Blog for Business Buyers and Sellers

As someone who regularly contributes to this business brokers’ blog, I try to keep up with the latest trends on business valuation, marketing and negotiation, but it’s rare that I speculate on who should become an entrepreneur. Just like most of the brokers I know, I believe that people can successfully start a business at any age, but a recent article I read there are some key generational differences in how people approach business ownership.

For those of us who have never visited Japan, there is a certain mystique that surrounds this culture.  It could be their Zen style of decorating, their keen sense of automobile design, or just the sheer ingenuity of sushi ; or perhaps it’s the kimono dresses and yukatas worn by both men and women.  Everything about the daily lives of the Japanese seems to have been contemplated and perfected, from Ikebana gardening to Feng Shui design, Japanese disciplines are very deliberate and steeped in symbolism.

Women in Japan have had a greater influence on Western fashions than some might think. Ever since kimono dresses were first brought back to Europe and the United States, fashion designers have been intrigued by the simplicity and grace of these garments.  The T-shape of the design is just the beginning of what makes them so unique.

Have you always dreamed of owning your own restaurant, but you never seem to hear about business opportunities in your area?  Just like look for a job or buying a new home, finding out about business opportunities is now something that is done on online, most often in on an FSBO website.  Not every business directory website is designed for for-sale-by-owner properties and businesses; some are managed by a broker who wants to drum up new leads for himself.  But if you really want to find the best deals on a bar or restaurant, you need to look at a website that specializes in FSBO opportunities.

Just like in the real estate business, it would seem that FSBO business opportunities would be preferable to working with an agent or broker. In reality, FSBO opportunities only work well in situations where the buyer is already familiar with the industry, the business and financing.  For example, if you owned a few dry cleaning shops already, and wanted to expand and buy another one, then it would make sense to look for FSBO opportunities.  First of all; they’re likely to have a lower purchase price than those being sold by a broker, and secondly the transaction may go a lot faster.

If you are in the process of buying or selling a small business, there are several factors to keep in mind. Not all of them will apply to every situation, but whether you hire a business broker or not, here are some valuable tips for the entrepreneur

It’s hard to believe that we’ve gotten to this point; but it seems like much of the first-hand knowledge available for entrepreneurs no longer comes from the business section of your local bookstore.  Smart business owners are learning to find the information they need from other sources; and this business broker’s blog is one of them.  When it’s time to start searching for a new business, or time to list a business for sale, where to entrepreneurs go?  They go to the Internet, of course.  With so many online directories competing for page views, they are attracting viewers with interesting blogs.

When you’re buying a business for the first time, it may be tempting to believe everything the current owner tells you; particularly if they seem trustworthy and honest.  But in an economic downturn it’s important to get a second opinion about the true value of the business.  The best business brokers will consult with a number of sources to find this information before they make a bid on your behalf.

When you are in the market for a retail business, it may seem easier than ever to find a listing.  Buying and selling a business may seem more like a “do it yourself” activity; but it is always more efficient when you work with a professional.  Retail business brokers have the resources, industry knowledge and abilities to help you get the best deal on a business.  They can also help you determine whether a business is worth the investment.

As a business broker, I deal with many different business owners, agents and consultants on a regular basis, all of whom could benefit from a better understanding of business valuation.  It always amazes me when I learn about the non-traditional methods they use for pricing a business for sale.  This may explain why just over 30 percent of all businesses for sale actually sell.  Considerations such as the available cash flow and the debt ration of the business must be taken into account when placing a value on a company.  Ultimately the structure of the deal and available financing sources may determine the price.

If you are an entrepreneur who is trying to sell an existing business, then you may already be familiar with the challenges of small business financing.  Selling your business “for sale by owner” may help you and the buyer save money on commissions, but what if the buyer cannot obtain financing?  Seller assisted financing is always a viable option, but it should never be done without a thorough investigation of the buyer’s creditworthiness.  In order to fully understand how you can sell your business on a “for sale by owner” directory, it’s important to learn how seller financing is usually secured.