The Biz Blog - uncategorized
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February 24, 2012 by Shelli Margolin
Price is not the only determining factor in procuring a quick sale. You need to get into the buyer mindset and make sure a buyer sees the same value in your business as you do. Here are some no nonsense universal step to getting your business sold fast: 1. Price Price Price!!! Just like anything else the better the deal, the faster someone will snatch it up. 2. Make it easy to understand - If someone cant understand how you do business and how you derive your net profit, they generally arent going to buy your business at any price. Make sure you have straight forward profit and loss statements for the last three years Put together a list of inventory and other assets such as furniture, fixtures and equipment (FF&E) and list their replacement costs. Have any employment contracts organized and ready for review Organize your customer/client lists List out any debt that will need to be dealt with in the sale
Selling a Small Business as a Short Sale
December 05, 2011 by Shelli Margolin
Drowning in business debt!?! Even when a companys sales start increasing, debt can eat away at the profits More and more small business owners are finding that profits are going to servicing their debt and keeping their business operational. In such cases, an option is to sell the business through a short sale. Especially if a business owner is burnt-out, looking at shuttering the business and declaring bankruptcy. Declaring bankruptcy is different as a small business owner. Its not just an anonymous bank or bureaucratic phone company that is owed money; its often suppliers and vendors with whom there are long-term personal relationships. And often, friends and family have invested in the business or lent large sums of money to help keep the business afloat.
How to Value a Restaurant or Bar that is not Showing Profit
November 03, 2011 by Mina Singson-Brightman
How much money is a restaurant worth? Does it have any value if the restaurant is not turning a profit or barely breaking even? Restaurants, coffee shops or bars are valuable even if they are not showing a profit. These kinds of businesses are valued through the replacement value technique which assumes a buyer pays the seller a price that is not dependent on the income value to benefit from the existing investment in the restaurant facility, the lease and the location. In other words, the buyer is starting a restaurant business at a discount and will pay for the right to avoid spending hundreds of thousands or even millions and avoid all the delays and city regulations in building a new restaurant Here is what a restaurant seller has to say when he received an offer on his business.
Can positive thinking really make a difference?
April 16, 2010 by Dan Munter
Recently I was interviewed for an upcoming video called Success Can be Simple. All of us who deal in the world of business may agree that success can be simple, but most of us know in reality that it rarely is. Many of us are confronted with obstacles on a daily basis that are not of our own making. We may have the best business plans in place, yet often find ourselves dealing with problems that distract us from following those plans. We may have goals to grow our business but spend every day feeling overwhelmed. In the enclosed video I tell a story that I hope you find both inspiring and educational. The first video is only 6 minutes long. I am interviewed in the last 3 minutes if you want to fast forward to my story.. If you find this helpful, please let me know.
Seven factors that will affect the sale of your business
April 05, 2010 by Stuart Gross
When you are selling your business you should know that the average business takes 6 to 9 months to sell. There are several factors that affect the salability of your business. Revenue and profitability A major factor affecting the salability and price of a business is its revenue and profitability (P&L). There is little you can do to change those facts but the presentation and explanation of unusual activity is important to instill confidence in a buyer. The P&L usually has the most direct effect on sales price. Potential and Scalability Most buyers want to buy a business that they can grow and make better. It is good to know what could be done to grow the business in new ways. For example you may not have an effective website or the business could be open more hours, or it is reasonably easy to expand to larger facilities or additional locations. Be prepared to provide some growth strategy for the potential buyer.
BOSS Theory- What small business buyer should look for
March 23, 2010 by Dan Munter
I recently participated in a Webinar on How to Buy a Business by industry expert Richard Parker (Diomo.com) and one of the topics discussed really hit home for me... There are 4 qualities of a business that will help a new small business succeed with his new purchase. The 4 components can be remembered with the anagram called the BOSS Theory: B-Bland. A business that is today's 'hot new business" will become the 'out of style business' of tomorrow. A bland business is less vulnerable to fads and innovation. O- Operational sound. Buying a turn-around business is very risky. There are people who specialize in turning around companies. It really takes a different skill set then simply running a business. There are enough challenges in taking over a business without having to engineer a turn around.
