Buying or Selling a Business

This brief roundup will give you the basics for buying or selling a business. Buying a Business It is a fair assumption that when an operating business is purchased, the intent of the buyer is to acquire a present or prospective profit generator – a known entity that will provide a reasonably predictive return on the investment. Buying a company is much like courtship. It is a process not known for rapid conclusions. Done correctly it is a long process that requires a great deal … 
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International Trade Resources

International Trade Resources:   Int’l Trade terms are called Incoterms. For a definition of terms, see: http://en.wikipedia.org/wiki/Incoterms Letter of Credit (Description) A Letter of Credit is a binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. A letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has to present to the bank with the … 
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So Just Who is Your Customer Anyways?

  Embarking on an entrepreneurial endeavor is no easy task. Figuring out who is your customer, who is going to buy your product or service can be even harder. At first thought you might think, “well everyone is a potential customer,” but is that really the case? Often times if you really reflect long and hard on the product and/or service you are offering to the world, you will start to see some clearly defined characteristics of what your customer looks like, acts like, and … 
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Four Biggest Myths about Websites

This brief explores the pros and cons of the Four biggest myths held by business owners about web sites.  I can’t do a web site myself. Yes you can by using a “site builder kit” like Wix.com Not if you want a site to perform custom functions. Kit sites either simply can’t be or are very poorly optimized for search engines. Web sites are expensive to develop. No they are not. They cost from $0 to $100 per month including development, hosting, and monthly maintenance. … 
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Selling a Business

Businesses are sold for all sorts of reasons. If you’re considering the sale of your business, ask yourself the following questions: What do you want for yourself, and for your employees, as conditions of the sale? Are there any family members that might be interested in continuing the business? Is there the possibility of an employee buyout? Do you want to work for the company after the sale? Are you ready to retire, or is there something else that you would like to do? Could … 
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Finance Your Business 2: Investors

There are four main types of investors for startup businesses: yourself, friends and family, angel investors, and venture capitalists. “Crowdfunding” is a way to cast a wider net for angel investors, and is described in Brief 05.10. Within these categories, an investor may be accredited or unaccredited. To be accredited, an investor must meet certain criteria on net worth and income. At this writing the requirements are on the order of $1m net worth and/or annual income of $200k. There’s an exemption from strict security … 
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Financial Issues for Small Business Roundup

Having a firm understanding of the various financial issues your business faces can be the difference between thriving and just surviving. This roundup #2 of Financial Issues briefs will answer many of your questions. Our previous post can be read here. Key Financial Ratios Financial ratios are designed to measure aspects of financial performance. These ratios can be meaningful used alone, but are generally more useful when compared to other companies in the same or similar industries. These comparisons will identify variations from the norm … 
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The Elevator Pitch

What is an elevator pitch? An elevator pitch is an overview of your business that can be conveyed within 30 seconds (30-80 words) during the ride of an elevator. It should leave your listener wanting to know more. Elevator pitches can be written for products, people or businesses. Why would you want an elevator pitch? There are a variety of advantages in defining your elevator pitch or mission of your small business and much of your marketing efforts will be based around this. Without one … 
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Leasing Versus Buying Equipment

Should you lease equipment for your factory, warehouse, store or office, or should you buy it – – assuming Your capital is limited and you must borrow or lease to finance the purchase? Factors Favoring Leasing Leasing eliminates the immediate need for sizable amounts of cash up front. There is no down payment, other than one or two months of prepaid rent. Lease charges are spread over a comparatively long period of time; individual payments are usually lower than service on debt. Restrictions placed on … 
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Sales Agreements for Service Providers

Whenever a supplier of services sells to its customers it is vital that a written agreement be established spelling out the specific services to be provided, when, at what price and other pertinent terms. This written document takes the form of a Sales Agreement Contract. In many instances this Sales Agreement is the supplier’s signed proposal with a place for the buyer to sign his acceptance of the proposal. The key elements of the Sales Proposal are: Supplier’s company logo Contact information including company name, … 
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