Selling Your Small Business: Think “Pool Of Prospects” Not “A Single Buyer”

When you are selling your small business, having one potential buyer can be a dangerous thing. It can trick you into thinking your business is as good as sold. Experience teaches us that if you only find one potential buyer you will probably fail to sell your business. Here’s why: Most prospects who inquire about […]

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Small Business Owners Beware – The Media Doesn’t Define Small Business The Same Way You Do

Last week I wrote about the fact that the Internet in general, and small business journalists in particular, don’t serve small, owner-operated businesses well. In summary: Small, owner-operated businesses that do under $1,000,000 in sales and have fewer than 20 employees have very little in common with the $5-$20 million businesses that get most of […]

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Small Business Valuation Multiples – The Type Of Business Buyer Makes All The Difference

  Last week I wrote about the fact that small business valuation multiples tend to go up as the business being sold gets bigger. I also criticized our business media for lumping all small businesses into the same category. Especially when it comes to discussing how much money a business is worth.   To summarize: Most businesses […]

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Baby Boomers Selling Their Businesses – Will It Cause A Tsunami?

Conventional wisdom says there is a coming avalanche of baby boomers selling their businesses. And this avalanche will lead to a flood and  tsunami and another tsunami  and another tsunami  and another tsunami and another tsunami of businesses being put up for sale. When it comes to over hyping business owners and scaring them into selling right […]

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The Value Of Your Business – How Size Affects The Price Of Your Business

The value of your business – or more importantly the price at which you can sell it – depends on the “Valuation Multiple” your business can demand. A new survey just published by Pepperdine University in conjunction with the International Business Broker’s Association confirms what we already know: the bigger the business the higher the […]

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Business Valuation Basics: It Is Not About EBITDA or Value It’s About Price

Business Valuation Basics: It Is Not About EBITDA or Value It’s About Price

I recently came across an interesting article on the New York Times “Your The Boss” Blog. Like a lot of How-To articles about selling a business this one offered several suggestions on how to make your business more valuable. But more noteworthy than the article was the comments section. As with most “how to sell […]

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Selling A Small Business: 6 Surprisingly Valuable Lessons From Yogi Berra

Selling A Small Business: 6 Surprisingly Valuable Lessons From Yogi Berra

  Selling a small business is hard work — and for many entrepreneurs, the process can seem hopelessly complicated. When you’re faced with a daunting task, sometimes the best thing to do is to narrow your focus. Concentrate on just a few core ideas and actions. And no American personality has been better at trimming […]

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Small Business Valuation: When It Comes To Selling Your Business Don’t Be Like Betty Crocker

“A new owner could explode profits by expanding the menu and the operating hours. Currently we are only open Mon. – Fri. for breakfast and lunch. By adding a dinner menu and staying open 7 nights a week there is no limit to how profitable this restaurant can become”   Let’s imagine that it is […]

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For-Sale-By-Owner: Why Confidentiality Is So Important

For-Sale-By-Owner: Why Confidentiality Is So Important

Recently we have focused on providing information specifically for the For-Sale-By-Owner business seller. In fact we have published a list of For-Sale-By-Owner Commandments here. Of these “Commandments” confidentiality is the most important. Business owners often feel an obligation to tell their employees of their plans to sell. You should resist that urge.  It can take […]

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For Sale By Owner: To Sell A Small Business You Have To Compete For Buyers

For Sale By Owner: To Sell A Small Business You Have To Compete For Buyers

When you sell a small business the “For Sale By Owner” way you have a lot of responsibilities. In my last post I talked about how you – as the seller – must take responsibility for moving the sale along to the next step. No matter what that next step is. The buyer isn’t going […]

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