Spring is here and soon you will see green everywhere you look—blooming trees, new grass, and for most people tax returns! However, if you are a business owner tax season looks a little different for you. Although you will not be eagerly anticipating seeing any green returned to you this season, you will still want to keep your eye on your green, especially if you are looking to sell your business. This spring, take the right steps toward getting your records in order. In specific your tax returns!
ASK YOURSELF THESE IMPORTANT QUESTIONS WHEN LOOKING TO BUY OR SELL A BUSINESS:
After months on the market, you are no closer to a business deal than the day you listed your business for sale. Prospective buyers have come and gone and still no sale. You may be downright stumped wondering why your business hasn't sold. Here are four reasons why your business may still be on the market.
You're a business owner and you've made the decision that you are ready to sell. You've successfully manage and marketed your business for years. You know your customers, products, suppliers and employees. You feel confident in your abilities, but does that qualify you to sell your business yourself or should you consider hiring someone to sell it for you? And, if you do, who?
You may have many questions and concerns regarding selling your business. You may have started a business from scratch and had much success wit it, but now you are looking to retire, start a new business, or simply just taking a break.
There are several benefits to buying an existing business rather than starting a business of your own. When starting a business, the risks are higher, with many businesses failing in the first year and 80% failing within five years. However, purchasing an existing business reduces an entrepreneur's risk, tipping the risk - to - reward ratio favorably, while creating opportunity for increased profit and growth.
WATCH FOR THESE WARNING SIGNS WHEN BUYING A BUSINESS
It is a common assumption that the main reason people want to buy a business is to make money, or often specifically, "to get rich". Obviously, buyers do not want to buy a business that fails to earn enough money for them to live on. When buying a business, a buyer looks for one that appears to at least be able to support whatever size family the buyer has.
There are many factors to consider when buying any business, but here are some to consider when you are interested in buying a franchise:
Only one out of approximately 15 of potential buyers will actually buy a business and it's important that sellers be aware of what buyers go through when considering business ownership, especially for those who have started their own business and have forgotten their own experiences prior to buying their business.