The Importance of Business Strategy

Exit Strategy, in most cases means the way you will go about selling your business. There are many Reasons why having an exit strategy is important — even if you have no immediate intention of selling your company. Some reasons may be as follows:

·         Sudden illnesses or family issues take time away from your focus on your business.

·         A recession may negatively impact your business.

·         At some point, you may want to retire and you will want to capture the value of your company.

·         Many small eCommerce businesses are highly dependent on a single product or product line. A shift in trends may lower your revenues.

 

Why Plan Your Exit?

It can be a lengthy process. Think about selling your house. The most common advice is to make major repairs, paint the house, spruce up the yard, and get rid of clutter. Likely, selling your business will have the same sort of procedure that you will need to follow.

Determining a Value

Determining a Value of your business is also a key factor, there are many factors that affect the valuation and overall marketability of your company. A successful sale of your business will depend on how you are executing these key factors.

There are many moving parts that will impact your company’s valuation. Planning a strategy to sell your company starts with evaluating potential buyers and what will be important to them. Next, evaluate your strengths and weaknesses with each of the key factors discussed above. Collect all the facts and data for each factor and include it in a prospectus, likely with the help of a broker. At that point, you can estimate a valuation. If it’s too low, invest some effort into improving the key factors or in increasing your net cash flow.

The most successful exit strategies are the ones that were planned years in advance. Frequently, they leverage one or two key factors such as profits, customer experience, supply chain, or organization. Think about an exit strategy for your business and plan ahead. You can then decide when to act.

Author: M Khanna director of Businesses2sell

Franchise Businesses in Australia

Franchising Is an established lifestyle In Australia, with more franchising sites per capita in comparison with other countries In the world. Your Foreign franchising Industry's yearly turnover Is usually projected at US$33 million. Throughout 1997 franchising grew by 12.7% when compared with 5% In America. Even though growth in franchising may proceed, any weakening of the Australian dollar and also the existing Oriental recession may stress on franchising's growth prospects.

However, franchising remains renowned in Sydney simply because franchise corporations appreciate more than two times the actual achievement charge of other kinds of smaller establishments. Using a final amount of 26, 000 franchises as well as 35, 500 small business sites, franchising makes up about nearly 25% on going. Even though key franchises will still be the actual element, previously recognized US takeaway food conglomerates, franchising has become noticed in order to plan for all types of Foreign business and has come to be extremely competing.

Marketplace access options can be found, however there exists a good inherent disinclination by regional businesses to fund new master franchises seeing that venture capital is not quickly identified. Tastes usually are regarding foreign franchisers to make the 1st expense by means of starting any part or even department office also to offer permits in order to franchises.

Until just lately the industry managed within any non-reflex Value of Process. Your dysfunction from the Value in 1996 found the actual organization from the Team Authorities of Sydney (FCA), the industry affiliation. Throughout 1998. Your Foreign Rivalry as well as Buyer Percentage (ACCC) introduced the actual launch from the Franchising Value of Conduct. The revolutionary necessary Value will be required to boost franchiser/franchisee relations as well as general assurance in the business.

Portions of the actual Value will be enforceable from July 1st, 1998 while using the remaining since October 1. One of several essential popular features of the actual Value can be a dependence on franchises to produce any disclosure document in order to likely franchises.. Read more at: http://www.businesses2sell.com.au/blogs/2013/10/franchise-businesses-in-australia.php

Why to Buy an Already Existing Business?

If you want to avoid the immense risks which are involved in starting a business from scratch then the best option available is to buy an already well established business. These days buying a business is becoming a trend and not everyone wants to start a business from scratch.

The first basic step which needs to be done before buying a business is to decide, decide which type of business you want to buy before you begin your research. If you want the list of businesses available in your preferred locality then you can contact a business broker, they have a wide range of businesses and will surely help you make up your mind quickly.

It’s always a good thing to talk to the people who play an important role in your life and those who are likely to be affected by the venture. Let them know about the hours that you would have to work and the risk involved. Becoming an entrepreneur is not an easy task, though buying an existing business does lower the risk but they don’t completely remove them.

If this is your first time in the business industry then using the assistant of a business broker may not be such a bad deal. All the important ground work in terms of research would already have been done by the business broker and you can focus on finalizing the deal.

A business broker will handle all the complicated negotiations which you may just find too hard to handle. Once you have an area of interest; you can start thinking about the size of the business that you want to buy and the location of prospective sellers etc. Know your financial resources so that you don’t spend your time looking at businesses which are far beyond your initial capital. The next thing which you have to do is to find out the company’s value.

Always know that the asking price which a seller gives is always negotiable, even in a situation where the seller is firm on their price. You can even hire an experience financier to get the business evaluated so that you can challenge the price of the business with the seller with facts and statistics. If you want to you can even finance a deal with the seller....read more at: http://www.businesses2sell.com.au/blogs/2013/10/why-to-buy-an-already-existing-business.php