But the question of the majority still remains. Do people really need to sell something first before they can profit from eBay?
The answer is, undeniably, yes! Here some facts about eBay to support the answer:
The nature of eBay is focused on one thing: ONLINE MARKETING.
The concept behind eBay is the fact that it is an auction website. Therefore, to gain profit in a site like eBay is to sell something. It involves monetary transactions and deals, a niche market, and some strategies that can be commonly found in a typical market site.
Hence, a person that has no intentions of selling something on eBay does not actually have any business on eBay.
However, others may contend that buying a quality at the same time affordable product can also be considered as a profit. But nevertheless, taking a closer look at what profit really means, all of these boils down to the fact that whoever earns money benefits more.
Everything is a commodity.
Nowadays, everything seems to be a commodity, from mobile phones to even ideas. With an increasing rate on financial crisis, everybody seems to be finding ways how to earn a living. This goes to show why there are people who sell even the weirdest thing on eBay.
Some may assert that these things may not be true at all. But the question is, what if it is, indeed, true? What if there is really somebody out there who is in dire need of money and that there is nothing that he or she can trade but his or her own virginity?
These things may seem like too nuisance and may seem cheaper than what they had bargain for, but when necessities butts in, it's down to a now or never battle in life.
Indeed, the realities of life are clearly manifested on the kind of transactions that goes on in eBay. In fact, what eBay has on its context is the same as what goes on in real life. Like eBay, life is like an auction, there are those who win and there are those who lose.
With all these facts, the concept of whether a person has to sell something first just to profit from eBay breaks down to two realities in life: money, thus, makes the world go round, and that profit is claimed where there is money.
1) Fatigue: the owner-CEO wears several hats. After many years, some parts of the job remain enjoyable, but others are a burden. Many CEOs would like to stay active in the business, but want to devote energy only to the tasks that are in his or her sweet spot. One solution is to bring in a co-owner/senior manager who will one day assume complete control of the company.
2) Illness: both acute and chronic, progressive illness impact a CEOs motivation and ability.
3) Pressure from spouse: the owners or CEOs spouse may push the owner to move on to the next phase of life. Or a divorce may require liquidation of the owners holdings.
Pressure from heirs: Heirs, whether they intend to assume management of the firm or not, may be eager to enjoy a liquidity event. Heirs may have expressed disinterest in assuming management positions in the firm. Succession planning within the family may not be an option.
Pressure from other owners: often middle market companies have multiple owners. A number of them might like their stake liquidated, before or along with the majority owner.
4) Retirement planning: the owner may be ready to start retirement. Likewise, the non-owner CEO may be ready to retire, and the owner may not relish the job of hiring and training a replacement.
5) Business opportunity: owners may see other more lucrative business opportunities in other fields, and may need to liquidate their holding sot raise funding for the next company. Owners may wants capital to expand: owners may be interested in expanding the business, and are most interested in equity financing than in debt financing.
Through MidMEx, we offer sellers a range of buyers for each of these scenarios. Financial buyers, for example, will insist that senior management stay for a period of one - three years to help facilitate the transition. This is not an empty consulting role, but a meaningful management role. Other buyers will want to buy the company with the expectation that senior management will be largely replaced. Some buyers desire a minority position, others a majority, while others want 100% of the assets.
The critical factor in closing these transactions is for owners to be clear about their actual goals in selling or recapitalizing. Nothing frustrates buyers more completely than a seller who isnt sure what he or she actually wants. As the middle market becomes more efficient, more buyers will be interested in acquiring your company. Besides valuation, the most sensitive deal term will involve the future roles that current management might play. All the more reason to have this issue well thought about before listing the company with us for sale.
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Both Nicky Pilkington & Ben Needles 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.
Ben Needles has sinced written about articles on various topics from Business Credit Cards, Anger Control and Business Credit Cards. About the Author (text)Dr. Mark Heitner is the founder of MidMEx (). Many patients have been owners of mid-sized companies with a bus. Ben Needles's top article generates over 550000 views. to your Favourites.