Archive for the ‘Articles’ category

Business Brokers Can Play a Key Role in Selling a Business

April 30th, 2010



Any business has a lot of sentiments attached to it. The decision to sell a business could be due to any unavoidable circumstances on one hand, while on the other hand it could be a willing decision of the owner just to take a break from all the hectic work he might have been involved in the past years.

Whatever may be the case, any firm owner cherishes his business and would want it to go to the right hands after it is sold and also expects to get the right value of his business. The first step to sell a business is to determine the right worth of the business.

A lot of people are not aware of the correct value their business holds in the market and hence find them completely lost in the process of searching for the right buyer.

To determine the true worth of your company, consulting a business broker would be a good option. If you own a business in say, Hamilton, then make sure that you find a business broker who can offer you good service in that region. Next you need to build up the structure and terms of your sales agreement. This agreement should involved all important aspects of the deal including, the impact of taxes, sash required at closing, and human resource continuity.

Confidentiality should be kept in mind when you try to market your business to your buyers. Your other competitors in the region should not come to know of your plans till you have completely sold the business. Develop a sound strategy with the help of your broker.

One of the most essential things, that most sellers tend to forget is to continue running the business with the same enthusiasm, before it is sold. It would be better to hand over a profitable business to someone; moreover you will be able to secure a very high price for a business which is running in profit. Be transparent, and so the bookkeeping sincerely.

Next in the process is the paperwork. The buyer needs to provide you with the letter of intent which should include the price, form of payment and contingencies. It would be a tedious task to go through all the offers and choose the right one. You should probably rely on a business broker; since they are more skilled and experienced in this field they can steer you through all the document work. But don’t it in the backseat, you need to be involved as well, because it is you who has to finalize the agreement.

By: Michael Torner

Top Five Business Predictions For 2010

April 29th, 2010



One thing I hate about this time of year are all the articles giving a roundup of the events of the year and making predictions for the year ahead. I don’t need a roundup. I was there. As for predictions, the next person who tells me the economy is likely to improve and there will be a growth in social networking is likely to get the a rude response. It’s not a prediction to state the obvious. The way the economy has been, up actually seems more likely than down. That’s the way most things go when they’ve hit the bottom. Having said that, here is my (small) set of predictions for 2010.

1. The number of small businesses will grow quickly. As people are laid off from their jobs and can’t find another they will begin to work for themselves. The ability to learn new skills quickly will become more important than knowledge in any one area.

2. Companies who sell goods and services to this market will do well. Companies small enough to change and target this market will also do well.

3. New tools will be built around the popular social networks, such as twitter, which will allow users to track and measure the effectiveness of their ‘tweets’. The social networking platforms will become even more integrated and ease of use will be prized. Twitter will be more successful than Facebook.

4. Networking groups, on and offline, will prosper as the new small business owners look to other small business owners for moral as well as business support.

5. E-commerce websites will continue to grow, but standard three and five page corporate websites will be replaced with blogs, (which will also be added to the corporate web sites) making the conversation two way. Customers will get to know the personalities of the companies they buy from through their blogs, those with unattractive personalities beware! Companies will measure their success by the degree to which their customers are willing to interact with them.

People say that in business, as in life, the internet has changed everything, but change is normal and healthy. What has changed so drastically is the rate at which things change. I make a point of always looking forward to the future, but I can remember a time when my grandmother, then the age I am now, was considered too old to learn how to use a new kitchen appliance. We can no longer afford to say ‘Enough! I’m done’. There is so much that is new to learn. The future is a challenge to us all, thankfully it’s challenge that keeps us young.

By: Lesley Charalambides

Incorporating a New Business in Florida

April 29th, 2010



When you are starting a new business in Florida, you can set it up under sole proprietorship, a cooperative, or as a corporation. If you go with incorporating, it is the process of forming a new corporation, which can be set up as a business, a non-profit organization, or a new government of a new city or town.

Setting up your business as a corporation in Florida reaps several legal benefits.

A corporation is separate from your personal assets, meaning in the event of a lawsuit or filing for bankruptcy, creditors cannot go after you and claim your personal assets as compensation for the debt of your corporation. Your stockholders, directors, and officers are also protected from being held liable for the debts and obligations of the corporation. The maximum amount you or the other investors can lose is the amount you invested in the company and nothing more.

The corporation is also protected from the investor?s losses as well. In the event that a stockholder incurs debt or goes bankrupt, corporate properties cannot be seized as compensation. Only his shares can be used as compensation.

In a corporation, your shares of ownership can be transferred to others either as a whole or partially. It is also easier for you to set up a retirement fund under a corporation.

Under a corporation, your tax rate is lower than it would be for you as an individual, and you are legally allowed to own shares in other companies and receive corporate dividends of up to 80% tax-free.

If your corporation is in a financial bind, it is easier for you to raise funds if you sell stocks and open it to the market.

A corporation can last for a very long time. Even with the changing of stockholders, the corporation can continue to exist.

A corporation has its own credit line. Even if the stockholders? or personnel?s credit records are not so wonderful, the corporation can retain a clean slate.

By: Eddie Tobey