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Prepare for Selling your Business.

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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.

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.

For your business to thrive and succeed, you’ve got to get a handle on your cash flow management.

The cream of the crop learn the best ways to grow their revenue while managing the cash that goes in and out on a regular basis. Working with your cash flow will be the difference between a business that thrives and one that just survives.

To this end, keep reading to learn all that you can about managing your cash flow.

1. Get a Handle on Your Accounts Receivable

Accounts receivable refers to the money that your clients owe you for business rendered. While this is money you earned, it’s not real until the money changes hands and hits your bank account.

The way you’ll collect is by setting up a limit for how many days you’ll allow these receivables to remain outstanding. This may be somewhere between 15 and 45 days.

You can also create a credit policy for your customers and make sure that you enforce the policy. Keep track of your customer’s payments and handle them accordingly.

2. Create and Use Cash Flow Projections

To really manage your cash flow, create projections and stick to them. There are lots of cash flow worksheets you can use to make sure that these measures are handled with accuracy.

Double and triple check your projections with the actual results, and use a monitor to keep you on track.

3. Reduce Your Expenditures

Of course, one of the best ways to handle your cash flow is by cutting expenditures.

When you handle your expenses, you’ll be able to stick to your budget and stop the bleeding with all of your liabilities. Manage your utilities and get your expenditures in check and your cash flow will always be healthier.

4. Build Your Cash Reserves

It’s also important that you take your time to build your cash reserves. Set aside money for your savings and you will be in good hands when it comes to dealing with rainy day expenses.

You can also work with an investment banker that can help you grow your revenue and stash some money aside in reserves. Earmark some money in your accounts and you will be taken care of when it comes to your business cash flow.

5. Always Work on Boosting Your Sales

Take the time to improve your sales and you will always have more cash flow. This means working with your marketing company, setting pricing strategies and learning your consumer.

When you always have products that sell, you will always be able to have rich cash flow in your business.

Handle Your Cash Flow Management

As you can see, these tips will be useful when you would like to get more cash flow out of your business. By utilizing the tips presented, you’ll have a great shot at managing your finances and growing your business to the fullest.

These strategies will be helpful no matter what industry you work in.

Use these tips and contact us when you want to learn more about cash flow management.

Considering how extensive they are, it’s difficult to know the ins and outs of all the laws pertaining to managing and operating a business.

However, effective and well-planned legal strategies are the key to maximizing success in the corporate world. The law can often be limiting and restrictive, but when used to one’s advantage, it’s incredibly rewarding.

It’s not enough to treat local and international legal policies as mere parameters within which business is conducted. These days, law firms are facing intense competition as corporations invest in internal legal teams and strategists. These experts are hired by companies who are looking to seize and maintain a long-term competitive advantage.

According to researchers, there are five legal pathways that companies can take when it comes to shaping their policies. They are:

(1) avoidance—wherein companies avoid paying heed to the law and the consequences of their decisions

(2) compliance—this approach leads to companies working within the limits of the law, which is considered unwelcome and restrictive, but also necessary

(3) prevention—here, the law is viewed as guidance, with companies and executives actively seeking legal counsel. MIT Sloan refers to this as a “proactive instead of reactive” approach to law

(4) value—the law in this pathway is essential when trying to add value to a company’s products or services. That is to say, the company’s legal teams work to maximize return on investments through the use of law, factoring in important stakeholders—both internal and external. In fact, the legal team itself becomes a stakeholder in this approach

(5) transformation—this is when companies successfully integrate legal frameworks into their corporate strategies and business models. It can be a tricky transition to make, especially for companies that have operated for a while without following this model, or have no resources to do so.

It’s about figuring out your company and its executives’ understanding of legal models and frameworks to see which pathway suits your organization more. To learn more about what legal strategy works for you, get in touch with me through my website.

Economic instability, political unrest, devaluation of currencies, and the on-going US-China trade war signals that we aren’t very far from a global economic crisis. Organizations seek to explore alternative investment options to keep the business functions going and to integrate some level of sustainability.

But if we’re heading to an economic downfall, is it sane to risk your investments in commodities? The answer is, YES!

Let’s understand how:

Their value rises when stocks and bonds fall

Commodities like precious metals, crops, and oil are negatively correlated with bonds and stocks, which means during a period of inflation when interest rates rise and the value of stocks and bonds fall; the value of commodities increase.

So if you’re worried about inflation affecting your investments, commodities are an ideal way to hedge against it and balance the overall value of your organizational portfolio. According to an article published in Forbes, the value of commodities will see an impressive increase by the end of this year.

They provide a store of value

A store of value means that the asset can be sold at a later time with its original value intact, which means if you invest in commodities, there’s a high probability that you’ll get an equal or higher return when you sell them.

Let’s imagine a scenario where the global economy stabilizes and there’s no inflation; the value of stocks and bonds increases. What will happen to the value of commodities? Will you lose your investments?

In such a situation, your investments might not yield high levels of profitability but they’ll retain their original value and if you choose not to sell them immediately, their value will increase over time because they survive all sorts of economic shocks. Precious metals, especially gold, is said to be an excellent store of value.

They’re liquid assets

Liquid assets can be converted into cash easily and quickly with no or low loss of value. Commodities are liquid assets and you can be sure that there will always be buyers for it. So if you need extra cash for addressing a financial emergency in your organization, you can always sell the commodities.

If you want to learn more about investing in commodities, visit our website. We have a number of informative resources that can help you to balance your organizational portfolio and increase its overall value.

When you invest your money, you spend hours researching different investment options, markets, past growth trends and future potential. Firms do the same; except that their stakes are higher, they spend months in making their investment plans and require a team of experienced financial experts who know the financial markets inside out.

Not every firm wants to or can make an internal investment department so they outsource their investment management. Here are 3 things you need to know about outsourcing your investment management needs.

It’s a growing trend

The outsourcing investment trend gained its initial popularity among small firms who couldn’t afford to make an investment team but now even large corporations and institutional investors are opting for it to manage their multi-billion dollar investments as it provides better profit prospects, improved risk management, and greater compliance with the complex regulatory framework. According to a report, in 2017, the global value of outsourced investing assets reached $1.69 trillion with an annual percentage increase of 11.3%.

It reduces costs

Like any other outsourcing decisions, companies outsource their investment planning to reduce costs. Imagine the salaries of investment experts, material costs, utilities, and overhead expenses that’ll incur if you hire an in-house investment team. And if you choose not to have experts do the job for you, you’ll be risking all your investments. Outsourcing investment management is a cost-effective option and involves hiring an outsourced chief investment officer (OCIO) or a Strategic Investment Group and delegate all or part of your investment management to them.

It increases returns on your investment

The main business function of an OCIO or Strategic Investment Group is to invest in financial products so they operate in the financial market, have all the insights and can respond to dynamic market conditions to maximize your return on investments. They use their expertise, knowledge, and experience to manage your investment portfolio and help you achieve your investment objectives.

If you’d like to understand more about how outsourcing investment can help companies, visit moneycashandvalue.com. We have a host of resources that can help you take your business to the next level!

The United States stock market is on fire. In fact, all three major stock indices are trading near their all-time highs. If any optimistic news breaks on the trade dispute with China, stocks are certain to blow past prior records.

That being said, many financial experts are warning that the market is overpriced. To reach this conclusion, many rely on valuations like forward price earnings (PE) ratios.

However, it is our experience that these conventional valuation strategies miss the mark. The truth is that business valuation methods are incredibly complex.

However, there is one indicator that does not lie and that is cash. Read on for a guide to understanding business valuation methods.

Price to Earnings Ratio

One of the most popular valuation metrics is PE ratios. Simply put, this compares a stock’s price against its earnings.

However, this method is flawed because earnings reports can be manipulated. To make earnings look better than they actually are, corporate accountants apply adjustments that are not transparent to the average investor.

For example, some accountants use rule changes to slide earnings to different reporting periods. While the business base remains unchanged, it gives investors the perception that earnings have increased.

Another major issue with PE ratios is that assets and liabilities are not included in the formula. The simplistic nature of the PE ratio glosses over companies with substantial operating cash flow on hand. It also does not place weight on companies with unacceptable levels of debt.

Lastly, statistical analysis disproves any correlation between earnings and value. Companies with high earnings per share (EPS) growth do not produce higher PE multiples.

Rely on Cash Instead

Several valuation methods rely on free cash flow instead. This is a better strategy as companies with cash on hand are healthier than those with massive debt.

One evaluation strategy is referred to as a discounted cash flow model (DCF). The DCF model is based on future cash flows. When the DCF value is higher than the share price, it means a buying opportunity is present.

It is important to use the DCF model only for companies that do not give a dividend. Companies that provide a dividend are certain to calculate a negative DCF value.

When a dividend is present, experts turn to free cash flow instead. This involves calculating the delta between operating cash flow and capital expenditures.

Another popular indicator is price-to-cash flow (P/CF). This calculation is simple like the PE ratio, however, uses operating cash flow per share instead of earnings.

What the P/CF ratio reveals is how much an investor is willing to pay for cash flow. Consider a company trading for $50 and having operating cash flow of $5 per share. For every dollar of cash flow, investors are amenable to paying $10 per share.

A Recap of Business Valuation Methods

Every investor has their own magical formula to evaluate stocks. Our advice is to express skepticism towards methods relying on earnings. Instead, the best approach in our experience is to review the company’s cash position.

If you enjoyed this article about different valuation methods, check out our corporate finance blog for other great content.

Getting into the game with your business can be both inspirational and anxiety-inducing. If you are trying to give your budding company some legs, reaching out to an investment banker is one of the next steps.

However, it’s important that you learn more about why investment banking can be a valuable tool for you.

Consider these tips so that you can get the most out of your company through the assistance of an investment banker.