14 Jul Around the Web: A Week in Summary
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A recent article from Forbes entitled “Three Things To Consider When Deciding If It’s The Right Time To Sell Your Business” explores the common question “When is the right time to sell my business?” This is a great question because timing is very important when it comes to the sale of a business.
When considering the proper time to sell, think about the following factors:
- The Rule of 130 – Add together your age and the percentage of your net worth that’s tied up in your business, and if the sum is 130 or greater, it might be time to start thinking about selling.
- Your Post-Sale Options – Do you want to stick around the business in a reduced capacity, move on to something else, or retire?
- The State of the Economy – How are the current economic conditions affecting your company’s earnings?
A recent article from Small Business Trends entitled “Chris Hurn on Using SBA Loans to Buy an Existing Business” explores funding options for the purchase of a business. One option is a loan backed by the Small Business Administration.
When it comes to SBA loans, here are some important highlights:
- Down payment requirements for SBA loans are typically much less than that of conventional loans
- Loan terms for SBA loans are typically much longer than that of conventional loans
- SBA 7A Loans are more flexible since they can be used in several ways such as business acquisition, partner buyout, franchise financing and equipment financing
A recent article from Forbes entitled “Planning The Future Of Your Business: Exit Strategies And Warnings For Entrepreneurs” discusses potential options business owners have for exiting their business and related cautionary considerations.
Three major exit strategies include selling the business to an outside buyer, transitioning the business to a family member, and executing a management buyout.
Important warnings include making sure you don’t fall for outside interest in the business if you’re not actually ready to sell and not allowing the exit to become your main focus.