Recent Articles From EvanCarmichael.com http://www.evancarmichael.com/ http://www.evancarmichael.com/Buying-A-Business/919/Tips-on-Buying-a-Business-What-Can-You-Afford.html http://www.evancarmichael.com/Buying-A-Business/919/Tips-on-Buying-a-Business-What-Can-You-Afford.html What can you afford when it comes to buying a business? Let's do a reality check here. Unless you have some incredible experience at a top level in an industry and some kind of solid personal collateral to back you up, forget those that say you can buy a business with no money. It's not true even is you get Seller financing or bank financing. Somebody is putting up the money and your history is what gets you those people who will agree to back you. And if none of your money is involved then these are mid-market to large business transactions that require loads of experience to be considered. So unless you have that kind of experience and people to back you up with their money, you need to take a reality check and think about what you can afford. This article is a sneak peek at that thought process. http://www.evancarmichael.com/Buying-A-Business/919/What-exactly-is-a-Business-Purchase-Letter-of-Intent-or-LOI.html http://www.evancarmichael.com/Buying-A-Business/919/What-exactly-is-a-Business-Purchase-Letter-of-Intent-or-LOI.html What exactly is a Business Purchase Letter of Intent or LOI? This seems like a very scary document but actually it's not. Technically, a business purchase letter of intent is really a non-binding agreement that says "I would like to buy your business for an asking price of $XXXX with contingency stipulations A, B, and C but first I want to take a closer look at your business". Again, it seems complicated but it's really a very simple semi-legal looking document that gets the ball rolling. So let's take a look aT this very important document that protects the buyer while spelling out due diligence items, the initial offer and many of the details that will eventually be part of the final purchase agreement. http://www.evancarmichael.com/Buying-A-Business/919/Business-Buying-Pros-and-Cons.html http://www.evancarmichael.com/Buying-A-Business/919/Business-Buying-Pros-and-Cons.html Hopefully this list of business buying pros and cons will give you a picture of what you are facing. It will also answer the question of: Why would anyone bother to buy a business instead of taking one from the ground up? http://www.evancarmichael.com/Buying-A-Business/919/Why-Buy-a-Business-Vs-Starting-from-Scratch.html http://www.evancarmichael.com/Buying-A-Business/919/Why-Buy-a-Business-Vs-Starting-from-Scratch.html Not everyone can buy a business that nets the owner $100k+ a year. If that were the case everyone would. But, everyone does have the opportunity to build a business to that level or more. Using your skills, getting help where you need it and using the momentum of the business you purchase is the way to achieve that goal. Being prepared by having all of these items lined up before even looking for a business to buy is extremely important. If not... http://www.evancarmichael.com/Buying-A-Business/919/Are-You-Buying-a-Business-or-a-Job.html http://www.evancarmichael.com/Buying-A-Business/919/Are-You-Buying-a-Business-or-a-Job.html It’s amazing what a difference it makes to ask yourself the question “Do I want to buy a business or a job” when preparing to buy a business. To make sure you understand what I mean, let me briefly explain. Let’s say you are looking to get into the business of ... http://www.evancarmichael.com/Buying-A-Business/919/Bad-Economy-Now-is-the-Time-to-Buy-a-Business.html http://www.evancarmichael.com/Buying-A-Business/919/Bad-Economy-Now-is-the-Time-to-Buy-a-Business.html Well I guess we can all agree that the economy is not in the greatest shape right now. It has certainly been worse and like always, much of the hoopla of how bad it is really is driven by the media and the spin they like to out on it for a good story. This is the time when business savvy people don’t take cover but actually dig in. While other business owners are hiding from the possibly negative and money draining effects of a struggling economy, the go-getters are... http://www.evancarmichael.com/Buying-A-Business/919/Risks-of-Buying-a-Small-Business-Without-Help.html http://www.evancarmichael.com/Buying-A-Business/919/Risks-of-Buying-a-Small-Business-Without-Help.html Make no mistake; buying a business is no small task. That goes for huge entities to small businesses alike. Certain things like the amount of time it takes to complete the entire purchase as well as the price is much larger in a large or medium business versus small but, other things are much more intense with a small business purchase. One of those intense things is the... http://www.evancarmichael.com/Buying-A-Business/919/Financing-Tips-for-Small-Biz-Entrepreneurs.html http://www.evancarmichael.com/Buying-A-Business/919/Financing-Tips-for-Small-Biz-Entrepreneurs.html From start-ups to 20 year old companies, I am asked everyday to help people find financing for their companies. The answer is usually a function of the type of business, the time in business, the financial status of owners/business and what is needed to be accomplished with the money. I would like to lay out some basic guidelines and considerations when funding is needed. You will see that time in business has a big impact. http://www.evancarmichael.com/Buying-A-Business/919/Exiting-Your-Company-Gracefully.html http://www.evancarmichael.com/Buying-A-Business/919/Exiting-Your-Company-Gracefully.html Since you own a business or plan on having one in the near future, you have an exit strategy, right? Your answer is probably “No”, which is typical for many people in their first venture of working for themselves. Every owner will eventually exit their business… even if they run it until they die. But then what? http://www.evancarmichael.com/Buying-A-Business/919/Funds-for-Buying-a-Business.html http://www.evancarmichael.com/Buying-A-Business/919/Funds-for-Buying-a-Business.html Where will you find the funds for buying a business? Well, there are a variety of ways financing the buying of an existing business can be done, but only a few are even worth pursuing. Keep in mind that knowing how you will fund a business purchase should be on the top of your list of things to do while preparing for this new venture. If you have anything less than $25,000 in liquid assets available to use for a down payment, you will have a very hard time taking on a business worth buying. You would be better suited trying to start from scratch in a low entry cost industry such as a service or consulting business.