Wednesday, February 10, 2016
Top Entrepreneur News

Wed, 10 Feb 2016 19:15:00 -0600

Our branding expert Laura Ries says neither.

Wed, 10 Feb 2016 19:07:00 -0600

The video streaming site is going up against Netflix by rolling out new original series behind a $9.99-a-month paywall.

Wed, 10 Feb 2016 19:00:00 -0600

One of the litmus tests of entrepreneurship is how well you lead and do business with people older than you. Follow these steps to do both successfully.

Wed, 10 Feb 2016 18:30:00 -0600

America didn't make it to the moon by taking the easy way out.

Wed, 10 Feb 2016 18:00:00 -0600

Sharing a home, a bed and a business can be great. Or it can be challenging.

Wed, 10 Feb 2016 17:57:00 -0600

The announcement comes days after CEO Jack Dorsey softly debunked the possible change.

Wed, 10 Feb 2016 17:30:00 -0600

As an entrepreneur, be wary of these six unseen errors that can hurt -- or even ruin -- your company.

Wed, 10 Feb 2016 17:15:00 -0600

The billionaire candidate believes in himself 100 percent. Can you say the same about yourself?

Wed, 10 Feb 2016 17:00:00 -0600

If you can tell a corporate audience in an engaging way how to make or save money, they'll pay you. But it's more work than it sounds.

Wed, 10 Feb 2016 17:00:00 -0600

It's a serious wake-up call, but it won't be the end of your business. Let's figure out what went wrong.

Wed, 10 Feb 2016 16:30:00 -0600

Ever consider that entrepreneurship is the answer to that crippling monthly debt?

Wed, 10 Feb 2016 15:35:34 -0600

Major automakers and technology companies such as Google are racing to develop and sell vehicles that can drive themselves at least part of the time.

Wed, 10 Feb 2016 15:30:00 -0600

With Super Bowl mania subsided, a calm look at the NFL's season yields several lessons for those in the harshest contact sport of all -- business.

Wed, 10 Feb 2016 15:00:00 -0600

If you include these elements in your marketing plan, you'll be one step closer to finding interested prospects for your franchise.

Wed, 10 Feb 2016 14:30:00 -0600

Eight out of 10 employees say feeling appreciated motivates them to work harder.

Wed, 10 Feb 2016 17:08:00 -0600

With more people shopping online than ever before with the ability to take advantage of the convenience, variety, and value - eCommerce companies are having to work harder - and smarter – to stand out in the online crowd. In 2016 and beyond, SEO will continue to play a critical [...]

Wed, 10 Feb 2016 16:41:00 -0600

McKenzie is a new team leader and is wondering how to step into a new leadership role. What advice would you share with McKenzie?

Wed, 10 Feb 2016 15:30:00 -0600

Twitter’s handling of management and its growing pains are well-documented news that has crushed its stock in recent months. So much buzz may put added pressure on the social media company to calm the waters when it reports earnings after the closing bell on Wednesday. Traders will likely want to hear [...]

Wed, 10 Feb 2016 14:22:00 -0600

I should have known it was coming, especially in a newsroom full of quick-witted journalists. "So, about AdGate..." That's how a staffer began her question during a recent meeting of digital editors. It was a pointed reference to the outcry over an initiative we began in mid-December asking visitors [...]

Wed, 10 Feb 2016 14:00:00 -0600

Jeff Huber Jeff Huber, who helped lead the development of Google’s ad software and its iconic maps application will be the chief executive of Grail, a startup that raised $100 millionlast month tocreate a blood test to detect cancer early, when itis treatable. His reasons are scientific, but also personal. On November [...]

Wed, 10 Feb 2016 14:00:00 -0600

Humana profits fell 30% in last year's fourth quarter with the insurer unable to manage the rising medical costs of newly insured Americans signing up for individual coverage under the Affordable Care Act, leaving its participation on public exchanges in doubt beyond this year. The Louisville-based health insurance company, which is [...]

Wed, 10 Feb 2016 07:53:00 -0600

From the economic point of view there's something rather gloomy about who did win here, Donald Trump and Bernie Sanders. The problem being that both are economic populists and given the manner in which folk economics rather clashes with actual economics this is not a good sign.

Tue, 09 Feb 2016 17:15:00 -0600

Exceptional employees rely on skills that you won’t find in a job description. Dr. Travis Bradberry shows you what sets them apart.

Tue, 09 Feb 2016 15:30:00 -0600

New study reveals what Windows 10 is doing behind your back, and it's shocking...

Tue, 09 Feb 2016 14:00:00 -0600

An interview with Latin music artist Prince Royce.

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Chaldeans Buying Businesses Need to Beware
By Bedre Konja :: Monday, January 28, 2008 :: 13496 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.