Buying A Business – Prepare Yourself

While there are a thousand things to consider when selling your business, the first and most important question to answer is, “what do I have to sell and what is it worth?” The best way to answer this question is with a business valuation.

This is not the normal business brokerage process. Many Starting a business in Thailand will list your business based on what you would “like” to collect from a sale. This is a complete waste of time. It forces the market to price your business. And believe me, the market will tell you the answer whether you are ready to hear it or not. You’ll then tell the buyer that they’re crazy and that their offer is insulting. That is, until 5 or 6 buyers tell you the same thing. Only then may you start to listen.

If you were teaching a financial advisor how to get referrals and get more Business brokers online, you first help them to think about possible categories where referrals might come from. As they’re looking at various categories and you get clear about those, then you can dig into names. As an example, there’s probably more than one insurance agent. They probably belong to more than one association. Work with them to write down the names of people representing the categories you wrote on the spokes.

These are the elements that should be looked into before purchase of a franchise. Examples are: Who can you buy supplies from and is there a requirement to pay so much a month for advertising controlled by the franchiser.

What are the details of the final sale price fee that these brokers charge that one should keep in mind? This can be considered in a number of ways. You can follow the regular manner business brokers charge: ten per cent of the first million made on the sale, eight per cent of the next, six percent of the third and four per cent of the rest.

To finance the deal, seller financing is probably the best option available to you. You won’t get a bank loan without offering a 100% collateral. The Small Business Administration does offer some financing but only for deals that meet a strict set of criteria.

You need to think about your exit strategy, someday selling your business, retiring, or perhaps transitioning into semi-retirement and handing it over to your kids or your team of managers. Having a succession plan is the wise thing to do. It might even make sense to get to know a local business brokers online now and ask them what sorts of information they will need when it comes time for you to sell. Why not buy them lunch and really pick their brain?

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.