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June 2020
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As the saying goes, “never judge a book by its cover.” The same can be said about a business. There are many factors to consider in order to determine the value of a business. It does not merely come down to numbers in a financial statement. If you are considering selling your business sometime in the future, there are a few things you can do to maximize the value of your business.
1. Product or Service Positioning Your product or service positioning is where you can set your business apart from competitors. A position in the market is something that goes far beyond monetary value. A prospective buyer will be interested to know that your business is the one to beat - the one with an edge above its competitors. In order to reach this positioning, you must do your market research and establish your brand as the one all customers can depend on. That customer loyalty will help both your position and your bottom line. 2. Profitability and Revenue StreamsA successful business has not only determined how to increase profitability but has developed a revenue stream that cannot be easily tampered with. With or without your management, this stream is guaranteed to succeed, making any potential buyers comfortable with purchasing and taking over where you have left off. 3. Document Efficient ProcessesOnce you have determined effective profitability and management, you should write it down. This business plan is one that can be handed off to a new business owner once you have decided to retire and/or sell. An effective and documented process will make your business that much more valuable to a prospective buyer who wants to not only purchase your business as it currently stands but wants to continue to grow it and make a profit. 4. Trained StaffA business is only as good as its employees. Investing time and money in hiring and training your employees will translate to better daily management and overall greater profitability. Customers want to come back to stores and businesses with great products and excellent service. A prospective buyer will be interested in acquiring well-trained staff who have a sense of pride in their job. 5. Consult with a Transworld Business BrokerThe professionals at Transworld Business Advisors are equipped in both the selling and buying processes for businesses of every size and in any industry. The best, and easiest, way to maximize the value of your business is to consult with a personal business broker who knows the ins and outs of your business. It is their job and priority to help you get on the right track. With a network of vetted buyers, they have the resources and support you need when you are ready to sell. When you’ve reached the point where you are considering selling your business, you are also likely thinking about the value of your business and what you can do to boost it. The experienced business advisors at Transworld are ready to guide you through the sale process and that includes determining the value of your business and setting an asking price. We also offer a FREE Business Valuation Survey! Just follow this link: Business Valuation Spend just 10 minutes to complete this survey, and you will get a business valuation, conducted by a knowledgeable business broker, sent to your email within 2 business days! https://www.rootenergyadvisors.org/whats-my-business-worth.html
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The Benefits of a Couple’s Massage3/16/2019 By now, most people understand the mental and physical benefits of a massage. But, what are the positive effects it can have on a relationship?
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Need to advertise that your business is for sale? Even the most successful business owners often lack the experience and time to advertise that their business is for sale while running day-to-day business operations. Fortunately, working with a business broker can help you target and reach potential buyers for your firm while keeping the potential sale of your company confidential. Additionally, when you work with a business broker, you obtain the best price, get a proper market valuation of your business and maintain focus on optimizing your business for sale.
PreparationPart of advertising your business for sale is ensuring that the business is ready to go on the market. Before advertising your business, your business broker will work with you to make sure that your business is prepared for the marketplace. Preparation involves getting your business's financials, tax returns and other documents such as leases and contracts in good order and ready for review by potential buyers. Additionally, a business broker will help you understand the potential market value your business, ensuring you get the best price and terms for your business at the time of sale. AdvertisingBusiness brokers have the budget, resources, buyer audience and skills to advertise your business for sale in ways that you cannot do alone. Most brokers offer a database of listings where potential buyers can perform searches and find information about your business. In addition, most brokers have a collection of buyers to contact, and they are able to reach out to new potential buyers through proven marketing strategies.A business broker's expertise and experience means that they can professionally advertise your business for sale according to the specific nuances of your industry and the local market. Brokers understand the values of buyers in your industry and market, allowing them to highlight the best aspects of your business for sale in order to generate buyer interest. With the right presentation and packaging, buyers will become interested in your business to the point of making a formal offer. Keeping the Sale ConfidentialAs you may know, keeping your sale confidential from employees, customers, vendors and potential buyers is critical when advertising your business for sale. Good business brokers take this seriously and will emphasize confidentiality from initial advertising through every other step of the selling process.At the outset, a business broker will advertise your business for sale using a ""blind profile,"" a listing or document that presents accurate and appealing information about the business without revealing its identity. Brokers know exactly how much information to include in the listing in order to generate the interest of buyers while keeping your personal and business identity confidential.As buyers begin to respond to your business's advertising, brokers will further ensure confidentiality by qualifying buyers and presenting them with a Confidentiality Agreement to sign before revealing more information about your business. Working with a broker also means you have an offsite space to meet with potential buyers. Finding the Right BuyerBusiness owners who want to advertise their business for sale want to get in touch with the perfect buyer. For many, this means getting the best price and having a potential buyer with the right purchasing capabilities. Depending on your motivations, goals and interests, however, the right buyer might also be one who can continue the company culture and legacy. Since a broker has access to thousands of potential buyers in your area, they can spend time with you assessing buyer's skills, interests, financials and abilities.Working with an experienced business broker, like Transworld Business Advisor, provides you with the most effective tools and expertise to advertise your business for sale. Many of Transworld's brokers have experience as business owners, and all have experience in advertising businesses for sale in your specific industry. In addition to our brokers' drive and sophistication, Transworld spends more money on advertising than anyone in our industry to find you the right buyer. If you are prepared to sell your company, Transworld is ready to sell it for you. We also offer a FREE Business Valuation Survey! Just follow this link: Business Valuation Spend just 10 minutes to complete this survey, and you will get a business valuation, conducted by a knowledgeable business broker, sent to your email within 2 business days! https://www.rootenergyadvisors.org/whats-my-business-worth.html
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Keeping Your Heart Healthy!3/16/2019 High Cholesterol and blood pressure, inactivity, and stress: these are just some of the risk factors leading to an unhealthy heart. How do you manage the risks contributing to heart disease? Physical activity is one way to help minimize the risk, but do you know regular massage therapy has been proven to reduce your risk of high blood pressure and heart disease? The Benefits Program Membership at LaVida Massage is designed to give you the opportunity to take care of your heart, among other things, conveniently and affordably.
One of the major issues associated with high blood pressure and other heart related issues is that they have very few visible symptoms. In most cases, individuals learn they have cardiovascular disease after it has already done damage, such as a heart attack or stroke. Men and women are equally likely to be affected by high blood pressure and few know age is not a major contributing factor. Therapeutic Massage can lower both systolic and diastolic blood pressure, and our professionally trained and Certified Massage Therapists at LaVida Massage can assist with relieving tension that may cause damage. Regular massage can also contribute to increased circulation in the body. A major part of keeping your heart and other muscles healthy is maintaining constant and unhindered circulation of blood. Improved blood circulation is central to the health of all muscles in the human body, especially the heart, and is vital for the repair of muscles and distribution of oxygen-rich blood. When a trained massage therapist manipulates the body, the movements directly remove old and stored blood, as well as toxins that have built up- drawing new blood to the area. Let the Certified Massage Therapists at LaVida Massage help you achieve your optimum wellness for a healthy heart. Stop by any of our LaVida Massage centers and see how we can help you!
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Are You Ready to Buy a Business?3/16/2019 Once you have made the important decision to take control of your financial future by buying a business, you are bound to have questions about the purchasing process. Although the process of buying a business can be a bit confusing, answering five key questions even before you start your "Buying a Business Checklist" can help you simplify some issues and make the best choices.
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Tips for Marathon Training and Recovery3/16/2019 As the winter starts to break, that means it is time for marathon season to start back up again! If you’ve never trained for a marathon before or maybe its been awhile since your last one, here are ten tips for both training and, the equally important, recovery.
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How to Buy the Right Business for You3/16/2019 Buying a business is without a doubt a multi-step process. However, the steps do not merely begin at the point of research for businesses for sale or making an offer, but rather, in deciding what kind of business is right for you. There are a number of personal factors to consider when coming to this decision; keep in mind these five factors when picking the right business for you to buy.
LifestyleThe first thing to ask yourself is, How much time do I want to focus on building the business? This is relevant because you can choose to start your business from scratch - building it from the ground up or you can choose to purchase a franchise. There are definite advantages to both, but the right one for you lies in how much creativity and flexibility you would like to have versus how much you would like to have already established for you, i.e., customer base, marketing methods, etc. BudgetBuilding a business, whether it is from scratch or not, requires certain investments. The first step is to establish a budget from within your means in order to determine the type of business you can afford. Once you have done this, you can have a meeting with your business broker to narrow down your options and pursue the right business for you. This budget can be for either seed money to begin a business or for the price of an existing one. LocationLocation, location, location! Managing a business in a different city or state is not only difficult, but almost impossible. Unless you have an existing team whom you trust to oversee a business for you in a new location, you should focus on purchasing a business in your neighborhood. Once you have determined the kind of business you are looking for, you can research the preferred area by demographics of potential customers. Make sure the type of business you’re interested in would be lucrative in your market. ExperienceIn some cases, location is not even a factor to consider because you may be able to run your business from anywhere using e-commerce. For example, do you have a hobby or personal interest that can be easily translated into a home-based business? From calligraphy services for wedding invitations to paintings and personalized jewelry crafting, is there a skill you have mastered that can turn into your next business endeavor? If so, this might just be the angle to pursue. With the help of a business advisor, you can file the necessary paperwork to begin operating as a business in your state. If you’re looking to buy an established business, your professional background and experience may influence your decision in terms of the type of business you choose to pursue. The closer your experience and background is match for the business you want to buy, the less risk and greater chance for success. IndustryLast, but certainly not least, industry trends are important to research and understand before determining if a business is right for you. Before purchasing a business, you need to establish the kind of customer base you are hoping to reach. Not only does the service or product you are selling matter, but so do the customers, where they live and how they are willing to spend their hard-earned money. A business broker can help you not only choose the industry you would like to pursue but also understand its market trends and how to be successful in it. All entrepreneurs reach a moment in their lives when the pursuit of a new business is strong. The decision of whether to begin a new one from scratch or purchase one can be a long-winded process, or made overnight, depending on what you find when you start looking. If you are at that point in your process where you would like to purchase a business but are unsure of how to find the right one for you, contact Transworld Business Advisors today for a free consultation! |