Get expert advice
e.g. What is the best way to market my cleaning business on the Internet?
Ask question
Questions

Can I sell off part of my business without losing control?

Peter WallaceOwner at Endeavour Capital
Hi PhilipYes, you can sell off part of your business and keep control.In general there are two types of situations when selling off part of your business is viable raising capital to expand your business progressive sell down when you are heading towards retirementNaturally any new investors will consider whether the corporate governance arrangements can sufficiently protect their minority investment, which is usually done through a shareholders agreement. Shareholders agreements may cover issues such as directors, sale of shares, approval of major transactions, dividends, reporting and liquidityI am particularly a fan of the progressive sell down, as part of an exit planning exercise
Please login or sign up to answer.
Questions

Are you pricing your products and services correctly?

Neil SteggallPartner at Wardour Capital Partners
Hi Marty,I agree with Jef''s comments but would add that a common error made in pricing products and services is a failure to understand your fixed cost structure (including your anticipated wages) and accounting for this when building you costing and quoting.If when all costs are calculated you are above the market ask:Is your product or service better than your competitors and if so why/howWill your customers recognise this and pay the differenceIf the answer to either question is no, you need to review your structure, costings & business model.We often find clients say "oh our customers just won't spend the money". Quite often the client is trying to sell what they perceive their customers "need" whereas long term research shows both B2B and consumers buy what they "want". It is often only a small, emotive change yet the difference in meeting wants is usually the difference between profit and loss.To understand this better check out this youtube clip re Apple: http://www.ted.com/talks/lang/en/simon_sinek_how_g...Another good source is Peter Drucker re satisfying customer wants.Hope this helps,Cheers,Neil.
Jef LippiattOwner at Startup Chucktown
I think the best way to figure this out is to test with actual or potential customers. Do competitive research (figure out what other charge)Figure out how your product and brand are different than competitorsSet the price you feel comfortableSee if customers would buy the product from you at that priceIf not, why not? (capture feedback and details not just "yes", "no", "I don't know")Tweak your pricing and try again
Please login or sign up to answer.
Questions

What pitfalls or issues did you look for if you bought your company?

Speaking to the owners out there, did you buy your business? If so what were some of the primary... read more

Asked by:
Yee Trinh Co-founder at SavvySME
Be the first to answer
Please login or sign up to answer.
Questions

What is the use of bearings?

hey friends can you please tell me the actual use of thrust bearings for different-different... read more

Be the first to answer
Please login or sign up to answer.
Buying and selling businesses

Top Ways to Increase the Value of Your Business and Make it More Attractive to Buyers

When selling your business you will want to get the best possible price. You have put blood, sweat... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

How to Find a Bargain When Buying a Business

When buying property they say buy the worse house on the best street. When purchasing a business... read more

Added by:
Please login or sign up to comment.
Lina BarfootEditor at SavvySME
Very interesting, great article!
Buying and selling businesses

Business Exits: How Earn Outs Work in Detail - Part One

Investment banks and corporate advisors use earn outs as a way of bridging the gap between what you... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Selling Your Business: How to Get Agreement on Price Using an Earn Out

Forbes Magazine said recently that the number one reason businesses fail to sell is because the... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Business Exits: How Earn Outs Work in Detail - Part Two

This is the second part of the article I've written before. You can read the first part of the... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Roll Ups as an M&A Technique to Rapidly Create Value in Your Business

When your company is looking for growth, a roll up might be the answer. A "roll up" or... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

How to Avoid Being “Pushy” in Sales

Open more conversations with respect The other day one of the General Managers of a company I’ve... read more

Added by:
Please login or sign up to comment.
Jef LippiattOwner at Startup Chucktown
I totally agree with the respect angle (especially as a potential client as no previous relationship has been established). Also, I would bring up the mantra, "The User Is Not Like Me". This could be modified as, "A Client Is Not Me". You could also look through the lens of potential client. If you were a client, would this entice you to take action or would you be annoyed? From this self evaluation you can learn quite a lot.
Hitesh MohanlalDirector at WOW! Advisors & Business Accountants
Great article Jenny. Sometimes we write things without really realising the effects it has those we are trying to work with.
Buying and selling businesses

How to Sell a Business

"Start with the end in mind."  That’s the key to selling your business for its maximum... read more

Added by:
Brent Szalay Owner at SEIVA
Please login or sign up to comment.
Brent SzalayOwner at SEIVA
Thanks for your comments Jeff. I agree to maximize the value everything must be documented. This should be a practice that every business should undertake whether they are looking to sell the business in the short to medium term or not.
Jeff GordonPrincipal at Prestige SME Business Solutions
One major mistake business owners make is not documenting everything such as Processes, Procedures, Job Descriptions. If management keep most of the IP in their brains and not documented it will make it more difficult to sell a business and get a higher price!
Buying and selling businesses

How to Buy an Existing Business: A Comprehensive Guide

Many people dream about owning their own business. However, few convert that dream into a reality.... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Understanding Small Business CGT Concessions: The Complete Guide

Small business is hard. Ask any small business owner and he or she will tell you about the hard... read more

Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Business Brokers: Who They Are And What Do They Do?

As a business person who wish to buy or sell a business, you might be wondering if it’s really good... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Small Business Brokers: Do I Really Need One?

Do I really need small business brokers to help me? Let us begin the discussion this way:  Now... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

Important Things To Consider When Buying A Small Business in Australia

When one thinks of buying a business that is already up and running, there are certain points to... read more

Added by:
Please login or sign up to comment.
Be the first to comment
Buying and selling businesses

1 in 10 of us own a business……..surely not

Here are over 2 million registered businesses operating in Australia, according to the most... read more

Added by:
Please login or sign up to comment.
Hardly surprising though Huang...Just shows that small business is the backbone of this country
Wendy HuangFull Time Blogger and YouTuber at A Custom Blog in 4 Minutes
Wow that some interesting stats Bill!
Buying and selling businesses

Cyber Monday: It's The Most Wonderful Tax Evasion Day Of The Year!

Keyboard (Photo credit: cheetah100) Today is Cyber Monday. Chances are, if you’re sitting at your...read more

0
Added
Please login or sign up to comment.
Be the first to comment
Questions

How do I sell a business without using a business broker?

A friend of mine wants to sell his small Japanese restaurant, however, he doesn't have the money to... read more

Asked by:
Ling Lee Director at Japanese Sword Auctions Australia
Hi Ling, Yes in many cases it is not economically viable for a small business owner to engage the services of a Broker. This does not mean they cant achieve a successful sale and price selling it themselves.There are many resources out there that are free or relatively inexpensive that can assist them in the process of selling their business. Before advertising they will need to prepare a document on the business, which will tell potential buyers what their business is and what the current operations of the business looks like. This is the information they will need to provide to potential buyers after they express an interest in business. By creating an information document (Lets call it a For Sale Memo) they will need to ask themselves: If you were buying your competitors business what questions would you ask and what information you would want to see from them? List these questions down and then fill them in with information on your business. If they get Sale Memo ready, they can send this to any potential inquirers, and it will answer any initial questions they may have about the business.Now, where do you find the buyers? Since most of the businesses for sale are being offered through online advertising, some of the good websites to advertise your business for sale are business.domain.com.au, businessesforsale.com, bsale.com.au, business2sell.com.au. Make sure your solicitor is involved to help you with the legal aspect of the transaction and also speak to your accountant to make sure your finances are in order, get a valuation done on the business to get an idea of your business value and sale price, and they also may have a potential purchaser, you never know.Hope this helps answer your question a little further.
Hi Ling, From my experience i think it varies a little from industry to industry but there are a few websites such as Seek Commercial which seem to cater for just about all types. There may also be specialised websites specifically to the food industry. The owner should also engage their accountant or other people they know in the food industry to determine what a fair and reasonable valuation method is for the restaurant to ensure they don't sell it for under its true worth. If listing on websites is unaffordable then perhaps just having a chat with people they know run similar small businesses would be a good option. You never know who might be looking at trying to find exactly what they are trying to sell. Stuart.
Please login or sign up to answer.