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How should you assess the 10 skills that make a qualified  seller for your business ? Nowadays, there are many small-sized business owners who eventually make a decision to sell their business. The reasons for them of their business selling are quite various.

Some of them have a wish to enjoy their retirement life out of those hectic business activities. Meanwhile, other business owners want to sell their business because they could not wait any longer to discover their business prospect.

Selling your business cannot be considered as a simple task to do. Instead, it is a quite tough and complicated one, especially if you do not know about the steps that you need to do, or you might do not have any skills that you need to have in business selling.

Well, if you are listed in those business owners who are aiming to sell your business, no matter what your reason is, you need to consider some important things that you need to practice on your business selling process.

To help you out in this case, below are the 10 skills that make an awesome business seller for you to check out. But before that, there is one thing to ease your mind, all of these 10 skills are learnable if you really want to transform yourself become an awesome business seller and get the highest profit of your business selling as well.

An awesome business seller needs to be fluent in timing the sale

Your business’ history, along with its financial performance is considered as the main essential aspects in measuring the price of your business at selling time.

A business seller who decides to sell its business after steady developments over the years would naturally request a bigger price rather than a business seller who chooses to sell the business right after 2 or 3 years development.

An awesome business seller would be able to measure the business environment

The business environment where your company is running the business is absolutely also considered as an essential skill in measuring the requesting price for your business selling.

If your company is running the business in a market industry that struggling throughout a recession, then as a business seller, then you would need for a better time in selling your business.

Some companies might able to lowly the flow when the market industry that they running their business in is stuck in a slow cycle. Plus, there might even some industries that would never able to create any recovery.

For this reason, an awesome business seller has the skill to determine whether the recessions are only an unpredictable part of their business cycle, or whether the recession could be a warning signal for the business.

An awesome business seller would be able to evaluate the stock sales and asset sales

An awesome business seller has a skill when he or she would able to decide previously whether to sell out the stock or assets of their business. In terms of a stock sale, the business seller would receive an agreed-upon price designed for his or shares in the business. Once the stock would be transferred to another owner, then the buyers would step in and running your business.

Usually, some business selling in the context of stock would give the buyer not only the entire assets of your company, but it would also give the right for the buyer to possess the entire liabilities of your business as well.

This type of arrangement is frequently attracted the business seller due to they could get some benefits from its tax.

On the other hand, in terms of asset sale, the stock is not a part of the image. Instead, partnership and single proprietorship should be transferred to the new owner.

In this arrangement, the business seller would hand over the entire business inventory, equipment, patents and trademark, trades name, the “goodwill” of the business, along with some other valuable assets for an agreed-upon price. Then, the business seller would use that money to pay for any debts.

An awesome business seller has the skills to prepare the business for sell

When you are going to sell your business, then you need to gather a large variety of your business’ information to be provided for the potential buyers.

Thus, an awesome business seller would have the ability to collect all the business information such as mentioned below.

  • Financial information about the business

An awesome business seller would still need to prepare the financial statements, along with other important financial documents to be presented for the potential buyers.

This financial information will include a balance sheet (completed with detail information on both accounts payable and receivable, business inventory, liabilities, mortgages payable, and so on), and income statement, as well as a valuation report.

  • The Legal Information

An awesome business seller has the skill to prepare the essential information regarding the legal issues which belong to the company.

These type of documents would be like partnership agreements, bylaws, supplier contracts, franchise agreements, the status of stock, and more.

  • The Marketing Information

Smart buyers would definitely want to know the detail marketing information on your company, as well as the information on the main market field of your business, the market share, along with your business’ marketing expenditures.

For this reason, an awesome business seller has the skill to prepare all the information needed to be viewed by the potential buyers.

  • The Business Activities Information

Lastly, an awesome business seller should be prepared to deliver a piece of complete information on your business’ daily activities. This would include the company policies, personnel schedules, organizational chart, rates of payment, the job description, and also the benefits as well.

An awesome business seller has the skill to locate the prospective buyers

Almost all of the business owners would sell their companies to the external buyers, which are the buyers who are not their current partners or employees.

An awesome business seller would make an attractive advertisement of their business selling, use his or her personal contact lists as the reference, or engage the mediators.

An awesome business seller realizes properly on the value of their business

This skill is a must-have one to make a business seller become an awesome one. An awesome business seller would able to realize properly on the value of his or her business.

With this ability, an awesome business seller would be able to make a correct price which worth the company. It is obvious that all of the business sellers who are aiming to sell their business are definitely want to get the accurate price which also represents the value of their business as well.

For this reason, this skill must be learned by the business owners so that they would able to not only predict, but get the accurate price of their business.

This can be done by doing the evaluation on the profit that the business has been making in the market, the number of customers, the reputation of the business itself in the market, and so on. Thus, this is an essential skill that would able to lead a business seller to become an awesome business seller.

An awesome business seller can sign the agreement for earn out

The earn out is the agreement for the sellers. The seller must choose a portion of the price for the selling annually for the decided or defined period of time in the agreement for the company underneath the new ownership of the company.

This agreement shows the more detailed aspects of business including the fixed period of time out for earnings under the new ownership of the company. It also show the business selling as well as the generated profits of the company with in the time that will decided between agreement parties.

Sometimes these kind of agreements employs while the seller may not get the particular price due to the concerns of the potential buyer. Furthermore, the earn outs may be calculated on the agreed figures.

An awesome business seller can sign the agreement on installment sale or payment

Many seller sell their product to those shopkeeper or the customers in the market who are not able to pay the full payment or those customers can not lie in the condition that they can pay whole payment.

At this stage, the seller can sign an agreement with customers to pay their payment in the decided time that are agreed upon on the specific condition.

The customer will pay the down payment and he can pay remaining balance amount the specific decided time that will provide the relief to the customers from the buyers.

An awesome business sellers agreed upon the Leveraged buyout

The leverage buy out is also purchasing agreement that shows and enlighten some aspects of the agreement. company or the customer can purchase the products by taking loan from the seller whenever the company want to purchase the products in bulk form.

The seller gives loan because company has to purchase the products first and then the company will start the process on the products. This kind of strategy to perform some kind of process on the products require more money for that thing. So that’s why the seller will provide the loan to the company.

When the company sells those products then the company pay the loan taking amount to the seller. If you take a look on this strategy then you will get more benefits by taking the loan amount. But this strategy will responsibility in the sense of burden on the company.

This skill is considered dangerous for the company business because if the company or products of the company will not be sold then the company can be bankrupted. I personally recommend you to not take loan for your business.

An awesome business seller can close the deal

The most interesting thing is that whenever the deal  struck under some kind of  issues you will have to notify the second party before closing the deal.

You will close the deal when the contradiction occurs with the buyer with the penalty which is decided in the agreement including the financial statements, license for the transfer, and the other conditions verification.

In addition, you will need to compile many documents to complete the transaction with the buyer.

How to Best Price Your Business for Sale  ?  If you are on the verge of selling your business, then the most important question to answer is how much worth your business has.

You must identify a pattern to calculate worth of your business so that you can get maximum profit from your business for sale.

There are ways to do so, and here we will provide some considerable suggestions that how to sale your business at the best price, which gives you a great exit in the end.

Business selling has turned out to become the most popular alternative strategy among business owners. In numbers of cases, there are no beneficiaries’ people who aim to run and maintain the business.

On the other cases, the business owners might be planning to transform their business into liquid resources at a specific point of view.

Well, no matter what your reason which makes you go for this business selling trend, you need to make sure that you would get a perfect price from that sale. Definitely, you would not want to get your business selling at a price, where you feel that decision was wrong and you could not get what you deserved.

It is thought-provoking process, which demands a lot of thinking and calculations to get the best price for your business.

So, here are a few things to keep in mind while you want to get the best price of your business selling:

First of all, collect all financial data of your business at one place

You might have financial data scattered at various places, but you have to assemble financial record at one place. If your business is not too old, then you have to collect all relevant financial record, but if your business is older, then at least assemble financial record of last two to three years.

Then hire a financial expert like an accountant to do the math for you. The accountant will analyze your income statements, cash flow, balance sheet, etc. And he/she will calculate worth of your business at the current point of time.

An evaluation would represent the total worth of your business. By conducting a valuation of your business, then you would get a great opportunity to recognize the potential and the health that your business is selling.

The second step is to make estimates about your assets what their current value is ?

There are various tangible assets depending upon the nature of business. For instance, if you hold an office of your company, then you have various tangible assets such as inventory, production equipment & machinery, computers, and furniture etc.

You must calculate the value of these assets because business buyer will always ask value of your assets to know what you are leaving behind for them.

Prepare a proper list of all the assets and give it to your business buyer. The list is important to derive the best price for your business at sale, because you must include these assets on the basis of their current market value.

When you are estimating your tangible assets, one important thing for you to note is that, you need to include both tangible, as well as intangible assets that your business has.

Tangible assets define as physical things that your business possess such as property, tools, and also equipment.

On the other hand, intangible assets of your business define as the things that unable to be touched, however, you must  still consider it as valuable things such as brands, intellectual property, and also the goodwill of your business.

Next step to set your business selling price is to sit with your accountant

You should sit with your accountant and ask him/her to calculate  what sales are being generated, and what costs are being incurred, and in the end what profits are being earned

If your business is making considerable profits, then you can get the best price for it , but if calculation reveals that your business is not in loss but not making good enough profits, then your business price will be badly affected by this fact.

So, it is vital that you do proper calculations to get an idea of your current earnings, which will be showed to interested buyers.

As we all have known that the buyers are always looking for the profits that they would get if they are going to purchase anything.

Well, this happens with a business selling as well. Those prospect buyers would definitely search out to get to know about the profit that your business has been presenting as a point to be considered.

In addition to this, by identifying the profit of your business thoroughly, then you would also able to figure out the price level of your business as well.

It is an obvious fact that, the more profit you have been getting from your business, the more valuable and expensive your business would be in the eyes of the prospective buyers.

It is a real fact that most buyers would take a look at the sales, as well as the profit records to measure the capability of your business.

To be noted, most of those buyers are typically desire to purchase companies which have a minimum 30% of its growing sales throughout the years.

The reason is obvious, with this indication, then the buyers would get a proper view of whether your business is surviving or thriving.

Make sure that you conduct intensive market research

Intensive market research would be a great evaluation for you to get an idea that what is the value of your business in the market, and what rates are floating in the market in deals to sell and buy this kind of business.

This way would absolutely give you a clear picture of your business, whether your business is considered to be a valuable one or not.

The reason behind this is because, intensive market research would give you a clear picture of the status of your business in the market.

This could be done by doing some online surveys or online questionnaires to get the feedback from your customers, or you can also do this by conducting whether a direct interview or telephone interview as well.

With doing the intensive market research, you will get to know about how the real perceptions of your customers have regarding your business. In addition to this, you would also get to know about your business position in the market.

The better position that your business get, definitely will attract more potential buyers to put their attention in buying your business.

This method of market research would also able you to put the amount of how much you are aiming to get from business selling.

Obviously, if your business has been positioning in an ideal rank in the market, then you would not want to sell your business for a price that not worth it.

Thus, you need to make sure that you make proper market research and get the accurate results to figure out on your business value.

Set a Price for your selling business

Once you are done with all of above steps one by one, and also deal with any unforeseen situations during this time, then you will be able to set the best price for your business; a price which would generate good enough profit and benefits for you in this deal.

Remember that you need to make a proper and exact price which would cover all your property of your business, your business’ profit, your business’ reputation in the market, and other important things that you think worth.

Another thing you should keep in mind is that, not to do your business selling in rush. Means, you might get many offers from the potential buyers, and you need to really consider which offer that could be the best one for your business selling. T

ake some time to evaluate the potential buyers, along with their offers, and pick the most suitable offer that worth for your business.

Hire Professionals to Help You Out

Now you might have understood properly about the steps for you to conduct before you sell your business.

However, there is another important thing in this business selling process that you also need to consider. This important thing is, you can consider hiring professionals who have experience in business selling to help you out to get the best price of your business.

The type of professionals who would give you a hand in getting the best price of your business are as follow:

Hire a Business Broker

Hire a business broker would be your best choice since he or she would be able to give you correct navigation for a complete process of business selling.

Furthermore, those business brokers would definitely have the ability to find potential buyers for you, then also represent you in negotiations, in order to get the highest price that your business deserved.

The experienced business brokers would also give a presentation for you which explains how worth your business is.

These business brokers usually would ask you to give a fee of around 2% to 12% of the sales.

However, you must consider it as a potential cost since with hiring a business broker,  you would able to save your time, and also get the possible highest price of your business selling as well.

Hire an Experienced Attorney

An experienced attorney is a quite essential person who would be able to help you out in your business selling process. The reason is obvious, an experienced attorney would able to protect your legal interests.

In addition to this, most of us might not have enough knowledge of what are the legal pitfalls over the business selling process. Thus, an experienced attorney would help you out in drafting all of your documents and paperwork, as well as providing legal advice for you as well.

Hire a Certified Professional Accountant

A Certified Professional Accountant or CPA is definitely a great one who would help you out in gathering all the financial data for your business selling.

This would include in certifying that your documents are accurate, and also presenting your business’ future performance in a presentation that it would be easy for you to understand.

Hire Other Consultants

Other consultants would able to help you out in improving your bottom line, improve your profit, or even removing the waste through your business.

You can get the best consultants by searching for a proper recommendation from a reliable source. A consultant might also assist you to manage the transfer of your employee benefits to the new owner.

Final Words

Those are everything you have to know and consider in your business selling process.

Keep in mind that you really need to make proper research in order to get the best price of your business for sale.

Selling business is not an easy task in the current time frame. So seller or owner of the business has to follow different techniques and methods to sell its business in a most attractive way to the buyer of the business so that business is considered as most sufficient for purchasing in the current situation. Here we are going to discuss some related articles belong to the selling of the business;

Selling business is the most important part of every business industry. Seller wants to sell its business in most reasonable prices that give him benefit and also maintain the reputation of the business. Proper estimation of business is also very important to estimate the price of the business and also helpful in determining how much business is profitable for the buyer and how to make attractive for the buyer. Here are some steps that help to determine the price of the business that helps to prepare the real attractive business for the buyer and that attractive business provide profit to seller and buyer.

Tips related to market attraction:

Few tips for making the real attractive business are; make in order all the financial statement of the business, it means that must maintain the income statement, balance sheet, cash flow statement and discretionary earnings statement of the business. Properly estimate the tangible asset and determine their accurate value that includes all inventory, equipment, fixture, and furniture because the tangible asset worth is important for seller and buyer because it will affect the current market value and purchase price of the business. (DOYLE, 2019) Seller discretionary earning statement must be prepared with complete details. The income statement is completely different as compare to this statement because it presents the full earning power of the owner and also shows all the discretionary expenses, non-recurring purchases and one time adding back that are part of the business.

Determine the price of business:

When the price of the business is going to estimate then earnings multiples must be determined that include different elements like the recent performance of the organization, what policies, procedures, and system are used by the owner for the transition facilities. How the business manage the accurate, complete and clean financial record, maintain the customer list with complete contracts, complete description of the product that is manufactured in the organization, determine the recurring revenue of the business and all the approaches that help in managing the business income, explain the staff details of the business, and then explain the brand and reputation of the product of the business in the market. (Handelsman, 2019)

Right time for selling the business:

Proper calculations must occur that is helpful for the estimate the price of the business for better purchase and must do some business price checking as compare to other business in the market and its conditions. (Smallbusiness.wa.gov.au, 2019)Further key points related to real attraction business is that sell the business for the right reason at the right time in the market so the seller will get a good price of the business, seller must determine the worth of the business and determine the actual price of the business, seller must be clear about its selling business and determine all the terms and conditions in an effective manner.

Professional help:

Proper professional help must be required for the selling of the business so must hire the professional to get better advice for the selling the business and also help the seller to select right and better policies for the selling the business so the seller can get more benefit and the buyer also get more attraction for the business. so seller uses different techniques and methods to make the real attraction business for the buyer and also make more beneficial for the seller to sell the business and make a beneficial reputation for the business in the market.

What’s better than making money?

Learning to make money while you sleep!

Waking up wealthier than when you went to sleep is a great feeling. You don’t have to be ultra-rich to make money while you sleep. There are things you can do wherever you are in your financial plans so that you can create passive income sources.

Continue reading this article to learn how to create passive income streams that will pay you while you’re catching zzz’s.

The 411 on Ways to Make Money While You Sleep

Linear income is income you make by the work you do. You have to be there to make a linear income.

Passive income is income you earn by doing little to no daily work to keep it coming. That’s the kind of income we like, isn’t it?

1. High-Yield Savings

If you’re extremely risk-averse then high-yield savings accounts are a good way to generate passive income. While the returns aren’t very high, you don’t have a lot of risk with a savings account as you do with other options.

Most banks don’t pay enough to make any difference in your cash flow but if you go with an online bank, you can get some decent interest on your savings.

2. High Dividend Stocks

Ready to stop playing around with small returns? High dividend stocks can help you get into higher ROIs than high-yield savings. You do have to keep in mind that there are more risks with this investment.

Keep in mind that you can gain income from dividends and capital gains. Find a good brokerage with low fees and you’re off to the races.

3. Passive Real Estate

Real estate doesn’t sound like very passive investment, does it? You may be thinking about people flipping houses or managing renters. The good news is that this is not the only way you can make money from real estate.

If you own properties that you want to rent, you can hire a property management company to take care of this part of things. You simply have to be responsive when the property management company needs you for any major decisions.

There are other ways to make your real estate investment passive such as using a company like Fundrise or Realty Mogul.

4. Invest with a Robo Advisor

Don’t want to make your own decisions on what investments to buy? No worries — robots can do it for you.

These smart algorithms take the guesswork out of which investment plan is the best for you. When you use a robo advisor, you input your willingness for risk and the robo advisor is off to make a decision for your financial future and success.

5. Invest in CDs

CDs are another safe way to grow your money. They have a little bit better rates than high-yield savings accounts but you have to commit to keeping your money in the accounts for a certain amount of time.

The longer you commit to having your money in the CDs, the more money you’re going to have on the other side when the CD is mature.

One of the good things about CDs is that your interest is locked in no matter how much interest rates fluctuate during the length of your CD.

6. Invest in Index Funds

Investing in index funds allow you to invest in the general market. No worrying about which investments to pick or when you need to rebalance your portfolio.

7. YouTube

YouTube channels that are making big money aren’t only the gamers that you hear about. There are channels on beauty, kids opening toys and much more that are making a nice income on their videos.

8. Affiliate Income

Affiliate marketing is when you market other people’s products and get paid for commissions that come from your specific tracking URL. Affiliate income off a product can be anywhere from a few cents for a lead to hundreds or even thousands of dollars as a commission on a sale.

Creating a way to get the right people to those links can allow you to make a nice passive income. Blogging is one of the ways many people use to get traffic to affiliate offers.

9. Selling Ad Space

Another way to make money if you have a blog other than affiliate marketing is by selling ad space. If you can get people to look at your blog then advertisers want to get in front of those people as well.

You can charge individual businesses or you can use ad networks like Google’s own Adsense or companies like MediaVine.

Selling ad space can make a good income but it does take a lot of traffic to move the needle.

10. Create an Online Course

Chances are you know how to do something other people would like to do. If you create an online course, you can direct people to that course and earn money from each of the sales.

While you only get a percentage of the sale amount with affiliate marketing, when you make your own course, you get the whole amount of the sale. Since the course is a digital course, you don’t have a lot of costs so the profits are high.

Once you’ve made the course, the work you have to do is very minimal.

Ready to Up Your Money Game Even More?

Now that you know some great ways to make money while you sleep, why not continue learning more about making your money work for you? Or even better — other people’s money?

Read our article on debt today to learn when debt is good and when it’s bad.

It is quite tricky to balance the questions of buyers and retain the confidentiality of your business selling process. Creating a plan can help in setting when and what to information to release. Sometimes, revealing information at a wrong instance can adversely impact both the integrity and confidentiality of your business. Thus, you have to be careful about what information you must provide to your buyers.

Once you begin your business marketing, you will be able to observe changes in your sale. It is quite normal to feel these changes because business sale can reach anywhere you want. However, you should keep your ideas and thoughts only to yourself. A bit of important advice is that you should never reveal too much. It can come back to bite you in the end if you don’t plan beforehand.

Confidentiality is more than just a little important in the sales of both small and medium businesses.

It is also vital in reaching your own exist aims and goals. And it is significant for post-sale success of your business, particularly if you offer seller financing and also agree to receive a minor portion of the purchase price in the form of future payments. But you should keep it in mind that this portion is not substantial. If you do then any delay in future payments will not negatively affect you.

Letting the information out is harmful in several ways. Premature exposure of information can affect the business adversely. Following are some of these ways:

  • Employees, creditors, competitors, and customers become hesitant when a business is being sold. It often triggers reactions which can weaken the momentum of your business. It can even affect the value of business.
  • The hesitance of prospective buyers increases while purchasing a business if they feel it has no confidentiality. It would affect their decision of purchasing it if they feel that others know sensitive information about it.
  • Letting even confidants know about some secrets can launch a chain of gossip. Even if it is unintentional, it will still influence the integrity. If every person tells his close relative or a friend, it can spread the information about your sale intentions. This information can spread even quickly if the word reaches out to your competitors or employees.

Following are the actions which you should take for protecting your sale hopes and business:

Step 1. Advertising your business through listings and blind ads

  • You should not share your business or personal name until you have the commitments of your buyers. Until you don’t know whether they are trustworthy or not, you should not share even the minor details. Moreover, you should not offer your own name in for sale advertisements.
  • Advertise the strength and nature of your business rather than its name. For instance, you should only tell that the business has a strong base of customers. For starters, this information is more than enough.
  • You should direct all responses to an address which will not reveal your business or personal identity. When you are placing advertisements in traditional media, you should use the given P.O. Box. Other than it, you should use the email options which maintain your confidentiality. This will help in ensuring that you are not revealing anything significant. When you are utilizing sites for selling business, use the feature of the site which protects your identity. Otherwise, it can be quite messy to keep your integrity in check.

Step 2. Buyers should be pre-qualified before sharing important and sensitive information.

Actually, if you are feeling awkward in asking a buyer for the business and financial information before giving your business name, you are not unique or alone. However, you should remember:

  • Real buyers expect you to conduct screening before you share important information.
  • They also seem to care about the confidentiality of your business information. After all, they wish to know that their future business has proper trade secrets or not.
  • Buyers with proper qualification are serious shoppers. And they are also ready with the important information for taking the next steps. s

In accordance with the business brokers, only one out of ten buyers is serious. Only one of them has the qualification for making the purchase. That is the reason why pre-qualification has such significance. Without it, you can forget about sharing any type of information. It is better if you learn who is serious enough to purchase the business and who is not. It will do magic in saving your time.

An efficient way of pre-qualifying prospects is describing your response and business requirements. You should explain them in a way which assists unqualified buyers in opting themselves out.

Through the explanation of purchase size and business size, you will have a good chance of hearing from those who really have an interest in it. You can increase the chances if you ask buyers to explain their possible purchase capabilities.

In each and every advertisement, you must ask parties to respond with the information which explains:

  • Just what they want from a purchase
  • Their timeline of purchase
  • An explanation of their related experience
  • Their ability and interest in buying your business

In one sentence, you can relay this request. Please respond by explaining your investment capability, size and type of business, your experience, and your interest in this purchase.

Step 3. Make a system of inquiry response which shares information in phases.

There is no need for you to give all important information at once. In fact, providing important information in advertisements can reveal your identity. This way you cannot mask your identity even if you don’t reveal your business name. You can see below how and when to phase the delivery of your information.

Delivery Stage-Business-for-sale ads

A short description of price, size, strength, and type of business.

Request to all interest parties to respond by explaining their purchase qualifications and intentions.

Direct all responses to a blind media collection point, email address, or a P.O. box. Make sure that they don’t reveal your or business name.

Confidentiality Request

You can set up an online listing for requesting confidentiality. For instance, before offering further information, a confidentiality agreement must be signed by the party.

All brokers need buyers to offer non-disclosure agreements and financial capability before obtaining additional data.

Delivery Stage-Email or phone replies to ad respondents

Additional information and personal introduction do not reveal the business name and sensitive information.

You should confirm the timeline, purchase interests, and financial capability.

Provide to fax or email your short-selling summary. However, you should remove references to the identity of your business.

If capability and interest are high, you should request a meeting providing more data.

Confidentiality request

You should shake hands with the buyer before sharing information. In other words, it means a hand for a hand. Only offer information after you get buyer information.

Delivery Stage-Face-to-Face meeting

You should confirm the capability and interest of the buyer again. It will serve to strengthen your bonds and will also erase your suspicions. After the promise of confidentiality, provide buyer with the selling memo. Before making a promise, you should keep the memo under the table.

Confidential request

Hold an off-site meeting for protecting the identity of your business. Both of the parties should also sign the confidentiality agreement. Your attorney should prepare the agreement beforehand as it will prove to be helpful.

Delivery Stage-Providing selling memo

During this stage, you will provide your selling memo.

Confidential request

You should give the memo to the buyer only after the agreement has been signed. If you are unsure, you should only release the summary of memo.

Due Diligence

You should reveal business operations and financial records.

In addition, you should also release a copy of the memo with numbers on all pages.

Confidentiality request

You should not be jumping around reveal the information. Provide the information after receiving the formal letter of the buyer regarding the purchase of your business.

Step 4. Maintain confidentiality.

You should take the following steps for maintaining privacy during the process of selling:

  • Have an agreement of confidentiality ready for presentation to qualified buyers.

It is important to have a confidentiality agreement ready. You can make your attorney prepare it for you. You must make sure that you are including a clause which details about expiration data and mutual confidentiality. Normally, it is only after two years.

  • Create a private account for use with buyers.

You should create a separate account for talking with buyers. Otherwise, you face a risk of tipping off workers and causing concerns in the workplace. Instead of it, invite your buyers to offer a confidential email to address of non-business. You should not use the personal name because it can be traced easily. Rather, you should create one which masks your identity. Create an email with a completely different name.

  • You should direct calls to a non-personal number and the phone should be answered. Or you can record a voicemail for conveying greetings to business buyers.

You should remember that your personal number may not be right here. After all, you cannot let your competitors, employees, or vendors recognize who you are. Otherwise, it will be enough to wreak havoc on your firm.

  • Even after the agreement of confidentiality, don’t share financial details, client lists, trade secrets, and proprietary processes until you have an intent letter in your hand.

It is likely that your sale offering has the cash flow of owner and annual revenues. It might even have the asking price. You should refrain from sharing financial information until you know that the buyer really is going to purchase the business.

  • You must be ready for questions from associates and workers.

It is possible to tell the truth without having to spill the beans. It is really easy to say that you are creating an exit plan for ensuring the business’s future stability. You can also say that you are communicating with potential successors or partiers without announcing that they will replace you in the near time. Whenever someone asks you about your decision, you should be clam while ensuring that you are actually telling the truth.

Facing people can be quite difficult but you have to keep your composure. Practice how you reveal the information before actually providing enough data.

We have to admit, mastering the art of online advertising is tough. It seems to involve weaving expert knowledge across a board range of skill sets. If it would have been easy, no would have been making a fuss about it. In the virtual world, online advertising is quite complex. It is like a surface of the water and you don’t know the depth. If you don’t take proper steps and are not careful, you might just sink. And it is important to realize that we are not talking about search engine optimization. Amateur entrepreneurs believe that SEO is necessary for online advertising but in this case, it is different.

For selling a business, advertising is necessary for reaching the target audience. This art can be quite helpful in saving time and getting potential buyers. However, it can be costly as well when you are not careful. You must know the hardships of advertising online before you take a step in its direction. But this also raises a question.

So how come you are able to reach your potential buyers without harming your business? Actually, it is clear that advertising business and making traction will either consume a lot of money or time. You also know that you cannot spend the former but you are willing to take a gamble on the latter. Thus, you need to know the right strategies before you jump to advertise your business.

How to advertise your business online for sale

For an entrepreneur who loves technology, building an online business on a shoestring budget is not a fantasy. It is a reality but we cannot say the same about those who are not related to technology. For such people, creating the right strategies can be a costly and painful experience. Not every person supports the budgets of making such mistakes. Can you make a mistake that will cost you thousands of dollars?

No, you cannot afford it at all. Yet, it is quite significant to keep in mind that attempting any of these marketing methods which are low in the budget does not guarantee you success. Most of these methods need in-depth knowledge in their own respective areas. It is like knowing the depth of an ocean before attempting to dive in. Still, these are some of the most incredible skills that one can utilize for advertising online without having to invest a large amount of money.

Blogging

Blogging is not only one of the easiest methods but it is also one of the most complex methods of advertising. Building a blog for the means of selling your business can be tricky. You have to make sure that you are not revealing too much information about your business while still advertising. It is a cost-effective way of reaching a large base of audience. It needs persistence, passion, and an inherent understanding of the matter. You must also know how to advertising in a blog.

Blogging can prove to be helpful in reaching numerous eyes. However, it also seems to pose a threat to the business. For instance, a large organization should not think about using this method. Large organizations have to protect their integrity and confidentiality and that is why they cannot advertise their business openly. It affects their secrecy and that is why they have to advertise in a confidential manner. It is, however, useful for small businesses who work openly.

There are several ways of blogging and it is up to you to choose the best method. First of all, you can learn to create blogs by undergoing different courses. It can give you the necessary expertise to create them. You can also hire a blogger for developing quality blogs which can reach a wider audience. The first option is preferable because it needs only a little investment and also offers you the knowledge for creating reliable blogs.

Video

Do you wish to reach an engaged and large audience of buyers? If you wish to sell your business without the wastage of time, you should create a short video. You can choose a popular platform that is utilized by countless people. For instance, YouTube is a video platform which is used for advertising as well. You can launch a compelling and high-quality video on the platform to be watched by viewers. Automatically, it can reach the most attractive buyer.

Although you might find it time-consuming, it is one of the best ways of advertising online. Making a short video about your business is more interactive than creating a blog. After all, viewers seem to prefer a visual experience more than reading. Blogging can be useful as a primary method but having a short-video proves to be effective as a back-up. You can provide the video to your chosen buyers and let them know about your business.

There is one thing that you should keep in mind. The video has to cover only the necessary information like the nature of business and some general functions. And you should make it as short as possible. Sometimes, watching a long video can bore viewers.

Like other low-cost strategies for online advertising, it takes some time for reaching your audience. But you will be able to observe the change yourself when buyers reach out to you. Short videos provide you with the opportunity of reaching your audience quickly with less investment than other methods. Keep your video creative so that it can impress buyers.

Email Marketing

Email marketing is one of the easiest low-cost advertising methods for attracting buyers. The reason why it is preferable is that it offers the best return on your time investment. All you need to do is to send an email to your selected buyer and nothing else. But for succeeding with email marketing, you must attract buyers and it is not as simple as it sounds.

By creating a compelling style, you can attract the right buyers who will be willing to at least contact you. However, you have to make sure that you are not providing any confidential information to your buyers. Such kind of information should be exchanged only when you have made a deal with the buyer.

Efficient email marketing is actually a skill that includes writing attractive copies of sales. And you can develop it only over time. You should look at the email from the point of view of buyers as well. It can help you in finding issues and improving the email.

Social Media Marketing

We can say that anyone serious about marketing on a little budget realizes that he or she must master the art of online advertising through SMM. Although this strategy costs very little, it is quite difficult to make real tractions without having to reach out to power users and influencers.

Still, the field of social media is filled with numerous customers who are willing to purchase your business. It is just a matter for reaching out to them and finding the potential buyer to sell your business.

The process of social media marketing seems to take a serious understanding of online marketing and human behaviour for seeing any traction. And in the start, you may have to spend little money for increasing your visibility and reaching out to customers. However, it will also help in coming across all buyers and choosing the right one from them. Like any task, it needs you to work hard and when you do, it gives you returns.

Advertisement Listing

We all know that Google has a place for entrepreneurs who wish to promote either their services or their business. On search pages, web pages, and even on YouTube, there are advertisements. Do you know how much it influences those who are surfing on the internet?

Organizations and people have to pay Google for making their advertisements appear on the above mentioned platforms. It is one of the easiest and simplest methods of advertising. You can choose a specific message to appear and it will appear on different sites. Viewers who are visiting those sites will be able to see those advertisements.

It can not only increase your reach but it can also decrease the consumption of time. The reason why it is considered effective is that it is both attractive and simple. You can display your message and it will give you results. It is just as simple as that. You don’t need to have in-depth knowledge about it to make it work as well.

Moreover, it protects the confidentiality of your business as well.

Content Marketing

It can be said that content marketing is one of the most utilized methods of reaching the desired audience within a little budget. Marketers do it often through popular sites which allow almost everyone to post on them. Websites like SlideShare.net, Quora.com, Medium.com, and the new platform of LinkedIn provide entrepreneurs with opportunities for content marketing. You can even post a message regarding your decision to sell your business.

By engaging yourself in content marketing, you will get to know attraction marketing. Basically, you are attracting customers to your business by letting them know that a good business is on sale. It really is a great method of getting the word out, particularly if your business is small and new.

Referral Marketing

Referral marketing is also referred to as word-of-mouth advertising. It is one of the most low-cost and effective ways of reaching a wide audience. When buyers know that you are providing them with the right information, they will spread the information. It can be both beneficial and harmful for your business. Why is that?

Sometimes, entrepreneurs reveal confidential information about their businesses. When people spread this information, their businesses lose their integrity. For instance, if trade information is revealed then it can be utilized by competitors. You have to make sure that you are not doing anything like this. You have to display only the general information until you have a potential buyer who will really purchase your business.

Overall, all of these methods have their benefits and drawbacks if not done correctly. You just have to make sure that you are planning each and every step that you are taking.

Let me guess: you’ve heard that it’s possible to make money whilst sleeping through affiliate marketing, right?

Well, the truth is it’s possible. Tim Ferris’ 4-Hour Workweek book sparked a revolution that has got people thinking of how to become an affiliate marketer.

The appeal of not working so much, whilst still being able to pay bills and have some cash stored away is quite irresistible.  Think about it, who doesn’t love making money while they sleep and waking up to cash deposits? Of course, we all do.

As with all things though, there’s a learning curve. My goal here is to make it easy for you to learn what to do to get a fast start. Let’s start by clarifying what affiliate marketing is, shall we?

What is Affiliate Marketing?

One of the concepts in the book revolves around making commissions off the sale of certain products. Only this time, you wouldn’t be holding inventory or dealing directly with products.

You’ll just link to and recommend those products to people who need it. And when they buy, you get a cut of the commission.

How much you get as commission is entirely dependent on the merchant offering you the product. Commissions can be as low as 4 percent or as high as 100 percent.

The good thing is affiliate marketing is pretty easy when you know how. You just need to follow a few steps, and you’ll be on your way to making a lot of moolah.

What are these steps?

Find the Right Products or Offers

This is usually the most difficult part. Finding popular products, with as little competition as possible is often the best.

Unfortunately, this is just as difficult as finding a unicorn. The reality is, if a product is popular, chances are there’s some form of competition already.

So, forget the myth of little competition and popular products. It doesn’t exist. That being said, the good news is there’s a lot of money in popular products and niches.

You just need to find those niches and products where you can compete and get your share of the traffic. At the end of the day, it’s about getting the right offers in front of the right people.

So, the very first step in affiliate marketing is finding the right, profitable products. The good news is there’s a ton of affiliate programs in various niches. If you don’t know where to start, check out this resource. There are 25 affiliate networks to choose from.

Once you find the ones with the offers you like, all you have to do is sign up with them and join. Some of them will require you to have a website though. So, let’s talk about that.

Set Up a Website

If you’re wondering how to become an affiliate marketer without a website, forget it. It won’t work. You need at least one website if you want to succeed in this business.

The days of sending traffic directly to affiliate links are long gone. You need to have a fully functioning website. You can either build this from scratch or buy a new website.

Building from scratch can be time-consuming. And you’ll have to start sending traffic to it. If you’re tight on cash, this is probably the way to go.

The good news is that with platforms like wordpress, WIX, and Squarespace, you can have a fully functional website up and running within the hour.

This is possible, thanks to the abundance of themes, templates and drag and drop interface that makes building a website very easy.

If you decide to buy a website though, that can work too. The important thing is to have a website that’s consistently generating traffic -we’ll talk about that next- and has an active audience.

Drive Traffic to Your Offers

There are two general ways to drive traffic to your website. You can either generate free traffic through organic search engine rankings or go the paid traffic route.

Both have their pros and cons. If you prefer organic traffic generation, you’ll have to learn and master search engine optimization (SEO). This is the process of getting your website ranked for target keywords on the search engines.

When done correctly, this is capable of generating traffic and leads, without costing you money. The only downside is that SEO takes time. You probably won’t see any results for at least 6 months if it’s a brand new website.

But, once you start ranking, the traffic will be huge, and your commissions will start flowing.

With paid traffic though, you can start generating traffic instantly. Unfortunately, this requires considerable capital. You’ll have to advertise on popular platforms like Facebook, Instagram, Yahoo, and Google.

These platforms have various advertising models that you can take advantage of, and use to get that traffic flowing to your website.

Collect Your Commissions

Once you start driving traffic to your website, you’ll need to tweak and optimize your website to increase your conversion rate.

At the end of the day, you should start generating commissions from the traffic you funnel to your offers through your website.

Your website should be properly optimized for higher conversion rates though. This way, you can maximize the traffic and get the max commission possible.

Is that All on How to Become an Affiliate Marketer?

Pretty much. This is all the basic information you need if you’re interested in how to become an affiliate marketer. Affiliate marketing is pretty easy once you get the hang of it.

And after building that first successful affiliate website, make sure to build others to increase your income. Some affiliates have as many as 100 small affiliate sites, while others have a few large sites. In the end, it’s all about how much you can handle.

If you need more information and help on building successful affiliate websites and generating passive income, get in touch with me today.

When you start a small business, you’ll need to stay ahead of the game with the way you handle your finances and obligations.

For starters, put some tax strategies together that will help you pay the government and keep your business afloat. By considering the strategies that’ll help you handle your obligations, you’re better able to let your business grow the way it’s supposed to.

Follow these strategies to get the help that you need with your business taxes.

1. Get Strategic and Diligent About Your Expense Deductions

The first thing you’ll need to know about tax strategies is how you can get deductions. Since you have expenses that eat into your budget, it’s only right that you get a return on this by reducing your tax bill.

To reduce your tax bill, you will need to keep track of your deductible expenses. Some examples of these deductions include business utilities, supplies, office mortgage or rent, travel, and education.

These are the deductions that will help your business keep more cash flow.

2. Save Your Tax Money in a Separate Account and Pay Quarterly

You’ll save yourself a lot of trouble by paying estimated taxes each quarter.

To keep track of your tax money, you will want to open a separate bank account in which you only put tax money aside. That way you won’t be tempted to spend it and will handle your taxes on time.

Paying your taxes early requires preparation, so don’t cut corners.

3. Ensure You Have the Right Business Designation

Small businesses can be filed under several different designations, to include sole proprietorship, Limited Liability Company (LLC), and general partnership. As such, each business type has different tax considerations and obligations.

For example, a sole proprietorship will still involve self-employment taxes, while other small business types will require you to pay taxes on your employees. Choose the business designation that is both accurate and advantageous to your company.

4. Understand the More In-Depth Deductions You’re Entitled To

There are always deductions that you might be entitled to that you aren’t aware of. Each year the federal and state government put out new tax credits, so you will need to get in touch with a certified public accountant (CPA) that can help you take advantage of them.

You’ll also need to be aware of potential tax implications for everything from health insurance to stock options.

5. Keep Track of all Your Records

Being organized is the name of the game when it comes to running a small business. You should keep tabs on all your paperwork and also be sure that you keep digital records.

For example, if you outsource projects to independent contractors, be sure that you keep track of all your 1099 documents. Never throw away your tax returns, as you never know when you’ll need to reference them.

Consider These Tax Strategies For Your Small Business

There are several tax strategies you’ll want to employ when you are trying to do right by your small business. Mastering this info will help your company thrive.

Think about these tips and stay tuned to our content for more info on investment banking, taxes and so much more.

When it comes time to forming business agreements, you’ll need to make sure that all your agreements are detailed, rock solid and ironclad.

In this regard, there are a number of traps that companies fall into by failing to create these agreements in the proper or most effective way. Whether you want to know more about verbal contracts, written contracts, or even what constitutes a contract, sometimes it’s best to learn what not to do.

Consider the points before and make sure to avoid these mistakes.

1. Failing to Include the Necessary Terms in the Contract

Regardless of what type of contract you put together, there are a few essential terms that you need to include.

For starters, it’s important that you include terms of acceptance and offer. It’s also important to include consideration, which lists the obligations that both parties are willingly bound to.

Whenever contracts are put into place, these sorts of terms need to be included so that you have grounds to enforce the contract if it is ever contested in court.

2. Failure to Have any Form of Agreement

When at all possible, you should have a written contract as opposed to a verbal contract.

This is the big one that a lot of companies end up falling into. Don’t assume that just because you know someone, that you don’t need to put the agreements in writing, or at the very least some form of an expressly detailed format.

When you don’t have the terms laid out plainly, you are only operating on assumptions, which don’t protect you in any form or fashion in court. This can be the difference between lots of money that you are entitled to and equity in the business.

3. Overpromising and Under Delivering on Investors

Your company needs equity when it’s getting started, and this often means making the right investment decisions.

Getting investors involved is the first part of the business because it helps you to get capital and use it to get up and running. When you are putting business partners together, they will often be likely to want to go forward with you when you can show and prove that you have investors in place.

However, never feel tempted to embellish or overshoot your mark to the point that you are making promises that you can’t keep. In many cases, your agreements will be put into place contingent upon your ability to put investors in place.

If you can’t deliver, you might also lose several business partners.

There are several investment strategies you can put into place when it’s time to start a business. You can find investors through places like online resources, alumni networks, crowdfunding, and mentors.

By factoring in these strategies it’ll be easier for you to get your business up and running.

Written and Verbal Contracts — Handle Your Business

Whether you are looking into verbal contracts or written contracts, be sure to handle your business accordingly. These tips will get you started.

Take the time to contact us when you need any sort of business or investing advice.