Archives for July 2018

Embracing Retirement and Selling: 4 Tips for a Smooth Transition

No one works forever. Regardless of how much you love your business, sooner or later you will have to step away. Owning a business can be very demanding. This fact can be doubly true for owner-operators of businesses. The simple fact is that you'll have to embrace retirement at some point. Most business owners have never sold a business before and may not know what to expect. The good news is that prospective buyers usually like the idea of buying an established business directly from a business owner. It is key, however, to do everything possible to make selling your business, as well as the transition period, as easy for a buyer as possible. Prepping your business for sale has many diverse parts that need to be taken into consideration. Prospective buyers want to feel as though they will have a seamless transition, so it's in your best interest to evaluate what steps you need to take to make the transition smooth. You are the world's greatest expert on your business. As a … [Read more...]

Embracing Retirement and Selling: 4 Tips for a Smooth Transition

No one works forever. Regardless of how much you love your business, sooner or later you will have to step away. Owning a business can be very demanding. This fact can be doubly true for owner-operators of businesses. The simple fact is that you'll have to embrace retirement at some point. Most business owners have never sold a business before and may not know what to expect. The good news is that prospective buyers usually like the idea of buying an established business directly from a business owner. It is key, however, to do everything possible to make selling your business, as well as the transition period, as easy for a buyer as possible. Prepping your business for sale has many diverse parts that need to be taken into consideration. Prospective buyers want to feel as though they will have a seamless transition, so it's in your best interest to evaluate what steps you need to take to make the transition smooth. You are the world's greatest expert on your business. As a … [Read more...]

Is It Time to Become a Business Owner? 3 Questions to Ask Yourself.

Many people know that owning a business isn't for them. But for others, the appeal and lure of owning their own business can be powerful indeed. If you are uncertain as to whether or not this path is for you, there are a few simple questions you can ask to gain almost instant clarity. In this article, we will explore those key questions and help you determine if owning a business is in your future. 1. Are You Dedicated to Growing Your Income? Quite often people like the idea of making more money, at least in the abstract. But when presented with what it takes, many people realize that they don't want to do what is involved. Owning and operating a business can be a lot of work and it's not for everyone. Yet, those who embrace it can find it rewarding in a variety of ways. Being a business owner is radically different than being an employee. As an employee, you simply don't exercise much control. Summed up another way, your financial fate is clearly in the hands of someone else: … [Read more...]

Is It Time to Become a Business Owner? 3 Questions to Ask Yourself.

Many people know that owning a business isn't for them. But for others, the appeal and lure of owning their own business can be powerful indeed. If you are uncertain as to whether or not this path is for you, there are a few simple questions you can ask to gain almost instant clarity. In this article, we will explore those key questions and help you determine if owning a business is in your future. 1. Are You Dedicated to Growing Your Income? Quite often people like the idea of making more money, at least in the abstract. But when presented with what it takes, many people realize that they don't want to do what is involved. Owning and operating a business can be a lot of work and it's not for everyone. Yet, those who embrace it can find it rewarding in a variety of ways. Being a business owner is radically different than being an employee. As an employee, you simply don't exercise much control. Summed up another way, your financial fate is clearly in the hands of someone else: … [Read more...]

The Top Two Ways to Purchase a Business without Collateral

Banks love collateral and for a very simple reason. If you have collateral, then the bank has something it can take if you fail to repay your loan. At its heart, collateral is a remarkably simple concept. However, unfortunately, many people who want to start a business lack it. All of this leads us to the simple question, “Can I start a business without a collateral. 1. Try the SBA There are ways that you can start a business without collateral, but you will need some amount of money. The larger the business, obviously the more money you'll need. Those interested in the zero collateral route will want to take a look at the SBA's 7 (a) program. This program incentivizes banks to make loans to prospective buyers. Through this program, the SBA guarantees an impressive 75% of the loan amount. Of course, the buyer still has to put up 25% of the money in order to buy the business, but for those looking to own a business without having to put up collateral, the SBA's 7 (a) program is … [Read more...]

The Top Two Ways to Purchase a Business without Collateral

Banks love collateral and for a very simple reason. If you have collateral, then the bank has something it can take if you fail to repay your loan. At its heart, collateral is a remarkably simple concept. However, unfortunately, many people who want to start a business lack it. All of this leads us to the simple question, “Can I start a business without a collateral. 1. Try the SBA There are ways that you can start a business without collateral, but you will need some amount of money. The larger the business, obviously the more money you'll need. Those interested in the zero collateral route will want to take a look at the SBA's 7 (a) program. This program incentivizes banks to make loans to prospective buyers. Through this program, the SBA guarantees an impressive 75% of the loan amount. Of course, the buyer still has to put up 25% of the money in order to buy the business, but for those looking to own a business without having to put up collateral, the SBA's 7 (a) program is … [Read more...]

Fairness Opinions

Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other members are not active in the business, but are stockholders; or you are president of a privately held company that has several investors/stockholders. The decision is made to sell the company; and you as president are charged with that responsibility. A buyer is found; the deal is set; it is ready to close — and, then, one of the minority stockholders comes out of the woodwork and claims the price is too low. Or, worse, the deal closes, then the minority stockholder decides to sue the president, which is you, claiming the selling price was too low. A fairness opinion may avoid this or protect you, the president, from any litigation. A fairness opinion is a letter, usually only … [Read more...]

Fairness Opinions

Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other members are not active in the business, but are stockholders; or you are president of a privately held company that has several investors/stockholders. The decision is made to sell the company; and you as president are charged with that responsibility. A buyer is found; the deal is set; it is ready to close — and, then, one of the minority stockholders comes out of the woodwork and claims the price is too low. Or, worse, the deal closes, then the minority stockholder decides to sue the president, which is you, claiming the selling price was too low. A fairness opinion may avoid this or protect you, the president, from any litigation. A fairness opinion is a letter, usually only … [Read more...]

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