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Buy, Sell or Start a Business |
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BizforSaleMarket.com is a business for sale information resource and directory for buying a new business or business opportunity, exploring business start ups, researching franchises or selling your existing business. Find the best businesses for sale or business opportunity with top ranked business for sale websites ranked by Alexa and social bookmarking. |
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Buyer Tips - Business Structure - A Limited Liability Corporation(LLC) is one of the most popular business types. It provides legal protection and is relatively easy to operate.
- Financing - Most business purchased are financed by combination of a SBA loan, new owner equity and seller financing. If a seller is not willing to finance a good portion of the sale, the business may not be as solid as represented.
- Rules of Thumb - "Rules of Thumb" from the book, "Business Reference Guide" by Tom West, is an excellent source for understanding the how different businesses are priced. Business brokers use this book as a good guide on selling a business.
- Due Diligence - If any business income can not be verified, it never existed.
- Management - Poor business management skills are often cited as the #1 cause of small business failures. Inadequate business financing is a close second.
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Seller Tips - Rules of Thumb - "Rules of Thumb" from the book, "Business Reference Guide" by Tom West, is an excellent source for understanding the how different businesses are priced and how businesses are actually sold.
- Pricing - Most business are priced as a multiple of the seller's cash flow which is the annual cash flow actually available to the owner of the business. Businesses generally sell for 75 to 85% of the asking price, so you sold price your business accordingly.
- Market - Only about 1 in 5 businesses opportunities are actually sold. So be flexible in your negotiations with potential buyers.
- Business Broker - A business broker's fee is generally 8 to 10% of the sale price for businesses priced under $1 million.
- Pricing - Unreasonable pricing is often cited as the number 1 reason a business does not sell.
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