Running Your Business
BizFilings provides useful information to help you manage and grow your business.
October is National Crime Prevention month and the perfect time to assess whether you’re taking the right steps to stop the various types of crimes that can harm your business.
You can't predict disasters. But you can put a communications plan in place that helps ensure a smooth disaster recovery.
Your employees can be the weakest link in protecting valuable information about your business and customers. Having a policy, training your employees and reinforcing the message can help keep your business safe from social engineering and phishing scams and prevent your sensitive information from falling into the wrong hands.
Effective inventory management eludes many small business owners who often assume only large competitors can create a well-oiled inventory machine. But with some organization, assessments and periodic adjustments to inventory practices, entrepreneurs can improve cash flow and gain valuable insight into their business.
A total quality management must involve employees, customers and suppliers in order to be successful.
Total Quality Management helps small business owners ensure the quality of their goods or services by involving everyone in the business in the effort to satisfy customers with quality work and product.
'Developing an Exit Strategy' discusses the different ways to and reasons for getting out of your business, and the numerous considerations involved when selling your company or passing it along to family members or key associates.
Although the risks of violating antitrust laws are far smaller for small businesses than for larger businesses (in fact, small businesses are more often the victim than the perpetrator), you still can run afoul of the laws.
'Truisms for Running a Business' recaps lessons learned and practical tips for running and growing your business, based on the mistakes and success stories of other entrepreneurs.
'Family Limited Partnerships 101' describes the ins and outs of choosing this complicated and extremely popular estate planning tool, including tips on legally sheltering the maximum amount of income and passing it on to your heirs.
'Liquidation as an Exit Strategy' discusses liquidation and using liquidation specialists as an alternative to selling a business.
Small business owners can ensure the quality of their goods or services by involving everyone in the business in the effort to satisfy customers. There aren't a lot of people to communicate with, and, in a small business, it is frequently the owner or CEO who is in charge of implementing the TQM program.
When you sell your business you may face a significant tax bill. In fact, if you're not careful, you can wind up with less than half of the purchase price in your pocket, after all taxes are paid! However, with skillful planning it's possible to minimize or defer at least some of these taxes.
In the context of the sale of a business, the "closing" is the point in time at which all necessary documents are signed by all the parties, apportionment of expenses up to the date of closing is done, money and keys are exchanged, and the buyer becomes the new owner of the business.
Once you have a general agreement with the buyer, the buyer usually drafts and signs a non-binding letter of intent. The buyer will then conduct a due diligence investigation. If this goes well, the purchase agreement will be drafted. You will want to make sure every detail is covered and reviewed. Finally, the buyer will obtain the financing, the deal will close and you will be ready for your next great adventure.
Business sales are rarely completed without some type of financing. Therefore, you'll need to know where the buyer is going to get the money to purchase your business. Generally, the money will come from either third-party financing or seller-financing or a combination. It is important to know what you are getting into if you finance any part of the sale.
After-sale involvement can take a number of different forms, the most common of which are an employment contract and a consulting agreement. In addition, many deals require a noncompete agreement that will bar you from starting a similar business nearby for a period of time. In addition to defining your after-sale role, these agreements can serve to compensate you in connection with the sale, with tax advantages to the buyer.
Other than the purchase price itself, the terms relating to payment are the most important items that must be determined. Indeed, payment terms can have a big impact on the price you'll accept for your business, as well as on the price the buyer is able and willing to pay.