Monday, May 2, 2016
Top Entrepreneur News

Mon, 02 May 2016 12:00:00 -0500

The recent death of the artist known as "The Purple One" (among other names) offers lessons in the power of image, branding, and adaptability.

Mon, 02 May 2016 11:55:00 -0500

Plus: A drone ballet performed in front of Mt. Fuji.

Mon, 02 May 2016 11:30:00 -0500

Deep focus is the superpower of the 21st century. If you can harness it, you'll possess a power that most no longer have.

Sun, 01 May 2016 19:00:00 -0500

Use these tips to create a profile will make investors swipe right.

Sun, 01 May 2016 14:00:00 -0500

Industry leaders encourage constructing buyer personas. Here's what you need to know about them.

Sun, 01 May 2016 12:00:00 -0500

Entrepreneur Network partners Jen Hacker and Brittney Castro team up to tell you how to make the transition from day job to owning a business with money in your pocket.

Sun, 01 May 2016 11:00:00 -0500

Jill Raedels worked with Enterprise for 13 years before opening a kids' haircutting franchise.

Sat, 30 Apr 2016 19:00:00 -0500

This app lets you have multiple business lines and features in your pocket.

Sat, 30 Apr 2016 17:00:00 -0500

Content-marketing expert Salma Jafri says that in an age of authentic marketing, there's no reason to fear it.

Sat, 30 Apr 2016 15:00:00 -0500

'People want control over their career, and so creating their own business for under $1,000 gives them the ability to test it out, to see what works and what doesn't,' career coach says.

Sat, 30 Apr 2016 14:00:00 -0500

Bolanile Maté of Be Better Paris describes ways you can reinforce your core value system after it has been challenged.

Sat, 30 Apr 2016 13:00:00 -0500

Here are some fun ways to foster team building at work.

Sat, 30 Apr 2016 11:00:00 -0500

Employees of all ages may not be entirely comfortable on video, but they are more attentive.

Fri, 29 Apr 2016 22:30:00 -0500

To satisfy customer demand, these entrepreneurs stay on top of buying patterns and emerging trends relevant to their business.

Fri, 29 Apr 2016 22:00:00 -0500

This approach respects what people inside your company bring to the table and fosters sustainability.

Mon, 02 May 2016 10:03:00 -0500

Tim Cook, say it isn't so

Mon, 02 May 2016 07:12:00 -0500

In 2015, medical tourism – a component of healthcare tourism – generated between US$60 and US$70 billion. Within five years, it is very likely that health tourism will generate at least twice these revenues. The transformation of healthcare globally is opening the floodgates for healthcare tourism. Medical tourism is where people [...]

Mon, 02 May 2016 02:51:00 -0500

A familiar face makes a shocking return in Sunday night's episode of 'Game Of Thrones.'

Mon, 02 May 2016 02:44:00 -0500

Water tanks crowding the Fukushima Daichi nuclear plant site. Source: Getty. Here’s the problem in a nutshell—or rather a thimbleful—facing the Japanese government and Tokyo Electric Power Company (TEPCO), the operator of the crippled Fukushima Daiichi nuclear plant. There are over 1,100 large steel tanks brimming with filtered water—except for a low [...]

Sun, 01 May 2016 23:00:00 -0500

WWE Payback live results for Roman Reigns vs. AJ Styles, Chris Jericho vs. Dean Ambrose, Sami Zayn vs. Kevin Owens, Vince McMahon's major announcement and more. Be sure to stop back for live results, analysis and reaction throughout the show.

Sat, 30 Apr 2016 19:21:00 -0500

Say goodbye to Sports Authority

Fri, 29 Apr 2016 20:53:00 -0500

Australian singer/songwriter William Singe went from X Factor auditions to touring internationally by way of viral cover songs of Billboard hits.

Fri, 29 Apr 2016 18:04:00 -0500

Mark Wilson tracked his email usage for three years to find out how to improve his life. Turns out the problem wasn't his inbox, but his addiction to checking it constantly. What he learned can change your life, too.

Tue, 26 Apr 2016 13:46:00 -0500

When it's finally your turn to ask the questions in your interview, ask the hiring manager similar questions to the ones she just asked you.

Mon, 25 Apr 2016 15:31:00 -0500

Think you know what a direct-marketing sales rep looks like nowadays? Think again. She's the pretty mom at school drop off... the friendly neighbor next door... the funny friend everyone wishes they had. But even more than being a familiar face, she's someone who is educated, successful and hard-working... hardly a [...]

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Chaldeans Buying Businesses Need to Beware
By Bedre Konja :: Monday, January 28, 2008 :: 14235 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.