ENTREPRENEURSHIP THROUGH ACQUISITION
A Reliable Alternative To Chasing Unicorns
Petition to Save the SBA 7(a) Loan Program
The Payroll Protection Program (PPP), although necessary, as written in the bill, is depleting all available monies allocated for the standard SBA 7(a) loan program. This is causing a situation in which the program will soon run out of funds, with no further SBA 7(a) loans available through June 30, 2020.
Save Small Businesses & SBA 7(a) Loans
The U.S. Economy depends to a great extent on our small business community. The welfare of small businesses affects each and everyone of us directly or indirectly as this makes up 50% of our GDP.
The Payroll Protection Program (PPP), although necessary, as written in the bill, is depleting all available monies allocated for the standard SBA 7(a) loan program. This is causing a situation in which the program will soon run out of funds, with no further SBA 7(a) loans available through June 30, 2020.
Without the SBA 7(a) loan program, new business opportunities, expansion, and acquisitions could be greatly affected. If it is true, as many believe, that small businesses will lead us into an economic recovery, the absence of these loans could hamper the U.S.’s ability to have a rapid financial recovery and could potentially cause many small businesses to close their doors for good. We are petitioning for the reallocation of the source of the PPP funds in order to protect the resources originally intended to help all small business owners through the end of the government’s fiscal year, September 30, 2020.
In 2010, the SBA recognized the importance of small businesses by passing a recovery act allowing SBA lenders to receive a 90% guarantee on loans funded during the recovery period, while waiving all borrower fees. The resulting credit enhancement gave lenders incentive to provide small businesses with financing that they typically would not have entertained during an economic downturn. In addition, the waiving of borrower fees made it much more affordable for business owners. This provided many new jobs and stimulated the markets, shortening U.S. recovery time. This petition urges Congress to initiate and pass a new recovery act that includes the 90% SBA guarantee for loans made by lenders for at least through the end of 2020 as well as a waiver of the SBA guarantee fees for at least the same period.
-James Parker - Boss Group InternationalBoss Group International
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
Buying a Business: How to Value a Small Business That's for Sale
Buying an existing business can yield big rewards. The more market value a business has the better. Read on to learn how to value a small business that's for sale.
Buying a business
How to value a small business for sale?
Buying an existing business can yield big rewards. The more market value a business has the better.
Discover how to value a small business that's for sale.
Starting a business from the ground up is a major undertaking without any guaranteed success after all that hard work. In fact, once opened, only about 20% of businesses survive their first year. This statistic is both staggering and disheartening.
Instead of swinging for the fences and shedding blood, sweat, and tears in the hopes of getting a business to profitability, you can ensure success and profitability by purchasing a business instead of starting one.
You might be wondering how to go about putting a dollar value on an active, profitable business.... There are certain ways you can go about that and make sure that you're investing your money in the right places.
Keep reading to learn how to value a small business that's for sale.
1. Assess the Business Market Value
If you want to know how to evaluate a business, one reliable method is to assess the business market value.
Business value is determined by the market itself. With this in mind, you can compare the type of business you want to buy with the same types of businesses that have already sold.
If a business you want to buy is way above the determined market value, then you might be getting ripped off. However, the market value isn't the only factor to consider.
2. Calculate Assets and Liabilities
Another way to get an accurate idea of how much a business is worth is by determining the difference between assets and liabilities. That number will be a reliable indicator of whether or not you should invest.
Remember that assets are a bunch of smaller chunks of a business that can add up to much more value than what might first meet the eye.
Liabilities, on the other hand, are debts that the small businesses still need to pay off, which takes away from value, of course. With that in mind, too many liabilities can be a red flag when thinking about buying a business.
Check out this video if you are looking to buy a website, eCommerce, an app or SaaS Company
3. Check the Income History
Yet another way to assess the value of a small business is by looking at its income history.
This is a great way to figure out whether your investment will be profitable at the get-go. You can also figure out if you're looking at a low-maintenance business or one that will need more work put into it.
By adding up the net profits of the business from the past and getting the average, you can have an idea of what to expect after you buy the business.
From there, you can use a purpose-driven model to grow that business even further if you're up to the task.
You Know How to Value a Small Business
Now that you know how to value a small business that's for sale, you can start thinking about taking your first steps towards finding an actual business to approach.
Whether you want to buy a business that's for sale or put your business on the market through a business broker, BizNexus can help you get matched.
To get started, sign up and set your acquisition preferences, and start getting matched with businesses for sale and business brokers who can help you. Try it at www.biznexus.com
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
What You Need to Know About Selling a Small Business
Start with this entrepreneur's guide to selling a small business as quickly and efficiently as possible.
Read to exit your business?
Here are great tips you need to know
You're ready to move on to the next venture. Start with this entrepreneur's guide to selling a small business as quickly and efficiently as possible.
Selling a small business
In 2018, there was a 4% increase in businesses sold from the previous year. The 2019 numbers are just coming in and it's clear this has been a banner year for business exits/sales.
The economy has been on a tear and business owners are cashing in on a market with active buyers and high price multiples. But don't believe that just because you have a business, and because you work really hard in that business, that you'll be able to sell your business quickly.
There are steps you need to take when selling a small business, and we want to share with you what they are. Keep reading our guide to learn how to sell your own business.
Figure Out Why You're Selling a Small Business
The first step to selling a small business is being able to clearly articulate why you want to sell. Most potential buyers will ask this question right off the bat.
Most business owners decide to sell for the following reasons:
Bored
Overworked
Retiring
Illness or death
Partner problems
Others decide to sell because their business isn't profitable and their soul has been accordingly crushed after years of slugging it out with nothing to show for it. Selling a struggling business is like trying to sell a rundown house with a crappy foundation and a frat house next door. It's harder to get a favorable transaction done and there are fewer buyers out there interested in dealing with the problems they'd be inheriting in a market with so many attractive deals for sale.
You're better off trying to fix any addressable problems before putting your business on the market if you can take the time to do it.
You Must Know The Real Value When Selling a Company
It's vital you know how much your company is actually worth in the eyes of a potential buyer. This will ensure you don't price it too low or too high.
Find a business broker to get a valuation. The broker will provide you with a detailed explanation of your business's worth based on real market comparable and professional experience.
A formal valuation can also help you back up your asking price. Most buyers will ask for the business to have a valuation done at some point in the process, so better to arm yourself with one before you start engaging prospects.
Prepare Documents
There are certain documents buyer's will need to take a look at regarding your business such as:
Financial statements
Tax returns (dating back three to four years)
List of equipment being sold with the business
A list of contacts of salespeople and suppliers
You should also include any relevant paperwork like your current lease. A buyer must understand exactly what he or she is getting if they choose to buy your business.
Find a Broker
Yes, you can sell a business without a broker but it's like selling a home without a broker. It's often more difficult, riskier, and leaves you vulnerable to making costly mistakes.
Selling your business tends to be a lengthy process. Being patient, taking your time, and being thorough will help you make smarter decisions.
Before choosing a broker, interview several before you choose which one to work with. A good broker will have a realistic approach. A bad broker will try to sell you a fantasy of what you can expect and it'll take longer for your business to sell it at all.
Put Your Business on the Market
Selling a small business doesn't have to be hard. You just need to surround yourself with the right team to help you find the right buyer. Use websites like BizNexus to match you with the right business intermediaries to help you sell your business on optimal terms at the right price.
Best of all, it's a free service. Click here to try it now.
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
5 Biggest Myths When Taking Out a Business Loan
Business loans are great for people looking to start huge corporations, but what about if you just want to buy a small business? Read on to learn more about some of the biggest myths about taking out a business loan.
5 Biggest Myths
When Taking Out a Business Loan
Are you thinking about taking out a business loan but you're worried you might be misinformed? Read this article to figure out what you need to know.
Taking out a business loan
Do you ever think that you’d like to start a business someday if only you had the money? Business loans are great for people looking to start huge corporations, but what about if you just want to buy a small business?
Loans like that aren’t available to people in your situation, right? Wrong, In fact, there are so many business loan options these days that anyone can find a loan to suit their needs. But there are still a lot of misconceptions about these loans floating around.
Read on to learn more about some of the biggest myths about taking out a business loan.
1. Go Big or Go Home
One of the biggest myths about business loans is that you have to take out a large amount of money. Many banks do prefer larger loans, but there are lots of microloan financing options available. The Small Business Association will even offer loans as small as $500 if you need some cash quickly.
2. Perfection Is Crucial
Having good credit does help improve your chances of getting a loan with good terms. But if your credit history isn’t flawless, you can still get a business loan. Smaller loans, in particular, tend to work well for people working on building a bad credit score back up.
3. It Takes Forever
In the old days, you’d have to spend days or weeks putting together a loan application and another few weeks or months to get the money. But today’s world moves faster, and business loans are no exception. You may be able to complete a loan in as little as an hour and get the money as soon as a few days later.
4. Collateral Is Important
Trying to offer collateral when you’re trying to start or grow a small business can be tricky. The whole idea is that you don’t have a lot of capital, to begin with. But there are some loan options today that don’t require any sort of collateral if you don’t have much you want to offer.
5. You Don’t Have Options
Many small business owners have the idea that when they go in to get a loan, there are fixed terms they’ll have to deal with. But lenders know that not every business is the same, and not every borrower’s needs are the same. They can adjust the terms of their loan to suit your business needs (within reason, of course).
Learn More About Taking out a Business Loan
Taking out a business loan can be a great way to give your business a boost when you need it. And in today’s financial world, you don’t have to settle for huge loans that require perfect credit and a ton of collateral. There are a ton of options open to you, so shop around and find the solution that works best for your business.
If you’d like to get help buying or selling a business, get in touch with us at BizNexus. We are here to help you manage entrepreneurship through acquisition. Explore our financing options for buying a business, and get started on your new venture today.
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
Spend Money to Make It: Financing Options for Buying a Business
If you've found the business you want to purchase, but aren't sure how to pay for it then this guide is for you. Keep reading to get the money you need.
Want To Buy A Business?
Financing Options For Buying A Business
If you've found the business you want to purchase, but aren't sure how to pay for it then this guide is for you. Keep reading to get the money you need.
Financing options for buying a business:
It doesn't matter if you're a solopreneur or a budding business owner who will employ hundreds. Starting a business requires capital.
On average in the United States, it costs a whopping $30,000 to start a small business from scratch. That's averaging out the big guys with the little guys. You can imagine how much some entrepreneurs might be risking on their startups.
If you're unsure how much it will cost to start your business, you can check the estimated cost of your startup with Entrepreneur.com's calculator tool. There's more to consider than you might think.
Once you know how much you need, how are you going to get the money? Like dad says, "money doesn't grow on trees." Let's explore some financing options for buying a business and get you on your way to success.
Angel Investors
If you can snag an angel investor, you're in great hands. These guys know the risk of a budding startup and are willing to take it. They typically own more than $1M in assets which affords wriggle room for more risky investments.
The biggest downside to an angel investor is their need for even more detailed plans. You need to convince them of your credibility. Just because they are willing to take risks doesn't mean they're wanting to throw their money in a hole.
Do your research. Gather competition analysis, create detailed sales and marketing plans. Essentially, show your expertise in your market.
Your idea needs longevity. If you're just sniffing out a trend but don't know how your product or service will fare in the long run, you won't attract an angel investor.
Lastly, be passionate. If you truly believe in your vision, that's infectious. If you've done your research and your idea has a long half-life, go all-in. Your ardent enthusiasm will help lubricate their pockets.
Micro-lending
If you've ruined your credit on previous passion projects, you may not be able to get a traditional loan. If you really think your business will take off, you might try a microloan.
Micro-lenders are another group of risk-takers. But the return on their risk is higher. They charge a higher interest than a typical loan.
How much higher? You could see APR as high as 30% in some cases, although that's rare. No need for collateral either which balances out the high interest rates.
One such example of micro-lending is peer-to-peer lending. Cutting out the gatekeepers gives more people access to small business funds than traditional means provide.
A few examples of P2P lending companies:
Upstart: a group of ex-Googlers started a platform that judges borrowers not on FICO score but on education, academic performance, and work history.
Funding Circle: After the founder's loan was rejected for the 96th time, they created Funding Circle for U.S. and U.K. small business owners.
Prosper Marketplace, Inc.: This is the original U.S. P2P marketplace. It now serves over 800,000 people.
A Few Other Financing Options for Buying a Business
There are a few more financing options for buying a business outside of traditional loans from either the government or the bank. Self-funding is one of them. Tap into your 401ks, use a credit card if you have a large credit reserve, or start a crowdfunding campaign (that last needs a previously existing fan base or really great marketing).
If you're ready to get financed, let us know. We'll show you how it's done.
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.