BUSINESS RESOURCE ASSOCIATES Janice E. Staropoli 13832 N. 32nd Street - ste D5 voice/fax: (602) 788-1922 Phoenix, Az 85032 e-mail: jesazbiz@cs.com
Today, for many of us, following "The American Dream" means owning your own business, much as owing your own home did 20 to 30 years ago.
There are many reasons why people buy a business.....
In the past many purchasers or small businesses were the traditional Mom and Pop who had been entrepreneurs all their working life, they moved from one business to another; or they were individuals winding down--filling the time between the end of their career and retirment.
Todays buyers are more sophisticated, better educated and they generally have more money available, but they are much more likely to be corporate exiles with executive or middle management experience looking to replace an income and build some equity.
There are even more reasons why people sell their businesses!
1. LOCATION 2. PRODUCT 3. MANAGEMENT
Government surveys show that over 60% of new businesses fail in the first three years. Businesses that pass this mark have usually found the right combination of product/service and location to garner continued success. Someone else put up the start up capital, the long hours, the tense nerves and waited patiently until the business became self sustaining and profitable. THE RISK FACTOR HAS BEEN SUBSTANTIALLY REDUCED !
An Ongoing Business Provides Two Necessary Components of Success!
1. A PROVEN LOCATION
+
2. PROVEN PRODUCT OR SERVICE
= POSITIVE CASH FLOW
you provide #3. MANAGEMENT
A BETTER CHANCE FOR CONTINUED SUCCESS!
U.S. GOVERNMENT PROVIDES ASSISTANCE and BENEFITS : and Repays your Investment!
Check with your financial advisors after the purchase, they can help you choose the benefits and features most valuable to you.
IF you can buy a business ....
for the amount you have to put down
and it will still earn the desire profit
THAT IS WHAT THE BUSINESS IS WORTH TO YOU !
Y O U BUY
The only monetary investment you have in a business is the down payment. The business pays for itself out of its CASH FLOW.
Institutional vs. Owner higher interest rate vs. lower interest rate higher down payments vs. lower down payment difficult credit check vs. simple credit checks personal collateral for loan vs. business is collateral no owner commitment vs. greater owner commitment
Statistics show that over 90% of all business transfers involve some form of financing provided by the seller. In most cases these arrangements will have already been made before you make an Offer to Purchase. Your BRG representative may be able to assit you in locating other sources of financing should that be needed.
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There are many methods used in the valuation of a business and they differ substantially between different types of businessess. Your BRG representative may be able to provide you with industry standards on the particular industry you have chosen.
Some of the more common methods are:
BUSINESS WORTH is highly dependent upon the Total Purchase Price and Terms agreed upon between an individual buyer and seller.
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What is involved in the Buying Process?
An Offer is always made in writing, it is your Agreement to Purchase upon certain conditions, it is accompanied by an Earnest Money Deposit. Our Office has forms that have been written and reviewed by experts in the field, they contain most of the necessary wording to achieve and smooth transition.
Your Offer can be contingent upon:
Contingencies are:
Contingencies are removed one by one as you are satisfied with each item. If they do not check out you have the Option to:
The Seller may also add contingencies: These are usually to approve the buyers financial statement, credit report, and check out the buyers experience and qualifications to operate his business. He is the lender and will generally ask the same questions of any financial investor.
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HELP YOU ACHIEVE THE AMERICAN DREAM
CONGRATULATIONS YOU'RE IN BUSINESS !!!