Selling My Business – How Much is My Business Worth?

Almost all businesses are for sale to some degree. Lets say yours is not For Sale. Assume Your business is worth $100,000. You love what you are doing, someone contacts you with an offer to buy your business for $500,000. Is your business now For Sale? The preceding is not a likely scenario for most business owners. To successfully sell your business planning and preparation is needed. But if you are now or at some point considering the sale of it you may want to consider the following 3 points:

1. Identify your honest interest level when selling your business. Early in the decision process of selling your business consider what approach you may take towards selling it. As a Business Broker in Florida I interact with the various interest levels by small business owners.

  • – My business is not for sale but if someone walks in and offers me way more than what I think it is worth- I would sell it
  • – My business is not for sale but if you run across someone that would want to buy it please let me know. – I want to pursue selling my business but I won’t sell it for less than…( A somewhat inflated price). I am willing to accept that it may take 1-2 years to sell my business, and if priced too high I can accept the fact that my business may not even be sold.
  • – I want to pursue selling my business and after significant due diligence I feel the price I am seeking is consistent to what other like businesses have recently sold for.
  • – I want to sell my business and I want out now. I will set my price aggressively and set a lower price than price currently sought for businesses similar to mine. I will expect this aggressive pricing to both help me sell my business and decrease the amount of time it will take to sell my business.

If you do have a true interest in selling your business as suggested in above last 2 points you do need to exercise due diligence to gain understanding of what the value of your business may be.

2. You can expect that the perceived value of your business to you and the value of the business to a potential buyer will probably be 2 different values.

  • – Ultimately the price of your business is what a willing and able buyer is prepared to pay to buy your business.
  • – Seek “reasonableness” to your price that you will seek to sell your business for. If similar businesses to yours are sold at 1 1/2 times adjusted cash flow, why is yours worth 3 times adjusted cash flow? – Ask yourself what you honestly would pay to buy your business
  • – Do a free Search on my website or other similar websites to find out what similar businesses to yours is asking to sell their business for. Remember – all businesses are different, but use such a search as part of your due diligence. A business for sale asking price and the price a business sold for can be greatly different, but asking prices can provide some basis-while current Businesses Sold information is more pertinent
  • – Speak to your trusted advisers. A business broker may be able to help with non-public info on sold businesses in your area. Your accountant or attorney also may or may not be aware of such sales as well. A Professional Business Valuation specialist may benefit you.

3. Whether it is part of your exit strategy to sell your business or not, you should have an exit strategy.

  • – Most small business owners do not have an exit strategy.
  • – If you own a business you should have an exit strategy. Do some planning, perform some due diligence. Know what you have or may have.
  • – Even if you are not planning to sell your business there is value in knowing approximate value of this potentially large asset. You know what your house is worth, you car, your other assets. Understanding the value of your business can be a significant piece of information when planning ahead.

Selling ones business can be a rewarding experience when done properly. Understanding a proper value for your business can set the stage to a successful sale of your business or a business that is unable to find a willing and able buyer.

Is An Online Home Business Worth The Effort?

The idea of setting up a work from home internet business does appeal to a lot of people but many never actually doing anything about it. Having your own ‘part time business’ that brings in extra income and satisfies your inner entrepreneur desires sounds great, but is it really worth the effort?

How can you build an online home business if you don’t have anything to sell? And, suppose you did have a product or service, how would you actually sell it on the internet, or get it shipped to the customer and then receive payment for it? These challenges are often the obstacles that aspiring online business owners believe will prevent them from ever getting a business on to the internet. But these barriers that are simple to resolve.

Where Do You Start?

The global economical problems over the past few years have been very tough for conventional business ‘offline’ owners. But, conversely, there has been a huge increase in the number of people buying goods and services on the internet. This is good news for people who have taken advantage of internet home business opportunities.

Probably the most popular strategy that entrepreneurs use to generate revenue on the internet is affiliate marketing. Although there are many online home business models available, affiliate marketing must rank as one of the top ones, if not number one.

Basically, the affiliate marketing model is when you promote someone’s product over the internet. You can sell digital products, tangible products, or both. Digital products include eBooks, video courses and membership websites that can be used online or downloaded directly to the customer’s computer. A tangible product is something that is physically delivered to the customer’s address.

A Proven Home Business Model.

Affiliate marketing is great way to start a work from home internet business. There is a wide range of different business markets that you can get involved in. You do not need your own product or hold any stock. Additionally, you don’t have to organise any deliveries or get concerned with payment systems as the product owner takes care of all of these issues. Your job is to find the customers and promote the products to them. When they buy something, the product owner pays you a commission.

When starting your own online home business, the main thing is to get involved with an industry or product line that you like. It will be challenging to keep your commitment going with any type of online business if it concerns something that does not interest you.

Having a work from home internet business is very fulfilling. As your business grows you can enjoy the extra income that it delivers and have the satisfaction that you have created it. Eventually as it becomes more profitable you may be able to give up your regular day job and enjoy the freedom that of working when and where you want so long as you have a computer and access to the internet.

What Makes a Business Worth Investing In?

You have always been interested in investing in a business, however you always hold back because you are scared of making a bad choice and losing your investment. However, there are some ways to evaluate businesses to reduce the risk you are taking when you invest. Of course, risk is never eliminated, but when you properly evaluate what makes a business worth investing in then you will more than likely have your answer whether the company will be a success or failure before you invest your dollars. The following tips will help you make the right investment.

Investment Tip #1 Management

When deciding whether a business is worth investing in or not you need to evaluate the management because a business really is only as successful as its management. Because of this you want to evaluate if the management is knowledgeable, rational, and able to make the right choices to make the company money and prevent it from losing money. Of course, this is an easy question although the answer is a little more difficult.

Investment Tip #2 Business Plan

A business plan that is well laid out and shows positives, negatives, and how the company and management will handle problems within the business is very important. A good business plan shows that management knows where the company is, where it wants to go, and what it needs to do to get there. Be sure you take a look at a company’s business plan before you invest.

Investment Tip #3 Return on Investment

The ROE, or return on investment, is also crucial when you are considering making an investment in a company. Of course, the ratio of equity to debt can be confusing, but if you evaluate the ROE and other economic factors you should be able to tell if the company is bringing money in or losing it.

Investment Tip #4 Room for Growth

Making sure the business has room for growth in its market is also important. A company that has little competition is preferable, but a company with a moderate amount of competition and a plan to be number one is OK as well. Just do your research.

When you are interested in investing in a company you need to take your time and evaluate the company, look over financial statements, talk to management and have all of your questions answered to your satisfaction. After all, it is your money and you aren’t going to give your money to just any company. So, be sure and confident in the company and have that backed up with proof and you will decrease your risk investing in a company.