Friday, May 20, 2011

The Benefits of Buying Vs. Starting A Business

From the International Business Brokers Associations (IBBA):

This is a great article from IBBA. To learn more about selling or starting a business, visit our website:

So you want to be your own boss.  Consider the options – work as an independent contractor…start your own business…buy an existing company. 
Certainly there are pros and cons to each option.  If you do a careful analysis, you’ll learn what many seasoned entrepreneurs have discovered…the risk-to-reward ratio is tipped in your favor when you purchase an existing business.  
Admittedly, as an independent contractor, your risk is minimal.  The up front investment and overhead costs are limited.  However, without the ability to leverage the work of an employee base, the returns are limited by your own personal capacity.
Starting a business of your own can pay great dividends, but it’s important to understand that the risks are significant.  Most start-up businesses will falter and eventually die.  According to Michael Gerber, author of The E-Myth Revisited, 40 percent of new businesses fail in the first year and 80 percent fail within five years. 

On the other hand, purchasing an existing business reduces an entrepreneur’s risk while creating opportunities for tremendous profit. 

There are a number of reasons to consider the purchase of an existing business rather that starting one:  
  • Proven Concept.   Buying an established business is less risky – as a buyer you already know the process or concept works.  Financing a purchase is often easier than securing funding for a start-up business for that very reason—the business has a track record.  A bank will be able to look at the historical results for the business, not just rely on projections.   
  • Brand. You’re buying a brand name.  The on-going benefits of any marketing or networking the prior owner has done will transfer to you.  When you have an established name in the business community, it’s easier to place cold calls and attract new business than with an unproven start up.  That’s an intangible benefit that’s difficult to put a price on.
  • Relationships. With the purchase of an existing business, you will also be buying an existing customer base and vendor base that took years to build.  It’s very common for the seller to stay on and transition with the business for a short time to transfer those relationships to the buyer.  
  • Focus.  When you buy a business, you can start working immediately and focus on improving and growing the business immediately.  The seller has already laid the foundation and taken care of the time-consuming, tedious start up work.  Starting a new business means spending a lot of time and money on basic items like computers, telephones, furniture and policies that don’t directly generate cash flow. 
  • People. In an acquisition, one of the most valuable and important assets you’re buying is the people.  It took the seller time to find those employees, develop them and assimilate them into the company culture. With the right team in place, just about anything is possible and you will have an easier time implementing growth strategies.  Plus, with trained people in place you will have more liberty to take vacation, spend time with family, or work on other business ventures.  When start-up owners and independent contractors go on vacation, the business goes too. 
  • Cash flow. Typically, a sale is structured so you can cover the debt service, take a reasonable salary, and have some left over to take the business to the next level.  Start up owners, on the other hand, often “starve” at first.  Some experts say start-ups aren’t expected to make money for the first three years.
  • Risk.  Even with all these advantages, some entrepreneurs believe it is cheaper, and therefore less risky, to start a business than to buy one.  But risk is relative.  A buyer may pay $1 million, for example, for an established business with strong cash flows of approximately $200,000 to $300,000.  A lending institution funds the transaction because historical revenues show the cash flow can support the purchase price.  For many people, however, that is far less risky than taking out a $300,000 loan with an unproven concept and projections that may or may not be realized.
Becoming your own boss always involves a risk.  When you buy a business, you take a calculated risk that eliminates a lot of the pitfalls and potential for failure that come with a start up.

Wednesday, May 18, 2011

4 Ways to Overcome Marketing Challenges Forever

From Marketguidepro

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4 Ways to Overcome Marketing Challenges Forever

Tuesday, May 17, 2011
For most small business owners, marketing is an overwhelming concept. They need marketing solutions that ensure a smooth-running, profitable business yet most don't know where to begin or how to focus their efforts. 90% of small businesses don't even have a marketing plan. It's difficult to reach your destination if you don't know where you're going! If you're a small business owner looking for ease, focus and marketing success, we recommend that you focus on just 4 tactics:

1-Establish a memorable and unmistakeable brand identity:
The secret to business success is determined by your ability to powerfully communicate your business with laser precision and your ability to deliver a clearly-defined and consistent experience. In a nutshell... it's called branding, and, when done right, it ensures a thriving business with all the customers and profits you need. The secret is to establish a powerful brand identity that sings distinction. And establish that identity before you launch any marketing activities.

2-Create a deep connection with your core target audience - your potential raving fans!
Who wants and needs what you have to offer? The only wrong answer is "everyone." If you're a pediatrician, you may see infants and children. Are they your target audience? No! They are your patients, but it's the parents you need to connect with to get the kids in your door. And it's not just any parents - it's a definite group of parents. In marketing, you get a lot more "bang for your buck" if you focus your spending on a well-defined group of people that you enjoy working with. The better you define this group, the more effective your marketing can be.

3-Design compelling offerings that pull customers in like a magnet.
80% of all purchase decisions are based on emotion. It's your job as a marketer to know how your customers want to feel and to get them to visualize how your services can meet their needs. People want to know, "What's in it for me?" Tap into the emotion and create offerings that touch your customers.

4-Craft A Personal, Workable Marketing Plan
Marketing is everything you do to make your product or service more visible, more desirable and more profitable. Your marketing plan will clearly define the big picture and provide focus and direction based on the 4 'P's of Marketing - product, price, place/distribution and promotion. Since 90% of small business owners do not have a plan, you'll have a leg up on your competition by crafting your personal, workable marketing plan to ensure that you reach your business goals.

Following these 4 criteria will transform any small business into a money-making machine guaranteed to grow your client list, sales and profits. The upfront work is the secret to a million-dollar business, literally and figuratively.

Sunday, May 1, 2011

Sandvox websites reviews Discount Business Brokers USA

Sandvox ( ), a web creation software package for the Macintosh, has recently completed a review of Discount Business Brokers USA website. Our website was created using Sandvox. If you are a Macintosh user, I highly recommend this software. It is perfect for someone who knows just enough HTML to get themselves in trouble! You can see the review here:

You can visit our website here: