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Other Added - Cashing In Your Business?
More women are leaving the corporate world to become entrepreneurs. For the past two decades, majority women-owned firms have continued to grow at around two times the rate of all firms. According to the Center for Women's Business Research, the number of majority women-owned businesses increased 42% between 1997 and 2006.One of the concerns faced by a woman business owner is finding the money to start or grow her business. While some women-owned businesses are funded through a small nest egg, others may turn to additional means of finance.Here are 5 tips on funding a woman business start-up.Borrowing From Family And Fr
Giving out Free Bonuses, your Pathway to SuccessDon’t you feel good when someone gives you something free for making a purchase? Doesn’t it make you feel great about the product when you get an additional something besides what you actually paid for? Well, most people feel that way as well. This shows what a great way it is to add to your customer satisfaction by just throwing in a free gift or bonus. Further more, some people might even purchase your product when they see the huge assortment of gifts and bonuses you are offering, some even with no intention to use your original product in the first place! This greatly increases the
Its almost 9 PM and you've got just one more order to fill because you promised “Henry” you'd have his order ready for pick up first thing tomorrow, Henry's an old customer, a good friend and has a machine down and the part we stock will have him up and going again. But the nagging thought comes back again . . . . “after 27 years I don't need this anymore, I'm gonna sell it!”
There are many different reasons why businesses are sold. But of all the reasons, the three most popular are retirement, burn out and major illness.
When you own a business and have fought the battle over the years, the time does come when you're ready to cash in the business and turn it over to someone else. You've built your dream, watched it grow and it has taken good care of you. Finally you've talked to your family, your CPA and your attorney and decide to do it. You place your business on the market! About a year and a half later, after negotiating with two individual buyers and two corporations, you do the deal with “Pete,” the nice guy from Cincinnati. Pete seems to be a good person, has a nice family and the proper background for the business. You've structured the deal with a good down payment and have agreed to finance the balance with interest over a seven year period. Sweet deal, right? Well, maybe.
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in t
Finding products to sell is fundamental to those who have Internet stores, auction sites, or sell through stores such as Amazon or Ebay. However, it may be difficult to determine where you will find those products to sell.There are a number of different ways to find products to sell as well as many scam artists who like nothing more than to prey upon unsuspecting but well-meaning storeowners. Whether selling online or in your hometown, you need to check out every wholesale company or drop shipper with the Better Business Bureau and Rip Off Report to make sure you are only dealing with reputable companies.Drop shippers are in
When you own a business and have fought the battle over the years, the time does come when you're ready to cash in the business and turn it over to someone else. You've built your dream, watched it grow and it has taken good care of you. Finally you've talked to your family, your CPA and your attorney and decide to do it. You place your business on the market! About a year and a half later, after negotiating with two individual buyers and two corporations, you do the deal with “Pete,” the nice guy from Cincinnati. Pete seems to be a good person, has a nice family and the proper background for the business. You've structured the deal with a good down payment and have agreed to finance the balance with interest over a seven year period. Sweet deal, right? Well, maybe.
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in
Data entry is the core of any business and though it may appear to be easy to manage and handle, this involves many processes that need to be dealt systematically. Huge changes have taken place in the field of data entry and due to this handling the work has become much easier then before. So if you want to make use of the best data entry services to maintain the data and other information about your company, you must be ready to spend money for this. It is in no way an attempt to say that data entry services are costly, but just to say that good services will not come that cheap either. You just need to decide if you will hire professiona
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in
Estimating a residential construction job is very different from a commercial job. Often the contractor is frustrated with collecting data to create an estimate that is low enough for them to win the bid and high enough for them to make a profit.before a contractor even begins the project it is a good idea for him or her to look at the area that will be built upon to make sure that there are no environmental hazards, or that there are no structures that may have to be taken down. These factors not only cause delays, they can cost additional money.when a contractor is creating an estimate he or she must take into consideration
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in
MERRITT ISLAND FL-Most folks would be a little annoyed with a windy rainy gray Florida day. But not Tinho Dornellas. Tinho is an expert windsurfer and his life’s dream is to teach you how to be a windsurfer.This thirty-nine year old father of two boys operates out of an obscure Merritt Island, Florida shop in an area where most folks would think of storing furniture rather than buying a sailboard and learning how to use it.His shop is a few miles down the road fromthe legendary Ron-Jons Surf Shop in Cocoa Beach, Florida. But, Ron-Jon’s isn’t interested in Tinho’s share of the adventurous windsurfer market. To them, w
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems down the road. Let's see why.
Details Of The Deal
After lengthy negotiating, the final price for the business was $380,000. The price included the building and land, shop and office equipment, all 4 vehicles and the complete inventory. Pete will provide a down payment of $125,000, leaving a balance to be financed (by owner Jack) over seven years at 10% interest. The owner was not looking for an “all cash” deal in view of tax implications. After calculating the finance balance of $255,000, the monthly payment for the new owner comes to $4,233. And that monthly payment doesn't seem that bad since tire sales and shop service have been steady and growing.
How Sellers Get Hurt
But . . . what if something goes amiss, say, 2 _ years into the payback period of the seller's loan? Like an economic or regional downturn, or losing one or more of the business's name brand tire lines, or one or two key shop people? These are problems that can have a direct bearing on cash flow and the ability of the new owner to service the debt. And if after several months of missing some or all of the loan payments and the loan goes into default, guess what? The original owner, Jack, may get the business back. And Jack most likely will not want it back for various reasons. Legally, the original owner will retain title on the business and assets until the balance to be paid has been satisfied. But from the time the new owner took over, the inventory may be depleted, the shop equipment abused, some of the employees may have left and the bank account emptied. W
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