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How to Buy an Existing Business

Many people that want to own their own their own business, never think about buying and existing business instead of starting from square one. There are a number of advantages that accompany purchasing a business that is already established. One reason that some people opt not to purchase an established business is because their simply do not understand the process. Fortunately, learning how to buy an existing business is comparatively simple.

How to Buy An Existing Business

The first step in buying an existing business is to determine what type of business you are interested in. It needs to be compatible with your personality, as well as your skill set. If you opt to use a broker, they can often help you decide what type of business is best suited for your needs and skills. If you decide that a broker is not the route that you want to take, other common ways to located potential businesses includes: friends, business contacts, newspapers, for sale ads, etc You can even go to trade associations, your accountant, or even your lawyer to get leads.

Instead of buying the first business that looks interesting, it is best to consider several options at once. This will ensure that you analyze and investigate each business equally thoroughly. When comparing different businesses, there are a number of different aspects that you need to take into account. Make sure to break down the financials for the business for at least the previous 5 years. From this information, you should be able to do some financial forecasting to see if the businesses profits will likely continue to increase, stabilize, or decrease. It is also important to consider the monthly or yearly operating expenses in comparison to similar businesses within the industry. Finally, it is important to look into why the owner is selling. This includes looking at: current inventory, suppliers, competition, staff, and potential additional investments such as upgrading current operating assets.

Once you have a good idea about each business, make sure to do a walk-through during the hours of operation. This will give you a much better idea about what running the business will actually be like. If it is a service-based business, act as a customer at least once. This will give you an immediate idea about the businesses culture and potential changes that you improve the business.

Once you have chosen the business that is right for you, it is time to take some action. The first thing that you need to do is decide on a purchasing strategy. The two most common types options are purchasing the balance sheet (this includes all of the assets as well as the liabilities) or simply purchase the assets. Most people recommend that purchasing the assets alone is the best strategy, however this may come at higher cost. Once you know what you want to purchase, it is time to actually place a value on the business. This will be based on the overall market value.

When all of this is done, you simply present your offer, which will often be followed by some negotiations. If all goes well, you will quickly become the proud owner of a new business. Once you understand everything that is involved with how to buy a new business, it could prove to a better option that starting from scratch.

How to Treat Your Internet Marketing Business Like a Real Business

Internet marketing is more than a mere stay-at-home business. You should treat it just like any bricks and mortar business if you want to be included in the short but growing list of those who succeeded in this business.

Don’t go thinking that you have to immediately give up your job if you have one, to start your internet marketing business. In fact, some people who have succeeded in this business discovered the opportunity in internet marketing while still employed, and they continued with their employment until such time their business became big and stable enough.

The thing is, you can start as a part time internet marketer and still succeed. Your attitude towards your online business is important. This is especially true if you work at home, sans the rigid time requirements of a regular office.

Here are some things you should take into consideration if you are bent on treating your internet marketing business like a real business.

1. Do not treat your internet business like a hobby. You may like your internet business so much, and it gives you pleasure to dabble in it, but don’t be fooled into thinking you can treat it like a hobby which you do solely for pleasure. An internet marketing business can be pleasurable, but you also have to give it more attention even when it becomes less pleasurable because of the challenges that go with the business.

2. Your internet marketing business is a jealous lover so make sure you make time for it. There is a need to invest more time in your business, not only in the marketing stage, but all throughout the business life. It is important that you immediately respond to the queries of your potential customers if you want to keep them coming and to keep them buying.

3. Know all aspects of your product or service before you even try to sell it to your customers. By doing this, you will be able to respond to their queries in a knowledgeable manner. If you are convinced about the usefulness of your product or service, then it will make you a more credible entrepreneur. Developing trust between you and your customers is a good way to start a long-term relationship.

4. If you are operating your internet marketing business from home, then set specific hours for your business. One good thing about working online is that you do not have a boss and you do not live around a Bundy Clock. Despite this, you still have to set regular work hours for yourself to regularly monitor your internet marketing business and your clients to make your business more efficient.

5. Keep a record of your finances and check it as against your expenses. Even if you are working at home, you still have to factor in the expenses in your internet marketing business and that includes the electricity expenses you incur and the cost of using your business machines. This way, you will be able to trace if your business is indeed earning.

If you treat your internet marketing business like a real business, then you have to start with a simple business plan. This will serve as your guide as you go through your business. Check out your business plan so you know if you are moving forward and accomplishing your goals, or if you are going nowhere at all.