Business Seller Tip -

Cash flow is king in this recession.  Use smart marketing to increase revenues.  Reduce your cost of goods sold to improve margins.  Look for opportunities to cut rent and other overhead.  Improved cash flow will improve the viability and saleability of your business.  Offer seller financing to buyers, especially until banks resume lending to small businesses.
 
 
Business Buyer Tip -

 
 Determine how much cash and other liquid assets you have to invest in a business.  You will need to set aside 20% or more of that for working capital.  The rest can be used as a down pay-payment. A good rule of thumb is that you will need more cash for the down payment than you will earn annually from the business.  If you are not working, the longer you wait to buy a business, the less down payment you will have for the business.  When looking at businesses, remember that there are no “perfect businesses,” that most are making less money than in years past, but this may mean a lower price for you today.
 
Business Broker Tip - 

 Business Brokers must work harder and smarter during this recession.  Sales are taking longer, and bringing lower prices.  Business Brokers must spend even more time on prospecting to find the serious sellers.  They must also perform their own due diligence, to make sure that the business can be sold, and remain in business long enough to be sold.
 

If you have any questions, please call us now at –
(877) 420-6478!

 

Sincerely,

Alan Lippincott
President & CBI
BestSoCal Business
Broker License No. 01431130
 

Let BestSoCal Business help you!
If we can help you, or your client buy or sell a business,
call us now at (877) 420-6478
for a free confidential consultation!
3020 Old Ranch Parkway, Suite 300,  Seal Beach, CA 90740
Toll Free: 877-420-6478