Have you started a successful business in the past year? What have been the keys to success, and what led you to choose that particular business? Do you have first hand knowledge of businesses failing in the categories included in the piece?
Set financial goals:
Set financial goals:
"You cannot sell a business that is not making money,"
explains O'Berry. "Also, how do you know if you're
growing if you don't know where you started and where
you're going?"
Once you've set some target goals, measure them on a
regular basis. Look at the internal processes of your
business and make sure it's still working for customers
and company alike. You may be pleasing customers, but
are you making money?
Know what your return on investment is, so you
can explain it to those interested in buying your
company.Write down the business processes
"You can't sell a business that is in your head," claims
O'Berry.
"You need to write it down."
Entrepreneurs don't typically like fussing with the fine
points, but you must document how everything works in
your organization.
For example, spell out the roles of management and employees, not titles, but their actual responsibilities. Or describe a typical customer visit. Franchise companies
Why? Well each avenue has
its own set of pitfalls. For example, restaurants close
at a rate of 60% in the first three years, while with
consulting it’s sometimes difficult to earn steady
income. High end shops are suffering as people’s
discretionary income continues to dwindle down in a
tough economy.
If you're a typical small business owner, you spend more of your time working on today's issues rather than tomorrow's potential. That may keep the doors open for now, but what about when you're ready to retire, or no longer have the will or energy to run your business? "As mid to large businesses grow owners typically realize they'll need to find a way out," explains Denise O'Berry, president of the Tampa, Florida-based business consulting firm, Small Business Edge. "But most small business owners do not have an exit strategy same tactics to show the value of their company to a potential buyer.
It is often said that the best time to start a new business is in a recession, and some data has shown that through a variety of factors, new businesses are more likely to start during tough economic times. So naturally one might think that during the worst financial crisis in decades would be a prime time to start a business you always wanted, right? The answer may depend on what you have in mind for a business.
Some of the businesses you might think about starting are
the ones that you shouldn’t, including franchise ownership,
restaurants, independent consulting, and high end retail,
according to the piece.
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