Better Business Information

The buying and selling of businesses is an involved subject. Simply stated, we are talking about connecting up buyers and sellers for the mutual benefit of both. The essential points of business brokering are 1. The number of communication lines (prospects) one has and can use to connect up buyers and sellers; 2. Pricing a business correctly to sell, which is based on how skilled one is in establishing the actual value of a business, and 3. The ability to keep the parties negotiating until a common ground can be found.

Why Use a Broker?

It has been said in the legal profession, “an attorney that represents himself has a fool for a client.” After years of being a broker I can see why that is true. When representing myself in any negotiation I find myself at a great disadvantage. Years ago when I had a business partner, he would negotiate a deal, telling the other side that the terms must be confirmed with his partner, me. When he told me about the deal and the terms, I had a clear head and time to think about the deal. More than 50% of the time, I would request changes, all of which I got. After my partner died, I had to negotiate my own deals. Many times, I felt I had slipped up and not negotiated what I should of. Also, as an agent with limited authority, I could suggest things to the other side without committing myself. This was worth a lot. A suggestion that “My client might agree to this, if you would offer him …” has made many a negotiation go smoothly, with two happy clients in the end. You can’t say “I’ll do A if you will do B.” From that point on, they know you will do A and they work on the other points. Yes it is true. “A man that negotiates his own deals has a fool for a negotiator.”

Another less important reason for having a broker, if you are a seller, is time. A broker knows how to spot a real buyer from a looker. A seller will come visit your business, snoop around and pump the seller for all kinds of valuable information, and waste the seller’s time. Phone calls alone with buyers can take hours and not go anywhere.

There are other reasons where a broker is a big help. Being in business for over 30 years, Kismet has an extensive database of both buyers and sellers. This database is always being improved and extended. We have connections in just about every industry sector and as such are in a very unique position to arrange to buy or sell a business for you. The President of the company has been a negotiator for 30 years and has successfully kept buyers and sellers together in thousands of deals. We are also very knowledgeable in determining the value of any business quite rapidly, and at no charge to the parties.

So, if you are interested in buying or selling a manufacturing business, service business, paint & body shop, fast food restaurant or any other type of business, we can help you. Contact us with your business needs and we will go that extra mile to ensure you get the help you need.

Finding a Listing Broker to Sell Your Business

What makes Kismet Business Brokers different from every other Business Broker in town? It is the way we advertise our listings. Let me explain

Kismet has developed a marketing strategy that has been applauded by other brokers and incredible. If took 5 years of research and testing to get it right. Other brokers have not, up until now been willing to take the time and money to institute this system.

Kismet places its list of businesses it has available for sale, on web sites developed for marketing businesses. Prospects for businesses do not normally come to kismet’s web site to find a business; they go where all businesses are being marketed. Kismet has search out and recognized the best sites for exposing a business to prospective buyers.

There are many printed publications that list businesses for sale. Most of them are designed for big businesses. They charge both the seller and any prospective buyer, to have access to their publications. Many run as much as $300.00 just to look at what is for sale. Kismet has searched out and subscribed to publications that have the track record of bringing prospective buyers to their publication to see businesses that are for sale.

If the business we are selling is the type of business that a buyer would consider looking in the “businesses for sale” section of the local or major newspaper of the area, then Kismet will put ads in the paper. The newspaper is not the place to advertise that it was, even as recent as 3 years ago. The Web has cut into their business substantially.

Making Contact with Prospective Buyers

Normally when a prospect sees a business being marketed, that appears to be of interest to him or her, he will contact the seller’s broker or the seller directly by only one of two ways. They are 1. Make a call to the contact number, or 2. Send an e-mail inquiry.

Both have plus points and minus points. Lets take them one at a time.

Before caller ID’s were invented anyone could inquire about a business listing, or a real estate listing, and could pump a seller or agent for information, without even giving his name or number. He could even lie about the name and/or the phone number. I have had competitors call because they are very curious as to who is for sale. A casual buyers can ask questions about a business until the agent or seller, informs the prospect that a non-disclosure is required and they need to come in to the office or sign a confidentiality release. This sometimes stops the questions and the prospect hangs up, because he doesn’t want to be pursued by the agent or seller, until he the buyer is ready. Even with caller ID, the prospect can block the caller ID. This is not a desirable position to be in as an agent.

If a prospect sends an e-mail inquiry, quite often they will only give you their e-mail address to respond to. You still can’t call them, if you wish, but at least you have a way to re-contact a prospect. Buyers are interesting people. They have many motivations for calling on businesses for sell. They may be on a fishing exposition and wish to get maximum information without a sellers business without letting the seller know who is asking the questions, or why the prospect is interested.

People looking for information, besides being a legitimate prospect, may also be 1. A competitor looking to find out who wants to sell their business. 2. A competitor looking to find out the strength’s of the competitor and then steals trade secrets, and successful marketing ideas. 3. A competitor looking to get seller’s client’s names so they can try to steal accounts, and 4. A competitor is wanting to compare the seller’s financial reports to their own, and 5. People who do not want to buy a business but are going to enter the field and want an education on the profitability of this type of business. They want training and an education for free.

Kismet’s system eliminates the buyer being in control and puts us the seller’s agents in the drivers seat. When you call Kismet’s 800-phone number on its advertisements you are not calling our office, but rather a high tech message center. Each listing has a box number. Each box number has a recorded message about a specific business, in order to create interest, before the prospect even has to talk to a person. Then if the prospect is really interested he will then be put through to an agent.

If you wonder what difference it makes if they call Kismet’s office number or if they call the message center, I will explain. Caller ID, which most people have, can block an agent from getting the callers phone number. Our system is located out of state and captures 100% of all callers phone numbers and which ad they were calling on. Blocked calls do not work against our system. Even if they listen to our recorded message and hang up, we know who called. If they hang up while talking to an agent, we know whom they are.

When this system was first put in, we discovered a frightening fact. One third of all the collars never tried to talk to a person, or leave a message. What this told us was that all other agents were never even aware of 1/3 of the people that responded to the ad.

I found people would call on an ad, if a machine answered they hung up and never called again. If a receptionist answered they sometimes hung up before the agent could get on the line. Sometimes they would ask a few questions of the agent, not like one answer and just hang up on the agent, leaving him no way to re-contact. Another examples that was found; prospect called on an ad, got an incoming call on another line, would of course hang up on our call and take there incoming call. But, many times never bothering to call us back. I received a call from a very wealthy individual on Christmas Eve. He had just been notified that he had won a major contract and needed to find an operating business to produce the product. He saw our ad and picked up the phone and called. I missed the call and he hung up leaving no message. When I discovered the call 30 min later I called him, and spent 6 months looking for the perfect fit for him. He told me that he would of never called back, and only because he had that letter in his hand and found our ad did he call in the first place. The urgency had gone away by 5 PM that night, and he was leaving for Europe in two days and was gone for 2 months. Because I called him back instantly, I got a shot at showing him my business that was listed.

Finally, Kismet has developed its own list of buyer prospects that we have had at least one phone conversations with. We keep a record of what type of business they want, how much cash do they have available and how profitable does the business need to be. When we get a new listing, we run it through the database and find who is a fit. This database is never shared with anyone outside the company. Many a prospective buyer is still looking 2 years after we originally talked with him.

Business Brokers are like husbands and wives. If you have a good one, your life is blissful and happy and it is the best thing that ever happened to you in your life. If you make a mistake, it is the worst thing that could ever happened to you and would make the story of “Dante’s Inferno” seem like a picnic in comparison.

If you would like to get divorced from your business, marry the best broker you can find and life a blissful life

Small business start up costs can prove to be frustrating and stressful for a beginner business owner. Several entrepreneurs are intimidated by small business start up costs and choose to avoid even trying their knowledge in a small business for fear of not achieving success. Because starting a small business involves many expenses, they often think that having such a business will just lead them to failure. Fortunately, there are various ways to finance start up cost for a business; the ones that can help you some of the mounting business costs.

A business plan is an important catalyst of any successful business. In the absence of business plan, you can not easily get an access to business startup loans offered by banks and investors. Letting them know about your business plan can give them confidence. If you have professional business plan, you are providing a blueprint for successful business because you are making a change for your own business to be showcased to potential business startup funding providers. However, in doing this, you must strive to design a business plan that is really convincing and that pictures your abilities to manage such business reflected in your plan.

A business plan, for the purpose of acquiring a loan for business start up costs, has numbers of components. The first few pages showcases the Executive Summary and the Table of Contents. This is followed by the company descriptions- one of the most essential portion of business plans because this explains the short history, the company backbone, as well as the future plans, to the potential investors. The company description sections also mirrors the plan for business possible expansion. In other words, in this section is where the loan providers are most interested to know.

In the company description, you will need to steer clear of discussing that your business is a startup business. Startup businesses are categorized risky investments by most investors. Instead, convey what you have poured to the industry that you are presently in or plan on entering. You can also discuss the things you did that made others become successful. Another is, you shall discuss the growth of your business in the recent months or years and your forecast growth. You have to be sure that during your business plan presentation, you must be in full enthusiasm and passion for your new business venture and so you will be able to acquire a loan for your business start up costs.

Marketing analysis, in a well-written business plan, must be included. This explains your feasibility/ demographic study regarding your potential clients- this can help to convince your potential investors for your start up costs for a business . This portion of your business plan also tells your potential investors on how you are going to promote your business to clients in your target market. This also must show how intense your marketing research to ensure that your product would hit a great demand.

In order to acquire a loan for your small business start up costs , comprehensive financial plan must also be included in your business plan.

Numbers of new and small businesses struggle with the enormous quantity of small business start up costs incurred in order to materialize their business plan. Many entrepreneurs design a professional business plan to help them offer potential investors with their roadmap that shall poise them for success in their new venture.

#1: Mastermind Power

One of the secret strengths of Maui Millionaires is the power of the mastermind. A mastermind group is a group of two or more people who come together to work on a common goal in the spirit of focused harmony and trust, where all members benefit. The skill of masterminding is so essential that we devoted an entire section of our last book, The Maui Millionaires, to it.

Level Three business owners have learned that they don’t have all the best answers or ideas. But they have cultivated a huge advantage in the marketplace — multiple mastermind partners in various areas that they can turn to for ideas, input, accountability, and support.

We recommend five mastermind groups to maximize the growth for your company. They are:

Within your company. This is your inside team. The mastermind principle is how you unify, focus, engage, and unleash your team to accomplish the work of your business. For a small company, this may include one group of all team members. For a large company, this may entail multiple groups in various areas of the business, each trained in how to use the mastermind principle to get great results.

With key industry players. Form a mastermind group with people outside your company who are in your industry. This could include your vendors, companies that provide complementary services or products, or perhaps even competitors. Just think of the range of ideas and potential joint ventures that you could get from a mastermind group like this!

Outside board of advisors. Successful business owners know they need input from quality business people outside of their industry and outside of their immediate financial world. Consider forming a mastermind group with like-minded achievers to help each other succeed and live at your best.

Your family. Bring your family into your business life by masterminding with them on a regular basis (perhaps monthly or quarterly). Not only will they understand better the things you are experiencing in your business life, but by involving them in your business goals they will feel a part of what you do. This means they will support you and also, when needed, hold you accountable to not let your business grow out of proportion to the real values that you hold.

Your hired team. Finally, every entrepreneur needs a team of talented professionals (CPAs, attorneys, insurance agents, brokers, etc.) who can advise you as you build your business. Use the mastermind principle to more effectively get the input and guidance you need from your hired team.

Business Multiplier #2: Your Client Base

Your client base is probably the most valuable business asset that you have. Does your business treat your client base with honor, respect, and integrity? If the answer is yes, then over time your business will grow and thrive. If not, your business will never last over time.

Yet how do many businesses treat their most valuable asset? Like a database to be strip-mined for maximum value. The people and relationships you’ve built are more than just data. They are the heart and soul of your business.

One clue as to how a business views its clients is what it calls them. Are they called “customers” or “clients?” Do they end up in a database or a client base? While this may seem like a minor distinction, in our experience the mindset behind it makes a huge difference. A customer is someone to sell to; a client is someone to care for. Databases die, go stale, or move on. Client bases grow as communities thrive. If you remember to always put your client’s needs in front of yours, you’ll find you have the secret ingredient to build that client relationship.

Business Multiplier #3: Creativity

Creativity is that priceless ingredient that can solve any problem, turn around any business situation, and enhance any business. It’s one of the most underutilized business multipliers, yet the creativity you harness in your company literally can take your company to the top of your industry overnight.

Consider eBay® for a minute. It began in September 1995, and the very first item sold was a broken laser pointer for $14.83. That’s when founder Pierre Omidyar knew he was on to something. Over the past decade, by tapping into its teams’ and its clients’ creativity it has become one of the most powerful marketplaces in the world. In fact, it’s now the 17th largest world economy!

Creativity is what made that all happen. Creativity is what can exponentially grow your business. You don’t need more money, you don’t need the perfect marketplace, you need to unleash the creative genius held idle in your company. How best to free it up? Combine your creativity with the mastermind principle.

Business Multiplier #4: Character

Your character magnifies you. It helps you be your best self and it’s an essential ingredient in leading and influencing others. In essence, your character is that part inside you that keeps you moving toward your dreams even after the blush of the initial excitement has worn away.

There are four parts of your character we want to highlight. First is integrity — the way you honor your word. Since all business relationships are predicated on trust, you will never succeed on the scale you dream unless you are impeccable with your word. Also, to build lasting success means you live your life in accord with your most deeply held values and principles.

Second comes passion — the fuel that takes you to your dreams. We’ve already shared how we believe that every entrepreneur must find a meaningful way to connect his or her passion to their business in order to be wealthy. But understand that passion is also the fire inside you that warms your team, your vendors, and your clients to your business’ vision. And when it burns brightly it is a contagious source of exponential power.

Third comes courage — the steel that keeps you moving forward even when you are scared to death. And all entrepreneurs reach multiple points when they are scared to death. Yet it’s your job to learn to act in the presence of your fears.

Finally, there is faith — the gossamer quality that brings deep meaning into your business. Understand this: If your business exists only for the money you will never be wealthy. You may become rich but never wealthy. Enduring wealth comes from deep meaning and that takes faith. Faith is also the secret to enduring peace of mind. It’s the real foundation for business and life success. And, just as you do with courage, you also have a faith muscle that expands with exercise and use.

Business Multiplier #5:

Your Business Skills

There are certain skills that may generically be applied across any business, which when mastered, will create real value in your business. Here is a list of six skills that we think are essential to business success.

Leadership — Your ability to create a coherent business vision, inspire others to join you over time, and empower your business to willingly accept and embrace change.

Negotiation — Your ability to uncover complementary needs and reach mutually profitable agreements.

Time mastery — Your ability to maximize your time, to manage priorities and conflicting demands, and achieve a harmony in what you do (and choose not to do).

Salesmanship — Your ability to influence the way people perceive a given situation and to sell a dream, a product, a service, an opportunity, or a course of action.

Financial Fluency — Your ability to speak the five languages of financial fluency and move in the world of money, wealth, and business with grace and ease.

Emotional Fluency — Your ability to understand emotions, yours and other peoples’, and to be able to connect, engage, and, when needed, manage emotions.

So there you have the five business multipliers. Remember you can apply these universal leverage points in any business, in any industry, in any marketplace, in any country, to make your business succeed faster.

Copyright © 2008 David Finkel and Diane Kennedy. All rights reserved.

The above is an excerpt from the book The Maui Millionaires for Business

by David Finkel and Diane Kennedy, CPA

Published by John Wiley & Sons, Inc.; October 2007;$24.95US/$29.99CAN; 978-0-470-16495-2

Copyright © 2008 David Finkel and Diane Kennedy. All rights reserved.

David Finkel is one of the nation’s most respected wealth masters. A former Olympic-level athlete, he is a business and real estate multimillionaire and the co-creator of Maui Mastermind, the world’s most exclusive wealth retreat™. He is also the bestselling coauthor of The Maui Millionaires (with Diane Kennedy) and The Real Estate Fast Track, both from Wiley. His how-to financial articles have appeared in over 4,000 periodicals across the United States.

Diane Kennedy, CPA, is a top real estate author and investing expert. She is the founder and owner of DKA, a leading tax strategy and accounting firm. A past recipient of the prestigious Blue Chip Enterprise Award, she is also the author of Loopholes of the Rich and The Insider’s Guide to Real Estate Investing Loopholes, both from Wiley.

There are various things that come to mind when people start and grow their own business. They think of financing, location, and even legal fees associated with their dreams of becoming a successful entrepreneur. What they often overlook or don’t consider is the need for business insurance, especially small business insurance for many, when embarking on the challenges of a starting entrepreneur. Incorporating your needs for insurance is a vital component of the start-up process.

It’s never too early to think about small business insurance when starting your business. In fact, it probably wouldn’t hurt to include it as part of your business plan. Depending on the kind of business you’re in, and the types of risks and insurance obligations associated with what you do, the cost of insurance can be a vital component of how your start-up is financed.

General business liability insurance: Ever hear of it? If you haven’t, then it’s just another reason why incorporating small business insurance early into your business plans is vital.

General business liability insurance is one of the most available means of insuring a business from liability. Liability comes in all forms and a specific policy to cover you specific business is necessary.

In essence, since doing business involves some degree of contact with the public, you expose yourself to the possibility of causing injury or damage to a member of that public. It’s not like the kind of insurance you get for your home, where most of the people who come by are family or friends. The likelihood of getting sued because somebody slipped and fell on the driveway you forgot to shovel is low.

However, the likelihood of getting sued because someone who had some contact with your business feels you’re responsible for harm to them is much greater. That’s where general business liability insurance comes in and should form an integral part of your small business insurance plan.

Given the extent to which having insurance is a vital aspect of doing business, it just follows that incorporating it into your business plans as early as possible is just doing good business.

Every single business has its own unique needs when it comes to receiving adequate coverage, which is why planning for it early becomes wise. Small business insurance can cover anything from the risk of having a tornado hit your office to the chance that someone is going to sue you for the bad carburetor you installed in their minivan that caught on fire. Having a plan in place early on to cover you particular risks will allow you to adequately assess your risks and finance your business.

It’s a common mistake to assume that small business insurance is something you get after you’ve taken care of everything else. Although this is a better attitude than believing that business insurance is unnecessary or too costly. Purchasing business insurance late in the process can mean that you’ll encounter costs you simply did not expect or, maybe even worse, which you’ll have to settle for insurance that won’t adequately meet your needs.

Is it ever too late to get business insurance? Of course not. But the point to keep in mind is that it’s never too early to get business insurance either. Most successful businesses do one thing very well. As much as humanly possible, they try to manage the future. What does that mean? Well, it can mean a lot of things. Yet, generally speaking, it means that the smart business operator will always try to think two or three steps ahead instead of being complacent or looking back.

One of the most important aspects of looking forward for any business is the extent to which they manage risk. That’s where small business insurance and general business liability insurance come in. An entrepreneur who incorporates these into their assessment of risk as early on as possible is more likely to confront the future than one who doesn’t.

Since risk is extremely large when starting a business, it only makes sense that it be dealt with in all its forms almost from the beginning. The more that an entrepreneur does this early, the more they’re doing to confront the risks associated with all startups.

The beauty of small business insurance and general business liability insurance is that it takes one part of your assessment of risk and essentially out-sources it to someone else — your insurance provider. If only all risk could be dealt with in the same manner. It’s why getting an insurance provider you can trust early on is so important. An insurance provider who gets you covered with a plan just right for you, and does it early on, will help you deal with one of the many challenges facing a starting small business.

The need for small business insurance is vital for any new business. Without it, you’re exposing your business to risks that could ruin all your other hard work and planning. It’s why insurance should form an integral part of that planning and be incorporated in something as early as a business plan. Things like general business liability insurance are necessary for entrepreneurs who expose themselves to the risk of doing business with a public you might not even see or come into contact with. That’s why a good package early on is the only way of doing business smartly.

Buying a business opportunity is likely to be an extremely challenging task when arranging the business loan. This is largely due to the usual lack of commercial property as collateral for the business financing to buy a business opportunity. When buying a business that does not include commercial real estate, business borrowers need to realize that business loan options will be greatly reduced in comparison to a business purchase that can be financed with a commercial mortgage.

The suggestions and advice in this commentary build upon commercial loan covenants that are commonly provided by commercial lenders willing to offer commercial financing throughout much of the United States for buying a business opportunity. There will often be various private financing scenarios in which the seller might be willing to wholly finance a business opportunity acquisition, and we will not attempt to discuss those commercial loan possibilities in this commentary.

Length of Business Loan to Expect When Buying a Business Opportunity

When purchasing a business opportunity, commercial loan terms will almost always include a reduced amortization period in comparison to a commercial real estate loan. A business loan term of ten years is normal, and that length of loan is likely to be tied to a requirement that the commercial lease will not expire before the loan matures.

Likely Business Loan Interest Rates to Buy a Business Opportunity

The likely range to buy a business opportunity is 11 to 12 percent in the present commercial loan interest rate circumstances. This is a reasonable level for business opportunity borrowing since it is not unusual for a commercial real estate loan to be in the 10-11 percent area. Because of the lack of commercial property for lender collateral in a small business opportunity transaction, the cost of a business loan to acquire a business is routinely higher than the cost of a commercial property loan.

Business Loan Down Payment Requirements for Buying a Business Opportunity

Although there will be variations based on the type of business and several other factors, a common down payment requirement for a commercial loan to buy a small business opportunity is 20-25 percent. The presence of seller financing might lessen the down payment needed to acquire a small business opportunity.

Buying a Business Opportunity - Business Loan Refinancing Options

A related business loan issue to anticipate when buying a business is that refinancing the business opportunity loan terms will normally be even more difficult than the original business financing. There are currently some new business loan programs in the final stages of development that could dramatically improve future refinancing options. But until these new business financing options are finalized, it is important to arrange the best possible terms initially and not depend upon refinancing possibilities.

Avoiding Problem Lenders When Buying a Business Opportunity

The selection of a commercial lender might be the most important phase of the business financing process for buying a business. An equally important task is avoiding lenders that are unable to finalize a commercial loan for buying a business.

By avoiding such lenders, commercial borrowers are likely to avoid many other business financing problems frequently associated with buying a business opportunity. Avoiding problem lenders will be instrumental to the eventual success of both the business loan process and the long-term financial health of the business being acquired.

Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.

If you’re a family business owner, chances are you’re thinking about what you’ll do when your working days are over. As William Rothwell, a professor at Penn State University, noted in the foreword to Exit Right: A Guided Tour of Succession Planning for Families in Business Together “More than 40% of the people who run the closely held operations that comprise 80% of the North American economy will retire by 2007.”

Even if you currently view the idea as unlikely, you are wise to consider the possibility of selling your material handling company. The decision to sell is all too often a reactive one rather than a proactive one — the primary reasons are a serious health issue, owner burnout, the death of a principal, general industry decline or the loss of a major customer. Advance planning can ensure that you exit your business from a position of strength, not from weakness due to necessity.

1. The biggest mistake business owners make is waiting too long to sell. Have you ever heard, “I sold my business to early?” Compare that with the number of times you’ve heard somebody say, “I should have sold my business two years ago.” Unfortunately, waiting too long is probably the single biggest factor in reducing the proceeds from the sale of a privately held business. The erosion in business value typically is most pronounced in that last year before exiting.

The decision to sell is often times a reactive decision rather than a proactive decision. An individual who spends 20 years running their business and controlling their outcomes often behaves differently in the exit from his business. The primary reasons for selling are events such as a serious health issue, owner burnout, the death of a principal, general industry decline, or the loss of a major customer.

Exit your business from a position of strength, not from the necessity of weakness. Don’t let that next big deal delay your sale. You can reward yourself for that transaction you project to close with an intelligently written sale agreement containing contingent payments in the future if that event occurs.

2. Figure out what you will do with your time after you are no longer working sixty hours per week. We all create business plans both formally and informally. We all plan for vacations. We plan our parties. We need to plan for the most important financial event of our lives, the sale of our business.

Typically a privately held business represents greater than 80% of the owner’s net worth. Start out with your plans of how you want to enjoy the rewards of your labor. Where do you want to travel? What hobbies have you been meaning to start? What volunteer work have you meant to do? Where do you want to live? What job would you do if money were not in issue? You need to mentally establish an identity for yourself outside of your business.

3. Get your business ready to sell. Now that you are all excited about the fun things you’ll do once you exit your business, it’s now time to focus on the things that you can do to maximize the value of your business upon sale. This topic is enough content for an entire article, however, we will briefly touch upon a couple of important points.

First, engage a professional CPA firm to do your books. Buyers fear risk. Audited or reviewed financial statements from a reputable accounting firm reduced the perception of risk. Do not expect the buyer to give you credit for something that does not appear in your books. If you find that a large percentage of your business comes from a very few customers, embark on a program immediately to reduced customer concentration. Buyers fear that when the owner exits the major customers are at risk of leaving as well.

Start to delegate management activities immediately and identify successors internally. If you have no one that fits that description and you have enough time, seek out, hire and train that individual that would stay on for the transition and beyond. Buyers want to keep key people that can continue the momentum of the business.

Analyze and identify the growth opportunities that are available to your business. Get rid of that outdated inventory. The buyer will not pay you for it anyway and it just clutters up the place.

4. When you are wearing all the hats already, trying to sell your company yourself can hurt your business. A major mistake business owners make in exiting their business is to focus their time and attention on selling the business as opposed to running the business. This occurs in large publicly traded companies with deep management teams as well as in private companies where management is largely in the hands of a single individual.

Many large companies that are in the throws of being acquired are guilty of losing focus on the day-to-day operations. In case after case these businesses suffer a significant competitive downturn. If the acquisition does not materialize, their business has suffered significant erosion in value.

For a privately held business the impact is even more acute. There simply is not enough time for the owner to wear the many hats of operating his business while embarking on a full-time job of selling his business. The owner wants the impending sale to be totally confidential until the very last minute.

If the owner attempts to sell the business himself, by default he has identified that his business is for sale. Competitors would love to have this information. Bankers get nervous. Employees get nervous. Customers get nervous. Suppliers get nervous. The owner has inadvertently created risk, a potential drop in business and a corresponding drop in the sale price of his business.

5. To maximize your selling price, you must get multiple buyers interested in buying your material handling business. The “typical” business sale transaction for a privately held business begins with either an unsolicited approach by a competitor or with a decision on the part of the owner to exit. If a competitor initiates the process, he typically isn’t interested in over paying for your business. In fact, just the opposite is true. He is trying to buy your business at a discount.

Outside of yourself there is no one in a better position to understand the value of your business more than a major competitor. He will try to keep the sales process limited to a negotiation of one. In our mergers and acquisitions practice the owner often approaches us after an unsolicited offer. What we have found is generally that unsolicited buyer is not the ultimate purchaser, or if he is, the final purchase price is, on average 20% higher than the original offer.

If the owner decides to exit and initiates the process, it usually begins with a communication with a trusted advisor - accountant, lawyer, banker, or financial advisor. Let’s say that the owner is considering selling his business and he tells his banker. The well- meaning banker says, “One of my other customers is also in your industry. Why don’t I provide you an introduction?” If the introduction results in a negotiation of one, it is unlikely that you will get the highest and best the market has to offer.

You may have spent your life’s work building your material handling business to provide you the income, wealth creation, and legacy that you had planned and hoped for. You prepared and were competitive and tireless in your approach. You have one final act in your business. Make that your final business success. Exit on purpose and do it from a position of strength and receive the highest and best deal the market has to offer.

Surveys show that 94.7% of small business owners feel their only lending resources are local banks or personal credit cards. This common sense advice will help you avoid these common business loan mistakes, regardless of your personal credit history… and avoid pledging your personal property as collateral.

First of all, getting approved for a commercial loan is definitely easier than getting personal loans… regardless of your personal credit scores. Additionally, getting the right types of corporate credit is absolutely critical: if you want to protect your personal assets, minimize the risk of a personal lawsuit affecting your business, and to your ability to weather the economic changes that happen overnight.

All business owners must be much more proactive about developing relationships with the right types of lending institutions. You usually want to start your application process with out-of-state, national lenders… not your local or regional banking institutions. National lenders typically won’t require a personal guarantee or your social security number.

Follow this simple roadmap to obtain a small business startup loan, a business debt consolidation loan, a bad credit business loan, or a government business loan… although I strongly recommend that you find a commercial loan expert who can help you through the process of building a strong corporate credit rating.

Finding a competent business loan expert will give you a head start on your competition & also let you focus on running your day-to-day activities… instead of dealing with the hassles of establishing a strong business credit rating. An excellent business credit score can help your company’s image, overnight. And, finding a small business loan expert isn’t that difficult. You just need to know where to look.

Now… let’s get started… before you start applying for any business loans!

1. How is your business structured? Is it a sole proprietorship, C-corporation, S-Corporation, Limited-Liability Corporation (LLC), Partnership, or Trust?

2. How long has your business been recognized by your State & Local government?

3. Has your company ever had derogatory information reported against it to either of the two (2) most popular business credit reporting agencies, Dun & Bradstreet or Experian?

4. Are your commercial permits, licenses and registrations current?

5. Does your business have a physical address, or are you trying to use a U.S. Post Office Box instead?

6. Is your business telephone number recognized by directory assistance?

7. Are your incoming telephone calls professionally answered in your business name?

8. Have you established a business checking account?

9. Have you registered & asked for an Employer Identification Number (also known as an EIN) from the IRS?

If your answer to the first question was a sole proprietorship, partnership or trust; I urge you to re-establish your company as a corporation or LLC. I’m not going to provide you with legal advice, but many CPAs and attorneys highly recommend

LLCs (Limited Liability Corporations) as a way of protecting your personal assets & estate… in the event of any lawsuits being filed against your company.

As a sole proprietor, your personal assets are at direct risk of seizure or forfeiture when faced with most types of legal action. Additionally, if you are applying for business loans in a corporation’s name… most lending institutions will not require you to provide any personal guarantee!

A corporation can still face difficulties applying for business credit, if it has been in business less than two (2) years or had previous credit problems reported against it. Here are some ways to fix these problems.

- Purchasing a “shelf corporation” or “aged corporation” that’s been in good standing with your State government (for longer than 2 years) can drastically improve your chances for small business loan approval.

- You can attempt to repair your business credit rating by writing dispute letters to Experian or Dun & Bradstreet, which isn’t always possible.

- Some corporate credit experts will help you find, select & purchase an established “shelf” or “aged” corporation, some of which already have strong credit ratings established… saving you alot of hassles!

I cannot stress this enough… you MUST have a physical address (not a PO Box) if you want to establish a solid business credit rating. The same thing is said for telephone numbers & the way incoming phone calls are handled. Would you lend

money to a company that does not appear to have a physical address or documented telephone number?

And, don’t forget to always keep your commercial permits, licenses & registrations current… and always keep copies of these documents in case a potential lender asks for this information.

Business checking accounts are a must. Again, this proves stability to your potential lenders. Here are a couple of tips for you, in case you’ve had any checking accounts closed by a financial institution. Pay off the outstanding balance (if any) that’s being reported by the bank, or open a checking account at a bank or credit union that doesn’t use the ChexSystems credit reporting system. Most credit unions don’t use ChexSystems, and you can always find a list of banking institutions in your area that don’t use ChexSystems… by simply doing a search on Google, Yahoo or MSN.

Small business credit ratings are tracked using your business name, business address and employer identification number (EIN). You can apply for & receive an EIN at the IRS’s website (irs.gov). You can also call the IRS, but be prepared for long waits.

Then you’ll want to obtain a D-U-N-S number from Dun & Bradstreet, the largest business credit reporting agency. You can apply for this without any fees at Dun & Bradstreet’s website (dnb.com), and you’ll usually receive this number within

thirty (30) days. Do not apply for this number until you’ve prepared your self thoroughly, because any information you give to them… goes into your credit file… permanently.

After you’ve obtained your D-U-N-S number, you’re probably ready to start establishing some vendor credit. Vendor credit is where many business owners start establishing business credit ratings. Simply go to staples.com, officemax.com or officedepot.com to get started. Then, you’ll also need to fax your business telephone bill & the credit application to them… on your business letterhead (which you can create using your favorite word processing software if you don’t have expensive stationery). They usually don’t require any personal guarantees (if you’ve followed the outline above), and you’ll usually receive a starting credit line of $750.

This is critical & I repeat… critical! Always pay your invoices before the grace periods begin… especially on unsecured credit cards or vendor credit lines. Dun & Bradstreet will lower your credit score for every day a creditor reports your bill as unpaid while you’re within your grace period. Whereas, personal credit scores are not lowered unless you are 30+ days past your due date.

Dun & Bradstreet reports what’s known as a Paydex score (your corporate credit score), and a score of 80 is very good… with 100 being the highest score you can achieve. Your Paydex score is issued once you’ve established a known

vendor/credit relationship with at least five (5) creditors.

There are shortcuts that will help you get much more than $750 alot faster. When using a business credit expert, most small business owners (even startups) can be approved for vendor credit lines of $25,000-$50,000 and open credit lines of

$50,000, $250,000, $500,000 or more… in as little as 45-60 days… by using their knowledge of the application process & “shelf” corporations.

Now, it’s your choice. Are you going to go against the grain & try to establish business credit on your own (which could prove costly to your business health, growth & survival)? Or, will you choose to utilize a corporate credit expert… allowing you to remain focused on your daily business needs?

Most business owners make the mistake of trying to do this on their own… usually trying to find grants, investor “angel” money, or falling back onto the “personal credit card sword”. Don’t be a casualty like the rest. Learn more about how you can use the same tools that informed, educated millionaires have been using for decades.

Defining a Business Manager.

When an individual thinks of a Business Manager, their mind often leads to a man or woman that is in charge of a business. Often times, this case holds true, but with new technology other types of Business Managers are being used. Such a Business Manager is not a human, but in fact can be a computer program.

Prophet can ACT as a Business Manager.

Although there are many different computer programs that are available to ACT as a Business Manager, one of the most popular and effective forms of a Business Manager is the software program known as Prophet. Prophet is a Business Manager software program that is made available by Avidian, a computer company that specializes in customer relationship management, also known as CRM. CRM is highly important for many companies, as it is the relationship between a customer and a company that regulates the sales for a company. If there is a positive CRM relationship established, there is a high certainty that a client will be a repeat purchaser. Many companies give thanks to Prophet as their acting Business Manager, as the program can generate multiple sales for a company.

The multiple factors of Prophet as a Business Manager.

There are many factors that Prophet plays upon as a Business Manager. For example, Prophet can regulate a client’s contact database for all of its customers. This means that as an acting Business Manager, all of a company’s clientele can be regulated and organized into an electronic file. A company can keep electronic records of all of their clients, including a company name, physical address, telephone number, and an e-mail address for the contact individual at the company. A Business Manager can do the same things for a company, but it will take much more time to keep everything as organized as a computer program such as Prophet can. Prophet also acts as a wonderful organizer, keeping all of the business contact information in order, as well as easily and readily accessible.

Prophet can save money as an acting Business Manager.

Another reason why many companies are turning to computer programs for a Business Manager instead of working with a person within the company is due largely for costs. The price of Prophet’s Business Manager is quite affordable (starting cost is around $100.00), which makes for a wonderful investment for any company. It is hard to find a Business Manager system such as Prophet that is as affordable as it is. The competitors are much higher, and a lot less cost effective than Prophet. Prophet has proven that as a Business Manager, that the software can keep track of sales, hold notes on accounts for reference, provide graphs and charts of projected sales as well as sales past, and the most beneficial means of gaining additional profits. Prophet’s Business Manager is indeed geared towards multi-tasking, which is what many companies are looking for.

Prophet can ACT as a Business Manager for companies large and small.

Prophet is not only helpful for companies, but for individuals and major organizations as well. For an individual, Prophet Business Manager is great for a small business. This is often the choice for entrepreneurs that have a very small staff, usually under 10 people. Just as a major company can keep track of transactions and sales projections, a small business owner can as well. Sales lead management is filtered all throughout the Business Manager, which is one of the main reasons why there is such a high demand for Prophet software. Business owners are constantly looking for additional outlets for their company, and can find such business management with Prophet.

Large size companies can benefit from Prophet as a Business Manager, too.

For those that are dealing with a larger sized company, Prophet is a wonderful tool for Business Manager as well. This is what is known as the “professional edition” of the Business Manager end of Prophet. The Professional Edition of Prophet offers the same incentives for acting Business Manager as in the small company, but it is also available as a network. When Prophet software acts as a network for a Business Manager, it can be manipulated in a variety of ways. For instance, when Prophet is networked as a Business Manager, it can simultaneously share information with those that are connected to the system of information. That being said, those that are linked with the Business Manager network can generate sales and the likes with the program. Workers that are connected to the Prophet Business Manager network can also see where others in the company have left notes of relevance on an account. This is highly important; as a note may be a flag on an account, such as payments rendered, or accounts past due of payments.

Conglomerate companies can save a lot of money utilizing Prophet as a Business Manager.

For conglomerate companies, a Business Manager is a must. A Business Manager in a large company keeps track of sales, and is responsible for where there needs to be sales generated. Prophet acts as a Business Manager on many levels, and this aspect is no exception. Prophet can be seen as a Business Manager in large, corporate setting, as it can be a Business Manager on many folds. Prophet as a Business Manager in a corporate setting can lead to an ease in record keeping, while showing where there is need for improvement in other areas. As an acting Business Manager, Prophet can demonstrate all of the duties as set forth with other levels of sales. Furthermore, as the principal Business Manager, Prophet is created to hold a plethora of information, as well as keep it all organized. Prophet certainly does the job well with the Business Manager program for corporate organizations.

Palm Pilot can operate Prophet.

Another addition that is important to many Prophet Business Manager users is the fact that it can be displayed on a Palm Pilot. A Palm Pilot, or a personal hand held electronic organizer, is compatible with the Prophet software, and makes for a great mobile Business Manager device. There are many features and benefits that can be generated from using Palm Pilot as a Business Manager. For instance, a Palm Pilot that is doubled as a Business Manager can become the equivalent of a computer, as it shares Business Manager information like the regular Prophet program would on a computer. In essence, the Palm Pilot is a mobile version of Prophet’s Business Manager software.

An overall view of how Prophet is an essential tool acting as a Business Manager.

A Business Manager is indeed an essential tool for any company, but utilizing Prophet as a Business Manager is even more efficient. The information that is needed is easily accessible, and can be transferred time and again. As a Business Manager, Prophet can utilize its electronic resources to generate sales slips and projections. Prophet is not only a Business Manager of today, but also a Business Manager of the future.

About Avidian Technologies:

Avidian Technologies is a software company specializing in creating software solutions for users of Outlook and Exchange. Prophet, developed by Avidian Technologies on the .NET platform, is the leading contact management and sales CRM software built in Outlook. The company is headquartered in Redmond, Washington. For more information, please visit http://www.avidian.com or call 1-800-860-5534.

A complicated business finance process can occur when an investor previously familiar only with residential real estate begins investing in commercial real estate investment property and business opportunity situations. Before a borrower attempts to buy a business, it is important to develop a business loan and commercial mortgage strategy.

There are many key differences between financing for commercial property investing and residential real estate investments. Because more residential property investors are exploring commercial real estate and business finance opportunities, this business opportunity financing and business loan report is designed to help educate new commercial investors about key commercial mortgage and commercial loan issues.

Rather than specifically focusing on issues that differentiate business financing from residential financing (which we have thoroughly analyzed in separate reports), this report will offer a few key observations regarding business finance elements that are often overlooked in new business investment considerations. These factors include credit card processing, business cash advance options and working capital management.

Coordinating Credit Card Processing and Business Cash Advance Programs -

Many business investments will involve the use of credit card processing decisions. These business activities should be analyzed simultaneously with business cash advance programs for several reasons. If done properly, a business should reduce their costs and improve their cash flow.

Reducing Credit Card Processing Costs in Business Investing -

One of the biggest benefits of coordinating credit card processing with a business cash advance program is the real potential that overall costs can be reduced. Such an advantage is likely to be available in conjunction with the most progressive programs by linking a low cost credit card processor with the best merchant cash advance program. Many of the best credit card processors will not be available for businesses other than through a high-quality credit card financing arrangement.

Improve Cash Flow for Business Investments -

Credit card factoring strategies can produce a business cash advance up to several hundred thousand dollars. For most businesses, this level of financing is not routinely available via other business finance programs. The decision to choose credit card financing to secure a merchant cash advance is an increasingly practical business financing response to business lenders eliminating line of credit programs.

It is important to realize that there are certain key limitations and potential difficulties with business cash advance strategies. New business owners will occasionally eliminate using a merchant cash advance without adequately considering the overall benefits because they are confused by this business finance approach. Although credit card factoring is frequently considered to be a short-term commercial financing strategy, there are also effective longer-term variations which should not be overlooked.

Working Capital Management Strategies -

Obtaining a working capital loan is usually more effective when arranged in conjunction with buying a business. However many lenders do not adequately address this issue in the early business finance stages. Before completing a purchase offer to buy a business, all business loan issues should be discussed in order to fully understand overall commercial financing choices and limitations.

After acquiring a business, it is more likely that business or personal collateral will be a necessity in getting working capital financing. One major exception to this common collateral requirement will be the use of a business cash advance and credit card factoring as mentioned above.

Additional Key Investment Business Finance and Real Estate Mortgage Issues -

As previously noted, commercial mortgage and commercial loan requirements are very different from residential financing requirements in the United States. Additional business finance reports include a discussion of many other significant financing factors. Other reports address important subjects such as business opportunity loans, business appraisals, stated income business loan options and SBA loan programs.

Most of the additional articles will provide further detail about topics discussed in this report as well as offering business financing solutions for numerous other complex business loan situations. For example, some SBA loan processes can include working capital as part of the total initial financing. For those interested in learning more about both potential advantages and problems associated with coordinating credit card processing and business cash advance services, there are several additional resources (such as The Working Capital Journal) which will facilitate a better understanding of these complex business finance issues.

I often come across people who are not as happy as they would like to be, mostly because they are struggling to make ends meet, living paycheck to paycheck. They’re working like slaves (often in jobs they don’t like) and they’re in debt up to their eyeballs. In most cases unfortunately, there’s not much hope on the horizon that things will improve anytime soon.

I recognize them because I used to be like that. No longer though; I’m now part of the home based business revolution. What about you? Does that first paragraph describe your situation? Do you go to bed at night worrying about the bills? Do you dread getting into your car or walking to the bus stop in the morning because you hate the commute and the office where you’re going to spend the next eight hours of your life?

If you answered “yes” to any of those questions, you’re not alone. There are millions in your situation. Tens of millions of people in fact who, like you, want to make more money, have more free time, be more in control of their lives. In short, they want to change (maybe a better word would be “escape”) their current situation.

But how? What are the options? Win the lottery? Change job? Get a second (or third) job? Encourage the spouse (or the teenagers) to get a job? Downsize the car, the house, the vacation plan (if they have one)? Or start a business? No, not really. But what about starting a home based business? Work at home, no commute, no boss, no office politics, make lots of money and have free time to spend it! Sounds like a great plan, doesn’t it?

It actually IS a great plan! So why aren’t these people doing it? Because, as I find out when I talk with them, they subscribe to many of the crippling myths that surround business in general, and the home business industry in particular.

I’ve chosen the word “crippling” very carefully because to cripple means to disable, to impair, to weaken. And that’s precisely what those myths will do to you if you let them. They will disable your thinking mechanism, they will impair your judgment, and they will weaken your resolve to find a solution to your problem.

To help all those people—and you too if you’ve been pondering how to improve your situation—I’d like to take a look at four of those crippling myths and BUST them!

MYTH # 1: You need A LOT OF MONEY to start a business…

This is true IF you want to buy an existing business or start a traditional business (in most cases), specially a “brick and mortar” business. While doing research the other day, I saw a motel for sale for $600K and a drycleaner for $250K.

I owned a brick and mortar business once: an art gallery and framing shop, with 12 employees. I bought it in 1986—inventory and goodwill for $200,000. I had to borrow $20,000 from my parents for the down payment, then pay the ex-owners $30,000 a year for six years. That was hard on the cash flow, so hard in fact that I eventually lost that business.

A friend of mine is thinking about buying a fast food franchise for $300K. He told me he would be paying himself a living wage for four years, and then in year five he expected a profit of $50,000. For all the work and time and worry that goes into that, it doesn’t seem like a lot of money! So yes, for SOME types of business you need a lot of dough…

Even businesses on the Net can be rather expensive; one business opportunity states that the investment is $49,500! Ouch! And not that long ago, I invested in six online “stores”. With the support and the tutoring, the bill came to $20,000.

But at the other end of the spectrum, I’ve recently started a very lucrative home based business for under $2,000. And I know of MANY business opportunities you can get going for even less than that.

So you see, that myth is busted: you DO NOT need a lot of money to start a lucrative business. You just need to start with the right one—one that only requires a modest investment.

MYTH # 2: You need to WORK A LOT—at least 50 or 60 hours a week—to get a business off the ground and profitable.

Chances are good that, yes you will need to work a lot of hours for a “regular” type of business. That was the case for me with Yukon Gallery. Seven days a week, 10 to 12 hours a day. Working on the holidays. I remember one summer going 48 days without a day off.

But that’s not the case with most home based businesses. For example, I’ve invested just over 100 hours in my business last month (averaging 25 hours a week), for very, very good results!

Another myth busted! You can do VERY well with the right business working at home. You can even do it part-time to start!

MYTH # 3: A home based business is SMALL BUSINESS

When they hear the words “home based business”, many people think “cottage industry,” stuffing envelopes, gluing pinecones together to make decorations, or doing home parties to sell candles, lingerie or kitchenware.

I find that myth kind of funny…That’s because I personally know at least 50 people who are making BIG money from a home based business. I mean $20,000, $30,000, $40,000 and more a MONTH! They do that with Direct Sales opportunities, with Network Marketing opportunities, with MLM-type opportunities like you see on the Internet all the time.

For most people—because most people have a scarcity mentality, or a this-is-too-good-to-be-true mentality—those incomes sound ludicrous. Well, they’re not. Not in these types of business. Not if you pick the right income opportunity and you do it right.

The other reason for this myth being perpetuated is that most people either have a job or own a “regular” type of business—like a “brick and mortar” retail outlet—or they provide services where they trade time for money. And with a job or a “regular” type of “small” business, those numbers are close to impossible to attain.

But the right home based business opportunity in the right hands with the right system, training and support has great potential for being BIG business.

MYTH # 4: Network marketing—and most home based businesses that use that model—are ILLEGAL PYRAMID SCHEMES

That’s a biggie; I’d say that probably 75% of the people who call me regarding my home based business bring up that myth, and I suspect the other 25% are thinking about it even if they don’t verbalize it…

If I had an hour to talk with you, I could tell you about ALL the legal battles won by the home based business industry over the years. I’d mention the fact that there are currently over 50 network marketing companies or companies using that model on the stock exchange. I’d share with you the fact that Robert Kiyosaki (bestselling author of “Rich Dad, Poor Dad”), Stephen Covey (bestselling author of “The 7 Habits of Highly Effective People”) and Warren Buffet are either promoting, working with, or have purchased that type of business. And these people are not dunces. They would NEVER associate themselves with something that is illegal. What do you think?

A more important question would be, what will you DO now that we’ve busted those four crippling myths? Here are my five suggestions for you:

1. Right now, this second, adopt a new way of thinking about home based business opportunities.

2. Make a list of ALL the things in your life you’d like to get rid of if you were making $10,000 to $15,000 a month working from home.

3. Make a list of ALL the new things you’d like to do and have in your life when you start making that kind of money. The reason for those lists is to really motivate you to do the next two steps.

4. Do your research, starting with going to the website in the resource box below and reading all the articles you will find there about how to choose a good home based business opportunity.

5. When you’ve found some income opportunities that appeal to you, do your due diligence, including calling the sponsor and other people doing that business before signing on the dotted line.

In conclusion, the four myths I just busted are really no reasons at all—more like excuses—for not starting and building a legitimate home based business that over time will allow you to earn a solid residual income from the comfort of your home, and finally live the lifestyle that you and your loved ones desire and deserve. Go do it, NOW!

Daniel “BizzBooster” St-Jean

P.S. If you know some friends “in need” who could benefit from reading this article, why not email it to them now? They’ll appreciate it. Wouldn’t you?