, etc that may have been offered in the past. Get copies of old site versions from the owner. Some sites began by offering 1, 2 or 5 year guarantees on their product. These claims can come back to haunt you. You'll need the seller to indemnify you from any future claims or, you need to have a mechanism to offset any claims against the balance of sale. </li> <li>Get detailed listings of all individuals who have access to the site's backend or passwords for accounts. In fact, make certain that you change all passwords once you take over. </li> <li>If the seller developed the site, bring in a tech savvy individual to review the actual programming. Quite often the site evolved through the seller's design and he/she may have kept adding little bits of programming to it. While it may make sense to them, it may very well be a "plate of spaghetti" to someone else and can never be figured out. </li> <li>Get copies and ownership to all source code for the site. </li> <li>Meet with the webmaster and any other people who work on the site if you won't be doing the work yourself and make certain that the relationship will continue. </li> <li>Investigate the credit card processing. You might have to put up significant personal guarantees with the merchant bank to process credit cards. In fact, you may want to check this out in the very early stages of your investigation.</li> </ul> <p>You can locate online businesses for sale at various online businesses for sale databases and there's a ton of them on eBay, but many seem like scams to me. There are other websites that specialize in Internet businesses for sale. Plus, most online business for sale databases have an online category.</p> <p>It's been said that the best business is the world is everybody else's. However, an online venture, when set up and run properly, is without question, the best business model around. The key of course is to provide a profitable product or service in a sustainable business.</p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/The-Best-Gift-To-Buy-For-Yourself-A-Business.aspx <p>It's amazing how we see an immediate increase in our business right after the December holidays and the day after every long weekend. The former may be many "New Year's Resolutioners" as I call them, and the latter is because most people dread the thought of going back to their job after an extended weekend. So, let's pretend it's the holidays right now, and sing to yourself: "All I want for Christmas is a...business of my own..."</p> <p>If you have any desire to be in business for yourself, then now's the time to make your move! In fact, there has never been a better time to take that step. So this year, buy yourself the greatest gift of all – a business of your own!</p> <p>Over the past year, I've met and spoken with thousands of people worldwide who have reached the point where they've said: "enough is enough!" Most hate their jobs. They are terribly uncertain about the future. They're tired of busting their butt with little or no thanks and they've finally realized that controlling their own destiny is what they truly want from their career.</p> <p>The market itself for entrepreneur is exploding, regardless of what the so-called "experts" may say about the economy. In prior times, when mass layoffs took place, displaced workers simply adopted the strategy of looking for another job. Unfortunately, jobs are not plentiful today. If you've spent anytime looking for a job, you know how frustrating, humiliating and time-consuming the process can be, with no results.</p> <p>If one of the lucky ones to still be employed, instead of waiting around for your company to let you go because they had one bad quarter and now want to save their way ahead at your expense, take control of your future and fire your boss!! This is going to be YOUR year!</p> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p>I can assure you from my own personal experience, that if you have the desire to be your own boss; it's something that is within your reach. Moreover, with a few right moves, you'll accomplish your goal within six months or so.</p> <p><strong>The Best Investment You Will Ever Make</strong></p> <p>When buying a business, you can and should expect to make at least 25% – 33% return on your cash investment. Plus, you will have the opportunity to produce a steady personal cash flow, and you'll be building value that will pay you handsomely when the day arrives to sell the business.</p> <p>Many people wrongly believe that acquiring a business is a risky investment. Personally, I think that putting your fate in someone else's hands has a heck of a lot more risk to it. While there is some inherent risk buying a business, much, if not all, can be eliminated simply by doing your research beforehand on any business you consider purchasing.</p> <p><strong>Do Something</strong></p> <p>It's funny, but "The New Year's Resolutioners"are typically people who said the same thing last year and most probably will do so again next holiday season. My father in law has a better name for them: he calls them: "gonnas"…they're ‘gonna' do this, they're ‘gonna' do that, yet another year passes and they do nothing.</p> <p>Don't join that crowd; it's a one-way ticket nowhere. You can set everything in place to right now and with a few simple steps, you'll be on your way:</p> <p><strong>Step One:</strong> Educate Yourself – no matter what type of career you have, nothing you've ever done has prepared you for this process. Even if you're in charge of corporate acquisitions, you're now playing with your money and future and it's a whole different mindset. Many people wrongly confuse their confidence to run a business with their inexperience to buy a good business. As such, devour as much information as possible about buying a business. Personally, I am biased about how you can become a business buying expert and so please excuse this shameless plug for my course How To Buy A Good Business At A Great Price© at http://www.diomo.com . Truthfully, it's an incredible tool so check it out. Regardless, you must get educated!</p> <p><strong>Step Two:</strong> Take the time to properly assess your strengths and weaknesses. Take an honest inventory of yourself. Your goal is to buy the right business. The guiding principal is this: "whatever it is that you do best must be the single most important driving factor of any business you consider purchasing". Don't try to be something you're not. It's fine to learn a new skill when you're working for someone, on their dime, but not at your expense.</p> <p><strong>Step Three:</strong> Put together your "laundry list" of what you want in a business. Be specific. Don't say: "I want it to make a lot of money". Rather identify the characteristics it must have. For me it's simple. Any business I buy must be: sales/marketing driven, I want an element of exclusivity (either in product or territory), it must have high margins, I don't want to sell a product or service based on price, and there must be demand for the product or service the business offers (creating demand is way too expensive). Assemble your five-point list, and do not stray from it. This must be the litmus test that you put every business through. If any business does not subscribe to your rules – don't buy it!</p> <p><strong>Step Four:</strong> Get the word out – you may not want to tell your boss, but let everyone else in your circle know your plans. This serves two purposes: it will generate leads, and it will put a little pressure on you to make it happen.</p> <p><strong>Step Five:</strong> Set A Timeline: Sticking to a timeline is critical. Each year seems to go faster than the last one. Don't allow yourself to be in the same position next year. Six months from today you should be in your own business. Take a blank sheet of paper and write on it with a big black marker "I'm buying a business in 2004". Post it in a place where you will see it every morning, and if possible, throughout each day. I would even suggest that you make it the personalized message on your cellular phone.</p> <p><strong>Step Six:</strong> Above all, get into the game. Search businesses for sale listings. Don't get overly analytical in the early stages. Arrange meetings at potential businesses. Don't be afraid to make offers.</p> <p><strong>Step Seven:</strong> Enjoy your success!</p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Why-Buy-an-Existing-Business.aspx <div class="sep"> <hr /> </div> <p> <img class="articleUserPhoto" src="http://blog.acquireo.com/wp-content/themes/mimbo2.2/images/richard-parker.jpg" border="0" /> <a href="http://www.diomo.com/about.html?m_a=1240" target="_blank">Richard Parker</a> is the author of <a href="http://www.diomo.com/?m_a=1240" target="_blank">How To Buy A Good Business At A Great Price</a>. This best-selling program contains over <a href="http://www.diomo.com/view.html?m_a=1240" target="_blank">500 pages</a> covering every stage of the business-buying process. Visit <a href="http://www.diomo.com/?m_a=1240" target="_blank">www.diomo.com</a>. </p> <div class="sep"> <hr /> </div> <p> With so many options available to you, the question will become which vein of the business ownership arena should you pursue? Between franchises, existing businesses, start-ups, home based businesses and MLM's, it does become a bit overwhelming. When reviewing all of the possibilities you have to decide what will work best for you however, your chances of success are clearly best when you buy an existing business or franchise resale for many of reasons. With any new business you have two challenges: developing the product or service and then seeing what if anything, people are willing to pay you for it. </p> <p> Regardless of a company's past performance, an existing business or franchise will, at the very least, have a history from which you will be able to make certain decisions. Even if the company was not profitable in the past, your strengths may lend themselves perfectly to turning it into a viable venture. Furthermore, you have the ability to verify what the company did in the past that resulted in the current status of the operation. </p> <p> <strong>Ease of Investigation</strong> </p> <p> In order to buy the right business or franchise, you will be required to do a thorough investigation of its past activities, its operations, its current status, the competition, the industry and its future potential. You will accumulate this information and then you will have to determine how it measures up with you at the helm. Clearly, this information gathering will be substantially more accurate and easier to obtain when dealing with an existing business or franchise, as you will have the resources available from which to get the details. </p> <p>   </p> <center> <small>article continues below</small> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> <strong>Infrastructure</strong> </p> <p> You will have the benefit of purchasing a company that has an infrastructure including customers, suppliers, employees, equipment and systems. This will allow you to focus on building the business as opposed to a start up or new franchise where everything begins at ground zero. </p> <p> <strong>Purchase Price Differences</strong> </p> <p> Buying an existing business or franchise does not mean that it will cost you more. In fact, many times it's less expensive than building a new franchised location or launching a start-up. Even in those cases where it may require a premium, at least you know what you are getting if you investigate it properly. With a new franchise, a good Master Franchiser will do demographic studies on population, drive by traffic, potential customer base and a whole series of studies that will indicate that "theoretically' the business should do well. However, the only thing they cannot guarantee either by law or in reality is whether or not you will be successful. Also, new locations can take a year or more to build. You can avoid all of this when buying a resale. </p> <p> <strong>Flexibility in Negotiating</strong> </p> <p> You will have far more flexibility when negotiating the purchase of an existing business or franchise versus any other options available; it's not even close! Everything from the purchase price to financing is open to negotiation. Doesn't it make more sense to put yourself into an environment where you have the greatest number of options available? </p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/The-First-Steps-After-You-Buy-A-Business.aspx <p>It's One Thing to Buy A Business, Now You Have To Run It! The first 90 days after you close on a business purchase will prove to be the most critical time in you new venture's short-term future. There are several key factors that done right will set the foundation for your success. It is very important for you to lay out your plan for post closing before you take over so as to ensure the smoothest transition possible.</p> <p><strong>Don't Change Anything...Yet!</strong></p> <p>Unless you have an intimate knowledge of the business and the industry, much, if not everything will be new to you. While it is normal for you to jump in full steam ahead and implement many changes that you've thought about, the best thing that you can do is nothing, at least at the very beginning.. That's right, no major changes at all, at least for now. Most businesses experience a downturn in the first three to six months after a new owner takes over. Don't panic, it can happen. However, if you avoid any substantial changes, things should rollover effectively.</p> <p>Since so much is new, it would be impossible for you to set forth any policies or procedures that make sense. What you want to do is to first learn the business, who are the customers, what do they want and expect, understand the employees and determine their role and contribution to the business. Avoid drastic changes. The old saying that you've got to learn before you can earn is most applicable in this situation.</p> <p>Get in, get comfortable, get smart and then get going.</p> <p><strong>The Seller's Role</strong></p> <p>Typically, there will be a period immediately after the acquisition where the former owner will be around for a transition period. This varies from deal to deal. In some cases, it can be as short as a couple of weeks while others may involve a long-term training period and even an ongoing consultation/employment relationship. This can be a difficult time. Regardless of the length of the relationship, keep in mind that the seller will still have a very strong attachment to the business and the employees will take some time getting used to a new boss.</p> <p>Interestingly enough, no seller has ever made it through the entire training period for any business I've acquired. Sure they have a role to offer some insights but I've always found them to be more of a hindrance than an asset. Of course, if it's a complicated business then this may not always hold true. If the business is far too difficult for you to take over, or, if it relies on them completely to succeed, you probably shouldn't buy it.</p> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p>Pick their brains as best you can. Always keep the relationship friendly; you never know when you'll need them and they can remain a good source for brainstorming down the road. However, this is now your business, you're the new boss, it's your show, and it's time to get the show on the road.</p> <p>Prepare a comprehensive list of everything that you want them to cover during training. This includes everything from how to operate the alarm systems down to providing you with their evaluation of the employees. One subject that should be covered at length is to ask them what they would do in your situation. Ask them to outline what their business plan would like and what things that they feel you should explore as the new owner.</p> <p>For the first couple of weeks, let them keep their office as is. Set yourself up alongside them as watch what it is that they do each day. Observe the flow of communication with clients, employees, etc. Continually ask questions. Do not simply allow them to do their job as they did before; you need answers so question everything.</p> <p><strong>Meeting with Employees</strong></p> <p>Set up a meeting the first day with all the employees. These people are naturally going to be nervous about you, their job and their future. Most people abhor change so be sympathetic to their situation. No matter what plans you have, let them know:</p> <ul> <li>There are no major changes planned </li> <li>You are very optimistic about the business' future </li> <li>Each one of them has a role to plan </li> <li>You're eager to build the business </li> <li>You are available to speak to them at any time regarding any concerns they have </li> <li>They are expected to contribute to the success of the business. </li> <li>You're counting on their support to build the business </li> <li>You realize that there will be a transition period and it may take some time for them to get used to you and vice versa.</li> </ul> <p>The objective of the first meeting is to set their minds at ease. Open up the floor to questions. Do not worry if not a single person has a question; they're nervous so don't interpret this as anything other than a demonstration of their anxiety. Don't feel pressured to reply to anything that you haven't thought through and never make any promises simply to win them over.</p> <p>End the meeting by asking each one of them to prepare a report, due within one week, that outlines: what they believe can be done to make them more effective at their job and second, if they were the new owner what suggestions they would have for the overall business. Tell them that all reports will be kept confident ional, that you will review it with them individually and that you expect everyone to have it submitted on a timely manner (a note here: if any of them are late, you can expect that person to be a trouble employee and chances are they will not last).</p> <p><strong>It's Time To Get Busy!</strong></p> <p>So you've got the transition period completed, the employees are feeling positive, you've reviewed their reports, it's now time to get down to business.</p> <p><strong>Step One:</strong> Make the Place Your Own</p> <p>Get the place cleaned up. Throw on a new coat of bright paint, have everyone clean up their work areas, remove old files and throw out unwanted furniture, old posters, etc. Give the place a new look. You do not have to spend much money at all. Set the standard by keeping your work area spotless. There's no need to be a mess no matter what your prior work habits were. You cannot expect any employee to do anything different than you so if you want to run a well oiled, organized business, it all starts with you.</p> <p><strong>Step Two:</strong> Learn the Business and What Oils the Engine</p> <p>Perhaps the most critical thing you can do in your initial tenure is to really learn the guts of the business. The answers are readily available but you have to ask the questions. Make it your goal to speak with customers, suppliers, employees, competitors and anyone else associated with the business to get a true picture about the business and the industry and where you fit in. Generally, the customers have the answers and quite often businesses do an awful job of satisfying the clients. They may think they do but the truth is that most don't. As such, dig into your customer's wants so that you position the business as a place where they want to do business.</p> <p>Your employees are a pivotal link in this process. Get them involved. They will be far more effective carrying out plans they have helped develop than they will executing strategies that have been dumped on them.</p> <p>Based upon employee reports and fact finding, compile a detailed listing of everything you want to do in the business, eventually. You can't do it overnight. However, by noting these potential items, your business plan will begin to marinate. Work at organizing your list by the area within the business (sales, marketing, accounting, operations, etc.) and keep it up to date.</p> <p>Develop a 30/60/90 day plan for each specific area of the business. Follow up diligently to ensure timelines are respected. Change does not have to be monumental or drastic; it's improvement that you're striving to achieve.</p> <p><strong>Step Three:</strong> Sell Off Useless Assets</p> <p>If the business has acquired useless inventory, equipment, or any other obsolete asset, then get rid of it. There's no need to keep any assets around that take up space and do not produce revenue.</p> <p><strong>Step Four:</strong> The Marketing Plan</p> <p>In concern with step two, assemble the marketing plan for the business. Keep in mind that market is without a doubt the simplest thing to do in a business and something that is made overly complicated by most companies. Marketing is simply a matter of finding out what the customers want, and then giving it to them at terms that make sense to you and them. End of story. You may buy a business that excels at marketing which is great. However, marketing also requires continuous testing and measuring. So even if they're great at it, make certain that you set forth additional strategies within this discipline.</p> <p><strong>Step Five:</strong> The Business Plan</p> <p>Personally, I think most business plans stink and are completely unrealistic. Companies put them together to make themselves feel good and generally little of it ever gets executed. On the other hand, it can prove to be an invaluable document and a blue print for success, Therefore, it is needed but must be done correctly. A business plan does not have to be a long document with unrelated information and useless pie-charts and graphs. On the contrary. Done right and it can be a bullet point description of:</p> <p>Everything you want to do * Who is going to do it * How it's going to get done * When is it going to be completed </p> <p>Now you're set. You've got a solid understanding of the business. You know what the customers want. You have a plan to deliver it. Your employees are sold on you; they've contributed to the company's plan. Focus like a laser beam and execute. Measure absolutely everything. Strive to get better in every way and everyday! If you constantly think about how you can make your business bigger, better and faster then you cannot help but be successful!</p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/Businesses-That-Sell-for-Massive-Premiums.aspx <p>A study was done recently to determine how business valuations have evolved over the years and it came as no surprise to me that in the past twenty years, small businesses have typically sold for around two times the seller's discretionary income total. The same holds true today yet a certain segment of the market commands an enormous multiple regardless of the business' size.</p> <p>I've always said that there are certain fundamentals that any business can have which will increase its value when the time comes to sell. These include:</p> <ul> <li>Clean books and records </li> <li>A reasonable selling price </li> <li>Good terms including seller financing </li> <li>An easy transition period to a new owner </li> <li>Non specialized skills required to run the business</li> </ul> <p>These are all things that any seller can work towards implementing so that they ultimately get a higher price. However; there are certain components that some businesses have can dramatically increase the multiple to five, seven and even ten times as opposed to the general 1-3 times valuation.</p> <p>The businesses today that command these multiples include: marinas, alarm companies and storage businesses. There's also been an inflated market created by medical related businesses although this may be more so because buyers have a delusional view of this industry segment. Instead, let's focus upon why these other businesses sell for such high multiples:</p> <p> <center> <small>article continues below</small><br> <script language=JavaScript src=http://adserver.acquireo.com/abm.asp?z=15></script><br><br> </center> </p> <p><strong>Recurring Revenue:</strong></p> <p>Any business that has a built in revenue base will command a higher selling price. It's a whole lot more enticing for a buyer to know that they will have and immediate and locked in long-term revenue stream the day they get the keys to the business.</p> <p>One of the most challenging aspects to business is when you have to "go into business everyday". When you have a company whereby there are contracts in place, written or verbal that provide you with a base income every month, it's a huge benefit. Marinas, storage companies, alarm monitoring companies, service businesses such as water and coffee suppliers to offices, equipment maintenance companies with annual customer contracts, all fit this bill.</p> <p>The concept of recurring revenue is not only attractive; it just makes good business sense. It's far easier to expand a business knowing that you have a base to work from everyday. It's also a lot easier to sell additional products or services to a customer who is already buying from you.</p> <p><strong>"Buy land - they're not building any more" – Will Rogers</strong></p> <p>Perhaps this statement explains the gold rush we've been experiencing in the sate of Florida. Investors and developers are making gobs of money throughout the state, and have been for about fifteen years and there is no let up in sight. Now, it's not an easy game to get into but think about the offshoots to this concept and marinas are a perfect segment that is taking advantage of this scenario. Furthermore, there is a moratorium in some parts on building new marinas. These factors are pushing the prices up dramatically. A marina that owns the land is commanding up to ten times the Net Operating Income while ones on leased land, with a long-term lease, are still getting 4-6 times the NOI. These are insane numbers when compared to other businesses for sale.</p> <p><strong>Limited Specialized Knowledge</strong></p> <p>Any business where a new owner with general business skills can take over an run will improve the value versus ones where specialized knowledge, experience, licensing etc is required. Take a look at storage units. They are all over the place and they're building more of them. It has been an absolute explosion in the past several years (I've always wondered what people did with all this stuff before?). While no business is easy, you certainly do not need a ton of experience to take over a business such as these. Of course, no business is easy; and I've always said that the business in the world is everybody else's. However; one can easily adapt to this environment and quickly ramp up to the sills needed to successfully manage it, and better yet, to have it operate absentee. Think about it: you have a storage building with limited capacity, and once the space is filled, you can't really go out and market it more. You can increase the fees, improve client turnover, but once it's filled, it's filled. And, best of all, the checks come in every month.</p> <p><strong>It's A Beautiful Thing when it's Harder to Lose an Existing Customer than To Gain a New One</strong></p> <p>Nobody thinks about changing alarm companies unless they incur a break in and the alarm doesn't go off. Likewise, if you have a water supply business, or marina and you provide the services you're expected, people don't change. Storage businesses are even better examples: people just keep their "stuff" there year after year and never move it. Actually, it's a beautiful thing when you own this kind of business. These are the ones where customers either don't give a second thought to paying the monthly fees, or they realize that it's simply not worth the hassle to change to a competitor. In other words, you'd have to really mess things up to lose a customer.</p> <p>By the same token, getting new business is not easy for the same reason that it's hard for one business to lose a customer; it's difficult to gain one form the competition. But, the costs and time required to keep an existing accounts are infinitely less and easier than getting a new one. This is a very attractive concept for any prospective business buyer especially ones with limited professional or entrepreneurial experience.</p> <p>The question you must ask yourself if you're thinking about buying a business is what you want from the business. While some businesses command massive premiums, the potential growth may be limited. However; the downside risk is far less than other types. Also, these lend themselves to absentee run situations which make them even more attractive to some. On the other hand, if you have entrepreneurial blood running through you veins, you'll probably be bored with these particular types and so there are many other options available to you as well.</p> Acquireo.com - Richard Parker Wed, 13 Jun 2007 19:26:34 GMT Business buyer articles http://www.acquireo.com/businesses-for-sale-resources/business-buyer-articles/how-to-start-sunroom-and-patio-shop.aspx <p> Depending on where you live, a sunroom may be common or rarely seen. In warmer climates a sunroom is a very popular addition to a home. Many new homes come with a bare patio and a professional contractor can change this patio area into a sunroom. The cost of a sunroom depends on whether it is to be used year round or only in the warm months. The difference in expense is the direct result of having an enclosed heated area and a screened in area. If the walls are enclosed with windows and the sunroom is heated and or air-conditioned this room will cost more that one that it is just screened in with no heating or air conditioning. </p> <p> The homeowner will get bids to add the sunroom based on the decision for year round use or warm month use. The contractor will be able to build either addition. If the home owner only wants a patio added to the home then this is a different construction problem and the expense will depend on how many features the homeowner wants in the patio. A patio with awning can be built for less than a sunroom, but it still will be a big purchase. </p> <p>   </p> <center> <small>article continues below</small><br /> <script language="JavaScript" src="http://adserver.acquireo.com/abm.asp?z=15"> </script><br /> <br /> </center> <p>   </p> <p> The bottom line to this creative business is the homeowner will be willing to spend a significant amount of money to get what they want. This type of construction comes with a nice profit built into the project. Working in the business for a couple of years can be a stepping-stone into getting started in the business and learning from hands on experience. Once you have the knowledge you are going to need to acquire a contractors license in most states. You can get started in two ways, buy a business or start one from scratch. The more difficult way to get started is to start one from scratch. On the other hand it may take less money to do it his way. </p> <strong>Where and how to find a sunroom business for sale</strong> <p> One-way to get started looking for a business to buy is to go to a site like www.acquireo.com and look up a business broker near you. While there you can see if there are any businesses listed for sale. Search on the Internet for businesses that are for sale by searching home construction firms for sale. Tighten the search to patios and sunrooms. </p> <p> The business brokers will also be a good source to speak with and see what they have to offer in this business area. You may do better searching in larger cities as this business is going to need a larger population to find customers. </p> <p> Finding a business that is for sale is only the start of the search. You need to find one you can afford to buy and that may take more time to find. Mean while you can try to find some small jobs to do that you can handle by yourself or with one or two other workers. You can find work for a small company by advertising and canvassing a neighborhood. You may be able to get some work from a general contractor. One area that you will need to have taken care of is the licensing and insurance that covers you and your work. This step stops many who want to own their own company. It is a necessity to have these in place or it will cost you work. </p> <p> Once you have a few jobs under your belt, use the photos taken at those jobs to show how your work looks and steps needed to complete the work. Hire a website builder to make a site that you can post these images on so that a person you are talking to on the phone can understand the work through links and images. </p> <strong>Money needed to buy or get started in the business</strong> <p> Money will be needed to get started whether you buy a business or start one from the ground up. You will need less to start one from scratch in most cases than you would to buy a company. The current owner of the business you are trying to buy may be willing to work with you and take some of the purchase price in a loan. If this is the way the deal is made, be prepared to pay more for the company. </p> <p> Business lenders to people buying a business are easily found on the Internet. These lenders are in the business of helping a buyer come up with the purchase price. In many cases they are easy to talk with than your banker. You are buying goodwill when you buy an existing company. Do not over pay for this part of the business. If they have some contracts with general contractors make sure these are transferable to you. These contracts can be valuable if they can be assumed. Repair work with real estate management companies is also a valuable group of clients to get. </p> <strong>Conclusions</strong> <p> Sunrooms and patios can be a very creative type of work and also be very profitable to the contractor. The work must be dug out by a new company and may be easier to get by an established company. Bidding jobs for general contractors is a way to get some cash flow. Make sure you check out any GC you are going to work with. Some of these GCs are very slow pay. </p> <p> Homeowners will usually give a deposit and then pay the balance on completion of the job. Take pictures of your completed jobs and build up a portfolio so you can show new potential clients. Put these same images on a website that can be seen by potential customers. Make sure to include your web address in all printed materials. This is very important on business cards and ads that you run. </p> <p> Employees are important to the growth of a company. Treat them with respect and compliment good work. People like to know they are appreciated as well as being paid for the work they do. </p> Acquireo.com - Acquireo Team Mon, 29 Aug 2005 12:01:11 GMT Business buyer articles http://www.acquireo.com Businesses for Sale - buy - sell - find a business today! acquireo.com Thu, 09 Feb 2012 09:02:58 GMT Businesses for sale