Not everyone will agree but I am sure it’s closer to the truth than one might think: buying or selling a business is unlike anything else of value. To support my argument there are a number of reasons. Let’s look at some of them.

The price of a business is determined by a valuation. The rules of a valuation come from the law and then legal cases as well as the Internal Revenue Code and custom. The price for most other items of value are determined by market comparables (for example, when valuing a house), looking up a book or some online site such as Kelly Blue Book (for cars) or results from eBay or some other online service (for any item you can think of). That is, there is no legal interference with the value of any these items except a business.
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The sales and marketing plan is a document that most entrepreneurs don’t have time to put together.  I’m not sure why that is as it’s just as important as the business plan and indeed complements it.

The business plan outlines the vision, strategic direction and business and financial goals of the business.  The sales and marketing plan breaks down the business plan to show how you are going to get there and the tactics to use to attract the right customers.

The sales and marketing plan can be as complex and as detailed as you wish to make it.  It can include a list of tactics you could deploy, it can list and detail only specific tactics you plan to use or a combination of both.  It’s important, though, that you understand how each idea is to be used but you have some idea of the expected results each tactic should bring to the business.  There is an old adage in business management: If you cannot measure it you cannot manage it.  There is also a famous quote that says “I’m convinced that 50% of my marketing is effective, I just can’t tell which 50%.”
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All businesses have two classes of assets. They are either tangible or intangible. A tangible asset is property or something you can touch, for example a piece of land or a building. Other examples include a photocopier or desk and chair and these are collectively called Fixtures, Furniture and Equipment. Intangible assets cover a range of items and include goodwill, covenants not to compete, trademarks and trade names, licenses and permits and more. So a good question at this point is “Why do I want to know this and why do I care?”

The answer to the above question whether you are a buyer or seller is that when you are buying or selling a business, there are tax implications you need to know about. And this especially applies if you are the seller as it will affect the amount of money you put in your pocket once the business sells and eventually catches up with the buyer when they sell, plus during their ownership of the business with the depreciation they are able to take as a tax deduction. READ MORE

Small businesses are a critical part of the economic landscape. All the businesses on the Dow 30 started as small businesses, reached a critical mass that then led them to becoming a public company and grow to where they are today. Depending on whose statistics you use, small businesses make up 98% of all businesses in the US economy.
One of the benefits of being the owner of a privately held small business is that you get to take tax deductions that wage and salary earners are unable to claim. This is all part of the risk and reward scenario that comes from owning and operating a small business.

When it comes to selling the business, these tax deductions can get in the way as it reduces the true cash flow of the business, which affects the business valuation and therefore how much the buyer is willing to pay. To navigate this scenario, it’s important to understand how to deal with these legitimate tax deductions or as they are called, add backs.
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We’re all familiar with the story about Dr. Jekyll and Mr. Hyde; the person with two completely different personalities. Just as there are different types of buyers with different motivations, there are also buyers with different types of personalities. If you’re planning on buying a business or if you own a business that you want to sell, here are some Dr. Jekyll “traits” that would discourage a seller revealing too much information about their business.

1. Job Seeker
Try to establish this one early on as they are a complete time waster. Asking for a financial statement generally takes care of them. They have no money and no ambition. They don’t like their current job so if they find the perfect business with zero down payment, they will be made. There are quite a few job seekers out there so flush these out early.
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Here are five more things to consider when hiring a Business Broker or Sales Agent or third party to represent you in a transaction, whether you are buying or selling a business.

1. Association memberships

Accreditations are good; keeping up with the accreditations is better. To see if a Business Broker or Sales Agent is a member of their industry association, check the International Business Brokers Association (IBBA) at http://www.ibba.org or the California Association of Business Brokers (CABB) at http://www.cabb.org or find an organization or chapter of a brokers association in your state.

Communication

Selling or buying a business requires dealing in financial, legal, industry and other forms of jargon. Are you able to communicate easily and clearly with your Business Broker or Sales Agent and understand what they are talking about?

Network of professionals

Selling a business often brings together different professionals such as Accountants, Attorneys, Property Management Companies, Landlords, Escrow officers, Appraisers, Tax Agents, Lenders, Franchisors and Financial Planners. Does your Business Broker or Sales Agent have professionals he can introduce you to if your business requires that expertise?
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There are many options to considering when hiring a Business Broker or Sales Agent or third party to represent you in a transaction, whether you are buying or selling a business. This applies whether you are buying or selling a business in Sacramento, California, or anywhere else in the United States.

To help you make the right decision, consider the following.

Trust and Ethics.

When selling your business you want to feel assured the Business Broker or Sales Agent has a strong commitment to trust and ethics so you know your business and its interests are fully protected. Getting an ethical and trust commitment from your Business Broker or Sales Agent is the most important ingredient. It is critical and should be non-negotiable.
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