Fundamentals of Selling A Business - Marketing and Prospecting the BuyerWritten by Jim Brown
Fundamentals of Selling A Business - Marketing and Prospecting BuyerTo successfully sell your business, it is essential that you know how to communicate its appeal, and understand factors that potential buyers have to consider. Marketing Materials There are hundreds of businesses for sale at any given time. To make your business stand out, you need to provide potential buyers with information that help them to make informed decisions. A descriptive and well-organized selling memorandum will help in sale process. The memorandum would provide your contact information, a brief description of business, business location, hours of operation, business asking price, annual revenues, net earnings, number of employees, ownership description, number of years established, leased or owned property, and reason for selling. You should also include a few paragraphs to describe benefits of owning business. Potential buyers should sign a confidentiality agreement before you furnish them with selling memorandum. This memorandum should be true, accurate, and complete. Marketing paraphernalia typically included are photographs of business, company history, overview of operations, financial summary, company strengths and potential opportunities, as well as a list of assets.
| | Pros and Cons of Franchise BusinessesWritten by Jim Brown
Pros and Cons of Franchise BusinessesFor individual owner, there are definite advantages to franchising, some of which are outlined in list below. Pros of Franchise Businesses Well-known trademark, either regionally or nationally, and its cumulative goodwill - saving business owner cost of creating and advertising a name that customers already recognize. Established business framework - minimizing startup problems and guesswork involved in starting a new business. Well-tested sources of supply and service - saving time and trouble in finding suppliers of needed products and equipment. Ongoing sales and marketing assistance - franchisors have proven, existing, and successful systems of advertising and marketing. Financial assistance - banks and similar lending institutions are willing to lend money to a business that has backing of a successful franchisor. Most franchisors have direct financial assistance or help in finding adequate sources of financing. Reduction of risk - you are buying into an established concept so risk of failure is lower. Ongoing research and development - most franchisors constantly research and look into vital information such as competition, product demand, seasonal variations, and community attitudes. Site selection and business support - franchisor helps with selecting a suitable site location, building construction design and supervision, employee training, and operational support. Proven operating methods and procedures for creating and selling product. Standard quality, uniformity, and desirability of franchisor's product or service. Collective buying power and centralized purchasing system - franchises may be able to purchase supplies at a reduced cost since franchisor can purchase in bulk and pass savings to franchisees. Furthermore, with franchising expansion seems to come more naturally. Operating a successful franchise may quickly lead to building a second and then a third business, and so on. In fact, some franchisees own all businesses of a particular franchise in an entire geographical area. Fortunes have been built this way.
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