What financing programs are available to help me start or expand my business?
For a listing of some available information and funding programs, see the SBA website, www.sba.gov.
Should I incorporate my business?
If you are thinking of incorporating your business after an asset purchase, there are a number of business, legal and tax considerations to consider. The general answer is that you should incorporate and choose a form that avoids double taxation at the corporate level such as a Subchapter S corporation or an LLC.
What is a business plan? How do I prepare one?
A business plan is a written document that describes all aspects of your business or your proposed venture. It includes information about you, your product or service, your customers and competition, your marketing strategy, your management team and your finances. Basically, it is a map of your business future.
How are businesses priced?
Most sellers have some idea about what they feel their business should sell for and this is certainly taken into consideration. However, the business consultant is familiar with market considerations and, by reviewing the financial records of the business, can make a recommendation of what he or she feels is the likely market value. The more cash demanded by the seller, the lower the selling price; the smaller the cash requirements of the seller, the higher the price. Many business sales are seller-financed, the down payment and terms of the sale are very important. In many cases, how the sale of the business is structured is more important than the actual selling price of the business.
What should I look for?
Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. You also want to consider only those businesses that you can afford with the cash you have available. In addition, the business you buy must be able to provide you with enough income, after making payments on the purchase, to pay your bills. However, you should look at a business with an eye toward what you can do with it, how you can improve it and make it more productive and profitable.
