What Should Be in Your Partnership Agreement

Partnership agreements are essential business documents, the importance of which is difficult to overstate. No matter whether your business partner is essentially a stranger or a lifelong friend, it is prudent to have a written partnership agreement.

A good partnership agreement clearly outlines all rights and responsibilities and serves as an essential tool for dealing with fights, disagreements and unforeseen problems. With the right documentation, you can identify and eliminate a wide range of potential headaches and problems before your business even starts.

Determining the Share of Profits, Regular Draw, Contributing Cash and More

Partnership agreements will also outline the share of profits that each partner takes. Other important issues that a partnership agreement should address is determining whether or not each partner gets a regular draw. Invest considerable time to the part of the partnership agreement that outlines how money is to be distributed, as this is an area where a lot of conflict occurs.

The issue of who is contributing cash and services in order to get the business operational should also be addressed in the partnership agreement. Likewise, the percentage that each partner receives should be clearly indicated.

Partnership Agreements Outline and Prevent Potential Problem Areas

Another area of frequent problems is in the realm of who makes business decisions. Here are just a few of the types of questions that must be answered:

  • Are business decisions made by a unanimous vote or a majority vote?
  • What must take place in order to consider new partners?
  • Who will be handling managerial work?
  • How will the business continue and what changes will occur in the event of a death?
  • At what stage would you have to go to court if a conflict cannot be resolved within the framework of your partnership agreement?

You might just want to get your business running as soon as possible, but not addressing these issues in the beginning could spell disaster down the road.

The Uniform Partnership Act

One option to consider, which is offered in all states except Louisiana, is the Uniform Partnership Act or UPA. The UPA covers all the legal regulations that specifically apply to partnerships.

Reduce Conflict Via a Partnership Agreement

Forming a partnership can be great way to launch a new business, but it is also important to keep in mind that no matter how exciting the process may be it is still a business. New businesses face an array of challenges, and the last thing any new business needs is internal disruption. Mapping out via a partnership agreement the duties and expectations of all partners is an easy and logical way to reduce internal conflict within the business so that you can stay focused on building the business and making money!

Copyright: Business Brokerage Press, Inc.

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Can I Buy a Business With No Collateral

At first glance the idea of buying a business with no collateral may seem impossible, but in reality it can be done. Let’s examine your options. When it comes to achieving this goal, your greatest assets are an open mind and a commitment to hanging in there despite the odds.

The Small Business Association’s 7 (a) Program is Your Friend

One possible avenue for buying a business with zero collateral is to opt for the SBA’s 7 (a) program, which works to incentivize the bank to make a loan to a prospective buyer. Under this program, the SBA guarantees 75%. The buyer still has to put in 25%; however, this money doesn’t necessarily have to be his or her money. This is where things really get interesting. The cash that the buyer uses can come from investors or even be a gift from parents in the case of young buyers. These possibilities all fall within the SBA’s guidelines.

Look into Seller Financing, You Might Be Surprised

There is a second way to buy a business with no collateral, and that comes in the form of finding a seller who is willing to finance. Again, this might seem counter intuitive at first glance. But the facts are that a large percentage of sellers do agree to offer some level of financing. So in other words, seller financing is not unheard of and stands as a viable way for a prospective buyer to buy without collateral.

Combining Seller Financing and the SBA’s 7 (a) Program

Combining the SBA’s 7 (a) program with seller financing can prove to be a powerful combination. It is important to note, however, that if you do use the SBA’s 7 (a) program the seller cannot receive his or her repayment for two years.

Persistence Pays

Ultimately, you will likely need to be rather persistent when trying to find a bank. Rejection is likely. But if you are persistent, it is possible to make the SBA’s 7 (a) program work for you.

One key way to keep yourself motivated is to constantly remember that jumping through some hurdles is all part of the process since you’re trying to circumvent the traditional route of using collateral. But working relentlessly may be worth it because if you are successful, you have acquired a tangible asset without any collateral of your own. That is no small accomplishment.

Don’t be afraid to ask for advice from S.C.O.R.E., the Small Business Administration (SBA), or an experienced business broker. While it might sound very unlikely that you’ll be able to buy a business without collateral, plenty of people have successfully done so.

Copyright: Business Brokerage Press, Inc.

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Should You Become a Business Owner?

While being a business owner may in the end not be for everyone, there is no denying the great rewards that come to business owners. So should you buy a business of your own? Let’s take a moment and outline the diverse benefits of owning a business and help you decide whether or not this path is right for you.

Do You Want More Control?

A key reason that so many business savvy people opt for owning a business is that it offers a high level of control. In particular, business owners are in control of their own destiny. If you have ever wished that you had more control over your life and decisions, then owning a business or franchise may be for you.

Owning a business allows you to chart your own course. You can hire employees to reduce your workload once the business is successful and, in the process, free up time to spend doing whatever you like. This is something that you can never hope to achieve working for someone else; after all, you can’t outsource a job.

Keep in mind that when you own a business or franchise, you never have to worry about being downsized or having your job outsourced. You also don’t have to worry about asking for a raise. No doubt business owners do have to contend with market forces and unexpected turns. But even considering those factors, business owners clearly enjoy a greater level of control over their destiny.

Are You Willing to Forgo Benefits?

As an employee, you’ll usually be able to count on a regular income and even allowances for sick days and vacation days. However, business owners lose money if they are sick or take a vacation. Plus, they won’t necessary have the steady salary that employees receive as they could see their income vary from one month to the next.

Do You Want to Grow Your Income?

Business owners have the potential to grow their income and take a range of proactive steps that lead to income growth. As an employee, your fate is far different. Employees usually exercise either minimal or no control over the course of a business and have no say in key decisions that impact its growth and stability. Being a business owner by contrast allows you to seize that control.

The amount of income made by business owners varies widely depending on everything from the industry to the region. But statistics show that the longer you own your business the more you’ll make. In fact, those who have owned their businesses for greater than 10 years tend to earn upwards of 6 figures per year.

One of the best ways to determine whether or not being a business owner is right for you is to work with a business broker. A broker understands everything that goes into owning a business and can help you determine whether or not you have the mindset to set out on the path towards business ownership.

Copyright: Business Brokerage Press, Inc.

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Three Overlooked Areas to Investigate Before Buying

Before you jump in and buy any business, you’ll want to do your due diligence. Buying a business is no time to make assumptions or simply wing it. The only prudent course is to carefully investigate any business before buying, as the consequences of not doing so can in fact be rather dire. Let’s take a quick look at the three top overlooked areas to investigate before signing on the dotted line and buying a business.

1. Retirement Plans

Many buyers forget all about retirement plans when investigating a business prior to purchase. However, a failure to examine what regulations have been put into place could spell out disaster. For this reason, you’ll want to make certain that the business’s qualified and non-qualified retirement plans are up to date with the Department of Labor. There can be many surprises when you buy a business, but this is one you want to avoid.

2. 1099’s and W-2’s

Just as many prospective buyers fail to investigate the retirement plan of a business, the same is often true concerning 1099’s and W-2’s. In short, you’ll want to be sure that if 1099’s have been given out instead of W-2’s that it has been always done within existing IRS parameters. There is no reason to buy a business only to discover a headache with the IRS.

And speaking of employees, does the business you are interested in buying have employee handbooks? If so, you’ll want to make sure you review it carefully.

3. All Legal Documents

The simple fact is that you never want the business you are interested in buying to have its corporate veil pierced once you take over. You should carefully review all trademarks, copyrights and other areas of intellectual property to be sure that everything is completely in order. You’ll want to obtain copies of all consulting agreements, documents involving inventions as well as intellectual property assignments.

Everything should be protected and on legally sound footing. If you see any problems in this category you should run for the hills and find another business to buy.

Protect Yourself from a Potential Lifetime of Regret

Evaluating overlooked areas is essential in protecting your investment. For most people, the purchase of a business is the largest of his or her lifetime. It leaves little room for error.

Not only is it vital to investigate the major areas, but it is also essential to explore the smaller details. However, the truth of the matter is that when you’re buying a business there are no “small details.” No one realizes this fact more so than business brokers. Business brokers are experts in what it takes to buy and sell businesses. Working with a business broker is a significant move in the right direction. The time you invest in properly exploring and evaluating a business is time well spent and may literally save you from a lifetime of regret.

Copyright: Business Brokerage Press, Inc.

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Ready to Buy a Business?

If you are considering buying a business, you’ve probably already started researching the best ways to find businesses for sale. Going through the process on your own, especially if this is your first time buying, can be a stressful ordeal as there are many steps to go through. Working with a business broker can make the buying process a breeze.

Venture Opportunities can assist you with finding the right business based on your qualifications and the type of business you are interested in running. A broker database can sort out through the current businesses available in Forth Worth to find the best matches for you without having to pour through every sale individually.

Having a team of professionals helping you understand the qualifications of the business you are considering buying will help ensure that you don’t hit any roadblocks in the process and even make sure it’s the right choice of business for you. The team at Venture Opportunities will help sort out your finances and confirm the you have any necessary licensing needed to run the business.

Once your options have been narrowed down, you can begin meeting with sellers and learning more about the business. The next steps will be the negotiations and buying offer. Once an offer to purchase has been accepted, you begin the closing process. Even once you have confirmed the sale, there is still plenty to do including contracts and final documents. Venture Opportunities will be there to assist you every step of the way.

If you are interested in purchasing a business in the Fort Worth and Dallas, TX area, contact our team today at 972-783-1662

3 Common New Franchise Mistakes

Owning a franchise can be a great investment that will allow you to help a company you choose succeed. Whether you recently bought a franchise or you’re considering it as an option, think before you make these three new franchise mistakes.

Forgetting to Research the Franchise

It seems silly, but some people get so caught up in purchasing a franchise that they forget to do their research. There may be problems lurking beneath the surface of an otherwise wonderful franchise. Take the time to look up the company, read reviews from other people who own its franchises and visit a few different locations. You may come away with valuable knowledge that will either send you in a different direction or give you valuable insight on your dealings with the company in the future.

Thinking You’ll Be Your Own Boss

When you own a franchise, as opposed to the business of your own, you are not your own boss. Sure, you’re the boss of your employees, but you report to a larger company that expects you to do your job. If you don’t work well with others, don’t set out to own a franchise thinking you can do whatever you want. You’ll be disappointed in the end if you’re only doing it for a little freedom.

Not Consulting an Expert

Before you sign a contract, make sure a business lawyer or expert looks over it. You may be ready to get started, but you want to know what you’re signing up for. Our company has seasoned entrepreneurs who can help answer any questions you may have about owning a franchise. Call us at 972-783-1662 to avoid new franchise mistakes!

Biggest Mistakes Made When Buying A Business

Buying a business can be an exciting, chaotic, and stressful experience. And with everything that is happening simultaneously during this time, thee can be come poor decisions that are made. Here are some of the worst mistakes that are made when purchasing a business.

  • Buying it alone: Even the most seasoned individuals in business ad marketing can have a difficult time thinking of everything for the company. Going into the deal with at least one other person provides you with opportunity to get advice when you’re unable to decide on something and can also point out things  that you may have overlooked or not considered. Having assistance gives you the chance to think about critical business decisions.
  • Ignoring emotion: Yes, paying attention to the facts and number when purchasing a business is very important. But there are a number of other things that should not be swept under the rug. Pay attention to how the employees get along with each other because it’s important to have a good working environment. You should enjoy your work space.
  • Misunderstanding the advantages: In the wold of business, you can’t just do everything everyone else is doing. You have to be able to step it up and do things that your competition is not doing to set yourself apart. Without knowing your company’s competitive advantage, picture of the company’s potential or how to even make use of it. It’s critical to know the direction you want to go before signing on that dotted line.
  • Signing your name: A major legal mistake that a buyer of a company can make is signing their own name on documents that’s tied to the business. This is something that should be avoided because you now have assumed personal liability for that company. You want to have your assets completely protected if that company was to go belly up.

Don’t go into such a venture with unanswered questions and concerns. Call Venture Opportunities at 972-783-1662 today. We’re here to provide you with all the advice and assistance that you need.

Starting the Process of Buying a Business

Exploring the opportunity to buy a business can be convoluted and confusing. Knowing and fully understanding the process is necessary to successfully purchase a business, but to purchase a business that you will excel in, you must have a perfect knowledge of the ins and outs of the buying process. This knowledge is acquired over decades of experience and learning: knowledge that the team at Venture Opportunities is well equipped with.

Buying a business starts with the qualifying process. This starts with understanding how to complete the buying of a business, being sure your financial state is in order, licensing, and more. A professional team is better positioned to complete these checks and will able to do so in a timely manner to keep your business venture moving along!

Next is searching for a broker database to help decipher your business interests, your qualifications, and additional elements to help narrow down your plan of action. Deal making is the next step and often includes a business tour, negotiations, and an offer to purchase. Finally, closing on the business and arranging the finances means the end of the buying process is near.

Buying in DFW

The long winded and complicated process of purchasing a business can be overwhelming, but the team at Venture Opportunities can guide you with a clear cut path to your end goal. Call us today at 972-783-1662! 

Buying a Franchise: Work With a Franchise Consultant

If you are ready to explore the opportunity of buying a franchise, working with a franchise consultant can be one of the best decisions you make in this process. A franchise consultant will help you narrow down franchise options that are compatible with your skills and your budget, and can help you navigate the intricate details of the buying process. When working with the franchise consultants at Venture Opportunities, you can be sure you are in good hands to make a successful franchise purchase.

Why Use a Franchise Consultant?

A franchise consultant will help personally connect you to a franchise that best fits your area of interest. Even further, they assist you on the research end of buying, and can help guide you through the buying process. Best of all, there are no charges for franchise consultant services.

The professional team at Venture Opportunities has consulted on franchises of all types. From fitness to drinks to all types of food franchises, our team has decades of experience helping facilitate the buying and selling of many kinds of franchises.

Buying a franchise is an exciting time. To ensure a successful franchise purchasing experience, call our team today at 972-783-1662! We are Dallas’ top franchise consulting team with years of experience in franchise sales and purchases.

Changes Are Coming: Big Data and Business Lending

There is an old adage that many borrowers use to humorously explain traditional lending advice: Bankers will lend you an umbrella but will take it back as soon as it begins to rain. This long-running joke has some serious underlying truth. One place this practice is plain to observe was the mortgage lending crisis that took place a few years ago. Lenders aggressively provided loans while the housing market surged, however; when the market dipped, banks began to punish borrowers creating a spike in foreclosures.

This practive makes perfect sense from the point of view of the banker or lender. Lenders seek to preserve their investment and protect themselves from losing money. Therefore, punitive lending practices seem to be somewhat predictable. In contrast, this practive can leave many borrowers frustrated.

Towards More Transparent Lending

Traditional banks and newer lending companies will have more access to more information about companies and their performance. Likewise, borrowers will also have access to more information about their lender and their loan.

Companies such as Credit Junction and Kabbage are beginning to utilize a model that provides a detailed, real-time flow of information from the borrower to the lender. Rather than exclusively collecting a FICO score and other data at the time the loan is issued, these companies continue to gather information and update a borrower’s profile.

The increased free flow of information between lender and borrower should result in better credit terms, lending to borrowers currently shut out of traditional lending process and a better understanding of the circumstances faced by a borrowing business.

In addition, lenders will also benefit. Simply, more information means less uncertainty and better loan practices. For instance, lenders will be more able to accurately predict the risk of loans leading to better lending rates that can be properly adjusted based on real-time data.

You can learn more about this topic by checking out this article from Forbes.