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Buying And Selling Small Businesses [Extra Quality]


One of the most successful entrepreneurs, Ace Chapman, believes that buying, growing, and selling a business is always better than starting a new one. According to Ace, starting a business from scratch takes a lot of time and energy, and unfortunately, it may not bring in any money in the beginning.




buying and selling small businesses



Throughout history, people gathered at old-fashioned markets to trade goods. The amount paid for those goods was always determined through the process of negotiation. Yes, that goes for buying milk, chickens and clothes! Today, negotiation is a lost art since the price tag we see is what we expect to pay, with the exception of buying businesses, cars, and houses.


However, in a world of business, negotiation is still critical. Whenever you are buying or selling a business, effective negotiation techniques are essential to close the deal. While buyers search for low-priced businesses at favorable terms, business owners are interested in selling at the highest price possible. This is why effective negotiation should be a priority for both parties.


Another useful technique for buying and selling businesses is to be open-minded and willing to revisit certain points. Since this process includes numerous elements to be discussed and negotiated, changing opinions about some of them is usually expected. As the buyer learns more about different aspects of the business, some elements that were not negotiable earlier may make sense later on.


Invest your energy and time in keeping the buying and selling process moving forward, as diligence usually pays off. Remain confident and tell the other party what information you need and create sensible deadlines. Keeping the process moving forward will add value to your negotiations and keep everyone interested.


[12:50] - When deciding on buying a micro-business, you have to be able to put your rationality aside to see what the future of that business could become. You have to be able to see how much additional revenue you could make for that business and then convince the founder it's worth selling to you.


[28:25] - One of the real challenges with buying over micro-businesses is the potential technical debt you'll inherit and how that will impact how much of the product you'll need to rebuild completely.


Buying and selling for profit is nothing new. It has been around for thousands of years; the only difference is that the currency has switched from goats and bread to paper and plastic. With that said, however, there are two primary reasons why buying and selling has recently exploded from being the closely guarded secret of a few, to the popular occupation of hundreds of thousands of people worldwide, who are now buying and selling as their sole source of income. The first reason is the advent, wide acceptance and use of the internet, and the second reason is what I refer to as the new economy.


The proliferation of the internet gives entrepreneurs from every walk of life and from every geographic location access to a global audience of buying consumers, eager sellers, information, and resources as in no other time in history. The internet has not only made it easier to sell products into the global marketplace utilizing online sales venues such as eBay, e-commerce websites, e-classifieds, and e-storefronts, but to also source a nearly limitless number of in-demand products, which can be bought cheaply from domestic and overseas suppliers and resold for a handsome profit. Once this task was out of the reach of most small businesspeople because of the amount of time and money required to research and often travel to foreign and domestic product suppliers to inspect, negotiate, and ink an agreement. Much of that has changed. Now with the simple click of a mouse you can buy products cheaply from thousands of suppliers spanning the globe, and resell these same products worldwide through numerous online marketplaces, or locally through community retailing opportunities like your weekend flea market-all for incredible profits.


The new global marketplace has also created a second reason why buying and selling is not only the wave of the future, but also likely to become a large part of what makes up the new economy in industrialized nations such as the United States and Canada. It is no secret that manufacturing, technology and middle-management jobs continue to disappear daily, swallowed up by overseas economies with cheaper labor, raw product, and production costs. In fact, some studies suggest the job drain in these areas is occurring at an alarming rate, faster than most people, including politicians and policy makers, are aware of or care to admit. Call centers in India, furniture manufacturing in Indonesia and chemical processing in China. The resulting fallout in North America is a dramatic increase in the numbers of new small-business start-ups. Many people who have been or who will soon be affected by the new global economy have chosen self-employment as a way to keep in tune with changing times, make money, and secure their long-term future. History has taught us evolve or end up like the dinosaurs-extinct!


When you consider the advantages of a buy-and-sell enterprise over traditional retail or service-provider businesses, it quickly becomes apparent why many people have wisely elected to buy and sell, and why buying and selling will make up a large percentage of new business startups and the new economy. Consider some of these reasons.


The answer is simple-anyone. One of the best aspects about starting and operating a buy-and-sell venture is that everyone is qualified. Buying and selling knows no boundaries-anyone with a need or desire to earn extra money, work from home or to start and own a business can buy and sell, regardless of age, experience, education and financial resources. This is perhaps what makes buying and selling the ultimate self-employment option for the vast majority of people; it's cheap, easy, quick and proven to work and generate huge profits. Imagine the flexibility that buying and selling offers. You can buy and sell part time to pay off debts. You can buy and sell full time to replace your current income and in all likelihood earn more. You can buy and sell seasonally, enabling you to pursue other interests like travel. Or you can buy and sell to help supplement your retirement income and stay active in your golden years.


The potential to profit from buying and selling antiques is as great as the potential to lose money. Replicas, paying too much and purchasing items in poor condition are just three of the hazards you need to hone your knowledge and skills to guard against if you choose to buy and sell antiques. However, those who do take the time required to become antique experts are usually rewarded with big profits and gratifying work.


Antiques is a broad subject, so pick an area in which to specialize-furniture, art, farm implements or architectural antiques. The best places to dig up antique treasures include garage sales, auctions, estate sales and advertising placed by private sellers in the classifieds. Secondary buying sources will include flea markets, secondhand shops and online marketplaces. Always take along your antiques-hunter toolbox, which should include antique value guides, camera, flashlight, magnifying glass, angled mirror and measuring tape. The best way to sell for top dollar is directly to collectors via clubs, associations and shows. Next to selling to collectors, list on eBay and online antique buy-and-sell marketplaces, sell at flea markets, and sell directly from a home showroom supported by local advertising.


A great full-time or part-time income can be earned buying and selling new computer parts such as CDRW and DVD drives, hard drives, memory, audio and video cards, processing chips and motherboards. Buy from wholesalers and sell directly to businesses for upgrade purposes, from a homebased showroom/repair shop, and through various online marketplaces.


About the Author: Bob House is the President for BizBuySell.com, BizQuest.com and FindaFranchise.com. Bob regularly writes about small business transaction trends and best practices, including case studies on the real people that have successfully navigated the purchase or sale of their own business. Bob is a seasoned digital marketer with a high level of insight into small businesses and their operations, having owned and grown small businesses throughout his career.


Using BizQuest makes buying and selling a business less challenging and nerve-wracking than doing it independently. We take the guesswork out of the process, protect your identity, and ensure that your listing gets plenty of views. Contact us today to get started.


An SBA designation for businesses that meet size standards set for each NAICS code. Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business. See Title 13 Part 121.201 of the Code of Federal Regulations for more information


One of the most important considerations when buying or selling a small business is whether to structure the sale as an asset sale or a stock sale. Usually, the seller will prefer a stock sale, while the buyer will prefer an asset sale. Generally, small businesses are sold as asset sales. Stock sales are more common for larger business transactions.


If you are considering buying or selling a small business in New York, Regina Gordon Law Office can advise you whether to pursue an asset or stock sale, and help you execute the transaction. We serve clients online throughout New York State, including Long Island, New York City (NYC), Brooklyn, Manhattan, Queens, Bronx and Staten Island. To discuss your situation, contact us at 347-770-7507 or submit an online inquiry today.


Removing the requirement to register with the SEC and FINRA would remove a bureaucratic roadblock for M&A brokers. This would make their services more affordable and accessible to small business owners who need help buying or selling companies. 041b061a72


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