How Come A Small
Business Goes Over Better
Ever wonder why a small business seems to go over better find out why that might be the case.
small business,home base business,business opportunities,
Numerous times folks who are curious in opening their own business make the err of going in direction over their heads and the entire matter easily becomes a huge mistake. If you've ever wondered why a small business seems to just go over much better then you are definitely in the right place because in this article I am hoping to provide you with some of the answers to questions such as that. A small business does have some wonderful benefits, there is absolutely no doubt about that and I have seen on many different occasions that someone's small business always seems to become much more of a success than any of the larger businesses in that same area. Many times when someone does choose to open a small business and it only turns out to be the biggest mistake of their life, it is simply because they chose to jump into something without first giving it a great deal of thought.
Owning and managing a small business is much easier than trying to control every single aspect of any larger type of business and your stress levels will definitely be much lower if you could begin teaching yourself more about what it takes to make any business work. Maintaining a small business is really something that anyone of us could do but if you have not had the proper information given to you or have not spent enough time learning about every aspect of the business, you really are only setting yourself up for a huge financial disaster, which it surely did not have to be. Nobody goes into any type of business venture assuming that it is just all going to fail but most people that go into owning and managing any small business definitely has some little concerns about being able to keep it afloat. A small business can provide you with enough income that you would never need to work a second job for fears of not being able to afford everything. This is only possible however, for those of you who are truly committed to making the small business a huge success.
For anybody out there that is maybe considering delving into some type of small business venture, please make sure that you first speak with other business owners in your area to find out some of the small details that could really make you or break you. Knowing the important key things that could set you up for success is really something very important and if you give others the opportunity to advise you on some of the aspects of your small business, chances are you will not have to stay up all night trying to figure out how in the world you could ever possibly make ends meet. It is up to you to really make this a success because it will not happen overnight, have patience and plenty of drive, with those two things you are more than likely going to be smiling all the way to the bank!
How do I Value my
A guide to finding the value of your small business
Business, Small Business, Buy, Sell
The problem with selling any small business ($500,000 and below) is how can a realistic value be put on the business. If a business is valued too high no one will be interested or worse value it too low prospective buyers will think there is something irregular. Also where it is listed for sale is important, EBay is a tremendous medium for certain things however fraud is common place.
Unfortunately there is no fixed system when it comes to valuing any private business, the IRS, Courts of Law and the Inland Revenue all use there own systems. There are also many wonderful mathematical formulas that can be used; however there is no fixed system. To be honest the whole system is complicated with no fixed rule apart from one. What price is a person is happy to sell a business for and what is the buyer happy to pay?
If you are either buying or selling a small business do not be afraid of negotiation, it is a natural process within business. There are many good negotiation techniques; Maitland Kalton of Kaltons Solicitors London is considered an expert in this field.
The following list is a simple aid to assist people who are interested in finding a value of a business, either for the sale or purchase.
1. Does the business have employees either full time or part time? Prospective buyers should be aware that any business in the UK which employs 5 or more people has specific duties in regards to Health & Safety.
2. Is the business purely an internet business? Be warned it is very easy for an online business to appear to be doing very well, when the truth is completely the opposite. This practice unfortunately is leading to the devaluation of genuine online businesses.
3. Does the business have fixed assets or stock? It is much easier to value a garage where real estate and equipment can easily be valued, where as it is less easy to value a business with no fixed assets i.e. Legal specialists, Solicitors, Health workers etc.
4. Does the business have a full audit trail; it is surprising how many small businesses listed for sale do not.
5. What area is the business in; it goes without saying that businesses located closer to major cities are valued higher than businesses in a rural district.
6. What are the future growth prospects for the business?
7. Will the business require insurance/liability policies?
These are just a few factors that have to be considered, as you can see there is much more to take into account than how much revenue is generated by the business. I hope this short article has been of some assistance to any potential buyer or seller of any small business.
About the author - Peter Arkwright recently retired from the military, he is now the Managing Director of www.bizseller4u.com
A new portal that allows people to list their Business for Sale
This article is free for republishing
Guide To Small
Factoring is becoming a popular yet not so well known tool in the arena of small business. It is an important way of keeping cash flowing through the business when invoices are delayed or accounts receivable are higher than the money in hand. Basically factoring helps you get cash for your business without having that time delay from the time you issue an invoice. They also provide you with collection services and sales ledgers that can be helpful as well. If you are a small ...
Factoring is becoming a popular yet not so well known tool in the arena of small business. It is an important way of keeping cash flowing through the business when invoices are delayed or accounts receivable are higher than the money in hand. Basically factoring helps you get cash for your business without having that time delay from the time you issue an invoice. They also provide you with collection services and sales ledgers that can be helpful as well. If you are a small business owner, then you should consider this guide to small business factoring as a way to fund your business month to month.
How does factoring work? It is easy and yet complicated all at the same time. The factor will generally manage your sales ledger for you while also providing you with colletion services for all outstanding invoices. Typically you will be loaned 80% to 90% of the total amount of the invoice. You will generally receive the money within 24 hours of agreeing to the services of the factor.
Factoring for a small business does cost money, though. Usually there are a couple of different costs you have to consider. A service chare will usually cover the management of your sales and collections. The other charge is a percentage of sales factored as well as an interest charge of some sort on the cash advance the factor is giving you. The interest rates, obviously, will depend on your company’s credit, the credit of the invoiced companies, and the institution you factor through.
No guide to small business factoring would be complete without telling you want to look for in a factoring company. Obviously you should look for a stable financial institution that will be able to support the business. You should also look for good terms and a company you are comfortable working with since there will be plenty of interaction. Finally, you may want to consider a company that will give you internet access to your accounts. You can easily track the ledger, sales, collections, and your factored amounts that way.
It is also important to understand that no two factoring companies are completely alike. While much of what this guide to small business factoring has explained is typical, there are exceptions to most every situation. The best thing you can do for your business with regards to factoring is research the companies you are considering. Think about what you need and what you want and what everyone is offering you.
A guide to small business factoring can never be complete. There are too many ins and outs when it comes to almost any financial transaction. There are also a number of variables involved like current interest rates, your credit rating, reliability of your invoiced companies, and many other things as well. Before you ever agree to a factoring relationship, make sure you understand all terms as well as how long the contract is for and what renewal terms are. Protect yourself and do your homework and you can use factoring as a way to keep your cash flowing.