The problem with selling any small business ($500,000 and below) is how can a realistic value be put on the business. If a business is valued too high no one will be interested or worse value it too low prospective buyers will think there is something irregular. Also where it is listed for sale is important, EBay is a tremendous medium for certain things however fraud is common place.
Unfortunately there is no fixed system when it comes to valuing any private business, the IRS, Courts of Law and the Inland Revenue all use there own systems. There are also many wonderful mathematical formulas that can be used; however there is no fixed system. To be honest the whole system is complicated with no fixed rule apart from one. What price is a person is happy to sell a business for and what is the buyer happy to pay?
If you are either buying or selling a small business do not be afraid of negotiation, it is a natural process within business. There are many good negotiation techniques; Maitland Kalton of Kaltons Solicitors London is considered an expert in this field.
The following list is a simple aid to assist people who are interested in finding a value of a business, either for the sale or purchase.
1.Does the business have employees either full time or part time? Prospective buyers should be aware that any business in the UK which employs 5 or more people has specific duties in regards to Health & Safety. 2.Is the business purely an internet business? Be warned it is very easy for an online business to appear to be doing very well, when the truth is completely the opposite. This practice unfortunately is leading to the devaluation of genuine online businesses. 3.Does the business have fixed assets or stock? It is much easier to value a garage where real estate and equipment can easily be valued, where as it is less easy to value a business with no fixed assets i.e. Legal specialists, Solicitors, Health workers etc. 4.Does the business have a full audit trail; it is surprising how many small businesses listed for sale do not. 5.What area is the business in; it goes without saying that businesses located closer to major cities are valued higher than businesses in a rural district. 6.What are the future growth prospects for the business? 7.Will the business require insurance/liability policies?
These are just a few factors that have to be considered, as you can see there is much more to take into account than how much revenue is generated by the business. I hope this short article has been of some assistance to any potential buyer or seller of any small business.
About the author - Peter Arkwright recently retired from the military, he is now the Managing Director of www.bizseller4u.com A new portal that allows people to list their Business for Sale
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A self-employed person, generally is a business of one and and therefore does not have to deal with employees. oday, Internet marketing makes it possible for you to start your own home business and be self-employed working for yourself.
In this article we want to talk about one specific way to start your own business on the Internet and that way is affiliate marketing.
There are many advantages to having your own affiliate marketing business, and we're going to look a little bit closer at those in this article.
1. First of all you do not have to inventory any products when you are an affiliate. You're getting paid to sell products for merchants and they handle everything for you. If you choose to do your business on the Internet, many Internet-based products have no inventory anyway because they're all instantly shipped on line.
2. Starting a small business can be expensive. Even working for yourself in certain types of industries could be expensive to start as well. For example, if you're a plumber, you might work for yourself yet, have certain overhead such as licensing, tools, trucks and these sort of things. As an affiliate marketer, you have low, or no overhead at all, except for your computer and Internet access.
3. Owning your own business can be a dream come true, or can be a nightmare. You have no ceiling on your income as an affiliate marketer. Therefore, you can make as much money as you want.
As a self-employed person working outside of the home your income may only be as good as your ability to get your work done. And affiliate marketing business has no limit on income because you can continue to make more and more money regardless of whether you're working or not.
4. A few other things we want to briefly mention are your lack of risk as an affiliate marketer, you can be open for business 24 hours a day, you can have a worldwide business on the Internet, and so on. These are all benefits that you might not have if you are self-employed or running your own small business outside the home.
This is 4 benefits that Internet marketing with an affiliate marketing business of your own can offer you. By being self-employed or running your own small business you may or may not be able to achieve the same things.
Both Pete Arkwright & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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