Buy a business or create from scratch
Hi, my name is Maya, just sharing my experience
YOUR BUSINESS AT DISCOUNTS ON THE INTERNET
Creating a store selling discount cards for a discount of more than 50% of goods or services. The discount is provided by companies by prior agreement with the store owner or independently, after registering on the store's website.
Discounts are provided by companies operating in public catering, beauty salons, public services, educational and medical services, vehicles, food and non-food products, etc.
According to statistics, the most active part of the population using the services of such sites is 20-40 years old.
In order to use the service, the buyer will need to go to the site, register (or do it without registration), purchase and pay for the required number of coupons. The purchased coupons are automatically sent to the buyer by mail after payment, in the case of a registered user, they are also displayed in the personal account.
In order for the seller (owner of the company) to create a discount on his own, he needs to register on the site as a seller, fill out a questionnaire, and create a promotion by specifying the necessary options in the user's account.
You can activate the promotion and set the coupon value from the administrative panel by the store owner.
The discount site concludes agreements with suppliers for the implementation of their services in bulk with a discount of up to 70-80%. The earnings of the discount site are 15-20% of the sale amount or 100% (depending on the agreement) of discount coupons.
Purchase the DiscountsShop script
2500 rubles + 7% in favor of RoboKassa
Unique store design
The question of how to sell a ready-made business correctly is of interest to both the owners of large corporations and the owners of little-known startups. This decision is made for various reasons. But regardless of the circumstances, the selling algorithm is identical and must be followed.
How to properly sell a ready-made business?
Commercial activity is not only a systematic process, but also a subject of purchase and sale. And for the sale of a business to be successful, you need to take into account many nuances:
- Prospects of the deal. value business profitability. If your business is on the brink of default, selling won't save you. In the latter case, the sale of assets in parts will bring more benefits.
- The state of the economy. Fraternize with an expert who will be able to assess the benefits of selling a business in a specific period of time.
- List required documentation. this information should be checked with a lawyer and a commercial auditor. Preparation of the entire package of documents takes a lot of time, so do not hesitate with the fees.
- Business value. If the project costs more than $ 100,000 according to rough estimates, it makes sense to pay for the services of a professional appraiser. Such a specialist takes from 3% to 13% of the transaction.
Reasons for selling a running business
Before learning how to sell a business, determine the reason for the event. Most often, business owners make a decision to sell for personal reasons, including the birth of a child, retirement age and simply an urgent need for a large amount of money.
An equally common reason is project reorientation. For example, the owner of the company decided to radically change the commercial direction, but he could not master two businesses at once. Separately, it is worth mentioning the move, which also forces many businessmen to part with domestic projects.
Increase in the value of the business being sold
No need to rush and sell your project at a bargain price. A couple of marketing tricks will turn a decadent business into a tidbit.
As an example, let's take a ready-made pharmacy in the capital, owned by I. Karpenko. The pharmacy business in Moscow is a highly competitive industry. Before the sale, the owner turned to an independent commission of experts who assessed the pharmacy not only in terms of profitability and service level, but also in terms of investment attractiveness. According to appraisers, the business had a modest turnover and needed promotion. The far-sighted owner ran several advertising campaigns before the sale, after which the profitability and, consequently, the selling value of the pharmacy doubled.
The value of a business can be increased by showing the buyer "white" accounting and "transparent" revenue. Also, the attractiveness of a commercial project from the point of view of the investor increases with the presence of a long-term lease agreement and licenses to conduct the selected activity. In general, good reputation of the company and the presence of a registered trade mark give a solid advantage.
Another example showing the smart actions of businessmen. The owner of a private beauty salon on the outskirts of the city wanted to sell his business due to a change in commercial direction. AND. . Kirillova decided to change the sphere of Beauty services to wholesale retail of branded sportswear. The owner independently studied the advertisements of competitors who also wanted to sell their commercial projects. Based on A. Kirillova determined the price of her business and published an ad. After several months, no real buyer was found. The owner of the beauty salon had to contact an audit company.
Experts have identified the real value of the business and gave the client a number of recommendations to increase the investment attractiveness of the project. Among other things, there were very simple tips - extending the lease, refurbishing the reception desk and cutting down on energy costs. Putting this into practice, the owner of the salon managed to sell the business in just a few weeks.
Advantages and disadvantages of a ready-made business
The main advantage of a ready-made business is that you don't need to come up with an original idea. It already exists and works, and its potential can be assessed even before the deal is made. But before buying, be sure to find out the reason for the sale. It's good if the previous owner has earned enough money and now decided to move to another country or change the field of activity. But a stable business is rarely sold. More often than not, the owner wants to get rid of the company because it is not showing the best financial results.
Step Assess the advantages of the ready-made business
The operating company has the necessary permits and certificates, established contacts, suppliers, contractors, employees, analytical information on competitors. A stable company can generate income from the first month.
The existing client base guarantees income from the first months. But it is important to assess its quality: contracts at the time of the sale of the business, the average check in the company, the number of clients that, on average, passes through the company per month and year.
Step Identify possible disadvantages of a ready-made business
A ready-made business will not meet the expectations of the new owner if he was not provided with full information. In particular, the seller during the transaction may not have reported:
- internal conflicts between staff and management;
- a small customer base and a low degree of loyalty (product not for sale, service not in demand);
- poor financial condition of the company (debts, unpaid taxes, high rents);
- bad reputation;
- the need to modernize equipment, renovate premises, expand staff.
In order to sell a business at a better price, the seller may deliberately distort information about potential contracts and clients. Therefore, an independent assessment of the state of the company should be carried out before the transaction.
Business appraisal is a set of actions that a professional appraiser performs in order to present a reasonable opinion on the value of the appraisal object at a certain date in monetary units. In conclusion, the analyzed data on the financial, organizational, technological activities of the enterprise, the dynamics of its development and position in the competitive environment are included.
1. Find an appraisal company. Using a search on the Internet, select a company that evaluates the required type of business:
- according to its size (small and medium business),
- according to the sphere and specifics of the company (trade, transport, service, services),
- and for the purposes you need (purchase and sale of a company, shares in a company).
Buy a ready-made business or create a new one from scratch? This question necessarily arises for a person who has decided to become an entrepreneur, or wants to acquire new assets. But whatever the reasons for buying a business, the dilemma remains relevant. In fact, there is probably no single answer to the question of buying an existing business or starting a new business on your own simply does not exist. Too many factors and circumstances influence decision making. But let's try to consider the pros and cons of each option.
Advantages and disadvantages of buying a ready-made or operating business
Before evaluating options for buying a ready-made business, let's first define a little in the terminology. The fact is that in the field of buying and selling companies, two commonly used terms have historically developed: a ready-made business and an operating business. Very often people confuse these concepts and consider them synonymous. However, in a professional environment in the asset market, there is a certain difference between them.
Typically, these types of businesses are identified for purchase:
- Ready business. Most often, this term refers to the acquisition of a company under a franchise scheme. In other words, the purchase of a ready-made business is the acquisition of a franchise for some type of commercial activity. In this case, the buyer receives a completely finished business model. He only has to follow the developed procedures and advice of the franchisor (brand owner), as well as act within the rules established by him. T. Simplistically, the business buyer owns all the tangible assets that he acquires for the operation of the company, but there are no rights to the brand and intellectual (intangible) assets transferred to him under the franchise agreement.
However, there are cases when enterprises for sale are also called "ready-made business", which have fully debugged business processes and practically do not require operational intervention from the owner. But at the same time, such companies are not a franchise, but were created from scratch as independent and independent enterprises. It is understood that an entrepreneur or investor who buys such an asset will not need to deal with organizational and operational issues, i.e. he gets a ready and working business.
In addition, in practice there are several other states of business that can be bought. For example, sometimes a business is sold that has been temporarily suspended but can be reopened after the purchase. Or investment projects that are actually ready to launch, but require funding, etc. We will not dwell on them now, but consider only the most common cases - the purchase of a ready-made or operating business.
You can buy a business just like any other product or service. Of course, the degree of risk, cost and complexity of the procedure are very different when buying a business, for example, from purchasing household appliances. But the principle itself is essentially the same. Today, you can become the owner of almost any legal company if you have the desire and the necessary financial capabilities. What attracts entrepreneurs and investors to buy a ready-made business?
Quick income and profit. Perhaps this is the most basic and important factor that speaks in favor of acquiring an already operating business. Of course, first of all, we are talking about those situations when not just a company is bought as a goal, but an already profitable business. There is only one question - where to find and how to buy a profitable business? Unlike a company that is created from scratch and usually requires a long time for its promotion and profitability, the acquisition of an already operating business allows you to immediately receive income. The asset market today has a fairly large number of different franchises, both a ready-made business and offers of various independent companies as an operating business. And the buyer, in fact, has only a task - to find a really profitable purchase option.
Saving time and effort. Any entrepreneur who himself was engaged in the creation or promotion of a company from scratch knows very well how much effort, time, nerves and health it takes to open and develop his own business. This is in words and in smart books, everything is simple and easy. In practice, even the most talented and competent business owners face a huge number of difficulties and obstacles. Therefore, when you buy an already working ready-made business, you actually acquire not only the company, but in fact you also buy a part of your life that you do not have to spend on debugging and setting up the business, as it has already been done for you.
Debugged and working business processes. Buying an operating business is like getting a ready-made result right away, and not experimenting with a do-it-yourself kit. By purchasing an already successful company or a reliable and profitable franchise, you get not just a commercial asset, but a working business. And these, as they say in Odessa, are two big differences. If a company is able to generate not just gross income, but net profit, then such a business has already established operational activities and all the necessary elements of an effective enterprise are present. Of course, a lot depends on the stage at which the business is bought.