Contents

Business buying process can be easy with following step by step business buying guide. It is always good to check little things as much as possible when you buy business for sale since business buying process takes a lot of details.

Business Buying Guide - Detail

Business Buying Guide - DetailBusiness Buying Process First, You have to determining your investment. Usually minimum down payment made by the buyer is 30% of the purchase price. For example, if the business purchase price is $100,000 and loan amount is $70,000 (70%), then the buyer's down payment needs to be $30,000 (30%). Other possible expenses are inventories, supplies, escrow fee, license and permit fees, franchise transfer fee (if applies), etc.And then you have to set criteria of desired business. Which includes location of business, type of business, price range of business, desired income of business.After you decide your investment amount and criteria of business, you will need to find a right business that fit your needs. You can search business through online business listing service site like www.BusiMarket.com Business For Sale, local newspapers, or through local business brokers or real estate agents.If you find a business that you want to purchase, you will need to evaluate the business through current owner's income information and your projected income for short term and long term. And then you need to make decision to purchase business or not. If the business is right for you, you need to write a very descriptive and detailed contract (Purchase and Sale Agreement).When you are writing an offer, you have to make sure the contract includes the followings: Your offering price, Initial deposit amount, financing terms, closing date. Other terms and conditions that can be added to the contract is buyer's loan approval, lease and lease approval from landlord, buyer to obtain all necessary licenses and permits, franchisor's approval of ownership transfer, the buyer's Satisfaction of books and records, closing cost allocation, buyer training session, business equipment and fixtures in good working condition, inventories and supplies amount, seller's agreement not to compete, etc. After you finish writing an offer, you need to present your offer to seller. Negotiate the price, terms, and conditions and settle with final price and terms and condition.Now you will need to allocate the purchase price of business that you are buying. After you done purchase price allocation, you will need to apply for loan, license and permits.and then you will need to obtain a lease or sublease. You will need to make sure you obtain the lease or get an approval of lease assignment before close of escrow no matter what happened. And then on or the day before the closing date, you will need to review the equipment list that is provided at the time of the acceptance of the Purchase and Sale agreement and buy inventories and supplies. And then you can do the closing on the closing date.

How to Finance Your Small Business Start Up

How to Finance Your Small Business Start Up

It all starts with a great idea, an idea that has probably been in your mind for a long time. You have the product sorted out, how you are going to deliver your service, where you are going to set up your office and how you are going to market your new business. But the stumbling block always seems to be the finance to get you going.Finding the finance to get a small business off the ground is a major issue for any potential small business. Some new businesses lend themselves to very little start up capital because the main selling point is the owners skills and knowledge, for example consultants, web designers, PR specialists. Businesses which require stock holding, plant and equipment and other investment, face the real challenge of getting their start up finance together.So what sources can you tap into to ensure your business gets off to a solid start?Your SavingsThe first port of call! If you have been in employment for some time then before going it alone you should hopefully have some spare cash behind you. Whether this be in the form of cash in a savings account or shares and unit trusts, this is a good start to your fund raising exercise.You can be more focused in saving cash if you have had the goal of setting up your own business for awhile. Knowing you need to save to get your business off the ground will make sure you dont spend your future nest egg on unnecessary items. Whilst a new Plasma TV or the latest DVD Recorder may seem to be an essential purchase, knowing that you have a business to set up in the future will be sufficient a deterrent to keep the cheque book firmly locked away! Keep Your JobSome business owners are lucky enough that during the early days of the business they can keep the day job while working on the business during the evenings and weekends. This has two benefits. Firstly, they are still earning thereby allowing more time to build up a cash reserve. Secondly, its an opportunity to test out the business to make sure there is a market.Make sure that you can realistically keep both balls in the air at the same time otherwise you will end up doing justice to neither your job or your new business. The support of your family is also essential if you are to follow this strategy. They have to accept that what used to be family time may have to take a back seat until you decide to concentrate on the business full time. Family and FriendsThese can be a useful source of finance for any start up. If you have harboured ambitions to run your business for some time, then many of your family and friends are already likely to know about your idea. You should therefore have an indication who is for it and who is against it. If you havent shared your secret desire then its time to be slightly devious! If you are in the early planning stages start drip feeding your ideas to key people whom you think are likely to support you. Tell them your ideas, share your ambitions and goals and on a regular basis update them with your progress. The plan is to get them sold on you and your future business at an early stage.Once you get to the point where you are ready to start asking for contributions hold an Investor Evening. Prepare a presentation outlining your plans, the business, the market etc. Show the potential investors what their return will be in recognition for supporting you. Invite as many people as you can and promise an interesting and fun evening, Be bold at the very start; tell them exactly why they are there, so there are no misunderstandings. After you have done your presentation gather all the names of the people who may want more information or even a one-to-one with you.Whilst this group are people who know you and so are more likely to trust you, dont forget that you are developing a very different relationship which can quickly turn sour. Be prepared for rocky times! Bank Line of Credit or LoanNow youre getting into the serious stuff! Getting support from a Bank for a new business is tough, as many entrepreneurs will testify. One sneaky way is to apply for an unsecured loan while you are still in employment. If you have planned things right you will know when you are starting up, so a few months before you pack your job in, apply for a loan based on your salary. However, make sure that you can comfortably meet the repayments. There is no grace period; you will be expected to pay back immediately, so your business will have to start earning very quickly.The alternative is a business line of credit facility. There is no fixed repayment date, although they will be for periods from 6 to 12 months, and all you have to do is ensure that you keep within the overdraft limit. You will have to write a business plan to present to the Bank which outlines your idea and the business. Mortgage or Equity Release With the way house prices have been increasing over the last few years, the vast majority of people now have substantial equity in their homes. The cheaper alternative to a Bank overdraft or loan is a mortgage. The interest rate is lower and, as the repayments are spread over a longer period, the monthly repayment is less (although you will end up paying more interest in the long run).The disadvantage of raising cash this way is that your home is potentially at risk. If meeting the monthly repayments is dependent on what the business can generate then a slow start could cause cash problems. So be very sure you can meet the repayments even during a lean period. Credit CardsIf you havent got any savings, cant get support from family or friends, or a Bank loan or mortgage, then there are your credit cards! However, whilst its easy to draw down on your card, be wary! Credit cards are the most expensive form of debt.They are ideal because all you may have to do is pay the minimum amount but card debt, as most people have found out, can be a long term burden. But, if you need a cash lump sum to kick start the business and you know you can pay it off within a few months, then its an alternative source of finance worth considering, if somewhat unorthodox! Business GrantsBusiness grants are available for specific industries, sectors and reasons. Grant providers will usually only give a portion of your requirement, so they cannot be used to totally finance a start up. However, they can be useful in filling a funding gap. Business AngelsA popular way to fund a business are Business Angels. These are people, usually retired or successful business people in their own right, who are looking for opportunities to invest in new businesses.In exchange for an investment they will typically look for a shareholding in the business and some hands-on involvement. They will have a vast business experience and so are useful people to have on board. However, you will have to accept an element of loss of control but that needs to be balanced against your desire for funding. Getting finance for your new business can be a challenge but there are a number of avenues to explore and so with dedication and focus you could soon be on your way to launching your own small business.

Local Businesses and Web Sites

Local Businesses and Web Sites

It seems that most successful businesses these days have web sites, even businesses that service only certain geographic areas. On the web, where the market place is global, localized businesses can be at a great disadvantage.A Local Business Web Site ExampleLets use the example of a car cleaning businesses. The business only cleans cars in a specific city, yet wants to use their web site to create more business. Time and money is invested in marketing the site in the search engines, paying particular attention to marketing the site for the specific geographic region the service provider covers. Nonetheless, many visitors from around the globe are likely to stumble across the site if it is well marketed.Offer Non-Geographic Specific Products and ServicesIf a local business does not offer some sort of product or service that is available to the global market, than these web visits are wasted. The solution is simple. Local businesses that expend effort marketing their web site should also consider offering additional products or services that can be purchased by the global market.Product OptionsOptions for our example - a car cleaning service - could include T-shirts, hats, cleaning cloths, wax and/or soap. Even just T-shirts could be an additional source of revenue, whereas the seller benefits not just from the direct sale, but the advertising the wearer of the shirt will provide.Drop Shipping Makes Offering Products EasyTo the busy business owner, offering additional products for the sake of web sales may seem like an extra burden rather than a hidden source of revenue. Yet adding products to your web site can be very easy. By using a drop-shipper, inventory is not required. Services such as Caf Press allow products to be made as they are ordered.Affiliate SystemsAlso, if the site owner does not wish to deal with inventory and stocking products, affiliate systems can be used for revenue. Affiliate systems allow site owners to signup for revenue sharing programs with other companies. An affiliate program allows site owners to offer the products or services of other companies while getting a commission on sales generated from the site owners site.In short, if you run a business that operates on a local basis only, and also maintain a web site, it may be well worth your while to expand to the global market by adding products or services that can be sold around the world.

IT Support: Are You Wearing Multiple Hats?

IT Support: Are You Wearing Multiple Hats?

In the early stages of developing an IT support business, the owners typically wear all the hats: the sales hats, the technical hats, and the administrative hats, until the company has established enough of a client base that it can justify delegating certain things to a salesperson or a couple of different technical people. In this article, you'll learn why you need to wear so many hats in the beginning and when to start handing the hats to someone else.Why So Many Hats are Important in the Beginning Many people come to me and say, Well, I'm just the owner. I'm an entrepreneur. I'm good at pulling it all together, but I'm not really a techie. And I'm not really the sales guy. What should I do? I'm going to be very blunt. You're behind the 8 ball already because a lot of your local competitors are wearing all of these hats, especially during the startup phase of their "IT support" business. In a lot of cases, your firm is going to be competing for these sweet spot clients against one-person consultants who may be working out of their homes with extremely low overhead. These are the rare folks that are pretty good technically and happen to have pretty good sales-oriented kinds of personalities. When to Start Passing Out HatsThat's not to say that you couldn't have a good technical person and keep him or her very busy and a good full-time salesperson. Typically, however, your IT support business evolves over time. The owner starts out by being both the salesperson, and the technical person. As the company gets busier, your firm starts subcontracting out some of the overflow work or work that is not up your alley (specialist tasks). This frees you up to go out a little more on sales calls. Then, when you get to the point where you have a couple different subcontractors that you consistently sending this work to, your light bulb will start to go off. You realize for the money your firm is spending on subcontractors, you could put someone on payroll. The Bottom Line about IT support Keep in the back of your mind that some of your competitors are going to be able to be skilled at sales and technical issues right off the bat. And they may give you a run for the money. You will want to think about this issue carefully as you start to position your business. Copyright MMI-MMVI, Computer Consulting 101 Blog. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

Computer Consulting Business: Nail Down the Vendor Support Options

No computer consulting business can afford to be sitting at a client site, running up a big bill, staring at a blue-screen-of-death, facing an angry mob of irate users and sitting on hold for two hours with tech support.This scenario is your absolute worst nightmare in running a "computer consulting business" and can be the kiss of death to your client relationship.The Need for Good Vendor Technical Support Good vendor technical support will preserve your credibility as a computer consulting business during times of crisis. No matter how experienced you are at PC hardware troubleshooting, calling on a specialist is a necessity.Understand What Is OfferedRather than get an unpleasant surprise when you need help the most, get the lowdown on vendor technical support before you make the purchase recommendation. Although many top PC vendors have similar capabilities and services, ask about included technical support services, and preferably get a description of them in writing. Ask Questions As a computer consulting business, you will want to ask questions to determine the reliability of PC vendor technical support. Find out if they are available by phone, if the technical support phone number is toll-free and if the support is free or not.Also, find out if there are different technical support phone numbers for different products.In operating your computer consulting business, you will also want to know if vendor technical support has 24/7 support in case you have a need for emergency support. Ask if online tech support resources are available as well. Deal With a SpecialistAs a computer consulting business, you want direct, rapid access to a specialist who deals with nothing but that particular product all day. So test the technical support groups responsiveness at a time when your heart isnt racing in the heat of a client server-down emergency.Also, PC Magazine (http://www.pcmag.com/) regularly evaluates PC vendors technical support quality, so this is a good resource to look into.Copyright MMI-MMVI, Small Business Computer Consulting .com. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

Press Release System for Free Advertising

If you have a low budget or no budget your advertising campaign can still be done for free, and a small business owner can get free ads with large publishers.Magazines and other print publications have an ad to content ratio to maintain for legal reasons, and sometimes an issue has a blank space just waiting for an interesting press release (content) to match the size of an ad that they want to squeeze in for maximum revenue.I once developed a free ad campaign for a manufacturing company on a product line that hadn't changed in 30 years. How do you say something new about a dinosaur? Forget features and focus on the benefits.Research and create a directory of publishers in your industry, and then contact them for the proper editor responsible for reviewing press releases for your line. Their web site may have what you need, otherwise these editors will tell you what they want, the format, and requirements for accompanying photos. Make a database from your list, and then get ready to send them a press release every month (forever).Develop a dozen press releases about the benefits of 12 different products with professional quality photos. Divide your database of publishers into 12 groups, and then rotate press releases so all 12 go out to someone every month, and track your system carefully so each editor gets a different release each month for a year.You can start all over a year later with the same press releases or develop new ones if you are introducing new products. What happens next?Eventually you will be published. Most send you bingo cards to report interested readers, and then it's time for followup. My system generated 100+ leads a month, so be prepared with a good followup system and don't let the bingo cards get stale.For most small business owners a single employee can handle the mailing and followup once the press releases, quality photos, and phone routine or form letters are ready. With discipline and patience, it will work!One final note, do not overlook smaller publications. Any printed media remotely associated with what you do is worth the small cost of a monthly press release.

Summary

Business buying process can be easy with following step by step business buying guide. It is always good to check little things as much as possible when you buy business for sale since business buying process takes a lot of details.