Small Business Forum

Financing a franchise   So you want to buy a franchise.  If you have all of the capital needed to make the purchase with some leftover to run the business then you do not have a problem. The potential owner with the desire to own a franchise, but is short of money is the person this article is directed too.  They have the motivation, but they do not have the needed capital to pull off the purchase.  There are several ways to solve this problem assuming the potential...

Selling your business takes planning and careful documentation of information about the business.  The financial statements have to be brought current and also all past information say for the last five years should be reviewed for accuracy.  A current inventory should be prepared if the business is inventory sensitive.  A list of leases, legal obligations, loans to be assumed and other obligations should be made and classified.  In short, all money matters of any importance...

Selling a business takes preparation, planning and commitment by the owner.  It is like any other project, set a goal, list the steps to get there and then work the plan.  When you sell a business you will need to gather all of the important facts about your business and put them in a presentable form.  Another important early decision is how you are going to sell your business.  Are you going to do it yourself or with professional help.  Most businesses change hands...

When the seller and the buyer have been talking for some time with regard to the purchase of a business, there comes a point that a deal needs to be made or the talks should come to an end.   This point is after all details of the business have been presented and the buyer has made a counter offer to the sellers asking price.  This is followed with a counter offer from the seller or a refusal of the offer.  The buyer then might offer to meet the price if the seller will...

Selling a business is a series of steps that logically follow one another until the sale is complete.  If you know the steps, then you have a plan of attack to sell your business.  This plan will get you a fair price and help to make the sale go through as quickly as possible.   Setting a price after the decision to sell The first step in the process of selling a business comes after the decision to sell the business.  This decision can happen for many reasons and...

There is a role for a business broker in selling your business.   Basically they will make it happen quicker and often at a better price than you could have received on your own.   Reasons for a business broker There are many reasons to use a business broker when selling your business. The most basic reason is they are in the business of selling businesses.  They will market your business and help to get prospective buyers to look at your deal.  They will...

The obvious answer is when you have a buyer with cash ready to buy.  The serious answer is when you have had a pretty decent three-year run with a rising profit each year.  A buyer likes to see increasing profits each year.  They also like to see bills paid on time and no delinquent debt. A steady deposit flow in the bank, little employee turnover and increasing table occupancy are all signs of a healthy business.  Health or Intended retirement These both are...

When you are ready to sell your business, there are several initial steps that need to be completed right away.  These include getting all of your financial information together so that it can be presented it the most favorable light and in an easily understood format.  This should include sales records, quarterly or yearly income records after expenses, and asset descriptions with their approximate current worth.If inventory is involved is the business sale; the records should be...

You have worked hard to make your business successful and you have succeeded.  Now you decide to sell the business.  What should you do and how should you do it.  The first suggestion is talk with the professionals that have worked with you through the years.  Your accountant and lawyer would be a good place to start.  If you live in a bigger city check to see if there is a local business broke you could talk with.  You will need to immediately gather all...

You have a business to sell.  How do you go about finding the right buyer for your business?  Where to begin the process of digging out a person or company that would be interested in owning a business like the one you are selling?  This is the sixty-four dollar question that faces every business owner who is seeking someone to buy his or her business.   There are some very logical steps to take after you have made up your mind to sell.  Here are some practical...

Value of Business   What is the value of your business?  Ask three expert evaluators to come up with a value and there is a good chance they will come up with three numbers that are not close to one another.  What is an owner to do when faced with this dilemma?    How did the experts determine the value and why did their final number vary from one another.   The reason is simple enough.  There are subjective elements to every business...

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.   Cash flow Cash flow is without a doubt is the biggest problem that all businesses...

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....

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. Here are some of the criteria that help in making the correct decision. Money 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...

A person who is looking to go into a business for themselves has many decisions to make.  One of the first choices is what kind of business should a potential business owner consider for themselves.   The next consideration is should the business be started from scratch or should an existing business be purchased.   The cost of a new business vs. an existing one Starting a business from scratch is usually far less expensive than buying an existing business. ...

Up to 90% of businesses sold are financed in some way, by either the seller or from other outside sources.  It is wise when dealing with a prospective buyer, that the seller find out early in the negotiations if the buyer is going to need to obtain financing.  If that is the case, are they looking to the seller for the money or do they have a source that they have reason to believe would lend the money.  If the buyer is looking at the seller for the money, it would save time...

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 lay out of money to make the purchase.  The following items should be considered by the new owner 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....

Opening a new restaurant is an act of faith as the chances of success are one out of ten.  There are some ideas that you can incorporate to make your chances better.  Have a theme and food group that you are passionate about.  Make sure you have as much information as possible about the cost of advertising in your area.  Also you will need to know which advertising vehicles seem to work best in your city.  You should be prepared to take over any job in the restaurant...

A well crafted restaurant menu is essential to any restaurant’s marketing plan.  The menu will express your restaurant’s personality while focusing your overall operations.  Your menu will help to promote profitability by establishing your budget and keeping your restaurant fresh in your customers’ minds.  Writing and designing a restaurant menu is a collaborative effort between the restaurant owner, chef, and possibly CFO.  Working with these members of the restaurant...

There are numerous items that should be researched before purchasing an existing restaurant.  If some of these potential problem areas are not caught before the sale is final the new owner can get a large financial surprise.   There are several that if found to be in existence, the new owner should walk away from the deal or get a substantial reduction in price.  This makes buying a restaurant considerably different than buying any other type of business.   ...

The number one rule when buying a business is it is usually better to buy an existing business.   The reason this beats a startup business is an existing business has many advantages such as a clientele, a known location and a history that you can expect would continue for a period of time.   Restaurants are slightly different in that the old owner may be the reason for the success of the business.   This would certainly have to be taken into consideration. ...

To get talented people to be part of a young enterprise requires leadership skills in an entrepreneur. Molding the people into a team, and achieving the peak performance by unleashing their potential needs management, leadership and the top most quality of all “Inspiration” The job of any leader is to build self confidence in the people around him, clap for every achievement how small or big with everybody around you. The people around him can be anyone in his enterprise starting from...

#1. Headline is the most important part of your listing. Copywriters, those who write words for advertising and promotional purposes, spend a large portion of their time in writing the headline rather than the body of any ad. Sometimes, as in billboards, the headline is all there is.  When framing a headline for your ad, make notes on the keywords you would prefer on it . Balance the final phrase in a manner that the most relevant and searched terms are being displayed. For instance, if you...

According to the recent report from overture the term "business for sale" is searched 782 times per day and the term "small business for sale" 63/day. Other popular queries include "California business for sale", “florida business for sale”, “online business for sale” and “business for sale in los angeles”. The above terms will be a very easy find in google but what if it’s a more specific query like “hair salon for sale in Ada County, Boise”? Many websites are out there displaying...

1.     How long is he in brokerage business?2.     What organization is he affiliated to? Does he have a IBBA membership?3.     What’s the level of experience in business buying and selling?4.     Is he a broker specialized for selling small scale business or businesses in a large  scale?5.     How many clients does he have on the average?6.     Is he a sole practitioner or...