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Posts Tagged ‘Business for Sale’

Buying a Day Care – Is it for you?

December 16th, 2011 No comments

Buying a Day Care – Is it for you?

By: BuyTradeBiz.com

Are you thinking of buying or starting your own daycare center? Lucky for you there are many ways of buying a day care for sale! But, before making your decision you need to think about a few very important questions. Why do you want to run a daycare center? Do you have the want to make the center a successful place for children to play and learn?

If after thinking about those questions you are still wanting to run a daycare center you need to decide whether you want to buy an existing business, start one from scratch, or open a home run center.

When searching for a business for sale it is important to consider the time and effort the person selling a business has put into the center. An important question is whether the business is making money, breaking even, or losing money. No matter what the answer, you can take that business and make it even more successful! With a few changes to the daycare’s programming and decor even a center that is losing money can turn into an extremely successful business venture.

 

When opening a new center or a home run center, you need to make sure that:

  • The space is zoned for a childcare center
  • You apply for the proper licenses
  • You have the capitol to buy all the necessary furniture and equipment

Opening a daycare can be rewarding and nerve racking at the same time. But, as long as you find someone who wants to “sell my daycare” for the right reasons and you have the motivation to provide a stimulating and educational place for children to go, success is just right around the corner.

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

Valuation Of Emerging Technology Businesses

October 5th, 2011 2 comments

Valuation Of Emerging Technology Businesses

By: BuyTradeBiz.Com

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.

Considerations for Buying or Selling a Restaurant

September 16th, 2011 11 comments

Considerations for Buying or Selling a Restaurant

By: BuyTradeBiz.com

You might not realize it, but the independently owned restaurant is still alive and well.  While the dining landscape may seem to be dominated by a handful of fast food giants, there are still many independently owned restaurants that are thriving and serving millions of people every day.  In the restaurant business, one can make a good deal of money, as mark ups tend to be quite high.  If you are lucky enough to find a restaurant for sale that is well liked and well trafficked, you could be in for a real treat that has nothing to do with food!  Likewise, if you have a great restaurant for sale, you should have no problem finding a buyer if you have a thriving business.

Profitability

If you are considering any business for sale, it only makes sense to evaluate whether or not it is profitable.  If all you ever hear is that the business has “potential,” you probably want to head in the other direction if you are a buyer.  Potential is great, but when its coupled with a track record of established earnings!  There is nothing magical about the restaurant industry, and it’s important to keep this in mind when you see owners looking to sell a restaurant.  A restaurant needs to be profitable like any other business for sale.

If you are selling a restaurant, be prepared that you will be asked about the profitability of your business.  These types of questions are asked across the board when it comes to businesses for sale.  If your business isn’t currently making much money, you need to be prepared to sell it for a lower rate.

Long Term Potential

Seeing a restaurant for sale sign might be an exciting moment, but it is also important to step back and evaluate the long-term potential of any restaurants for sale that you come across.  As a buyer, you need to make certain that your clientele will not suddenly dry up and vanish due to circumstances beyond your control.  This can be tricky but if you ask the right questions and investigate the area in which the restaurant is located you will be giving yourself a real leg up. Don’t hesitate to ask questions that will inform you about a restaurant’s reputation as well.

If you are planning to sell a restaurant and your business has reputation issues, see if there is anything you can do in advance to repair these problems.  Also the cleanliness of your restaurant goes hand in hand with its reputation.  Make sure that you have past inspections and have the proper licenses.

Additional Advice for Buyers

When it comes to businesses for sale, if you get a bad vibe, be sure to listen to that instinct.  Often something will seem wrong or off, but you just can’t put your finger on what the problem is.  Don’t be afraid to simply walk away regardless of the time you may have spent investigating the business or restaurant in question.  Ultimately, you need to know that the business you are investing in is worth not just your money, but your time as well.  After all, your time is the most precious commodity of all.  The last thing you want is to invest it in a business that is unprofitable or makes you miserable.  If you are not enjoying your life, then how can you enjoy any money that you make?

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.

Buying a Gas Station

September 2nd, 2011 5 comments

Buying a Gas Station

By: BuyTradeBiz.com

Why should you consider buying a gas station?  The real question is why wouldn’t you?  Almost everyone has a car and needs to drive.  The number of hours that Americans as well as people all around the world log in their cars each and every year is nothing short of staggering.  For now, we are all trapped in our cars to some extent or another.  However, the good news is that this fact makes for a real opportunity for those looking to invest now and in the future.  As a result, when you are looking for businesses for sale, it is tough not to consider a gas station.  In this article, we will look at a few of the reasons that you might want look at the gas stations for sale in your area.

Gas Stations for Sale

When you see a sign letting you know that there is a gas station for sale in your region, there is good reason to be excited.  Let’s face it, gas stations have a built in market that has no short-term chance of going elsewhere.  Gasoline powered cars are a virtual monopoly in the realm of transportation, and this is the core reason that when you are evaluating businesses for sale, that gas stations can stand out in a major way.

Consider the Location of the Gas Station

As with any business, the location of a gas station for sale is of critical importance, as you need to have access to an ample level of potential customers.  In terms of considering a business for sale, it is always important to evaluate location and access to customers.

Yet, one factor that is often overlooked in this equation is what will the future landscape look like.  It is important to know what kinds of developments are occurring within the community.  For example, you wouldn’t want to buy a gas station only to see all the major local employers in the nearby region close down.  If this were to occur, your profits would be dramatically reduced, as the number of potential customers drops off.  In this regard, knowing the “lay of the land” and what community developments and transitions are likely to occur is of paramount important.  Taking these types of factors into account will serve you well with any business that you buy.

Take Time to Learn from Other Businesses

Taking the time to talk to other businesses in the area of the gas station you are considering could pay off in a major way.  You may learn of potential problems or developments that are on the horizon.  Likewise, local community newspapers and business organizations can also serve as a rich source of valuable information when it comes to evaluating a business for sale.  Simply consulting such resources and doing online research into the neighborhood or community that you are considering could mean the difference between a solid investment and one that is on shaky ground.

There are plenty of gas stations for sale on the market, and that means you can be choosy.  Patience can be rewarded when it comes to buying any business.  Take your time, do your homework and investigate all of your options.

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.

Business Opportunities are Everywhere

August 24th, 2011 1 comment

Business Opportunities are Everywhere

By: BuyTradeBiz.com

It is easy not to see opportunity when you are surrounded by it.  Many of us have grown up in an environment that is opportunity rich.  Our environments may be so rich, in fact, that it may be difficult to see the “forest for the trees.”  In our day-to-day lives, being able to spot the business opportunities that exist all around us can be difficult.  The hustle of every day existence can make it difficult for many of us to envision changing our lives in a major or dramatic way. Yet, it is quite possible for us to do so, and one way is through finding a business for sale.  In this article, we will look at how owning your own business can actually change your life.

Some people feel as though all the good business opportunities are already taken; however, this just isn’t the case.  The world is constantly changing and evolving, and, as a result, that means new opportunities are constantly being generated.  Having the ability to spot these new opportunities is a skill that will serve you greatly and luckily can be developed over time.

Finding a business for sale is, of course, one of the easiest ways to investigate what business opportunities are out there.  There is no shortage of good, solid businesses for sale on the market, and with a little digging you can find one of your own!

Buy a Business and Invest in Your Future

There are many reasons that you should consider owning your own business.  First of all, those who own their own businesses are less susceptible to the ebbs and flows of the labor market.  While a downturn in the labor market may indeed impact your business, it is not the same as actually being part of the labor market.

For example, if the economy slows down, you can adjust your strategies and tactics in a range of different ways.  Perhaps you change how you market to your customers, perhaps you get more aggressive in your market or you even change your core business model or strategy if necessary.  By contrast, if you are in the labor market and your job is eliminated, downsized or exported overseas, you are left seeking employment elsewhere.  Buy a business for sale and you are, to an extent, insulated against these problems.

True with business ownership comes other risks.  However, when you invest in a business for sale, you have a much greater degree of control over your fate.  Being able to control your fate is a wonderful thing.  Don’t forget that if need be, you can always be the one looking to sell a business.  If you keep your business profitable, there is no reason that it will not eventually be attractive to someone else.  The fact that you can potentially make a significant profit down the road when you sell your business provides yet another incentive towards being an entrepreneur.

Making the decision to buy a business is clearly one of the biggest decisions that one can make.  Considering this fact, it is important that you do not rush into any decisions.  Instead take your time, do your research, consult with experts.  Follow your gut instincts and double check your facts and preconceived notions and ideas.  There is a great deal of opportunity in owning your own business, and with the right approach you will find that it can really pay off.

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.

Finding Stores for Sale

August 5th, 2011 6 comments

Finding Stores for Sale

By: BuyTradeBiz.com

Every year, thousands of stores go up for sale in the United States alone.  Deciding which stores are potentially good options for you might be tricky. But, as with all business opportunities, with a little work and research, you can find businesses for sale that will be exactly what you want.  After all, finding a store that has a consistent strong sales and a bright future can be an investment that pays off for years and years to come!

Evaluate Your Comfort Level in Advance

Knowing what you are comfortable with in life is of paramount importance and this, of course, counts even more so when it comes to owning or operating a business of any kind.  Step outside of your comfort zone, and you might ultimately be just fine, but you must pause to ask yourself if this is a risk you are willing to take when you consider businesses for sale.

Finding a good fit in life is important. This is true whether it is your personal relationships or the businesses you are considering buying.  Making the wrong choices comes with a price tag.  This factor is something that savvy businesspeople fully realize.

When it comes to finding stores for sale, you need to know what is a good fit for you.  If you think that you will be uncomfortable running a given type of business or even owning it, then simply skip it.  A great business for sale that doesn’t fit you isn’t a great opportunity after all.  Keep this in mind no matter what type of business opportunities come your way now and in the future.

Grabbing Opportunity

Not all opportunity is created equally.  Being able to distinguish between a great store for sale and something that you should skip might not be easy to determine, but it is the heart and soul of your job as a businessperson.  If someone is looking to sell a business, there is always a reason.  But that doesn’t mean there is necessarily a problem with that business.  Often people sell successful and lucrative businesses for personal reasons or simply because they are ready to move onto something even bigger and better.  All of this means that you may find that you have a real opportunity on your hands.

Location is Paramount

When it comes to stores for sale, it is crucial to consider the location.  Not only do you want your location to be convenient, but also you want to take advantage of advertising that comes from foot traffic and also from motorists passing by.  When you look at a business for sale, don’t underestimate the importance of people in cars driving by your store and seeing your sign.  Of course, this brings up another important matter which is make sure that your store has a sign that is attractive, easy to read and visible.

What any savvy businessperson needs to do when dealing with someone who aims to sell a business is first consider whether or not the business is profitable.  Secondly, he or she must consider what is the long term potential both for growth and continued profitability of the business.  For example you might find business opportunities where the business in question is indeed profitable, but its long term prospects look bleak.  This is the kind of factor that must be considered at length before signing on the bottom line.  Optimally, you want a business or store that will be profitable and a mainstay in the community for years to come, not months.

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.

Internet Businesses for Sale

July 21st, 2011 3 comments

Internet Businesses for Sale

By: BuyTradeBiz.com

Simply stated, the Internet has changed how we do business.  The fact of the matter is that the Internet has in some way or another impacted every business on the face of the earth.  Few changes in commerce and business have had the impact of the rise of the Internet whose influence has been nothing short of profound.  There are plenty of Internet businesses for sale, but there are also some significant points that one absolutely must keep in mind.

Your Due Diligence

There are a variety of steps that you should take before signing on the dotted line.  For example, take some time to search the domain name on the web and check out its reputation.  If there are a variety of bad reviews about this business, they will continue to impact you once you have taken over.  Perhaps that is the reason that this Internet business for sale is being sold in the first place!

Also make sure that you secure the domain name along with the business.  Otherwise this could present a significant hurdle.  You should also take a look at other specifics like will you receive web hosting or do you need to secure it on your own.  If you are looking to sell an Internet business, you need to also consider these same factors and consider what you will give to the buyer.

New Rules and Old Rules

The Internet may have broken some of the old established rules regarding how we do business, but that doesn’t mean that the way you approach someone who is looking to sell a business online should be different.  The old rules regarding what you should be looking for in a business still apply.  You are, after all, looking at businesses for sale.  The fact that the business is Internet based shouldn’t mean that you throw away all traditional wisdom!

A business for sale can be a fantastic money making opportunity or it can also be a giant money pit and nothing short of a headache.  Internet businesses for sale are in no way different.  A business with a poor foundation and poor financials is the same in the end, regardless of whether it’s a brick and mortar store or a virtual store that sells any kind of goods.  In short, an Internet business for sale differs from traditional businesses for sale, but that doesn’t mean that the core aspects of whether or not a business is healthy should be overlooked.

Do People Need This Site?

When you are looking at Internet businesses for sale, it is prudent to stop and ask yourself a very simple question, “Do people need this site?”  This question should quickly be followed by, “Does this site make money and will I make money?”  Remember that vast sums of money were invested in Internet companies that had never turned a profit of any sort, and many of those companies never did.

You wouldn’t by a traditional store that sold products that no one wanted or needed, so why would you buy an Internet based business that essentially did the same thing?  Viewed from this perspective, you can quickly evaluate the wisdom of buying a given Internet based business.  Sure many people are looking to sell a business that is Internet based, but should you be the one looking to buy a business of this kind?

Getting a good deal on a business that is doomed to never make a profit isn’t a good deal after all!  While you might be tempted for a variety of reasons, if the investment doesn’t meet the traditional criteria for being sound financially, then you should just keep on searching.

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.

The Growing Business Opportunity of Hotels

June 2nd, 2011 No comments

The potential for growth in the hotel section in the coming years could be quite impressive for a wide variety of reasons.  First of all, commerce is becoming an increasingly global affair.  While much is made of the fact that “everything” is becoming increasingly digital, the simple fact is that people are traveling more than ever and for a wide range of reasons.  Factors including increased air travel, new emerging middle classes around the world and increasing levels of global commerce all combine nicely to create a climate that is ripe for hotel expansion.  This means that increased profitability in the coming years and decades is looking more than likely.

Clearly, there are lots of businesses for sale.  The good news is that some businesses for sale stand as great potential opportunities.  While every single business opportunity is different, there is no denying the tremendous potential of hotels for sale.  The different factors contributing to global traffic mean when it comes time to buy a business, it might make sense to evaluate the different hotel options at your disposal.

Location is Always a Key Factor to Consider

Hotels in some ways are much like other aspects of real estate in that so much of their value and potential revolves around their location and the communities that they serve.  When you consider hotels for sale, remember that you are also investing in real estate.  Therefore, the location of a hotel is essential.

When you are thinking about a business for sale, it is important to think about why someone has opted to sell a business.  There may be personal reasons involved or there may be cash flow reasons.  However, it is your job to understand why a business for sale is on the market, and the means digging deeper.

As location is a vital element in the success of a hotel, you invariably need to understand the area.  Perhaps most importantly, you need to get an idea about what is happening in a given area in the coming months and years.  For example, perhaps the local economy is set for a severe blow due to a pending factory closure.  This type of event, of course, changes the entire equation when it comes time to buy a business or sell a business.

Physical Condition

While location may reign somewhat supreme when it comes to whether or not you should or should not buy a hotel, it is not the sole factor.  Of course, the physical condition of the hotel is a major factor in both the price you should pay (and, for that matter, if you should buy it at all!)  All of the problems that you might face in buying a home or an apartment building will be present in a hotel, but they will be multiplied by a factor of ten, twenty, fifty or more!

If you are considering hotels for sale, then you absolutely want to be certain that the physical condition of the property in question is good or can be brought up to speed at a price that you are willing to pay.  Failure to properly address this issue could leave you with a money pit of epic proportions.

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

Restaurants for Sale-Do You Need to Know Food to Own a Restaurant?

May 20th, 2011 4 comments

Some people feel that they need to be experts on food and the food industry in order to jump into the food business.  Others feel that they know how to eat and that’s “good enough.”  Of course the truth is that the restaurant business is like every other business and sector.  In other words, it is a business.  This means that one needs to understand the “rules of the game” and how a particular restaurant operates.

If you decide to look at restaurants for sale, the same factors that are of concern when it comes time to buy a business or sell a business are still in play.  While the business opportunity itself might be unique or special, the basic rules of commerce still apply as they would with any business for sale.

Restaurants Have Enjoyed Great Growth

There are lots of businesses for sale in this particular industry ranging from coffee shops and cafes to fine dining establishments.  Since there are so many restaurants for sale, you can be sure that some of the business opportunities before you will involve restaurants.  The simple fact is that the restaurant industry has enjoyed fantastic growth in the last two decades.

Increasingly, people are spending larger and larger percentages of their respective food budgets dining out at restaurants.  This fact is no small factor when it comes time to buy a business. All business owners want to see growth as well as the potential for ample future growth.  The restaurant industry has this potential in droves!

Location and the Restaurant Business

Every business for sale is different and, of course, this includes restaurants for sale.  Location is absolutely critical in the restaurant business.  People will, after all, eat mediocre or even sub par food from a restaurant that is in a wonderful location.  However, people will certainly not travel miles and miles for mediocre food.

The Two Key Factors of the Restaurant Business

The two big factors that usually govern the success of a restaurant, location and food quality, are interwoven in determining the success of a given business.  It is thus necessary to not just focus on the location of a restaurant, but the quality of the food as well.

Are You Willing to Move Your Restaurant?

Here is a key point- you can improve the quality of the food a restaurant serves, and you can improve the service and the décor. However, you can only improve the location by moving!  When you are looking at restaurants for sale or any businesses for sale the location always needs to be carefully evaluated.  In the case of restaurants, a location, which has low population density, can be the kiss of death!

If someone is looking to sell a business, you must always ask why and look for the core reasons.  Usually if a business is low on headaches and high on profit, people will find little reason and little motivation to sell.  When you buy a business, it is important to know why that business is being sold.  If you can easily fix all or most of the potential problems, then you might just have a serious opportunity on your hands.

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

Follow Your Own Interest When Looking for Stores

May 12th, 2011 No comments

Owning a store of any kind can be one of the best business opportunities that you can find.  With that stated, however, when it comes time to look at stores for sale, you will discover two facts.  The first is that there are lots of people looking to sell a business.  You will, of course, find many stores for sale.   However, this is really only the beginning of the process.  The second fact is that will quickly become quite obvious is that while there are certainly lots of businesses for sale, they will not all be the perfect fit for you.

Personal Interest is Key

It is important that you factor in your own personal interests when you are thinking about a business for sale.  There are many reasons for this fact.  The more you understand an industry, the more likely you are to be successful with your endeavors.  Of course, this is not to state that you can’t excel with a store in an industry that you don’t understand, but it is worth proceeding with extra caution when you are venturing into unknown territory.

Know the Lay of the Land

If you don’t know a great deal about an industry, but you still find stores for sale that are intriguing deals you can still proceed.  The trick is to make sure you find an experienced manager or consultant to work with, as you will surely need an experienced guide you can “show you the ropes.”

Are You Willing to “Put in the Hours?”

While you can clearly operate a business that might be outside your comfort zone and base of knowledge, there is also something to be said for following your own interest.  If you are interested in a given area and you see that it has business opportunities, then you likely will feel more like working the long hours that are typically involved in running or owning a business.  This is no small factor.  After all, owning and especially running a business can be a tremendous amount of work.  So when you are considering a given business for sale opportunity, stop and ponder whether or not you are willing to “put in the hours” necessary to make your new business a success.

Pause to Reflect on Your Choices

Many people wonder if they should have a natural interest in whatever type of store they ultimately purchase.  This is a smart question to ask, as you look through stores for sale.  In other words, when you are looking at businesses for sale, it makes sense to ask yourself, “Can I see myself owning or running this business?”  If you have serious doubts about your ability or your interest to own or operate a given business, then you might want to keep looking and find someone looking to sell a business that you are more comfortable with.

Clearly, owning a business is a major responsibility, and whether or not you have an interest in the store under consideration is obviously a major consideration.  No decision takes place in an emotional vacuum.  That means you have to consider, at least in some fashion, your own level of interest and understanding in a given store or business opportunity.

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