When it comes to red flags when buying a business nearly all buyers expect it to come up in some form of black & white whether that’s the financial statements or graph of business trends. Maybe they think it will be over stated inventory on the balance or an increase in customer concentration among — and those are legitimate red flags, but there is another one. While those examples may have some risk, they can also have logical and quantifiable risk. So what is it? Family. Family of the seller working in the business. Right
Grinding up the ladder isn’t for everyone. Acquisition entrepreneurship is perfect for people who don’t need a boss to take responsibility and work hard. In addition, once you get your businesses running the way you want them, you can reap the financial rewards while having a flexible lifestyle. After all, it will be you setting the rules. But the first step is finding businesses with excellent cash flow. The best cash flow businesses for acquisition entrepreneurs are equipment rentals, laundromats, ATMs, renting storage units, vending machines, and carwashes. Look for opportunities that can capitalize upon
Do you know what sets the best businesses apart? Their brand. That's how they convey their company to their customers, bonding with them to show value and sell better than they would otherwise. You can use their techniques too. So, what are the best storytelling techniques for small businesses?The best storytelling techniques for small businesses include studying the target demographic, going from zero to hero, and finishing strong. Picking the perfect words to tell the story is also a must. Small businesses need to create a narrative to bond with their clients.You don't need to
Making the first sale is always difficult but far from the most important. A big part of your profit line will come from old clients, not brand-new ones. Paying attention to the repeat customer rate is a must for that reason.So, how can small businesses increase their repeat customer rate?Small businesses can increase their repeat customers by building their brand, focusing on customer support, and caring for clients after the sale. Keeping in touch, such as using email lists and similar, is key to creating a connection between businesses and customers.Do you want to increase
Acquiring a business is a big deal, and doing so in the best way possible will take a few considerations. You can either obtain a small business as an asset sale or stock sale, with no in-between options, so depending on your company structure and goals, one acquisition method might be better than the other.Asset sales are best for small business acquisitions from a buyer's point of view due to favorable tax implications, fewer liabilities, and more freedom in structuring the new company. However, buying a small business can sometimes work better with a stock
Rewarding high-performing employees with a great cliff vesting benefits package is a prudent business decision as a motivated workforce is essential for financial sustainability. Although, devising a cliff vesting benefits package with so many options can be challenging.Small businesses benefit from cliff vesting as it attracts and retains top talent. Most cliff vesting benefits plans are three years long, so employees must remain in a business for that period. And companies have adequate time to monitor their employee's performance before they are vested. Even though establishing a cliff vesting plan for your key employees may sound
Establishing a holding company for your expanding business is beneficial for many reasons. It can reduce your tax burden and protect your personal assets. Although, it’s essential to create a holding company structure that will provide all those benefits and not create an added burden.The best holding company structures for small business acquisitions are limited liability companies (LLCs) or S corporations. They provide legal liability protection. And owners can benefit from registering a holding company in a business-friendly state and thus reduce their tax burden.Even though establishing a holding company for your small business acquisition
By: Corey Philip | Updated: February 2, 2023
On-the-go listening has grown considerably; in fact, in 2022, there were 464.7 million listeners across the globe. The prediction is that listenership will grow to 504.9 million by 2024. 37% of Americans listen to podcasts every month. If ever there was a time to record podcasts, it is now. You can record anytime and practically anywhere if you have an Apple iPhone.To record a podcast on your Apple iPhone, you can use either Voice Memos or GarageBand. Both Apps come standard with your phone. It would be best to have a good quality external microphone
Suppose you are starting a business with a few shareholders on board. In that case, you might have reached the predicament of choosing between an S corp or an LLC. With these two choices having similarities, there is one question that remains. Is it possible for an S corp to own an LLC?An S corp can own an LLC. A Limited Liability Company is an entity that provides ownership interest through shares. These shares can be purchased by other business entities or individuals. An S corp is an independent legal entity, enabling it to invest
Suppose you, as an investor, are interested in acquiring a small business. You will undoubtedly face certain challenges and risks; that’s a given. But some businesses present more risk than is necessary to take.The correlation between revenue and customer contribution to revenue and profit is high on the list of possible risks. It would be best if you delved deeper to make an informed decision.It’s risky buying a small business with customer concentration. If 10% of the business’ income comes from 1 client or 25% from 2 or 3 clients, losing these clients could be
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