Why Use A Business Broker?

Looking to buy or sell a business? You might be asking yourself if using a business broker is worth it, and the answer is yes! Here are just a few of the benefits of using a business broker.

Expertise

No one is more knowledgeable when it comes to buying and selling businesses. A business broker can expertly evaluate your business to properly value it. With constantly changing markets and evaluation methods, most individuals are unable to make a proper assessment. Looking to buy? Business brokers can quickly find options meeting your criteria and show you only what you want to see.

Marketing

Marketing can take significant effort to be effective, which is something many individuals don’t have time for. Plus, you might not want employees to know that you’re looking to sell the business. Confidentiality while marketing can be difficult. By hiring a business broker, you can effectively market your business while focusing on your other priorities.

Security

From confidential agreements to knowledge of legislation, a business broker can provide an extra level of security to your sale or purchase. By relying on the expertise of a professional, you can feel more comfortable about an agreement. An upstanding broker will be transparent and honest with you about all steps of the process.

Looking to buy or sell a business in Dallas or Fort Worth, TX? Call Venture Opportunities at 972-783-1662 today to talk to one of our experienced brokers!

Selling Your Business At The Right Time

If you are looking to start the process of selling your business, you need to make sure you do it at the right time so you get high profitability from the sale. Here are a few things to keep in mind before putting your business up for sale.

How Profitable Is Your Company?

We recommend having at least two years of profitability and tax records to prove it. Those who are looking to buy companies want to see that it is sustaining profits. Make sure you keep detailed records of your company worth. Being prepared will go along way in finding the right buyer fast.

It’s also important that your company is showing profit growth and is not declining or staying static. A company that is showing continued potential growth will get the best offers from buyers. Don’t wait until profits begin to decrease as this will only limit the return you will get from a sale.

Is Now The Right Time to Sell?

It is important to understand the market and how well current sales are faring. Selling your company at the wrong time could result in poor offers while the value of companies on the market are reduced.

Need help with the selling strategy of your company? Contact Venture Opportunities, Inc. at 972-783-1662 to speak with one of our advisers on how to get started on making the right decisions for a profitable sale. We will help you with your financial records and company valuations to ensure you get the highest offers for your business in Dallas, TX.

When Should You Sell Your Business?

One thing to remember as a small business owner is this: owning a business can be risky. That’s why many entrepreneurs decide to build up their businesses, and then sell them off at a profit to someone who can afford to take on a larger risk. But how do you know when it’s a good time to sell your business? Here are some clues:

You Are Risk-Averse

Maybe you started the business before you were truly ready. Or maybe you weren’t prepared for the initial loss of capital that usually occurs before profits begin to roll in. Brand new businesses are risky, so if you’re tired of gambling, it could be time to sell.

Someone Offers to Buy

You should seriously consider any offer that makes financial sense. By selling your small business, you will have liquid assets that you can invest elsewhere. You will also be passing the risk off to someone else, which might be a good thing.

It’s Time to Move On

If you’ve had your business for several years, you might have earned enough money to retire. Or you might just feel the urge to move on to another industry. If you are in either of these situations, you might want to sell as soon as you get a fair offer.

If you have a small business that you are thinking of selling, give us a call today. We are experienced, and we can help you sell your business quickly and confidentially.

Protect Your Personal Assets With an LLC

When starting a small business, it’s important to keep your personal funds separate from your business funds. It’s also important to protect your personal assets in the case of a lawsuit or other penalties your business incurs. One way to do this is by creating an LLC – Limited Liability Company.

First, Choose a Name

Texas law requires your business name to be easily distinguishable from the names of existing businesses. An LLC’s name must also contain “Limited Liability Company“, or “LLC”. To check for name availability, visit the Texas Secretary of State’s web site.

Next, File a Certificate of Formation

The LLC is officially created by filing Form 205 with the Texas Secretary of State. This form will ask for more information, such as the name of the LLC’s registered agent. This must be someone with a physical street address who has the authority to accept legal documents on behalf of the business. The filing fee for Form 205 is currently $300.

Finally, Consult a Professional

There are some special circumstances that will require more paperwork. For example, foreign LLCs that want to do business in the US have to pay a filing fee of $750 and provide even more information. Have a pro oversee your LLC formation to make sure everything is in order and properly filed the first time.

Of course, you can always buy a fully formed business or franchise. If you like this idea, please give us a call today!

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.

Small Business FAQ

If you’ve got a small business, you may experience struggle trying to keep up with all the daily tasks alongside big picture trends. Running a business always proves a tough venture, but well worth it in the end when you pull it off. To help make this whole process a little easier, we’ve put together a few small business FAQs:

I want to sell my business, how do I determine its worth?

While “how to” guides do exist out there, you don’t wan’t to risk getting taken advantage of on your business. Higher a professional to perform a business valuation to make sure you don’t overshoot or undershoot its worth.

What does DBA stand for?

DBA stands for “Doing Business As…” In more states, they require that businesses whose name does not reflect the owner’s file for a DBA.

How do I find minimum wage information for where I do business?

If you want to find out this information, go to the Department of Labor site. There, you can find the laws for your state.

 

Hopefully these FAQs answered a question or two you might have had. If you should require any of a host of business services ranging from valuations to mergers, give Venture Opportunities, Inc. a call. For more information, you can reach us at (972) 783-1662.

Importance of a Business Valuation

How exactly is someone supposed to know how much their company is worth? Net gain, assets, profitability? Actually, every little aspect needs to be taken into account when assessing your business’ value. That’s where business valuations come in. These are done by professional, precise, and meticulous business veterans to get as accurate an appraisal on your business as possible.

Many business owners under-sell their businesses, sometimes by a lot; this is just throwing away cash. With a proper business valuation, this won’t happen. There are other uses for business valuations too; they help with estate planning, business planning, and divorce proceedings as well.

There are 4 major types of business valuations that we offer, based on the size of the sales in the business:

  • Express Valuation: Sales of $0-500k – This produces a valuation anywhere from 7-25 pages. It comes with a cover page that briefly outlines the purpose and conclusion.
  • General Valuation: Sales of $500k-1M – This produces about 45 pages of valuation. Generally small main-street businesses utilize this option.
  • Formal Business Valuation: Sales of $1M-5M – This is a limited scope valuation that covers income statement, balance sheet, comparable transactions, economic outlook, etc.
  • Mergers and Acquisition Valuation: Sales of $5M+ – This valuation offers a complete overview and breakdown of your business; it’s for companies with high projected growth potential.

Here at Venture Opportunities INC, we offer business valuations alongside a host of other services. For more information, please give us a call at (972) 783-1662.

Importance of a “Letter of Intent”

What is a letter of intent (sometimes called a term sheet)? Basically, it’s the precursor to a legal contract: a two to four page overview of the agreement between a buyer and seller of a business. It lays out all the terms of the transaction, such as purchase price, how that will be paid, assets sold, terms of non-compete agreement, etc.

Letters of intent are not binding agreements, those are made afterwards. They do have some very important benefits, however; when you hash out all the agreements before hiring your lawyers, you can save a fortune on legal fees. With all the grunt work done beforehand, lawyers can usually print up a sale document on the first or second draft. If you skip the letter of intent, the whole of your business arrangement and its conversion into legal language will be money in the lawyer’s pocket from both sides. 

 

Here at Venture Opportunities INC, we’re happy to help you with all of your business-related needs: buying, selling, mergers and acquisitions, valuations, etc.  For more information, please give us a call at (972) 783-1662.

3 Preparations for Selling Your Business

Are you considering selling your business? Check out these three tips on preparations for selling your business. And remember, you can always contact us at Venture Opportunities Inc for assistance.

1- At Least 2 Years of Profitability:

You will generally need to show at least two years of tax returns that prove your company is in the black. This is the most direct route to enticing a potential buyer with the value of your company. A couple of years of preparation are necessary to ensure maximum profitability; this shouldn’t be a last minute endeavor.

2- Make Sure your company is at its Peak:

Don’t hold onto your company until it is on the decline; growing companies will receive higher offers than companies that have become stagnant. Selling a company at the height of its success ensures the biggest payback. While you may be making more money from your company at its peak, that money comes out of your potential net worth if you wait too long.

3- Make Sure the Market is Right:

Market fluctuations have a huge influence on the value of a company. Researching market conditions is absolutely necessary to getting the highest offer possible and avoiding toxic dips in an industries worth.

When you get ready to sell your business, consider these three tips before you do so. And be sure to consult Venture Opportunities for assistance.

Why Confidentiality is So Important

You’ll notice we talk a lot about confidentiality and the agreements of such on this website. That’s because when it comes to business sales, confidentiality is extremely important. Unfortunately, the age of the Internet, email and text-messaging has made and continues to make confidentiality more and more difficult achieve. More inexperienced brokers may not succeed, but here at Venture Opportunities, we know confidentiality is paramount to our success and yours.

Sometimes, people interested in buying or owning a business will see an ad for a business and immediately send an email asking for more information, expecting the current owner will happily email them back with the full financial and operational information. But that’s not how business sales work. When you work with a broker from Venture Opportunities, you know that you are only going to have qualified potential buyers to choose from.

Furthermore, often, a business owner will post an ad for the sale of his business without the knowledge of his customer base, partners, suppliers and staff.

Ensuring confidentiality throughout the duration of a business deal is one of the most important aspects of our jobs as business brokers. This is why we ask all of our clients to sign confidentiality agreements at the beginning of the process. Buying a business is not the same as buying a house or a car, and first-time potential business owners need to know that.