Type of Business: November 2018

Open Or Closed Book? When It's Good Sense to Tell the World You're Selling Your Business

If you are considering selling your small to medium sized business, you no doubt want to ensure you get your business marketed to the right people and as clearly as possible. Many businesses rely on total discretion and confidentiality when they go up for sale, in fear of losing a client base, a reputation or even stock market value. However, there are many instances where it would help your cause a great deal if it was well known that your business is up for sale. Let's look at some good examples of when it is most likely safe to make a big noise about your sale and ensure your business gets noticed on the marketplace.

The obvious industry is the food sector. If you run a search on the major business for sale portals, you'll instantly see that there is a whole minefield of cafés, diners, restaurants and take away outlets up for sale. These kinds of businesses change hands quite often and are a good business to sell because in most cases, they already have a footing in the local area, are known by the local residents and should already have a loyal customer base.

More importantly though is the fact that anyone becoming aware of this kind of business being sold will make very little negative impact. In fact, when a restaurant or café changes hands, it can have the opposite effect and create a new positive, fresh outlook for customers new and old. With so many on the marketplace, there is a lot to choose from so any potential suitor effectively has the upper hand because they have so many options available to them. This is why in a situation such as this, you need to make as much noise as you can. For every café up for sale in any town or city, you can count several others will be too. Businesses such as these change hands often because they require a very intense level of dedication from the owners. Some go into running a business such as this with a great deal of optimism and enthusiasm, only to find that its really hard work and too much to take on. Within a year or two, they've had enough and are ready to move on. Sound familiar?

If this is you, then you are not alone. Any business in the food industry is tough graft and like every other business in this sector that is up for sale, you need to ensure your marketing doesn't reflect this and that your business for sale appeals to these fresh, enthusiastic and energetic individuals. So if you have an advert online or are about to embark on advertising your business, try to spend some time getting your advert up to scratch.

Take some good quality photos of the premises. But make sure you clean the place first and make it look great. Remember, you're selling a dream! Also, take the time to get your figures in order, especially profit margins, turnover and any other information that will help really sell the dream to the next owner. If you want to sell your business in an already saturated industry sector, you need to make some serious effort. One big push will help you sell it faster. So don't put an advert online with only a few poultry lines of text. Really give the full details and take as many pictures as you can to give any interested parties a real feel for the place.

And finally, don't get greedy. Have your business valued correctly and put it on the market for what it's worth. If you need some advice on this area, read another of my articles that covers business valuations and how to price it correctly.

Selling a business is a tough task and it is time consuming. But if you want to get it sold, you need to put in the time and effort. If you are based in an area surrounded by other businesses, it might not be such a bad idea to tell your neighbours of your intensions. They may know someone who is looking to open a business such as yours. Your direct neighbours may even want to buy you out of your business so that they expand their business across your premises. The more people who know, the more opportunities that could arise. If you are certain that disclosing your intensions will have little impact on your business then tell the right people. Get on the search engines and start submitting adverts to the business for sale directories.

There are numerous examples of businesses that I have seen up for sale and quite clearly are happy to disclose the business name, location and price. Why? Because it sometimes pays to get it out there so that word can spread fast that an opportunity for someone else could be waiting around the corner. Example businesses include petrol stations, convenience stores, pubs and clubs, small boutique stores, shoe stores, take away and sandwich bars. Even tourism related businesses.

The One Question That Many Small Business Owners Fail to Honestly Ask

Small business owners and entrepreneurs are hard working with 70 to 80 hour workweeks. Yet sometimes these industrious, enterprising, individuals believe their sweat equity is equal if not exceeds actual dollars and cents. The reason for this gap between what is believed to be true and what is actually true is because there has not been a succession plan based upon an objective business valuation.

Recently I interviewed Mark Machnic who is not only a CPA, but holds additional credentials including CVA, CFFA, CFDP and CDFA and is the principal for Business & Matrimonial Valuation Services, LLC of Schererville, IN. Mark's expertise allowed me to ask him a series of questions specific to these two often ignored aspects of small business management:

Business valuation

Succession planning

Why is it so important to understand business valuation?

"Most people do not understand the true value of the business. From my experience, people think the business is worth the net income any given year. They fail to take into consideration the goodwill aspect of the business, past earnings, and projected future earnings. Also, the process of valuing a business involves comparing the subject company to its industry peers by utilizing various databases."

What part does business valuation play within succession planning?

"The business valuation can be used as a benchmark for succession planning. The projections made within the valuation can be used as a trigger mechanism for recruiting the most qualified employees and for helping train current employees for advancement into more responsible positions. The valuation can be used to set goals based on projections of future earnings."

What is the most consistent misunderstanding that business owners have respective to the value of their business?

"Most business owners do not take goodwill into account when valuing their businesses. They tend to focus on the tangible hard assets instead of some of the intangibles such as goodwill. They also focus on the current income of the company, not taking into consideration past earnings or the future outlook of the company."

Besides not knowing what their business is worth, what is the second most common mistake you observe with business owners and executives?

"From a valuation standpoint, business owners do not understand how to add value to their business. The goal of a business owner should be to build a successful business that will attract numerous potential buyers. They need to know how to increase the value of their businesses and also to "keep the house" in order at all times. A business owner never knows when someone will come in and make an offer."

Finally, what are some issues within the current economic environment that will require business valuations?

"Business owners or those in management roles may be looking to merge or sell during tough economic times. If the economy is causing a negative effect on a business, the owners look at their options. During tough economic times, the number of qualified buyers tends to decrease, making it more difficult to sell a business."

When you, as the small business owner, know the actual worth of your company, hire the best of the best (because your company can demonstrate that worth) and continually add value to your business, then you can be the Red Jacket in the sea of gray suits. Not knowing may place you with all those other failed businesses and you become one of the many and not one of the few to succeed.

Five Inconvenient Truths About UK Business Plans

I am a business advisor so I talk to a lot of business owners and it constantly astounds me how many do little or no planning. In the UK business plans are still not considered core tools for running a sound business. Without a plan, or at the very least an income, expenditure and cash flow forecast, it is very difficult to know how well your business is currently performing, let alone where it is headed.

Writing a business plan need not be a huge chore, there are plenty of good software programmes around, which usually include ready made business plans, to give you a head start. There are also plenty of professional business plan writers eager to assist. So why is it that the following five truths still prevail?

1. Many UK companies simply do not have a business plan

Not having a plan is like walking around in the dark without a torch. You may get where you are going but it will take longer and you will probably trip over several times on route.

I recently helped a business move from being loss making to making a good profit. All I had to do was forecast income and expenditure figures. It immediately became blindingly obvious that, unless my client put up his prices, he would continue to fail. A small price increase, against existing client accounts, soon sorted out his problem.

If he had an active, simple financial plan, which he could easily have put together using a good business planning software programme, he would not have got into difficulty in the first place and would have saved money by not needing my services.

2. Start-up businesses are often too optimistic in their income forecasts

We all tend to be over optimistic. There are plenty of high profile, high value projects that ended up with a price tag many time greater than the initial budget forecast - the building of the Channel Tunnel or the Millennium Dome (now the O2 Arena in Greenwich) are just two examples. Getting input from professional business plan writers is one way to deal with this problem.

Having an active plan also means that you can monitor actual performance against your plan and take action if you see that things are going off course.

3. Business owners do not know what is in their business plans

This can happen when professional business plan writers are brought in. The plan they create is fabulous, it secures the funds the business needs, but all too often the business owner never really understood what was in their plan, so it is of little ongoing use and their business risks going off track. If you hire in professional business plan writers ensure you understand what they have said about your business and that you know how to monitor your performance against your plan.

4. Start-up companies do a bad job of identifying their target markets

Perhaps one of the most tricky elements is identifying your target markets. It is not necessary to do lots of research but it is important to think deeply about what you know about the people who will buy your products and services. Who are they? How old are they? How wealthy are they? Where do they live? What do they like and dislike? Where and how to they currently buy similar services and products to those you will be providing?

If you have worked through the above questions and based your marketing strategy and sales forecasts on what you discovered, your plan will be stronger. If you also devise mechanisms for monitoring performance, based on the knowledge and assumptions behind your forecasts, you will have a much greater chance of improving your sales forecasts and marketing strategies, as your business develops.

5. Once UK business plans are written they just collect dust somewhere

Too many UK plans are filed on the 'don't bother to read this ever again' shelf. A business plan is a tool for managing your business performance. It needs to be kept up to date and used as a monitoring tool. If you took the wise decision of investing in good software to write your plan, you will have built in monitoring tools as part of the package. This makes it easy to monitor actual income, expenditure and cash flows against your plan, which is essential if you want to avoid unwelcome surprises or even failure.

In the current economic climate it is essential for all businesses to have plans and all UK business plans should be live documents. Time invested in developing your plan is only of value if you use your plan as a monitoring tool to help you manage your business. This is even more important in the current challenging economic climate.

Why You Need a Business Lawyer to Help You Start Your New Business

You've decided to start a new business. Congratulations! Where do you go from here? Do you hire a business lawyer or do you need an accountant? An accountant will certainly help you with your taxes when you are ready to do so. But how do you decide what kind of entity you should be? You've heard of limited liability companies, but you're not sure this works for your business. Everyone seems to have an S-corp. Is this what you need? What you really need is to find a good business lawyer. A good business lawyer will help you understand the myriad decisions you will need to make for your business and will help you to start off on the right track.

Depending on the type of business you have and the number of investors in your business, you will need to talk with a business lawyer about entity formation, copyright or trademarks, insurance and other ways to protect your personal assets. The money you invest in a good business lawyer at the beginning of your business, will save you significant money down the line. Here are a few ways a business lawyer can help you:

1. Entity Formation. In California, we like to advise our new business owners to form an LLC - a limited liability company (unless this is not available for your type of business, such as a licensed contractor). The main reason is simple: experience shows that most small businesses will not hold annual meetings and keep minutes. Failure to keep up corporate formalities as a corporation can have devastating effects. A creditor can "pierce the corporate veil" and a court could find you personally liable for the corporation's liabilities. With an LLC, the failure to have meetings and keep minutes is not considered a reason to pierce the corporate veil in an LLC. A good business attorney will talk with you about the type of entity right for your business and assist with setting up the company correctly.

2. Trademarks. If you work hard to come up with a name or design a logo, don't you want to protect it? By filing for a trademark with the U.S. Patent and Trademark Office, you can protect that name or logo. And a business lawyer will help you to understand the important of doing this first - rather than waiting until you have established your business. The worst thing you can do is spend a lot of money marketing your brand, just to find someone else has registered that name - or a similar name before you.

3. Contracts. Contracts for each small business is a must. Some people feel that they can download contracts from a website, but do you know who wrote the contract? Do you know who it was written for? What state law applies? It is not a good idea to start your business with a contract from the internet. Let a good business lawyer prepare the contract you need for your business. Intellectual Property. Is your business a media, design, or another type of creative business? If so, you will find it much easier to deal with trademarks and copyright protection registrations if you have a lawyer. Even if your attorney does not normally handle intellectual property, they will have referrals for you so you can find the right intellectual property specialist for your business. Normally, these will be people the lawyer has worked with before and can recommend based on prior experience.

4. Insurance. Insurance is required for a business, but it is not enough. You need to have a business entity to protect your home and personal assets. Hiring an attorney for your small business may not seem to be a requirement if you're not facing any legal battles. This is not true! You want an attorney who is familiar with you and your business, so if you do end up in a legal mess, they'll be able to smooth it out. Hopefully, before it ends up in court.

5. DBA. Some people use a DBA for their business name. This is good to have and a business attorney can help you with the filings required.

It is crucial for new business owners to hire a good business lawyer to assist them in setting up their business. You want your business to be successful, so be sure to start off with the advice of someone who understands what your business needs.

How To Start An Online Business and Some Online Business Ideas

With the state of the economy and thousands of people around the globe losing their jobs every day alternative sources of income are becoming more and more popular. The purpose of this article is to direct you to the right information that will teach you how to start an online business. Also I am going to leave you with some online business ideas as well as tell you things that you should avoid.

The internet is growing at a phenomenal rate every single day. There are over 700,000,000 people that have access to the internet daily. So with all the online businesses in existence we have only just scratched the surface of this incredibly fast growing behemoth. There will always be plenty of room for anyone that wants to learn how to start an online business. I hope this article helps inspire you to come up with some online business ideas of your own.

I have been on the internet marketing for approximately 2 years now and I am here to tell you that it gets more exciting every single day. I can hardly contain myself when I think about all that is going on with the internet and the changing economy. I know people become apprehensive and afraid when they think about the state of the future economy however I cannot help but be ecstatic. The reason for this overwhelming feeling of euphoria that I experience daily is not only a positive attitude which helps by the way, but the knowledge that the economy has always gone up and down usually in 7 year cycles give or take a few years. Also is my belief that where we are going is exciting and filled with unparalleled opportunity. Let me explain.

What we are going through I believe is what is called a paradigm shift. The world we live in has been and continues to become an information based society. The way we communicate is almost instantaneous in most cases due to technology and the internet. We can talk to people anywhere in the world in mere seconds with our computers and an internet connection.

That is the beauty in learning how to start an online business. Here are some of the benefits.

Unlimited Income Potential

Absentee Ownership

Freedom To Live Anywhere And Anyway You Want To (provided you have internet access)

Inexpensive Start Up Costs

Some Of The Best FREE Training Available If You Know Where To Look

You Control Your Time And Income

Easily Work From Home

Unlimited Supply Of Prospects

These are just a few of the benefits. There are many more of course as you will find out for yourself if you decide to head out on your own internet adventure. The possibilities are unlimited. You never know from day to day who you are going to meet. The world you experience on the internet is so much bigger than the world we go out into as a general rule. You can go anywhere in the world you choose in a moments notice. You will meet people all across this huge planet of ours. Below are some online business ideas designed to get you thinking about what you want to do and maybe come up with some ideas of your own.

Choose Your Niche

The first thing you need to do in your endeavor to learn how to start an online business is decide what your niche is going to be. There are 1,000's of things you could possibly do online. Affiliate marketing, network marketing or MLM (multilevel Marketing), eBay, ClickBank. ClickBank deals in all digital products such as e-books etc. You can sign up for an account and become an affiliate of the different products they promote. You could also create your own product. My personal niche is network marketing because I like the walk away income potential. The hottest things that sell on the internet are software and e-books.

Find The Proper Training And Support

The next thing you will need to do is find the right place to put your trust in for the correct training and support to help you learn how to start an online business. You can Google online marketing training. Just be very careful because I know this is hard to believe but there are those who just want to make money off you and do not care about your success. However there are many good marketers. Here are some things to watch out for

Wild crazy income claims: Make $12,248.56 in3 days etc.

No real product behind the promotion. Get details of the product and how it will be used

No congruent message. They use gimmicks to get you to click on their ad and when you get there what they are selling you is something totally different than what they lead you to believe.

No good iron clad guarantee. I know this is questionable however anyone serious business person should be willing to stand behind what they are selling 100%.

No testimonials. This too is something to watch for because there are those who get paid to give testimonials

The main thing to remember is that you have to do your due diligence to find that one individual that you feel comfortable with to train you. Go to a lot of sites and you will eventually see the ones that are good over and over again. See if their testimonials are verifiable. When you decide on one then stick with that one until you learn what you need to before going on to another otherwise you will end up with tons of e-books and courses that you download and none are used and you are even more confused than when you first started out. Keep everything you download saved to a file with that programs or the trainers name.

Another Thing To Remember is do not opt in to every offer you see that promises you to make a fortune online especially in an incredibly short period of time, not that that can't happen but that it is unlikely. Any business takes time, work and some investment. The internet is no different however you can start a business easier online than offline with a very small investment if you get the right training from the correct source and the rewards of owning an internet business as opposed to an offline business are phenomenal. You can start an online business and succeed. Like any other business it is a skill that can be learned. Realize that it will require some investment just like any other business also.

Do not make an investment in hosting for your website, when you are ready, or any other tool in learning how to start an online business that you are not sure you can keep. Once you start don't give up and just keep at it and I promise you will make money if you do what they tell you to do, but don't start opening 100's of e-mails from tons of offers you have opted into and get discouraged and not do what they ask you to do and then blame the teacher. Follow a system and you will be successful. Also support from your spouse is essential if you want to be successful in your efforts to learn how to start an online business.

I will have more articles that will further expound on what I have already written with more ideas and do's and don't's in your endeavor to start an online business.

What we are going through I believe is what is called a paradigm shift. Go to http://www.taketheleap.com/define.html for a fantastic explanation of a paradigm shift. The world we live in has been and continues to become an information based society. The way we communicate is almost instantaneous in most cases due to technology and the internet. We can talk to people anywhere in the world in mere seconds with our computers and an internet connection.

That is the beauty in learning how to start an online business. Here are some of the benefits.

Unlimited Income Potential

Absentee Ownership

Freedom To Live Anywhere And Anyway You Want To (provided you have internet access)

Inexpensive Start Up Costs

Some Of The Best FREE Training Available If You Know Where To Look

You Control Your Time And Income

Easily Work From Home

Unlimited Supply Of Prospects

Home Business Opportunity Lead: Best Way To Earn Money

Home Business Opportunity

Home businesses are one of the best things which can be done easily in this period of rescission. Nowadays we can easily see lots of people who are unemployed and searching for some relevant source where they could earn some money and become financially free. This small post is written in order to help all those people who are looking to start up their own business. I must introduce with this home business opportunity lead which is gaining attraction of lots of young peoples who are looking for jobs.

How To Get A Good Home Business Opportunity Lead

If you are going to start your own business then you must require a good business leads in order to get quick success. These home business opportunity lead are the mind source through which you can get a good start. Remember a good business lead is highly recommended for a good business in the starting.

Importance of these business leads

One of the main benefits of these business leads is that they offer you initial push which is required in order to establish your firm. Home business opportunity lead helps you to guide with the best possible solutions of your problem. The owner of the business must be a hard worker and must have patience in order to handle the complex situations as in successful business, starting hard work and investment matters allot.

I want to share my own experience with you all regarding the up and downfall of business as I saw several people quitting their home business just because of the lack in their skills, investment. Business is basically for the ones, who love to play with the risks and playing with these risks can be easily learned by home business opportunity lead but one thing must be kept in mind before listening to these business leads that whether they are original or fake, as you may find number of business leads working fake for their clients and charging high amount of money.

The best business leads can be judged by their experience or pre qualification on the work or field where you want their interest. They will offer you the best solutions and answers which can help you in increasing the growth and expansion of your business. They can act as your business partners for life time till you need their support. Thus, if you want to grow your business in a well planned and strategic way then the best way is to associate yourself with home business opportunity lead.

Success in any network marketing business is built with knowing the secrets to online marketing. The second step is learning time is a limited resource that must be protected at all times. Shelter your business from tire kickers using MyPhoneRoom online to build your downline struggle free.

Growing Your Business

Growth in a business is essential. How much growth, depends on your vision for your business....

Many business owners often confuse growth with expansion. Expansion is moving into new product lines, new services and new areas. Growth is increasing your capacity to continue with the products and services you have. Growth may require expansion, but expansion is not necessarily needed for growth.

Growth is necessary, at the very least, to ensure that your business maintains a healthy profit margin. Expenses typically rise each year and, as such, your business needs to grow, otherwise it will 'fade' away.

This is why having a business plan and regularly reviewing your businesses performance is so important! Understanding the businesses financial bottom line and how the target markets are evolving is paramount to ongoing business success and growth.

Be Honest With Yourself...

Sometimes, the largest obstacle any small business owner can have, is themselves. Far too often, we as business owners fall prey to own success and we ignore the change indicators in our market. A wise business owner will ensure that they can independently evaluate their business - a business mentor is great for this kind of oversight.

Be brutal in your assessment - really extrapolate the possible changes in your market and determine how you can refine your business strategies to capitalize on the changes.

In one of my 'previous business lives', I ran a retail franchise store. We were a very niche business and when we first opened the stores, we did really well. However, as the market evolved it became more of a consumer market (not niche) and our Franchise did not change it's strategies to take this into consideration. That franchise no longer exists - it was placed in receivership.

Growth Strategies

There are several strategies for growth that may be applied by a business owner.

Sell More Of The Same Thing

This is possibly one of the most popular strategies for business growth - do more of what you're already doing.

This could be a valid approach, particularly if the business or market is relatively young.

One of the biggest things to consider here, is whether there is 'room' to do more of the same thing. If your business delivers services, can your existing staffing levels handle more work and if not, can more people be employed quickly enough to deliver the work?

Does your market allow for enough growth in the sale of more of the same? Sometimes, the market is near saturation and selling more of the same thing is not going to provide enough growth for a business.

Consider moving into other target markets with the same product or service. Often this will require a rethink of Unique Selling Proposition, but it can reap big rewards.

If the business doesn't have sufficient person power to sell more, consider options like licensing and franchising to increase the reach. One very simple method to immediately add more sales people to the business is to offer an Affiliate or Referral program, where the business will pay a commission or referral fee to people who bring in new business.

Raise Prices

Raising the prices of your products and services may result in growth. This approach needs to be implemented carefully, and the results monitored regularly.

Raising prices will, generally, result in a higher profit per sale - and as such higher profit overall.

In some cases, raising prices will result in an increase in sales as well. This tends to occur when the price of a product or service is so low that it gives the perception of a low value / poor quality or appeals to a target market that is not willing to spend money. When the price is increased, the target audience feels that the quality is much better and will more readily invest. By increasing the price and increasing sales, growth occurs naturally.

I experienced exactly this in my retail store - we had priced a product at less than $10, which we thought was an 'irresistible price'. Unfortunately, our customers did not and the product was not moving. After overhearing several customers discuss that they believed something must be wrong with the product for it to be so cheap, we increased the price to $14.95 and sold out in a week! Perceived Value.

Diversify

Diversification is a valid and very smart business growth strategy. Add more products or services to your business portfolio.

Depending on your business plan, the products or services may be related to your existing product range or, it may be appropriate to start a new 'arm' to your business.

Diversification, as a business growth strategy, provides a major benefit as the risk of market downturns is spread over a wider base.

By adding more related products and services to its portfolio, a business can also capitalize on return business from existing customers.

In Conclusion

These are three very broad ways to grow your business - and which one(s) to use will depend on your business plan.

-- About The Author --

Charly Leetham is an Online Business Implementation Expert and Small Business Coach. Charly shares useful and free information for new small businesses to aid in their success. Charly has many years experience in managing business for employers and herself and shares her vast experience and insights with readers on her blog.

Charly Leetham has worked for over 20 years in the IT industry, and has extensive experience in hand on tech work, sales management, customer relationship management and contract management.

Charly also holds a Masters of Business Admin (MBA), specialising in Internet Marketing.