A serious buyer is financially prepared

In today’s environment of tight money, you must be financially prepared to purchase a business and be able and willing to demonstrate your ability to buy.  No buyer wants to waste time investigating an opportunity that is beyond reach and no seller wants to waste time with a buyer without the financial resources to buy.

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Sellers: Make It Easy for Someone to Buy Your Business

Small businesses don’t go on forever.  Owners eventually retire or move on to other interests.  Businesses are passed on to children, sold, or simply shut down.  If you start to position your business for sale today, you will ultimately sell it more quickly and for more money, and make more in the time before you sell.

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Cash flow, Terms, and Pricing

A basic principle of pricing a small business revolves around the cash the owner receives from the operation of the business.  Often businesses are priced based on a multiple of cash flow: a “rule of thumb”.

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Are you serious?

At the beginning of a new year, many business owners ask themselves if this is the year to sell.  There are three good questions a business owner should consider before selling his or her business.  

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Why people buy businesses …

… and why someone may pay a higher price for yours.

The most obvious and most common reason is cash flow; but cash flow alone is seldom the sole reason people buy small businesses.  Usually there are many reasons, but they are almost always in these few areas:

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Buy or Start a Business?

You want to own a business – the question is whether it’s better to start up from scratch or buy an existing business.  If you have a unique product or service to build a business around, or are following a passion, your choice to start a business may be clear.  For an entrepreneur, making a business out of something they love is a thrill and a challenge. A very viable alternative for an entrepreneur, however, is to buy an existing business.

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