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Are Complicated Businesses Like Pet Stores Easy to Sell?

Building a successful pet store business can be tough. But once you’ve overcome initial barriers, you’ll probably find that your profit margins are much higher than those of traditional retail businesses. Of course, you may consider selling your business at some point. How easy is it to sell a pet store? Let’s find out. Is It Difficult to Sell a Pet Store? When it comes to purchasing pet stores, competition among buyers is stiff. Why? The high profit margins of established pet stores make them especially desirable. Even when you consider the cost of staffing the store, feeding and housing the animals, and providing pet care, owners are more likely than not to see sizable profits. With pet store businesses, it’s also typically profitable to open multiple locations. Once you have a solid business model and a formula for setting up and running a pet store, it’s easy enough to replicate as long as you have the initial capital. Handing off an established pet store to a qualified pur...
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How to Build a Sellable Construction Business

Building a construction business takes focus, dedication, and hard work. When you get to the point where you want to step back from running a successful business, you might start thinking about selling it. Of course, if you sell, you want to get the best price possible. To do that, you should make your business as desirable to a buyer as possible. Here are some tips for making your construction business sellable. Have a Solid Contractor Network Many construction business buyers are looking for turnkey purchases. They will expect to be able to take over operations without interruptions. And if they do, they’ll want contractors who do solid work. If your company has a mix of employees and independent contractors, ensure you have great relationships with reliable contractors before you sell. Contractors may work for multiple companies at once, so if they are dissatisfied with your company, it’s easy for them to prioritize other businesses, making it difficult for your business to fun...
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What Are the Best Online Businesses That Generate Cash Flow?

Running a business online certainly sounds appealing. After all, you can work in your pajamas and anywhere in the world. Setting up an online business takes a good bit of work, but once your business is established, it can be a great way to generate income. And if you’re thinking about selling your business after a few years, it can be a great way to turn a profit. Here are a few online businesses that are ideal for generating cash flow. E-Commerce Businesses E-commerce businesses involve buying and selling online. Amazon is a great example: it obtains or manufactures some of its own items and sells them. It also allows other sellers to use the platform and can have the advantage of a solid customer base ready to buy. If you have a product that people want to buy and you have a solid ad budget, you can get your business in front of customers. Depending on the volume of goods you sell, e-commerce businesses can involve more expenses than other online businesses. For instance, you m...
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When Selling a Family Business, What Are the Considerations and What Advanced Planning Is Needed?

Selling your business is a major life decision, but if you do it carefully, you can bring in a significant amount of income while taking a good bit of responsibility off your shoulders. To ensure the best possible deal for yourself and your family, it’s essential to take your time when planning the sale. Here are a few important considerations to keep in mind: Operational Holes If you have a small family business, its operations may primarily depend on the owner and a few key employees. In some cases, you may offer to consult with the new owners a few times after the sale to smooth over any operational concerns. Understandably, though, not everyone will want to do that, and if you won’t be available post-sale, you must do your best to create agreements with essential employees before selling your business. If these employees stay on for a set amount of time following the sale, the business is more likely to continue forward with fewer hiccups. You also may want to talk to vendors ...
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How Do You Find the Right Business Contacts to Sell a Company?

Selling your business can be exciting, but it can be daunting as well. Long before you get to developing a deal structure, you need to take the first key step: finding and contacting potential buyers. One of the best ways to do this is to tap into your network of business contacts (or find new contacts to add to your network). Here are a few tips to help you get started. Think About What Type of Buyer Would Be Interested Before you start reaching out to your contacts, take some time to consider what type of buyer might want to buy your business. Does your business appeal to potential owner-operators? Or is it a better fit for an investor? In many cases, the answer to that question depends on what type of business you’re running. Landscaping, auto repair, and pressure-washing businesses tend to be run by owner-operators — owners who are involved with a business’s daily operations. Someone interested in purchasing as an owner-operator will likely have business experience already. F...
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Why Would a Business Sell for Less Than It Makes Per Year (Annual Sales Revenue)?

If you’re a business owner, you might dream of the day when you’ll be able to step back from day-to-day operations and offer your business for sale. Selling your business is much more than a simple transaction, though, as each step requires careful thought. One of the more complex parts of selling a business is determining how much it’s worth to potential buyers. Business valuation is typically done by a qualified appraiser/business broker, who, after weighing a variety of factors, may determine that your asking price should actually be less than what your business makes in a given year. Here are a few possible reasons why that may be: It Simply Isn’t Profitable If all you see is a business’s substantial revenue, it’s easy to assume it rakes in a hefty profit, but don’t be fooled: A business’s Revenue or Gross Sales is not a reliable indicator of its total value. When you’re selling your business, it’s important to accurately determine its fair market value. The best way to do thi...
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Is Being an Owner-Operator Worth It?

The owner-operator business model makes sense for entrepreneurs who value hands-on experience. But the model is waning in popularity — and effectiveness — especially now that it’s a bit easier to run a business remotely. That also means the owner-operator model may not improve your value when selling your business. Here’s how the model is changing and what it means for your business. What Is an Owner-Operator Business? An owner-operator business model is one in which the business owner is directly involved in the day-to-day affairs of the business. Common examples include: Pool routes Pressure cleaning Maintenance/repair shops Landscaping businesses The model is on the decline in the U.S., with just over half a million business owners classifying themselves as “owner-operators.” That’s a much smaller number compared to years past. During a time of entrepreneurs buying and selling businesses as investments, an owner operated business may not be appealing. Owner-run businesse...
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