Around the Web: A Week in Summary
A recent article posted on BizJournals.com entitled “6 Things to Consider for Financing the Purchase of a Small Business” explores the following small business financing options:
- Your Own Money
- Seller Financing
- SBA Loans
- Business Loans
- Leveraged Buyouts
- Assumption of Debts
These are some of the most common methods for funding the purchase of a small business; this is not a comprehensive list. With other funding options including lines of credit and invoice factoring, there are certainly other options available. When it comes down to making a decision, a prospective buyer should make the choice that best fits their situation.
A recent article from The Denver Post entitled “To Maximize the Sale of Your Company, Build Business Value” speaks on the importance of building business value in the time preceding a business sale. This not only makes a business more attractive to a potential buyer, but also drives higher perceived and actual value.
Some important factors in this process involve a heightened presence of the owner in the operations of the business and the development of a competent management team that can help to execute the plan to drive growth.
A recent article posted on BizJournals.com entitled “Closely-held Businesses Head Toward a Slippery Slope” explores a startling truth about small businesses in the United States: around 60 percent of owners will likely retire within the next 10 years. On the surface, this may sound unimportant or irrelevant to the small business world. But just beyond the surface lies the fact that almost 70 percent of successions fail. But still, what does this mean for the small business sector?
Finding a suitable well-trained successor will be of absolute necessity within the next 10 years for these 60 percent of retiring owners. Failure is inherently more common than success post-transition, so finding qualified individuals to take over will be paramount to continued small business success in the United States.