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
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
Buying something, making improvements, and selling it for a profit is not new. Think about people who do this with cars or houses; you will realize many things can be flipped for profit. Websites are no exception.But how do you flip a website?To flip a website, first choose a market segment or niche to build a website or buy an underperforming website, create new content for the website and drive traffic to it through SEO and other website improvement techniques, set up affiliate advertising links, and then sell the website.While it may seem easy and
Being direct… Who doesn’t want a high cashflow business that is easy to operate? I’ve got both hands up. I’m going to share with you some business models I’ve ran across that are easy to operate’. This is going to come from the perspective of; acquiring a business. I prefer to acquire established businesses rather than start them. About that ‘Easy To Operate’ Of course I must state the obvious, ‘easy to operate’ is subjective. An easy to operate business for myself might be an Ecommerce digital business where I don’t have to entertain clients
If you own a small business, there might be times when cash flow is a problem, or you want to expand your business but need more funds to do so. In cases like these, one option for financing is asset-based lending. But what is asset-based lending, and how does it work? Asset-based lending is a form of credit in which one or more of a company's assets, such as accounts receivable, inventory, equipment, and real estate, are used as collateral. The lender may seize these assets if the business cannot repay the installments anymore and
According to Edgar Dale’s Cone of Experience, people remember only 10% of what they read, 50% of what they see and hear, and 90% of what they do. The average American is bombarded with between 4,000-10,000 ads daily, so it’s no wonder that people rarely remember print or display ads. A good video, however, can linger in a consumer’s mind. With over 2.6 billion unique monthly visitors and 22.8 billion visits per month in 2022 (more than Facebook, Amazon, Wikipedia, and Instagram combined), it’s no wonder that YouTube is the world’s second largest search engine
It goes without saying that video is one of the most powerful and engaging forms of content online. In fact, Ericsson forecasts that by 2024, the video will account for 74 percent of all internet traffic. That’s a staggering number, and it’s no wonder why businesses are clamoring to create more video content. But simply posting videos to your YouTube channel isn’t enough. If you want to see real results—more views, engagement, and shares—you need to optimize them for SEO. Luckily, optimizing your videos for SEO is actually pretty easy once you know what to
As an investor, you have lots of choices when it comes to spending your money. After all, there are lots of ways to expand and diversify your portfolio. One way that has gained significant attention in recent years is that of a farmland REIT. But what exactly is a REIT? And why should you consider it as a viable investment opportunity in 2022? Let’s find out. What is a REIT? A REIT is a Real Estate Investment Trust Fund. It’s a vehicle that helps people invest in farmland and is an attractive option. After all,
20%. 40%. 60%. More? Allocation of your portfolio to international stocks and be a tough decision make. Even financial professionals don't have a consensus on what an investors allocation to International stock should be. Big Investors That Like US Only Stocks 2 big name investors make it clear that they don't like international stocks and advise investors to invest only in US equities. The first is Jack Bogle, the founder of Vanguard. He expressed "You have an international portfolio, why do you want a larger one?" referencing the fact that the S&P 500 derives
So you want to beat inflation with investments? You’re not alone has we’re in a period where the Consumer Price Index (CPI) is consistently reaching 40 year highs! And cash is a losing game, along with (currently) bonds, and the S&P 500, both of which are down about 10% as of writing this on March 22nd 2022. Here we’ll look at what asset classes have done well, from some charts and data! I've also done a video on this topic covering much of what is in this blog post if you would rather watch it!
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