Small Business Blog

Posts Tagged ‘Sell’

You want to start making money online but you have nothing to sell. A turnkey internet business can provide you with the perfect solution. Starting a profitable internet business is something that many people pursue to be able to start making money online. Read on to find out how to make it a success and avoid the many pitfalls.

If you have the drive, the ambition and the entrepreneurial spirit to start a home based business, then understand from the start that it is not necessarily easy going. There will be new skills that you will have to learn. Marketing something, a product or service, is how you start business on the internet.

Most people who start looking at internet business opportunities, or an internet business for sale, have no previous experience. They generally have no knowledge of internet marketing and usually have no experience of running their own business. In most cases, they do not even have a product or service they can profit from.

Their motivation and their driving force is purely financial. They want to know how to replace their current income by starting an internet home business. So with no experience and nothing to sell, they try to figure out how to start making money online.

At some point, a turnkey internet business will catch their attention. There is a good reason for this as this type of internet business opportunity is able to fill many of the gaps in their search. Before I continue I would like to make something very clear. I am referring to a fully operational internet home business. Not the single page websites that you see advertised for under !

Choose your new internet business wisely. Use your common sense when looking around. If your goal is to replace your current income, whatever that may be, then you are unlikely to achieve that by buying a cheap turnkey website that will teach you nothing about internet marketing.

I want to explain this once and for all: there is no magic bullet or shortcut to making money online. You can however stack the odds in your favour by surrounding yourself with the best resources, products and training available, to ensure you succeed and build a profitable internet business.

It can take far less time than you probably think to be making money on the internet. Just make sure that you do your research and find a company or individual that can offer the best training to make your turnkey internet business a success. As long as you are willing to take action and implement what you are told to do, your business sales will quickly grow so you are able to replace your current income.

Most businessmen sell a business only once or twice in their lifetime. Selling a business may be the most difficult task for a businessman who might have taken years to build a profitable and reputable business. When he puts it up for sale, he hopes to recover the price for all that he has put into it. Selling a business can be profitable decision or one that can result in the loss of one’s life’s work. It is advisable for businessmen to hire professionals for selling their business. If your business falls into the mid-market category and you aim to drive a strategic deal out of your sale, you will require an expert merger and acquisition advisor. But if your business belongs to the Main Street and you just want to get the best price for it, you might need a business broker. Below, we discuss some of the differences between the two professionals, which can help one decide whom to hire for selling a business.

• Type of Business
Business brokers specialize in what are called main street businesses, which could be in the range of 0,000 to 1,000,000 in revenues and include businesses like restaurants, dry cleaners, gas stations, convenience stores etc. M&A advisors usually take on businesses with larger turnover, like manufacturing units, technology firms, distributors etc. If the business to be sold is amongst main street businesses, the services of a business broker to sell the business would be appropriate, whereas if it is larger, then the services of a merger and acquisition advisor would be needed.

• Targeted Buyer
Business brokers target individual businessmen for selling a business, whereas M&A advisors are connected with corporate buyers, who seek a strategic reason behind a merger or an acquisition.
 
• Business Valuation
Business brokers generally apply “rule of the thumb” valuations for main street businesses to determine their selling price. Such valuations rarely vary. Merger and acquisition advisors are called in when there can be a broad interpretation of strategic value and rules of thumb do not apply. Large businesses generally have high components of niche services, intellectual properties, strong customer base etc, which make the strategic value for the business vary widely.

• Complexity of Transaction
Business brokers handle small businesses to sell and their clients consist of individuals. The process of selling the business is simpler as compared to larger corporations. Contracts for small businesses are straightforward and negotiations are based on the requirements of the seller, price and financing. For a merger and acquisition advisor, the target is a corporate buyer, who is an expert at M&A deals. Corporate buyers have different teams working for them like legal experts, investment bankers, valuation professionals etc. and their contracts are extremely complex. A corporate buyer sends in teams to conduct due diligence and examine the business to sell in detail. Hence if the business to sell is a large corporation, the seller will need a merger and acquisition advisor, who is equipped and experienced to negotiate with such pros.
 
• Volume of Clients
Business brokers represent as many businesses for sale as they can. For business brokers, it is a benefit to have many businesses listed with them when they are contacting individual buyers. Business brokers rely on mass email a campaign, posting on websites etc. and their attention is divided amongst many clients at one point of time. Merger and acquisition advisors, on the other hand, have an exclusive clientele of 3 to 4 clients per professional. With specific industry niches and a customized database of contacts, merger and acquisition advisors give their clients the personal and professional touch that they demand.

• Fees
Business brokers have a system of a minimum upfront fee plus around 10% of the transaction fee on completion of a successful deal. They do not charge monthly fees. Merger and acquisition advisors, on the other hand, charge a substantial upfront fee or a monthly fee in the range of 00 to ,000 per month. M&A advisors also charge a percentage of transaction value as fees on completion of the deal, which is decided on basis of the size of the business. Big Wall Street M&A companies are known to refuse transactions below million in fees.

Based on the points made above, you can decide whether to hire a business broker or an M&A advisor for selling your business. The major deciding factor will be the cost that you are willing to incur. Keep in mind that if you have a small business to sell, it will not be able to sustain substantial upfront as well as monthly fees of the merger and acquisition advisor. Hence it would be better to go for a business broker. Go for a merger and acquisition advisor only if you need to sell a large corporation with high intellectual property and niche services.

What’s the Process?

If you are looking for information on how to sell a business, here is a quick summary of the steps that are usually required.  Selling a business is a much more involved process than selling real estate.  It takes a specific set of skills to properly sell a business to get a fair value.

Listing your Business for Sale with a Business Broker

Meet with a reputable business broker in your area.  Talk to them about the sales process and what they will do to help you sell your business.  Listing your business with a broker is a good decision if you want to sell your business confidentially and want to use the resources of a professional intermediary to guide you throughout the process.

Determine a Selling Price

One of the first things that arises when people ask how to sell a business is the asking price.  This is something that a business broker can help you with for most businesses.  For larger or more complicated businesses you can use the services of a professional business valuator to determine the selling price.  You also need to think about what you are selling – for instance, are you selling the business assets or shares (there are tax implications – most small businesses are structured as asset sales though).  You also need to think about work in progress at the time of the sale and how that will be transitioned and at what price, inventory, accounts receivable, etc.  These are issues you can talk to a business broker about as well as your accountant.  Determining a selling price and what exactly is for sale is an important step in how to sell a business.

Marketing and Advertising

A business broker will plan how your business will be marketed and advertised with the end goal of achieving multiple interested potential buyers while maintaining the confidentiality of the business sale.

Business Information Profile

Business buyers will need a brief ‘snapshot’ of what your business is about – a small ‘teaser’ if you will, to help them decide if they want to learn more.  A business broker with the knowledge of how to sell a business will put together this quick (and very effective) brief snapshot of your business.  It is a short description with one or two lines of general financial performance.  Rest assured, the business identity is not disclosed yet at this point.

Upon showing interest in the business, a potential buyer would then have a conversation with the business broker about themselves, their objectives and what they are looking for.  The broker will ‘qualify’ and screen a potential buyer at this point.  If deemed to be appropriate, a business broker will invite the potential buyer to sign a non-disclosure agreement and then would present the potential buyer with a fuller information package on the business that would include a information on the operations of the business, number of employees, a brief summary of the financial performance and any other pertinent “general” information about the business.  This general information is under strict non-disclosure rules to help ensure confidentiality of the sale.  After reviewing this information, a potential buyer may decide if they want to take their interest to the next level.  This is a major way a business broker can assist you in how to sell a business.

Showing the Business to an Interested Buyer

Presenting a business to a potential buyer is a major step in how to sell a business.  It’s important to present an accurate picture of the business – blemishes and all.  Buyers can be jaded after a while and realize that every business may have their speed bumps so it’s important to be forthright and not sweep anything under the rug, so to speak.  This is, however, the time to ‘show off’ your business’s accomplishments and showcase the hard work you have done to make it a success – this is the time to put your best foot forward and, effectively how to sell a business by being honest – which can be refreshing to some buyers.  There will be a lot of questions at this point from the buyer – try to answer everything you can, within reason though.  It’s important to remember that there is a point where a buyer needs to make a conditional offer and satisfy themselves through the due diligence process.

Getting an Offer and Accepting an Offer

The majority of business offers are conditional offers.  They are can be conditional on many different issues:  confirming some facts during the due diligence process, getting financing, assuming leases successfully, obtaining franchise approval, etc.  A condition offer is usually made with a refundable deposit (if the deal does not go through) and is usually seen as being without risk for the buyer until they waive conditions and go ‘firm’.

Due Diligence

During the conditional offer phase, a business buyer will conduct their due diligence – which is a critical step in how to sell a business.  Here, the potential buyer will confirm facts, go through financials and review the overall business operation very carefully.  If there ever was a time for a buyer to be extra meticulous, this would be it.  The role of the broker would be to help in facilitating the process and be a go-between for the buyer and the seller. 
If the buyer satisfies themselves that everything ‘checks out’ during the due diligence process and waives the other conditions all that is left is to close the transaction – which involves signing documents through respective lawyers and exchanging money.

To buy & sell business leads, one doesn’t need to exert much, anymore. All one really needs to do is to start from category wise and methodological step taking. There are various products which are available online, with complete product information and details. Some of them which are used as per the industry norms on a very regular basis are food products and beverages, chemicals and fertilisers, jewelry, gems, hand tools, building and construction products, ayurvedic and herbal products, leather products and other accessories, paper and paper products, musical instruments, goods and supplies.

These products have several other essential products included in them which need to be further browsed for those searching for very meticulous results. In the same way, just as these products are established, there are other service categories also. Some of these service categories are media, advertising, packers and movers, trade promotion, travel, research and development, business facilitation and consultancy, domestic and household and emergency services. Once you have profound knowledge of the business opportunities it would be easier for you to buy & sell business leads.

There are number of B2B websites that helps in clearing the basic hurdles that customers face at the onset of the business. One is required to register on these portals either a buyer or a seller. After doing so, he can easily locate the all offers and buy offers. These trade portals which are developing day by day on the basis of import export and various other forms of trade are very essential when it comes to any process related to the buy & sell of business leads.

Even the international buyers and sellers can play a role in such portals because they can easily have the access to the global audience. Moreover, the steps needed to buy and sell of the business leads is very simple. For example, if someone needs to buy the leads, he needs to simply post a buy offer. By doing so, the buyer is actually asking the sellers to quote their respective prices for the products, their details and availability. Also, if it’s a seller involved, he just needs to mention his product details, the price and the availability. This kind of professional interaction and business platform is very essential for further future endeavours of the clients. Also, such one on one business dealings tends to increase the buy & sell business leads transactions too.

Leads play a very important role as they define the business foundations of the companies and their further advancements. But before buying or selling leads, it is also essential to check the reliability of these sites from where the information regarding the leads is extracted. In the same way, it is also very significant to understand the business catalogues, the foreign classifieds, country specific classifieds and trade shows to have more definite assistance. Thus, with technological advancements, the process to buy & sell business leads has become very dynamic and flawless so that more and more buyers and sellers can be integrated at a single platform.

The best way to get from under a bad business or business that is dying fast is to sell the business as quickly as possible, while still making a profit.  I know for many it is difficult to sell your business because you grow a personal attachment, but in some cases there are warning signs that tell you it is time to get rid of your business.  These warning signs often go ignored, but you should take heed.

There are several ways to sell a business.  You can place a classified ad in your local newspaper, place an ad online, word-of-mouth, radio spotlight, etc.  Regardless, how you decide to promote the sale of your business the first step is determining if a sale of your business is necessary.  Here are some warning signs that will tell you it’s time to sell your business,

1) Personal life getting in the way
If you have become overwhelmed with personal issues then it may be wise to sell your business.  If you are losing your family because of your business then you’ll need to decide which is most important to you.

2) Health related issues getting in the way
If you have health related issues which affects the way you do business or the business worsens your health problems then a sell of your business may be in order.

3) Financially impaired
If you are strapped for cash and your business is more of a debt than an investment then selling your business is a viable option to win back your finances.

4) Business inheritance
People inherit businesses everyday, but inheritance does not mean you are qualified to run the business.  If you inherited a business that you do not know how to run then it’s time to sell.

5) Lifestyle changes
If you have a new life which does not include your business then selling your business is the best option.  You may have moved, have a new addition to your household, or recently got married.  Whatever the case your business needs to fit in with your lifestyle.

6) Damaged brand
Have you damaged your brand name to the point of no return?  If yes, then it is time to let the business go.  It may be a hard sale because no one wants to buy into a business with a bad reputation, but if you get out early enough and lucky enough then you’ll make the sale.

7) No competitive edge
If you are unable to grab a competitive foothold in your market then it might be wise to sell your business.  If you’ve been in your market for years, but are still not known by industry experts or insiders — still unknown in the market as a whole, then your business is probably going no where fast!

Lost of interest
Maybe you’ve lost complete interest in your business and no longer want to pursue the dream.  Lost of interest happens for a number of reasons.  If this is the case, then selling your business is a way to profit from your lost.

9) Conflict of interest
If you have a business partner and the both of you are unable to come to terms or you two no longer get along then getting out of the business is probably a wise choice.  You can sell your half of the business to your business partner.

10) Business growth
I know the last thing anyone wants to do when they experience growth is sell the business.  Instead they should be thinking about hiring help, but some people are just not savvy or business minded and incapable of managing a large or growing business.  In these cases, selling a business is a wise option.

Getting out of a business earlier than later can save you a lot of money and heartaches.  You should always make the attempt to save a failing business or do
everything you can before selling your business, but at some point it becomes inevitable and a sell is the absolute must.  Taking heed to the warning signs above can help you make the right choice when considering selling your business.

Have you felt your message was insignificant in an over crowded market place? A client of mine said, “I’ll probably never write a book because there are already too many books on every subject I can think of.”

The truth is many successful authors have felt their message insignificant in the LARGE scheme of things. But at some point they had to realize what I’m about to tell you, “With all the great books in the marketplace, there’s only one voice that’s uniquely yours.

I am convinced there are people waiting for your perspective, your solution, or your message. They’re waiting to be inspired, entertained or helped by YOUR book.”

The way to make your book stand out in a crowded market is to target a niche market related to your book’s topic. Identifying a niche is really hot in the marketing world right now and rightly so.

Simply put, to target a niche market in your book’s topic area: Identify a problem/solution and research your competition. Then develop a different approach. With all the books in the world on your topic, it’s not enough to know the solution. You must present the solution in a different way than existing books do.

Develop a way of making your book different. You need a different viewpoint, a niche, or a different spin on perhaps the same information. Examine the problem again. Look at the solution your book solves with the goal of coming up with a way to present your knowledge differently than existing books.

Here are seven simple ways to do this:

Market Segment.

You can develop a niche by focusing on an occupation, sex, or age group, i.e. Lose 14 Pounds in 2 Weeks: A Guide for Women Above 40, Lose Weight Safely Before, During & After Pregnancy.

Broadening Market.

Consider appealing to a broader market: Lose 14 Pounds in 14 Days: A Guide for Working Class Men & Women.

Focus.

Attack a big problem by emphasizing a particular tool or technique that you have experience with. For example, show how heart attack survivors can lose 14 pounds in 2 weeks by eating only fish, white meats and walking 10 miles a day.

Program.

I love this one. Base your solution on the way you solve a large problem by breaking it into steps, i.e. Write Your Best Book Now: An 7 Step Program for book writing.

Expertise.

Base your niche on your market’s previous experience with a topic, i.e. The Last Business Book You’ll Ever Need!

Goal.

Organize your existing information around benefits of achieving the goal: Free Again, Healthy Again!

Affinity.

Perhaps you have a relationship with a high visibility organization that has benefited from your ideas; you can reframe your knowledge by leveraging off your association: The Bank of America Financial Program or the Southern Methodist University Weight Loss Program.

You may have noticed in each one of the above examples of the same market, the contents of the book would probably be the same! The books would contain the same basic ideas, suggestions, tips, etc.

For example, all the books about diets would probably stress the importance of eating right, choosing the right foods in right portions and daily exercise. Yet, each book presents a different viewpoint targeting a different market.

So BE BOLD; have no fear about approaching the same subject as existing books. Focus in on your unique ideas and viewpoint. Remember, according to the writer of Ecclesiastes, “There’s nothing new under the sun.”

Bernice Fitz Gibbon said so eloquently, “Creativity often consists of merely turning up what is already there. Did you know that right and left shoes were only thought up only little more than a century ago.” Now go start your successful book journey. Make it different. Make it count. Make it yours.