Seller financing is a gate you want open on your road to business success. You may have made it past all the other checkpoints, but if you’re unable to secure financing for the business you want to buy, your journey ends here.
What makes one business better than another for you when you are buying a business? Some of the considerations are obvious. Others are not. As you explore the business landscape, keep these 12 markers for choosing a business in view.
You have a good sense of the size and type of business you want to buy and how such a business will help you accomplish what you want in life. You’re ready to make your vision a reality.
The evidence is out there: more women in Canada now own businesses and more women in Canada are now engaged in starting businesses. The count varies according to who reports what and where.
Most of the people who come to us to buy a business are first-time buyers. And likewise, most of the business owners who contact us about selling their business have never gone through the process before. Buying or selling, there’s a lot for them to absorb. And while we do our best to guide them each step of the way, the subject matter can be a bit daunting for those unused to the terms that come up as we help them get to their goal line.
As a buyer, you are excited about the opportunity to purchase a business and confident you have enough money for its purchase. But do you have enough money to keep it "working?" If you plan to grow the business, do you have enough working capital to fund its growth? Growing businesses require more working capital than shrinking businesses as receivables are growing.
Are you a business owner thinking about retiring or changing your career? Or maybe you’re at the other end of the spectrum, thinking about buying a small or medium-sized business. I was recently interviewed on the subject of buying and selling a business by Norman Jack for CFRA Radio’s Experts on Call program.
Buyers usually prefer to purchase the assets of the business including intellectual property, the right to use the name, telephone number, websites and all the tangible assets. If purchasing the assets at market value the buyer may be able to achieve a greater depreciation expense going forward and reduce their taxes in future years.
You’ve done the math. And the message is clear. You won’t have enough money to fund your retirement and maintain the lifestyle you’ve come to know and expect. You’re not alone. Many 60-and-over Canadians are finding they need to keep working to make ends meet, especially if they want to maintain the lifestyle they had when they were working. Some have already retired and find they need more cash.
