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How Hard Would It Be to Purchase a Business?

How Hard Would It Be to Purchase a Business? published on

Where Should You Start?

Start a Business

Before you purchase a business, you have to ask your self the following questions:
How do I find out what a business is worth?
How can the sellers client list benefit you?
Can I get a line of credit to help me with the business?

Lets explore some of these questions, and hopefully get you into your business with a great deal of confidence and a very large profit.  Spiegel & Utrera can help guide you with the purchase and Start Your Business Today.

How do I find out what the business is worth?

So, what is a business worth? That question is only answerable by you. A business should be work a year’s profit. Can you operate that business and make that income? What are your abilities to either sell the yearly estimated profit or perhaps more? You would actually have to do some investigating to find out how the seller has been operating their business. Does the business come with a client list? Does the purchase include the equipment in the business? The equipment is a good asset, but it has to be usable What is it worth today?

How can the sellers client list benefit you?

If the seller has a client list, this can be valuable. The client list will enable you to reach out to each client ans assure them that their level of service will continue and get better.  This client list has many familiar users who can also spread the word about the new owner and help promote your business by word-of-mouth.

How can I get a line of credit toward the business?

Purchasing a business and registering it as yours can potentially open the floor for a business line of credit.  With a healthy client list, business model and hard work it should be easy enough to obtain the line of credit for your new business

ARE YOU READY TO START YOUR BUSINESS?
INCORPORATE TODAY AT WWW.AMERILAWYER.COM
Not Ready? Have More Questions?
If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or ClubAssist@AmeriLawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

What To Consider Before You Purchase A Business

What To Consider Before You Purchase A Business published on

After years of personal training with Brian, he reveals to you that he wants to retire, and sell his personal training business.  A bell goes off in your head.  How hard would it be to purchase a business?  What do you need to know?

You ask yourself the following questions:

  • How do I find out what the business is worth?
  • How can I get a line of credit towards the business?
  • If someone gets hurt, what is my liability to the client?
  • If I take a client to lunch, can I simply eat? Do I have to be discussing training the whole time?

We are going to explore all of the above questions, and hopefully get you into your business with a great deal of confidence and a very large profit.

Purchase a Business

So, what is Brian’s business worth?  That question is only answerable by you.  A business should be worth a year’s worth of profit.  Can you operate that business and make that income?  What are your abilities to either sell the yearly estimated profit or perhaps more?  You would actually have to do some investigating to find out how Brian has been selling his training sessions and operating his business. Does the business come with his client list?  Is he selling his own equipment?  What is it worth today?

Purchase a business
Purchase A Business

Acquiring Business Credit

Buying his business came with equipment and a short list of clients.  Advertisement these days are expensive; or is it?  With technology today, we have access to free advertisement in its rawest form.  Social media is one of our biggest allies when it comes to advertisement.  For the most part it is free.  The client list is a great idea, because you can reach out to each client and let them know what specials you are running.  The equipment is a good asset, but it has to be usable.

What if you wanted to purchase new equipment?

It may be in your best interest to lease the new equipment and purchase your supplies on a credit card so that your business will build its credit.  Once your credit is good, you could take a loan from an asset-based lender and invest more into your business.

Promoting Your Business

Since the business is mobile, you may choose to visit people at their house and continue their fitness goals from there.  There is a way to also attract customers by offering a stationary place once or twice a week.  Perhaps a workout at the park on Monday and Wednesday mornings.  By giving a specific location as to where you will be, you will see more customers arrive to your stationary site.  This also allows for referrals and customer inquiries.

You could also accommodate your customers at a private gym in your own home.  The only question left to ask is what happens if someone gets hurt in my home while training?  Would my homeowner insurance cover it?  Ultimately if you are conducting a business in your home it might be a better idea to just rent out a private room in the house to the business. You should then already have liability insurance on the business, and you can leave your own personal liability out of the loop.  It is also advisable to have your clients sign a liability waiver as well prior to their workouts.

Legitimate Business Expenses

Finally, you and your client are going to a restaurant so that you can teach your client what they can choose when eating out.  Must your entire meal be all about business to qualify for a business expense?  In this case, the meal is about business.  If your client can not figure out what he can eat when taking his wife to the restaurant, it is likely that he will fail on the fitness plan that you have prescribed for him.  You don’t have to talk about diet during the entire meal or lecture him about the greasy fats in the burger, but you have to have a business purpose.  When counting this meal as an expense it is wise to write on the receipt what the meal was for and give it to the person who is doing the accounting for your business.

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ARE YOU READY TO START YOUR BUSINESS?
INCORPORATE TODAY AT WWW.AMERILAWYER.COM
Not Ready? Have More Questions?
If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or ClubAssist@AmeriLawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Building In Financial Forecasts For Your Business Plan

Building In Financial Forecasts For Your Business Plan published on

To attract investors and build a line of credit you need to project business finances

Essentially, you must make educated guesses about how much money will be spent and how much will be taken in. Then you can use these estimates to calculate whether your business will be sufficiently profitable to sustain a bottom line. Usually a business will start off operating lean until you start building a customer base. If your projections show your business losing money initially, then you must consider raising prices or cutting costs while still in the planning stage. This can help you avoid sinking money into a business that cannot be profitable. On the other hand, if your business model shows profitability, then you can start to invest more and build your enterprise.

Business Plan

Understanding projected financial situation through estimates and calculations

Start off with a break-even analysis by estimating income and expenses over the first year. In theory you should be able to turn a profit by the end of the first year. If not, then you must reconsider the business model. After determining the business can turn a profit, then turn to a month-by-month projection of your business’s net profits for the first year. Keep in mind that some businesses will be more or less profitable during certain months due to seasonal turnover. Finally, determine a start-up cost estimate. There are few generic costs that are common to all business types, they include, research expenses, insurance, business license, incorporation costs, permit fees, equipment and supplies, advertising and promotion, borrowing costs, employee costs and technological expenses.  These costs should be included in your business plan to give a true picture of how much money you will need to get off the ground.

 

 

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service,TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Registration Requirements Before Charitable Solicitation

Registration Requirements Before Charitable Solicitation published on

Any non-profit that makes, or intends to make a charitable solicitation must register with the State

Charitable solicitations include statement in which appeals for charitable purpose, the name of the organization is used, or implies that the contribution will be applied to a charitable purpose. The registration requirement is triggered when your organization asks for a donation, not necessarily when the organization receives a donation. After receiving the donation additional requirements present themselves at the federal level. The IRS requires charitable organizations to file an Annual Report (Form 990 or Form 990 EZ). On this report you will have to answer questions about your organization’s fundraising activities and registrations.

Exemptions from Registration Requirements

Some non-profits are exempt from registration because they are already highly regulated by other agencies; for example, non-profit hospitals and education institutions. Religious organizations may be exempt in some cases because states don’t want to interfere with the free exercise of religion. Also, some non-profits may not receive enough donations to qualify for registration. Nevertheless, determining whether your non-profit is exempt can be difficult. If your non-profit receives contributions under $25,000 per year, then it is exempt in New York but not California. Therefore, if you plan on fundraising out of state, you will need to take a close examination of each state’s law.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Funding Your Small Business: Consider Crowdfunding

Funding Your Small Business: Consider Crowdfunding published on

The recession of 2008-2009 made it increasingly difficult to obtain a small business loan. Most lenders want to see an existing financial record that reassures them you will be able to repay the loan. Remember that banks are lenders. They are not investors and they’re not interested in making equity investments in businesses. What is an entrepreneur to do? Most entrepreneurs start their small business with personal savings, credit cards, and personal loans from family and friends.

Crowdfunding

An alternative that is popular with entrepreneurs is Crowdfunding through websites such as Kickstarter and Indiegogo. Crowdfunding essentially utilizes other backers to finance your product or business. To date, Kickstarter startups have raised over $2,500,000,000 and Indiegogo has funded over $800,000,000.

There are several reasons why crowdfunding may be the answer to financing your business. In an economy where e-commerce allows us to easily make online purchases with the click of the mouse, many consumers still crave more personal connections and are opting for small startups. Investors are always eager to be a part of a startup’s success. Additionally, entrepreneurs who can’t qualify for a bank loan or have decided the risks associated with obtaining a bank loan far outweigh the benefits can pursue crowdfunding without worrying about risks.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

The Independent Service Contractor

The Independent Service Contractor published on

Before any services are performed you must have a written contract
The independent contractor agreement should stipulate the rights and obligations of the service provider and recipient of the services. It must also be dated and signed by the appropriate parties. Independent contractors are self-employed persons who promote their services to the public. Generally, they will control when and how their work is done and provide their own equipment and supplies.

Independent Contractor

Misclassification of Workers
Intentionally misclassifying workers as independent contractors will cause stiff penalties. An employment audit can easily shut down even the most well-established business. Therefore, it is imperative to take all necessary steps to establish an independent contractor relationship. This means not only having an independent contractor agreement but also having the independent contractor establish a separate corporation. Having the independent contractor agreement between two corporations will strengthen the relationship and possibly help avoid penalties.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a General Counsel Club member, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Big Business Strategy for Small Businesses

Big Business Strategy for Small Businesses published on

All small business owners aspire to grow their businesses into a big business. Big businesses utilize market segmentation to focus their sales efforts on a target crowd in order to improve profitability. Small businesses can learn immensely from this simple yet effective big business strategy.

business-strategy
Business Strategy

Ask yourself the following: Who are you trying to sell your goods or services to? Will the target customers encourage profitability? Who are you trying to avoid? Focus on your target customers and concentrate your efforts on securing that specific section of the market. The battle between Pepsi and Coca-Cola is a great example of market segmentation. Coca-Cola is extremely popular with the 30-and-over crowd and Pepsi used this knowledge to cater to a younger crowd by airing commercials in which younger celebrities endorse Pepsi products.

While Pepsi is not the soda heavyweight that Coca-Cola is, Pepsi has still managed to build a successful brand as result of refocusing its marketing efforts.

The critical lesson here is that many small business owners are afraid of eliminating part of their potential market, but focusing on your target customers will make room for a clear path to grow.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a General Counsel Club member, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Mergers Of Nonprofit Organizations

Mergers Of Nonprofit Organizations published on

Nonprofit organizations can fully and completely integrate their programs, functions, and membership by merging or consolidating. On occasion, two nonprofit organizations will want to combine their functions to expand their outreach to the individuals or groups they serve. A merger involves one of the organizations dissolving and the other organization taking over the assets and responsibilities while a consolidation involves both organizations dissolving and creating and entirely new nonprofit organization. The decision to merge or consolidate is based on legal, tax, or economic concerns, and usually it is a combination of all these factors.

The law imposes strict fiduciary responsibilities on members of an organization’s governing body to ensure that it is in the best interests of the organization. Directors and officers may be held personally liable if they fail to act prudently and with due diligence. It is also important to remember that when merging organizations are tax-exempt under different classifications, the resulting merged entity will generally need to file a new application for federal tax exemption with the IRS.

Mergers and consolidations of nonprofit organizations are complex processes that require the approval of the boards of directors and membership of each organization, and a plan of merger or consolidation must be presented to each organization and its members. In addition, federal antitrust laws prohibit mergers or consolidations that may substantially lessen competition in any line of commerce – including nonprofit organizations. An organization should have legal counsel review the impact of a proposed merger or consolidation due to the complex issues that may arise.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a General Counsel Club member, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Capital Losses VS. Ordinary Losses

Capital Losses VS. Ordinary Losses published on
capital-gains
Capital Loss Vs. Ordinary Loss

Capital Losses and Ordinary Losses Receive Different Tax Treatment

A capital loss results when you sell a capital asset, such as stocks and bond, for less than your cost. An ordinary loss occurs from the normal operations of a business when expenses exceed income. When capital losses exceed capital gains a net capital occurs. Net capital losses can be deducted up to $3000 from wages, interest, and dividends. If a net capital loss exceeds $3000 then the excess must be carried over to the following year. Individual taxpayers cannot carry back any part of a net capital loss to a prior year. However, corporations do not have a deduction limit and can carry back portions of capital loss to prior years.

Advantages of Ordinary Loss

Ordinary losses are fully deductible in the year loss was incurred and is not subject to a deduction limit. Furthermore, if a loss is taken under Section 1231 then it is fully deductible as an ordinary loss. Section 1231 applies to the sale or exchange of real or depreciable property used in a trade or business and held for over one year. Another benefit under 1231 is that gains are taxed as long-term capital gains at the lower capital gain rates.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a General Counsel Club member, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

Separating Strategy Can Greatly Help Your Business

Separating Strategy Can Greatly Help Your Business published on

Many companies can fall into the practice of not having a separate strategy for their business. Strategy is something that must not have the restrictions of budgeting or planning. A plan should be used to execute a strategy. According to Forbes, a strategy is: “the result of making choices that answer certain fundamental business questions:

business-strategy
Business Strategy
  • What businesses should we be in, and how do we add value to them?
  • Who are our target customers, and what is our value proposition to them?
  • What capabilities make us best at how we add value to our individual businesses and how well they deliver their value propositions?”

Usually a company has many plans with very little strategy. Another step that should be taken is separating strategy from plan formulation and the calendar. A current strategy is a must in business as opportunities and the environment in which your business is operating can always change. Strategy must also be able to be changed to accommodate for the changing business environment.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a General Counsel Club member, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, TrademarksCopyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company