June 7th, 2011 by admin

I often get this question from business owners, especially from those who are just starting: how do I sell my business? In particular, how can a business owner acquire the techniques to be better at selling what they have?

Many business owners, although they are very good at what they do, they often fall short in the selling category. In fact, many would rank selling as their weakest point in the many entrepreneurial skills they have. They might be great with coming up with ideas such as having brochure printing for their ads; and accomplishing the daily tasks involved in running a business. But all will agree that the marketing part is one of the most difficult things to do.

But for all those business owners feeling this way (whether you have a small food stall or a reputable brochure printing company), do not worry. There are millions of you out there. Take heart because even though marketing is truly difficult, it is not impossible. Selling your business to your target clients is very challenging indeed; but when you are able to harness the technique, you can very well sell anything even to the littlest thing available in your product line.

As selling and marketing is an art, there are many ways that can help you accomplish it and get the results you want. But you have to start at the very beginning when selling – concentrate on your image. This means having the reputation that you can be proud of. Your target clients need to have a positive impression of you and your business before you can even sell anything to them.

Many experts in fact highly recommend this one. If you want to be better at selling then, you need to focus your energies on providing your target clients with a good reputation. No amount of selling and marketing can help your business without a credible reputation in your niche. There is really no substitute to having a good name in the industry without any taint of disgrace and jaded customers.

However, having and keeping a good reputation entails hard work. It is not like you just have to sleep on it and tomorrow you will have one for your business. And it also does not mean that when you have a good reputation you can just sit back and relax. You need to really work on it.

So how do you gain credibility? There are 4 C’s you need to be aware of:

Competence

You need to know everything there is to know about your business. You need to be an expert in what you do. This is competence at the very core. By becoming an expert, you are most likely to gain clients as they would be looking for your solutions every time for their problems.

Confidence

As you know very well what your business can do, you will have confidence to market your product or services because you believe in them. The more confident you are, the more likely that your customers will think the same way you do.

Commitment

As a business owner, you got to have commitment as you are the first sales agent of your products and services. Who else would sell your business for you? Selling and marketing is a necessity to having a business. So it would be wise for you to be committed and stay that way to your business.

Character

If you want to stay in business for a very long time, you need to inculcate virtues that your customers would be looking for – honesty, integrity and a sense of fairness in all your transactions.

When you have all these C’s, it would be much easier for you to stand by your products and services which in turn, make it less stressful for you to sell and market your business.

For comments and inquiries about the article visit: Brochure Printing Company

Business, Sell

May 15th, 2011 by admin

Article by Anne Brown

Many times, business owners make the decision to sell a business and too quickly dive into a listing arrangement without considering all of the consequences.

As a business owner looking to sell a business, here are a couple of issues to keep in mind if you want to sell your company quickly and at a good price.

Deal with a professionalAs a business seller it is in your best interest to deal with a business broker, intermediary or specialist that focuses on the selling of businesses. Oftentimes, owners list their companies for sale with an individual who normally focuses on residential real estate and are disappointed when their business doesn’t sell. If you want to sell a business, it’s better to deal with a specialist.

Selling a business requires a unique skill set and the process is much different than selling a piece of real estate. For instance, business sales are usually kept confidential so dealing with a business sales specialist will benefit you by working with a professional that has an existing network of potential buyers interested specifically in businesses for sale. There is also more technical expertise required (example – business valuation for the purpose to sell a business is much different than determining the value for a piece of real estate, the negotiation is usually much more involved, there are typically more deal terms to be negotiated, due diligence must be managed and the overall transition facilitated). If you are looking to sell a business please choose to deal with a professional that specializes in business sales.

Declare your incomeToo often, business owners don’t ‘declare’ a portion of their business income in order to have a lower tax bill. This is highly unadvisable. For starters, CCRA would not be too happy if they discovered such activity. Secondly, from a purely economic point of view, it costs you, as a business owner, in the long run when you go to sell a business. For instance, suppose you decide not to declare ,000 in earnings and keep this instead as cash ‘off the books’. If your overall small business tax rate was 23% you would be saving about ,300 in taxes. Alternatively, supposing you did declare the full amount you would pay ,300 in taxes and be left with ,700 in ‘declared’ income. However, supposing your business was valued at 2x earnings you would be gaining ,400 in supportable business valuation when the day came to sell the business.

The point is that it may seem appealing in the short-run to cheat and not declare income but it really does pay to be honest. Businesses with undeclared earnings are much more difficult to sell and much more difficult to justify a valuation on. Business buyers always like to see properly documented and supportable earnings.

Do some analysis on your businessWhen you decide to sell a business, it is important to be able to tell a narrative to potential buyers about your business. Do some analysis and try to anticipate what an interested buyer might ask you. For instance, if profit margins have been decreasing, find out why. If sales have been decreasing, get to the root of it. Perhaps you had a period where you lost a staff member and have since resolved the situation.

Find out the story behind the numbers to paint an accurate picture to a buyer. Remember that no business is perfect and most reasonable buyers don’t expect it to be. Don’t try to gloss over any blemishes your business may have. Be forthright. Buyers expect you to be honest and if you’re not then that would raise a red flag that could potentially de-rail a deal.

About the Author

Ontario Business BrokersBusiness for Sale in Toronto, Hamilton and surrounding areas in southern Ontario, Canada. We are a full service business brokerage here to help you buy or sell a business.

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Business, Planning, Sell

May 11th, 2011 by admin

Article by Anne Brown

The Strategy Before you Sell

When you finally decide that the time is right to sell a business there is significant work that can be done before you actually can go about showing your business to potential buyers. There is much information that buyers will need and they will have certain expectations that will need to be met in order to successfully sell. Here is a sampling of things buyers will look for in their search for a business for sale.

Overall condition of the business

If you want to sell a business one of the first things you should check on is the first impression the business gives. A clean and orderly business will make a great first impression on any potential buyer and should not be overlooked.

Customer records

Do you have an up to date listing of your customers’ records? When you go to sell a business one of the first things that a potential buyer will ask for is the status of the current clientele. Neglecting this important information will not serve your goals as a business seller.

Condition of your equipment

Have you done regular maintenance on your key pieces of machinery? Do you keep service records? Is everything in good working order? When you go to sell a company, ensuring the actual machinery &equipment of your business is working well is crucial.

Operating procedures

If you have more than a simple, straightforward business then a potential business buyer may ask for some well-documented procedures. Especially if there are precise processes that must be followed that are crucial to the operation of the business. When you decide to sell a business please ensure your operations are in order.

Employee information

Please ensure that you have current employee information on file with resumes as well.

Inventory

Have a current inventory count done. Remove any inventory that is no longer usable and maintain an accurate record. Business buyers will want to have a clear picture if a business’s inventory situation.

Get legal representation

Getting a lawyer early in the business selling process is an important step. A lawyer can help you to structure your deal so that when you are presented with an offeryou will not be at a disadvantage. Selling a business is much more complex than a basic real estate transaction and care should be taken. A lawyer can help you sell a business in many different ways: go over a purchase agreement (or letter of intent), obligations pertaining to your premises and equipment leases, your responsibilities (and liabilities) you have with your employees, Vendor financing that you may extend to a business buyer, franchise agreements and your obligations to a franchisor, etc. Getting a lawyer early on is something that is strongly advised.

Talk to an accountant

You will want to have good financial information on hand to present to a buyer when you decide to sell a business. Ensure that your books are in order and have detailed financial information on hand, because a buyer will ask. Have at least three years of accountant-prepared financial statements available, income tax returns, sales tax returns, bank statements, the most recent year’s financial information, employment tax filings, inventory schedule, AP and AR schedules, etc. As you can see… there is much more to selling a business than a simple real estate transaction. Find a reputable accountant if you don’t already have one.

About the Author

Ontario Business BrokersBusiness for Sale in Toronto, Hamilton and surrounding areas in southern Ontario, Canada. We are a full service business brokerage here to help you buy or sell a business.

More Selling A Business Articles

Business, Sell

May 9th, 2011 by admin

For a lot of business owners out there, they reach a point when they are ready to walk away from the business or sell it off. There are a number of different reasons why. Some choose retirement, other fall ill, relocation opportunities, and many, many other reasons. A franchise owner is no different from these business owners. Selling a franchise resale can be as frustrating as selling any other type of business.

It’s only a matter of time before a franchise owner will go through the process of selling their franchise. Unfortunately, many of those franchise owners get involved in the selling process uninformed and unaware about what to expect. The result is endless amounts of frustration and usually a lower selling price than what the business is worth. Here are a few tips to help make the sale of your franchise much easier:

Go over your Franchise Agreements. You’ll want to review the section which includes the terms of transfer and sale. Pay attention to the stipulations, if any, concerning to whom and for how much the franchise can be sold. If it does, you’ll need to follow all of the steps necessary to prepare the sale to a third party. Be sure to verify your rights with the franchisor beforehand to avoid any misunderstanding. If you have any enduring and transferable contractual obligations, they should be revealed to the prospective buyer. Put in writing, a minimum of 10 days prior to the intended sale. Put together a written notice of your intent to sell. Don’t forget to provide all involved parties with the Franchise Agreement copy at least 30 days prior to the sale date. Read over the agreement first though and see if there are any stipulations which allow for a shorter notification period. Find a franchise attorney if you find yourself bound to the Franchise Agreement and there is no transfer and sale clause. Some even forbid the sale of the entity all together. Using the help of an attorney, you can probably find a legal means to exiting the agreement with no legal discourse without losing your investment. Have a nice sales package put together. Make sure your assets, employees, asking price, disclosure materials and any other pertinent information required by the city and state are included. Don’t be afraid to ask your franchisor for help. They usually have a list put together of prospective buyer contacts within your territory just chomping at the bit for an opportunity. Be prepared to answer any and all questions a prospective buyer will ask. Pay close attention to questions concerning your market, forecasts, and profit history. A nice list of facts and figures can help you pitching your sale. Let the prospective buyer that you will be willing to train or assist with setting up the business for its new grand reopening in order to instill confidence in the purchase.

Franchise, Idea, Operation, Sell, Steps, these, through