Jeffrey D. Nyman
Does the thought of giving up your payroll check scare you?
Most buyers who want to be self-employed worry about several situations when starting their search for a business. “is this the right business for me” and “I am so used to receiving a check every two weeks, can I make it as a business owner?”
Don’t worry, you are not alone. Many people who give up their job to purchase a business are worried and scared that the money that they are relying on every two weeks will no longer be there. The truth is that if you have been selective in your choice of the business that you have decided to purchase and completed your due diligence to your satisfaction, your income should greatly surpass your bi-weekly paycheck.
As an example, commissioned only salespeople will tell you that they could not afford to go back to a weekly or monthly paycheck since their earnings have greatly exceeded the amount of their previous salaried position.
It is the same with business owners, even though they were initially concerned that their regular paycheck was gone, once they took over the business they realized that being self employed is more stable than relying on a company paycheck and the rewards are greater both in job satisfaction and income.
Written by Jeffrey D. Nyman – January 2016
Obviously there are many reasons why businesses don’t sell no matter the type of business however here are a few of the most common reasons: Seller not paying attention to the financial status of their company and just taking an income. Seller is oblivious to changes in their market such as the current trend in products or operations. Seller decides to try to sell during an extreme downward turn of the business. Location of business does not allow for the growth a buyer will want to see and therefore there is no perceived “scalability” of the business so buyers pass.
Reviewing your business’ current financial status with a market valuation and evaluation can help save you a lot of money in the end. Tip: If your business is on an extreme downward trend don’t list high expecting buyers to “make an offer” price your business to sell and stick to your price.
Original Article: 7 Reasons Why Some Businesses Don’t Sell By Tom Schramski, VERTESS | March 14, 2016
Make sure your funds are available and you provide proof at the time you write an
offer, this will strengthen your offer to the Seller.
Learn more about the buying process by contacting your local First Choice Business
If you have accepted an offer on your business and there are “material changes” to your business be forthcoming with the buyer, this could save you from problems down the road.
Learn more about the selling process by contacting your local First Choice Business Broker today.
If you are selling your business get your 2015 financial numbers completed ASAP, buyers will want the latest figures.
Don’t wait for your tax returns!
Be prepared to explain any significant dips or growth in your business.
Top 10 New Year’s Resolutions for Business Success
In looking at articles that are relevant for today’s small business owners this article called “Top 10 Business Resolutions for Business Success” really hit home. We found these resolutions for business owners in line with those highlighted in our FCBB New Year’s message. The article is not only focused on financial success it also focuses on life balance and happiness. Take a moment for you as a business owner and person to read these articles and set the wheels in motion to creating a fulfilling 2016.
Article Originally Published by Susan Ward – Thursday, December 17, 2015.
Comments provided by Jeffrey Nyman & Linda Hentges-Nyman – December 31st, 2015.
Click here to Read More
The lack of overhead, tellers, rents and all other expenses means that these banks can offer better interest rates, remain profitable and offer customers their electronic platform. Deposits are still insured by the FDIC so they are relatively safe and these banks have provided ATM access. If you want to talk to your favorite teller, this may not be for you, however if you prefer to do everything online, this may be for you. Just be certain that you are dealing with a legitimate bank. For more information, Melanie Hicken from CNN writing for the Hartford Insurance Company offers more insight into online banks. Click Here to Read More!
Are you as ready to sell as you need to be? Sellers need to be mentally and physically ready to sell their business when they go on the market. Be prepared for a buyer to ask you the “tough” questions:
Why are you selling when you are making money?
Exactly how did you arrive at the income you are quoting?
Often sellers speak in generalities however buyers want details.
Be prepared! Learn more about the buyer’s questions and the selling process by contacting your First Choice Business Broker today.
Many business owners have businesses that are asset rich but cash poor. Richard Parker has written in his article “What’s More Important, Assets or Income?” how he believes that assets are important but cash is king. The article exemplifies that a bank wants cash payments not assets for payments. The reality is that the assets of a business are impressive when used in combination with a good income statement especially when applying for a loan. This article could be a wake up call for business owners who have built up their assets but have a shortage of cash to run their business.
Read more of the article Here!