Article Check - Business

How To Know If The Interior Design Business Is Right For You
Have you ever seen a beautiful house or office building and wondered who did the work? Have you ever wished that you could do some of the work that you've seen elsewhere? Many people wonder what it would be like to be an Interior Designer, but they rarely ever go beyond thinking about it.An interior Designer is a consultant. You are there to beautify any particular environment as well as provide your clients with the service of explaining why you are recommending, and doing the things that your project will require. You must educate your client about interior design as well as design.You have obviously given the idea of being an Interior Designer serious thought or you wouldn't be reading this. Of course, like most people, you are probably wondering whether or not it is the right choice for you.

l for legal review. In the absence of the business broker that sometimes-exhaustive negotiation process would default to the outside attorney. It is not his area of expertise and could result in significant hourly fees.

9. Maintain Buyer – Seller Relationship. The sale of a business is an emotional process and can become contentious. The business broker acts as a buffer between the buyer and seller. This not only improves the likelihood of the transaction closing, but helps preserve a healthy buyer – seller relationship post closing. Often buyers want sellers to have a portion of their transaction value contingent on the successful performance of the company post closing. Buyer and seller need to be on the same team after closing.

Our experiences with businesses that engaged our firm as a result of an unsolicited offer from a buyer have been quite instructive. The eventual selling price averaged over 20% higher than the first offer. In no case was the business sold at the initial price. To conclude, the business broker helps reduce the risk of business erosion with improved confidentiality while allowing the owner to focus on running the business. The business broker led sale helps maximize sales proceeds by involving a large universe of

Innovation - Top Ten Tips
Everybody talks about innovation but not many firms can “walk the talk” and turn a creative idea into something of value. According to the Harvard Business Review only 1 in 10 new product introductions succeed in the market.But what makes the difference between success and failure? If we knew the answer we could use innovation to drive faster growth and superior profits.I asked 65 companies world-wide to look back at their recent projects and decide why some projects worked and some didn’t. They include IBM, Microsoft, Lloyds Bank and the RAF. Here are the conclusions of the study:1. Know exactly who will buy your product, under what circumstances and at what price.2. Make sure the product is high on the list of priorities for your customer and they need it urgently.3. Your

Perhaps the most important business transaction you will ever pursue is the sale of your business. Many business owners attempt to do it themselves and when asked if they got a good deal, many respond with “I think so,” or “I got my asking price,” or “I really don’t know,” or “It was a disaster.” Often times these very capable business people approach the sale of their business with less formality than in the sale of a home. The purpose of this article is to answer the questions – Why would I use a business broker and what am I getting for the fees I will pay?

1. Confidentiality. If an owner tries to sell his own business, that process alone reveals to the world that his business is for sale. Employees, customers, suppliers, and bankers all get nervous and competitors get predatory. The business broker protects the identity of the company he represents for sale with a process designed to contact only owner approved buyers with a blind profile – a document describing the company without revealing its identity. In order for the buyer to gain access to any sensitive information he must sign a confidentiality agreement. That generally eliminates the tire kickers and deters behaviors detrimental to the seller’s business

2. Business Continuity. Selling a business is a full time job. The business owner is already performing multiple functions instrumental to the success of his business. By taking on the load of selling his business, many of those essential functions will get less attention, sometimes causing irreparable damage to the business. The owner must maintain focus on running his business at its full potential while it is being sold.

3. Time to Close. Since the business broker’s function is to sell the business, he has a much better chance of closing a transaction faster than the owner. The faster the sale, the lower the risk of business erosion, customer defection, employee problems and predatory competition.

4. Large Universe of Buyers. Business brokers subscribe to databases of businesses that enable them to screen for buyers that are in a certain SIC Code and have revenues that would support the potential acquisition. In addition they maintain databases of high net worth individual buyers and have access to private equity groups databases that outline their buying criteria.

5. Marketing. A business broker can help present the business in its best light to maximize selling price. He understands how to recast financials to recognize the EBITDA potential post acquisition. Higher EBITDA = higher selling price. He understands the key value drivers for buyers and can help the owner identify changes that translate into enhanced selling price.

6. Valuation Knowledge. The value of a business is far more difficult to ascertain than the value of a house. Every business is unique and has hundreds of variables that effect value. Business brokers have access to business transaction databases, but those should be used as guidelines or reference points. The best way for a business owner to truly feel comfortable that he got the best deal is to have several financially viable parties bidding for his business. An industry database may indicate the value of your business based on certain valuation multiples, but the market provides the real answer. An industry database, for example, can not put a value to a particular buyer on a key customer relationship or a proprietary technology. Most business owners that act as their own business broker get only one buyer involved – either another business that approaches him with an unsolicited offer or a referral from his banker, accountant, or outside attorney. Just look at the additional billion plus dollars of value created for MCI shareholders because of the competitive bidding between Verison and Quest Communications.

7. Balance of Experience. Most corporate buyers have acquired multiple businesses while sellers usually have only one sale. In one situation we represented a first-time seller being pursued by a buyer with 26 previous acquisitions. Buyers want the lowest price and the most favorable terms. The inexperienced seller will be negotiating in the dark. To every term and condition in the buyer’s favor the buyer will respond with, “that is standard practice” or “that is the market” or “this is how we did it in ten other deals.” By engaging a business broker the seller has an advocate with a similar experience base to help preserve the seller’s transaction value and structure.

8. Maximize the Value of Seller’s Outside Professionals. Business brokers can save the seller significantly on professional hourly fees by managing several important functions leading up to contract. His compensation is usually comprised of a reasonable monthly fee plus a success fee that is a percentage of the transaction value. The business broker and seller negotiate with the buyer the business terms of the transaction (sale price, down payment, seller financing, etc.) prior to turning the purchase agreement over to outside counsel for legal review. In the absence of the business broker that sometimes-exhaustive negotiation process would default to the outside attorney. It is not his area of expertise and could result in significant hourly fees.

Invoice Discounting For Canadian Companies
Do you own a small or medium sized business? Then you know that obtaining business financing in Canada has not been an easy task. Until very recently, the Canadian business financing scene was dominated by banks and large institutions. They were always willing to provide business loans and credit to large businesses. But what about small and medium sized business owners, who could not easily qualify for a business loan?Until recently, you were out of luck. But this is changing, now factoring companies have been setting up shop in Canada, offering their business financing and invoice discounting services to small and medium sized business owners across the country.Do any of these sound familiar?1. You do business with large commercial clients. They pay slowly and that is hurting you 2

. Selling a business is a full time job. The business owner is already performing multiple functions instrumental to the success of his business. By taking on the load of selling his business, many of those essential functions will get less attention, sometimes causing irreparable damage to the business. The owner must maintain focus on running his business at its full potential while it is being sold.

Home Business - Make Sense Of The Failure Rate
When there is such an enormous choice of ways to make money at home, it seems strange that so many people fail when they try to start their own home business. Do they all choose the wrong business for them or is there something inherently wrong with the idea of earning money working from home? The statistics produced in regard to home businesses say that 90% will come to an end within the first five years. Ninety percent is a frighteningly high failure rate. If we assume the statistics are correct, should we let them deter us from working from home?Some people quote a failure rate of 95% or 98% for Internet based businesses but, for now, let's assume the failure rate is at the same 90% level for any home business (online or offline). One thing that the figures don't reflect is that five years is a

sition. Higher EBITDA = higher selling price. He understands the key value drivers for buyers and can help the owner identify changes that translate into enhanced selling price.

New Ventures on a Shoestring
If you do not have any money and want to start a new venture, do you give up and wait or do you find a way to get it done? If you take the conservative route your answer will be I will wait until I have enough cash to get the idea going. But how long are you willing to wait? How long will the opportunity last? Small questions that deserve long answers. You need to look at the problem from many angles. First Analyze the opportunity. Do not just rely on your passion (although passion is important). Do some research and find out if there is a market and if money can be made from it. Survey potential customers to see if they would buy the product or service and how much they would pay for it. Second Do some more analysis by locating competitors (if it is a really new ide

g between Verison and Quest Communications.

Corporate Merger Acquisitions
Corporate mergers and acquisitions are quite common these days. In 2004 deals worth over $800 billion were concluded, up 50% from the previous year. This trend is expected to sustain during the rest of the decade.Basically, mergers and acquisitions are meant for consolidation and growth of a corporation. For instance, a retail chain, which has a strong presence in the East Coast, wants to expand its business to the West. It could either put up its own facilities, which is a time-consuming process, or acquire a large chain or several local chains.There could be other reasons as well for mergers and acquisitions. A profit-making company could benefit from tax write-off by acquiring one that is running at a loss. Certain mergers and acquisitions complement each other's capabilities and facilities.

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Is the 80/20 Rule an abstract economic principle or is it a model of human behavior that works the same way every time? A Five Thousand year old story provides the answer. Understanding this story and its lessons will assist any business owner to stay focused, on track and on vision.

If you can grow your business, should you? Personal freedom sometimes means keeping your business small and highly profitable with less financial risk.

With medical billing and the electronic submission of claims, just sending the claims isn't enough. They have to be sent in just the right order. In this installment, we discuss the complex topic of records hierarchy.

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