Few business decisions are easy ones.  In fact, the larger they are and the more important they are, the more difficult decisions can be.  For example, the choice to buy a gas station is just such a decision.  More than likely, you have seen gas stations for sale from time to time.  This should come as no real shock.  After all, the number of gas stations in the world is truly staggering, and this makes sense considering the car-obsessed nature of our culture.  Plus, there is the wide scale acceptance of the concept of suburbia.  As a result, people spend a great deal of time in their cars.  Let’s be honest, on average, those cars get dreadful gas mileage and that adds up to a real business opportunity for those seeking to buy a gas station.

However the issue of whether or not you should buy a gas station is a bit more complex than it might initially seem.  In this article, we will explore some of the ups and downs that go along with grabbing that “Gas Station for Sale” sign and putting your name on the dotted line.  Gas stations for sale can be quite lucrative, but is this truly the right business for you?

Are You Comfortable Turning Over the Reigns to Someone Else?

When you see a business for sale, it is important to question whether or not that business is a good fit for you.  Can you envision yourself owning and perhaps also operating that particular business?  Many who own gas stations actually turn over that operation to other employees instead of operating it themselves.  If this is something that you are comfortable with doing, then a gas station might be one of the businesses for sale that you will want to consider.  However, if this idea makes you uncomfortable, then you might want to gear your search elsewhere.

The practicalities of who will operate your company are more relevant with a gas station than many other businesses.  If, for example, you buy a store that sell picture frames and does custom frames, you don’t have to necessarily stay open long hours.  However, this is typically not the case with gas stations.  Instead gas stations are usually open long hours and sometimes even 24 hours a day.  That means that an owner-operator is not likely to be present most of the time.  This is an important concern and one that any prospective owner should consider before buying a gas station for sale.

The Need for Gas is a Big Plus

Even if fuel efficiency goes up, it is also very likely that the price of gasoline will also rise as well.  The likelihood of this occurring is only amplified by the ever-growing need for gasoline, thanks in part to the industrialization of nations like China and India.

Thus, when you buy a gas station, you are likely investing in an aspect of the transportation industry that will be healthy for years, if not decades, to come.  There are alternative technologies and approaches on the horizon, but it will likely be quite some time before we see them.  These factors definitely make gas stations attractive in the array of businesses for sale.  Further, it is also quite possible that the existing infrastructure of gas stations will in some fashion be incorporated into any major “switch over” if one does actually occur.

BuyTradeBiz.Com is the Internet’s newest business for sale and franchises for sale listing website.  This is the site if you are looking to sell a business, buy a business or buy a franchise.

One of the main factors in owning a restaurant is your energy levels.  We are not referring to the energy that flows out of your wall sockets, but instead the energy that flows out of you.  If you feel exhausted and tired all the time and feel as though you are trapped working too many hours a day, then it might be in your best interest to hang the “Restaurant for Sale” sign in your window.  Simply stated, if you don’t have the energy that a restaurant can demand and you must be a “hands on” owner, then it might be time to sell.  Remember the sight of a “Business for Sale” sign is not an uncommon one, as some businesspeople and entrepreneurs in fact make their living “flipping” businesses for sale just as others flip houses.

Not Able to Stay Involved

If you were never deeply involved in the day-to-day operation of your business, then it may not be that critical if you are not physically present a great deal.  Perhaps you found a good support staff years ago.  You may have a great manager and are thus able to check in time from time to make sure that everything is working well.  If this is your experience, then the business may be able to handle a lower level of involvement from you.  Perhaps, in this case, you can talk to your team about how you plan to hand over more responsibilities.  Often your staff will be extremely receptive to this idea, especially if it means a raise and a new title.

However, if you are a owner-operator who just doesn’t have the energy you need to operate the business, that is an entirely different issue.  If you feel strongly that you are just in over your head, this could mean that it’s definitely time to sell a restaurant.

Quality Might Be Slipping

Quality is a simply massive factor for any business.  This holds true for restaurants as well.  If you feel that your quality is slipping and customer feedback is backing this up, then it might be time to join the businesses for sale club yourself!  This issue largely comes down to whether or not you feel that you can fix the problems that are impacting your quality and get your restaurant back on track.  Taking that “Restaurant for Sale” sign and hanging it in the window might not be an easy decision, but it may be the only one you are left with if your quality is slipping.  If you don’t think you can fix the current situation or you lack the energy or motivation to do so, then it is probably time to move on and put up your business for sale.

Is It Time to Go?

Owning a restaurant can be very rewarding, but it can also sometimes be draining.  Those who feel as though they have given all they can to any business might want to consider walking away.  There is no shame in knowing when its time to sell a restaurant or any business.  Holding on too long, however, can be a major problem and one that can, in theory, bring with it a good deal of financial problems and even disaster.  Just as in gambling, knowing when to fold is sometimes what the whole game is all about.

BuyTradeBiz.Com is the Internet’s newest business for sale and franchises for sale listing website.  This is the site if you are looking to sell a business, buy a business or buy a franchise.

Should I Sell My Gas Station?

By: BuyTradeBiz.com

The decision to put up a business for sale is one that can sometimes involve weighing a good deal of pros and cons.  After all, whether you bought the business from another party or started it from the ground up, your business is important to you.  However there are times when the decision to put up your gas station for sale can become remarkably simple. For example, perhaps you have been offered a dream price or maybe you’ve simply had enough.  Other considerations could be that its time to retire, your business is slowly going under or you have another even better business opportunity lurking in the wings.  Regardless of why you decide to sell, the time may come when you have to do just that.

Do You Still Feel Motivated?

If you no longer feel motivated to work on a business, then it certainly may be time to sell.  Lots of people are looking for gas stations for sale and, as a result, you might just have an easy time making the sale. When people are thinking about businesses for sale, one of the top candidates that pop into the minds of many people is that of a gas station.  Gas stations are so ubiquitous in our society for they are the very heart and soul of modern transportation.  It is an understatement to state that gas stations are indispensable in modern life.

While gas stations play an important role to society, you may not feel as motivated to keep your gas station business going.  Thus, you may feel that its time to sell a gas station.  If your motivation isn’t there, you simply won’t be as focused, and this can potentially be very problematic if you are an owner-operator or the gas station makes up the bulk of your income.  Thus, stepping back and deciding whether or not you want to keep your gas station is key.

How Do You Feel About Long Term Prospects?

A big part of evaluating whether or not to put up your gas station for sale centers on what you believe your long-term prospects to be.  If you feel that you are in a location that is destined to only enjoy ever growing levels of traffic and you are not in a cash crunch, then keeping your gas station might be the right move.  On the flip side of the coin, if you feel that the long term prospects for the region in which your gas station is located are less than stellar, then maybe selling is your best move.  Analyzing the situation may take some work and maybe even some expert advice, but if you want to be fairly confident and resolute when you list your gas station in the businesses for sale section, then this is something you will need to contemplate.

Knowing What Comes Next

Before you decide its time to put that Business for Sale sign in the window, it’s important that you have some idea of your next step.  Will you be starting a new business or buying another business?  How much profit will you be walking away with?  What is your minimum price?  These are some of the critical questions that you should ask before taking the jump.  If you carefully analyze your intentions and your potential outcomes ahead of time, you will be in the best situation once your business is sold.

BuyTradeBiz.Com is the Internets newest business for sale and franchises for sale listing website.  This is the site if you are looking to sell a business, buy a business or buy a franchise.

There is no law that states that you have to know anything about owning and operating a restaurant in order to buy one. In theory, you could be the worse cook or chef that ever lived and still own a restaurant! Like most other businesses, there are a great many factors that go into a restaurant’s ultimate success. When considering restaurants for sale, it makes sense to consider the following guidelines.

Is Restaurant Ownership Right for You?

There can be great money in owning a restaurant, but its not the perfect fit for everyone either. This is a basic point that any prospective restaurant owner should consider when considering a business for sale.

No matter what business you own, it’s a good idea to be certain of the direction that you want to go. After all, there are many businesses for sale, and while buying a restaurant is an excellent option, it is not the only option. Thus, if you think that the restaurant business is definitely not for you in the long run, then just keep looking at your different options.

Finding a Good Restaurant for Sale

When you are considering buying any business, it is important that the business in question has good current cash flow and the prospect of good future cash flow as well. This can be trickier than it might seem at first glance. If you decide you are going to buy a restaurant, keep trying to look at your possibilities from a variety of angles. For example, if most of the large local businesses in the area of your restaurant look as though they are going out of business, then you might want to look for other restaurant businesses for sale in a different neighborhood.

There can be exceptions to any rule, but it should go without stating that most restaurants will receive a good percentage of their business from local, surrounding businesses and homeowners. If it looks like a neighborhood is in trouble, then you might want to look elsewhere. Stability is a key part of owning any business. This is something to keep in mind when you see the “restaurant for sale” sign hanging in the window.

Restaurant Managers

If you really don’t have any restaurant experience, it only makes sense to hire someone who does. Savvy restaurant owners make it a point to hire knowledgeable managers who can offer the expertise that is necessary to make the restaurant run smoothly and successfully. Be sure to carefully check this individual’s credentials and recommendations. After all, you will be putting a great deal of trust into your manager.

Health Code Concerns

When you buy a restaurant, you do inherit some concerns that you might not find without other businesses. Since you are serving food to the public, this means that you need to be concerned with health code issues, cleanliness and the safety of the food you are serving. There are lots of businesses for sale, but only a limited number of them deal with the issue of public health and food safety. This is one of the finer points that people may fail to consider when they are looking at their business for sale options.

When you are looking at restaurants for sale, keep in mind that a restaurant can be a great business opportunity, especially in the right hands. Realizing what goes into that opportunity and knowing what is involved will greatly increase your changes of long-term success.

BuyTradeBiz.Com is the Internets newest business for sale and franchises for sale listing website. This is the site if you are looking to sell a business, buy a business or buy a franchise.

When it comes to buying a business, it is important that you give careful consideration to your personal reasons for selecting that particular business for sale. After all, there are a wide variety of business opportunities out there. Finding businesses for sale often is the easy part, but a great deal goes into successfully buying a business. Let’s take a look at some of the key factors you should consider.

A Little Soul Searching Might Be a Good Idea

First and foremost, when buying or even selling a business, it is essential to determine whether or not you are truly doing what you feel is right. This point may seem obvious, but a great deal of emotion can be infused into either selling a business or buying a business. For many people, business ownership is a deeply personal thing that can be imbued with a good deal of emotion. Many people have their identities wrapped up in their businesses to varying extents.

Thus, it is not as simple as stating, “Today, I sell my business,” or “Today I will look at businesses for sale” and make an immediate decision. If business decisions were always strictly 100% about money, then a great many mistakes could be avoided. This point underscores the importance of reflection. Before you decide to take the plunge in buying or even selling a business, it is important that you reflect upon whether or not your decision is truly the correct move.

Many emotional decisions are made too quickly and end up being regretted. Even once you have decided to buy a business, take some time to assess before signing on the dotted line. If possible, consult with knowledgeable and experienced friends and/or mentors. In the end, you need to be certain that the business opportunities that you select are the right ones for you.

Consider Your Wants and Your Goals

People are trained not to think about their wants and preferences when it comes to business. However, it can be argued that this can be a mistake. For example, why invest your time and your money in a business that you know you would hate? This is particularly true if you plan on being an owner-operator of a business. Grabbing that business for sale sign and jumping right in to something new could be a disaster if it is a business that you will not enjoy. The end result of buying and operating a business that you don’t like could be a major letdown.

Why Not Enjoy the Business You Own?

There is no doubt that owning a business can be a great deal of work. If you don’t like the business in question, you are unlikely to be as motivated and as creative as you might otherwise be. You may be able to exercise the discipline to work hard and stay long hours, but if you don’t like the business in question, your creativity will suffer. These are the exact skills that are often required with starting a new business or taking over an existing business for sale. No one is stating that you have to absolutely love a business in order to operate it and make money. However, if you are choosing one from scratch, then it only makes sense to look for one that you will also enjoy.

BuyTradeBiz.com is the Internets newest business for sale and franchises for sale listing website.  This is the site if you are looking to sell a business or buy a business or buy a franchise.

The economy is in a curious stage. While it seems like it is ready to come out it appears there is a lurking skepticism that things are going to get worse again. In such an unsettling environment how does one find potential investors and lenders that will agree to finance a business? Whether you are buying a restaurant for sale or looking at websites for sale, finding the right financing option is important.

Skin in the Game. Let us assume that the buyer while is very interested in buying the business, he cannot finance it entirely from his pocket. While that is totally understandable, any investor or lender is going to feel much better about his investment or loan, if the buyer has a skin in the game. Obviously, the more the skin the better. What is the minimum amount a buyer should have invested before others would want to step in? Now that varies a lot. However, my recommendation is that it is at least 20% of the purchase price, but closer to 50% would certainly be better.

My Family Loves Me. My friend once told me, if you ever want to test if your family really loves you, ask to borrow some money! Now, I don’t think that is quite true. However, it is true that investing in you relatives business is not recommended for any one even if they are related by blood, unless they understand the business proposition, value and risk. What happens often is people invest in a relatives business because they like them and not because it is a sound investment. Having said that, it can be an excellent option for many people, especially in this economy. However, the borrower should clearly draw up the terms and explain the business model and risks involved before taking the money.

How Good Is My Venture? You can explain your business model to your uncle or grandmother across the dinner table over a pizza. But if you are going to approach a Venture Capital firm or Private Equity firm, you better have a business plan. A business plan can be a simple 6 slide PowerPoint presentation or a 100 page document bound in colorful vinyl. Regardless, the numbers have to be in black and white. The entrepreneur should have a clear idea of things such as revenues, cash flows, assets and liabilities and be able to answer any question the would be investor is willing to throw at them. You should be able to demonstrate to the investor why he or she is going to make 10 times their investment in a short time. VCs and PE firms want return on their investment, a lot of return. Maybe your business will qualify for investment or maybe not, some businesses for sale are not suited for VC and PE investment.

Angels & Demons. Angel Investors are still around just a bit more careful may be. But in fact the shaky stock market is turning off a lot of private investors and the more daring ones are looking to invest in a good business. The reason they are called Angels is because they smile on you when others have been demonic! There are a lot of sources on the net where you can look for an Angel investor, so definitely worth a try. You will usually get a boatload of business advice, which can be valuable for a new business owner.

Banks & SBA. I have made this option be in the end, because borrowers know that if this is an option then the other options are not needed. But borrowers should pursue a traditional loan or an SBA loan if they might qualify for it. The banks have gotten a lot stricter about lending to small businesses, but they do lend.

In summary, there are still quite a few options for a business buyer to find financing, but they have to be more diligent and persistent in this uncertain economy.

BuyTradeBiz.Com is the Internet’s newest business for sale and franchises for sale listing website. This is the site if you are looking to sell a business or buy a business or buy a franchise.

Typically traditional business valuations are based on income, assets, cost approach and historical performance. Emerging technology companies present a significant valuation challenge, since they typically have limited revenues, few fixed assets, and a history of losses – and a short history at that.

There are several unique aspects to valuing a technology company. The factors typically present in a traditional valuation are either not present or provide very little insight in a technology company valuation. Typical valuation methodology looks to assets and/or income for value and involves income, assets and cost approaches. Operating businesses are usually valued based on an expectation developed from their historical performance. On the contrary, technology companies many times have limited revenues, no history to speak of, and a track record of financial losses.

Often the technology company will represent the first of its kind of business. Therefore, it is difficult to find a peer group or competitors to benchmark performance. So, investors in technology companies usually look toward the future with an expectation of explosive growth. Here are some other factors that impact the process of valuing a technology company vs. a traditional business opportunities:

Lack of Fixed Assets and Inventory – Technology companies do not invest significant dollars into land, buildings, or other fixed assets and derive most of their value from intellectual property. Since the products or services produced by the company are electronic bits & bytes, there is no inventory to speak of.

Projections are Key – The valuation of an emerging technology company is based on the projected future stream of income from its intellectual property. Projections include assumptions regarding demand for the product or service, revenue growth, competition, alternative technologies, the economy and many other factors. However, such assumptions, if based on market research, known facts and sound logic can be a basis for value.

Cost Of Capital – Another difficulty in the valuation of technology companies is determining the cost of capital. Many technology companies are dependent upon equity financing causing the cost of capital to approximate the cost of equity. Some technology companies issue hybrid securities, such as convertible bonds. Technology companies may have bank debt, making it hard to rate. In general, estimating the cost of capital from historical data is more difficult with technology companies that have short histories.

Management Strength – Investors often have their own methodologies for valuing technology companies. Some may evaluate certain factors and assign values to them. While a good idea may have value, without good management it may not be successful. Strong management may be worth more than any other characteristic. Industry contacts and relationships are important factors. Demand and an analysis of the marketplace must be evaluated. Finally, the feasibility of the product itself must be considered.

Intellectual Property – Most of the use of capital in a technology company goes to building up the company’s intellectual property. So the appraiser has to pay close attention to the built up intellectual property in order to assign value to it. Unless there is a proven track record of revenue, the appraiser has to research the market and evaluate the potential for the product before assigning value.

Given these challenges, it is clear that the valuation of technology businesses for sale should be performed by an appraiser familiar with current trends, data sources, market transactions and market participants.

BuyTradeBiz.Com is the Internet’s newest business for sale and franchises for sale listing website. This is the site if you are looking to sell a business or buy a business or buy a franchise.

No one we know of has the crystal ball to tell us precisely when the economy is going to bounce back for business owners and consumers. Times like these lead many people to take matters into their own hands, and the good news is that there are business opportunities out there and a consumer base to go with it.

 If you want to hit the ground fast and hard you might want to go in the direction of buying an established business, one with a proven track record of course. Less risk is typically involved in buying a business that already exists. Reasons for this are: a profit-loss sheet is already active, live and present and it should clearly show positive cash flow and profits; customers and prospects exist and perceptions are in place; trained employees are familiar with day-to-day procedures and likely ready to help. If working, trusted employees and a working system are already in place you are good to go. There certainly may be some initial tweaks and changes in that you have your own way of doing things, are familiar with the concept and can bring new ideas, and may want to add a right-hand person(s) that you have worked with in the past.

 Different types of business models carry different commitment levels. We will overview two— websites for sale, restaurants for sale—going from less commitment to more commitment:

 Buying a website business can be rewarding if you are in the right market for you, your passion, your background in management and understanding of technology and distribution models. Almost any business, either selling a product or service or combination, can go online. But here we are talking about an established or premium website (both with vastly different cost and time commitments). If you are interested in primarily being the principal/owner of the business who is more savvy with financials and marketing, then you will need to find the technology expertise and hire that person on your team right away. When you’re ready to buy the web business, you need to communicate with the seller and get the business plan for the site, including how they attain leads, customer traffic numbers, partnering opportunities, advertising models, proof of income/revenues (monthly/yearly); ask and get answers to questions that are not in the plan. 

 If you are buying a restaurant, be sure you are ready to commit big to the love of food, people and service on all fronts, from back-of-the-house operations to front-of-the-house cosmetics and ambience. This can be a fun family commitment if other familial partners are interested, qualified and involved. Business valuation, again, and its potential down the road, is the first step to saying “yes”. In the restaurant space, you have no shortage of choices, including independents, fine dining, family/casual, quick-service, bakery/cafés, simple hot dog stands and pizza places, among others. You can also collaborate to create a website and printed catalog that offers your most famous restaurant items and merchandise that can safely be shipped to your growing customer base.

Your dreams and passion helped start your business.  You have worked hard, made all the necessary changes, and took advantage of every business opportunity needed to make your business successful.  But over the years the amount of work and stress has made you think that selling your business is the best option for you.  With the global recession affecting everything, it is still a good opportunity to sell a business. You might even consider waiting until you believe the economy has recovered but there are necessary steps to consider while you prepare your business for sale.  Below are some important things to consider while preparing to sell your business.

1. Address all outstanding issues.  All businesses for sale or franchises for sale need to immediately resolve all pending issues and problems within the organization.  Be sure to speak to all business owners regarding the upcoming sale of the business.  Also to ensure a smooth transaction when you list your business for sale, have a buyer’s agreement and seller’s agreement in place before the sale is completed.
2. Organize all aspects of the business’s accounting.  Get all the financial documents updated so that the financial information presented to a potential buyer for the business opportunity or franchise opportunity is as accurate as possible.  Another important thing to consider is all the negative items on the books that will affect the sale of the business.
3. To entice buyers to buy a business consider providing finance incentives.  Work with business brokers to help identify potential candidates that might be interested in the business for sale or franchise for sale based on their financial credibility and their history in successfully running a business.
4. An important item to review with your business broker is the amount you should be asking for your business.  They will be able to provide you with a realistic view of the market conditions and at which price point you can easily sell your business.
5. Actively participate in the sale of your business.  Constantly communicate with your business broker at every state of the preparation to the actual sale.  They will be able to provide you with the marketing information necessary to attract the buyers and the proper way to answer question regarding the negative items on your financial statements.  Most importantly, once you have accepted a bid for your business, they will help you structure the final sales transaction.

While you are preparing your for the business to sell remember to keep the business running as efficiently and profitably as possible, letting potential buyers know what can capitalize on once they become the owner.

BuyTradeBiz.com is internet’s newest businesses for sale and franchises for sale listing website.  Designed using the latest Web 2.0 concepts buyers and sellers are increasingly adopting the site as their favorite platform to buy a business and sell a business.  Privately held BuyTradeBiz.Com, was founded by veterans of the software industry, to create a new paradigm for the business marketplace.

With the April 15th deadline quickly approaching, there are many tax breaks small business owners should know about.

1. First year profitable businesses can depreciate cost of business property and equipment purchased in 2009 up to $250,000
2. First year non-profitable businesses can depreciate 50% of their office related property
3. General business credit limit has been raised for non-profitable businesses
4. Work opportunity tax credit is available to small businesses who have hired employees that fall into “target groups who have consistently faced significant barriers to employment”
5. NOLs carry back allows small businesses to carry back net operating losses for five years instead of the previous two years.

Be sure to contact your accountant and ask about all the tax breaks your small business qualifies for.