Posted ByKylie PerkinsA cabinet shop can be started in a homework shop, but in order to do it right a person would need to have a spacious place to do the work. They would also need to have real experience in cabinetry and wood working detail. A knowledge of how to do the work and an artist eye would make a terrific combination to some one looking to own a business in this field.
The good thing about seller financing is that it shows that the seller is being serious and honest about the deal, and is not trying to offload an ailing business onto you. It shows that he has enough faith in the business he is selling to share the risk involved in running it with you. There’s no better way to be sure that a business is really worth buying. Seller financing also allows for far greater flexibility than any other kind of financing.
If you don’t know where you’re going, any road will take you there! As with all projects, planning is the most important step. Define the goals and detail the tasks of how to meet these goals. Knowing exactly what type of food & beverage (F&B) business to buy, otherwise the search becomes an endless road of dead-ends. Know your strengths and weaknesses. If your career has been working in the fast food business, then a full service restaurant probably isn’t a good choice. If a full-time job prevents full-time effort on the project, then block-out 5 to 10 hours a week to work on it. But make the time in any case. This is probably the second largest investment a person makes. So invest the time and thought into it.
Prepare Your Business for sale Pattaya. Every business will be sold. No owner lives forever. Whether the sale is to family, employees, other stockholders, or third parties, the business will be sold. The failure to sell will probably end up as a liquidation but even that is a sale of sorts, just not the one you want.
Professional Business for sales can be an excellent source of information about small business and the total business buying process. If you select a local broker, he or she will be familiar with the local market. They should be able to advise you about trends and pricing in the local area.
Then using the NE figure you treat the business like an investment and assume that the NE is like the return you’d get on some income sitting in a bank somewhere. If your average net income for the past 3 years is $50,000 then you treat that like the interest you’d make, and figure out how much you’d have to have in the bank to make that much in interest.
The reason why I bring all this up is because both of these industries are familiar to most people. Also, I need to make a reference for commissions. What I really want to mention is the fact that business brokers (yes there are brokers that sell businesses) are making, on average, a staggering 12% for the sale of a single business. On a million dollar business that is a $120,000 commission. This is almost ten times higher than the stock portfolio management fee from the example above and twice as much as the real estate commission. The real kick in the pants is that it takes almost no training to become a business broker and no formal education required.
The terms are more important than the price to the seller. One business broker told me that through his experience sellers of businesses are much more interested in the people that are buying their business as opposed to the price. Most business owners/ managers are more concerned that their people, reputation, and clients are well taken care of as opposed to the large chunk of cash they have to pay taxes on when they sell the business. These sellers are usually business owners/managers as opposed to true absentee owners. If the wrong buyer is trying to acquire the business, the price will never be enough. If the right buyer is buying the business, the price is always negotiable.