Guide to Buying and Selling a Business

Are you trying to sell your business or perhaps even buy a business? Before you visit out website (http://www.SELLorINVEST.com) please understand the characteristics of being in a small business.

Becoming an entrepreneur is not easy nor is it for those who like to work 9-5.  You have to be a weekend warrior, and furthermore be able to develop and grow a business.

Step 1- When attempting to acquiring a business, always remember the net present value of your money.  How much is your money worth today?  $100 today mean making $150 by the end of the year, but are you able to invest the $100 and keep a residual to live off.

Step 2- Knowing how to increase sales and generate a higher profit from previous owner.  As a self -employed entrepreneur for the past 10 years, I have taken businesses from the ground up and from average margins to higher revenues.  Not only do you get to reap the profits from a business you bought that was generating a smaller profit from its original purchase, but you increase the intangible value.  For example, if you buy a a business at $100,000 and is generating about $25,000 in profit and after 2 years you increase profit levels to $50,000.  You have increased the value of the business to $160,000!  That means if you were to sell the business after 2 years, you make an additional $60,000 from the sale on top of your already in place income.Step 3- Selling is the final step and doing this is just as difficult as increasing the sales.  Showing a potential buyer what a business is worth and explaining how the operation is something you should already know - why? - because you treated the seller when you bought the business the same way!  Always remember, the buyer needs to know there is income being generated, BUT at the same time, a buyer must understand building equity IS INCOME!   That means, when your paying your SBA loan or any note, you are putting money to investment equity.Pete Patel
http://www.SELLorINVEST.com