In this age of job uncertainties, many are looking towards self-employment and business ownership in order to create a more stable life and future. It’s certainly not an unwise plan when living with the day to day stress of fearing your job may be next on the chopping block with few new positions open, as so many others have experienced. Though business ownership certainly presents a different set of stresses and likely even greater effort, it is building equity and a future that belongs to you and your family.
Regardless of your starting place for business ownership, a financial investment is required. Starting a business from scratch is one approach. This requires a smaller initial investment typically than buying an existing business, but it carries significantly increased risk. Purchasing an existing business is more costly, but you know what you are getting, with information about its financial earnings and potential. Franchise businesses have advantages of established brands and valuable advertising, along with operations assistance and industry knowledge. Purchasing an existing business or franchise will increase the odds of success and a quick return on the investment.
If you are considering business ownership, contact a local business broker first to find out what opportunities may exist in your area. Business brokers are third-party intermediaries who help entrepreneurs find the right businesses for their needs through a comprehensive search of available businesses, most of them not released to the public for confidentiality reasons. The broker will assist the buyer through every step from investigating the business to financing through to a successful closing. Business broker commissions are paid by the seller, making their valuable services to the buyer priceless, in every sense.
A business broker plays an important role when it comes to helping buyers and sellers of small to medium size businesses. He or she will typically act as an intermediary between the seller of a business and other parties who are interested in purchasing a small business. Strategic planning in a business sale provides the ultimate amount of control for the owner and, in most cases, the highest transaction value. Engaging a competent business intermediary who brings an experienced exit planning and transaction team will provide both peace of mind and financial rewards when the ultimate day arrives to sell the business.
To determine the true worth of your company, consulting a business broker would be a good option. If you own a business in say, Hamilton, then make sure that you find a business broker who can offer you good service in that region. Next you need to build up the structure and terms of your sales agreement. This agreement should involved all important aspects of the deal including, the impact of taxes, sash required at closing, and human resource continuity.
Confidentiality should be kept in mind when you try to market your business to your buyers. Your other competitors in the region should not come to know of your plans till you have completely sold the business. Develop a sound strategy with the help of your broker.
One of the most essential things, that most sellers tend to forget is to continue running the business with the same enthusiasm, before it is sold. It would be better to hand over a profitable business to someone; moreover you will be able to secure a very high price for a business which is running in profit. Be transparent, and so the bookkeeping sincerely.
Next in the process is the paperwork. The buyer needs to provide you with the letter of intent which should include the price, form of payment and contingencies. It would be a tedious task to go through all the offers and choose the right one. You should probably rely on a business broker; since they are more skilled and experienced in this field they can steer you through all the document work. But don’t it in the backseat, you need to be involved as well, because it is you who has to finalize the agreement.