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How Long Does it Take to Prepare a Business for a Sale?

How to find a good cpa“I’m looking to sell my business in Atlanta. How long will it take?”

It’s the question every business broker dreads, because there’s no answer. Moreover, the question of how long it takes to prepare a business for sale neglects a fundamental issue: preparation is the most time-consuming part of the sale, and also the most important. To take your business from a state of disarray to full preparation for a sale can take anywhere from 1-3 years. The precise amount often varies with the size and complexity of your business, as well as how much work you’re willing to put into the process. Here are some factors you’ll need to consider.

Daily Operations

Now is the time to streamline your operations. That means putting your processes on paper, eliminating inefficiencies and redundancies, and ensuring a new owner is prepared to run your business. That can take as little as a few days if everything is in basic working order. Or it could take months.

There’s another consideration here, and that is the need to continue operating your business as you prepare for a sale. One of the factors that weighs on how long it will take is how demanding daily operations are. In other words, if running your business demands 60-80 hour weeks, it will take longer to prepare for a sale because you’ll have less time to commit to the preparation. 

Willingness to Prepare

Selling your business takes lots of work on your part. The time line will be shorter if you can fully commit your attention to the process. If you’re distracted, unwilling to help with due diligence prep, or otherwise drag out the process, prepare for many delays. 

Looming Issues

Issues such as lawsuits, regulatory compliance, taxation issues, and debt can all slow the timetable for selling your business. Not only must you address these issues in anticipation of due diligence; you may also have to lower your expectations of the business’s value if there are serious issues with liability exposure. An unbiased third party can take a careful look at any looming issues, and tell you what you need to do to correct them as quickly as possible. 

Your Approach to the Sale

One of the key factors in how long it takes to prepare your business for a sale is how aggressive you want to be in the search for a buyer. Are you merely willing to sell your business if the right buyer comes along? Or are you hoping to sell your business as soon as possible? The more aggressively you pursue a buyer, the more quickly you will likely find one. Of course, that also depends on how fully prepared you are for a sale, since buyers want to purchase businesses that are truly ready for a sale.

Negotiating the Sale

Finding a buyer is just the beginning of the process. You’ll also have to agree to terms of the sale, and fulfill your obligations under the sale contract. This can take a few days, a few months, or in some cases, even a few years. Factors such as how many demands the buyer has, how many negotiation sessions you need, and whether you’ll have a hand in operations after the sale can all affect how long it takes to secure and close a transaction.

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Are Business Partnerships a Good Option?

How to find a good cpaWhen you start a new business, deciding its form is one of the most important decisions you will make. There are six types of businesses:

  1. Sole Proprietorship
  2. Partnership
  3. Limited Liability Company
  4. Corporation
  5. S Corporation
  6. Cooperative

Each type has its own advantages and disadvantages. You should consult with an experienced business attorney to discuss who the business owners are or will be and when filling for a business; what kind of things the business will do or sell; how it will be financed; what its liabilities are or will be; and what exit strategy would be preferable. Your attorney can answer those questions and also tell you the tax advantages of each entity type.

Partnership Benefits

Anyone, even another business, can be a partner; i.e., co-owner of a business. The partnership pays no taxes, but must file an annual informational partnership return. Each partner pays income tax by means of a Schedule C attached to their Federal income tax return; the Schedule C reports their income or loss from the partnership.

A partnership has great flexibility in terms of partnership ownership percentages, voting rights, income rights, etc. Different types of shares can be issued and partnership property often can be distributed to a partner in a tax-deferred way.

The IRS allows partnership income, gains, losses, deductions, and credits to be allocated among partners any way they wish, as long as it conforms to the partnership agreement and is not done to reduce any partner’s individual tax liability. Your attorney should draft the partnership agreement, which often is a lengthy document and is legally binding on all partners.

Partnership Disadvantages

In a general partnership, all partners have unlimited liability and are responsible, jointly and separately, for business obligations. In a limited liability partnership (LLP), partners have limited liability and are not liable for each other’s misconduct or negligence.

In any type of partnership, accounting can become quite complex. In addition, each partner must pay their own self-employment tax (Social Security and Medicare tax).

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How Your Workday Will Improve With Business Automation

student-849825_640Automating business processes in your organization can greatly improve your day-to-day activities. It can help companies by introducing intelligent workflows and removing repetitive tasks. Aside from that, it can also increase visibility of what’s really going on in the production environment, which means that you can have more free time to focus on essential business matters.

In general, automation makes the business more efficient and it can simplify tasks and projects. There are a lot of areas in the business that will improve once you’ve automated, but here are several areas that do benefit daily:

  1. Streamlined communication. For an organized collaboration, incorporating an automated workflow can enable your team to communicate on tasks assigned or still pending, and they can even discuss those individual items in the workflow and have it done in a simpler and streamlined way. This means that there is no need for communication based on email threads as the manager of the project can immediately see the progress, if there are people lagging behind on the task at hand and the goal of the campaign.
  1. Cut down inefficiencies. There is a big chance that there are countless of hours wasted performing tasks manually. The biggest time-consumer in a business is administrative work – and even the small-time business owners complete this type of task. Automation can change up the daily approach, which can then free your time so that you can focus more on essential business insights.
  1. Systematized workflow. Automating this process ensures that you will have a systematic workflow – your employees take full responsibility of the area and tasks they are assigned in. This makes it a lot easier to see the inputs, whether it succeeds or fails. It can also help you identify which of the tasks are taking longer to complete or in what point a task gets stuck frequently. An effective management system allows you to gather informed decisions so that you can address any hiccups, establish better business processes and smooth out the workload among all employees.
  1. Improve the business overall performance. Automation not only lets you see individual items but gives you the entire view of the whole system. Just imagine what you can do with several months of data from the system – you can focus on areas that needs improvement as well as save time as you can get this taken care of immediately.
  1. Save daily costs. Automation can reduce a lot of tasks such as staffing, creating a paperless environment and cut down redundant tasks and ineffective work methods. You will not see instant savings but there should be a gradual reduction on those practices that can lose your business time and money.

Automating processes in the business won’t be an easy process as it will take training and transition. However, an effective workday professional services automation can be one of the reasons to determine why your business will survive in the industry you’re in. It will not always be easy to implement automation, but there are long-term benefits that your business will reap.

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3 Quick Ways to Grow Your Business

cash-1169650_640In these uncertain times we’re all looking for small business growth strategies that are going to put our businesses on firmer ground.

Although there are two potential issues with any small business strategy that’s aimed only at growing your business..

The first thing to understand is expansion is not in and of itself necessarily what you need.
Think:

  • if you’re already burnt out
  • is more business going to assist or hinder you in your aspirations?
  • Do you need more investment
  • If you are in business debt do you need title loan refinance to refinance your debt

Can you really serve more customers and clients with all the unavoidable and consequent increase in everything from supervision and provision to service and cash flow?

Small business marketing is a two-edged sword.

You might not understand this yet, but one of the fastest ways to a failed business is one that can’t satisfactorily serve its clients and .

Business development at the trouble of business protection is insane.

The next point is business development is isn’t truly what you need, even if you believe that it is.

Everything you actually want — or must do, if you’re thinking issues through — is profit development.

I mean, surely it will be preferable to be performing the same quantity of work — or actually much less of it — but producing more profit?

I believe the only rational response to that is “yes”.

So listed below are 3 simple methods any small company can grow its income without having to function harder or longer.

1. Charge more.

This suggestion always provides a howl of protest from my customers, because they instantly and automatically presume everyone buys on cost. They do don’t.

As a matter of known fact nobody buys on price alone all the time, actually if they declare they do. If you believe I’m wrong just stick your head out of the door and see how many of your neighbors are living a truly subsistence lifestyle where they make do with the cheapest of everything, just because it IS cheap.

Without going into the mathematics here, just believe me when I share with you a small percentage increase in your prices means a vastly disproportionate increase in your profits (and a price-cut has a similarly out of proportion NEGATIVE impact on your profits, so take care ). Just give it a try. If I’m wrong, then you can always drop them back down again next week, and no harm done.

2. Concern yourself less about chasing new business and think more about how you can follow-up with and provide your existing and previous customers and clients.

Many companies don’t recognize this.

And by far the most typical reason behind clients and clients abandoning your business for another can be your indifference to them. You can’t expect customer loyalty if you provide them with anything to be devoted to.

Email, immediate mail, postcards, SMS… many of these are outstanding methods to retain in touch and in the event that you do it regularly and typically you Can make more sales.

3. Prevent selling and commence serving.

I know, it appears like it does doesn’t seem sensible. However the thing is: if you are promoting, you’re pitching rather than paying attention. And if you are heedless of what your visitors and customers want and require, you’re passing up on a lot of possibilities to provide them more fully.

And in the event that you give better and better service, your earnings will rise accordingly.

The last issue I’ll say can be this: every single one of these tips works. I guarantee they’ll make you more money.

But most important thing is, if you don’t do anything with them, they cannot possibly work for you.

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How Can a Contract Lawyer Help You?

If you run a business of any size, you’ll be dealing with contracts as a daily occurrence. You’ll be hiring and firing, perhaps taking on specialist consultants to deal with specific projects, not mention renting premises and storage facilities, and buying in raw materials or products to sell.

This can be a heavy burden to bear with other aspects of your business to run, and the consequences if you fail to review a contract and miss an unexpected clause could be costly.

With that that in mind, let’s look at how a contract lawyer can help you and add value to your business.

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