Tags |
|
|
Links |
|
|
Answer Upon - The Basics Of Buying A Small Business
After working for two postcard printing companies (and dealing with many more), I've learned quite a bit about the challenges real estate marketers face when using direct mail postcards. I've also learned the best practices of real estate postcard marketing, the kinds of techniques that can increase your response rates.The problem is, many of these challenges and best practices do not get communicated to the individual real estate agent using the postcards. It's not that the postcard marketing companies are being deceitful. It's just not in their best interest to share certain facts of postcard marketing with their real estate customers.So I would like to fill that educational void. I'm sharing this information to give you a realistic picture of real estate postcard marketing today, and also so you'll know how to get the best possible return on your postcard investment.Here are three things real estate postcard companies won't tell you (but probably should):1. Postcard Marketing is HardYou may be under the impression that marketing with real estate postcards is easy. After all, you just fill in the postcard template with your information, have the postcard company print them and blanket the area with your message, and then sit back to watch the leads roll in? Right? Wrong. If it were that easy, every agent who ever used real estate marketing postcards would be a success story. But clearly that's not the case.Real estate postcard marketing is not a simple, one-size-fits-all approach. It's a numbers game, a game of attrition. The more mistakes you make along the way, the lower your end numbers (responses) will be. If you don't optimize every aspect of your real estate postcard campaign -- from the initial idea to the final offer -- you will probably be disappointed with the results. The problem is, most real estate postcard companies cannot offer their customers the individual attention needed to maximize their results. After all, they have logistical limitations. With a dozen or so staff and thousands of customers, how could they offer such individual attention?So, you'll have to educate yourself about the many aspects of real estate postcard marketing. You can arm yourself with this knowledge before you even approach a postcard printing company. That way, you can bring the marketing strategy, and let the postcard printer do what their best at (printing and mailing your postcards).2. Bad Mailings Do Not Get Better With Time"Be patient and persistent. Success will come after a few mailings." If I had a dolla
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar o
Have you ever heard of backlinks? If not, you have come to the right place. Here, through this informative article, we will take a much closer examination of backlinks. Not only will you be able to learn more about backlinks are and how they work, but you will also be able to find out how to build your own backlink. Read on to find out more.What Are Backlinks?Backlinks are incoming links to a website. They allow you to keep track of other websites on the Internet which have links to yours, whether or not the links are direct, and what types of keywords the website has provided in their anchor text (meaning what the link says). They are used in order to rank the popularity of a particular website, which is more or less the main reason that they are used.Why Are Backlinks Important?Chances are that you may already know that backlinks are very important when it comes to have your website in a search engine. If not, it is probably the most important thing that you should know when it comes to backlinks. So, why are backlinks so important?Well, backlinks play a major role in determining how well your website will do in a search engine. This is because many search engines will decide on how to rank a website according to how popular that particular website is. If you are interested in increasing how well known and popular your website is, it is definitely a good idea for you to build a backlink.How Do You Build a Backlink?The best way to build a backlink is to use a backlink building tool. You will be given the ability to enter a specific keyword. After you have done so, the backlink building tool will give you a choice of websites where you can post an article, a post, a message or a backlink to your website. After you have been given the websites to choose from by the backlink building tool, it is then up to you to visit them.There are a number of different ways that you can build backlinks for your website on your own, without the assistance of a backlink builder. For starters, one of the easiest is getting yourself listed in website directories. Another great way to build a backlink is to add links to your website through a forum post. This is one of the most common ways to build a backlink. Other common ways include blogs and article directories.Building a backlink is not hard as long as you have an idea of what you are doing. Your best bet is to try out a backlink building tool in order to build your backlinks.
IS THERE A SMALL-BUSINESS OWNER who has never considered selling his business? Probably not. Is there an individual with some money, talent, or an urge for independence (often only the last) who hasn't thought about owning his own business?
The number of small businesses actually bought and sold, however, represents only a small fraction of those who have felt these urges. To many people, the desire to buy or sell is only a passing thought. Others find various ways to solve their problems or satisfy their ambitions. But sometimes an individual doesn't follow through because he finds the prospect of buying or selling a business too baffling.
The Flow of Decisions in a Buy-Sell Transaction
BUYERS AND SELLERS both seek answers to the same question: "What is this business worth?" Most people see the worth of a business as the total value of equipment and fixtures, inventory, and buildings and land. Important, certainly, but the sum of these values does not equal the value of the business.
For both buyer and seller finding the answer to this question is the most difficult and at the same time the most important step in the buy-sell process. But this final decision reflects many other decisions made while the transaction is being considered. In other words, the buy-sell process is a flow of decisions. It would be impossible to point out every decision that must be made, but the basic ones are as follows:
• Motivation: a decision to attempt the sale or purchase of a business. • Contact: a decision on how to find a buyer (or seller) for a business with specified characteristics. • Information: a decision on what information must be gathered or given to buy or sell a business. • Sources: a decision on how, where, and at what cost the needed information can be obtained. • Analysis: a decision on the meaning, importance, and reliability of the information gathered. • Value: a decision on what the business is worth. Price: a decision on how much money to take or give for the business. • Financing: a decision on how to pay or receive the purchase price. • Contract: a decision on the form and content of the contractual relation. • Implementation: a decision on how and when to effect transfer of ownership.
How important is management ability in this business?
Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.
Does the prospective owner have the ability to manage successfully?
Effectiveness with people (customers and employees), eagerness to tackle difficult problems and make decisions, and intelligence about general business operations are key ingredients in management ability.
Can he/she learn how to manage this business?
Most people can learn to manage if they recognize the need. This requires room to make mistakes, however, and the self-discipline to undertake self-improvement programs.
Value
A business has a purpose. That purpose is to provide a satisfactory return on the owner's investment. Consequently, determining value involves measuring the future profit of the business being sold.
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar o
And the answer is Education-based Marketing. Education-based marketing is simply the process by which you attract and convert highly-qualified clients by giving them what they want - valuable information and advice that solves their problems - and removing what they don't want, a sales pitch.Education-based marketing is generally undertaken by delivering Credibility Marketing techniques such as public speaking, information based teleclasses, publications, networking, hotlines, free educational give aways (such as reports, assessments, tools, ecourses), etc.As opposed to sales-based marketing, education-based marketing means.- You give your prospect what they really want - highly valuable information. And you take away what they don't want - a sales pitch.- You maintain your dignity and feel good about yourself as you never make an effort to sell.- Your brand recognition and respect will skyrocket! Education-based marketing is the ultimate brand builder. By positioning yourself as the 'expert' or 'specialist' by solving, through your education products, the most pressing issues your niche confronts. You become the only logical choice in your market.- You can establish yourself as a credible authority as prospects depend on you as a reliable source of valuable advice.- You significantly reduce your marketing costs - and can in fact get paid to market yourself. This vastly compounds the net worth of every client you attract - you can actually earn double the net profit with only half the clients!- You don't have to seek out new prospects - prospects come to you (to have their problems solved).- You can maintain (mutually beneficial) contact with your prospects through the sales process because they don't feel pressured by a sales pitch and value your information and advice.- You reach prospects early during the first stages of their decision making process.- You attract 'moderately interested' prospects that may otherwise be afraid to call you but are not afraid to request your information.- Due to the high level of trust and rapport built early on you'll be perceived as an adviser, not a salesperson, making added-value sales dramatically easier.- You dramatically increase your referrals from prospects as they feel loyal to you - due to a relationship built on trust and reciprocal obligation and your efforts to help them - even if they don't hire you! And your referrals will come much earlier in your relationship.- You gain compounded advantage as your information is passed freely
For both buyer and seller finding the answer to this question is the most difficult and at the same time the most important step in the buy-sell process. But this final decision reflects many other decisions made while the transaction is being considered. In other words, the buy-sell process is a flow of decisions. It would be impossible to point out every decision that must be made, but the basic ones are as follows:
• Motivation: a decision to attempt the sale or purchase of a business. • Contact: a decision on how to find a buyer (or seller) for a business with specified characteristics. • Information: a decision on what information must be gathered or given to buy or sell a business. • Sources: a decision on how, where, and at what cost the needed information can be obtained. • Analysis: a decision on the meaning, importance, and reliability of the information gathered. • Value: a decision on what the business is worth. Price: a decision on how much money to take or give for the business. • Financing: a decision on how to pay or receive the purchase price. • Contract: a decision on the form and content of the contractual relation. • Implementation: a decision on how and when to effect transfer of ownership.
How important is management ability in this business?
Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.
Does the prospective owner have the ability to manage successfully?
Effectiveness with people (customers and employees), eagerness to tackle difficult problems and make decisions, and intelligence about general business operations are key ingredients in management ability.
Can he/she learn how to manage this business?
Most people can learn to manage if they recognize the need. This requires room to make mistakes, however, and the self-discipline to undertake self-improvement programs.
Value
A business has a purpose. That purpose is to provide a satisfactory return on the owner's investment. Consequently, determining value involves measuring the future profit of the business being sold.
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar o
The number one requirement, whether you are a business owner or an employee, is to be able to say what you do, and say it with influencing results. Through testing, I have seen, experienced, and received feedback that an elevator speech no longer works. My test results show that elevator speeches are too slow and too boring. People know what’s coming and have mindfully tuned out it out before the first sentence. Elevator speeches don't stop the listener in their moment, which is exactly what you need to do. An introduction that starts with a firecracker impact does stop them in their moment.Pitching what you do needs energy -- energy in your voice and body language. The same energy you have if you're pitching your screenplay to an agent or getting a large crowd’s attention. Elevator speeches have become over processed and passive. People only notice if you give a poor one and that is because they measured it against their own. A good introduction, without a firecracker beginning, doesn't stop them in their moment.You want them to remember you and your answer for a long time. Not just 10 minutes, the next day when they call you to pitch you, but next week, next month, when something happens and their pain appear. Better yet, when they are talking to someone else and see the pain-solution results. They see you as the answer. A firecracker stays with people for quite some time. Where were you the last time you saw fireworks? Once triggered, I'm sure you remember the day, the time, and whom you were with quite quickly.You will want to create a memorable firecracker introduction that you can use everywhere -- in any introduction, any situation, as the key point of every presentation, voice- mail message, e-mail signatures, slogan on a business card or even as a headliner on your website home page.Let’s learn this process together by beginning with a few examples I created. These examples will also give you hints on how you can open your pitches with a firecracker moment. Pitches that change people’s moments – ignite a firecracker under their assets.Let’s assume you are at a networking event and someone asks, “What do you do?” You can open in one of several ways depending on the function and what you thought would intrigue people attending this event. The introduction must always lead to getting them to act on only one call to action. If your call to action is to sell space in an upcoming workshop, you don't promote your consulting services. Multiple action calls will dilute your message. Even
How important is management ability in this business?
Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.
Does the prospective owner have the ability to manage successfully?
Effectiveness with people (customers and employees), eagerness to tackle difficult problems and make decisions, and intelligence about general business operations are key ingredients in management ability.
Can he/she learn how to manage this business?
Most people can learn to manage if they recognize the need. This requires room to make mistakes, however, and the self-discipline to undertake self-improvement programs.
Value
A business has a purpose. That purpose is to provide a satisfactory return on the owner's investment. Consequently, determining value involves measuring the future profit of the business being sold.
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar o
The primary advantage to formal configuration management is a resulting project with good change management, as evidenced through changes that are properly identified, structured, linked and owned. Configuration management provides the documentation explaining why the project changes occurred, who approved the changes, and who the assigned change owner is.The PMBOK says that the Project Manager is responsible for the following change management responsibilities: 1. Recognizing when a change has occurred. 2. Filtering out changes from inappropriate people. 3. Ensuring that change is beneficial. 4. Managing the changes as they occur.Configuration management is the system for performing these responsibilities as well as providing product, system and software version control.The primary disadvantage to configuration management is that it takes time, cost money, and can bring with it a level of formality that some people view as unnecessary or are uncomfortable with. If all project managers were walking computers, we wouldn’t need formal documentation and configuration management (CM) tools. However, since PMs are generally juggling many complicated priorities, can’t remember all of the details, and more importantly communicate everything perfectly they may need to take the additional time to use the sometimes formal CM techniques.Another disadvantage to CM is that customers usually know that this documentation work takes time, and when in an urgent rush to get productive work done, and minimize the project costs, they may not see this work as directly adding value to their product. Some customers do not want to pay project management rates for what may be perceived as clerical work or work that could be handled less formally.And it is possible that some customers don’t want change handled formally because the ramification is that they will be charged for changes which they would prefer to slip in unnoticed. This however brings us back to the advantages of a configuration management system, because it informs the customers of how changes are going to be handled from the beginning.Guidelines for UseThe Institute of Configuration Management (ICM) at http://www.icmhq.com provides didactics and certification in CM. Below are guidelines for use for general configuration management which are oversimplified here compared to the level at which it is discussed at ICM. This discussion is geared towards a small-to-medium sized project environment, which is one at a much lower-technology and complexity level than those wher
Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.
Does the prospective owner have the ability to manage successfully?
Effectiveness with people (customers and employees), eagerness to tackle difficult problems and make decisions, and intelligence about general business operations are key ingredients in management ability.
Can he/she learn how to manage this business?
Most people can learn to manage if they recognize the need. This requires room to make mistakes, however, and the self-discipline to undertake self-improvement programs.
Value
A business has a purpose. That purpose is to provide a satisfactory return on the owner's investment. Consequently, determining value involves measuring the future profit of the business being sold.
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar o
What is a wholesaler?Think of a wholesaler as your direct link to purchasing from the manufactures. If you are not buying from the manufactures directly, then you quite often have to deal with wholesalers.Usually wholesalers will hold large quantities of stock, and can therefore charge you what is known as a trade price. Now, I will come onto who can deal with wholesalers in a minute, but more often that not you have to buying from a wholesaler with the intention to then re-sell. Normally you will have to buy in a big enough quantity to reflect that. For example it is no good saying to a wholesaler, “I need one of these and two of these, that’s it!” because they will not be able to sell to you at a competitive rate, if at all. “When purchasing from a wholesaler, be prepared to buy in bulk” One thing we have to get straight is, wholesalers are usually very big organisations and therefore hold a lot of stock. Their money is made by the quantity they sell, rather than the price per unit, therefore many wholesalers may impose a minimum order quantity or a minimum purchase amount. What you have to understand is that, most, if not all wholesalers will give you a better price per unit when you are buying larger quantities. When planning your purchasing take this into consideration.“Remember, wholesalers will give you a better price per unit when you purchase higher quantities”Many new comers to the business world see wholesalers as untouchable suppliers that will only deal with the large retail outfits. For some this may be the case, but many are just like you and me, they are there to make a living and therefore as long as you meet their criteria in terms of who you are, and how much money you have to spend, they are more than willing to deal with you.“Wholesalers aren’t just organisations that deal with the large retailers!”In terms of who you are, what I mean by that is, many wholesalers only deal with you if you are what they classify as “trade”. Trade can be described as a business entity, sole trader, partnership, ltd company, ect ect. The tricky classification is that of an eBay trader, some wholesalers do call this trade, but others don’t, so again watch out for that when doing your research.“Identify which category of “trade” you are in early!”Remember that wholesalers are key to the success of your business. Unless you are going to buy from the manufacturer directly, or find some form of broker deal each time, you are going to have to rely on a wholesaler. One thing to rememb
A seller often thinks of value as representing the money he has invested through his years of ownership. A buyer is tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. An owner may have invested $40,000, the tangible assets may have a current worth of $20,000, but it is the profit potential that establishes the value of the total business.
Assuming that a reliable estimate of future profit is made, how much is to be paid for each dollar of profit potential?
What am I buying (or selling)? Is it a business or a building full of equipment and inventory?
What return would I get if I invested my money elsewhere--in stocks, bonds, or other business opportunities?
What return should I get from an investment in this business?
Price
It might seem that the price to be paid or received for a business would simply be equal to the value. However, value refers to what a business is worth; price refers to the amount of money for which ownership is transferred. There is usually a difference between price and value because the buyer and seller differ as to how much the business is worth. The price will represent negotiation and compromise.
Here are two suggestions for fruitful negotiation:
• Discussion between buyer and seller should focus on the future profit performance of the firm. Since expected profit is basic to determining value, it can be a valuable point for negotiation.
• Every profit projection includes some assumptions and risks. Generally, the less firmly based the assumption and the more apparent the risk, the less value an expected profit can support. Consequently, identifying and analyzing risks involved in future operations can make discussions between buyer and seller more significant.
These two points will help bring negotiations about value toward a mutually acceptable price.
Sources of Financial Information
BOTH BUYER AND SELLER are interested in financial information, affecting the buy-sell transaction. However, since the seller already has this information, it is a major requirement for the buyer to get and make use of as much of it as possible.
The buyer can usually find financial information in the following places: (1) financial statements, (2) income-tax returns, (3) other internal records, and (4) other external sources.
Financial Statements
The results of the financial transactions of every company should be reflected in its periodic financial statements. These statements are extremely important in buying or selling a small business. They were prepared for the seller, of course, and their contents are available to him. But the buyer, too, should be aware during the early stages of a buy-sell transaction of the information contained in financial statements.
Balance sheet and income statement. The balance sheet is a statement of the financial position of the business at a given moment in time. The income statement is a summary of the revenue and expenses of the business during a specified period of time. These financial statements show only the past results of the company's transactions. The results of future operations may or may not be similar.
Balance sheets and income statements in themselves contain important information, but they are most useful when a professional accountant makes a detailed analysis of them. A complete analysis includes a review of the manner in which the statements were prepared, and perhaps also a review of the records and control features of the accounting system. This is especially imp
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.hubyou.info/article/42808/hubyou-The-Basics-Of-Buying-A-Small-Business.html">The Basics Of Buying A Small Business</a>
BB link (for phorums):
[url=http://www.hubyou.info/article/42808/hubyou-The-Basics-Of-Buying-A-Small-Business.html]The Basics Of Buying A Small Business[/url]
Related Articles:
How Questions Help us Focus on the Reasons Buyers Purchase
Bookmark it:
|