How to Learn About Any Business and Find Out Which One Suits You Best

One of the biggest mistakes the no-cash buyer can make is to be caught up in the excitement of having found what looks like the ideal business. This can result in taking short cuts in evaluating the business’ worth in order to get the deal sealed-unless the seller gets impatient and sells it to someone else. Make sure to evaluate and thoroughly research the reasons why the business is being sold. You are probably doing the seller a favor by taking the business out of his hands; he’ll accept any strategic maneuvers you offer him.

You might think at that point that all your business deals will be successful. Well, an easy purchase can bring suspicion; be discreet while conducting your research. Don’t make it too obvious. Remember that you will not offend a serious seller if you exhibit the professionalism of a serious buyer. So do not compromise any essential acquisition standards. Once you do the deal, that “baby” is yours…and you want to make sure it’s a healthy one before you sign any ownership papers.

Question: Is there any checklist I should follow while evaluating the business I am interested in?

Answer: Developing an acquisition strategy is a business planning exercise that defines the specific criteria to be applied in searching for and screening acquisition candidates (these candidates are businesses, not individuals). There are many reasons for this planning exercise: it gives you a frame of reference to evaluate acquisition candidates, it keeps you from wasting time on acquisitions that cannot be completed, and it helps you avoid acquisitions you will later regret. A defined acquisition strategy demonstrates that you know what you want to do, making it easier to retain qualified outside advisors as part of your acquisition team. These advisors don’t like wasting time on unsuccessful transactions, and you don’t want to waste advisory fees on poorly thought-out transactions. There are important issues to tackle and information to seek. A firm looking to acquire another company needs to focus on its current operations and identify current strengths and weaknesses. There should an analysis of future industry growth potential and trends within the existing business sectors, and an analysis of the competition.

Next, review past acquisitions and internal growth of the company, noting success and failures, and identify the reasons for those successes and failures. Based on the analysis, you should now outline your reasons for embarking on an acquisition program, determine financial resources available and define the characteristic of the desired acquisition, and finally define your company’s policy regarding financial intermediaries.

Question: How can I locate the right business?

Answer: There is a few ways to locate the business that you are interested in.
Print Advertising:

o Business opportunity classified ads are a viable way to advertise a business for sale. Many ads are placed by intermediaries (business brokers or merger and acquisition specialists), but some are placed directly by business owners. The larger local newspapers are the best source of such ads for smaller, privately-held businesses. Sundays are generally the most popular days for these ads. Business opportunity ads, whether for small or large businesses, usually describe the business in several short phrases, keeping its identity anonymous, and list a phone number to call or post office box for reply. The ad should be worded to demonstrate the business’s best qualities, (both financial and non-financial) and many include a qualifying statement describing the kind of cash investment or experience required. A telephone number in the ad will draw more responses than a post office box number, but may not permit the anonymity of a post office box.
Trade Sources:

o Trade sources can be a viable source of information on businesses for sale. Key people within an industry or in companies on the periphery of the industry, such as suppliers, often know when businesses come up for sale and may be aware of potential buyers. Every industry has a trade association and trade association publications can do a good job of communicating the sale of a business in their industry.
Intermediaries:

o Business opportunity intermediaries generally can be divided into two groups:

1) business brokers

2) merger and acquisition specialists

The differences between these two groups are subtle, but in general, business brokers primarily handle the smaller businesses, and merger and acquisition specialists handle the larger middle-market companies. Both groups usually ask for a contract with a 180 day period or a more exclusive right to sell the business.

Question: Are there other ways to find the right business?

Answer: Definitely. Another good way to increase your chances in locating the right business for you is to advertise your interest in buying. You’ll often read or notice that most advertising is undertaken by sellers, so it can be even more effective for you to advertise your desire to buy a business. Advertising will allow you to reach many prospects that other avenues cannot present.

Keep Business and Personal Lives Apart

When it comes to owning a business, newbies often make the mistake of combining their business and personal affairs. As a business owner, it’s healthy to separate yourself from your business and treat your business as a separate entity.

A little investment of energy early on can bring huge dividends later in the life of your business. For example, set up a business bank account, rather than mixing your business and personal expenses – your accountant and bookkeeper will both be thankful. You will also enjoy the benefits: less confusion and lower accounting and bookkeeping costs, particularly when your friendly neighbourhood tax auditor comes knocking.

New owners have a tendency to dovetail their personal and business lives, usually in an effort to save a few dollars. I have done this in the past and it only leads to difficulty. Any savings quickly evaporated when it came to sorting out the mess later.

Think of your new business as a separate entity, like having a baby, building a house, or hatching an egg.

Here are some ways to separate your business from your personal life.

  1. Separate your personal time from your business time.
  2. Coach your customers to contact you during your business hours.
  3. Train your friends to contact you during personal hours.
  4. Consider yourself to be an employee of your business and pay yourself a wage.
  5. Open a business bank account, pay business expenses from that account and pay your personal expenses with your wages.
  6. Establish separate telephone and fax numbers for the business.
  7. Create a separate Internet and email presence for the business.
  8. If you’re home-based, create a separate space for the business and if possible, have a separate entrance for customers.
  9. Even if your business is a proprietorship for which the tax authorities view you and your business as the same entity, set-up your business with its own bookkeeping and accounting systems.

There are some great payoffs for separating your personal and business affairs. You will:

  • Know your personal and business expenses
  • Be more effective at calculating costs and setting prices
  • Find it easier to deal with auditors
  • Lower your bookkeeping and accounting costs
  • Be better prepared if you decide to sell the business or bring in a partner
  • Have more peace of mind

With much to gain and little to lose, I urge you to consider your business to be a separate entity from yourself.

Real Estate Investing Classes – Learn More About Making Money!

So, you are considering getting into the real estate business! Educating yourself about properties and investments should be the first thing you have to go through. In the first place, you will be dealing with a substantial amount of money in this area; thus, property investing classes should be a valuable help to you.

You should be aware that you will need a lot of help when it comes to getting into property investments. There is a big difference between dealing with stocks and other financial products and dealing with properties. Investing has a lower risk factor.

To start your journey to the property investor’s world, consider taking online realty investment classes. Even successful realty investors are opting for online courses to gain more knowledge about real estate investing and learn other strategies that have been tried and tested by other investors. By simply learning from other people and knowing the mistakes they made, you can have an idea about how you will begin and avoid making the same mistakes that others did.

There will be different types of information that you can get and it will certainly help you. You should be aware that with all the articles, book and other resources of information, you can likely get many of those misguided ones. That is why taking something that can guide you step by step about how you will do things with regards to property investing can greatly help you.

Since there are many property investing classes are out there, you may find it difficult to figure out which one you should go for. If possible, attend property investment classes that will let you discover the secrets to making money from rental properties and selling real estate. Go for a system that will let you discover secrets in building wealth and keeping high rental profit.

It will be a little hard to try to find out which real estate investment classes will be effective. But, sometimes, finding one that works can make you feel really happy about the fact that you found it. Online reviews can help you find the right property investing program for you.

While some property investing classes are offered at low prices, there are many online courses out there too that are being offered for free. You can even get freebies straight in your inbox. A lot of experts are sharing their knowledge and ability, so take advantage of the classes they can give. In the end however, you get back what you put in, just like in everything in life.

I’ve prepared some powerful real estate and investing materials for you below, enjoy!