Friday, October 28, 2016
Top Entrepreneur News

Fri, 28 Oct 2016 11:30:00 -0500

The main difference between the few who get ahead and the many treading water is how well they spend their time.

Fri, 28 Oct 2016 11:00:00 -0500

Getting rich quick is difficult but getting rich eventually is just a matter of thrift, work and patience.

Thu, 27 Oct 2016 20:30:00 -0500

Getting your company into publications isn't as hard as you think.

Thu, 27 Oct 2016 20:00:00 -0500

There are no shortcuts to building a solid network of engaged investors.

Thu, 27 Oct 2016 19:30:00 -0500

For starters, ponder your ad's placement, using that old real estate rule: location, location, location.

Thu, 27 Oct 2016 19:00:00 -0500

If vetted correctly, interns can be a great asset for any company, especially those just starting up.

Thu, 27 Oct 2016 19:00:00 -0500

Steve Jobs. Mark Zuckerberg. Bill Gates. All dropped out. Should you follow their example?

Thu, 27 Oct 2016 18:30:00 -0500

The driving principle, more and more, is to create value as the ultimate goal, rather than profit for profit's sake.

Thu, 27 Oct 2016 18:00:00 -0500

The tale about the entrepreneur with the good idea who made millions? It's rare. Very rare.

Thu, 27 Oct 2016 17:46:08 -0500

Although the app will be gone within the coming months, Twitter will be keeping Vine's website up indefinitely.

Thu, 27 Oct 2016 17:45:00 -0500

There is no correlation between presidents and the economic status of the U.S.

Thu, 27 Oct 2016 17:30:00 -0500

Christine Johnson, president of STAR Chicago, talks about the importance of having passion for what you do.

Thu, 27 Oct 2016 17:00:00 -0500

If you don't entice the audience on stage, you'll fail miserably off stage.

Thu, 27 Oct 2016 17:00:00 -0500

Tinder's not just a dating app anymore.

Thu, 27 Oct 2016 16:55:00 -0500

This DIY doorbell gives kids all the treats they need without you ever having to leave the couch.

Fri, 28 Oct 2016 02:30:00 -0500

China isn’t just feared in Asia because of its big military, economy and giant Communist state. Chinese companies have also diverted manufacturing work from its fretful neighbors Japan, Taiwan and South Korea. Now that threat is taking on new urgency: Chinese companies suddenly lead the world in their expansion of [...]

Fri, 28 Oct 2016 00:00:00 -0500

What you didn't see from Tim Cook at this week's MacBook Pro launch was a requiem for two of Apple's stalwart laptops. The smaller MacBook Air is unlikely to be missed, but the loss of the beloved MacBook Pro was necessary. It was just too good a deal for anyone wanting a value for money MacBook.

Thu, 27 Oct 2016 23:55:00 -0500

America’s oldest brewery is catching flak after its billionaire owner, Dick Yuengling, expressed support for Donald Trump.

Thu, 27 Oct 2016 23:40:00 -0500

Kailash was only hired nine months ago but he's already getting the sinking feeling that his company may not care about his project anymore. Is Kailash about to get fired? Here are ten signs!

Thu, 27 Oct 2016 21:42:00 -0500

Here's how to start a blog for your freelance business, produce compelling content and spread the word about it.

Thu, 27 Oct 2016 19:57:00 -0500

On Monday, the Obama administration announced that premiums in Obamacare’s insurance exchanges would increase by an average of 22 percent in 2017. That’s far worse than what many observers had expected. But the biggest surprise hasn’t been Obamacare’s rate hikes. It has been the implausible excuses the President and his cheerleaders have floated to deflect blame for unaffordable coverage.

Thu, 27 Oct 2016 16:53:00 -0500

Yesterday a young Brazilian political star was born, and though she is only 16, many Brazilians see her as a sign of hope for the beleaguered country's future.

Thu, 27 Oct 2016 13:45:00 -0500

It’s good to be smart, but brains will only take you so far. Here's how body language can draw people to you like ants to a picnic.

Thu, 27 Oct 2016 02:00:00 -0500

Philippine President Rodrigo Duterte is wrapping up a visit to Japan today. Japan wants to keep up ties with the fellow democratic Asian countryand traditional U.S. ally, a measure to help resist Chinese expansion.

Mon, 24 Oct 2016 07:00:00 -0500

Want to be an entrepreneur, but work at a big company? You still can! Here are the skills you’ll need.

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Chaldeans Buying Businesses Need to Beware
By Bedre Konja :: Monday, January 28, 2008 :: 15413 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.