|
|
Like this article? PLEASE +1 it! |  |
|
Considerations before Buying an Established Small Business - Why is the Vendor Selling?
| Guest post by: Lee Artis |
Article Overview: Before buying an established small business, it is absolutely vital to find out the truth as to why the vendor is selling. There are many valid reasons for selling a small business, however, there are also many more excuses. Make sure that you are being told the truth, and not buying somebody else’s problem. At times a small business owner may know in advance that some external event is going to impact the business. They decide to sell before the event becomes common knowledge. Discover how you can get to the truth before buying an established business and avoid any nasty surprises when it is to late for a change of heart.
 |
Free Download - Does Your Small Business Plan Involve Selling Your Small Business? By Lee Artis |
Considerations before Buying an Established Small Business - Why is the Vendor Selling?
This may, on the surface, seem an unimportant question - it is anything but!
Of course there are many valid reasons for selling a small business. There are also many more excuses. Make sure that you are being told the truth, and not buying somebody else's problem.
At times a small business owner may know in advance that some external event is going to impact the business. They decide to sell before the event becomes common knowledge.
One reason for selling a small business -
For example, when looking at buying an established small business, say a general store on the edge of town, is making 70% of its income from passing traffic. The owner discovers by chance that the traffic on his road is to be diverted away from his shop to a new bypass. This will leave the business with only the local traffic. The business is no longer viable but the current financials are fine.
So the business owner decides to sell while they can. They may tell you that it is time for them to retire, go live closer to the kids or it is time for a change in lifestyle, to get away from small business. This may be the truth, but is it the primary motivation?
Investigate before buying an established small business -
This situation or others like it are common for established small business with an area catchment. The change may be coming legislation or imminent development of a new product line. There are many possibilities. Small business is often vulnerable to change of this sort.
This situation is also ripe for exploitation if the purchaser can see the possibility of restructuring the business and providing a different but allied service or product set. Then the tables are turned. The advantage now lies with the purchaser.
When doing your due diligence it is important to be well informed of trends and events that will affect small business in the chosen sector. The internet and the local council/authority are very valuable resources here. It may also be wise to have a friendly chat with other businesses in the vicinity.
Choosing the right payroll vendor
When buying a business you can ask for vendor finance
Advice for Buying an Established Small Business – Does your business due diligence checklist confirm the business sellers’ financial claims?
12 Questions You Must Ask Before Doing SEO
Some Facts About Buying an Established Small Business
Arranging Contracts
How to assess a franchise?
Vendor Credit Lines Are Essential To Any Business Seeking Financing
Efficient Ordering
3 Cs to Consider While Selecting a Vendor for Outsourcing Your Small Business Needs
Buying a Business
Finding New Financing From Your Vendors
Save Money with Vendor Consolidation
Buying A Franchise
Buying Facilitation® vs. buyer facilitation
Career Planning for Baby Boomers -- Starting, Buying or Selling a Business
Service Continuity -- Key Factor To Consider While Selecting Your Outsourcing Vendor
Change Your Sales Role and Become an Assistant to the Buyer, Your Prospect
Outsourcing – “Been There, Done That” – But Did You Try “Right Shoring”?
Paying for Stock and Debtors
|
About the Author: Lee Artis RSS for Lee's articles - Visit Lee's website Lee has 12 years experience on both sides of the fence selling and valuing businesses of all types and sizes for her clients as well as acquiring corporate businesses as a buyer's agent. Prior to her successful business sales career she had an entrepreneurial background and built several successful small businesses. Her last business was the manufacture and distribution of a range of clothing for women and children Lee had manufactured in Fiji for distribution throughout Australia. Her passion is small business and developing innovative, internet centered commercial businesses of the future. Lee is a visionary and has the ability to see new and creative ways to transform old fashioned, traditional businesses. Lee's industry experience gives her insight into a new way of buying and selling businesses without the expensive involvement of business brokers. Her belief is so strong that she joined Terry McDonald to write this series of books and published articles to equip people with the skills they need to buy or sell a business themselves. For the most cost effective, comprehensive, easy to use DIY Kit (complete with detailed guide and highly regarded Small Business Valuation Software Tool) - For Business Buyers, Business Owners and Business Advisors visit The Bizbuy Kit or The Bizsale Kit Click here to visit Lee's website   Tips for Selling a Business Tips for Buying a Business |
Related Forum Posts
Blog pinging
- Thanks Martin - yes, I do ping and it has been very effective. I'm currently on the first page of Google for Mastermind Group and on the second page for Selling to Small Business.
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
These maybe the coldest franchises out there:
- Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops.
WORST FRANCHISE LOAN FAILURES Failure %
1 OBEE'S SOUP SALAD SUBS 55.56%
2 LADY OF AMERICA 41.94%
3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18%
4 COPY CLUB 36.36%
5 ALL TUNE AND LUBE 35.71%
6 PICKERMAN'S 35.71%
7 PHILLY CONNECTION 35.59%
8 ROLY POLY ROLLED SANDWICHES 34.78%
9 COTTMAN TRANSMISSION 34.48%
10 HAIR COLOR EXPRESS 33.33%
11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33%
12 GODFATHER'S PIZZA 33.33%
13 SMOOTHIE FACTORY 33.33%
14 BLIMPIE 31.39%
15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77%
Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005
Exclusive: Interview with Results
- Hi Forum Members,
I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles).
As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business.
This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business.
I am looking to interview about 30 businesses across North America over the span of 3 months.
At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews.
I would like to extend this opportunity to members of the Forum.
If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM.
Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Re: Biz Plan Competition
- i just wanted to say that posting Small Business Events on CanadaOne is a great resource. Thanks Julie!
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
10 mistakes of media relations
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Top Ten Feeble Follow-up Attempts to Fathom
SEO – Link Building Secrets
The Biggest Domain Name Myth
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.