Saturday, August 29, 2015
Top Entrepreneur News

Sat, 29 Aug 2015 15:00:00 -0500

Essie Weingarten wants to remind entrepreneurs that success takes time and commitment.

Sat, 29 Aug 2015 14:00:00 -0500

With 74 western U.S. Dairy Queen locations, and 43 years as both franchisor and franchisee, Bill Spae is also focused on growth.

Fri, 28 Aug 2015 21:30:00 -0500

Companies in the booming sharing economy depend on contractors who may legally qualify as full time employees. The distinction is crucial for both workers and their employers.

Fri, 28 Aug 2015 21:00:00 -0500

What happened in Roanoke wasn't the first tragedy and won't be the last.

Fri, 28 Aug 2015 20:30:00 -0500

When it comes to building your brand, how you spend your money is at least as important as how much money you spend.

Fri, 28 Aug 2015 20:00:00 -0500

The hit show is just the frosted tip of what Carlo's Bakery has grown to be.

Fri, 28 Aug 2015 19:30:00 -0500

On the eve of a son's departure for college, an Adobe executive ponders the parenting lessons she's learned.

Fri, 28 Aug 2015 19:00:00 -0500

Even if you've attended a conference that targets young entrepreneurs, perhaps it was run by a different age group and therefore came across as less than authentic. Try these events.

Fri, 28 Aug 2015 18:30:00 -0500

We don't have the time or the resources to carefully think through everything. So we do a lot of things by our gut. Sometimes things turn out OK. Sometimes, well -- it's not so good.

Fri, 28 Aug 2015 18:00:00 -0500

Investors can't really evaluate any new business, but they can assess the logic behind your numbers, and compare that logic to their experience and rational business norms.

Fri, 28 Aug 2015 17:30:00 -0500

More insights into the growth of my product-based company that can be operated from anywhere in the world with an Internet connection.

Fri, 28 Aug 2015 17:01:00 -0500

Be glad you don't have this guy working for you.

Fri, 28 Aug 2015 17:00:00 -0500

Believe it. There's actually a type of breakup that's good for you.

Fri, 28 Aug 2015 16:30:00 -0500

The brain is lightning fast but it still does just one thing at a time.

Fri, 28 Aug 2015 16:00:00 -0500

Knowing how the mind processes information and images can help you send the right message.

Sat, 29 Aug 2015 14:40:00 -0500

These days, developers are trying to create video games to teach just about everything. It seems pretty clear that learning through digital play can be extremely effective. So there’s a race on to build the best apps and games to teach each and every subject. I recently tested an iPad [...]

Sat, 29 Aug 2015 14:34:00 -0500

What else can you buy for the price of the Galaxy Note 5?

Sat, 29 Aug 2015 14:31:00 -0500

How do you handle the sticky question "What was your last salary?" Liz Ryan lays it out!

Sat, 29 Aug 2015 13:00:00 -0500

Ubisoft explores the history of the 'Assassin's Creed' series.

Fri, 28 Aug 2015 23:04:00 -0500

This week’s Apple Loop includes the confirmed launch dates for the iPhone 6S and 6S Plus smartphones, details on pre-order and retail dates, the new camera technology in the iPhones, the risky move to include Force Touch, the cancellation of the iPhone 5C, a customized gold iPhone 6S, Tim Cook's response over the Chinese stock market, thoughts on your personal data privacy, and Microsoft's inclusion in Apple's livestream.

Fri, 28 Aug 2015 00:25:00 -0500

VideoYou might expect a film director who has had 10 successful films in a row— including the highest grossing movie his country has ever seen—to be arrogant, self-congratulatory, or at least a tiny bit prideful about his work. But in my recent conversation with India’s SS Rajamouli, the master storyteller [...]

Thu, 27 Aug 2015 18:24:00 -0500

The PowerUp 3.0 smartphone-controlled paper airplane (Image from PowerUp Toys) In a possible sign of how seriously FAA is taking unmanned aircraft operations in national airspace -- or maybe just a sign of how absurd matters have gotten -- the FAA yesterday approved the first ever toy powered paper airplane to [...]

Thu, 27 Aug 2015 16:58:00 -0500

Being happy-go-lucky is overrated. It’s neuroticism that can lead to creative breakthroughs.

Sun, 23 Aug 2015 20:59:00 -0500

When your boss doesn't respect you as a person or a professional, you're spinning your wheels. Here are Liz Ryan's 10 sure signs your boss doesn't respect you and it's time to consider your options.

Thu, 20 Aug 2015 19:01:00 -0500

This spring, Harvard announced that it had admitted just 1,990 students from its record-high applicant pool of 37,509. That means only 5.3% of those who applied got in, including the 977 students given seats in the early action pool. Together with the 4,292 applicants who were deferred from that group [...]

Wed, 19 Aug 2015 20:40:00 -0500

Paris is taking a page from other major cities in the world, declaring a day without cars throughout much of the city, including the major tourist spots, on September 27th

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Chaldeans Buying Businesses Need to Beware
By Bedre Konja :: Monday, January 28, 2008 :: 12209 Views :: Article Rating :: Business & Finance

Chaldean entrepreneurs will mostly agree that buying a business is not simple; in fact, it is almost similar to starting a new venture. The struggle of finding a business that matches your capabilities and investigating the business potential to remain profitable is just the beginning.  Buying a business requires the same thoroughness as creating a business plan for starting a business. 

Edward Putrus, owner of West Coast Electrical Warehouse Supplies in Arizona says the ability to make a good business great is different than creating a new business.  Anthony Jurjus, an associate partner in the firm Rosen, Russel, and Silverman Consulting, PLC is a commercial real estate agent and business broker who often helps Chaldeans in finding and buying businesses.  “Anyone buying a business needs to do be careful, have a strategy, be patient, and persistent,” says Jurjus. 

Jurjus suggest Chaldeans follow a 10-step process in guarantying the business they buy is the right one. 

1. Like the start of a business plan, the business for sale must match the personal and financial objectives of the buyer.  It is important that the personal and financial goals are written out before you begin your search. The Business Playbook should include a "target business profile,” listing a set of specific criteria for what you expect, what you are willing to invest, the acceptable level of risk, the minimum expected return, and the time you can devote to learning and managing the business. 

2. It is important that Chaldeans locate business opportunities with the potential to grow and offer an attractive return on investment. Finding these potential opportunities can be difficult.  Places to look include reading classified advertisements, networking in the community, discussing opportunities with business brokers, spreading the word throughout the community that you are looking for a business, and checking industry sources. Resist the temptation to buy the first business that looks good; step back and look at it objectively.

3. Always make an appointment to see the business sellers or brokers for an initial introduction to the opportunity.  Ask that they provide you with brief financial reports, history, price, and reason for sale. This will allow you to know more about the business, how long it has been for sale and the financing adjustments that need to be made.

4. If the information they give looks good and the business seems to be sound, be sure to request for additional meetings to probe for more information. It is important to look at a business at different angles.

5. Review the facility closely to determine how well it has been managed and maintained. For service businesses, talk with the employees and even customers.  You might need to provide the seller a “A letter of intent” that shows you are a serious buyer.  The letter will help encourage the seller to provide more information.  Prepare a checklist of information needed, which should include the following:

  • A complete financial accounting of operations, including all income tax returns and state sales tax forms, for at least the past three years or from the beginning of operations if not established that long. 
  • Listing of all assets to be transferred to the new owner, including item breakdown of all inventory as of the last accounting period.  
  • A statement as to any legal action past or pending against the present operation.  
  • A copy of the business lease or mortgage.  
  • A list of all major suppliers to the business to include names and addresses of those to contact who are familiar with the operation.

6. Upon a satisfactory personal examination of all information received the potential buyer should then visit:

  • An accountant for further interpretation of financial information.
  • The landlord or mortgage holder to inquire about the transfer of the premise to a new owner. In the case of a lease, the expiration date should be discussed and if possible renegotiated to the intentions of the new owner. An on-site review of the facility should be conducted to assure it is in satisfactory condition.
  • Research the future of the market and the location.  Be sure to look into demographic changes, road changes, legislation that might impact the business.  Many business owners sell a business upon learning of some legal or city hardship, hoping the buyer will be unaware of the issue. 
  • Check with vendors that sell to the business to validate the sales reported and an opinion as to the likelihood of future growth of the business.

7. Request permission from the seller to allow you to spend time at the operation observing and surveying customer satisfaction.

8. Determine a fair price to offer for the business. It should be noted, however, that there is no universally accepted formula for determining business worth. Some of the approaches include book value and capitalization-of-earnings approach.

Before you present your offer to the seller, determine what financing arrangements can be made available through a lending institution or the seller.

Present the “Intent to Offer” in writing to the seller and be sure to include the appropriate business clauses such as accuracy of information, lending approval, and confirmation of pending legal actions to name a few.   Always include in the letter that the acceptance of the intent precludes the seller from negotiating with other buyers for some period of time so that the potentially costly efforts to investigate liens, financial information, and market analysis are able to be completed.

Normally, at this point, there will be negotiation. The more information that you have collected and analyzed, the more confident you will be in presenting your case.

As the buyer, you will have to use your best persuasion techniques to convince the seller your offer is fair and the advantages to the seller of accepting the offer. Be prepared to walk away if a major obstacle prevents you from obtaining important objectives. 

9. If an agreement is reached contact an attorney to draw up a suitable sales contract and research state records for any liens against the property for failure to pay a debt.

The contract should be contingent upon examinations of all assets to validate what is represented is true.

10.  Before signing a sales contract, the buyer should be present when a final inventory count of assets, including inventory, is taken.