install vinyl siding lake forest siding replacement crane siding siding types cement board siding .. Chicago Drug testing

Eight Key Steps to Selling Your Business and Cashing In

This year, some 700,000 American businesses will be sold. Most will be small and mid-sized businesses like yours. If you, too, are thinking of selling, consider these practical steps for making the process go smoothly.

Determine a Realistic Price Range

Understand the Tax Consequences

Prepare for a Sale

Seek Potential Buyers

Negotiate Your Deal

Sign a Sales Agreement

Plan for the Closing

File Paperwork With the IRS

Now for the GOOD STUFF!

Getting the Cash Out of your Business Note, known more specifically as seller carryback business notes, are created when the buyer of a business can not or will not pay all cash. Frequently, banks and similar lending institutions are hesitant to loan money to new business owners who have minimal track records and where hard assets make up a small percentage of the total purchase price.

In the case where a buyer cannot obtain a loan, the seller is left with two choices (1) hold off until he/she find a buyer who can pay all cash or (2) carry back a note in order to collect future payments. The first option is often not realistic. In the second case, the seller is hopefully able to at least extract a large down payment to make extra sure that the buyer has some "skin in the game". However, even then the seller is usually in a position that he prefers not to be in - he has no lump sum of money to either invest in other opportunities or to retire. Unlike a real estate note, where is there is a hard asset that is fairly easy to appraise; the business note is relatively risky to hold.

So, what is a business seller to do when he didn't want to be in the lending business to start with and now has a need for immediate cash? What many people don't realize is that the business note can be sold. The former owner can sell all or part of the note to get a lump sum of cash. In this way, both the goals of selling the business and getting the cash out of it are met.

In summary, selling a business note is an excellent way for the former owner of a business to get his cash out of the business. Whether the reason for selling the note is that the seller would have preferred all cash all along, that he now has large debts to pay, or that he has the opportunity to pursue other investments, the sale of a business note is a tool of which you should always be aware.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.

http://www.peacockcapital.com; info@peacockcapital.com

In The News:

Top 10 Rules for Small Business Success

1. TargetYou are not all things to all people. Decide... Read More

A Small Business Consultant Can Help in Many Ways... But One Thing He Can?t Provide

A consultant must remember that the business belongs to the... Read More

Web Based CRM Systems: Get Mobile; Get Results

Everyday more web based companies enter the business scene. The... Read More

How to Start a Paper Shredding Business

Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More

Take a Break - Have a Pity Party

Pity parties are nothing new. In fact, we do it... Read More

Franchises Offer Shortcuts, But Not Control

Q: I will be retiring this year at age 60... Read More

A Day in the Life of a Self Employed Professional

It's Monday morning and Connie the Consultant sits in her... Read More

Corporate Shells

A corporate shell could be liken to a house that... Read More

When to Say NO!

When is it a good thing to say no to... Read More

Small Business Owners - Form a Relationship with Your Bank Manager

It's just like a marriageTo expect a bank manager or... Read More

How to Find Success in the Import Export Business

Take advantage of world politics today and start your own... Read More

Quality Controls for Franchising Companies Sample Outline

Quality control in franchising companies is paramount and all franchising... Read More

Designing a Franchise Training Program

If you intend to franchise your company you will need... Read More

Discover How You Can Start Making Your Small Business Dream Come True

As a teenager I worked for my father's small business.... Read More

Do You Own Your Business Or Does It Own You?

What was your aim when you went into business for... Read More

Keeping Business Alive

Who is responsible for maintaining the business relationship?Nurturing a business... Read More

How To Get Slightly Famous in Print

Early in my career, I wrote an article for a... Read More

Success Tips for Small Business Owners

Running a small business requires many skills. However, to do... Read More

Five Facts and One Motivating Factor Behind a Successful Home Business

All legitimate home business entrepreneurs insist and announce loud and... Read More

But Weve Always Done It This Way

Sacred cows take a long time to die. We get... Read More

Top 10 Mistakes to Avoid When Joining a Professional Association

I'll be the first to admit that I went a... Read More

The Truth About Government Grants for Your Business

Free money! Receive up to $25,000 that never has to... Read More

Environmental Pressure Washing in Pennsylvania

If you run a mobile car wash, mobile fleet washing... Read More

New Habits, Rebounding Economy Help To Sell Giftware and Collectibles

Just a few years ago, when one thought of a... Read More

How To Start A Blind Cleaning Business Quickly And Easily

Starting the blind cleaning business is one of the best... Read More

walkway lights led manufacturers Pete's produce ..
walkway lights led manufacturers Pete's produce ..