Whenever anyone wants to sell an asset, a house, a car, a business, they want as much money as possible.  Many business owners also want what they need to retire on when thy sell their business or what they can boast to their friends that they got for selling the business but is this realistic?  There are many businesses for sale which have been on the market for a long period of time – why?  Is there a problem with the business or is the business owner asking too much money for the business? (more…)

Many people have great ideas about starting a business but their expectations are unrealistic.  Some people believe that they have done homework but they have not done the proper marketing research.  I received a call regarding starting up a retail store.  What research did they do for location?  Basically they said, there were other clothing stores in a strip mall if if people go to them, they will buy lingerie from my store.  Is that sufficient research? (more…)

Everyone who wants to buy a business wants to know how much money did the business really make.  This is referred to as normalized income.  This means the income that would remain for the new owner once the old owner left.  That means that all personal expenses are removed, salaries paid to family who are not working in the business and a reasonable salary for the owner.  Many sellers of businesses do not realize that if they work there every day 5 days a week, they need to be paid a salary to cover their work. Anything over and above this reasonable salary is considered earnings attributed to the shareholder. (more…)

I believe that over the last year, investors have realized that our economy is truly worldwide and what happens in one part of the world has an impact on another.  We are going through very uncertain times at the moment and there are several large items which are currently impacting decisions.  The oil spill in the Gulf of Mexico, the debt problems with Greece, the stimulus money being spent by all governments and the investigation whether the stock broker model in the US  needs to be changed, are stock brokers there to help you make money or if their prime business model for them to make money.   How does this impact your business for sale? (more…)

If you have a retail store or franchise, the most important aspect of location is the traffic that comes to your location.  Are you a destination where people come specifically to your location or do many of your customers come on impulse when they are driving by?  Is all traffic the same?  How important is good neighbours for your business? (more…)

If you want to buy a franchise, should you buy a new franchise from the master franchiser or should you buy a resale, one which has already been owned and operated by an existing investor?  There are pros and cons with both and you will have to pick the one which suits you the best.  Here are few things which you need to consider: (more…)

Everyone is currently monitoring the oil spill in the Gulf of Mexico but does anyone realize the economic implications of the oil spill outside the areas near the oil spill?  It will affect more than just the businesses in the Gulf.  How will affect you, will it cause your earnings to drop, if so, do you sell your business now rather than in a few months? (more…)

All business owners want to retire with the most money in their bank account so that they do not have to work again.  Many business owners believe that their business is worth more than it actually is or more often that is the amount of that they believe they need to retire on and want their business to sell for that amount.  Unfortunately the value of your business is not what you want it to be or need it to be, it is what the market will bare. (more…)

You currently have your business for sale and you are hoping to find and investor.  Since it takes a long time to find an investor, let’s assume that you find a potential buyer of your business next month.  Sales have been normal up until May but sales start to drop.  How do you explain the change to the investor?  Is this a one time change or is your business really going down hill quickly?  What do you do? (more…)