June 30th, 2011 by admin

The world of trade is like a boiling pot of water filled with molecules spiking rapidly toward different directions. If you are not shrewd and fast enough, you might find yourself dumbfounded and losing tons of money. It is vital for any entrepreneur to know how, where, and when to sell a business. A business undertaking sold while it’s at the peak of popularity is like overflowing honey to a beehive.

“When can I sell my business?” “Where can I find the best place to give people an idea that I’m selling my business?” These are the common questions asked by business owners here and there. There is a big chance that you’ll miss a great opportunity to sell your business.

Start gaining money by simply registering to Bizilla.com. Bizilla.com will provide a venue where you can sell your business in no time. The website contains a well-organized and easy to use system where you only have to enter specific details, and the system will do the rest for you. With affordable packages, Bizilla.com can give you premium services without burning a gaping hole in your pocket.

On Bizilla.com, people are simply divided into two, those people who say “I want to buy a business” and those who declare “I want to sell my business.” You won’t be lost in the middle of any transaction on Bizilla.com. Spare yourself from the disadvantages of losing your way in the process.

Today, you will hear nothing but “I will only sell my business through Bizilla.com.” Registering on Bizilla.com will be one of the best decisions that you will make as a business owner or aspiring entrepreneur. Sell your business while it’s extremely in demand to realize exploding profits. Do not let other services ruin your business strategy, just because they cannot sell your business. Bizilla.com offers affordable services to fit into your marketing strategy. You can surely get your money’s worth once you register to Bizilla.com. Sell your business is easy with Bizilla.com

“When can I sell my business?” “Which place is the best venue to sell my own business?” These are some of the questions that business owners always ask. Failure to sell your business at the perfect time can make you lose millions.

Start gaining money by simply registering to Bizilla.com. Bizilla.com will provide a venue where you can sell your business in no time. The website contains a well-organized and easy to use system where you only have to enter specific details, and the system will do the rest for you. Bizilla.com gives you the right packages that can fit your budget and feed your satisfaction.

In Bizilla.com, people are simply divided into two, those people who say “I want to buy a business” and those who declare “I want to sell my business.” You won’t be lost in the middle of any transaction in Bizilla.com. You definitely won’t get lost in the process. Bizilla.com is created by Pat Hull and Hector Vazquez who are experts who have been in the process for more than 20 years already.

Today, you will hear nothing but “I will only sell my business through Bizilla.com.” Registering in Bizilla.com will be one of the best decisions that you will ever make. Maximize your business strengths and drop them while their hot to earn astounding profits. A qualified and trusted service is what you need to keep money flowing in your bank account.

Don’t commit the mistake of believing those websites which claim that they will sell your businesses for free-that is simply unrealistic. Never compromise the flow of your business plan, that is why it is important to immediately sell a business if the time is right. Bizilla.com will surely give you your money’s true worth. Selling your business is now as easy as ABC.

You might ask yourself, “Is there a perfect venue where I can sell my business?” Yes! Brizilla.com is the up and coming website that offer a place where people can sell or buy a business for sale. Their website comes in user-friendly and easily-navigable pages where people, young and old, can sell or buy a business. Brizilla.com makes selling business as easy as can be.

Business, Sell

June 29th, 2011 by admin

Selling a business in which you have put your time, efforts, and money is not an easy task. Big bucks are in stake while selling business and it calls for sound decision-making. There is a huge risk of financial loss involved in case you are not able to recover what you have invested in the business so far. Therefore, it is important that you prepare yourself well before you plan to put your business for sale. Listed below are few points that you should keep in mind before preparing to sell your business:

• Selling your business is a risky affair and should not be done in a rush. Give yourself enough time (at least a couple of months) to prepare your business for sale. You need to tie-up all loose ends, and make a proper list and evaluation of business inventor and assets before you sell them.

• Check your historical financial statements to ensure that they are in place. Also go through the current year’s audit reports and other financial statements to check that all the financial reports are up to date.

• Make a proper formal records of all the business related documents and the dealings. This will help the new management understand the business better and avoid any sort of confusion.

• Don’t leave any deal with a customer open. Close all the deals before you hand over your company to the buyer. Also, inform all the customers about this new acquisition beforehand.

• Take care of contract details of both suppliers and franchisees. Make proper documentation regarding this and keep a copy of this for the new management.

• Unwritten rules are difficult to follow. Therefore, take care to print record of company’s rules and guidelines. This will help the new management to abide by the policies which the company’s employees are following.

• Make a clear list of assets that are included and excluded for sale. This is important to avoid any discrepancies in future.

• Check your lease contract. In case the location or property lease can cause a problem for your business sell, consider moving to a better location before selling your business.

• Upgrade your computer systems and software up to date before selling the business.

• Keep a good business broker by your side that can help you make good business decisions.

By adhering to guidelines mentioned above, you are sure to feel confident regarding your business sale. Being informed and ready with all the system in place help you avoid the pitfalls of bad business deals.

Business, Selling

June 28th, 2011 by admin

Buying or selling a business is a complex matter. There is no question about it. The complexities start from the moment a buyer and seller start interacting but there is natural conflict in place. For a start, the buyer doesn’t have any history of the operation of the business and so has to rely entirely on the representations of the seller. Conversely, the seller has lived and breathed the business, knows its upsides and downs including its strengths and weaknesses. My Golden Rule when assisting with a business transaction is for each party to put their feet in the shoes of the other party. In other words, the seller should see things from the buyer’s perspective and the buyer should see things from the seller’s perspective.

A key way this would help a business transition from a seller to a buyer would be if the seller used a Management Plan. What you may ask is a Management Plan? From my perspective, a Management Plan is where all the critical areas of a business are summarized so if the owner of the business wins the lottery and never wants to work another day in their life in the business and not come to work tomorrow, the business will survive and grow.

What are some things to include in the Management Plan? At a minimum the Management Plan needs to include a summary of key business information.

This includes the following:

1. A current and monthly updated summary of all the employees in the business. The rule should be that if any employee needs to be contacted, their information should be available in less than one minute. This information needs to include emergency contacts of each employee, if they are willing to provide it and your State government agency allows you to collect it.

2. A current and monthly updated summary of all suppliers. All suppliers may be too much but at least the suppliers that supply any critical materials or provide more than 5% of the company materials.

3. A current and monthly updated summary of all business support services such as the CPA, attorney(s), financial planner(s), landlord, lenders, government agencies in case any are needed urgently.

4. A critical document that would help any buyer is seeing the business Training Manual. Again this document should be kept up to date and break down each of the current positions of the business. If the business doesn’t currently have this document, start creating it. It’s very easy to do. Have the current person encumbered with that job write down what they do. This is then presented to another member of the business with the instruction to execute what’s provided. If they can do it then the jobs done. If they can’t, it goes back to the person who wrote it for re-writing. If some employees don’t want to write the document as they are concerned they will be let go because anyone now knows how to do their job, hire a student from a local college to come and write things up or hire a technical writer.

5. In addition to the Training manual, put together an Operations manual. Michael Gerber is the master of written procedures. He’s written numerous books including The E Myth and The E Myth Revisited. Very simply, Michael Gerber believes that being a true entrepreneur is being able to take an idea and break it down and writing to the point where each person in the enterprise clearly knows what they need to do to collectively make the enterprise successful.

This is the purpose of the Operations manual; to clearly state the business process to achieve an outcome. Would you like an example? Let’s go with the example of a fast food restaurant that sells hamburgers. Let’s choose the person that makes the fries. The Operations manual would break down each step of that process. It starts with where to get the fries, what to do when the quantity of fries in the storage area gets to a critical point and what to do to order more; what temperature they should be stored. The next steps would detail what temperature the oil needs to be to cook the fries, for how long and in what container. Now detail what to do with the fries when they are ready, how much salt to add and in what container to place the cooked fries. Where the containers are stored and what to do when you reach a minimum threshold? You can do this in more detail but the beauty is that once this is done, it only needs to be checked say monthly and now on a consistent basis you can cook and deliver the best fries in the world.

It may seem like a lot of work putting these things together. These suggestions are the tip of the iceberg. What else can you document to make your business easier to operate? Using technology can make doing this so much easier. And remember to make sure you have a backup so all your hard work is not lost.

The most important reason to do this is that by creating this Management plan, your business will be of more interest to the right business buyer. In real estate, there is a rule called the principle of comparison. In simple terms it says that when a buyer is looking to buy a house, they will buy the best option not only on price, but also comparing it to other houses for sale in that area. If the buyer wants a 3 bedroom, 2 car garage, 2 bath house in a specific school district and they have 3 to choose from, they will not necessarily make their final decision on price but it could be features, for example, because one has a swimming pool… or not. The bottom line is that a strong and clearly laid out Management Plan adds value to a business being sold.

Part 8 of this article series looks at the value in creating a Productivity Plan and its importance to defining what and how things need to be done so the business is successful.

Business, Buying, Selling

June 27th, 2011 by admin

Selling a business comes with a huge number of variables.  The following consider 9 important areas you need to work through if you want to successfully exit the business you own.

1. Do I need to create and use a team?

Putting together an exit strategy and then executing it is a team sport
Don’t try and do it on your own.
Members of your team to consider include:
Accountant or tax agent
Personal financial planner
Psychologist or Business Coach
Insurance expert
Attorney
Business Broker
Worried about the cost?  Get it right and it won’t be a cost but an investment

2. Determine your goals and objectives before moving forward.

Be patient with yourself
Be patient with those around you.
How long did it take you to get here and now you are here – what’s the rush?
Taking action before you determine your goals and objectives can waste time, waste money, lets things that can’t be undone and/or cause unintended damage.
Once you determine your goals and objectives – take action.

3. What are the tax consequences of selling the business?

Are these tax consequences manageable or not?
Talk to a tax agent to understand the implications and what strategies can be used to minimize taxes.
4. How much income do you need to maintain your lifestyle?
Talk to a personal financial planner to make sure you can achieve your goals.  If you can, what are you waiting for?
5. Does the fear of spending the rest of your days playing with your grand kids keep you awake at night?
Talk to a psychologist or business coach to plan your future.  Get that degree you always said you wanted to get, learn to fly or scuba dive or be a mentor or join a board or become an advisor or coach a new business owner or master public speaking or leap…then look.
6. What would happen to the business owner if there was a medical or worse, fatal incident?
Talk to an insurance specialist and put coverage in place that protects the business owner and any immediate family that need to be taken care of.
7. Are legal matters up to date and decided?
Talk to an attorney to make sure all legal matters are fully understood and addressed.  Family trusts, wills, powers of attorney etc require refreshing…  just in case.
8. Is there a natural heir to the business or is selling the business or finding a new owner required?
Talk to a Business Broker to explore the above.
Is there a natural owner to take over and run the business?
If the business has more than one owner, what should be discussed and implemented with any ownership changes?
Can this be done to minimize disruption?
If not, what’s the end game and is professional help needed?
What is the date to complete all the changes?
How much is the business worth?
9. Establish a deadline and take action
Now there is a clear plan it’s time for action.
Create an advisory team to execute the plan and hold your team accountable; especially yourself.
Consider a leader to execute the plan – yes – delegate
Conduct exit planning meetings to review schedules, assigned tasks and new information and ideas.

The success of an exit strategy for a business owner starts with the business owner.  If the above are discussed, executed and aligned, the rest will take care of itself.

Business, Sell

June 26th, 2011 by admin

I especially hate it when I am placed on hold and I have a spat with the company. Unfortunately this will be happening in your business as well, people having to be placed on hold. With an irate customer the following will most likely not work, but will surely work with a customer inquiring about your company.

A lot of companies have a dreadful hold service. They either play some dreadful old tune or some radio station with no tone. Or even worse they have a computer voice telling you to “please hold, your call is important to us”. Yeah right.

Well if this is your hold message then you are losing a golden moment to actually promote your company and specials that you offer. You can even make it that only the person that is on hold will hear about the special offer and you can even inform them as such. Now imagine how special that person will feel on hold. Even a free be will do very nicely.

Just tell them that they must get their special coupon code from the next consultant that answers. See how your bottom line increases. Even make it a mystery gift but please ensure that the gift is actually worth it, don’t try and give them junk.

Most of your customers will actually ask you to place them on hold. Also insure that you change the gift often. Even if some customers get more than one gift every month. You’ll have customers for life and the viral effect will spread like a wild fire.

Make sure that the gifts that you give have something to do with the products that you sell. They must compliment the product.

Remember even when giving gifts for free you need the message to be short and sweet; most people don’t have the whole day for the hold message to finish.

You can even change the message to cater for after hours. Should the person leave their details they will be contacted the next business day and a free gift will be offered for the inconvenience of not finding your business open.

With today’s technology the holding system can actually generate a coupon code automatically, which the customer can use at their earliest convenience.

Now isn’t this a low cost way of attracting customer. The hold time used to be dead time and space.

Can you afford to get customers this easily. So what are you waiting for?

Steve Watson enjoy building websites which are product based. See for yourself. Click a few links to navigate.

Leave a comment of you like it.

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Business, Selling

June 26th, 2011 by admin

Selling A Business in Auckland – An unfortunate story

I’m going to share a true story from a few weeks ago – it was a phone call between myself and a lady I’ll call Sue.

Sue phoned me in response to one of my own marketing campaigns – “a fax blast”, where I’d sent a fax of a professionally written (and in part fictitious) newspaper article to a group of business owners to get their attention and to get them to ring me. Sue was one of the business owners who rang me. I’d had a number of positive calls from a number of business owners and from there I’d secured new clients, all after using this one single marketing tool as a way to get the attention of some very busy individuals.

All in all, the marketing campaign went really well, all but for this one story – Sue.

So back to Sue.

Sue: “Hi, yes well my husband has made me call you because he thinks we need some help”

That was my first clue that this call may not go in the direction I’d expect this call to go.

I asked 10-15 minutes of questions to find out where their main business challenges were so I could start to learn more to be able to help, and after understanding that her main competitor was outperforming her company by more than tenfold “but they are not as technically competent as we are” I shared a number of quick fire business ideas to assist, all very positive, all would have helped her business, her response was:

“This is nothing I don’t already know”.

OK.

So with phone in hand, pacing around my office, I literally took a step back to take stock of the situation:

1. A business owner has phoned me for help
2. I’ve shared some focused ideas that I know would hugely and positively impact her business, and
3. I receive the sharp response.

OK.

I now understand.

I politely ended the call by suggesting she talk to her husband, and ring me back if they agree they’d like to meet. She and I both know we’ll never talk again.

There are lessons in every situation, and this one has two really good ones.

The first is: “You can’t help someone who doesn’t want to be helped”.

I’ve learnt that in my coaching training and when applying the principles – don’t spend time with those who don’t value your time, there are too many others out there who would enjoy spending time with you and benefiting from your experience. Life is far too short.

That was lesson 1.

Lesson 2 was marketing focus.

Sue’s competition was DVS – a company well known across NZ because of their solid marketing & branding, radio & TV adverts, where the words and pictures are all focused on the benefits of the home ventilation system – how it “removes the steam and excess water from your home, making your home a more healthy place to live, for you and your family”. They were the first company to really focus on the benefits of their system and they have performed really well for a number of years.

I wonder what would appeal to the mums and dads at home:
1. “I’m more technical and know how to install your system, come to me”
2. “My system will make your home a healthier place to live for you and your family.”

In case you’re wondering, it’s option 2 every time, because it appeals to 90%+ of the decision makers of home owners – appealing to their life, their family, their home, their style of living, to name a few. All being improved by ‘this system’ – great – I want one.

That’s why DVS is outperforming Sue in tens, even hundreds of multiples.

One company understands their market, and the message needed to resonate with their market, through the benefits of their product.

It’s not a fair fight.

And I feel sorry for the husband.

So why did I share this story? Because I don’t want you to be like Sue. I don’t want you to unnecessarily struggle in business, when there is help close to hand, you just have to know when to ask for it.

If you want to avoid being like Sue, and want to take positive action, then why not join the group of business owners and entrepreneurs who are collaborating together on areas of improvement under my guidance – I’d love to be able to support you to achieve more in your everyday.

To be different to Sue, to get ahead in your marketing to ensure your business is worth as much as possible when you come to sell, visit The Profit Partnership today.

Business, Selling

June 25th, 2011 by admin

Just as there are different sellers with different motivations, there are also buyers with different types of needs and personalities. If you’re the seller of a business or looking to buy, understanding these different personality types may help you be more successful.

1. Unemployed

This is the best type of buyer. But there are some catches. They need to have enough money as a down payment to buy the business. Zero down payment to buy a home hasn’t been successful. As well as the down payment, they need a good credit score (FICO 700 plus), good credit report and if they want to qualify for a third party loan such as an SBA loan; they need to have industry experience. If you are the seller of a business, the unemployed are motivated and generally want to move quickly to make a decision and start earning an income again.

2. Engineer

This will be the hardest buyer that you work with. They invariably have the money and the skills to run a business, but they have a need to know absolutely every piece of information about the economy, industry, and your business. Many meetings are required and each is long and laborious. Questions that are answered in the first three meetings are asked in subsequent meetings and if the answers are slightly different from what was said earlier, the buyer wants to know why and then go back and revisit every other question around that topic. Their chances of taking the emotional risk to buy a business are very low as after all the questions are answered, they find it impossible to commit by signing their name to the check to buy the business.

3. Talker

This person loves to talk. They have great personality and charm and you think they are the perfect person for the business. They are pleasant to deal with, ask polite and relevant questions, are genuinely interested in being liked and making sure they fit in. There is only one problem -they don’t have any money and can therefore be a huge time waster. Watch talkers carefully as they are such good talkers that you may be afraid to say no or offend them.

4. Know-It-All

Another problem buyer is the know-it-all. They are like talkers but not as diplomatic. They have a bunch of knowledge making them sound like a great candidate as they “get it” and the industry and your business. They probably have money, it is just that they are hard to get along with as they love to tell you what they are going to do to make the business better and at the same time they have no problem in suggesting changes you should make now or telling you what you are not doing right.

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Business, Selling

June 24th, 2011 by admin

Most business buyers and sellers are unprepared for the level of human psychology involved with selling a business.  The reality is that unlike many other investments, the sale of a company is one where human irrationality can many times trump hard facts.  The key is to understand this reality and to deal with advisors who understand this and have the relevant experience to guide you through the transaction.  This article will examine some examples pertaining to when psychology and emotion can interplay within a deal dynamic.

Timelines are important
When you go about selling your business it is critical to respect timelines.  Over and above the legal requirement pertaining to a purchase agreement or a letter of intent, timelines matter because buyers get nervous and delays that pertain to the waiving of conditions or closing can jeopardize a deal.  Buyers are human and they do get cold feet.  Nothing material may have happened to the business to cause a purchaser to back out of the deal but sometimes they talk to friends or family or other people who are not qualified to advise them and the buyer may allow doubts to be cast into their mind.  All other things being equal, for a seller it is better to close a business sale sooner rather than later.

Sometimes professional advisors do not heed the emotion & psychology involved in a deal
A prime example of this is a lawyer.  A lawyer is a professional that is crucial for when a business is sold.  He or she will gave you legal and practical advice regarding the sale but they do sometimes overstep their expertise and give opinions when they don’t have all the facts at hand.  Again, they are removed from the intimate contact between a buyer and seller and not be privy to the emotion and normal deal jitters that a buyer may have (even though they may be unjustified).  Again, the principle of, all else being equal, sooner is better than later.  Get the business purchase agreement executed as soon as you can and don’t let unnecessary delays happen.  Business for sale listings do get stale if they don’t move along quickly enough and delays can impact a buyer’s emotions and perceptions of the deal.

A business broker can help you gain perspective
A business broker typically has a depth of experience when it comes to selling a business.  Always rely on your professional advisors and do not rush a deal so as to put yourself at increased risk.  But do heed the advice from knowledgeable (and ethical) business brokers.  They will be able to give you a perspective that an attorney may not.

In many sales, time is of the essence.  Buyer psychology is intrinsically interwoven with the time required to execute an agreement and generally move things along.  Conditional periods that drag on and lawyers and other professionals that do not move quickly enough can have a negative outcome on the sale of the company.  The key point to remember is that you are ultimately the client and are in charge.  Be prudent and stay protected by heeding professional advice but don’t let negativity and delays dictate the way your sale progresses.

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Business, Selling

June 23rd, 2011 by admin

Over the past years, franchising has become one of the fastest routes to business success in the Philippines. Both local and foreign brand names find themselves in a tight competition to gain a sizeable margin of the Philippine market. The franchising industry has also contributed significantly to the growth of the economy in the Philippines.

Franchising can be viewed from two perspectives: the franchisee and the franchisor. For the franchisee, a franchise is like a business wrapped in a package, with all the goods, services and operating manual in it, ready for roll out and operation. Counting on the elements of a well-established brand name and a tried-and-tested system of running the business, the franchisee receives many benefits, including access to information and technology that comes with the business, training and tech support of all aspects of the system, and the fact that a name that has already built its reputation for a number of years is a lesser risk than building a name from ground zero.

Franchising, from the franchisor’s point of view, has a different meaning. It presents an opportunity for business expansion; something that would have been difficult is done by them. Franchising for them is convincing the buyer (the franchisee), that their business is a good buy and worth investing in. Having a franchisee ran an outlet of their business means they can extend their products and services to more people in a wider coverage.

Buying and selling a franchise business in the Philippines is governed by the Philippine Franchise Association. This body gives guidelines and policies to regulate and promote fair practices on franchise activities by both local and foreign brand names. It is also tasked at providing assistance to franchise holders and buyers like financial programs, seminar workshops and information dissemination.

So much does a franchise cost in the Philippines? That would depend on a number of things, like the type of product or services offered, the size and location of the intended franchise outlet, layout / design of the outlet, beginning stock inventory, facilities and equipments needed along with its operating and maintenance cost, insurance and other pertinent expenses. Other equally important matters to consider include the franchise fee, training programs that the franchisor would be providing, royalty fees, feasibility studies to be conducted, marketing campaigns and advertisements.

Franchise for food cart businesses are generally cheaper to acquire, and prospective buyers can start owning these for as low as fifteen thousand pesos to an average cost of one hundred thousand pesos, depending on the type of food being sold and the size of the cart. A water refilling systems cost around two hundred to five hundred thousand pesos to operate. Other bigger franchise, like gasoline stations and food manufacturing and retail business, can go as high as five to ten million pesos, but the returns are well worth the investment.

Business, Franchising

June 23rd, 2011 by admin

If you plan on selling your business, it will help you to understand the different types of buyer.  Each buyer who inquires will have their own unique reason to want to buy.  By talking with the buyer, understanding their needs and then placing them in one of the categories below, will help you understand what they are looking for so you are better prepared to discuss and negotiate the transaction.

Individual Buyer

This is generally one person with good financial resources and background or experience for managing and leading a particular business in a particular industry.  This type of buyer is usually looking for a particular business that is financially healthy.  They are looking for a return on their investment and some flexibility in lifestyle choices. They also believe they can buy and at least maintain the current performance of the business or take it to a higher level.

Corporate Executive

This is a buyer who has many years of service with a large corporation and has concerns that downsizing may occur.  In some cases, they are getting older and have their retirement money tucked away and would like to see what it would be like to run their own business.  Franchise businesses are particularly attractive to them as they like the structure and organization that comes from working in this business model.

Existing Employee

The buyer of a business can be an existing employee.  If the business has a strong cash flow and the employee is able to put together a small down payment with the seller carrying back some of the financing, this can be a mutually beneficial arrangement.  SBA financing may be an option here—especially if the employee has management expertise.

Investment Buyer or Financial Buyer

All buyers want a return on their investment.  However, with investment or financial buyers this is their primary motivation.  Their ability to get financing on as large part of the purchase price as possible is also motivating.  They have less interest in the type of industry and many of the specifics of the business operation.

Synergistic Buyer

This is usually a company and their purpose of buying the business is their belief that joining the two companies will produce more, or be worth more, together than if the two companies were to remain separate.

Industry Buyer

This type of buyer is often a competitor or owns a very similar operation.  They know the industry well and therefore see little value in paying for the expertise and skill of the seller.

Strategic Buyer

Like the synergistic buyer, the strategic buyer is usually a business owner with a goal to expand their current company.  They leverage their expertise to enter into new markets by acquiring market share and then increase market share through the acquisition.  Their strategy can also include deploying a new technology and/or eliminating a competitor or some competitive element.

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