Steps to Acquire a Conveyance or Buying a Business
Acquiring a transfer is to buy a business or company that is currently running.
Alternative is usually a safe and easy business, but on the other hand, expensive.
Among the advantages are the ability to skip some stages in the creation of a business, to save time and energy to have an established customer base, and to have a name or trademark and recognized.
The disadvantages include the high cost involved, the possibility that business may have hidden financial or legal problems or the possibility that the previous owner started a competition.
Generally, a transfer involving small businesses that are constituted as an individual, so you do not need to make the change of ownership on the public record, but merely the transfer can be affected through the signing of a contract between the private business owner and who is going to acquire.
Let’s look at what are the steps necessary to acquire leasehold:
1. Decide the type of business that we acquire
We must first determine what type of business or company you want to buy.
For this we rely on our experience, our skills, knowledge or our tastes. But we must also consider if it is a profitable business, taking into account the current situation and trends that are taking place in the market.
2. Find the business
Secondly we pick the business or businesses of the type we want, which are for sale.
For this we can search the newspaper classifieds, in the Internet, ask friends or acquaintances, to seek counseling or professional assistance of a specialist agent in the subject, or simply contact us with any business, and announce our intention to purchase.
3. Determine how the business really worth
Once you have found the business potential to buy, we see its price, and evaluated by our own means if business really worth what the owner asks.
To find the true value of the business, we investigate the average market price of similar businesses, or seek advice from a specialist.
Another way to determine how much a business is to divide the amount of net income we expect to obtain, between the rates of return we expect for our investment.
4. Investigate the business
Before deciding to acquire the transfer, it must investigate everything related to business or business to buy, we should investigate the legal, and accounting and finance.
For example, we analyze the financial statements of the business (which the seller is obliged to show us); we investigate whether it is current with tax payments, if you have a license to operate, etc…
To be safer with this investigation, it is advisable to hire the services of an audit.
Another important aspect in the event that we are not buying ownership of the premises where the business works (but only the business), is the need to analyze if the contract will be signed lease with the owner of real property.
5. Negotiate the price and financing
If we consider that the seller’s asking price (business owner) is very high, we can talk to him, and attempting to negotiate the price.
To do this, we should not hesitate to show the information we have gathered, our projection of profits, the rate of return that we expect to obtain, and the amount we have concluded that the business is worth.
We must also negotiate funding, usually the seller will provide some funding, allowing us to pay a portion of the cash transfer, and pay the rest over a period of time, but may in some cases, request a guarantee of this.
We talk with the seller to negotiate agreements that are beneficial both for him and for us.
6. Signing of contract
Once we have reached some agreement on price and financing, and agreed the transfer, it’s time to sign the contract. You do not need to have the physical presence of a notary public, but if we’re safer, we can take the contract to one, to legalize the signatures.
An important aspect in the contract for deed, is that it should be noted in detail all equipment, furnishings, accessories and other physical elements that belonged to the former owner of the business, and now become our property.
7. Update business information
And finally, once acquired the transfer, we must update all the information necessary to account for the completion of the transfer.
We, for example, report the transfer to the official duty to update our data as a taxpayer, and communicate with the municipality to ask them to change the name of the licensee’s operation.
Business Plan in 9 Steps
What should you include a business plan that captures your attention? After talking with several investors, all of them said the same thing: If he catches me in less than three minutes, the plan is good. That is, all investors give you an attention span of a few seconds for them to sell your idea. To do this, do your business plan or business plan in 9 easy steps. Do you think that is not enough? Entrepreneur magazine offers longer alternative. But if you do it longer is because you want….
A good business plan must have:
1. Give it a name: the name of your business idea should be attractive. Do not leave anything to discard. Take into account your type of business. Is it a private company public, a project? Is small, large, medium?.
2. Geographical situation: where is your business idea? Will you carry it out in your city or another?. Will an international project? If so, describe all the places where will your business.
3. Project Description: Try to describe your project in a concise manner. Put in this paragraph all products or services that claim to have your company and your main view (where you want to come). Even if your idea is very simple or very complicated, try to draw it so that it is more understandable.
4. Description of the target: Set if individuals or not, if a local, national or international, housewives, business (large, medium or small), public sector, etc… …
5. Highlight the added value of your business: This step is very important. Here you must show why your company is better than the others. Think about this: What gives your business that will make others earn (money, time, comfort, quality …)? If I do win something, and that way, you’re the only thing I can offer, I’ll buy.
6. Vision: Describe where you want to go. Many times the end is what justifies the means.
7. Describe the team: A business must always be initiated by someone. Describes who is leading the project, even if you’re the owner. For example: Who / is promoting the project is / are (and describe the qualities of the person or team, for example, are an experienced team of information technology and management teams.) Mario Diaz, a graduate in Economics from the University Juan Carlos I, with more than five years of experience in…….. Sara Bosch, has a degree in Computer Science and MBA from ESADE, with over 7 years experience in computer programming business.
8. What do you need and what you have? It is the first thing they’ll ask. Many entrepreneurs go with the idea of asking, but rarely mention him by fear. Concisely describes what you need your project to be initiated. And do not talk about money, but concrete things such as: For the opening of the business need two seats, one in Madrid and one in Buenos Aires. To function properly, we created an intranet and CRM crossing our services and customer base. Investors know how to calculate the size of the project, even without figures.
9. Investment required and Recovery: Describes the initial investment by breaking down the most important: local, empowerment, equipment (or computer equipment), maintenance and development of equipment, staff costs, other.
How to Identify a Business Opportunity
A business opportunity exists when the supply of a product or service meets the need or desire for someone willing to pay for it. That’s the basic premise, neither more nor less. You might even create the product and then work on the need or convince people to have that need.
There are many things we have now emerged, for example all the social networks were created first and then imposed on us the need for them.
But along with the basic premise an entrepreneur must be convinced of the existence of a business opportunity.
To achieve that belief is important to characterize the opportunity through a dip in the market and the characteristics of the type of business that aims to develop.
Many business opportunities remain uncovered by chance other instead are the product of a thorough study of the characteristics of the society where you live.
For example, in Mexico City, the country’s best traditional food eaten on the streets.
It is impressive to see how many family micro entrepreneurs meet the needs of thousands of customers in the luxury offices on street with small businesses that compete strongly with the restaurants in the city.
These micro entrepreneurs simply saw a business opportunity and not squandered.
As an example let’s say teaching you have the idea of putting an ice cream shop in your city, summers are seen increasingly intense account of climate change.
But you do not feel that staff should be sufficient to characterize the opportunity, the first thing to do is to identify sites in the city where are located the main ice cream.
To get that information must come from different sources and may find that in neighborhood of high population density and average purchasing power, there is no ice cream.
The next step is to lift the neighborhood for information which must remain in the area as long as possible seeing as the same place everyday, chatting with neighbors and seeking information about the neighborhood association and as its influence in the affairs the neighborhood.
The neighborhood association may make things easier or give you real headaches. Try to cope well with these people.
Once you’ve done your homework can really determine whether to place an ice cream shop in the area can be a good business opportunity or not.
As you can see is not as simple as feeling like there to study the feasibility of the venture. This will prevent many future headaches and can give you great satisfaction.
