Helpful tidbits to help business owners

Creating a Budget for Your Small Business

Thu, 21 Aug 2025 19:46:49 GMT

Why Every Small Business Needs a Budget

A budget is more than just numbers on a spreadsheet. It’s your financial roadmap. With it, you can:

Forecast income and expenses.

Spot cash flow gaps before they become crises.

Plan for growth and reinvestment.

Prove financial responsibility to lenders or investors.

Without one, small business owners often end up overspending, underestimating costs, or missing growth opportunities.

Step 1: Estimate Your Revenue

Start with your expected income. Look at past sales, market trends, and any new contracts or clients in the pipeline. Be realistic—if last year’s revenue was $250,000, don’t jump to $400,000 unless you’ve made changes that clearly support that growth.

Pro tip: Build in a conservative estimate. It’s better to be pleasantly surprised by extra revenue than caught short by missing your target.

Step 2: List Fixed and Variable Costs

Fixed costs stay the same each month (rent, insurance, salaries).

Variable costs change depending on activity (supplies, utilities, shipping).

Knowing both gives you a clear picture of what expenses are predictable and which can be adjusted when cash flow is tight.

Step 3: Don’t Forget Periodic Expenses

Some costs don’t show up monthly but still hit your bottom line—like annual software renewals, tax bills, or equipment upgrades. Build these into your budget so they don’t catch you off guard.

Step 4: Allocate for Savings and Emergencies

Even a small business should set aside funds for a rainy day. Whether it’s an unexpected repair, a slow sales season, or an investment opportunity, having cash reserves protects your business and your peace of mind.

Step 5: Monitor and Adjust Regularly

A budget isn’t a “set it and forget it” tool. Review it monthly:

Compare actual income and expenses to projections.

Adjust categories if you consistently overspend or underspend.

Use the insights to guide hiring, marketing, and investment decisions.

Tools to Make Budgeting Easier

You don’t need fancy accounting software to start. Tools like QuickBooks, Xero, or even a well-structured Excel sheet can help you track income and expenses effectively. The key is consistency—pick one system and stick with it.

Final Thoughts

Creating a budget may feel overwhelming at first, but it’s one of the most powerful tools you can give your business. Think of it as both a shield and a compass: it protects you from unexpected financial hits and points you toward long-term growth.

With a clear budget in place, you’ll have the confidence to make smarter decisions and the flexibility to seize opportunities as they come.

Contact First Choice Business Brokers of East Tennessee and Nashville today.

Creating a Google Ads Campaign That Delivers Result

Wed, 13 Aug 2025 19:04:33 GMT

Launching a Google Ads campaign is more than just picking a few keywords and hoping for clicks. It’s a strategic process that, when done right, can put your business in front of customers exactly when they’re searching for what you offer. The goal is simple: connect the right audience with the right message at the right time.

The first step is defining your objective. Are you trying to drive sales, generate leads, or increase website traffic? Google Ads offers multiple campaign types — Search, Display, Video, Shopping — and your goal will determine which is best. For example, Search campaigns work well for direct intent, while Display ads are better for building brand awareness.

Once your objective is clear, it’s time to research your keywords. Use Google’s Keyword Planner to identify high-intent search terms your customers are using. The key is balance — choose keywords with enough search volume to make an impact, but with competition and cost per click that still fit your budget. Group your keywords into tightly themed ad groups so your ads can be highly relevant to each search.

Next comes the ad copy and creative. Every headline and description should speak directly to the user’s intent and highlight your unique selling points. Strong calls-to-action like “Get a Free Quote” or “Book Today” make it clear what you want them to do. If you’re using images or video, keep them clean, on-brand, and visually engaging.

Targeting is where you make sure your ads show up for the right people. Beyond keywords, you can set geographic areas, audience interests, demographics, and even times of day when your ads should appear. This level of precision helps you avoid wasting budget on unqualified clicks.

Finally, launch your campaign — but don’t just set it and forget it. Monitor performance daily in the first week and regularly afterward. Look for click-through rates, conversion rates, and cost per conversion. Test different ad variations, adjust bids, and refine your targeting to improve results over time.

Creating a Google Ads campaign is both an art and a science. With a clear goal, smart targeting, compelling ads, and ongoing optimization, you can turn clicks into customers and make every dollar count.

Crafting a Unique Value Proposition: Why It Matters and How to Get It Right

Tue, 05 Aug 2025 20:39:57 GMT

Whether you're buying a business, launching a new brand, or preparing to take an existing one in a new direction — one thing is clear: you need a strong, clear, and unique value proposition. In a market full of choices, your value proposition tells your audience why they should choose you — and more importantly, why they should trust you.

But here’s the challenge: most business owners and buyers skip over this part or settle for something generic. They focus on operations, logistics, or pricing — and forget to answer the core question every customer is asking:

“Why should I choose you instead of someone else?”

Let’s dig into what makes a value proposition powerful, and how you can build one that actually works.

What Is a Value Proposition, Really?

A value proposition is more than a slogan or a clever tagline. It’s a focused message that articulates:

Who you serve
What you offer
Why it matters
And how it’s different from others in your space

In other words, it’s the promise you’re making to your customer — the reason they should engage with your business, buy your product, or commit to your service.

Whether you’re buying a business and looking to attract new customers, or preparing your company for sale and want to make it more attractive to buyers — a sharp, authentic value proposition is critical.

Why It’s Crucial in the Acquisition Process

When acquiring a business, buyers often focus on numbers: revenue, margins, expenses. But the value proposition is what breathes life into those numbers. It answers:

Why are customers loyal to this brand?
What makes this business stand out in the market?
Is there a meaningful foundation to build on and grow from?

On the flip side, if you’re the seller, your value proposition helps a buyer understand what they’re actually buying — beyond the financials. It becomes the story that justifies the price and inspires confidence in the future.

How to Craft a Strong Value Proposition

There’s no one-size-fits-all formula, but every great value proposition has three key qualities:

1. Clarity

Avoid jargon, fluff, or industry buzzwords. Your message should be clear enough that anyone — regardless of background — can immediately understand what you do and why it matters.

✅ Example: “We help busy families eat better with ready-made, organic meals delivered to their door.”

2. Specificity

General statements don’t resonate. Be as specific as possible about the results you deliver or the problem you solve.

✅ Example: “We cut average HR onboarding time by 60% through our automated platform designed for mid-size companies.”

3. Differentiation

What makes you different from your competitors? Price, convenience, customization, service, speed, culture — something should stand out.

✅ Example: “Unlike other logistics firms, we specialize in same-day freight for hard-to-serve rural markets.”

Questions to Help You Discover Yours

If you’re struggling to pin down your value proposition, start by asking:

What do your current customers love most about the business?
What problems are you uniquely solving?
What results or transformations do you help people achieve?
Why do customers come back — or refer others?
What feedback do you hear over and over again?

Your value proposition often already exists — it just hasn’t been written down clearly yet.

Final Thoughts

In today’s market, clarity wins. Buyers, customers, and even potential partners need to understand, quickly and confidently, what makes your business worth engaging with.

So whether you're preparing to buy, sell, or grow, crafting a strong value proposition isn’t just a branding exercise — it’s a strategic move that influences everything from marketing to pricing to long-term growth.

You don’t have to sound like everyone else. In fact, you shouldn’t.

You just have to sound like you — clearly, confidently, and with purpose.

Need help identifying or positioning your value proposition during the sale or acquisition process?
Contact First Choice Business Brokers of East Tennessee and Nashville today.
�� https://easttn.fcbb.com
? ? https://nashville.fcbb.com

Content Marketing Strategies That Actually Work

Wed, 30 Jul 2025 20:48:18 GMT

In a world overflowing with digital noise, content is more than just a marketing tool—it’s how you build trust before the first conversation ever happens.

But content without a strategy is just noise. To make your efforts count, you need a plan that connects with your audience and delivers consistent value. Here's how:

1. Know Your Audience

Stop guessing. Start answering real questions your buyers and sellers are asking. Use client conversations as fuel for blogs, videos, and social posts.

2. Be Helpful, Not Just Loud

One insightful post or video is more valuable than ten forgettable ones. Focus on creating content that educates, builds trust, and positions you as the expert.

3. Mix Your Formats

Blog posts build SEO. Videos build visibility. Emails build relationships. Choose the formats your audience actually consumes—and show up consistently.

4. Stay Consistent

Content marketing isn’t about going viral. It’s about showing up regularly with content your audience comes to rely on. Build trust over time.

5. Always Include a Next Step

Don’t leave your audience hanging. Invite them to take action—whether that’s booking a call or watching another helpful video.

Done right, content marketing doesn’t just attract attention—it builds a reputation.

Contact First Choice Business Brokers of East Tennessee and Nashville today.

Conflict Resolution in the Workplace

Mon, 21 Jul 2025 12:42:41 GMT

Conflict in the workplace is inevitable — but it doesn’t have to be destructive. In fact, when handled well, conflict can lead to stronger teams, clearer communication, and better results. The key is knowing how to navigate it with care, professionalism, and purpose.

Workplace conflicts can arise from miscommunication, competing priorities, differences in work styles, or even personal misunderstandings. Ignoring these issues often makes them worse, creating tension, lowering morale, and hurting productivity. That’s why having a clear approach to conflict resolution is essential for any business.

Effective conflict resolution starts with listening. Give each person the chance to share their perspective without interruption or judgment. Focus on the issue, not the personalities involved, and look for common ground. When possible, encourage the parties to brainstorm solutions together — people are more likely to commit to a plan they helped create.

As a leader, it’s important to stay neutral, set clear expectations for respectful behavior, and follow through on agreed solutions. Sometimes, bringing in an outside mediator or HR professional can help when emotions run high or issues are complex.

The goal isn’t to avoid all conflict but to manage it in a way that builds trust, encourages collaboration, and helps the team grow stronger. By fostering a workplace culture where open dialogue is welcomed and problems are addressed early, you set your business up for long-term success.

Contact First Choice Business Brokers of East Tennessee and Nashville today.
➡️ https://easttn.fcbb.com
➡️ https://nashville.fcbb.com

What Do Business Brokers Do? A Guide for Nashville Business Owners and Buyers

Wed, 16 Apr 2025 05:44:38 GMT

If you've been browsing listings for a bu siness for sale in Nashville, TN , or considering selling your company, you’ve likely come across the term business broker . But what exactly does a business broker do—and why are they essential in today's dynamic market?

At First Choice Business Brokers Nashville , our licensed professionals play a pivotal role in helping entrepreneurs, investors, and business owners navigate one of the most complex financial transactions of their lives. Whether you're buying, selling, or valuing a business, our Nashville business brokers are your trusted partners every step of the way.

What Is a Business Broker?

A business broker is a licensed professional who facilitates the sale or purchase of a privately held business. Think of them as the real estate agents of the business world—but with a much deeper focus on valuation, negotiations, confidentiality, and deal structure .

Business brokers don’t just match buyers and sellers—they provide strategic guidance, prepare businesses for market, analyze financials, and help buyers comply with state laws and industry standards.

Services Business Brokers Provide in Nashville

At FCBB Nashville , our team provides a full suite of services to help clients achieve successful outcomes. Here’s what we do:

Business Valuation

We conduct an accurate Market Price Analysis to determine the fair market value of your business. This includes reviewing financial statements, industry comparables, assets, cash flow, and growth potential.

Listing and Marketing Your Business

Selling a business is a sensitive process. We confidentially market your business to qualified buyers using a network of listings, databases, and buyer contacts—without alerting employees, customers, or competitors.

Buyer Qualification and Matchmaking

Not all buyers are serious or financially prepared. Our brokers screen prospects to ensure they’re ready and qualified to move forward, saving you time and protecting your business’s integrity.

Negotiation and Offer Management

From structuring the offer to managing counteroffers, we negotiate on your behalf to secure terms that are favorable and fair—keeping deals on track and reducing friction.

Transactional Guidance and Confidentiality

Our brokers coordinate the due diligence, financial disclosures, and legal documentation, ensuring a smooth, confidential sale . Every step is handled with professionalism and care.

Why Work with Nashville Business Brokers?

Nashville’s business scene is booming, and that creates opportunity—but also complexity. Whether you're looking to retire, relocate, or reinvest, working with experienced Nashville business brokers don’t want to leave money—or risk—on the table.

Here’s what sets FCBB Nashville apart:

Industry-Leading Experience – Our brokers come from diverse fields, including accounting, legal, real estate, and finance.

Client-First Values – We’re committed to professionalism, confidentiality, and integrity.

Comprehensive Process – From valuation to closing, our team handles every aspect of the transaction.

Tailored Solutions – Whether you're a first-time buyer or serial entrepreneur, we provide strategic guidance unique to your goals.

Who We Help

At First Choice Business Brokers Nashville , we assist:

Sellers looking for the highest value and the smoothest exit
Buyers searching for profitable opportunities in a growing market
Retirees planning for succession and liquidity
Investors interested in mergers, acquisitions, or franchise expansion

If you’re exploring a business for sale in Nashville, TN , or are ready to list your own, our team has the tools and network to help you succeed.

FREQUENTLY ASKED QUESTION

This blog is for informational purposes only and does not constitute legal, financial, or business advice. Please consult with a licensed professional regarding your individual situation before making any business-related decisions.

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Buying an existing business

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Building a strong company culture

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Building a professional business website

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Business transfer fees and costs

Thu, 30 Jan 2025 15:42:55 GMT

Business broker vs. DIY sale Pros and cons

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Business broker vs. DIY sale Pros and cons

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To Franchise Or Not To Franchise?

Tue, 27 Feb 2024 19:23:01 GMT

On the surface, the idea of buying into a franchise makes sense, but is franchising the way to go?

On the surface, the idea of buying into a franchise makes sense. After all, the business is already structured, and you don’t have to worry about many major aspects of marketing. But is franchising the way to go? That depends. Today, we will take a quick look at the pros and cons of investing in a franchise business.

The Benefits

There are many benefits that go along with investing in a franchise. These include:

Reduced risk. A franchise is essentially a proven business model. There are many franchises throughout the Nashville area, but these are often recognized, national brands. This means a lowered startup risk compared to launching from the ground up.
Brand recognition. An established franchise likely already has a loyal customer base. This can make it easier to attract new customers, even in a new market.
Support and training. As mentioned above, a franchise is a proven business model. This is not by accident, and franchises almost always come with training and support for new business owners. This takes much of the guesswork out of getting started.
Potentially easier financing. If you’re planning to franchise with a much larger operation, you may have access to lenders who already have a relationship with the franchise. This could potentially make financing a bit less challenging.

The Disadvantages

While owning a franchise offers many perks, entrepreneurs will also benefit by understanding the potential drawbacks. These include:

A higher initial investment. You can start your own business with zero dollars, if necessary. However, a franchise requires franchise fees and other assorted startup costs. And you may be required to have a proven net worth before being allowed to franchise.
Less control. As a franchisee, you are bound by the rules and covenants of your franchise. You can’t make changes to the way you operate or to your marketing strategies, even if these are not working in your area.
Long-term commitment. Many franchises will require that you sign a franchise agreement that lasts for multiple years. This can lock you into a contract that you’re required to fulfill.

There are many amazing franchises out there available for resale that make sense for future entrepreneurs looking to fast-track their way to business ownership. However, it’s not a decision to enter into lightly. Ask your First Choice Business Broker about existing franchises available and to discuss the pros and cons in more detail so that you can make an informed decision about your financial future.

Small Business, Big Impact

Tue, 13 Feb 2024 19:15:17 GMT

Small businesses have a big impact on the communities they serve.

But more than just bringing retail or services to an area, small businesses have an economic, community, and social standing that makes them more important than ever.

The Economic Impact

The vast majority of businesses in the US are small businesses. Because of this, small businesses drive job creation in ways that large businesses can’t. With a diverse range of small businesses, there are more jobs for local residents and to attract new people to an area. Local businesses also contribute to the tax infrastructure of their cities. These taxes fund schools, libraries, parks, and community centers.

Community Identity

Small businesses also contribute to their community identity. They do this first by creating distinct character and charm to help reflect the community’s history, values, and needs. Small businesses also engage with their communities by supporting schools, local charities, and other events. This can help create a sense of belonging and connection between business and community. Importantly, small businesses are also key innovators that are agile and adaptable. This type of entrepreneurial spirit helps keep communities alive economically and otherwise.

Social Connections

Small businesses provided a personal touch that the “big box” services do not. Local business owners can connect directly with their customers to create a sense of community and familiarity. Small businesses also work together to create a support network between other businesses that allow them to better serve their customers by knowing who to refer them to when they can’t provide a specific product or service.

Small Business Statistics

Need more proof that small business matters? Check out the stats.

There are more than 33 million small businesses in the US. This accounts for 99.9% of businesses.
46.8% of all private sector jobs fall under the scope of small businesses.
Small businesses are responsible for more than 66% of new jobs in the last 30 years.

Are you ready to be a part of the community? Contact First Choice Business Brokers today to find out what small businesses are available in the Nashville area. You may be surprised at the opportunities that are out there. You don’t necessarily have to have experience in any particular business or industry, just a drive to succeed and a desire to bring something to your hometown that wasn’t already there.

Proceeding With Caution: Buyer Red Flags

Mon, 29 Jan 2024 21:51:06 GMT

Selling a business means sorting through multiple offers.

But how do you know which offers to put on your short list of potentials and which should leave you with cause for concern? Today, we will take a quick look at buyer red flags that should have you proceeding with caution.

Ultimately, money is what buys a business. But just because a buyer is seemingly willing to throw down big bucks for your life’s work does not mean that the money is there. Be on the lookout for:

An unrealistic valuation. While your business broker has already created a valuation of your business, some buyers might wish to come in much higher to try to oust the competition. Although multiple offers might spur a bigger payday, be mindful that this could be an attempt to get you to ignore other offers and bring you to the negotiation table later on.

Unproven funding. Your buyer should be able to prove that they have the cash or funding sources available before or shortly after making an offer. Having no clear financial arrangements is a red flag that your business broker will likely caution you to be wary of.

Too many contingencies. Contingencies are part of the buying and selling process for most major investments. However, when your offer comes with a seemingly never-ending list of conditional clauses, this might indicate that the purchasing party is simply looking for an easy exit strategy.

Excessive retention requirements. Many new business owners will ask that you stay on for a short amount of time to help ease the transition. Make sure that there is a clear-cut end date for this agreement so that you are not limited in your ability to move forward when you’re ready.

Unclear terms. When the buyer submits an offer, their broker representative should ensure that the offer terms are clear. If not, it’s time to move on.

While this is not a full list of potential red flags to consider when selling a business, the above does underscore the importance of doing your diligence. When you’re working with an experienced business broker, they can help you spot these types of potential issues so that you can sidestep unqualified (or unscrupulous) buyers and enjoy a seamless selling experience.

When you are ready to sell, contact Russell Carriere at First Choice Business Brokers. I am ready to find you a Buyer that meets the criteria you are looking for when selling your business.

Understanding Your Future Business’s Finances

Mon, 15 Jan 2024 21:20:39 GMT

One of the most important things that you can do as a buyer is to assess the financial health of any business on your radar.

It is not enough to simply know the business is busy. Remember, it takes more than just sales to turn a profit.

Keep reading as we take a quick peek at ways that you can dive deeper into the books to make an informed and confident decision.

Assessing Financial Documents

All (well-run) businesses have a financial paper trail that includes statements, balance sheets, and information on its revenue, debt, profitability, assets, liabilities, and cash flow. You’ll need to take a look at these, as well as tax returns and budget and forecast projections, to get a better idea of current and future financial expectations.

Analyzing Metrics

Once you have financial documents in hand, you can analyze key financial metrics, such as profitability, solvency, and operating efficiency. You want to get a grasp of net profit, gross margin, and average ROI. Look for indicators that let you know how quickly the business can meet its short-term obligations and the type of debt burden it carries.

Trends And Benchmarks

In addition to just numbers, you’ll also want to look ahead at trends in the industry. Is the business growing as quickly as others that might be considered competition? Are operating expenses appropriate and as one might expect? You also need to take a look at KPIs, such as revenue growth rate, customer acquisition costs, and benchmarks appropriate to the business’s specific industry.

More Than The Numbers

While understanding a business's financial health deals mostly with numbers, there are other things you’ll need to consider. Do an environmental audit, consider a legal review, and don’t be shy about looking at customer reviews, all of which can give you an idea of how the business is currently operating and how it’s likely to be viewed now and in the future.

Seek Professional Help

Another key step you can take as you turn your interest toward a specific business is to involve an accountant or CPA to help analyze financial data and point out any potential risk you may have missed during your own personal due diligence. First Choice Business Brokers can provide a list of professionals to assist in reviewing the financial data during the Due Diligence Process.

First Choice Business Brokers is a full-service business acquisition provider that can help you make an informed decision before you make an investment. Contact Russell Carriere today to find out more.

Forecasting Growth Crucial Before Listing

Wed, 03 Jan 2024 19:56:16 GMT

Forecasting growth is a crucial part of running a small business.

It helps you make informed decisions about marketing strategies, staffing levels, inventory, the annual budget, and more. And when it’s time to sell, your future forecasts can help buyers visualize the potential for growth.

There are many ways to forecast growth, and the most common approach is to utilize historical sales data. This involves looking at your past figures to identify trends. You can then use these to project future sales.

Market research is another popular way of forecasting growth. In this model, you’ll gather data about your target market, which includes the size, growth rate, and local competition. You can then use this information to make an informed decision on how you might capture your share of the market.

Reasons Forecasting Matters

Showcasing the potential for growth can help your business stand out from others who might be on the radar of your buyers. Just a few things to consider as you look ahead at your future profits and revenue are:

You may get a higher price. Buyers are likely to pay more for a business that has the potential to grow.
You may attract more buyers. Having a business with projected growth on the books can create competition. Competition, in turn, can drive pricing even higher.
You’ll streamline the selling process. When buyers are more confident that they can make a living off the business that you’ve built, you may run into fewer snags in the selling pipeline.

Showing Growth

You can illustrate your potential for growth in a few different ways. Begin by highlighting your financial performance. Ensure that buyers know your profits, revenue, and market share. You can also show what sets you apart from the competition and gives you an advantage. Another important part of showing your financial standing is allowing potential buyers to view your management team, as these individuals collectively can help shape the current and future success of any business. Finally, show off your customer base. Provide potential buyers with information on your customer demographics and satisfaction levels.

Buyers are not simply investing in a business. They are investing in their future. Put them at ease with facts and figures that show there is room for expansion, and your business will be a hot commodity on the brokerage list.

First Choice Business Brokers is East Tennessee and Greater Nashville’s leading business brokerage firm. We are a hometown brokerage service that can help you buy or sell all over the US.

Is It Possible To Sell A Struggling Business?

Tue, 19 Dec 2023 19:43:23 GMT

In a word, yes.

There are many reasons that a business owner may choose to list their business for sale. They may wish to pursue retirement or desire to move to be closer to family. But what happens when the business is struggling? Is it still possible to sell? Unfortunately, many business owners believe the only solution here is to shut the doors for good. This is not always the case, and there are many things you can do to help potential buyers see the value of your business.

It Starts With A Valuation

Your first step is to identify where your business may be falling short. Determine the root causes of your problems, and then look for ways to address them before the sale. This can involve anything from making changes to your product line or services to updating your marketing strategy or revamping your operations in their entirety.

Transparency Is Key

While you need to make your business as attractive as possible by reducing debt and improving profitability, you also have a moral, legal, and ethical obligation to be transparent with potential buyers. Don’t try and hide issues that you may not be proud of. Trust that buyers appreciate honesty and will be more likely to put an offer on the table if they know the challenges they may face.

Know Your Buyers

In addition to being open and honest, you should also speak with your business broker about the types of buyers that might be right for your business. Remember, just as no two businesses are alike, no two buyers will have the same interest or experience. Your business broker can help you identify the types of parties who may be most interested so that you can create a marketing plan that captures the attention of the right buyer.

Pricing Is Priceless

Determining market valuation is crucial in both attracting the right party and expediting the sales process. When you work with First Choice Business Brokers, your team of experts can help determine market valuation using proven methods that take into account profit, losses, discretionary income, and more. The goal here is not to price your business too low or too high but to strike a balance that works for everyone involved in the transaction.

Selling a business can be a daunting task, especially when there are struggles that you’ve yet to overcome. However, the right buyer is out there, but you will have to put in the work, choose the right broker, and maintain an open and honest line of communication throughout the process.

Ready to sell? Contact First Choice Business Brokers today to find out more about our professional brokerage services.

Why Would A Seller Sell A Profitable Business?

duda@fcbb.com — Thu, 20 Jul 2023 05:13:12 GMT

Smart Seller Exit Planning Strategies

Discover the reasons that a seller would sell what appears to be a great profitable business.

Many successful entrepreneurs also do something else that most business owners don’t do, they plan an exit strategy.

So the question is why would the person who is operating a business that is running successfully and making money look for an exit strategy.

The typical reasons are for either planning an exit strategy or considering selling are (and not in any order of importance): 1. The owner has reached the goal that they wanted to achieve; 2. The owner has found another idea that they wanted to pursue; 3. Boredom or burn out; 4. Not financially rewarding; or 5. Not emotionally fulfilling. 6. Need of a new challenge.

So it is good to know that many entrepreneurs who are busy building their business are also considering their exit strategy.

As a business owner, do you know your exit strategy and will you be prepared?

Buyers look for businesses that can provide two major components, one is sustainable income and the second is growth potential. After twenty four years of bringing buyers and sellers together we found that if these two ingredients are in the business that a buyer is investigating, the chances that the buyer will make an offer are very high.

If you are considering selling your business in the future make certain that a buyer can verify your income. Most buyers will walk away from a transaction if the income cannot be verified. Your First Choice Business broker can advise you in more detail as to what a buyer will need from you when you are ready to sell.

What Is Your Business Worth?

duda@fcbb.com — Thu, 20 Jul 2023 04:44:49 GMT

Discover how a Business Broker will value your business.

Working with a professional Business Broker can help to realistically price your business for sale.

Many Sellers, before meeting with a Business broker have an idea in their mind as to how much they should ask for their business.

Their CPA or their friend or their realtor may have offered suggestions. So at the time when they do meet their Business Broker and the Broker offer a suggested selling price, sellers will sometimes respond with the dollar figure that their CPA, friend or realtor thought that they should sell for.

The predicament of the business Brokers is how to and will they tell the seller that the price will be too high for their business.

Most professional business brokers will explain the reality of an overpriced business including the fact that overpriced businesses help reasonably priced businesses of the same to type to actually sell.

A business owner needs to understand that a Business Broker is valuing the business logically and realistically based upon past sales and experience whereas a seller looks at the business emotionally.

The art of valuing a business is just that, it is an art and not a science. A business sells for what a willing buyer will pay and what a willing seller will accept.

Another option is to obtain an outside valuation for a cost of about $3,000.00. Sometimes these outside valuations are theoretical and not a Market Price Analysis and may not be worth the cost.

For more information on how a business is valued, contact your First Choice Business Broker professional whose only position is listing and selling businesses full time.

What Is Analysis Paralysis?

duda@fcbb.com — Thu, 20 Jul 2023 02:03:11 GMT

How you can miss out on a “great” offering by over analyzing.

Learn why you should take a chance and make a decision.

In business brokerage, we see many potential buyers who have decided that they want to follow their dream of owning their own business. These potential buyers will ask their agent to quickly contact them when a “hot deal” comes up as they are ready to buy.

Amazingly we see six or even nine months pass with dozens of business opportunity introductions made and “hot deal” notices sent to the buyer to find this anxious buyer is stricken with “analysis paralysis”. This buyer has lost out on the potential “hot deals” to other buyers who have taken advantage of these opportunities.

What is “analysis paralysis?” Simply put, the inability to make a decision. Buyers get so caught up in the review and analysis of so many businesses that the process itself becomes their business, always wondering if the next opportunity will be a better fit or stronger business etc. Some buyers put an extraordinarily large amount of pressure on themselves to buy the “right” business that they miss out on the right opportunity due to analysis paralysis. We’ve actually heard buyers say, “Can I do this business every day for the rest of my life”? It is of course a reasonable question however this question can also make every business seem overwhelming and puts a lot of undue stress on the buyer. Yes of course you want the business buy to be as a good fit as possible however also remember if it is not the right fit you have the opportunity to sell that business and move into other ventures.

Our advice from many years of experience is for buyers to keep an open mind to different opportunities, you might be surprised about what the right business fit for you actually ends up being. Also it is important for buyers to obviously do their due diligence however those same buyers must also realize that other business buyers are also looking at the opportunities that come up and those buyers may not be stricken with “analysis paralysis”. Be ready to jump in when the right business comes along!

To Sell Or Not To Sell, That Is The Question?

duda@fcbb.com — Thu, 20 Jul 2023 01:54:16 GMT

Don’t wait until it’s too late!

Business owners are faced with a dilemma of whether they should sell and if so when is a good time?

Should business owners sell when their business is booming, when the business is declining or when they are tired and burned out?

After 24 years of selling businesses we can definitely state that the best time to sell is when the business is on an upward trend. This is the time that buyers are willing to pay the highest price. Unfortunately many business owners wait until their business is declining when they decide enough is enough and want to put their business up for sale. Buyers will not usually pay top dollar if they see the business is declining over a period of time. Sellers want to sell on potential however buyers will only pay for what they can see for income and the income trend at the time the business is available.

Your First Choice Business Broker can offer you the experiences of our 24 years of selling businesses. When the time comes to consider selling we’ll be here for you. In the meantime, keep your business running strong so the “trend” of your business in the eyes of a buyer is stable or on an upward trend. During the sale process we’ll take care of the incoming buyers and you take care of your business so you can capture the highest price for your hard earned efforts.

Ready To Quit Your Job?

duda@fcbb.com — Thu, 20 Jul 2023 01:46:08 GMT

Is now the right time for you to buy a business?

Use your 401k tax deferred plan to buy a business, learn more.

When does it make good sense to quit your job and use your retirement plan fund to buy a business?

This is a question that many employees ask themselves on a regular basis.

Here are some of the signs that it is time!

You are bored with what you are doing as there is no challenge in your work.
Your income is not at the amount you think that it should be.
Your employer is family owned so you can’t go too high up the ladder.
You are tired of relocating and want to stabilize you and your family.
You dread Monday mornings.

These are just some of the reasons to consider “retiring” and taking your 401K (tax free and penalty free) and using the money to buy an existing business.

First Choice Business Brokers receives many calls from people possibly in your position, however what does not surprise us is that the business they are considering purchasing is not related to their current work position.

Many times a person wants a business doing something that they feel they will enjoy and give them the lifestyle they desire.

Are you ready for the challenge?

Preparing For PPP Loan Forgiveness

duda@fcbb.com — Thu, 20 Jul 2023 01:07:06 GMT

Now that you have your PPP loan it's time to look at preparing for your "loan forgiveness".

Some may think of their PPP loan as "free money" however there are guidelines that must be followed in order to receive full loan forgiveness.

On May 15, the SBA released the loan forgiveness application , which left banks and small business owners confused. A week later the SBA prepared additional comments for release in an attempt to provide additional guidance however there were still many unanswered questions for some borrowers. With over $511 billion out in PPP loans and 79% of those being loans under $100,000 there are bound to be a lot of questions for hard working American's trying to keep their small businesses open.

We really appreciated Kyle Westaway's summary of the latest guidance on PPP loan forgiveness and think you will as well. This article provides information on what the bank will review in a forgiveness application and the timeline for the lender's decision on your forgiveness.

One question that has come up time and time again, is what costs are eligible for forgiveness? Below are eligibility guidelines directly from the SBA forgiveness application .

Summary of Costs Eligible for Forgiveness: Borrowers are eligible for loan forgiveness for the following costs:

1. Eligible payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811).

2. Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of: (a) covered mortgage obligations: payments of interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”); (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”). An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once. The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A.

Out Of The Bad Comes The Good

duda@fcbb.com — Thu, 20 Jul 2023 00:58:07 GMT

Big Chains Out, Small Business In!

National Association of Realtors recent study cites interesting facts regarding the re-purposing of vacant malls.

The big chains have moved from their brick and mortar stores leaving huge vacancies and headaches for mall owners and independent businesses in those malls who based their business on the foot traffic from the now gone anchor tenants. Names such as J Crew, Sears, Foot Locker, Nordstrom, Payless Shoes and many others have disappeared and with them, the loss of jobs. With these huge amounts of vacant space the malls have been selling to investment groups at unbelievably discounted prices even as low as $1 per square foot. As an example of a redeveloped mall is the Cloverleaf Mall in Richmond Virginia. In 2006 the mall was redeveloped for a multi-phased, mixed-use development anchored by a 123,600 square foot Kroger Marketplace which includes office space, restaurants, retail stores and a residential component called Chippenham Place. Some malls have even been converted to Amazon fulfillment centers and others to office buildings.

There are many other vacant malls that have repurposed their centers to bring in the small independent businesses. Yes, we are talking about the same businesses that struggled and lost business due to the now defunct chains.

NAR Reports that across the country local cities have joined in redeveloping these non-operational malls with tax incentives to bring in new tenants. Some malls have been redeveloped to include apartments and even walking/strolling paths and parks.

So, from all of today’s bad news, what is the good news? The good news is that the small business owner has returned to these now non anchored redeveloped malls and so have the jobs. Small businesses in the US provide over 60% of all employment per the Small Business Administration and create over 1.5 million jobs annually. BusinessInsider.com confirmed that at least 3,300 chain stores are closing in 2020. The bad news of the big chains closing provides a much-needed opportunity for the “mom and pop” business entrepreneurs in the US.

Since 1994, First Choice Business Brokers has been assisting buyers and sellers of small businesses. Now we see the resurgence for small business owners who may have previously lost business due to the advent of shopping malls and big chains. As we said, from the bad comes the good.

Due Diligence What Does It Mean To The Seller?

duda@fcbb.com — Thu, 20 Jul 2023 00:50:00 GMT

Seller’s preparation makes smooth due diligence

Steps for sellers to prepare for the eventual due diligence process.

The Buyer has made an offer on your business and in the Purchase Agreement it states that he needs ten days to complete his due diligence on your business, what should you as the seller do?

The buyer will want to see your financial statements and tax returns if they have not already been supplied.

Tip # 1 when you give the business listing to your Broker; try to give the last 3 years of your P&L’s, Balance Sheets and tax returns. This will not only save a lot of time and will show the Buyer that you are forthright with your documents.

The Buyer will want to validate the income and expenses that you have shown on your P&L’s so that they fully understand the income claimed on the business.

Tip # 2 it is a great idea to give a written explanation to your agent of any “add backs” so that the Buyer is not trying to guess how you arrived at your figures.

Unless the Buyer understands how you arrived at your income figures he or she will keep asking for more proof of income

Tip # 3 The more information (record keeping), that you supply to your Broker up front, the less information the Buyer will have to keep asking for. Try to provide as much documentation (Sales tax reports etc.), to your Broker. Remember depending upon the time of the year, the Buyer will want up to date financials.

Tip # 4 Try to keep your recording keeping up to date. Many deals have been lost due to the Seller not letting the Buyer know of any major changes to the Gross or Net income.

Due Diligence what does it mean to the Buyer?

Many Buyers ask for Due diligence on a business when making an offer but are not sure what this encompasses.

The Seller should be supplying the Buyer, with their income statements and possibly their tax returns.

Due diligence usually does not include any contingencies that need to be completed such as licensing, employee agreements or other such items.

Try to put a list together of the items that you want to review so that you are not constantly asking for additional items. The Seller will have been advised by the Broker that he will need to supply a buyer with certain items.

As a Buyer you do have an obligation to either review those documents supplied by the Seller or have your professional advisor review the documents. Unfortunately you cannot ask or rely on your Broker to complete your Due diligence for you.

Once you receive the documents requested, you will need to make a decision within the time period set up in the Purchase Agreement.

If you decide that you need more documentation to support the income that the Seller is claiming, try to do this as soon as possible since you have certain time constraints to obtain these documents. It is OK to ask the Seller to explain certain expenses or changes to the Sellers net income.

Finally, make certain that you fully understand the income and expenses of the business before going forward.

Once you release your Due Diligence, you are stating that you are satisfied that the figures given to you by the Seller appear to be correct and you are moving forward in the transaction.

Breaking News On Your Retirement Funds

duda@fcbb.com — Thu, 20 Jul 2023 00:36:29 GMT

SBA announces faster access to retirement funds for business purchases

Breaking News on purchasing a business with retirement funds.

If you planned on using your retirement funds for the down payment or total purchase price of a business but were put off by the extra amount of time it would take we've got GREAT NEWS!

Thursday, May 7th 2020 the SBA announced that preferred lending partners, known as PLPs, are now able to approve these transactions in-house.

What does this mean to you? No more extensive SBA wait time.

You can use your retirement funds free of taxes and penalties.
You can now utilize your retirement funds quickly and why not, it's your money!

Learn more about using your retirement funds tax free.

Add Backs: What Are They?

duda@fcbb.com — Thu, 15 Jun 2023 03:56:15 GMT

Understanding the seller’s true Net income

A deeper understanding of which seller expenses can be added back to the bottom line realistically.

The prospective buyer of an auto repair shop for sale in California noticed, while conducting Due Diligence noticed that an office assistant was listed on the payroll. But he'd visited the business as a customer and had never seen anyone working in the office.

When inquiring about this, he learned that a "salary" of $1,500 per month was being paid to the seller's sister-in-law, and that she was listed as an office assistant, but didn't actually work at the company.

That's an "add-back" and it should be included with net income the seller said.

The buyer was troubled by this discovery. Also confusing was the seller's assertion that auto expenses, such as gas and insurance charged off as business costs, should be added back to profits.

These are just two examples of the many questions and sources of confusions that can surface when trying to understand the actual costs involved with operation of a business. The confusion comes about because many, if not most sellers attempt to show as little income as possible to reduce the taxes that have to be paid. Then, when it's time to sell, the business owner has the opposite objective, wanting to show as much earnings as possible to justify the price being asked for the business.

The typical way of resolving this dilemma is for the seller to point out the costs charged to the business but not really necessary to operate.

Good examples of these expenses are the owner’s personal expenses paid through the business amongst other items.

These explanations, however, sometimes raise more questions than they answer.

When the buyer who was investigating the business looked into what the seller was saying, he learned that although there was no one physically present in the office during business hours, it was necessary to have someone handling office work. The sister in law came in on evenings or weekends to balance the company check book, verify that all parts ordered were charged against repair orders, to compare vendor statements with individual invoices, handle payroll and sales tax responsibilities and take care of related duties.

And while it was true that the seller was charging the business for his personal auto expenses, it also was the fact that the car was used for needed business activities such as picking up parts and taking customers to their home or office.

A well prepared adjusted profit and loss statement anticipates buyer questions and clearly defines what expenses on the operating statement are, and what are not necessary for efficient management of the business.

But not every seller knows how to provide that information in a way that's easy to understand. And not everyone is willing to engage in full and complete disclosure.

It's up to the careful buyer to question every item on the income and expense statement. And to ask questions such as:

- Is each itemized expense necessary in order to operate the business properly?

- Is the listed total for each item the actual expense, or is the real cost lower, or higher than what has been entered in the books?

The smart business buyer does not accept, without question, the figures listed in the P&L and financials of a company being considered, but does some investigating to learn what the figures actually represent.
Part of the Business Brokers job is to question the seller about each items to determine if the expense is a “true business expense” or is it an expense that is necessary to run the business.

A competent Business Broker will review the seller’s P & L’s and “recast” the numbers by adding back the “non-essential expenses” that were paid through the business in order to arrive at an Adjusted net income for the business.

Buyers will find that 98% of small business owners have some type of add back and should not walk away from the business if they are satisfied with the seller’s explanations of the “add backs”.

Is Your Business All About You?

duda@fcbb.com — Thu, 15 Jun 2023 03:35:20 GMT

Looking at your business through the eyes of the Buyer

Ideas to de-personalize your business and make it more desirable to Buyers.

Many sellers feel that their business should reflect their own personal touch and in some ways that may be good HOWEVER not when you are selling your business.

There are many sellers who over “customize” their business making it too much about them as business owners for a buyer to see themselves in the business. Buyers often have concern that the business is dependent on the seller and when you are trying to sell your business this will work against you.

We have even seen over the years many different scenarios that with small tweaks issues could have been avoided. For instance we had an upscale restaurant where the owners labelled each menu item with their own names, for example Mary’s Meat Loaf or Ricky’s Ribs. What happens when a buyer takes over that business? Do they keep the menu items as Mary’s Meat Loaf even though their name is Sue? If they do change the names of the menu items there is a cost for menus to be re-printed and more importantly will the customers think that the recipes are now different and they can’t order their favorite meal. It’s even a good idea to look around your business with fresh eyes. Is your business covered with personal items such as family photos or photos of your last fishing trip, or even mementos of achievements? Awards for a restaurant or business services are great but too many personal items can detract when selling.

Take a look at your business through the eyes of a buyer. You could have a very successful business that is family owned with too much personal customization. When it comes time to sell, this will scare off potential buyers because they believe that the owners are so tied in with their customers or clients that the business will lose revenue once the business changes hands.

The sellers of this particular restaurant had previously attempted to sell their business with no success. We realized when we took the listing that they were hiring us for our experience and often common sense advice. We immediately suggested that the sellers make changes to their menu to remove their names from each item. The result was that we sold the business within a very short time period. Their business was truly successful but buyers couldn’t see past all the personalization with this small change their business became much more saleable which of course resulted in happy sellers and buyers.

A potential buyer must believe that the business that is being offered is transferable without a major loss of business because of the relationship of the sellers after the transaction is completed.

As Business Brokers, we always advise business owners who are considering selling to de-personalize their business prior to the business being marketed. So how does the business owner remove personalization such as an abundance of family photos etc. without alerting everyone that they are considering selling? One method we have witnessed is that the business owner considers some “small” remodeling or painting where he or she needs to remove items.

The bottom line is that if you are considering selling your business, talk to your First Choice professional to review whether your business is not only saleable and desirable but also if your business is ready to sell from how the buyer will view it. Make sure that the buyer will not feel that your business is “All about you”.

Selling a Business During a Divorce: What You Need to Know

duda@fcbb.com — Thu, 15 Jun 2023 01:33:03 GMT

Expert insight on how to navigate the business sale process during a divorce.

Mr. Smith owns a few laundromats. He’s operated them for 15 years and has been married for 19. For the past few years, Mr. Smith has been considering selling. He spoke with a few business brokers and decided that if he moved forward, First Choice would be his preferred choice.

But now, his hand has been forced—his wife has filed for divorce. Mr. Smith must now decide whether to sell the laundromats or have them professionally valued and buy out his spouse’s half of the business.

To help both us and Mr. Smith better understand his options, we asked Las Vegas divorce attorney Rock Rocheleau for insight.

Nevada is a community property state , which means that in a divorce, all property and assets acquired during the marriage must be valued and divided equally. For a business—just like a house—this can be done either by hiring an appraiser or putting the asset on the market.

If a business broker sells the laundromats, Mr. Smith can argue that their market value is what a buyer is actually willing to pay. This often makes selling the business the most straightforward option.

But what if Mr. Smith wants to keep the laundromats?

Would you like this continued into a blog post, social caption, or video script?

How Is a Business Valued?

There are three main approaches used to determine the value of a business, particularly when the business is not being sold on the open market:

�� Market-Based Approach

This method compares the business to similar businesses that have recently sold. Just like valuing a house, an appraiser uses available data to assign a fair market value based on what other, similar businesses have sold for.

However, this method has some challenges:

It’s often difficult to find truly comparable businesses.
Sales data may be influenced by factors that aren’t publicly known, like seller motivation or one-time discounts.
The size, profitability, or location of comparable businesses may differ significantly.
Intangible assets (or lack thereof) may skew the value.
In niche industries, comparables may not exist, forcing appraisers to reference broader categories—which can either inflate or undervalue the business.

Because of these limitations, the market approach can be unreliable when dividing a community property business during divorce proceedings.

�� Asset-Based Approach

This method works best for businesses with significant tangible assets such as real estate, equipment, inventory, and accounts receivable. The appraiser calculates the value by adding up the assets and subtracting liabilities.

That sounds simple—but it often isn’t. Most businesses also have intangible assets, like goodwill, brand recognition, client contracts, or intellectual property, which this method does not consider.

For businesses like professional practices, where much of the value lies in reputation and relationships, the asset approach typically undervalues the true worth.

�� Income-Based Approach

This is the most commonly used approach for small to mid-sized businesses. It evaluates the business based on its future earning potential, using methods like discounted cash flow (DCF) and capitalization of earnings.

The appraiser looks at the business’s historical earnings, compares them to similar companies, and factors in the risk of failure or market volatility to estimate present value.

The downside? It’s a projection. It assumes future performance will resemble the past, which isn’t guaranteed. Still, it tends to be the most balanced and realistic method for businesses that generate steady income.

�� What’s Best for Mr. Smith?

Mr. Smith would benefit from hiring a valuation expert to assess his business using the income-based approach—while also working with a business broker to determine how much the laundromats could sell for on the open market.

That way, Mr. Smith can compare both results and decide which path produces the highest value—whether he sells the business or keeps it and buys out his spouse’s share.

At First Choice Business Brokers of East Tennessee and Nashville, we help owners in complex life transitions—like divorce—navigate the valuation and sale process with confidence, accuracy, and privacy.

Ready For Retirement But Not The Rocking Chair?

duda@fcbb.com — Wed, 14 Jun 2023 02:07:49 GMT

Ideas to keep your brain active after retirement

Why Life does not end with Job Retirement

As business brokers for over 24 years, we hear time and time again people wanting to retire from their corporate jobs and take on a new lease in life with business ownership. We’ve proudly been part of these life changing events and are here to help you find the perfect “next chapter business”.

After spending years working in a job, the day for retirement finally comes. Great!

Many doctors believe that a person who stops using their brain power is a great candidate for Alzheimer’s disease. The solution is very simple. The retiree should take up a hobby that requires brain power or consider owing a business. Many of the people who contact our offices are retirees who are still young and active and want to control their future.

Today, very luckily, we are living in a world where age 65 is still considered young. The life expectancy of a male in 1958 was considered to be 72. Today according to the Uniform Life Expectancy Table 2013 a 70 year old man has a life expectancy of an additional 27 years.

What does this mean? It means that it is never too late to become self-employed by owning your own business. This can give you the opportunity to look forward to enjoying your post job retirement in a new career where you dictate your success. First Choice Business Brokers has a large selection of many businesses for sale and one of these just might fit your needs.

Selling A Business During A Divorce

duda@fcbb.com — Fri, 09 Jun 2023 04:53:33 GMT

Information on the process of selling a business during a divorce from an expert.

Mr. Smith owns a few laundromats. He’s owned them for 15 years. He’s been married for 19 years. For a few years now Mr. Smith has thought about selling them. He’s contacted a couple of business brokers and decided First Choice would be his choice if he decided to sell.

His wife has filed for a divorce, which forces Mr. Smith’s hand. He now must decide to sell the laundromats or value them and purchase them from his spouse by pay for half of the value.

We asked Las Vegas divorce attorney Rock Rocheleau to help us and Mr. smith understand Mr. Smith’s options.

Nevada is a community property state. Which means during a divorce all the property and assets acquired during the marriage are valued and divided evenly. With a business, like a home, the value can be based on an appraisal or allow the home to be sold. By allowing the business to be sold by a business broker, Mr. Smith is stating the value should be what the market will pay. This makes for the easiest solution. But what if Mr. Smith wanted to keep the laundromats?

How Do You Determine the Value of a Business?

There are three main approaches used in determining the value of a business: These three approaches are used when the business is not actually being sold in the open market.

Market-Based Approach . Compares the business to other similar businesses that have sold. Using this data, a value is assigned. Similar to how a home is appraised or valued.
Asset-Based Approach . The tangible assets of the business are given a fair market value and added up. This is similar to an asset sell of a business except the goodwill of the business or customer base is not considered.
Income-Based Approach . Assesses the present value of the business based future earnings. This is the most common approach.

My first impression is it would be best for Mr. Smith to hire First Choice Business Brokers to sell the business. This way there is no guessing at what the proper value is. But Mr. Smith may want a business to continue running after the divorce. In that case, the common valuation approaches should be reviewed and the best one chosen.

Market Approach to Valuing a Business

The Market Approach uses similar methods that are used by real estate agents when they determine the value of a property. The sale price of other similar businesses that have been recently sold is compared. The evaluator then assigns a fair market value of the community property business based on the price range of similar businesses.

The problem is in finding businesses that have sold that are truly comparable. The selling price for these businesses may have been influenced by unknown factors, such as:

The motivation for the sale
Market trends
The business sold may have been discounted for some unrevealed reason, so the sale is not truly comparable.
Other comparisons may not be accurate, such as the size of the business, the number of employees, and annual profits.
Intangible assets, or the lack thereof, may have affected the sale
There may have been no such similar businesses sold, forcing the evaluator to look for a broader business niche. For example, a business that specifically sells custom mufflers for eco-friendly vehicles may have to be valuated with a broader vehicle parts market. As a result, these valuations could considerably inflate or devalue the businesses’ actual worth.

Because of all these factors, the Market Approach is far from accurate in dividing the community property business between the two spouses during a divorce.

Asset Approach to Valuing a Business

The asset approach method may work well for businesses that have value based on tangible assets like real estate, equipment, inventory, and accounts receivable. In the asset approach, an appraiser adds up all the assets and subtracts the liabilities.

Unfortunately, this is not as easy as it sounds. Most businesses have both tangible and intangible assets. An intangible asset refers to things like intellectual property, business contracts, and goodwill. The Asset Approach does not take these factors into account when assigning a value.

For professional practices whose value relies on these intangible assets, the asset approach is usually not the best valuation method.

Income Approach to Valuing a Business

The Income Approach uses different mathematical approaches based on cash flow. The evaluator reviews the history of the specific business and compares its profits to other similar businesses. Risks of failure are also considered. All these mathematical approaches convert expected future profits into a present-day value.

The downside is that the value is based on a prediction rather than the current standing value. It cannot guarantee the assigned value will match the businesses’ future value. This can leave one or both partners shorted in the long term.

For Mr. Smith he should hire an expert to value the business based on the income approach, while at the same time hiring a business broker to look at what the laundromats would sell for on the open market. This way Mr. Smith can choose which avenue produces the most money for him and his wife to split.

How Do I Cut Business Expenses During Covid?

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Cutting costs by reviewing expenses can help you through these tough times.

We all know that every dollar counts especially during this crisis.

While some business owners are applying for PPP loans savvy business owners are also evaluating where every $ is spent.

Now is a great time to examine all your business expenses. One of those expenses is your credit card processing rates and fees.

Now more than ever, every business owner is taking credit cards as their main form of payment for touch-less, non-contact service. We found a credit card processing bank that is offering free reviews of credit card processing rates and fees. If they can't beat your current rates and fees, they will pay you $1,000*. Who couldn't use an extra $1,000 right now? U.S. Bank Payment Solutions says they are confident that they can beat most rates because they are a direct servicer, no middleman to pay. We also found they don't even require you to have a bank account with their bank.

Some other expenses to consider reviewing are insurance premiums, security services and payroll services. Many business service providers are offering some of their regularly priced services at no cost or deeply discounted, you just need to ask.

First Choice Business Brokers is helping business owners arrange for their credit card processing rate and fee reviews at no cost.

We want to help you save every $ you can!

*Meet or Beat terms and conditions may apply.

There is no obligation, you have nothing to lose by having a review of your current credit card processing service rates and fees.

Today’s HOT Small Business Sales Market!

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Economy makes buying a reality

Record high sales reported by BizBuySell national website

The Market is Hot: Retiring Baby Boomers and Rising Revenues Fuel Record Small Business Sales

BizBuySell.com's Second Quarter 2018 Insight Report examines the transactions and demographics behind the record levels of small businesses changing hands

San Francisco, CA - BizBuySell.com , the Internet's largest business-for-sale marketplace, reported today a record number of small businesses changing hands in the first half of 2018. The growth can largely be attributed to a growing number of Baby Boomers exiting their business as well as improving business financials. The full results are included in BizBuySell's Q2 2018 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

A total of 5,383 businesses were reported sold in the first two quarters of 2018, putting the year on pace to surpass 2017's record-high of 9,919 transactions. In Q2 alone, 2,705 businesses changed hands, an increase of 6.7 percent over the same time last year and the most of any quarter since BizBuySell began tracking data in 2007.

Helpful tidbits to help business owners

Creating a Budget for Your Small Business

Creating a Google Ads Campaign That Delivers Result

Crafting a Unique Value Proposition: Why It Matters and How to Get It Right

What Is a Value Proposition, Really?

Why It’s Crucial in the Acquisition Process

How to Craft a Strong Value Proposition

1. Clarity

2. Specificity

3. Differentiation

Questions to Help You Discover Yours

Final Thoughts

Content Marketing Strategies That Actually Work

1. Know Your Audience

2. Be Helpful, Not Just Loud

3. Mix Your Formats

4. Stay Consistent

5. Always Include a Next Step

Conflict Resolution in the Workplace

What Do Business Brokers Do? A Guide for Nashville Business Owners and Buyers

What Is a Business Broker?

Services Business Brokers Provide in Nashville

Business Valuation

Listing and Marketing Your Business

Buyer Qualification and Matchmaking

Negotiation and Offer Management

Transactional Guidance and Confidentiality

Why Work with Nashville Business Brokers?

Who We Help

FREQUENTLY ASKED QUESTION

Conducting market research

Choosing the right domain name

Challenges and opportunities in the post-COVID world

Buying an existing business

Building a strong company culture

Building a professional business website

Business transfer fees and costs

Business broker vs. DIY sale Pros and cons

Attracting strategic buyers for your business

To Franchise Or Not To Franchise?

On the surface, the idea of buying into a franchise makes sense, but is franchising the way to go?

The Benefits

The Disadvantages

Small Business, Big Impact

Small businesses have a big impact on the communities they serve.

The Economic Impact

Community Identity

Social Connections

Small Business Statistics

Proceeding With Caution: Buyer Red Flags

Selling a business means sorting through multiple offers.

Understanding Your Future Business’s Finances

One of the most important things that you can do as a buyer is to assess the financial health of any business on your radar.

Assessing Financial Documents

Analyzing Metrics

Trends And Benchmarks

More Than The Numbers

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Forecasting Growth Crucial Before Listing

Forecasting growth is a crucial part of running a small business.

Reasons Forecasting Matters

Showing Growth

Is It Possible To Sell A Struggling Business?

In a word, yes.

It Starts With A Valuation

Transparency Is Key

Know Your Buyers

Pricing Is Priceless

Why Would A Seller Sell A Profitable Business?

Smart Seller Exit Planning Strategies

Discover the reasons that a seller would sell what appears to be a great profitable business.

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What Is Your Business Worth?

Discover how a Business Broker will value your business.

Working with a professional Business Broker can help to realistically price your business for sale.

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What Is Analysis Paralysis?

How you can miss out on a “great” offering by over analyzing.

Learn why you should take a chance and make a decision.

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Seek Professional Help

Is now the right time for you to buy a business?