17 Jul Around the Web: A Week in Summary
A recent article from Exit Oasis entitled “How To Vet Business Buyers & Weed Out The Wrong Ones” provides business owners with a framework for covertly analyzing the legitimacy of a buyer’s interest and ability to carry out a reliable deal.
It is becoming increasingly common for business buyers to feign interest in a company with ulterior motives in mind. For instance, an individual may simply be looking for industry insights, gathering information for a competitor, or looking at a business they could never actually afford. Or they could be leading you on and using tactics to wear you down and barter down the selling price. Whatever the situation, it’s important for a business owner to be able to identify these individuals and to skillfully weed them out. This goal can be accomplished through building awareness and asking each potential buyer a series of inconspicuous questions that will make their intentions clear.
A recent blog post from Allan Taylor Mergers & Acquisitions entitled “The Real Reason Entrepreneurs Don’t Take Vacations” explains how a business can lose value if it is too dependent upon the owner to run.
For business owners, the ability to have freedom over their time is often high on the list of reasons people started their business to begin with. However, as time passes, it is easy to get sucked into the day-to-day of running a business and wind up working even when you are ‘on vacation’. The battle between maintaining profitability and hiring management is a real one, and has a major impact on both the value of your business in the long run and your quality of life as the owner. If it’s been quite some time since you have taken and enjoyed a vacation as a business owner, then it’s likely time to start reconsidering some things. Your business’s ability to run without you present is directly correlated to its value as a sellable business.
A recent article from Small Business UK entitled “3 things to consider when buying a business” examines critical factors to take into consideration when you are looking to buy a business and why these factors are important.
Consider these three things when looking for the right business:
- Appeal vs. Viability – Your motivations for owning a business are important. Whether you’re looking to make money or trying to fulfill a dream, it’s important to weigh your options and not allow your motivations to cloud your judgement.
- Hidden Costs – While maintaining a good relationship with the owner is important, it’s just as important not to hesitate to ask relevant questions regarding the business. It’s not a good position to be in to find out you have expensive repairs or crashing systems to replace after you’ve signed yourself into ownership.
- Get a Second Opinion – It’s always prudent to call in an extra pair of eyes who might catch something you’ve missed. A business transaction professional will also be able to provide insight through their experience that can help you out in the long run.