Have you had a recent decline in sales and/or profit in your business? It's so important to know what the full story is behind the numbers. An economic slump, a dying industry, and new competition can all play a role in decreased sales. Sometimes, there may also be a postiive story behind the scenes.
Maybe you've been really burned out and hired additional employees to help carry the load. Perhaps the street was torn up for a period of time. A bit of investiation might uncover a legitimate reason for a decline in sales and/or profits. This would be important information in regards to selling the business and also an area that a professional broker can help uncover.
courtesy of Business Brokerage Press
Showing posts with label small business. Show all posts
Showing posts with label small business. Show all posts
Friday, August 31, 2012
Friday, August 17, 2012
Check out Fox Small Business Center's article on alternative lending options for entrepreneurs
There is much talk these days about the rise in alternative lending sources since the credit crunch really started to squeeze small businesses in late 2008... here is a great explanation of four of those alternatives...
Published August 14, 2012
When the credit crunch began in late 2008, traditional banks tightened the spigots on funding for small businesses. When the big banks said no, small banks and non-bank lenders increasingly said yes. While big banks reject loan applications almost nine out of ten times, and smaller banks approved less than half of small business funding requests, alternative lenders filled the void.
According to Biz2Credit Small Business Lending Index (figures for the July 2012), big banks (institutions with more than $10 billion in assets) approved 11.3% of small business loan requests, while smaller banks gave the green light to 47.4%. Meanwhile, non-bank lenders picked up the slack. Credit unions approved 54.6% of requests, while alternative lenders, such as Cash Advance Network (CAN) and accounts receivable financers, okayed 61.4% of requests for funding from small companies.
So who are the alternative lenders? They are comprised of non-banks, such as credit unions, CDFIs, micro lenders and accounts receivable financers.
To read a full explanation of each alternative lender... click here to read the full article.
Four Alternative Lending Options for Entrepreneurs
www.smallbusiness.foxbusiness.comPublished August 14, 2012
When the credit crunch began in late 2008, traditional banks tightened the spigots on funding for small businesses. When the big banks said no, small banks and non-bank lenders increasingly said yes. While big banks reject loan applications almost nine out of ten times, and smaller banks approved less than half of small business funding requests, alternative lenders filled the void.
According to Biz2Credit Small Business Lending Index (figures for the July 2012), big banks (institutions with more than $10 billion in assets) approved 11.3% of small business loan requests, while smaller banks gave the green light to 47.4%. Meanwhile, non-bank lenders picked up the slack. Credit unions approved 54.6% of requests, while alternative lenders, such as Cash Advance Network (CAN) and accounts receivable financers, okayed 61.4% of requests for funding from small companies.
So who are the alternative lenders? They are comprised of non-banks, such as credit unions, CDFIs, micro lenders and accounts receivable financers.
To read a full explanation of each alternative lender... click here to read the full article.
Tuesday, August 14, 2012
Costco's Small Business Article on Closing the Deal hits it out of the ballpark!
The following is an excerpt from a recent article in the August 2012 publication of The Costco Connection. This article on selling a business, in our estimation, hits a home run... with bases loaded!
The Costco Connection
August 2012; p22-23
When Tom Schraminski was selling his small healthcare firm, he joshed that he required "intensive psychotherapy" to cope with the aftershocks. Such was the roller coaster of emotions he confronted during and after what is often a life-changing event.
It can be very traumatic," says the Costco member, who now is a vice president for American HealthCare Capital, a Marina del Rey, California-based national mergers and acquisitions firm. It's not unusual for small business owners to encounter emotional swings when putting their "baby" up for sale. After all, many have poured their heart, soul, sweat, tears and identity into their enterprises.
Many small proprietors are skilled at operating their companies, but they're ill prepared for all that happens when it comes time to sell.
To read more of Costco's very insightful article and the eight steps for selling your business... click here. As seasoned brokers, we can tell you they are right on the money.
Closing the deal
Eight essential steps for selling your business
By Harvey MeyerThe Costco Connection
August 2012; p22-23
When Tom Schraminski was selling his small healthcare firm, he joshed that he required "intensive psychotherapy" to cope with the aftershocks. Such was the roller coaster of emotions he confronted during and after what is often a life-changing event.
It can be very traumatic," says the Costco member, who now is a vice president for American HealthCare Capital, a Marina del Rey, California-based national mergers and acquisitions firm. It's not unusual for small business owners to encounter emotional swings when putting their "baby" up for sale. After all, many have poured their heart, soul, sweat, tears and identity into their enterprises.
Many small proprietors are skilled at operating their companies, but they're ill prepared for all that happens when it comes time to sell.
To read more of Costco's very insightful article and the eight steps for selling your business... click here. As seasoned brokers, we can tell you they are right on the money.
Friday, July 6, 2012
Sell Now or Later?
By Ralana D Abraham, Business Broker
Sunbelt Business Advisors of Indiana
If you are considering holding off on selling your business you may want to reconsider.
Recently I have read several great articles and sat in on presentations expounding on tax implications, regulatory implications and the availability of buyers… and am convinced that now more than ever sellers need to realize what the current economic and political environment really means for them and their future… and why selling now truly is a better option.
There are several very good reasons to sell now… among them the looming tax changes for higher income tax-payers, increased regulation for small businesses making the costs of doing business higher, and the increased incentive for buyers to buy in this market.
To read the full article and learn more about the reasons to sell now... click here.
Sunbelt Business Advisors of Indiana
If you are considering holding off on selling your business you may want to reconsider.
Recently I have read several great articles and sat in on presentations expounding on tax implications, regulatory implications and the availability of buyers… and am convinced that now more than ever sellers need to realize what the current economic and political environment really means for them and their future… and why selling now truly is a better option.
There are several very good reasons to sell now… among them the looming tax changes for higher income tax-payers, increased regulation for small businesses making the costs of doing business higher, and the increased incentive for buyers to buy in this market.
To read the full article and learn more about the reasons to sell now... click here.
Tuesday, June 19, 2012
Check out the Top Ten Franchises to Buy...
Check out this great article by BlueMauMau.org outlining the top ten best franchises to buy... it also has a great link to an article with a spreadsheet showing SBA default rates for various franchises... very informative.
Saturday, 2012/06/16
Knowing a franchise's bottom line and the ability to get a return on investment is the holy grail for a franchise investor. That's no easy feat. What Blue MauMau has been able to do is to find chains that franchisees are healthy enough with their earnings to at least pay back their loans more than other brands. So here are the ten best franchise brands in which franchisees have enough staying-power to pay back their lender.
If you are interested in purchasing a franchise, this is a must read.... click here to read the full article.
2012's Best 10 Franchises to Buy, Least Loan Defaults
By BMM, www.bluemaumau.orgSaturday, 2012/06/16
Knowing a franchise's bottom line and the ability to get a return on investment is the holy grail for a franchise investor. That's no easy feat. What Blue MauMau has been able to do is to find chains that franchisees are healthy enough with their earnings to at least pay back their loans more than other brands. So here are the ten best franchise brands in which franchisees have enough staying-power to pay back their lender.
If you are interested in purchasing a franchise, this is a must read.... click here to read the full article.
Thursday, February 23, 2012
Do You Know Your Customers?
Courtesy of Business Brokerage Press
It’s always nice, when eating at a nice restaurant, for the owner to come up and ask how everything was. That personal contact goes a long way in keeping customers happy – and returning. It seems that customer service is now handled by making a potential customer or client wait on a telephone for what seems forever, listening to a recording saying that the call will be handled in 10 minutes. Small businesses are usually built around personal customer service. When is the last time you “worked the floor” or handled the phone, or had lunch with a good customer? Customers and clients like to do business with the owner. Even a friendly “hello” or “nice to see you again” goes a long way in customer relations and service.
The importance of knowing your customers and/or clients could actually be extended to suppliers, vendors, and others connected with your business. When is the last time you visited with your banker, accountant, or legal advisor? A friendly call to your biggest supplier(s) can go a long way in building relationships. A call to one of these people thanking them for prompt delivery can pay big dividends if and when a problem really develops.
Owning and operating your own business is not a “backroom” or “hide behind the business plan” business. It is a “front-room” business. Go out and meet the customers – and anyone else who has an interest in your business.
This subject and others are important considerations in owning a business and can affect the sale of a business in a positive or negative manner. If you are thinking of selling your business, or just want to discuss possible exit scenarios down the road, please call to speak to one of our brokers here at Sunbelt Indiana... 317-573-2100. The consultation is free with no obligation!
It’s always nice, when eating at a nice restaurant, for the owner to come up and ask how everything was. That personal contact goes a long way in keeping customers happy – and returning. It seems that customer service is now handled by making a potential customer or client wait on a telephone for what seems forever, listening to a recording saying that the call will be handled in 10 minutes. Small businesses are usually built around personal customer service. When is the last time you “worked the floor” or handled the phone, or had lunch with a good customer? Customers and clients like to do business with the owner. Even a friendly “hello” or “nice to see you again” goes a long way in customer relations and service.
The importance of knowing your customers and/or clients could actually be extended to suppliers, vendors, and others connected with your business. When is the last time you visited with your banker, accountant, or legal advisor? A friendly call to your biggest supplier(s) can go a long way in building relationships. A call to one of these people thanking them for prompt delivery can pay big dividends if and when a problem really develops.
Owning and operating your own business is not a “backroom” or “hide behind the business plan” business. It is a “front-room” business. Go out and meet the customers – and anyone else who has an interest in your business.
This subject and others are important considerations in owning a business and can affect the sale of a business in a positive or negative manner. If you are thinking of selling your business, or just want to discuss possible exit scenarios down the road, please call to speak to one of our brokers here at Sunbelt Indiana... 317-573-2100. The consultation is free with no obligation!
Thursday, December 29, 2011
Recap of the Year at Sunbelt Indiana
Well everyone, 2011 is coming to a close and we are proud to announce that we have successfully closed over 25 sale transactions this year... the following tombstone sheets show just a sampling of our recent transactions... click on the subject line to review just a few.
To take your business from "for sale" to "sold" contact us at indyinfo@sunbeltindiana.com or 317-573-2100 to speak to a broker about your exit planning strategy.
To take your business from "for sale" to "sold" contact us at indyinfo@sunbeltindiana.com or 317-573-2100 to speak to a broker about your exit planning strategy.
Tuesday, November 15, 2011
Staffing Decisions - 2 Options if you are going to sell
One area that has the potential to affect the value of your business is the staffing of your business. If you are thinking about selling, you may want to consider two different options.
1. Outsourcing
Many services, especially in today's environmen of the self-employed, can be outsourced. Replacing workers is not pleasant and should only be done if substantial savings can be realized, but outsourcing is worth investigating.
When evaluating the potential savings, you will want to compare the total costs related to the employee (salary, benefits, bonuses, etc.) to the total costs related to outsourcing. You will also want to consider how the change could affect customer service and the morale and productivity of the other employees.
2. Removing Negativity
Now may be the time to get rid of any disgruntled employees. Negative employees hurt a business in several ways. Their attitudes can create a sour environment for their co-workers; their criticisms and complaints can rub off on their coworkers; and their demeanor can leave a negative impression on the customers of the business.
Happy and contented employees make for a profitable business - and it is evident to anyone looking at the business.
1. Outsourcing
Many services, especially in today's environmen of the self-employed, can be outsourced. Replacing workers is not pleasant and should only be done if substantial savings can be realized, but outsourcing is worth investigating.
When evaluating the potential savings, you will want to compare the total costs related to the employee (salary, benefits, bonuses, etc.) to the total costs related to outsourcing. You will also want to consider how the change could affect customer service and the morale and productivity of the other employees.
2. Removing Negativity
Now may be the time to get rid of any disgruntled employees. Negative employees hurt a business in several ways. Their attitudes can create a sour environment for their co-workers; their criticisms and complaints can rub off on their coworkers; and their demeanor can leave a negative impression on the customers of the business.
Happy and contented employees make for a profitable business - and it is evident to anyone looking at the business.
Thursday, August 25, 2011
Article 9: Take a Look at Your Lease
This article is helpful for any of you who are thinking or either starting your own business or purchasing an existing one, or if you currently own a business that operates out of leased premises. Very helpful.
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certaily read on.
If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on customers finding you (or coming upon you, as is often the case with a well-located gift shop) - the lease is critical. It may be too late if you already have executed it, but the following might be helpful for your next lease negotiation.
Click here to read the full article.
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certaily read on.
If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on customers finding you (or coming upon you, as is often the case with a well-located gift shop) - the lease is critical. It may be too late if you already have executed it, but the following might be helpful for your next lease negotiation.
Click here to read the full article.
Thursday, July 14, 2011
Check Out "Sales of Small Firms Are Up" in Wall Street Journal today
Sales of Small Firms Are Up
But Gain in 2nd Period Reflects Owner's Realization Businesses are Worth Less
By Sarah Needleman
Wall Street Journal, July 14, 2011
More small business owners sold their companies in the second quarter, but there's gloom surrounding the transactions.
Sales of businesses with roughly $350,000 in annual revenue rose 8% from a year earlier, reports BizBuySell.com, an online marketplace for small-business acquisitions in San Francisco. The increase marks the third year-over-year quarterly gain in a row, with brokers nationwide reporting similar gains.
Yet the growth isn't indicative of significant improvements in business performance or banklending volume. Instead, main driving force is the acceptance among owners that their businesses are no longer worth what they once were. Many sellers cut their asking prices and agreed to finance a significant portion of the deals themselves.
To read the full article... click here.
But Gain in 2nd Period Reflects Owner's Realization Businesses are Worth Less
By Sarah Needleman
Wall Street Journal, July 14, 2011
More small business owners sold their companies in the second quarter, but there's gloom surrounding the transactions.
Sales of businesses with roughly $350,000 in annual revenue rose 8% from a year earlier, reports BizBuySell.com, an online marketplace for small-business acquisitions in San Francisco. The increase marks the third year-over-year quarterly gain in a row, with brokers nationwide reporting similar gains.
Yet the growth isn't indicative of significant improvements in business performance or banklending volume. Instead, main driving force is the acceptance among owners that their businesses are no longer worth what they once were. Many sellers cut their asking prices and agreed to finance a significant portion of the deals themselves.
To read the full article... click here.
Tuesday, March 29, 2011
Inventory: A Key Component to the Business Sale
Ralana D. Shelley, CBI (bio) Sunbelt Indiana Business Resource March 28, 2011
One of the most overlooked but important issues in the health of any business is inventory. Inventory plays a pivotal role throughout its entire lifecycle, from purchase to storage to sale. It is just as important how inventory is kept and sold as who it is bought from, how much is paid for it, and how much one can charge a customer for it. Below are three key issues to consider abuot inventory and how it affects the health and future sale of your business.
Inventory Accounting... Once a business has purchased its inventory, it becomes important how that business is going to handle it. How quickly or slowly it is turned over can have a direct impact on business value...
To Include in the purchase price or not to include... Most businesses offered through an intermediary will clearly state up front whether inventory is included in the purchase price, or whether it is in addition to the price...
Counting Inventory at Closing... There are basically two ways to count inventory before closing...
Inventory is not so simple when considering its impact on the value of a business both while running it and while trying to sell it. It is certainly something to handle and track carefully, and prepare if you are thinking of selling now or in the future.
To read the full article and learn more about inventory's impact... click here.
One of the most overlooked but important issues in the health of any business is inventory. Inventory plays a pivotal role throughout its entire lifecycle, from purchase to storage to sale. It is just as important how inventory is kept and sold as who it is bought from, how much is paid for it, and how much one can charge a customer for it. Below are three key issues to consider abuot inventory and how it affects the health and future sale of your business.
Inventory Accounting... Once a business has purchased its inventory, it becomes important how that business is going to handle it. How quickly or slowly it is turned over can have a direct impact on business value...
To Include in the purchase price or not to include... Most businesses offered through an intermediary will clearly state up front whether inventory is included in the purchase price, or whether it is in addition to the price...
Counting Inventory at Closing... There are basically two ways to count inventory before closing...
Inventory is not so simple when considering its impact on the value of a business both while running it and while trying to sell it. It is certainly something to handle and track carefully, and prepare if you are thinking of selling now or in the future.
To read the full article and learn more about inventory's impact... click here.
Friday, March 25, 2011
How to Hold on to Key Employees (Article 3, Exit planning series)
Courtesy of Business Brokerage Press
During a company merger, the devil is in the details. Identifying key employees and employment issues early on can facilitate a smooth deal. And a communication plan can help prevent, for example, top-producing salespeople from defecting to competitors, decimating the company's customer base, and affecting its value.
It's important to offer employees incentives to stay, but you also need to anticipate potential legal issues. Plan now to put in place protections to prevent employees from disrupting your deal, both before and after its closes.
to read the full article... click here.
Check us out Monday for Article 4 in our Exit Planning Series when we address the subject of Inventory.
During a company merger, the devil is in the details. Identifying key employees and employment issues early on can facilitate a smooth deal. And a communication plan can help prevent, for example, top-producing salespeople from defecting to competitors, decimating the company's customer base, and affecting its value.
It's important to offer employees incentives to stay, but you also need to anticipate potential legal issues. Plan now to put in place protections to prevent employees from disrupting your deal, both before and after its closes.
to read the full article... click here.
Check us out Monday for Article 4 in our Exit Planning Series when we address the subject of Inventory.
Monday, March 21, 2011
Starting the discussion on employees... independent contractor vs. employee
The Big Question: Independent versus Employee Status
Courtesy of Business Brokerage Press
Are your workers independent contractors or employees? This is a compelling question, especially where the Internal Revenue Service is concerned. Every worker claiming status as a non-employee means payroll taxes and social security contributions that won't fall into the IRS's pocket.
Now many states are taking a closer look at the question, too. They are increasingly on the lookout for new sources of state revenue, including workman's compensation and unemployment insurance, both of which can be bypassed when a business uses independent workers.
To read the full article... click here.
Courtesy of Business Brokerage Press
Are your workers independent contractors or employees? This is a compelling question, especially where the Internal Revenue Service is concerned. Every worker claiming status as a non-employee means payroll taxes and social security contributions that won't fall into the IRS's pocket.
Now many states are taking a closer look at the question, too. They are increasingly on the lookout for new sources of state revenue, including workman's compensation and unemployment insurance, both of which can be bypassed when a business uses independent workers.
To read the full article... click here.
Monday, November 15, 2010
Check Out... Small-business lending rises 30 percent in Indiana
By Franscesca Jarosz
IBJNews (IBJ.com)
Nov. 13, 2010
The amount of money banks loaned through U.S. Small Business Administration programs shot up close to 30 percent in Indiana this year - a sign that the state's small businesses have slowly started coming back to life.
Small companies are taking out more SBA loans not just to fund operating costs, but also for capital projects such as expansions. Entrepreneurs also are investing in startups, which accounted for about a quarter of the SBA loans issued in the fiscal year 2010 that ended Sept. 30.
To read more... click here.
IBJNews (IBJ.com)
Nov. 13, 2010
The amount of money banks loaned through U.S. Small Business Administration programs shot up close to 30 percent in Indiana this year - a sign that the state's small businesses have slowly started coming back to life.
Small companies are taking out more SBA loans not just to fund operating costs, but also for capital projects such as expansions. Entrepreneurs also are investing in startups, which accounted for about a quarter of the SBA loans issued in the fiscal year 2010 that ended Sept. 30.
To read more... click here.
Monday, September 13, 2010
Check out... SBA Program Proves a Hit, but Now It Is in Limbo - WSJ.com
By Ruth Simon
August 5, 2010
WSJ.com
Pinnacle Bank made just two loans through the Small Business Administration in 2007 and 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program ios the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting the many borrowers. The agency is involved in less than 10% of all small business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing from borrowers and lenders, as lawmakers haggle over broader small-business legislation...
to read the full article... click here.
August 5, 2010
WSJ.com
Pinnacle Bank made just two loans through the Small Business Administration in 2007 and 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program ios the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting the many borrowers. The agency is involved in less than 10% of all small business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing from borrowers and lenders, as lawmakers haggle over broader small-business legislation...
to read the full article... click here.
Friday, July 30, 2010
check out... "Getting an SBA Loan: 5 Things You Need to Know"
Getting an SBA Loan: 5 Things You Need to Know
Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.
Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.
Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.
Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.
Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.
Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.
- Know the lingo.
- Document everything.
- Got collateral?
- Do your homework. Seriously.
- You are not a risk taker
Friday, June 25, 2010
The SBA Has a Deal for You
It's called a 504 loan. Here's what you need to know about it.
By Marshall Eckblad
WSJ.com: Small Business
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read the full article... click here.
By Marshall Eckblad
WSJ.com: Small Business
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read the full article... click here.
Tuesday, June 1, 2010
Hard Times?
Now may actually be a good time to sell a business.
Given the state of the financial markets and general economy, now may seem like an unlikely time to sell a company. But selling in the current market can actually be less challenging than you think -- and may even provide benefits you haven't considered.
Determining whether to sell is always a difficult and complex decision, involving many considerations specific to your plans and business. For example, how urgent is your exit plan and how much do you hope to realize from the sale? Although the current economic environment may factor into your decision, it shouldn’t be your primary consideration.
To read the full article... click here.
Given the state of the financial markets and general economy, now may seem like an unlikely time to sell a company. But selling in the current market can actually be less challenging than you think -- and may even provide benefits you haven't considered.
Determining whether to sell is always a difficult and complex decision, involving many considerations specific to your plans and business. For example, how urgent is your exit plan and how much do you hope to realize from the sale? Although the current economic environment may factor into your decision, it shouldn’t be your primary consideration.
To read the full article... click here.
Wednesday, May 26, 2010
Purchase a Business With Your 401K!
By: David Gorman (bio)
Senior Business Broker, Sunbelt Indiana
Why? Because there are NO penalties, that’s right. This 401k Rollover program lets you use your 401k and other retirement funds to invest in a business – TAX AND PENALTY FREE. This is a safe, proven plan based on long standing provisions of the Internal Revenue Service (IRC § 6501). By using pre-tax retirement dollars to fund your business, you gain equity in your business and improve cash flow from day one. Use the funds to receive a salary during startup, while accelerating profitability by eliminating or reducing interest or debt. Application, creation, and funding is fast; typically (2-3 weeks or less). You can even set aside tax deductible retirement savings up to $200,000/yr.
The benefits of using your 401k:
-Minimize debt
-Enhance cash flow
-Stimulate business growth
-Build equity
-Take full advantage of tax benefits
Senior Business Broker, Sunbelt Indiana
Why? Because there are NO penalties, that’s right. This 401k Rollover program lets you use your 401k and other retirement funds to invest in a business – TAX AND PENALTY FREE. This is a safe, proven plan based on long standing provisions of the Internal Revenue Service (IRC § 6501). By using pre-tax retirement dollars to fund your business, you gain equity in your business and improve cash flow from day one. Use the funds to receive a salary during startup, while accelerating profitability by eliminating or reducing interest or debt. Application, creation, and funding is fast; typically (2-3 weeks or less). You can even set aside tax deductible retirement savings up to $200,000/yr.
The benefits of using your 401k:
-Minimize debt
-Enhance cash flow
-Stimulate business growth
-Build equity
-Take full advantage of tax benefits
Wednesday, May 12, 2010
Capital Gains Tax Rate change, what it can mean for businesses selling this year...
New Stimulus Package for Businesses...
By: John Kielich, Managing Director, Kolb + Co.
LeAnne Foster, Business Analyst, Kolb + Co.
No, you did not miss an eight million dollar first-time-business-buyer tax incentive or a sales tax break. However, there currently is a window of opportunity for businesses in regard to Federal Capital Gains Tax. The current Federal Capital Gains Tax rate of 15 percent is due to sunset at the end of 2010. How high it goes starting in 2011 is anyone's guess at this time, but as discussed and illustrated below, even an increase to 25 percent should provide a business owner the needed stimulus to strongly consider a sale or partial sale in 2010.
To read the rest of this article, and see an example spelled out in dollars... click here.
By: John Kielich, Managing Director, Kolb + Co.
LeAnne Foster, Business Analyst, Kolb + Co.
No, you did not miss an eight million dollar first-time-business-buyer tax incentive or a sales tax break. However, there currently is a window of opportunity for businesses in regard to Federal Capital Gains Tax. The current Federal Capital Gains Tax rate of 15 percent is due to sunset at the end of 2010. How high it goes starting in 2011 is anyone's guess at this time, but as discussed and illustrated below, even an increase to 25 percent should provide a business owner the needed stimulus to strongly consider a sale or partial sale in 2010.
To read the rest of this article, and see an example spelled out in dollars... click here.
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