Own Your Own Business and Live Happier
Whether you are starting your own business from scratch, going into a business opportunity, or buying a business, you need to have certain characteristics, traits, skills, and goals in order to succeed. So how do you know if you are ready to own a business? Basically, you need to ask yourself some hard questions and give yourself honest answers. If you don’t have the time and commitment to start a business, you need to look elsewhere for your income. You may be better served accepting a job with a company. There are those that need structure and a job is the place for them. But, if you are inclined to owning your own business, then lets discuss some necessary items. First, you need to have a plan. The plan can come from your own imagination, the franchisor, or the company offering the business opportunity. It doesn’t have to be something set in stone, and it doesn’t have to be fancy. It just needs to be a basic outline of what your business will be, what you will sell, how you will sell it, and what your operating costs will be. It is recommended that you include at least three months of operating expenses into your start up costs budget, which also needs to be determined in your plan. The next item is paramount to your success. It is the infamous 4 letter word and that is work.
It is everyone's dream: roll out of bed at the crack of noon, stumble to the front door in your PJ's, pick up the newspaper and check the mailbox. And in the mail, there is a check waiting for you - maybe it's $1,000, $10,000 or even $100,000!Such things only happen in fairy tales, right? Wrong! But there are some things that have to happen first:1. You must have the discipline to actually WORK in your business. Most people get up and go to a job. It becomes a habit, a safe routine. When you have your own business, there is no one telling you what to do or when to work. It's easy to get way laid. Many business owners create systems and a schedule to replace the routine for a 9-5 job.2. You must be willing to deal with the insecurity of no steady paycheck. It's usually a good idea to have at least 3 - 6 months reserve to cover living expenses while you're getting your business off the ground. Or phase out your 9-5 job gradually. 3. There are lots of details that you must learn about running a business that have nothing to do with making money: filing quarterly estimated IRS returns, business licenses, filing payroll taxes, withholding, unemployment, workmen's comp... The list goes on.4. By all means, read the book E-Myth Revisited by Michael Gerber. Owning a business is all about systems. Just because you love to bake, it doesn't mean you should own a bakery.5. Another 'MUST READ' recommendation: You Need To Be A Little Crazy - The Truth About Starting and Growing Your Business by Barry Moltz. Barry gives the inside story of the ups and downs of being a business owner. The toll of being a business owner effects not only you but your family as well. Barry describes the stress of being self-employed can have on your health and on your relationships.6. Be sure you not only know what you're getting yourself into - but make sure your family and spouse understand and are willing to make the sacrifice as well! They need to be prepared for you to work harder than you've ever worked before--AND without a steady paycheck. Without the support of those who love you, you will never succeed.7. Having a business that doesn't require a "bricks and mortar" store or office is a huge advantage. Overhead is cut to a minimum. Maybe it's an Internet business where you sell "moon cookies" on line and a fulfillment center warehouses the product.8. Not having inventory is a huge advantage! Not having precious capital tied up in inventory gives you a huge safety net. Starting with a service vs. a product can be a much easier start-up financially - IF you have experience and a "following" of clientele in the service you're providing. 9. Multi-Level Marketing businesses are a great way for a beginning entrepreneur to get started with a very low entrance barrier. "Rich Dad" Robert Kiyosaki has outlined the benefits of this type of business in his book The Business School For People Who Like Helping People.10. Brad Sugars, who markets a program called "Billionaire in Training" recommends buying an existing business vs. starting a new one. Acquiring new customers is most expensive when you have none. Buying an existing business gives you a built-in client base.
Buying a Business - The Traps and How to Avoid Them - Part 1
If you'd like to be "set for life" as the owner of a multi-million dollar business -- sitting back and collecting a six-figure salary while other people (who have several years of business experience) "run" everything for you -- then this article will show you how.Listen to this: I've bought over 200 businesses in the past 40 years. In the first 25 of those years, I got owner financing. I got bank financing. I had vendor financing. I did all sorts of things. But, what happened was, I didn't realize there was investor financing. I actually discovered this on complete accident because I needed financing to buy a business in Mexico.You see, nobody was going to finance anything in Mexico. Even today, they won't. So, I had to go back to the investors we had and talk to them. I didn't even realize they would do something like this. So I just sort of lucked into this. And now, for the last 25 years, we have never gone to the bank other than for a line of credit. We don't ask for owner financing. We pay 100% cash on the deal which means the seller gives us a better price than a small cash price. We don't have to qualify. We don't have to give our financial statements. We don't have to do anything. In fact, the average seller will tell you they don't care who you are or what you are if you give them all cash. So what happens is, if you bring an investor in, as opposed to all the other types of financing, it's a lot easier way to go.The other thing with an investor is most of them will ride with you for four or five years. In other words, if you show them what their share of the profits are going to be for four or five years, many of these investors do not ask you to pay a return every month or every quarter, which means you have all the cash available in the business for a four or five year period to expand it. It's really a fantastic way to go, but I want to tell you for the first 25 years, it never dawned on me because I didn't know how to find investors.But now, that's what I use almost exclusively. And I find it's not only cheaper (almost free), but it allows me to buy more businesses and have less work. Reason why is because investors will only put up money for businesses worth a million dollars or more, with an experienced management team already in place. Which means, if you show up, you're almost in the way. The management team you're paying doesn't want you there mucking things up. They would rather you be out playing golf or something. It's a great way -- the only way -- to do business. If you want to pull your hair out buying sandwich franchises and "mom and pop" donut shops, that's your choice. But I'm here to tell you from 40 years of experience buying businesses, it's actually faster, easier and cheaper to buy large, multi-million dollar businesses, where your only real "job" is to cash the checks.
Own Your Own Business and Live Happier
When buying a business, there are some key steps to follow that will enable the process to proceed more smoothly.Which Business to BuyStart with deciding what type of business that would best suit you. You are most likely to be successful at a business in which you can make good use of your skills and experience. In addition, you will want to select a business that you would be passionate about since you would be investing not only financial resources but a good deal of time.After deciding what industry you want to invest in, consider what size business to search for. Analyze your management skills as far as the number of employees, volume of sales, location, etc. Of course it will also be necessary to explore financing options as well as your own financial situation. This will enable you to see what you will be able to afford to pay for a business.The Search Take your time in this business buying step to ensure that you are researching all avenues so that you find the best overall fit. Consider enlisting a business broker to help you. Also, there are many resources on the Internet that can help you with this process.Investigate the BusinessOnce you find a business that you believe would be the best match, there are several items to consider. Be sure to do extensive research on the business and its history. Discover the true reason the business is for sale by speaking with people who are familiar with the company such as local realtors and other business owners in the area.Before meeting with the seller, do some reading and/or speak with a professional as to what is appropriate to say or not to say at this point in time. The seller will also be considering how the buyer comes across as a prospective owner of his/her business.When you meet with the owners, you will need to make sure you find out what is included in the asking price. Also, determine if the assets are clear of debt.Examine the financial statements of the business, preferably with the assistance of an accountant in order to determine the past performance and the stability. If you are not certain that you are getting a clear picture ask for the business records and have your own audit done.You may also wish to ask permission to sit in on the business for a few days. This way you can get a good feel for what it would be like to be the owner of this operation.Pricing and FinancingThe next business buying step will be to determine what the business is actually worth. Analyze the worth using several methods including book value, modified value and replacement value. Find out how the seller derived his/her price and compare to your calculations. Then make sure you can really afford the business. In addition to your own contributions, see what financing options are available including loans from banks and credit unions. Family/friends may also be willing to invest.AgreementsWhile investigating the business, you may have a contract attorney draw up a letter of intent (LOI). This is a document that is a formal understanding that you and the seller are in negotiations, not a binding contract. Therefore if you should find anything you dislike, you don't have to go any further in the process.Finally if all goes well, have your attorney draw up a final contract. The attorney will specify all the details of the deal. Then you will be ready for closing.After all these business buying steps are completed and everyone signs on the dotted line, you will be ready for the next big step of owning your new business.
Buy A Business Over A Million Dollars-With No Money, Credit, Banks Or Prior Business Experience