After the widespread outsourcing of the 1990s, a new entrepreneurial class emerged in the American marketplace. There are currently more than 25 million small businesses, most of which are run by a single owner/operator. A small business is defined as having fewer than 500 employees, but competing with big box retailers online can be difficult. If your small business has been in operation longer than five years, you are part of the small percentage of new businesses that is able to gain a long-term foothold in your industry.
Small business owners often find themselves competing against large retailers, especially online. Search engine algorithms are designed to help people find local businesses that offer the products or services they are searching for, but customers are much more likely t
You have built your business where you want it to be and you have decided to sell it and move on. You have poured so much of your time and attention into this business and you need to set a fair selling price to sell it for. Where do you come up with that price? What types of things matter when setting this selling price? Do your effort and your time compute into the business valuation report? What about all of the inventory and the supplies that you will be leaving behind to the buyer, do you need to calculate that into the selling price? Figuring out the price to sell a business for can be a difficult task, but it is not only possible, it is also
Small business owners that need to ascertain the value of their business often find themselves sorting through a range of confusing concepts and methods. A confusing process becomes more frustrating without an understanding of the key terms, like business comps or capitalization rate, that are employed in the business valuation field. Here are six of those terms defined to help make the process somewhat smoother.
- Business Comps: Business comps refer to the product of comparison between revenue and expense in the current year to that of the previous year.
- Capitalization Rate: More often called the cap rate, this is the net operating income of a business or property divided by the property value. The property value is what a certified business