Business Continuity Audit

Business Brokers Can Play a Key Role in Selling a Business

admin — Fri, 30 Apr 2010 11:32:42 +0000

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

admin — Fri, 30 Apr 2010 05:39:53 +0000

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

admin — Thu, 29 Apr 2010 20:24:44 +0000

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

Business Etiquette

admin — Tue, 27 Apr 2010 19:37:01 +0000

Business etiquette is in essence about building relationships with people. In the business world, it is people that influence your success or failure. Etiquette, and in particular business etiquette, is simply a means of maximising your business potential.

If you feel comfortable around someone and vice versa, better communication and mutual trust will develop. This comfort zone is realised through presenting yourself effectively. Business etiquette helps you achieve this.

Business etiquette revolves around two things. Firstly, thoughtful consideration of the interests and feelings of others and secondly, minimising misunderstandings. Both are dependent upon self conduct. Business etiquette polishes this conduct.

Business etiquette varies from region to region and country to country. For the international business person, focusing too deeply on international business etiquette would leave no time for business. However, there are some key pillars upon which good business etiquette is built.

Behaviour

Your manners and attitude will speak volumes about you. They will point to your inner character. If you come across selfish, undisciplined or uncouth your relationship is unlikely to prosper. Appropriate business etiquette promotes positive traits.

Honesty

A reputation for delivering what you say will deliver goes a long way in the business world. Remember, a reputation for integrity is slowly gained but quickly lost. Understanding a particular country’s business etiquette provides a framework in which you can work without fear of crossing boundaries in terms of agreements, promises and contracts.

Character

Your character refers to what you as an individual bring to the business table. Proper business etiquette allows you to exhibit your positive qualities. For example, knowing when to be passionate and not emotional or self-confident without being arrogant. Just through learning another’s business etiquette you demonstrate an open-mindedness which will earn respect.

Sensitivity

Sensitivity and consideration underlie all good business etiquette. Being prepared for foreign ways and methods and responding thoughtfully is achieved through experience and business etiquette know-how. By avoiding misunderstandings and misinterpretations through business etiquette you lay foundations for a strong business relationship.

Diplomacy

Avoiding thoughtless words and actions protects you from negative consequences. Impulse often leads a business person astray. Business etiquette encourages the careful thought of the interests of others and choosing acceptable forms of expression.

Appearance

Dressing appropriately, standing and sitting in the right place at the right time, good posture and looking physically presentable are all elements in making a good impression. Business etiquette teaches you how to suitably present yourself and what to avoid.

Analysing, understanding and implementing the above will help you recognise what business etiquette is and how it should be employed within the business world.

For the international business person business, etiquette acts as a key. It locks the doors of poor communication and misunderstandings and opens doors to successful business relationships.

By: Neil Payne

Business Letter Closings – Are You Sincere, Faithful or True?

admin — Tue, 27 Apr 2010 17:16:34 +0000

Business letter closings are part of a standard format but are subject to several variations. Sometimes called the “complimentary close”, business letter closings vary by geography, type of letter and sometimes relationship of the writer to the recipient. In learning how to write a business letter, pay attention to all three in choosing your close. Your choice can change the tone of your business letter, creating a more or less formal or friendly message. Depending on your standing with the recipient, as well as the part of the world you are both in, this can make a difference in how your message is received.

Geography

In the U.K., business letters almost always adhere to long standing tradition and close with Yours faithfully, while in North America and Australia, Yours sincerely is the norm. You’ll also see Yours truly on some letters.

Type of Letter

Formal business letter closings generally use the complete phrase, such as Yours truly, and sometimes it will be amplified to Yours very truly. Letters to professionals of high standing, such as judges or senior government officials, may close with Respectfully. In diplomatic circles, business letter closings can be quite elaborate and unusual, e.g. Your obedient servant!

Relationship

When writer and recipient know each other well, more casual closings are acceptable in North America and Australia, and sometimes even in the U.K. Popular choices include Best Regards, Regards, Cordially.

In all variations of business letter closings, the first letter of the first word is capitalized, but the second is not, e.g. Yours sincerely, not Yours Sincerely.

By: Helen Wilkie