(Add to Favorites | View All Articles | Resource Directory)
|
|
|
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. http://www.peacockcapital.com; info@peacockcapital.com
MORE RESOURCES: News provided by Yahoo! News and Google News Tories pat small biz heads in open source IT procurement pledge - Register SBA Salutes Small Businesses Who Drive America's Economy At National Small Business Week May 23-25, 2010 (Business Wire via Yahoo! Finance) Small Biz: Where's Our Stimulus? - Memphis Daily News Kiffmeyer hosts small business roundtable (Monticello Times) Cloud Computing for Small Business (SYS-CON Media) Go big-time with small biz - The Newark Advocate Loan tap tight for small biz, especially startups - New York Daily News |
|
|
|
RELATED ARTICLES
North County San Diego Small Business North County San Diego has had some significant growth, and it appears to be a wonderful place to run a business. It has a strong middle class upward bias and plenty of opportunity and employment. 432 Page Franchise Report by the FTC The Federal Trade Commission is upgrading the franchise law and they have made a report. Recently I have been reviewing the FTC's franchise rule report page by page. Environmental Boat Washing and Detailing Some marine biologists feel that the concentration of dead marine growth on boats and in boat harbors can create hypoxic zones or a lack of oxygen. This causes a decline in the water quality and may at times cause adverse effects on living marine life such as salmon in the case of the State of Washington. How to Give Informative Talks Why should you do informative talks to smaller groups?Informative talks to smaller groups allow you more intimacy with the audience. You will be able to more closely connect with their needs and their responses to your speech. Shopping For a Franchise Shopping for a franchise is easy if you know what you are doing. You can choose between radio adverts, newspaper adverts, personal recommendation, Internet, or visit a franchise exhibition. Mobile Car Washes and Shoe Policies Mobile carwashing is hard work, it is tough on the your body and it pays to have athletic type shoes that do not get wet easily. Sometimes rapid pace car washing in parking lots can be a lot like playing basketball, except you are on a slippery and uneven surface. Private Franchising is not Real a Real Franchise One major issue not being addressed right now in the regulatory definitions which guide consumers and lawyers in business opportunities and franchising is the new term being used; Private Franchising. The Federal Trade Commission decided it would revise its definitions of such opportunities in 1995, but failed to address this issue. Franchising Industry Burdened in Over Regulation There were only an estimated 1800 active franchisors in this country at the end of 2002, that number down from 6000 in a single decade. It is not hard from this effort to increase regulations to see why. Why the Over Regulation on the Franchising Model? Franchising is the fastest way to build small businesses, provide jobs, create money flows. Currently the Federal Trade Commission wishes to increase the over regulation on the franchising sector. Hire a Virtual Assistant for those tasks you don't have time for Are you a home or small business owner and you're Webmaster, receptionist, and assistant all in one, but you've found that there isn't enough time in the day to complete all of these administrative tasks? A "Virtual Assistant" could be your answer.In today's tough economical times it's hard to think of hiring someone else to assist you, but it may be more cost effective than you think. Small Business Stress Buster: Completion not Perfection Completion not Perfection Five Keys To Doubling Your Productivity and Boosting Your EffectivenessI frequently meet with business owners and executives who feel overworked and undervalued. Many of them are highly gifted and are in fact contributing a huge amount of work, energy and brilliance to the companies they own or work for. Is starting a house-cleaning business as easy as "They" say? Are you tired yet of all the books out there telling you how easy it is to start a house cleaning business? I'm not inferring that all their information is bad, but let's be honest about how "easy" it really is.There's a dirty little secret hanging over the cleaning trade that nobody talks about, but every professional cleaner runs into. Advertising - For Small Businesses (Part 2) How to do itPeople skim through newspapers and magazines and they aren't necessarily looking for information on products or services (unless they're reading the classifieds) It's therefore absolutely vital that your advertisement grabs their attention and encourages them to read more. Many ads are designed merely to create awareness of a product or service, however, small to medium size businesses need a result. Get Approved for a Franchise Deciding to start your own franchise is just one of the first steps to getting started. Buying a franchise is a lot like dating. How to Start a Paper Shredding Business Paper Shredding Business Opportunities are blossoming up everywhere because in recent years, privacy concerns and new policies have forced companies all over the country to invest in paper shredding services. Large corporations and small are in need of shredding services. How to Write a Credit Policy for Your Business The book, "Become the Squeaky Wheel," by New Hampshire author Michelle Dunn, says the different ways people use and extend credit makes or breaks your credit policy and bottom line, which could result in less or more sales and money for your business."Business owners all have different types of businesses but can all extend credit," explains Michelle Dunn. Personal Success - Take a Break from Business Have Some Time to Yourself One of the most important things you can have when running a successful business, is to have time for yourself. Every small business owner needs to make time to be quiet. Politics, Environmental Rules, and Mobile Car Washes During the California Recall Election, I was very interested. Without getting into the political scene at all; my entire company, The Car Wash Guys, and all our staff and franchisees were closely watching The California Recall and Election. 1-2-3 Steps To A Successful Joint Venture A successful joint venture marketing effort is the goal of many small businesses, and is a great way to increase market visibility and profits.Joint venture marketing is rising in popularity everyday, but it does take some skill, good planning and foresight to execute. Building Your Business for Success in 2005 It's a strange anomaly.Most people who set out to start their own business, no matter what type, build it for failure, not success.
|
| home | site map | articles |
| © 2006 |