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The Truth About What a Buyer Really Wants When Purchasing a Business

Imagine you are going to take out a loan out from a bank and all your personal assets are going to be used as collateral and you will be putting a large sum of money down to buy a business.

Would you buy just any business or would you be particular about the business you bought?

Truth be known, buyers are particular and they are more particular today than ever before.

When reviewing a business, today’s buyers are looking for stable, solid, investment. They are quick to walk away if the information and numbers are not to their liking.

So what do buyer’s want?

This is not an easy answer. Buyer’s requirements change based on the market. Depending on the interest rates, availability of financing as well as the economic mood, the buyer may be more or less tolerant of risk.

Interestingly, often business owners think,”My business is a gold mine for the right buyer!”

Seller will often try to convince a buyer that with a little marketing you could make a fortune with this business.

The question of course that a buyer asks is: “Well, Mr. Business Owner, why haven’t you made that effort”?

Today’s buyers are not willing to pay the business’s potential. Business owners must take those steps themselves, which not only will increase their revenues and profits in the short-term, but will greatly improve the value of their business.

What buyers really want is reduced risk.

They want assurance that the business they buy will produce the cashflow they expect, not a projection.

So, here is a short list of what buyer’s look for:

  1. A well-run, stable business.
  2. Clean books and accurate tax returns.
  3. A well-marketed business.
  4. Loyal customers.
  5. High customer diversity.
  6. Contracts (if applicable).
  7. Reasonable seller financing.
  8. Structed business for growth.
  9. Unique businesses with sustainable models.

When a business owner considers selling their business, the 3-4 years before selling should be the best 3-4 years the company has ever had. Sadly, it is often the opposite. The owner waits until the market shifts or until they just can’t do it any more and the books like the business is dying. This is not the type of business that yields the highest selling price.

Before business owners considering selling their business, they should evaluate the opportunities for improvement and make those improvements so that a new buyer only sees a well-run business and is willing to offer a higher price.

How to Get a Business Credit Card With No Credit History

Having a credit card purposely for your business is very useful but getting a business credit card with no credit history can at times be of a little challenge. Almost every successful small business owner would attest to the importance of keeping family and personal finances separate from the business’ finances.

It is important not to mix purchases made for the business with those of the family or for yourself. This is the reason why it is important to get a business credit card that will be used solely for making purchases meant for the business’ daily operations.

So why is that most small business or family business owners find it a lot more difficult to obtain credit card financing? The reason is quite simple indeed. When a bank for instance loans you or your business money in the form of a credit card, they must be sure that you can pay back the money, with any interests that accrue.

And the only way they can make this decision correctly is from your credit score or rating. Now most small business owners do not have a credit history for their business. So it becomes difficult for lenders to approve a credit card in the name of your business. However, it does not mean you cannot get a business credit for your business – it is just a little more difficult. So follow these 4 steps to get a card for your business approved quickly and start building an excellent credit rating for your business.

1. Start from the local bank or credit union

Go to the local bank or credit union where your business has an account at. Most small banks are willing to offer a business credit card to new businesses that have accounts with them, albeit without a credit history. If they approve the card for you, it is an excellent opportunity you can build on and get a good credit rating for your business. After that it will be a lot easier to get any card you want for your business.

2. What if the first option fails?

If it does not work out with the banks or credit union, you can turn to large online or e-commerce retailers such as PayPal or Amazon. If for instance you have a PayPal merchant account, you can apply for a card from them that will help you manage your business’ finances well. So if this applies to you, consider making an application with them and see if it will be approved.

3. What about a secured credit card?

A secured credit card, registered in your business’ name may your next and best option about getting a card for your business. Most banks will give you this card if you have a savings or checking account with them. You simply deposit money into the account. The bank will then give you a card secured on the account.

Every purchase you make will come straight from the checking account. But the card has every feature and capability you would otherwise expect to have on a regular unsecured card. This way, like we stated in earlier, the bank is able to monitor your credit behavior or how you run the business’ finances. If over a period of 9 months, the bank feels your credit behavior is satisfactory, they may upgrade it to a normal credit card.

This is one of the best ways many business owners have been able to get a credit card for their businesses and have built excellent credit ratings for their businesses, and you can do same.

4. This is important and closely related to step 3 above. Ensure that any card you secure for your business is reported to the credit reference bureaus under your business name. Some credit card firms do not report secured business credit cards. And if it is not reported, you cannot build the good credit rating you need. This way you can begin to build a credit history for your business.

If you follow these steps above, you can should be able to get a financial card for your business in no time at all.

Use Your Small Business Website To Gain Leverage Over The Competition – Unlock What’s Inside

There are many arsenal tools of a Small Business, but by far the greatest is the Business Website. Without a business website for The Small Businessman it can be very difficult to reach your fullest growth potential. There are many benefits locked inside your business website. The key is to find them and unlock your websites potential to be a money making machine for your business. See if these 5 power tools can unlock the potential that’s inside your website.

Tool 1. The Small Business Website Can Be Designed & Structured To Build Business

The structure of a Small Business Website can be designed to bring a focus to what’s important to you company and to bring you more business. Using proper placement of things like opt-in forms, videos, picture images, pop-up pages, landing pages, color palettes, Facebook & Twitter shares & survey forms can not only make you website fun & exciting to see visually, but it can also move and flow traffic to different pages of your website. Website design & structure can lead customers to buying shopping carts, that can boost sales. Large images on a photographer or artist website can help to showcase work better. The right placement of color on your web pages can turn the attention of your customers and highlight sales, a special discount coupon, or a survey form you desire your customer to fill out. What ever strategies you decide to use, make sure as you are designing your website with a little more thought about website design & structure to bring business.

Tool 2. The Small Business Website Is Your Voice

The Small Business Website is the primary tool to share the voice of your company. Your business website should be from your point of view. How or What your company… Thinks? Feels? Wishes? Desires? So how do you accomplish all of this in one website? Through CONTENT! Content Management is your voice. Sometimes on a website it is design with a blogging system that allows you to post content regularly which helps generate a following or leads. For businesses like MLM’s, Direct Sales, or Service Businesses, blogging has a very inexpensive starting cost with a high return value. Share the voice of your business with the world and watch the financial benefits follow.

Tool 3. The Small Business Website Can Be A Leverage Tool

When you have a small business, using your website to leverage or give your business the upper hand over competition is a high priority. There are statistics by Google that show 66% of Small Business do not have a business website. OK… Breathe & Meditate on this for a moment… Ready? What this statistic is saying, is only 44% of people in your industry have a website that is in front of buying customers each day. So if you have a product like Organic Skin Care, or a specialized service for example Immigration Law, then you can see how a business website can almost immediately increase your leveraging power. And remember to use your VOICE… ie CONTENT for more leveraging power.

Tool 4. The Small Business Website Can Establish You As The Expert & Authority

Now that you know only a small percentage of people have a small business website in your industry, it’s easier to recognized how powerful a website can be, and how this can set you as the expert or authority in your industry. Posting articles on your website puts your company’s name in front of your customers or clients. In your article, give your potential customers information that is helpful to them. Provide information that helps them to make a better buying decision on products. All of these things establishes your small business as an authority and you as the expert. Each week by sharing vital nuggets and segments of key reviews, potential customer & prospects look to your business for critical answers.

Tool 5. The Small Business Website Can Be The Ultimate Advertising Billboard

Most small business have little to no advertising dollars. So one of the best and least expensive ways to advertise is through your website. It is the Ultimate Advertising Billboard. Creating Banner Ads, for example, can showcase what your business does, or what you have to offer can be place on your website to increase your sales. Often time websites are built only as an Affiliate Marketing site for just that reason. Also the cost to advertise in the newspaper, or in a magazine can be expensive, and your ad will only run a few time before you have to pay again. With a website, your ads can stay up for as long as you like. When someone is using a search engines, an optimized website can drive traffic right to the Banner Ads with just what your customers wants.