Blog for Business Buyers and Sellers

It’s hard to believe that the Internet has been around for only 15 years, and it has already pervaded almost every aspect of our lives.  From banking to shopping to education and communication, just about everyone is on the Internet on a daily basis. 

Starting the best online Internet business has almost become an obsession for some entrepreneurs, and the migration to the Internet has only just begun.  Still, finding the best online business to start always depends upon an individual’s unique interests and abilities. The key to being successful on the Internet is to use the technology in such a way that more money can be earned with less work.  The best online business idea is usually one that is global in scope; allowing individuals from all over the world to communicate and do business. 

It should come as no surprise that more and more entrepreneurs are looking to the Internet for business opportunities, but how do you know when to buy online businesses and when to sit on the sidelines?  With popular web sites changing on a daily basis, it seems like only a psychic could know enough to buy web businesses and make a profit. But some entrepreneurs have found a way to make it work.  Here are some of their secrets.

Starting a successful online business requires at least some knowledge of the current state of the industry, and a quick method of deciding if it will work well on the Internet.  Here are some ways to get the information you need before investing.

In this questionable economy, many people are hesitant to buy an existing business for sale, buy a franchise, or buy anything else for that matter.  Without a doubt, the economic picture isn’t encouraging, which makes it tempting to stay away from any new or risky investments.  But as a business analyst and consultant, I would definitely buy a business for sale, as long as it meets certain criteria.  One of the best ways to evaluate the health of any enterprise is to see it in action.  For this reason, an existing business is a lot less risky than starting a brand new venture. 

With so many options available to entrepreneurs, it is difficult to decide between existing businesses, franchises, home-based businesses and start-ups.  Under normal circumstances, a smart and talented business person could buy a for sale businesses assets or buy a business for sale without worrying about failure, but today’s entrepreneur needs to be much savvier. 

Regardless of how the company has performed in the past, at least an existing business will have a history from which to make the right decisions.  In many cases, investors look for a distressed business for sale, buy it, and then make a modest investment in its growth; and improve it enough to sell it for a short-term profit within a few years. 

Instead of developing a brand new product or service, marketing it, and then seeing whether people are willing to pay for it, today’s smartest entrepreneurs are buying up existing businesses that have a strong upside potential.  If you are interested in finding out which businesses are on the move, you can find valuable research, learn about current trends, and buy a business for sale on a Business FSBO directory. 

Selling a restaurant can be surprisingly simple.  As long as it has a loyal following, a good reputation, and the potential for future growth, finding a buyer is never the issue.  However, sentimental ties can make it difficult for some restaurant owners to separate themselves and their emotional ties to the business from the cold, hard facts involved in transferring ownership.

Owners who are looking to sell a restaurant may find it difficult to deal with potential buyers whose only goal is to fault and lower the price.  Potential buyers may pick apart restaurant’s menu, operational procedures, décor, or location.  In some cases, it is easier to deal with a business broker, who will help you get the best deal, minus any emotional upheaval. 

Selling a restaurant?  Time to get organized

If you plan to sell your restaurant, it may require some thick skin and getting organized with your time. Selling a restaurant takes time, and it could impact your ability to manage the day-to-day operations of the business.  Some sellers hire a consultant, or ask a business partner to screen potential buyers.  Remember, the buyer or his or her agent will want to review every detail of your bookkeeping records, which can be a very time-consuming and exhausting ordeal.   While attempting to sell the restaurant, you cannot afford to compromise on quality or sacrifice profits.  Even if a potential buyer is anxious to learn about the business, be sure to schedule meetings outside of your busiest mealtime hours.

Agreeing on a price can be another obstacle to selling a restaurant.  It may take some aggressive negotiation on your part to ensure you do not undervalue the real and intrinsic assets of the business.  Even if after a buyer and seller come to an agreement on price, it can be tough to hold the transaction together until the closing takes place.  For this reason, be sure you are working with a well-qualified buyer who has adequate cash, and be willing to offer seller-financing when necessary.

Be careful of buyers who are looking to turn a quick profit by buying and selling your business.  They may try to bully you into a lower price by undervaluing your business assets.  If you get a bad feeling about a potential buyer, remember, you are not obligated to make a deal unless you are comfortable with the offer. 

Selling a restaurant may seem like a major ordeal, but with the right preparation it can be a lot less stressful.

Whether you are new to business ownership or you have decades of entrepreneurship under your belt, there are several programs available to small business owners.  Before your buy a business or start browsing the Business FSBO directories, it pays to investigate which local and federal assistance programs are available to you.

Here is a sampling of what the SBA can do to help you with your new business:

Getting certified as woman-owned or minority-owned business

Becoming a certified women-owned or minority owned business can draw a lot of new clients to your doorstep.  In order to become certified as minority-owned, the business must be owned and at least 51% controlled by one or more minorities.  Women-owned businesses are self-certifying, so no paperwork needs to be filed.  Find out how your state and local government regulates this process by visiting their web site.   The SBA offers a Business Development Program to assist small businesses with owners who are socially or economically disadvantaged.

Getting a small business loan

SBA offices throughout the country offer assistance in preparing the documents required for a small business loan.  These documents include the purpose of the loan, financial statements (for existing businesses) or a projected opening-day balance sheet (for new businesses), details of the lease, the business owner’s investment, and projections of income and expenses.  If for some reason your loan is not approved, the SBA may ask the lender to reconsider under the SBA’s loan guaranty program.  While this process may take up to 10 days, but your business must be for profit and not exceed the SBA’s business size guidelines. 

Finding an investor for your business

The Small Business Investment Company (SBIC) is a venture capital fund made up of privately owned investment companies who make capital available for small businesses. SBICs are licensed and regulated by the SBA and they are incented by the ability to share in the success of the small businesses they fund.  Contact your local SBA office for more information about these programs.

Finding the right businesses to buy

If you are looking to acquire an existing small business, consider searching on a “Businesses for Sale by Owner” (FSBO) directory.  Here, you can learn first-hand from the existing owner about any SBA programs they already use.  Plus, you can be one of the first to find out about new business opportunities in your area.

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Click to contact us for help buying or selling a business.  Since 1980 we have been in the "business of business." We are a professional company specializing in bringing For Sale By Owner Business Buyers and Sellers together. Being one of the Nations leading firms in our industry, we are best equipped to help you because of our background and years of experience in working with business buyers Nationwide and businesses of all sizes and types. Your business purchase or sale information will be handled by experts and conducted in a confidential manner.

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