Franchising: 5 Top Advantages

Looking to start your own business? If you want to own your own company, but are not sure where to start or how, you may want to consider purchasing a Colorado franchise. Franchises are great, because they offer many advantages to the Denver franchisee, allowing them to operate their own business and gain profits, while providing a format to help direct your Denver business for sale.

If you are thinking that operating a Colorado franchise will be a ready-to-use business, you are mistaken. Although franchise ownership is not a buy-and-fly operation, many franchisees do find that starting and operating a franchised outlet fit their personal tastes much better than trying to start a company from scratch.
Here are some great examples of the most common advantages of operating a franchised business:

1. Instant Recognition: The main benefit of purchasing a franchised business is that it allows you to use your parent company's already-established name to attract a pre-existing customer base. A Denver franchise is basically a license to use an existing company's name, trademarks, products, services, and other resources in return for agreeing to use that company's existing business formats and provide a percentage of your franchise's income and earnings. An established company means established products and services, which appeal to an established market, already waiting to buy your product!

2. Working Operations and Procedures: When you purchase a business format franchise, you gain the privilege of not only being able to sell the parent company's products or services, but also the right to use their established industry practices. These practices may include training programs, marketing strategies, trade secrets, accounting systems, etc. This cuts down drastically any problems you will encounter in trying to establish these systems on your own.

3. Lower Start-Up Costs: Normally, the initial fee of purchasing a Colorado franchise is substantially lower than the cost of setting up an enterprise from the ground up. Combine this with the pre-established operations formats that will be provided for you, mentioned above, and you have saved yourself quite a bit of money and energy.

4. Ongoing Support: While the initial advantages of operating a franchise have been illustrated, one of the most important aspects of having a Denver franchisee is the fact that the parent company will provide you with ongoing support throughout your venture. You will never have to worry about being on your own.

5. Financial Clarification: In addition, most of the financial aspects of running a company will be much more straightforward. The franchiser will be able to provide you with details of both start-up costs and operational costs, taking much of the guess work out of running a business.

Great Business Opportunities: Buy into a Franchise

Starting a business of any kind is exciting. The great thing about a Colorado franchise business or others that are set up similarly is that if the business opportunity provides the proper training and systems, a person with no experience or special ability should be able to acquire the skills needed to succeed. After all, the premise of a successful business model is the ability to duplicate. The last thing you want to worry about is a potential Denver franchise business issue that could affect your income and profit.

You open your business with one goal in mind... and that is to make money, right? Absolutely! Guess what? The absolute number one thing you must keep in mind is that the number one goal of the Franchiser is exactly the same! I know, you are thinking, well, no kidding I already knew that! But, did you really? Do you really know what that means to you? Have you really thought about how their goal of profitability and your goal of profitability are two entirely different goals? You must understand that since these goals are divergent, decisions made by the franchisor are made with only ONE goal in mind - their profitability.

The Colorado Franchiser will say that their success depends on your success. That is only partially true. Sure, they need open units and happy Denver franchisees to expand, but remember, they make their money off your sales - the TOP line. The business issue for you is that driving top line sales does not always translate into bottom line profits for you. For instance, deep discounting of products, while increasing your top line sales, could severely impact your cash flow and your bottom line. Also, adding additional units in your market will increase the top line sales for the Colorado Franchiser, but it could severely impact your sales and profits. In the Franchiser profitability model, two units producing $500,000 each in sales, is better for the Franchiser than your single unit producing $750,000 in sales, even though the decrease in sales impacts the profitability of each unit. This has become a major issue in the Denver franchise community over the years.

There is no reason to be bitter, resentful or angry about it. It is part of the franchise business world. Too many people enter into a franchise or business opportunity and expect everything to be done for them or handed to them. Always remember that it is a Denver business for sale, and your franchiser benefits as much as you do.

While there are great Denver Franchisers out there who truly care about Franchisee success, you must realize that they care about their profitability first. When reviewing opportunities make sure they really do care about YOUR bottom line. Unfortunately, you will never really find out if that is true until you are open and operating your Colorado business for sale. It may even take several years before it becomes an issue. Hopefully, it never does.

That is why the best and most successful direct sales and network marketing entrepreneurs work to ensure the bottom line success of their team. Their level of success is dependent upon assisting and helping each other attain as high a level of success as possible. Done properly, a true network marketing system, with proper support can produce great results, without a lot of the costs and risks associated with the start up of a typical Colorado Springs franchise business. Both models work. Find the one that works best for you.

Colorado Franchising: Utilizing Industry Expos and Conventions

Despite the current fluctuations in our markets and in our society today, the pressing need and desire to invest in Colorado franchises has never been higher. People intend to have an understanding that even when times are tough, that is the greatest time for you to make an investment in to accept the challenge. When it comes to franchises, people feel a bit more secure than investing their money in the stock market, because they get their hands dirty and it's how much effort they put into it that gives them the control. So if you're looking to franchise your business, why not take a look at presenting your opportunities at a Colorado franchise & business opportunities expo?

There are a lot of benefits to joining and then participating in the largest Colorado franchise and business opportunities events in the nation. And don't just set your sights on the United States, because there are many international events you can partake in as well. The first major benefit from attending one of these franchise & business opportunities expos is the pure and simple fact that not only can you present yourself, you're presenting yourself and your opportunities to hundreds and thousands of qualified attendees who want to own a business of their own. And in that reason alone, you're saving yourself if thousands of dollars in time and in searching out potential prospects. Here, you can find the absolute best Denver business for sale. You also run into people who could take your business places perhaps you did not ever think of.

Time is money, and there's nothing more true than when you own a business. Rarely have so many hours in a day, the stock market is only an open for so long, we all may live so many years. Time is what everything revolves around, and at these Colorado franchise & business opportunities expos it is an opportunity for you to really maximize your time. There are over 1000 other companies presenting themselves in promoting their opportunities at these events, and it only happens for one reason. That reason is because it works. If it didn't work and provide fantastic results year after year, people wouldn't be coming back. These expos only draw the most serious people who are willing to make a decision to invest.

And when you partake in a Denver franchise & business opportunities expo, you can also attend seminars, meet people face-to-face, get ideas, expand your horizons, and meet potential of very valuable partners. The advantages are so numerous, and the investment that you make in joining in participating in one of these expos is mind boggling. Take a step in the right direction and look into it today.

Source: Gottlieb Wendehals, ezinearticles.com

Denver Franchising Opportunities

If you are seriously considering going into business for yourself but have limited experience, your best option may be a Colorado franchise business. Franchises are everywhere and they are a wonderful way to duplicate a great business idea without carrying all the cost.

A typical example of a successful franchise is of course the world famous McDonald's chain, although entry level and ongoing costs are enough to scare a lot of people off. From the point of view of the franchisee, a good Denver franchise opportunity can give them a framework upon which to build a successful business. If the business is well marketed there will already be brand awareness that you can capitalize on. It is much smarter in this economy to search for a Denver business for sale, as opposed to attempting a start-up.

Best of all good Colorado franchises will provide tried and proven recipes for success. Product development requirements, and business and marketing strategies are mostly already pre-planned so you should not have to worry about these. It is already done for you. You just have to run an efficient and effective business, providing a quality product and quality service.

It's that easy; but only if you buy into the right Denver franchise opportunity. Unfortunately, there are many franchise operations that are someone's get rich quick dream and they haven't built a viable and known business first.

The first rule of selecting a Colorado Springs franchise business opportunity is to choose one with a track record of success. You want to see steadily increasing profitability due to good management, growing demand for the product or service and excellent service. However, that is not enough on its own. It takes skill, organization and excellent communication skills to transform a successful and well run Denver business for sale into a franchise.

As with most things in life an excellent sense of timing is very helpful. For example, with growing health consciousness, it is probably not a good time to buy into a fatty fast food franchise. However, with people so busy with work and other commitments that they can't find the time to wash your dog, wash the car or clean the house, personal service franchises are booming.

Just wanting to have your own business is not a good enough reason to buy a Colorado franchise or start a business. You need to give it a bit of thought; after all, for the first five years your new business is going to require a lot of love and attention.

Start by asking yourself what you are good at. What do you love to do? If you are not a people person or have very few people skills it is probably best to avoid a customer facing retail franchise. Try to match your personality and abilities with the Denver franchise opportunities available and see if you are compatible. Once you have narrowed down your possibilities to a few of the best ones contact the franchisers and ask for an information package. Read it very carefully.

You need to know what level of advertising and marketing they will commit to, what training they will give you, what help is available, the terms and conditions of the franchise and the business model. Don't take any of this information at face value. Make sure have any agreements checked by a competent expert and don't sign the contracts unless ratified by your legal advisers.

Good Colorado franchise opportunities will have a good reputation and you should be able to discover it by contacting your national franchise business association and possibly by doing an online search. If you are relying on web endorsements do be careful as these can be manipulated. A common internet marketing strategy is to post comments in forums, write blogs and create an 'expert' persona to gain credibility.

The problem is, you don't know what's genuine and what isn't. Always consider looking at your regional franchise association website if you have one, as these can be a great source of advice. Legitimate associations will only present viable franchises for your consideration. They will also usually provide a lot of information that will help you choose a Denver franchise and run it successfully.

A good rule of thumb when it comes to choosing a franchise business opportunity is to choose one that has a history and a good reputation offline. Research every Denver business for sale, to truly know the best franchise to choose.It is also advisable to seek expert guidance before making a committed decision. The internet can facilitate your initial research but it is up to you to do your due diligence and become truly informed about any franchise business you are considering. If you start out right, franchising can make business success easy.

Source: Dave Talbot, ezinearticles.com

Advantages of Franchising in a Recessive Economy

Previously, if one wanted to start his own business, his natural course of action would be to do it on his own, depending largely on his business instincts, limited know-how, and observation of the market. The advent of franchising, however, brought a big change in business. Many have since become rich because of franchising. Franchising has indeed many advantages.

You Own the Business – A franchise is a duplicate of a successful business concept. The Colorado franchisee owns the outlet, therefore, he hires his own employees and oversees the management its day-to-day operations. He has high stakes in the Denver business for sale because his own money is involved.

Ready Market – When one buys a Colorado franchise, he is buying an established concept that has a good record of accomplishment. The franchisee is allowed the use of the company’s trademark and brand name. Because of this, the company is, in effect, giving the Denver franchisee a license to market its products carrying a brand that is already familiar with the consumers. Many popular franchises have instant brand-name recognition and have created a loyal following among consumers. Therefore, the Denver franchisee is getting into a business that already has a ready market.

Continuous Support from Franchiser – Although running his own business, the franchisee can tap the services of the parent company anytime he needs assistance. The services of the head office organization are available to him, too, whenever he needs help. Furthermore, many companies have field operations personnel whom the franchiser can call on to help him deal with any problem he may encounter in the operation of the business. Most Colorado franchises being offered nowadays are turnkey operations. Upon the signing of the franchise agreement and payment of the franchise fee, the franchisee receives the equipment and supplies required in running the business. Furthermore, the franchiser provides assistance in identifying a good business location for the new outlet. The company assists the franchisee in negotiating his lease, preparing plans for outlet layout, shop fitting, and furnishing his store. It also provides assistance in determining the appropriate stock inventory for the opening of the Denver business for sale. This kind of support and the other benefits under the franchise agreement is what sets franchising apart.

Training – The Colorado franchisee is given the necessary training to start his business and eventually run it smoothly. The franchisee as well as his employees are taught all the business systems of the company covering product preparation, quality standards, business controls, recruitment of personnel, and marketing. A good Colorado Springs franchiser will provide training to the franchise staff on a continuous basis.

Lower Capital Requirement - Compared to a non-franchise business, less capital is needed in a franchised business since the experience and tested system of operations of the parent company would already have eliminated the unnecessary expense incurred through trial and error.

Buying Supplies at Lower Costs - The Denver franchisee is able to procure all necessary supplies at lower costs because the prices are negotiated by the company with the suppliers in behalf of all the franchise units. Because of the size and projected regularity of orders, the franchiser is able to get huge discounts. Buying wholesale for the whole network means big savings for the individual franchises. This gives the franchises a big advantage over their competitors because they are able to reduce expenditures on a continuous basis. This procurement set-up is definitely more advantageous to the Colorado franchisee as against procuring supplies independently.

Extensive Promotional Campaigns - A franchise is the beneficiary of an extensive marketing campaign made possible by the sharing of the costs by the franchises. Many franchisees are required to shell out an advertisement royalty to the company as their share in the cost of promotional campaigns of the company, effectively spreading the cost among all the franchises. This accounts for the large marketing resources of the Denver franchiser enabling the company to avail of the services of top-caliber advertising agencies. Being situated in highly visible locations and benefiting from a huge promotions budget is a potent combination that is difficult for competitors to overcome.

Continuous Research and Development Programs - The Company conducts continuous research and development programs so that the business can improve the existing products and develop new ones to offer to the consumers. The marketplace changes rapidly and businesspersons have to keep up with the pace. The chance to seize the opportunity of leading in the market is available for only a very short while. This stiff competition necessitates continuous research and development programs for the company and the franchise network to succeed.

Acquiring the Status of the Company - As a franchise network expands, its stature in business becomes bigger. Mall owners prefer to have popular franchises in their malls because they want to present their shopping centers as a one-stop-shop where everything that customers want can be bought. Therefore, a franchisee will encounter very little difficulty in obtaining a lease in ideal locations. Because a franchisee becomes part of the giant image of the parent company, he will probably find that running a franchised Denver business for sale is not only so much easier than being on your own, it can also be the best decision a franchisee has ever made.

Minimized Business Risks – Because the Denver franchisee is buying a proven business concept, the business risks involved are largely minimized. The parent company has already resolved most, if not all, of the problem areas in its systems and procedures. What the franchisee is getting is a refined package of technical expertise, marketing strategies, and operational systems.

A Unified Set of Quality Standards – All Colorado franchise units are required to maintain a single set of quality standards insofar as product, customer care, and service are concerned. Here, the company will ensure that these standards are strictly adhered to and maintained in all its franchise units so that the whole network presents an image of providing quality products and services.

Benefits for the Franchiser - Franchising is a business concept that benefits the two parties involved. For the Colorado franchiser, franchising is advantageous because rapid growth can be more feasible even with minimum capital expenditures. When franchisees pay the franchiser for the chance to copy a proven business strategy, franchisers receive a steady flow of cash from royalties, which can be used to expand further. Franchising a business can be like hitting two birds by the same stone: a franchise is being paid to expand it. Moreover, because others operate individual retail stores of the business that the franchiser originally established, direct managing responsibilities become the obligation of the franchisee. Hence, the franchiser will have more time in his hands to explore ways to further develop and promote the business.

The only way to develop as quickly is through franchising. Expansion is the only way a company can realize maximum profits. In franchising, there are not many obstacles to stunt the expansion of a company, therefore, there is a big possibility of really expanding the franchise network not only in the country but also even overseas. At present, franchising is the only business concept that can make that possible. Colorado Franchised businesses grow rapidly, sometimes having several outlets in a certain area, pushing the competition out. All these benefits for the Denver franchiser are, in turn, advantageous to the franchisees since the franchises are largely dependent on the success and stature of the parent company. No other business concept can offer such an attractive and beneficial arrangement

Source: Matthew Anderson, ezinearticles.com

Franchise Businesses Sale

Business houses always try to expand their operation through franchises Denver. For that they are always on the lookout for talented and dedicated business entrepreneurs who will take their business forward. Business entrepreneurs always aspire to own and run their own business. That’s the ultimate goal for them. But starting a business can be a hazardous affair if you don’t have adequate knowledge of the nitty-gritty of a business operation. But here is your chance to become a successful business entrepreneur.

If you dream of taking complete control of your business and becoming your own boss, you should begin your own Denver franchise business operation today. You will find various business houses selling franchises to entrepreneurs on the Internet. Franchise brokers are similarly energetic to find devoted business entrepreneurs. You may stumble upon lucrative business franchise opportunities as well. But you have to be careful while choosing the most suitable Colorado franchise offers. Before opting for a specific one, you have to make sure that business is viable enough to prove profitable in the long run. You should also check out the track record of the business to assess how it has been performing. You should avoid all types of fly-by-night franchise businesses.

The business must remain rock-solid irrespective of the market trend. If any Denver business for sale is constantly getting affected by the market fluctuation, its franchise will bear the brunt as well. So it’s in your best interest to steer clear of those dubious franchise business sale offers. Also, while searching for Colorado Springs franchise business offers, you have to make sure that the offers interest you. It’s advisable to stick to the field you are familiar and comfortable with. Going for an unknown franchise venture is laden with risk. There is no harm in going for a business franchise. But, you have to be careful.

(Source: Jennifer Bailey, ezinearticles.com)

Existing Franchise Sales

Opening a Denver franchise is the smartest way to have one’s own business. The person will be in command of the business. Companies often sell their franchises in a bid to expand their business. The Internet is the best place to search for the suitable existing franchise sales offers. Various companies have posted their franchises Denver offers on the web to attract the best business minds. Franchise brokers have jumped on the bandwagon as well. Both the brokers and the companies offer lucrative franchise offers. However, as a business entrepreneur, you should avoid falling into any traps.

You should always carry out extensive research on the Colorado Springs franchise offers. You will also have to collect all the relevant information on the company to assess its viability. Any shoddy business deal should be avoided. If the company offering a franchise is not capable of surviving market fluctuations, you should take that into consideration. Colorado franchise holders are all set to suffer if the company can’t weather marketing trends. The Internet has opened up an exquisite world of varied franchise offers. But it’s always safe to check out the offers thoroughly, so as to avoid any misunderstanding. The franchise offers available now are often quite attractive. However, you need to understand the terms and conditions properly. For that, you can always consult any experienced attorney or franchise expert. They can guide you to choose the most suitable franchise opportunity.

Franchise companies are always on the lookout for the best business entrepreneurs so that they can develop their Denver business for sale. Being associated with any established company will always give you a stronger platform to flourish as a successful business entrepreneur. That’s why business enthusiasts always go for the companies that have a strong financial base and proven track record. Wise franchise decisions can help you climb up the ladder of success faster.

(Source: Jennifer Bailey, ezinearticles.com)

Finding a Trade Show Franchise Sale

The 21st century, in its first decade, is looking like it will be the century of the Colorado franchise. It’s impossible to drive to any of the thousands of shopping centers and malls anywhere in the world, or down the main thoroughfares of any major suburban areas, and not pass franchise after franchise, ranging from restaurants, to dollar stores, to cellular providers, to fitness centers.

A huge number of people both recognize and patronize the Colorado Springs franchise giants. But not nearly as many realize that there are hundreds, if not thousands, of other franchises offering marketable products or services without commanding huge franchising fees. It is the relative anonymity of these franchises, in fact, which makes them ideal opportunities for someone who understands the ins and outs of the franchising Denver business for sale.

A franchise sale is one way the franchising company has of helping sway those who are still on the fence to commit to starting their own franchise. Smaller franchisors are always on the lookout for prospective clients, and will use every means possible to generate a franchise sale.

The Franchise Trade Show

The Internet has opened up the Denver franchise market to millions of people who would otherwise have had no idea how to enter it. There are even estimates that seven out of ten franchise sales leads come from the Internet, with direct mail, word-of-mouth, and print ads accounting for the rest. But many small franchisors still rely on the tried-and-true expos and trade fairs for each franchise sale.

The most important franchises Denver show is the International Franchise Expo, and unlike industry trade shows, it is designed strictly to bring together a franchisor and prospective franchisee in the hope of generating a franchise sale. Most of them are held on weekends, and one way in which a franchisor can increases its chances of making a franchise sale is to stay in the area for a couple of days after the trade show.

Following Up And Making The Deal

To accelerate the franchise sale process, franchisors may arrange follow-up seminars to their most promising sales prospects. Some of them will even offer discounted franchise sale prices as a way to seal the deal before they leave the area.

By allowing buyers a chance to get in the door at a lower than normal cost, the franchisors are giving the investors the chance to get their franchises on a paying basis much more quickly than would otherwise be the case, and that can often be the deal-maker.

(Source: Wade Robbins, ezinearticles.com)

Franchise Sales

How do all of these Denver franchise organizations manage their Colorado Springs franchise sales process? It is remarkable how many franchise systems out there, in the United States a new franchise is opened every 8 minutes of each business day, that is an amazing rate of growth! So franchising works, I get it. How do you find franchisees once you have gone through this process of franchising a business though?

When evaluating franchise sales, it is critical to first identify who the franchise buyer is and who we are working to sell the franchises to. Franchise sales encompass a large array of different types of franchise offerings. The traditional franchise is the owner operator model where typically a moderately well capitalized individual buys into the rights to run and manage a single location of the franchise offering. This franchise sales approach is most effective when using a sales presentation that evokes an emotional response. For example, "Be in charge of your own financial future, become the captain of your OWN ship!" Presenting the Colorado franchise to the buyer is not about the financial details, the minutia of the business offering or other particulars, it becomes an emotional decision for the buyer to get into business on their own with your help. Franchise sales is about creating that emotional connection with the buyer, similar to the process of selling a home, the buyer falls in love with the idea and the notion that they will be in that house, neighborhood, they picture their family being raised in that home and envision the future they will have there. The individual franchise buyer is typically not a former executive or highly educated individual with millions to invest, it typically is just someone who wants to get into business for themselves and they know they need someone's help doing it.

The franchise sales process is typically a 30-120 day process with a potential candidate, some take much longer. The evaluation process takes place on both sides, the buyer judging whether the franchisor has the support, training and overall package to truly support them and the franchise sales person gauging whether the franchise buyer has the capital, experience and wherewithal to be a franchisee.

The second type of franchise sales is to sell to a multi-unit franchises Denver owner. This franchise offering is someone who has much more capital and experience. In this franchise sale, the buyer purchases the franchise rights to a much larger territory with a larger responsibility. They then are put on a performance schedule by the franchisor who establishes how many units the multi unit franchisee will be opening. This franchise sale is a different sale than the individual franchise. This buyer is highly sophisticated and has most likely been in franchise development before. They look over the financials and make an investment decision based on the ROI and how quickly they will see a return on the investment. In order to make this franchise sale the franchise system probably needs to be somewhat mature and have a really professional package to offer the franchisee, they are typically being courted by many franchise systems. The offering needs to make sense, in many cases the only realistic way to attract this buyer is to present earnings claims and business plans, these people are making an investment when they buy into the Colorado Springs franchise, not buying into a lifestyle.

When approaching the process of franchise sales, it is critical to have people, consultants and a system in place. The first step is planning out the stages and carefully preparing for how to manage the influx of leads and responsibilities that come with franchise sales. The beauty and excitement of franchising is that with each franchise sale a company is expanded into a new market, the franchisor gains the valuable work ethic and commitment of a vested owner operator and the franchisee gets the training and support needed for them to become their own business owner.

(Source: Christopher Conner, ezinearticles.com)

Succeed With an Established Business For Sale

There are many compelling reasons to buy an existing Denver business for sale rather than starting one from scratch. Existing businesses for sale can be a much less risky investment compared to new start-up ventures. Consider that building a brand new Denver business for sale from the ground up can be a very time consuming process. Even though new business owners put all their energy into generating revenue, perfecting their operation and sorting out the kinks of their enterprise, many start-up businesses don't succeed.

Anyone considering going into business for themselves at least consider existing businesses for sale, rather than building a new company from scratch. When purchasing a business through a business broker, entrepreneurs can step into a fully or partially established organization with an operating history and clientele. The flip side to this is that business owners that are looking to sell their businesses can profit from the track record of their businesses for sale and generate a premium on the selling price.

There are many advantages to purchasing an already established Denver business for sale compared to starting a brand new company. People purchasing existing businesses from owners benefit from the company's history and goodwill. The firm's previous relationships with vendors and employees are already established, for instance. With existing suppliers providing merchandise, existing customers purchasing products and services and trained employees handling the day to day operations of the business, new owners are able to focus on improving the company's operations and generating profit. One of the most important things a buyer needs to consider is whether the business for sale has a solid operating history and will be able to maintain profitability after the transaction is completed. Although existing businesses for sale may be less risky than start ups, please do your due diligence on any business for sale. Consult with your lawyer, accountant or business broker for assistance.

Many people hesitate to purchase a Denver business for sale because they are not quite convinced that it is the right move. Passion is a key ingredient to building a successful venture and all potential business buyers need to assess whether they are passionate about the businesses for sale they are considering. After buyers consider their interests and skill, they will go into purchasing businesses for sale more informed and more likely to succeed. Businesses are bought and sold all the time where the purchasers go in without doing a personal assessment. It's much better to know what you're getting into before the deal closes. Starting a brand new venture can be a daunting process. To make it easier, you consider existing businesses for sale (franchises Denver for sale are something to consider also). Unlike starting an enterprise from scratch, buyers are able to build up a business that already has an established foundation. This lightens the workload and improves the likelihood of success!

(Source: Peter S. Watson, ezinearticles.com)

Identifying the Right Franchise For Sale

If you are tired of your thankless, boring job, want to get out of the rut and dream of leading a swanky lifestyle, then running a franchise under a profitable and reputed franchisor could be the right, and the easiest, option for you. And many business entrepreneurs are doing it too, since surveys show that more than 40% of business around the world is franchise run. However, while some franchises can become huge successes, others bomb big time. So, how do you make out which franchise for sale , is the right one for you?

Niche: As you know, businesses all over the world are competing fiercely with each other for a bigger piece of customer pie. That being the case, you need to choose a business that can stand up to the competition offered by rivals. A product that runs on its own steam can save advertisement costs and bring in customers automatically.

Protected territories: What happens if the same franchisor opens another outlet selling the same thing that you sell, across the street from you? Even a reputed and successful business that does not protect its franchisees by ensuring protected territories for each is not worth considering. That said, it is important to understand that having a protected territory dos not have anything to do with distance. It means that a franchisee must have a tested formula for deciding on successful demarcation between areas. For instance, you could always have a Macdonald's outlet at a reasonable distance, particularly if each is housed in a shopping complex of its own. But in case of a small business franchise based on service, large territories are a must.

Selection: Before you buy the franchise on sale, always check out all your options. Some people buy on recommendations from friends and family, others go through yellow pages. These days, you can find independent online directories specializing in providing information regarding franchises on sale. You may post your requirements on these websites, or you may browse through their searchable database to identify the right franchise. Such websites have a number of helpful online tools that make it easy for you to manage listings, feature online ads and appear in search engine listings.

Assistance: Franchises fail in the first few years of business because of their inability to find the right direction. Choose a company that wants you to excel. Many reputed companies give you excellent training programs that let you in on their trade secrets and business strategies. They also make you aware of the most common mistakes made by businesses, so you can easily learn from the trials and errors of other people. So, check out the company's training program. How extensive is it, does it involve on-location training classes, do they follow up with other training programs and so on.

Many franchises for sale may appear attractive at first sight, and there may be people you know who are running such concerns in a very successful manner. But, they are not you and the opportunities they select need not be the right ones for you. Select a franchisee that has as much interest in your success as you do, has good chances of succeeding in your area and coincides with your interests. That way, success will come to you automatically!

7 Steps To Franchise Your Business

Do you ever think that your particular business has become too successful? Of course not, anyone who is successful in business desires nothing less than success out of their business. But there are times when the business of doing business becomes overwhelming because the demand for services and products has exceeded the ability of a local business to provide for an ever-growing customer base. Perhaps it's time to consider franchising. Franchising your business is a great way to continue in the success and growth of your particular business beyond your personal capability to oversee and run that business. If you have people asking if your business is for sale, or if you provide franchise opportunities, then it's definitely time to consider whether or not franchising is the right move for your business. If so, here are the steps that are necessary to make sure that you franchise in the right way.

Step 1 - Branding

Your franchise needs to be branded. When people look at a business for sale, the biggest draw to buying into a franchise rather than starting a new business is the value that comes from recognizable branding. If you have a good logo, quality name, and reliable service that is associated with your brand and your product, then not only will customers buy it, but franchisees will buy it, too. Spend the time and money it takes to brand your business well so that it will recognizable and desirable.

Step 2 - System

When someone looks for a franchise opportunity, usually they desire to own their own business but are looking for a business plan or model that is proven to work. When deciding to franchise it is imperative that you develop the system that franchisees will follow. This is important for two reasons, the first is that you want your future franchise owners to succeed for themselves and you want them to appreciate being a part of your franchise. The second reason is that you want to make sure that your franchise owners are not giving your business a bad name. By providing a system that represents you and your business well, you allow everyone involved in your business opportunity to provide a unified business model that customers will appreciate.

Step 3 - The Support Service

Franchise investors are looking for business for sale because they want assistance. If they had it all figured out for themselves they would be running their own business, not looking for a franchise for sale. It is critical that just as you work to maintain customer service and support with your customers that you develop and maintain service and support with future franchise owners. The number one priority for most franchisees is that the franchiser provides extensive training on how to run the franchise and ongoing support throughout the course of the business to ensure them that they will not be left alone.

Step 4 - The Financial Arrangements

You want your franchise to be a good value. Something that people will want to invest in and feel like they are going to profit from being a part of your business. You also want to make it clear that your business is to be taken seriously, and there is an element of personal investment and risk involved in not putting everything you have into running a franchise. It's important to understand the agreement you will have between franchise owners, what costs you will charge, what percentage of profits or fees will be paid to you to maintain service, support, supply, etc.

Step 5 - Recruiting Franchisees

So you've decided to franchise? That's not going to mean much if there is no one that wants to purchase a franchise from you. Franchising is a whole new level of sales and marketing. There are a variety of websites that provide matching services and lead generation for franchisers. Decide what fees you are willing to pay, what costs you can dedicate to advertising and recruiting and find a way to promote your business. You now have two things to sell, the product or service you provide to your customers, and the business as a profitable venture for your franchisees.

Step 6 - Becoming a Franchiser

Now that you are ready to actually franchise there are a few more steps to take. Seek expert advice from the British Franchise Association. It's invaluable in providing a wealth of unbiased step-by-step information for potential franchisers. Research the market to ensure that products and services are competitive, valuable, and desired in multiple areas. Test the franchise in the form of a pilot operation lasting at least 12 months or longer. The pilot scheme should be undertaken at more than one location in order to test the concept in differing geographical and economical areas. Establish a central management core. This will probably mean turning over your original business to competent successors so that you can focus on managing your operation as a whole. Finally, develop marketing, sales, and advertising strategies to promote the franchise network.

Step 7 - Join the BFA

Once you are a franchiser, join the British Franchise Association. The benefits of membership are many including: Publish recognition and credibility, increased public awareness of member franchises through BFA pr and publications, inclusion on the BFA website, national and regional forums and training, assistance with international development of member franchise networks and much more.

If you have understood the value of becoming a franchise operation, it means that you understand the importance of networks and business coming together and sharing information and helpful tactics. The BFA is a great association that provides many small business owners with ways to become large franchise providers. Not only will you experience growth and success as a franchise owner and operator, but you are also providing countless others through your franchise the chance to fulfill their dreams of becoming small business owners themselves.

How To Sell A Franchise Business

As a business broker and franchise sales consultant I am often asked what the general process is to sell a franchise business. It's a valid and important question because at some point the vast majority of franchise owners will want to sell their business for a variety reasons including retirement, relocation, divorce, owner burn out, etc. Here are some general tips and suggestions below that all franchisees should keep in mind before putting their franchise business up for sale and will hopefully make the sales process unfold much smoother.

Contact the Franchisor

It's important to let your franchisor know that you are considering selling for a number of reasons. Most franchisor's have explicit rules (read your franchise agreement) regarding the transfer of franchise unit to new ownership including buyer qualifications, disclosures, transfer fees, etc. Most franchisor's can also be very helpful in the consummation of the re sale and may even have a prospective buyer on file who has expressed an interest in your specific location or territory.

Sale Preparation

Before moving forward with a listing it is imperative that franchise owners invest the time to prepare and provide sufficient information for a comprehensive listing package that should include a business summary profile, equipment & asset list, and most importantly current and past financial statements. Most prospective buyers will not move forward with a business purchase unless they and their advisors have been provided adequate financial information to verify the business is a good investment. I would strongly recommend that you consult with your accountant or book keeper to help prepare your business records to help validate and support your asking price.

As far as developing a business profile, most professional Business Brokers are very good at helping business owners at organizing and preparing a professional business profile which can be an instrumental tool in the sales process. A professional and thorough profile can also be invaluable in ultimately saving time for both the Seller and Buyer.

Pricing Your Franchise to Sell

Industry sales statistics indicate that the #1 reason why most small businesses and franchises don't sell is because they are overpriced. It's very important for business owners/sellers to establish a realistic and credible asking price for their business that can be supported on a number of levels, including financial history and market comparables. You should consult with your franchise company or other franchise owners in your system about recent re sales in the market to give you an idea where the market is.

You may also want to find and consult with a local Business Broker in your area about demand and supportable pricing guidelines for your type of franchise business. It's also important in most cases to offer terms to the prospective buyer because the majority of small business acquisition deals will not be acceptable for bank or SBA financing.

Confidentiality

Unlike the sale of assets like real estate, maintaining the confidentiality of a small business sale can be very important to the owner/operator for a number of reasons. It's not unusual for employees, customers, and even vendors to become very concerned (or worse) if they become aware that the business for sale. Competitors may also use the knowledge of the business being on the market to gain potential unwanted and untimely advantages.

The best way to maintain the confidentiality of a sale is to hire a professional business broker or intermediary that has experience in confidentially marketing businesses and franchises for sale. This includes providing services such as screening, qualifying, and requiring prospective buyers to sign a non-disclosure agreement before releasing any confidential information.

Marketing & Advertising Your Franchise For Sale

Franchise owners today have a number of options when deciding how they would like to market and advertise their franchise business for sale. This includes going the "for sale by owner" route which has advantages and disadvantages. The biggest disadvantage being the potential loss of confidentiality and the possible negative effects it may have on the business and its chances of selling. The biggest advantage of a "for sale by owner" transaction is the owner obviously is not responsible for paying a commission to a Business or franchise Broker.

The most common option franchise owners choose when selling a franchise is to hire a professional business or franchise broker to handle the sale. Most brokers are only paid a commission after the sale is completed, so there is usually no up front expenses. They are also familiar with their local market and buyer demands, and can help maintain confidentiality as well as prepare and price a business for sale so that it has a good chance of attracting a qualified buyer.

As far as advertising, most brokers also employ a number of local and national "business for sale" web sites that can give a listing maximum & confidential exposure to prospective buyers. They also commonly work (or co-broke) with other professional brokers in their area that might have a prospective buyer for your business.

Preparing Your Business For Sale

In an ideal world, business owners should plan for the sale of their business from day one and go through a process of grooming it to achieve optimum value. This means refining the operation so it produces maximum profits, and structuring the business in a way that ownership can be transferred with minimum impact on ongoing operations and profitability. Business owners can adjust costs, increase sales and margins as well as restructure and review other variables in preparation for sale. The timing of putting the business for sale should be planned for when the company is running at peak efficiency with a solid record of profits that are trending upwards.

Get the Records Straight

Some business owners are very diligent at keeping detailed, up-to-date accounts and records relating to contracts, customers, staff, leases, asset ownership etc. Smaller businesses run in a more entrepreneurial style may not be quite so organized. The first step in preparing your business for sale is to get the books up to date so there is a clear picture of your operation, with supporting facts and projections. In addition to your actual accounts, ask your accountant to prepare a set of normalised accounts to show maximum operating profits. This means adding back any expenses or purchases (sometimes personal) not directly related to the operation of your business. An explanation of any such corrections is often required and you should be prepared to discuss this openly.

Eliminate the Perks

You will need to review how unreported cash sales (if any) are managed and any personal items that are paid for by the company such as travel or entertainment. Unravelling personal expenditure from that of the business can make a big difference to the selling price. For example, a $20,000 trip paid for by the company is essentially $20,000 off the bottom line, and could reduce the sale price by four or five times that amount. Review leased and financed assets to see whether they are better converted into fully owned assets.

Review Accounting Policies

Accounting policies vary widely. In some cases, business owners discover that their accounting policies are not the same as those currently adopted by others in their industry. Some accounting policies are tax driven resulting in conservative profit recognition, whereas others are earnings driven, seeking to maximise profit. Changing your accountancy policies to conform to those of your industry may increase the market value of your business.

Are you Critical to the Business?

A business is more attractive if its success is not solely dependent on the input of the owner in terms of operational know-how, technical skill or personal relationships with clients or suppliers. It is helpful to have a reliable management team to demonstrate that the business will continue to be successful once the owner has left. Most buyers expect the seller to continue working in the business for a period of two to four weeks. Others prefer a longer period, which can be negotiated and included in the Sale and Purchase Agreement. This sometimes occurs when an owner is a critical part of the business. In some cases, a business owner may wish to stay involved in the business indefinitely.

Should you Invest in your Business Prior to Sale?

When looking at a business, buyers will consider the level of debt and quality of assets, particularly in manufacturing operations. Generally the sensible advice is to continue investing in the business as if you were going to keep running it yourself. Link brokers can provide advice in these and other aspects as part of a structured programme covering both grooming and marketing of the business.

Will you Offer Finance?

It is not uncommon for a business owner to be asked to leave finance in the business. This can be a good way of helping achieve maximum value for the seller. It gives the purchaser additional confidence in the business, knowing that you will continue to have an interest in maintaining its success.

THINGS YOU WILL NEED

• Profit and loss accounts for two to four years
• A schedule of abnormal and/or non-recurring costs in the accounts
• A schedule of all items of personal expenditure and drawings
• Brochures or marketing information of your product(s) or service(s)
• Historical background on the business
• Schedule of plant, equipment and any equipment leases
• Copy of franchise agreement (if applicable)
• GST Returns for current trading year to date
• Stock value estimate within 10-15%
• Lease details including rent, term, renewals, outgoings, etc
• Staff levels, including part-timers and contractors
• Staff employment contracts including EPP clauses
• Details on any trademarks, patents, licenses, agencies or intellectual property (IP)
• Details of any major strengths and/or commercial advantages
• Competitor analysis
• SWOT analysis
• Business organizational chart
• Business plan

The financial information must be current and accurate. If you are selling half way through the year, ask your accountant to prepare half-year accounts.

What is the Best Business For Sale?

5 Reasons why you should consider Franchise Business Opportunities

In the current economic times, there are plenty of businesses for sale. So why look at franchise business opportunities when there are plenty of established small businesses for sale?

Counter the skills shortage with Systems

The best franchise businesses are set up with systems in mind. Systems enable a good business to be replicated over and over. One of the benefits of this is all the critical paths in a business are mapped out. Having business processes that are easy to follow enables you to hire team members for attitude, rather than past skills and employ less experienced people at a lower cost to the business.

Support

When you see a business for sale, check what expertise will be leaving that business when it is sold. In a non franchised business if you want support, you might be fortunate to have some experienced employees who will stay with the business and share their knowledge with you, otherwise you need to set up a board of directors, get a mentor, and turn to suppliers who are experts in their fields.

The better franchise business opportunities allow you to tap into a network of support from the outset. Support staff and area managers will likely mentor you, there are experts in operations, training and marketing at the support office, suppliers have already been tried and tested and you could touch base with them to get their expertise as well.

Then there are fellow franchisees who have been there and done it, either through formal monthly meetings or just picking up the phone the best franchise systems have a network of franchisees who can turn to each other for support, and in some instances run each others businesses while they take a holiday.

Brand

Many businesses for sale have an established customer base. While new franchise business opportunities lack this pool of customers, if the brand is strong it will allow you to pick up business and momentum a lot faster. Fast forward a few years with collective brand strength you will be able to grow further should you choose. Later on, when its your business for sale, you will attract more interest in it because people have confidence in a well known quantity and a strong brand can add dollars onto the valuation of your business.

Proven financial model

An existing business for sale will have it's Profit and Loss statement- but depending on how well records are kept will gross margins for each product and labour input for each product be recorded? Possibly not. Good franchise business opportunities have the business model clearly mapped out, and how to get the most out of a franchise opportunity.

Financial reward

A critical part of assessing different business opportunities is considering what return on investment you want from the business. Treat the business like you would any other asset like a house, shares or cash deposit and project what it will return you in the future in terms of profit, your personal salary, and sale price.

For a non-franchised business for sale the line between personal salary and profit can be a bit blurry depending on the accounting method of the existing owners, with franchise business opportunities you can always ask to see average returns on investment and average salaries drawn from the business, to determine where your money is going to work harder and give you a greater return.

How to Handle Small Business For Sale

When handling a small business for sale, as seller should work on understanding the needs of a buyer and learn how to make that buyer a prospect. This process is called the buyer behavior study, through this; the buyer can be approached and analyzed from differed angles and under different circumstances.

Know facts - what are the things that motivate the buyer, why does he shift interest from one shop to another or from one brand to the other, how does he react to new products introduced to the market or delivered to him? Such questions are essential in knowing the things that interest the buyer. And through the information gathered here, a seller would create and product and promotion strategies.

However, it should also be understood that there is no real defined and tested theory of buyer behavior. Some ideas came from economics, psychology and other theories on social sciences. Many business firms and companies are continually researching on the buyer behavior to increase the possibly of sales with buyers. Yet, any seller would agree that buyers really are some kind of riddles. Despite efforts on selling even small business for sale, one cannot guarantee that a buyer who has first taken interest on it would push through the sale.

Buyers have innumerable desires and needs; all these also vary according to their security and aesthetic needs. And buyers have their own incorruptible way of meeting their needs and desires, just as long as it is within his or her means. If a buyer thinks that what a seller is offering is way far beyond his reach, a sale is then impossible to realize.

Small Business For Sale

When talking about a small business for sale, it is very important to understand the buyer and to create a customer through this understanding. This is called a buyer behavior study. The time and effort spent on this relatively new discipline have been of enormous magnitude. And every buyer-study has unfolded some new dimension of this discipline. The subject has been approached and analyzed from different angles and under different premises.

What motivates the buyer? What induces him to buy? Why does he buy a specific brand from a particular shop? Why does he shift his preferences from one shop to another or from one brand to another? How does he react to a new product introduced in the market or a piece of information addressed to him? What are the stages he travels through before he makes the decision to buy? These are some of the questions that are of perennial interest. It is around these questions that the product and promotion strategies ultimately revolve.

It needs to be emphasized at the very outset that there is no unified, well-defined, tested and universally established theory of buyer behavior. What we have today are certain ideas on buyer behavior. Some of these ideas have taken their cue from economics, others from psychology, and yet others have drawn cues from several of the social sciences simultaneously. Business firms and professional researchers have studied the subject extensively, contributing a large assortment of information on buyer behavior. However, a universally accepted theory of the subject has yet to emerge.

The buyer is a riddle. He is a highly complex entity. His needs and desires are innumerable, and they vary from security needs to aesthetic needs. These needs and desires are often at different stages of emergence and actualization. Some are latent, some manifest, and others highly dominant. The buyer has his own ways and means of meeting these needs. Some of these needs are within his means; he can easily meet them. Some others may be beyond realization.

Businesses For Sale

Defining one’s business accurately is the real starting point when talking about businesses for sale. It is the prime requisite for selecting the right opportunities and for steering the corporation in the right direction. To make sense out of the multifarious changes taking place in the environment, to understand what is a possible benefit and what could be a hidden threat, a corporation must first understand what business it is in. It must know what its aspirations are, where exactly it would like to reach and what it would like itself to be in the future.

Proper definition of the business does bring several benefits to the firm. It reveals to the firm many relevant functions about its functioning which it may not be aware of otherwise; many closed assumptions get tested. It brings to the fore the weaknesses, if any, in the very conceptualization of the business by the firm. It also highlights the errors in judgement that might have already taken place on any of these aspects. Most importantly, the exercise invariably brings the purpose and objectives of the business into a clearer focus.

Defining one’s business has become an exacting exercise today because of the fast changes taking place in the realms of technology, products and customer preference. When product-market boundaries get extended, when different product categories of yesteryears blend and merge and when new and substitute products keep invading the market, altering the existing business boundaries, understanding and defining one’s business becomes difficult.

In other words, as business boundaries are becoming highly volatile, unless one is careful, one may err in identifying the nature and boundaries of one’s business. The more narrowly a corporation defines and perceives its business, the larger are the probabilities of its running into loss. When the definition of the business is narrow, quite naturally, the assessment about the competition will be narrow, and the vision of the likely changes that will invade the business and of new opportunities that will spring up in the business will also be narrow.

Business For Sale - Owner Selling Business

Once it is decided to sell a business, getting most money out of it remains the ultimate aim. It is done in two different ways. Either an intermediary is involved in the business deal or owner himself deals in the business. If owner himself is ready to take on the business he needs some business intellect to make the deal better for him. In this connection it is important to keep an eye upon how to obtain best price, recognizing best paying potential buyer, keeping the deal in confidence and making the deal most profitable without showing the actual profit.

Freedom to choose the option of selling the business with a mediator is not a bad idea. But selling a business involves a dynamics of sale which an owner needs to understand. The selling business dynamics without an intermediary goes step by step. In the first step determining the business worth in monetary terms followed by the efforts to maximize the value of the business are most essential things. Again making a profile of the business showing its worth and convincing the prospective buyers about the efficiency and importance of business is also a deciding factor for a better deal.

All these steps coupled with some techniques applied by an owner may be a unique selling point for the business. These techniques involve identifying the right time to sell at the right price and making delay in selling in order to raise the price. In addition to it the owner of the business has to understand some basic principles of selling business system. It is based on the fact that a business may be worth for one buyer but worthless for others. But an owner has to identify and avoid this situation. Different buyers are ready to pay different prices. In this condition applying the tricks regarding evaluation of the business, giving motivation to the buyer and gaining idea about what turn a buyer off put a buyer in a strong bargaining situation.

An owner has some other responsibilities too. It is related to the documentation of the financial details of the business. A buyer always asks to show the tax returns of the business. Therefore tax return files should be in updated state. Prior calculation of the sum an owner will receive after paying the taxes should be made clear. In any case the details of the business deal should be comprehensive enough for both the buyer and the selling owner to make the deal easier and smooth safe.

Franchise Business For Sale

Looking for the right franchise business? Check out the franchise business opportunities list available online for those currently on sale. You may also post the franchise business you are selling.

The Internet abounds with different franchise business opportunities, and search engines and websites can help you get connected with the companies you are interested in. They also offer free consulting services, especially for those who haven?t decided yet on the kind of business venture to get into.

Most of these online consultants provide interested parties with help in crafting feasibility studies. They also explain the more technical side of buying a franchise.

But before going ahead with the purchase, make sure you have studied the business well. For one, make sure the business follows the guidelines of the Federal Trade Commission on franchise and business opportunity. The rule requires the sellers to provide prospective buyers with a detailed disclosure document. From the disclosure documents, you will get information about the other franchisees. This will help you get direct feedback about the feasibility of getting into a franchise. These documents must also contain a financial statement fully audited by a third-party auditing firm and must also articulate the agreements or requirements of the business to its franchisee, such as the terms and conditions and the legal responsibilities of both parties to each other.

Get the full details before deciding to go ahead with the deal. Request a thorough presentation from the business. Ask extensive questions about how much capital you need up front and what other fees you will need to pay.

There may be instances when a business will refuse to provide you with a disclosure document upon demand. Some businesses are not required to have a public disclosure document, but you should still insist on seeing one. You may also ask the assistance of the Federal Trade Commission on such matters. You may reach their help desk through their toll-free hotline: 1-877-382-4357.

What is a Turnkey Business For Sale?

Many people assume that a turnkey business for sale is more expensive than building one from the start, but this is not the case. Yes, you have more control over the decisions if you start your own, but inevitably, the bottom line ends up being more expensive when someone attempts to start a business on their own. Not only is it cheaper to purchase a turnkey business for sale, but the identity and branding have also been well established.

Another aspect overlooked by many seeking out an internet business for sale is the organizational aspect. With a turnkey business, everything has been tested and proven. Mistakes have been made already and the processes have been adjusted to correct the issues. A turnkey business for sale is well organized and under control which in the end creates consistency, better quality and, in the end, much happy customers (who will be more likely to return).

Owning a turnkey business for sale also saves a ton of money when it comes to commuting and having to confinement of working a 9-5. You can work from your own home and there usually isn't much time needed for growth. In a conventional storefront business, it usually takes two years before turning out a profit, whereas with an internet business for sale, you could see a profit in less than 24 hours!

A turnkey business offers opportunities that a conventional storefront wouldn't be able to. One aspect is that of advertising. In a turnkey business for sale, not only will the corporate affiliate help with advertising but the effectiveness is much higher, while the cost is lower. It is a win-win system when it comes to advertising. You will see greater results with the ability to market to a specific group, instead of mass marketing.

If you are looking for a simple solution to starting your own business the best option for low start up costs and fast profit is purchasing a turnkey business for sale.

What to Expect With Business Brokers

Most business owners are not perfectly clear about what it is business brokers do for them when selling a business and the same applies when buying a business.

Business brokers play a crucial role when buying or selling a business and they are will assist you prepare the business sale. They will supply you with a list of things to complete before advertising your business for sale such as making sure all of your financials are up to date and ready to present to a potential buyer. Not having your financials ready will signal to the buyer that you are unprepared and this will almost certainly scare the buyer away.

Most brokers are also qualified in business valuations. Over pricing your business would see it generate very little leads ultimately leading to a no sale. Under pricing your business would obviously see you lose money, which is something you should try to avoid. Once the broker has determined an estimated selling price it is always recommend that seek a second opinion with your business accountant or lawyer.

While keeping your business sale confidential, your broker will now actively market your business for sale via local newspapers, shop front windows and their customer database. A more effective method these days is to advertise your business via a business for sale website or their own business website. Advertising online will reach a much wider audience and can be targeted directly to a specific market, eliminating time wasters and tyre kickers resulting in a faster sale. Once the broker starts to get interested parties, he will then make sure they qualify to your specific needs before officially introducing them to you and your business. Your broker will use due diligence at this point.

If an offer is made the broker must relay this to the owner, even if the offer is way off the asking price, which is a normal practice to get the ball rolling. Once an agreed price has been met, the broker will make the buyer leave a deposit to lock it in with a settlement period. He will make sure the transition from the old owner to the new owner is a smooth one. At this point when moneys are exchange your agreed agent fees (commissions) will be automatically deducted from the sale price.

Selling a business usually takes a little longer than selling a property because to sell a business you are trying to capture a targeted market. The potential business owner may need a set of skills to own and operate a business limiting your buyers. When buying a property this is not required.

If you are a business buyer looking for your dream business, then a business broker will also offer you many advantages during your search. Using industry knowledge they will source out quality businesses for sale offering you a range of business options according to your industry and budget. As a business buyer you are not required to pay agent fees or commissions as these fees are to be honored by the business owner.

How To Prepare Your Business For Sale

Selling a business is not easy, and calls for sound decision-making. The stakes are high, and there is a risk of financial loss as well if you cannot recover what you invested in it originally. This article discusses how to go about preparing your business for sale.

Sale of Business: Preparation

When preparing your business for sale, keep the following in mind:

• Selling your business is risky, so start the preparations at least one year in advance. You have to tie up all loose ends, make proper inventory of assets before you sell.

• Go through audits and financial statements to chart growth. Ensure the financial records are up to date.

• Formalize records and document all business dealings for the convenience of buyers. This will also help avoid confusion when the new management takes over.

• Don’t keep any pending accounts of a customer open; tie up all loose ends before handing over the company.

• Take care of the contract details with suppliers and franchisees. This will eliminate problems for the new management.

• Get a proper handbook of company rules and guidelines printed. Unwritten rules are hard to follow.

• Review leases and real estate deals. You do not want the location to affect the sale of your business. If the location can be a hindrance to sale, then consider moving to a better location before selling.

• Take care of the equipment leases and return equipment once lease period is over.

• Make an inventory of all the company assets, moveable as well as immoveable.

• Upgrade and modernize software and computer systems. The best software should be installed before you make a sale.

• Sell real estate separate from other company assets. Real estate attached to other assets makes the company unwieldy when its time to sell.

• Ensure that employees’ interests are taken care of. Try to retain the good employees during the merger process. If you have to cut down on the number of employees, ensure they still have goodwill for the company.

• Have an expert negotiator by your side well before you start negotiating a deal with the other party.

By taking care of your employees’ interests, and looking out for the new management when selling the business, you will earn a lot of goodwill. You should also put your records in order before selling. By following the guidelines given above, you will be able to avoid the pitfalls of bad business deals.