Individuals who want to buy a business contact business brokers and sellers.  How will the latter know who among these are serious buyers?  Who are the “time wasters”?  If you meet the following list of criteria, you are a serious business buyer.

· You know what you want.  As a serious buyer, you know the type of business you want to get into.  You want one that matches your skills and experience.  You also know where this business should be located.  You are not a “tire kicker” who inquires about businesses for sale and cannot make up your mind on whether to get into sales, retail, service, manufacturing, etc.

· You do not waste time.  You identify target businesses or acquisition prospects, do your research, and you are ready to make contact, set up appointments and visit these companies.  You meet with potential financial partners.  You discuss with the seller or broker important considerations.  You focus on businesses that are suitable for your background.

· You have realistic expectations.  You understand that there is no perfect business for sale and that you have to take on some risk. 

· You are “transparent” to the seller.  You disclose your identity as the buyer.  You are forthcoming about your reasons for wanting to get into the business and your financial situation or capability.  This will lay the foundation for building trust as the transaction proceeds.

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Your franchise brand can be its most single valuable asset.  It takes years to build a reputation and a name that is identified with your business.  AllBusiness.com has provided some tips on protecting your franchise brand.

What does all this mean for your franchise brand? A strong business brand is particularly important in a franchised network of businesses because it is the singular symbol and the common identity used to identify independently owned franchises to the public as one organization. The products and services offered by franchisees are all represented by the brand; it’s the one name that appears over everyone’s door.

Given its importance in any franchise network, great effort goes into promoting the brand and, of course, protecting it. Wise franchise managers know that their brand is as fragile as any person’s reputation. It can be irretrievably injured by bad decisions and bad behavior, and it can be sullied and devalued as easily as a jilted high school friend can start a gossip campaign.

Franchisors and their franchisees should take these four basic steps to protect their common brand:

1.

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There should be no surprises after you buy a business if you thoroughly studied and investigated the business.  What you should do now is to smoothly go through the transition phase as the new owner, and with the right decisions and actions, the business will thrive.

After You Buy a Business …

1.  Maintain the status quo for now.  Avoid disruptive changes that may confuse the staff or customers alike.  Gradually introduce changes and see how the employees and customers react. 

2.  Hire the former owner to stay for a pre-determined period during the transition phase as your adviser or consultant.  He or she can guide you through the daily operations of the business.  Observe, listen and ask questions.  The seller can introduce you to the employees, customers, suppliers and the landlord.  The presence of the former owner adds the much-needed stability, especially as far as the employees and suppliers are concerned.

3.  Learn the ins and outs of the business.  Talk to the employees, customers, suppliers and business executives in the same industry.  Know how the company is currently run.  Review the policies and systems in place so you can make amendments or revisions if needed.

4.  Meet with the employees about the future of the business.  Seek their support and assure them of their job security.  Get their feedback and suggestions on how to improve the products or services that the company offers and how to build the business.  They will be more effective workers if you involve them in drafting policies or improvements.  They will feel they have something at stake in the company. Let them get to know you and vice versa.  Be available to answer their concerns.

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Franchises these days are into all kinds of businesses - food, retail, clothing, repairs, salons, spas, services, are more.   The United Franchise Group has over a thousand franchises with a high percentage of success. The Palm Beach Post cites an IFA (International Franchise Association) Educational Foundation report that more than 90% of franchisee contracts are renewed.  This is a much higher success rate compared to start-up businesses that rarely last 5 years.

The advantage of a franchise is not in the variety of options, but the benefit of buying into a company that has an established reputation and customer base.

“Because it’s all been researched and developed,” United Franchise Group CEO Ray Titus said. “It’s being used successfully by people in the business.”

The West Palm Beach-based corporation has 1,400 franchises across five types of businesses and was recently recognized by the governor’s office and Enterprise Florida for business diversification.

More than 90 percent of franchises renew their agreements, the IFA Educational Foundation found.

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You will be surprised to know that franchisors consider other factors more important than one’s level of education as far as a franchise business is concerned.  Having a college degree does not ensure one’s success as a franchise owner.  There are “transferrable skills” that the franchisor can teach an individual outside of a formal education.  Below are excerpts from an article in All Business.

A bachelor’s degree is always a good thing to have. A master’s?  Even better. But, when it comes to owning a franchise, does it really matter whether you have a college degree or not? “Having a college degree is no guarantee of franchise success,” states Jimmy Hovey, who speaks from personal experience.

Five years ago, Hovey invested in a franchise with his parents, who have owned their own business for 30 years. Two years later, they had lost $500,000 and had to discount one of the three territories they had purchased. Hovey has an MBA, and yet that wasn’t enough to save him from investing in the wrong franchise. “At the end of the day, a franchisor is in the business of selling franchises,” says Hovey.

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A person buying or selling a business needs the temperament and correct negotiation skills to successfully close the deal.  It used to be that people think you are a good negotiator if you push for what you want and you get it.  This mentality is passé.  Today, deals are made by parties willing to find solutions to their differences.  The two parties at the negotiation table are not adversaries.  They do not attack one other, but rather they address the issues at hand. 

Here are some Business Negotiation Strategies:

1.  Prepare in advance.
Prior to beginning negotiations, study the business and the market trends through trade / industry publications, trade events and networks, and consult with those in the same line of business.  Knowing the industry statistics and analysis of the business arms you with information you might need to back up your offer or counter other proposals.  You can demonstrate that you know what you are talking about and you cannot be misled. 

2.  Listen to the other party.
Give the other party your attention and the time to say what is on the their mind.  You should refrain from making assumptions.  You can gauge the other party’s reaction and emotion to key issues so you can later respond accordingly.  The information you gather forms the basis for your questions later. 

3.  Kindness and diplomacy will go a long way.
Be genuinely kind and interested.  As the saying goes, “It is easier to attract bees with honey than with vinegar.”  Kindness is an advantage in business negotiations.  You gain credibility as well as the trust and empathy of the other party when you are reasonable, straight forward, fair and polite.

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You have dreamed of owning a business.  Now that you have found the right one for you, negotiate to buy the business.  You do not want to end up with terms that can ruin your opportunity before you even take over the business.  Negotiations will evolve so you must have an open mind and a “can-do” attitude to produce a deal.  Think about the points to be negotiated, what your position is and what to say to counter the seller’s comments.  Here’s how to make sure you get the best deal when buying a business.

Prepare for the negotiation. 
Study market dynamics, the competition, raw materials market, and industry statistics of comparable businesses that have sold to come up with the proper valuation.  Shop around for interest rates, loan terms, penalties, etc.

Assess your finances and structure payment accordingly. 
Know the maximum price that you are willing to pay for the business.  Offer the minimum amount that you reached through your own valuation.  Provide supporting reasons and proof on how you derived this figure.  Ask “what if …” questions to lower the confidence of the seller regarding his or her asking price. Use market fluctuations and economic factors to your advantage.  If a third party will finance the sale, make sure the sales deal is contingent on obtaining financing. 

Get as close as you can to the seller’s down payment figure but negotiate for some concessions in return.  You can ask for reduced interest on the balance of the purchase amount, a grace period of 3 to 6 months on the first payment, no interest for the first year, no penalties on early payments, and the like.  When you give something to satisfy the seller, you should get something you need in return.

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Valuing a business is a challenging aspect when buying a business.  How can you arrive at the right price for a business for sale?  Will you, the buyer, just rely on the asking price of the seller?  In most cases, the seller wants a price higher than the real price of the business because the former factors in the hard work and number of years he or she invested in the business.  It is up to you to decide if the price accurately reflects what the business is worth.  How will you arrive at a counter offer?  Here are some tips in valuing a business.

1.  You should learn how to read and understand income statements, balance sheets and other important financial records.  From the data reflected in these documents, you can follow the financial status of the business through the years.  These numbers can provide you with the basis in valuing the business.  Is the business growing?  Is it worth more now than last year or previous years?

2.  You can use the Asset Valuation method of valuing a business if you are buying a retail or a manufacturing business.  Calculate the fair market value of tangible assets such as equipment and inventory of the business, or the price to replace them.  If possible, use the replacement costs of the assets in the same or similar condition.  This method is usually used for companies losing money or with flat income.

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Buying a business requires that you, the buyer, make an informed decision before closing the deal.  Researching about the business starts the moment you are thinking about buying a business.  Start making inquiries from your friends and entrepreneurs in the same industry.  You should read trade and industry publications, and search the Internet.  If you like the preliminary information you heard or read from your initial meeting with the seller, make an offer.  If the seller accepts this, he or she will grant you a period of time, usually a month to several months, to access the company’s records and books.  Take this time to know everything about the company you intend to buy. Get a realistic picture of how the business is performing now and how it is likely to perform in the future.  This whole process is known as due diligence.

Why is Due Diligence Important?

· You approximate the value of the business for sale. 
By reviewing the financial, commercial and operational records of the company and analyzing the numbers, you can determine the appropriate price to counteroffer the seller. Make a list of all the assets, particularly everything you want from the business.  Are the company name, product brands and other proprietary assets included in the sale?  You do not want to be the new owner of a company with branded products only to find out that certain trademarks were not included in the sale. 

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With today’s rising unemployment, there is a corresponding rise in the number of prospective buyers looking for businesses for sale.  Most people dream of owning their own business, being the boss, setting the rules, controlling their lives, and earning for themselves.  Starting a business can be difficult.  You have to spend a lot of time and money coming up with an idea or service; testing it; developing its production or operation, marketing and selling it; hiring people; finding a location; sourcing equipment and vendors, and attracting customers.  Many of these start-up frustrations are bypassed when you buy an existing business.  There is no better time than today to pursue your dream of owning your own business.

Why should you buy a business?

1.  The business has immediate cash flow from day one.
You start earning as soon as you sign the purchase contract.

2.  Existing customers are already in place.
Start-up ventures sometimes fail because customers do not come for some time despite the initial investment and the work you put in.  Contrast this with an established business that has a loyal customer base.  You should keep your customers by maintaining the status quo for some time before introducing any changes.

3.  The risk of business failure is lower.
Buying an established business with ongoing cash flow, proven systems, a known brand, existing customers, and a good reputation is less risky than starting a new business.

4.  People know the business brand and logo.
You do not need to introduce the product or service because the public is already familiar with the brand or image of the company. The company name and logo are integral to the value of the business. 

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There are some steps in the business for sale process that benefit both the seller and you, the buyer.  These steps protect the seller from “time-wasting” buyers, and the buyer from acquiring lemons.  One of the most important questions when buying a business is “Can I see your financial statements?”  Numbers provide vital information to help you decide if you should buy a business.  Even if a seller has placed the business on the market, he or she remains reluctant to share highly confidential and sensitive records to any potential buyer.  If the seller thinks you are a credible prospective buyer, he or she will let you sign a business non-disclosure agreement before the company’s proprietary information will be opened to you.

What is a Non Disclosure Agreement?

This is a standard legal agreement presented by the seller to the buyer to protect the former’s business if a potential sales deal falls through.  This agreement gives both parties room for an open and honest atmosphere that may lead to a successful transfer of ownership of the business.  The NDA is solely for the purpose of selling and buying a business, respectively. 

The potential buyer cannot talk about the business to anyone, except to the parties included in the NDA, use gathered information, steal customers and employees of the business, nor use the information for commercial advantage.  The seller can control the flow of information and protect its confidentiality. 

What are the Benefits of a NDA to the Seller?

The seller avoids sharing operating and financial data with any potential buyer.

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There are so many types of businesses for sale. But how do you know what is the right business for you? You, your friends and family have some idea about the type of business that is right for you. Consider the pros and cons. If you make the right choice, you can have fun, fulfillment, control and money at the same time.

Here are a few questions to help you choose the right business for you:

1. What do you want to do? What are you passionate about? For example, if you are into arts, buy a business selling art supplies, paintings, books, art lessons, framing, etc. You can be earning while doing what you enjoy.

2. Will you sell products or offer a service? If you want to sell an existing product, consider how to improve it. Offer the product to a new market or put a unique spin on it. If you want to offer a service, you should know what pleases your customers and how to address their needs, so they keep coming back. The right idea for a business should excite you and your market or customers alike. Find out what they want and give it to them.

3. What do you do best? Get into a business where you can make use of your interest, expertise, previous work experience and training. What are your strengths? Focus on making the business grow rather than on learning a new skill and probably making costly mistakes along the way. Think of your hobbies and what you do in your spare time. Can these be developed and be profitable? For example, if you know a lot about computers, you can sell computer units, peripherals and accessories, or offer repair and programming services.

4. What suits you? What business do you want – retail, manufacturing, service, home-based, online, etc.?

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It is to the buyer’s advantage to understand the owner of the business for sale.  When the seller believes you are the right person to buy the business, he or she will try to make the deal happen even to the extent of structuring the terms to accommodate you.  Here are some tips on how to purport yourself to the owner of the business that you want to buy:

1.  Put yourself in the seller’s shoe.  Factor in the human element in the negotiations.

The seller may have the same level of anxiety as you do regarding the transaction.  Selling the business is a monumental emotional decision on the seller’s part.  So much is at stake – years of hard work, sacrifice and probably, all or most of the family’s fortune.  Tread with respect. 

2.  First impression is critical.

Do your homework so you are prepared for your initial face-to-face meeting.  This is like the proverbial first date or first job interview. Be on time and properly attired.  Do not be a “difficult” person.  Try to make the discussion a positive experience.

3.  Be sensitive to the owner’s apprehensions.

Gauge the seller’s reaction to key issues.  Nod every now and then and reassure the seller that you understand his or her concerns.  Do not be a cold, rigid and demanding buyer.  The seller may react negatively and throw you out, telling you not to come back.

4.  Understand where the owner is coming from.

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While you may be at the very beginning of your research, you should know what you ultimately need to consider after you’ve done all your research and are ready to sign and move forward. Question: Does the franchise offer a product or service for which there is a viable, long-term market in your area?

Viable market can mean many things to many people.
I’m often asked,   “Has the Franchisor has done the market research in my area to see if this is gonna work?” Are you kidding me? Most franchisors have barely done it for their own market let alone your neighborhood. I believe some good old-fashioned leg work (some online research is OK too) – BY YOU- is in order before moving forward with a concept if you don’t believe in your heart of hearts that there is a market for the product or service in your area.

I also hear “Well, my area is different than Corporate’s.” Really?
Well, depending on the business, that may well be true. One thing to look at is the competition. How many real vs. perceived competitors are there? NO COMPETITORS in your area? Either that is a good sign or a very bad sign depending on how you look at it. Let me share a story with you…

Two shoe salesmen go to Tahiti. They both get off the boat and immediately notice something – NO ONE IS WEARING ANY SHOES! The first one calls back to his office dejectedly saying, “Cancel the orders, I’m coming home tomorrow, NO ONE HERE IS WEARING ANY SHOES!” The other salesman calls to his office excitedly, “DOUBLE THE ORDERS, TELL MY FAMILY I’LL BE HERE FOR A MONTH, NO ONE HERE IS WEARING ANY SHOES!” THAT, my friend, is who the franchisor is typically looking for.

Is it a B2B product or service? Do you feel comfortable calling on other businesses or would you rather just deal with consumers as customers.

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Closet Tailors is a business experiencing massive demand and is in need of individuals to help them cope. As such, they are looking for people who desire to run their own franchise business. This is a fabulous chance to take full advantage of training, support, and financial assistance to run your own franchise and capitalize on the major rewards that are available.

About Closet Tailors
Closet Tailors is a specialist in the organization system industry. It is perhaps one of the few truly interesting opportunities that any entrepreneur may have to establish a business within that industry. The niche really is in demand, given the fact that people constantly need more storage space. As a result of increasingly busy lives, fewer people have the time and energy to sort out and maintain the large number of belongings that can be squeezed into any home without producing clutter. Closet Tailors provides a custom solution to that problem by producing unique storage systems within any given home.

Created by Home Franchise Concepts Inc., Closet Tailors is an incredibly successful business because of the level of personal customer service offered to clients. Company representatives go into a home and discuss designs, measurements, and professional installation of the custom-designed solutions that every homeowner wants. As you can imagine, this opens up an excellent and profitable opportunity for entrepreneurs.

Franchisee Benefits With Closet Tailors
Because they are incredibly dedicated to advancing the company, Closet Tailors offers a vast array of benefits.

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1-800-DryClean is a profitable and established business that is currently offering an opportunity to apply for a franchise within the United States. If successful, you will run a 1-800-DryClean franchise of your own and be eligible for third party financing if required. You will also enjoy ongoing training and support throughout your partnership with them.

About 1-800-DryClean
1-800-DryClean prides itself on being a staple of the dry cleaning industry and one of the most dominant businesses in the market today. This has been the case for some years now as a result of the business format that this particular franchise takes. It prides itself on providing convenience to its customers on a daily basis because the rest of the market is just not cutting the mustard. Instead of requiring customers to drop off and pick up their dry cleaning, 1-800-DryClean literally removes the hassle from the whole process.

With the 1-800-DryClean phone number, the customer calls and the local service will pick up and drop off the dry cleaning as and when needed. This door-to-door service provides convenience at an affordable price and takes a huge chunk out of the $10 billion industry as a result!

No Experience Required
You do not have to be a dry cleaner to take advantage of the 1-800-DryClean opportunity at all because you will be working with a local dry cleaner to provide the service. You are simply required to ensure that the dry cleaning is picked up and dropped off. As such, any business minded individual can make the most of this opportunity.

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Coverall Cleaning Concepts is offering franchise opportunities to those looking to run their own business. They are accepting applications to join their franchise from those qualified to take the company forward, providing a package of comprehensive benefits in return. Such benefits financial assistance, training, and support to all franchisees, thus making this opportunity irresistible. Take a look below to see why this could be the chance you have been waiting for. 

About Coverall Cleaning Concepts
Coverall Cleaning Concepts is a huge company, with more than 9,000 franchise owners spread across 90 regions of the world. They have 45,000 regular customers worldwide, and there is great potential to reach even more given the fact that demand is significantly higher than supply, which has necessitated this expansion. Coverall Cleaning Concepts enjoys the best reputation by far in the commercial cleaning industry, and it is experiencing rapid growth in this sector.

Coverall Cleaning Concepts pride themselves on offering high-value services to all sorts of commercial locations, from retail to warehouses to offices, and so on. There is an impressive range of services available as well. The company’s phenomenal business model provides franchisees with the best possible start in the cleaning business, partly because it has been specifically developed to encourage entrepreneurial advancement.

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A+ Nannies is a progressing business that is seeking individuals to join the company as franchisees. This opportunity includes full training and support, and you will also have access to third party financing assistance. With franchise opportunities across the United States, now is the time to consider owning and operating your own business. Read the outline below for an overview of this opportunity and then you may request additional information for more specific details.

About A+ Nannies
A+ Nannies is an organization that works with families to find the best possible nanny for their children. There are no employees because it does not act as an agency but rather as a go between to find the most suitable candidates for nanny jobs all over the country. A+ Nannies ensures that the individual nanny has been fully screened before accepting a position to ensure that families can have peace of mind that their little ones are safe. For example, they will perform background checks, ask for references, verify qualifications, and complete a pre-screen interview. After this stage is complete, the individual nanny may then do the following for a family in need:

• Full/part time permanent roles
• Temporary nannies for school breaks, sick child care, and vacations
• On call babysitters at hotels, for special events, and even date nights
• Post-natal helpers to give mom a helping hand after giving birth

A+ Nannies provides an essential service and you can tap into that and make children a little bit safer, as well as benefit on the business side.

A+ Nannies, A+ Benefits
A+ Nannies is a worthwhile business to invest in because it provides an essential service.

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10 Minute Manicure is an excellent franchise that has consistently won awards for the opportunity that it offers, and now they are looking for suitable businesspeople to join the franchise. They offer third party financing assistance if you need it as well as training and support to get your business career off to a good start. Applications are accepted from Florida, Alabama, Georgia, South Carolina and North Carolina at the moment, so please request further information to avoid disappointment because these opportunities are in high demand right now!

About 10 Minute Manicure
10 Minute Manicure offers a service that taps directly into the modern lifestyle. Very few people can afford to spend an hour in the salon these days because there is so much to do. As such, 10 Minute Manicure makes it possible to do exactly what the name suggests - have a 10 minute manicure.

10 Minute Manicure is a fantastic concept that has been around for some time now and taps into the heart of the health and beauty machine that generates billons of dollars every single year. They offer high quality services in a quick and easy individual session. Outlets are located at airports, retail areas, close to office buildings, and in other similar locations that are easily accessible and readily available when you have 10 minutes during lunch or after work to fit a manicure in. As such, anybody wanting a manicure but without the time to book into a salon can have one on their terms, and that means a lot where the business is concerned.

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ColorAll Technologies International is offering a great opportunity for individuals seeking to invest in a successful franchise. This is an excellent offer if you wish to run your own business and benefit from the backing of an incredibly well known brand. All the training and support you need comes as part of the package, and applications are now being accepted.

About ColorAll Technologies International
ColorAll Technologies International is part of the auto repair industry, and it is the fastest growing company in the United States for onsite repair. Established in 1990, it was designed specifically to deliver its services to the homes or offices where people’s cars require paint touch-ups due to dents, scrapes, scratches, and other markings. Effectively known as “color reconditioning”, the services offered by the company soon became extremely popular with fleet services, car rental companies, owners of agricultural vehicles, and various other industries, as well as average car owners.

As a specialist in an industry with few rivals, ColorAll Technologies International has established an excellent reputation and great popularity from the quality work performed by its experts. However, demand is now such that they need more people to grow with their business, which is where you come in.

ColorAll Technologies International Franchise Advantages
As long as there are cars on the road and vehicles of all shapes and sizes are in use, there will always be a demand for ColorAll Technologies International services. It is a recession-proof business that does not fail. You can profit regardless of the economic climate, and the services provided by your business would save drivers and companies a great deal of money.

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