Monday, November 30, 2015
Top Entrepreneur News

Mon, 30 Nov 2015 11:30:00 -0600

What you do every day you will do better, regardless of how badly you do it at the start.

Sun, 29 Nov 2015 16:00:00 -0600

Ayah Bdeir thinks that parents are key advocates to learning more about technology.

Sun, 29 Nov 2015 14:00:00 -0600

Debbie Justesen loves good food, and she wants to be healthy. With her Costa Vida franchise, she gets both.

Sat, 28 Nov 2015 20:00:00 -0600

The founders of growing companies such as SoapBox Soaps and Contently explain how they stay on point.

Sat, 28 Nov 2015 16:00:00 -0600

Kill two birds with one stone, says crowdfunding consultant Sally Outlaw.

Fri, 27 Nov 2015 20:00:00 -0600

Follow the tips to gain a larger audience and leave a lasting impression while doing so.

Fri, 27 Nov 2015 19:00:00 -0600

Change your habits, change your business and change your life.

Fri, 27 Nov 2015 18:00:00 -0600

If you're interested in more adult shopping for Black Friday through Cyber Monday, wine companies are uncorking deals.

Fri, 27 Nov 2015 17:30:00 -0600

The movie focuses on the 'hero's journey,' a structure that can be useful when telling VCs your company's story.

Fri, 27 Nov 2015 16:30:00 -0600

Is your child pulling on your heartstrings, begging for that special toy or trip? What you should do is plan.

Fri, 27 Nov 2015 16:00:00 -0600

Startup opportunities based on Internet culture and trends are boundless. What are you doing about that?

Fri, 27 Nov 2015 15:00:00 -0600

Here are six tips to transition into a new role -- and a new life -- after you've handed over the reins of the business you started.

Fri, 27 Nov 2015 14:30:00 -0600

Running a successful startup means more rainy days than bright, clear skies. Here's how to not end up all wet.

Fri, 27 Nov 2015 14:05:00 -0600

The event gives consumers exclusive savings while also offering them a way to donate to charities of their choosing.

Fri, 27 Nov 2015 13:30:00 -0600

When entrepreneurs are successful at one thing, they inevitably assume they can replicate that success again and again … until they can't.

Mon, 30 Nov 2015 08:36:00 -0600

I was scared to hit publish on this post. But that's precisely the reason why I had to do it.

Mon, 30 Nov 2015 07:22:00 -0600

A new study by the Economist Intelligence Unit has just been released that shows how big data is moving from its infancy to “data adolescence,” in which companies are increasingly meeting the challenges of a data-driven world. The report, called “Big Data Evolution,” details the ways in which companies’ attitudes and [...]

Mon, 30 Nov 2015 06:49:00 -0600

The Season 6 midseason finale of 'The Walking Dead' leaves viewers with one of TV's more absurd cliffhangers.

Sun, 29 Nov 2015 22:10:00 -0600

Deals on Samsung smartphones, tablets and wearables are some of the best of Cyber Monday 2015...

Sun, 29 Nov 2015 21:21:00 -0600

Dubai, the largest city in the United Arab Emirates (UAE) and a key logistics hub for the Middle East, said it would make rooftop solar panels mandatory for all buildings beginning in 2030. Last week, Sheikh Mohammed bin Rashid, the political leader of Dubai, launched the Dubai Clean Energy Strategy 2050, [...]

Sun, 29 Nov 2015 19:00:00 -0600

An infographic showing the top 10 places to launch your startup holds a few surprises. Richard Madison of The Brighton School of Business and Management used various criteria for the infographic. It  recently published by Seedstars World, a Swiss-based company holding competitions in emerging markets to help grow ideas and [...]

Sun, 29 Nov 2015 14:20:00 -0600

Apple deals are even stronger for Cyber Monday than Black Friday...

Sun, 29 Nov 2015 13:59:00 -0600

A cooperative in Damascus supports 50 Syrian women who didn't want to take humanitarian aid. Then, it's leader was arrested.

Sun, 29 Nov 2015 13:08:00 -0600

On Cyber Monday check out these tips for getting the best deals before making online purchases.

Wed, 25 Nov 2015 19:07:00 -0600

There’s always that tipping point when the future turns into the present; novelty becomes the new normal. In tech recruiting, that’s the case with social media. If you’re not building social media into your recruiting efforts at this point, you’re not really recruiting on par with the industry standard. Need a [...]

Sun, 22 Nov 2015 17:10:00 -0600

  I just finished two days of binge-watching Jessica Jones, going against my better instincts to read the comics first and spread the episodes out over at least the course of the week. I regret nothing. The show is great, with fantastic chemistry between the leads of Jessica (Krysten Ritter) and Trish (Rachel [...]

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Chaldeans Buying Businesses Need to Beware
By Bedre Konja :: Monday, January 28, 2008 :: 12888 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.