Tags |
|
|
Links |
|
|
Digg it UP - Why Selling a Business is Different from Selling Anything Else
You start by thinking that when exhibiting at a show, to market direct to the public or to trade, you will more than likely be stood within metres of your competition. If you were not exhibiting though, then your competitors will be there anyway so this point should not in anyway affect your decision to exhibit.- In terms of actual exhibiting, you know that you are dealing with a targeted market at exhibitions, with the people who do walk through the door; clearly people have chosen to attend such an event. This would suggest that they have some involvement or genuine interest with regards to your field.- If you have a genuinely good product, exhibitions also give you a very good sales environment on which to push f
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that
During my early days of employment in the late 80's, the company I worked with engaged a consultant to get the company certified in ISO9002 QMS. I was one of the working committee then. Training was provided, followed by documentation of all our processes. A simple guideline was given to us to "document what we do" and "do what we documented". During that time, this guideline was quite straight forward. So we did and the company obtained its ISO 9002 certification.In late 90's there was a rush into converting our ISO9002 QMS to meet the new ISO9001:2000 revision. I was told that this new revision is more align to business needs as well as less emphasis on documentation. On the business needs aspect, there is the "Eight
An Intangible Product
Just about everything for sale is a tangible thing. You can see what you’re getting. You know exactly what you’re buying. Unfortunately, this is not the case when it comes to selling a business.
Your business possesses a collection of tangible assets: your equipment, inventory, accounts receivable, etc. Contrary to what a lot of people believe, these are the items that bring the least value to your business.
It’s the intangibles - the assets that cannot be perceived by the senses - that make all the difference to a buyer. These are things like:
- Quality of management
- Uniqueness of business model
- Industry and market position
- Systems and procedures in place
- Quality of accounting and information systems
- Relationships with distributors & suppliers
- Customer loyalty and diversity
- Product/service quality and diversity
- Quality and morale of employees
- Patents, trademarks and other intellectual property
The value of these intangibles –that is, the amount paid by the buyer over and above the value of the tangible assets- is referred to as goodwill.
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that
"A group problem-solving technique that involves the spontaneouscontribution of ideas from all members of the group"-- Merriam-Webster DictionaryBrainstorming is one of many creative problem solving techniques. While you can use any size group, we believe it works best when done in a facilitated group of 5-10 people. The more diverse the group the more diverse the input. The group members don't need to be experts in your field. In fact, they don't need to know anything about the problem topic at all! The following steps I use in my Many Good Ideas Brainstorming Seminars:Step 1: Define Your ProblemYou need to get really clear on what your problem truly is (and is not). Keep ask
Your business possesses a collection of tangible assets: your equipment, inventory, accounts receivable, etc. Contrary to what a lot of people believe, these are the items that bring the least value to your business.
It’s the intangibles - the assets that cannot be perceived by the senses - that make all the difference to a buyer. These are things like:
- Quality of management
- Uniqueness of business model
- Industry and market position
- Systems and procedures in place
- Quality of accounting and information systems
- Relationships with distributors & suppliers
- Customer loyalty and diversity
- Product/service quality and diversity
- Quality and morale of employees
- Patents, trademarks and other intellectual property
The value of these intangibles –that is, the amount paid by the buyer over and above the value of the tangible assets- is referred to as goodwill.
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that
Shaping a business is an ongoing process. Just when you think you’ve got it sorted something else crops up to challenge the way you’re working. This doesn’t have to be a bad thing though and we can learn a lot from our experiences.I was talking to an electrician the other day who said that normally he enjoys his work and prides himself on a job well done. However, he’d responded to a cry for help recently – no electricity! Having established that it wasn’t a power cut, he proceeded to turn every appliance off but couldn’t find the fault. By this time he was running late for his next appointment so had to admit defeat and leave.This was obviously a less than satisfactory experience for him and the customer, and he wa
It’s the intangibles - the assets that cannot be perceived by the senses - that make all the difference to a buyer. These are things like:
- Quality of management
- Uniqueness of business model
- Industry and market position
- Systems and procedures in place
- Quality of accounting and information systems
- Relationships with distributors & suppliers
- Customer loyalty and diversity
- Product/service quality and diversity
- Quality and morale of employees
- Patents, trademarks and other intellectual property
The value of these intangibles –that is, the amount paid by the buyer over and above the value of the tangible assets- is referred to as goodwill.
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that
Just what is business debt consolidation and how could it relate to your business?Let's review the situation. You've started your own business that provides either goods or a service to the people in your area. The business was developed on a sound principle that was carefully researched in terms of the need for these services or these goods and how many competitors were in the area. The business delivers quality goods or service and your company has built up a small, but loyal, clientele base. It may be a relatively new business that, despite its growth, is still trying to break even. Or it could even be a fairly established business that has served the community for a number of years, but a recent local economic downturn
The value of these intangibles –that is, the amount paid by the buyer over and above the value of the tangible assets- is referred to as goodwill.
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that
What's It All About? The field of patent law is wide open to Biologists, Chemists, Engineers, Computer Scientists, and many other science and technology professionals. And it’s true; individuals with the proper science or engineering degree need only pass the Patent Bar to become registered Patent Agents. Upon becoming a Patent Agent, you may gain employment writing and prosecuting patent applications at law firms, technology transfer offices, biotech or engineering corporations, and government institutes. From there, you may decide whether or not to go on to law school and become a Patent Attorney. In addition to writing and prosecuting patents, a Patent Attorney can also litigate in patent in
So what does this mean to you, the seller?
The real value in your business is found in things you cannot see, hear or touch. As the seller, it’s your job to convince buyers that these things exist and will earn them profits. Bet you don’t have to do this with whatever you’re currently selling.
A Product With No Objective Value
A business is worth what someone is willing to pay for it. End of story.
Isn’t this true of every product? Sure. But with other products you have the ability to compare to other sales in order to set a price. How much is your house worth? Ask your realtor. She’ll quickly look up comparable sales, as will the buyer’s agent, and determine a reasonably accurate probable selling price. There is an efficient market at work for most commodities.
But not when it comes to selling a business. Although you will want to look at comparable businesses when trying to set a price, you have to keep in mind that there really are no comparable businesses. Your business is unique because of all those intangibles we discussed.
Sure, you can get opinions of value. You can get them from industry associations, business brokers, valuation experts, accountants, friends and even your spouse. And they’ll all be different. Each person who attempts to set a value on your business does so through personal filters and judgments about what’s valuable.
How do you sell something when no one seems to know what it’s worth?
A Produc
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggitup.net/article/44488/diggitup-Why-Selling-a-Business-is-Different-from-Selling-Anything-Else.html">Why Selling a Business is Different from Selling Anything Else</a>
BB link (for phorums):
[url=http://www.diggitup.net/article/44488/diggitup-Why-Selling-a-Business-is-Different-from-Selling-Anything-Else.html]Why Selling a Business is Different from Selling Anything Else[/url]
Related Articles:
What All Homeowners Need To Know About Los Angeles Mold Removal
Advertise Your Bookkeeping Business - 7 Easy Ways
5 Easy Steps to Conference Calling Provider Selection
Bookmark it:
|