Buying A Business - The Basics
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.
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.
The Advantages of Owning a Home-Based Business
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.
Start Your Own Business - What Does It Take?
If you have dreamed of owning your own business then you can succeed at it. It is possible for you to be your own boss, acquire more out of life, and feel more satisfied and fulfilled every single day. Often we pursue career opportunities only to realize that we aren't fully satisfied with what we are doing. We desire more out of life but are not quite sure what it is. And it can seem as if something is missing. If you feel like you are missing something in your life then it doesn't have to be that way. Being your own boss might seem intimidating but it shouldn't be. You can actually achieve that goal in a step-by-step fashion that provides you with an opportunity to grow and excel, and then coach and teach others to do the same. Being your own boss is an amazing feeling because it puts you in control of the income you generate. It also gives you the tools and strategies to create the life you desire and deserve.When you own your dream business that means you own a business that is built around your passion and purpose, a business that allows your gifts and talents to shine, and a business that makes a difference in the lives of others. And you can become your own boss for a very affordable investment.Now it is important to understand that becoming your own boss takes a lot of work and dedication. But it is extremely rewarding. If you are willing to put in the work and stay dedicated until you manifest your desired results, then you can be a very successful business owner. Many people dream of owning a business but are not sure how to bring that dream into reality. But that doesn't have to be your story. You can launch and operate the business of your dreams and have dedicated support along the way. It is your time to get off the fence about becoming a business owner and make it happen. An abundance of hidden possibilities are waiting for you.
The Advantages of Owning a Home-Based Business