|Small Business Information|
Eight Key Steps to Selling Your Business and Cashing In
This year, some 700,000 American businesses will be sold. Most will be small and mid-sized businesses like yours. If you, too, are thinking of selling, consider these practical steps for making the process go smoothly.
Determine a Realistic Price Range
Understand the Tax Consequences
Prepare for a Sale
Seek Potential Buyers
Negotiate Your Deal
Sign a Sales Agreement
Plan for the Closing
File Paperwork With the IRS
Now for the GOOD STUFF!
Getting the Cash Out of your Business Note, known more specifically as seller carryback business notes, are created when the buyer of a business can not or will not pay all cash. Frequently, banks and similar lending institutions are hesitant to loan money to new business owners who have minimal track records and where hard assets make up a small percentage of the total purchase price.
In the case where a buyer cannot obtain a loan, the seller is left with two choices (1) hold off until he/she find a buyer who can pay all cash or (2) carry back a note in order to collect future payments. The first option is often not realistic. In the second case, the seller is hopefully able to at least extract a large down payment to make extra sure that the buyer has some "skin in the game". However, even then the seller is usually in a position that he prefers not to be in - he has no lump sum of money to either invest in other opportunities or to retire. Unlike a real estate note, where is there is a hard asset that is fairly easy to appraise; the business note is relatively risky to hold.
So, what is a business seller to do when he didn't want to be in the lending business to start with and now has a need for immediate cash? What many people don't realize is that the business note can be sold. The former owner can sell all or part of the note to get a lump sum of cash. In this way, both the goals of selling the business and getting the cash out of it are met.
In summary, selling a business note is an excellent way for the former owner of a business to get his cash out of the business. Whether the reason for selling the note is that the seller would have preferred all cash all along, that he now has large debts to pay, or that he has the opportunity to pursue other investments, the sale of a business note is a tool of which you should always be aware.
Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.
Franchises Offer Shortcuts, But Not Control
Q: I will be retiring this year at age 60 and intend to fulfill my lifelong dream of owning my own business. I'm too old to start from scratch, so I'm looking at several franchise opportunities, including fast food, auto parts, and an accounting service. What should I consider before choosing one? Anthony R.
Mobile Pressure Washing and Cleaning Scheduling
If you own a mobile car washing, pressure washing or auto detailing business you know that when your crews and machines are parked and working that you are making money. You also know that when those units and crews are driving or stuck in traffic you are losing your shirt in costs and inefficiencies. If you are to expand your mobile washing business to multiple units running in multiple cities you will need to have a strict scheduling policy and operations manual to insure that efficiencies are maintained. Today with the highest fuel costs ever in our nation's history and the increased traffic over the last five years it is ultra critical that you plot out your routes, customer locations and time with precision.
Doing Business With Friends: Five Tips for Preserving the Friendship... and Your Sanity!
My colleague, Jane, recently lamented to me an all too familiar story about mixing business and friendship. Jane subcontracted copywriting work out her friend, Joan. Jane's copywriting business was blossoming (partly in response to her most recent brilliant article marketing campaign) and giving the work to Joan seemed like a win-win for both of them.
Franchise Sales and Use of Online Franchise Directories
Franchising Directory Sites-Paid Advertising, Lead Generation for Franchising
10 Cardinal Rules for Business Growth
After over 30 years of participating in hundreds of businesses, competing in at least as many different industries, with companies marketing both products and services, you begin to develop and accumulate some fundamental businesses axioms or "rules of thumb" that seem to make more sense everyday and gain more value in business practice as your career continues to advance and evolve.
Creative Business Card Marketing
Announcements can be handed out as a business card
How to Start a Carpet Cleaning Company
Opening a carpet cleaning business is a great way to earn money as your own boss. This is a relatively simple business to start, with low overhead, and little experience required. Start up costs can be minimal, if you shop around. Additionally, there is a steady market for quality work.
How to Wash Mobile Homes as a Business
Washing manufactured homes, mobile homes, can be a lucrative and steady business. Generally Mobile Home owners desire to have their mobile homes washed twice per year. There are many mobile home washing companies who make a very good living and have multiple rigs running. If you currently own a pressure washer you may wish to consider a new business washing mobile home and manufactured houses.
Small Business Survival
In today's economic climate, the first priority for the small business entrepreneur is survival. A glance at newspapers, business journals, or cable news channels reveals a succession of corporations striving to stay on top of their game, and often failing, to slow the growth of outsourcing or to show real growth within their market space. In such times, knowing how to achieve long-term success is more critical than ever.
Packing Material Thats Cheap!
Shipping materials can be expensive! Even the styrofoam "peanuts" can cost a great deal. Here's a great idea for packing paterial that is bio-digradable, easy, and best of all...CHEAP!
Success & The Nature of Things
The story is told of a tiger chasing some goats to catch one for dinner. During the chase the tiger is injured and as she is dying, gives birth to a tiger cub. The goats had never seen a baby tiger before, so they stopped running to watch and decided to make the motherless cub a member of the goat herd.
Small Business Marketing Series ? Choosing a Niche Market
Many smaller businesses choose niche markets for various reasons and these niche markets can be very lucrative. This article will look at ways to identify and assess whether they are right for your business?
Are You Making the Most of Your Intern?
KEEPING INTEREST HIGH: Supervision is key to the success of the program. Interns like direction, but don't like to feel they are being constantly checked on. Even this small amount of direction, however, can take a great deal of time. It is important to be willing to set aside this time to give the intern direction. One method that seems to work calls for a briefing at the beginning of each day and a "where-do-we-stand?" briefing at its end. Throughout the day, the manager is on hand to answer any questions that might come up -- remember this is a learning experience! There should also be additional time set aside throughout the duration of the internship during which the manager receives feedback from the intern on his or her satisfaction with the assignment and suggestions for future directions. Equally important, interns should receive feedback on their progress. They need to know if they are performing to the manager's expectations. Additionally, many interns have chosen to keep diaries and time logs documenting their involvement. These can be reviewed at the conclusion of that person's internship.
Franchises: How to Find the Best Franchise Opportunity for You
If you are looking for a franchise opportunity, the choice is mind boggling. There are literally hundreds if not thousands of different types of franchise available for you to invest in, with the same variety in cost. Each have their own benefits and usually the more you pay the more potential to earn. You obviously want to select a profitable business venture so it is important that you thoroughly research.
7 Cash Flow Secrets Your Accountant Never Told You
Looking for ways to boost your cash flow? As a small business consultant, I make these recommendations to my cash strapped small business clients:
How to Manage Your Pipeline
How is your pipeline structured?
Nevada Incorporation: The Advantages of Incorporating in Nevada
Incorporation in Nevada has become an attractive option for savvy business entrepreneurs, and for good reason. Nevada corporations enjoy many benefits just not available anywhere else. We will not only investigate why this is so, but you will also know what to be aware of when incorporating in Nevada, and how to avoid the most common first-time mistakes.
Reverse Merger: Have They Taken the Reverse out of Reverse Merger?
Are the promoters and consultants destroying the market for Reverse Merger? First lets take a look at reverse merger. In a Reverse Merger, an operating private company merges with a public company that has little or no assets, nor know liabilities (the "shell").
Business Development Is Not An Event
Cash flow. To stay in business, you've got to keep a steady stream moving through your company.
Small Business Mistakes: Are You Making Enough of Them?
That's right are you making enough mistakes in your business? Some of you are probably annoyed at my question; others are thinking "Geez, Rose! If I made any more mistakes I'd have to run screaming back to a day job!"
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