Business Sales - Selling your business

The whole process of business sales may seem like a difficult endeavor for a small business owner but with the right connections and the right people to help you, it becomes a worthwhile business adventure.   It is also a good idea to have some sort of a map or a list of what to expect so you can prepare for whatever comes around each corner.  

·         Business Valuation – knowing the value of your business.  You need your accountant and a business/financial adviser.  The value or your net worth is not just about numbers.  Financial statements tell more than that. Financial advisers and accountants are the people you can count on to help you understand what the values attached to the liabilities, assets, cash in bank (…etc.) imply.  And more importantly what it means to a prospective buyer.  This can be your starting point to determine your selling price. 

·         Hiring a business broker.  Business sales do not necessarily require a business broker.  It is ultimately your choice but hiring one puts you at a great advantage.     This is most especially the case if you sign up with one who is experienced and is backed by a company that  give certain business sales guarantees. Although you have to be wary of business brokers who wants lengthy exclusive contracts in exchange for the guarantees.  Make sure you have come to an agreement on all fees, charges and commissions before moving forward.  And do not be lured by lower rates as it does not guarantee better outcome.

·         Preparing for the sale.  Prepping up your business may take time especially for small businesses.  It is very much like selling a house.  You will need to put everything in order and improve on the strengths and downplay on the weaknesses.  In this phase of the process, your business broker can be a valuable source of information and advice. Their business sales experience is an asset that you can tap to reach your goals.  Depending on the current state of your business, preparations may take about a year or so. 

·          Marketing and Presentation.  This is the part where you wait and hope that your labors are not in vain.  It is also the phase when all work goes to the business broker.  It involves the marketing phase of the business sales - online posting, adding onto existing seller database, cold calling, and a variety of advertising mediums.  Interested buyers are then asked to sign a confidentiality agreement and your business is the presented to the pre-screened buyers.

·         Offer and Negotiations - This is the moment you are waiting for.  If you have found an offer that you are happy with, final negotiations are made. The business sales process is then concluded with the proper documents and finally the transfer of money to the seller and ownership to the buyer.  The transaction is completed with the help of your lawyer, accountant and the business broker.

Business Cash Advance – The Business Loan without the Stress

Growth is an inevitability that small businesses deal with from time to time.  It is a sign of progress but growth demands both time and money on the part of the management team.  For small businesses, this means the owner.  The time factor which includes careful planning and budgeting is the responsibility of the owner while the funding can sourced from a Business Cash Advance facility.  

According to the latest statistics, over 90% of businesses in Australia are small scale and over 60% is non-employing and 30% employs a small staff of at least one to twenty.  Business owners, often take care of administrative and managerial positions including book keeping and accounting.  Bank loans application and processes can be very time consuming and taxing for a single person to handle.  This is why Business Cash Advance is perfect for a small business that operates on a skeleton crew.

Business Cash Advance is a type of unsecured business loan as it does not require any collateral, minimal documentation and it only takes days to process.  All that is needed is proof of operations, and a minimum sales volume.  It is less like a loan but more of an investment on the business’ future growth.

One of the best features of a business cash advance is the re-payment scheme.  Since it is an advance based on the business’s future sales, you also make your payments based on the daily sales.  You do not need to guarantee a fixed month payment. It is unlike a bank loan that requires fixed monthly payments with corresponding due dates that incur penalties and surcharges if not met.  With the business cash advance, the payments will depend on your daily sales.  If your sales projection is accurate and there is indeed a significant growth in cash flow, then you’ll be able to pay back the funds sooner.

Another business cash advance feature that is stress relieving is that you do not need to put up collateral. And for small business owners, the usual collateral is a personal property such as a piece of land or their home.  Business cash advance does not tie any of your personal assets with the business’ debt.

The business cash advance facility lets you focus on how to reach your business goals without worrying how to get there.  It helps business owners do what they do best and let the business grow unhindered.

Business Funding Alternatives for Small Businesses

Small businesses are thriving despite the difficulties and challenges of the times.  This is because more and more financial institutions recognize the needs of small business owners and the sector’s importance in Australian economy.  Business funding requirements for small businesses are different from big corporations, not to mention there is a difference in business structure as well.  This is why traditional bank loans do not usually work for small businesses.

But because small businesses make up 95 per cent of existing and actively trading businesses in Australia, they have business funding needs that must be met.   And unlike big corporations, small businesses are much more dynamic and they engage in innovation activities more often than big companies.  Small businesses need business funding in smaller amounts but shorter term periods.

The survival rate of small businesses is lower but access to business funding has direct correlation to it.  The fact that most small business does not meet most bank requirements for business loans stifles their potential for growth and inhibits their innovation activities.  The need for better business funding facilities has been met recently more particularly through the business cash advance funding also known as merchant cash advance.

Merchant cash advance is a business funding facility that is easily accessible because the requirements do not include collateral, financial statements or business plans.  At a 95% per cent approval rate, small businesses have better chances to break barriers that hinder their growth and to meet their business’s full potential.

                This newest funding facility is the easiest to access and repayments are also easy on the pocket.  Payment is in the form of a pledged percentage of daily credit/debit card sales.  There is no pressure to come up with a fixed payment amount and there are no due dates to worry about.  Payment term may be from 3 months to 18 months.

                The merchant cash advance facility is the easiest to access and the easiest to repay, but it is not the only business funding resource that is available.  There are government grants, peer to peer funding and angel investment networks that may be tapped.  However, these funding resources are not easy to access as it needs quite a lot of planning and preparation to impress investors and there is a huge amount of competition for a small pool of funds.

                So, if you are thinking of putting up a new branch, or developing a new product or purchasing inventory or new equipment, do call a business cash advance provider and make inquiries.