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Blue Sky

TODAY'S BUSINESS OWNER®
Volume 11: Issue 6
June 2010
Correctly Managing Your Business
Avoiding the Pitfalls of Handling Matters from Afar 
If you want your business to be successful, you have to be a good manager. The most critical element of doing so is being present in the business and seeing what is taking place.
 
You are only overseeing the business indirectly if you're staying away from the workplace, rarely paying a visit and focusing solely on reports and conferences.
 
If you want to manage your business right, avoid relying on fabricated data and focus solely on real data.
Embracing the Power of Knowledge
Maximizing on Talent and the Applied Knowledge to Gain Success 
Knowledge ImageBusinesses will grow quickly when they consistently improve their return on talent (ROT). By monitoring every employee's performance to see how they progress, you will gain knowledge in an important aspect of your business. Knowledge is one of the most important factors in a having a successful business.
Franchisor of the Month
The Franchise Showcase is designed to support individual franchises and existing small business owners by making franchise ownership more affordable.
 
Brightway Insurance
Brightway InsuranceThe Brightway Insurance business model leverages the clear opportunities for growth and profit in the insurance industry. We provide solutions to the current challenges with the consumer presented by a fractured delivery channel for quality insurance products.  
 
Setting Up for Selling Your Business
How to Develop a Successful Exit Strategy 
Recently, many entrepreneurs fulfilled their life-long dreams of buying a business. Others have seen their businesses grow gradually over the years. They are pursuits these business owners have enjoyed and cherished. However as a business owner, you have to remember there will be a time you will have to pass your dream along to somebody else.
THE VR BLOGGER 
Elements Needed to Become a Successful Business Owner
With any profession, there are certain characteristics that allow some people to excel over others that do not possess such traits. The business world is no different. There are key characteristics that allow business owners to make their businesses profitable, earn the respect of their employees and maintain success over a long period to where an owner can sell a business with a high resale value.
Highlighted Transactions
And New Engagements 
 Blue Sky

SUCCESSFUL TRANSACTIONS 

Independent Insurance Agency
VR Mergers & Acquisitions of Frisco, TX, a leader in the sale of privately-held companies, recently facilitated the strategic sale of an independent insurance company.
 
The transaction, which closed this month was handled by Michael Rubin, a business intermediary specialist.  
 
VR is celebrating over 30 years as the world's only network of full-time professional business intermediaries.
 
VR has sold more business in the world than anyone®.
 
 

Blue Sky

 SUCCESSFUL TRANSACTIONS 
 
Beauty Salon
VR Mergers & Acquisitions, located in New Haven, CT, the leading business intermediary firm in the area, has recently facilitated the strategic sale of a beauty salon.
 
Al Guthrie, a VR Intermediary, represented the seller throughout the transaction that was completed in June 2010.
 
VR is celebrating over 30 years as the world's only network of full-time professional business intermediaries that addresses the needs of small and mid-sized businesses.
 
VR has sold more business in the world than anyone®.
 
 

Blue Sky

NEW ENGAGEMENTS 
 
Aviation Parts and Supply Repair Center
VR Mergers & Acquisitions located in Miami, Florida, announced today it has been engaged by a an aviation parts and supply retail center to assist in facilitating the sale of their business.
 
This is a well-established aircraft instrument repair shop (FAA 145). They are also involved in simulator instruments and accesories. They have an extensive portfolio of clients built over 26 years. Go to VR Web Site for further details.
 
VR is celebrating over 30 years as the world's only network of full-time professional business intermediaries that addresses the needs of small and mid-sized businesses.
 
VR has sold more business in the world than anyone®.
 
 
Blue Sky 

NEW ENGAGEMENTS 

Fruit & Vegetable Distribution Center 
VR Business Sales in Northern Portugal, specializing in the sales and acquisitions of small and mid-sized businesses, has announced that the company has been retained to facilitate the sale of a fruit & vegetable distribution center.
 
The company possesses its own distribution, composed by insulated trucks (up to 26.000 kg) and vans, assuring the transport and distribution to the clients. Click here for further details and contact information. 
 
Celebrating over 30 years as the world's only network of full-time professional intermediaries, VR addresses the needs of small and mid-sized businesses.
 
VR has sold more business in the world than anyone®.

 
Blue Sky 

ADDITIONAL ENGAGEMENTS 
 
 

CLICK HERE TO ACCESS ALL VR BUSINESSES-FOR-SALE
Now is a Great Time to Become Part of VR!
Blue SkyWith baby boomers selling their businesses to retire and frustrated corporate executives and managers looking to buy a business to replace their corporate job, NOW is a great time to become part of VR!
 
 
 
VR Office
Panama City, Panama
VR Global Headquarters
One East Broward Boulevard
Suite 1500
Fort Lauderdale, FL 33301
Phone (954) 565-1555; Fax (954) 565-6855 
http://www.vrbb.com
 
Copyright © VR 2009-2010
In This Issue
Correctly Managing Your Business
Embracing the Power of Knowledge
Franchisor of the Month
Setting Up for Selling Your Business
THE VR BLOGGER
Ask a VR Intermediary?
Quick Links
Ask a VR Intermediary?
Why Should I Consider Doing Seller Financing?
 
Sam Eisel,
Oakland, CA
Dear Sam,
 
Seller financing has always been a part of business sales. It has become the best option to utilize when selling a business; especially, during these economic times. Even before the recent recession, either buyers don't have the necessary capital to obtain a business with cash, they maybe unable to borrow the money or reluctant to use all of their capital.
 
Problems Defining a Small Business 
The major contradiction with how the SBA defines a small business is they see any with fewer than 500 employees as one. The real small businesses generally have 10 or less with many only employing a couple.
 
The result of the small size has been the lack of interest by banks and other lenders of financing real small businesses. Meanwhile, small businesses in our country represent nearly 90 percent of all businesses in total. Because of their sheer numbers, if each of these hired just one additional employee, our unemployment would certainly disappear. Of course, we're simplifying here; but we're really not far from the truth.
 
Seller Financing Means Seller Confidence in Business
 Every buyer feels a business should pay for itself. A siren always goes off in a buyer's head when the seller is seeking cash only or wants the carry-back note secured by additional collateral or personal guarantees. This is perceived by the buyer in the seller not having confidence in their business, the buyer or both.
 
What most sellers do not understand is they can receive a much higher purchase price if they accept terms instead of only cash.
 
For example:
 
A seller who sells for cash only receives only 70 percent of the asking price.
 
However, a seller willing to accept terms receives 86 percent of the asking price - a 16 percent difference.
 
On a business listed for $150,000, the seller willing to accept terms will receive approximately $24,000 more than the seller only asking for cash.
 
The seller who asks for cash only receives, generally, a purchase price of 36 percent of annual sales. A seller accepting terms will receive 42 percent of annual sales.
 
If you're serious about selling your business, you should use seller financing as any VR business intermediary will tell you.
 
Why Sellers Fear Offering Terms
The main reason sellers are wary to offer terms comes from their fear the buyer will be unsuccessful. If the buyer stops making payments, the seller will be forced to either take back the business or forfeit the balance of the note. Sellers also feel they can do more with cash than with receipt of monthly payments.
 
How often do sellers need cash so they can buy another business? It may not be the real reason, but selling their business may be the only time they can obtain a substantial cash payment.
 
 
Every VR business intermediary is trained to alleviate the fears of seller financing by displaying the ways sellers can protect their investment. This includes some of the advantages of carrying the balance of the purchasing price. Also as important is how the deal itself is structured.

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