BUSINESSTOWN Buying and Valuing an Existing Business or Franchise

Buying a Business: 11 Critical Issues

Perhaps the most solid way to improve your chances of succeeding in your own business is to buy an existing business. If you put the same effort into improving an existing business that you would otherwise put into starting a new business, the results can be powerful indeed. Change Your Business Approach Most people, when... READ MORE

Buying a Franchise: Pros and Cons

The Pros Proven Business Model A huge positive of buying a franchise is the momentum and track record of the franchisor’s business model. Of course, it’s possible that the momentum is reversing or the track record is terrible, but this is all information that you can easily find and figure out. This is another great... READ MORE

Streetwise Advice: 6 Tips for Buying a Business

Inspect All Recent Tax Returns Insist upon seeing tax returns from recent years. All too often, you will be told, “Well, of course we underreported our sales . . . doesn’t everybody?” No, not everyone underreports income. I don’t! And it makes me mad that I am carrying on my back others that do! Be... READ MORE

12 Questions Before You Start a Business

Should I Start a Business? You may be asking yourself this very question. However, instead of trying to answer this broad question, I suggest instead you ask yourself the following list of 12 more specific questions. By answering these questions you will more easily and decisively be able to answer the broader question of “Should... READ MORE

Q&As: Buying a Business Franchise

Q: How does a franchisor make money? A: Usually, a franchisor sells the right to a franchise for a hefty fee over the actual out-of-pocket costs of setting up the business. Then the franchisor receives ongoing payments—usually a percentage of the sales, not the profits. Most franchisors also sell supplies and services to franchises. Q:... READ MORE

Q&A: Issues When Buying a Business

Q: I was planning on buying a small, highly specialized Internet retail business, but I don’t like the idea of paying the 12 times after-tax earnings that the business would sell for. Wouldn’t I be better off starting from scratch than giving away the first 3 to 12 years’ profit? A: Probably not. An up-and-running... READ MORE

10 Keys to Business Success

“If you’re like me, being upbeat—let alone envisioning a clear path to huge success—might not always come naturally, but by pushing yourself to think positively, to talk success, you can go a long way to turning success into reality!” Thinking Success Goes a Long Way Toward Being a Success If you picture yourself as someone... READ MORE