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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.
Thinking of selling your Maid Service Franchise? What you need to know.
March 03, 2010 by Dan Munter
There are 14 franchise enterprises that focus primarily in the residential market. According to a recent report from information company FRANdata, the franchises of residential cleaning companies are growing at annual rate of 10% . There are two main Rules of Thumb for valuing these businesses. 40% to 45% of annual sales plus inventory. 1.5 times DE (Discretionary Earnings). Other selling points would be the exclusivity of the territory assigned to the franchise. How long the franchise has been established for. How long any competing franchises have been established in the same territory. And if there is any open territories in surrounding areas. If you would like to learn more, please contact me at dmunter@bizex.net.
