Your Company is capable of making money.
Very few business owners think they are making all the income their business is capable of making. In fact this is overwhelmingly the number one complaint that business advisors hear.
Occasionally a CPA will hear a complaint from their client that he is making so much money the government is getting rich off of him.
CPAs and tax attorneys love this kind of client because this is what they are trained for. Save the client taxes. Unfortunately many are not experienced in finding out WHY their client is not making enough money.
Have you ever heard the phrase? “If the problem is what you thought it was, it would not be a problem.” What exactly does that mean?
It means that asking the right questions will get you the right answers.
Let’s look this over very carefully. For example, let’s take a situation where the profits are down, and the sales are stable. What do you do first? Find out what changed? If you do not know what changed, you cannot put it back the way it was. Conversely if you know what changed you can use your experience to solve the problem and return to affluence.
The normal solution for a business, that is not making as much money as they were before, is to go to their banker and say. “I need money.” But this is not the solution.
Find the answers by clicking on this link Read more…
Do you know why your business is not making enough money?
/in Articles, Specialties/by Willard MichlinYour Company is capable of making money.
Very few business owners think they are making all the income their business is capable of making. In fact this is overwhelmingly the number one complaint that business advisors hear.
Have you ever heard the phrase? “If the problem is what you thought it was, it would not be a problem.” What exactly does that mean?
The normal solution for a business, that is not making as much money as they were before, is to go to their banker and say. “I need money.” But this is not the solution.
Find the answers by clicking on this link Read more…
What’s a good business to go into?
/in Business Buying Troubleshooting/by Willard MichlinBusiness Buying Opportunity: Should You Buy A Distressed Business?
/in Business Buying/by Willard MichlinEveryone wants to buy a good profitable business making over $100,000 per year. The problem is there are only a limited amount of these businesses on the market. The reason for this is everyone wants the same thing. The results is the pricing is too high and the availability is too low. Read more
Upfront Fees with Business Brokers
/in Articles/by Willard MichlinUpfront Appraisal or Valuation Fees by Business Brokers I live in California, where upfront fees are illegal. The way brokers can get around this in California is to charge for an appraisal and be paid for it. After the appraisal is completed, the broker can ask for and receive a listing. If the listing is […]
The Art of Getting Financial Records Before Signing a Letter of Intent
/in Articles, Business Buying, Specialties/by Willard MichlinHow to handle brokers wanting offers before due diligence We have all heard of “The battle of the sexes”. What is not as well-known but as difficult a battle “is the one between “brokers and business buyers” regarding getting a business’s financial information. This article will discuss: 1. How to get listing brokers to release […]
Protect Yourself From A Bad Purchase Agreement
/in Articles, Business Buying, Business Due Diligence Horror Stories/by Willard MichlinIt is important to protect yourself from forfeiting your deposit when you sign a purchase contract. This would seem to be a very obvious statement. Except, what is not obvious is that so few people know how to do that. The result of inexperience is that too many people lose their purchase deposit. The deposit checks vary from $5,000 to $50,000 or even more. Read more
Business Due Diligence or a Seller Warranty? Which is Better…
/in Business Buying, Due Diligence/by Willard MichlinThe seller told the buyer “The books do not show all the money, but I guarantee you that this business will clear $10,000 a month after taxes.”
How often have you heard these words? Wouldn’t it be great if you could actually get a guarantee from a seller when buying a business? You can. But you have to ask for it, and you have to give the seller a good reason for them to give it to you. Read more
Buying a Business: Disasters When You Don’t Have Your Own Agent
/in Business Buying, Business Valuation TIps/by Willard MichlinShould you allow a Dual Agent or Get your own buyer’s Agent? A Changing, More Aggressive Business Buying Market
Yesterday, I was reviewing a buyer’s signed escrow instructions.
He came to me after signing the escrow instructions and purchase contract, as his agent had said he should. His agent said he needed to hire someone to do the due diligence after he opened escrow. When I read the escrow instructions, I was shocked.
Read more to see how it turned out.
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Business Valuation Pitfalls: What is the True Worth of a Business?
/in Business Buying/by Willard MichlinI am often asked how can we determine the true worth of a business.
The first step to this process requires determining the actual profit of a business in the current market conditions. The second step is to create a value for the current income stream assuming it continues into the future or you may want to look at the profit potential of a business not based on the current business activities.
What is Seller’s Discretionary Income?
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Restaurant Business Ownership Advice: Is It a Good Idea to Buy a Restaurant Business In This Economy?
/in Specialties/by Willard MichlinHard to believe, but restaurants, fast food and other types of food manufacturing or food distribution businesses compose fifty percent of all small businesses sold. Fifty percent! This means a lot of you buyers are buying restaurants.