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Following trends is not just about hashtags and designer labels. Market research for entrepreneurs and business owners can make all of the difference when on the hunt for the next big purchase. Market research is conducted to get into the psyche of the consumer - what makes someone more or less inclined to purchase your product or service?
Once a business owner understands this, it can improve its inventory, how and where it advertises, and how to price certain items. When in the market for a new business, it is important to do the same kind of research.
Market research studies things like consumer behavior - more specifically: cultural, societal, and personal influences that affect decision-making and purchasing habits. As a potential new business owner, market research is vital because it can help you choose one industry over another or even between two competitive businesses.
As a business owner, market research allows you to:
Contact your local Transworld Business Advisors today to discuss the available market research and get one step closer to buying a business.
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Goodwill, much like it sounds, is a company’s positive reputation. More specifically, business goodwill is an accounting term that describes intangible assets. In essence, a company’s brand name, loyal customer base, good public reputation, and patents, for example. An intangible asset cannot be quantified like sales or property but is just as important in determining a business's value before a sale.
Overpaying versus Greater ValueAlthough intangible, goodwill can be calculated. As it serves as an important measure to determine an accurate selling price, it is also a useful tool to prevent overpaying during a business sale. The best and easiest way to calculate this value is by subtracting the fair market value of a business’s tangible assets from the total business value. That being said, “overpaying” depends on whom you ask. Someone with experience both buying and selling a business can argue for the unmistakable value of goodwill.
Goodwill may be listed on a balance sheet if the business owner purchased the business and a value was allocated to goodwill. It is possible to purchase a business at a higher price than the value of its assets. In many cases, goodwill makes a business more sought after as it can translate to greater sales as customer loyalty cannot be quantified but can determine if a business will be successful even after ownership has transferred.
What assets are considered goodwill?
At the same time, if you can do that but are unsure of how to market your goodwill during listing, Transworld brokers can help with that too! Our brokers will play a vital role in getting your business sold - or helping you buy the right one!
Contact your local Transworld Business Advisors today to schedule your first consultation! Do not let the concept of something intangible keep you from making that sale or purchase. With our help, you can be one step closer to that dream.
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Stretching to Stay Healthy
Anyone who has played sports or taken a gym class in high school remembers stretching to warm up for an activity. As we have grown older, many of us have stopped stretching for a variety of reasons. While we may not be playing softball or kickball on a daily basis, stretching is still very important. Stretching promotes a wide variety of benefits that can increase your range of motion and promote healing. Whether you work out regularly or live a more sedentary lifestyle, stretching is something that should be done routinely.
There are two main types of stretching, Static and Dynamic. There is no wrong choice in what type of stretching you choose. Picking Static or Dynamic Stretching based on your lifestyle can bring additional benefits. When deciding what type of stretching is best for you, think of the outcome you are trying to achieve. If one particular area seems tight, Static Stretching is the best way to stretch individual muscles. Static Stretching is the most common type of stretching. It is when you stretch and hold for 30 seconds while standing or sitting in one position. If you are looking for a stretch that targets a variety of different muscle groups, Dynamic Stretching is the best way to do so. Dynamic Stretching is when you stretch while moving, i.e. running, high knees, or lunges.
One of the benefits of stretching is that it can reverse the signs of aging. It is no secret that as we get older we get a little stiffer. By regularly stretching you can increase flexibility and range of motion. Stretching regularly may also help alleviate back pain. Back pain can be caused by tight muscles or poor posture. By regularly keeping those muscles loose, back pain will not only go away, but it can also be prevented from coming back.
While stretching can help physical pain, it is also mentally therapeutic. Muscles can become tense as a response to increased stress. The bodies reaction to stress can cause pain and even headaches. Stretching alleviates the stress that can become built up in your muscles. When you stretch, focus on yourself and ignore outside distractions. While it isn’t a 60-minute massage, stretching promotes a calm mind and can be done in your home.
If you want to know more about how stretching can improve your overall health and wellness, speak with one of our licensed Massage Therapists today.
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What Is Your Business Worth?
In order to determine the worth of a business, there are multiple factors to consider. It goes beyond how much money is made on an annual basis; in fact, all aspects of its past, present, and future are considered. It can seem daunting to try to calculate this on your own. For this reason, a proper business valuation must be conducted. This is the first step you will need to take when working toward selling your business.
The initial step for a business valuation is considering future performance. This may sound strange, but the truth is, a business’s value is dependent on projection and not past performance. Even if a business has done well in the past, a potential buyer will want to be confident that it will continue to do well in the future. The current status of the company in the market and what a new buyer can do with it can greatly affect how much a business is worth.
The next very important factor is earnings and revenue. Although revenue is important, a business with a greater earnings is considered more valuable. Buyers want a return on investment, therefore earnings rule. However to compare businesses, these earnings must be recasted to reflect the true earnings capability of the business.
Similarly, another important factor is the types of assets owned by the business (i.e., industry-specific machinery or equipment, vehicles, etc.). The type of assets affects the advanced rates of the lender and the depreciation life of the assets, which in turn impacts the value of the business.
Transworld Business Advisors offers free business valuation consultations (and a free online 10 minute survey); contact your local Transworld office to schedule an appointment so that determining your business’s worth is stress and anxiety free. A skilled Transworld advisor can help you review your financials in order discuss valuation and guide you through the steps of preparing the business sale. Our experienced brokers will take the time to get to know your business and help you determine your business’s value so that you can make an informed decision to sell.
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!