Buying a Business from Three Profitable Industries

Buying a Business from Three Profitable Industries

Buying a business, or starting a small business, with robust growth potential remains a goal for many people. Being your own boss offers a sense of freedom that cannot be found elsewhere. However, before buying a business, you need to understand which of today’s small business industries are the most profitable and popular; as well as, which should currently be avoided for now. The following information is designed to provide further insight, which may help determine how you should proceed with your investment. In today’s online world of marketing, there are 3 small business industries that are leading the way in profitablity and popularity…

Mobile Businesses

When looking at a small business for sale, consider a mobile business, or one that allows you to travel or deliver directly to your customers. Life is busy for many people, and a product or service that comes to them is highly valued. Today’s most popular mobile businesses include auto repair services, pet grooming services, and grocery or food delivery, among many others. The options are truly endless for buying a business in this industry; moreover, mobile businesses don’t require a brick-and-mortar location, just a vehicle. This allows you as the business owner to keep more of the profits.

Accounting Services

Accountants remain in high demand, as they provide a wide range of services. Consider offering bookkeeping or payroll services to other small businesses, or provide tax prep. With so many options available, you can choose to specialize or offer a vast array of vital services, depending on personal preferences. This consistently popular industry offers a profit margin of more than 18 percent.

Online Education

People love to learn new things, and everyone has a skill they can market. When an entrepreneur finds a way to connect with those who wish to learn a skill that can be taught, that entrepreneur becomes successful in a short period of time. It’s a matter of finding the right platform for the course, and developing the materials. Once you do this, there is no limit to how many people can take advantage of the course, and no money being invested for each unit sold. The key to being successful lies in consistently marketing to your target audience to attract new students.

Del Lingco International Can Help

These are only three of many highly profitable and popular industries that you, as a buyer and investor, can research. Should you require additional help in determining which business is best for you, turn to Del Lingco International. As a seasoned business brokerage firm serving Houston for over 50 years, we’ve continued to help business owners and investors work through buying a business that’s the right fit, including valuing an established business to ensure the asking price is fair. Connect with us today for assistance by calling 713-783-5800.

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The SBA Loan Approval Process and Time Frames

The SBA Loan Approval Process and Time Frames

  • Posted: Jun 06, 2017
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The SBA Loan Approval Process and Time Frames “It’s not your parents’ SBA!” The U.S. Small Business Administration has been supporting small business owners in the United States since its inception in 1953. Its lead program, the SBA 7(a) government-guaranteed loan program, is one that has evolved into a very efficient and consistent process for loan approvals among participating SBA lenders. The most important factor to understand is that the SBA loan approval process is now a very refined template for underwriting the loan risk and loan approval decision. That means the SBA 7(a) loan approval process and time frames can now be the same, if not more efficient, than conventional bank or nonbank small business financing.
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Qualities of a Great Houston Business Broker

Qualities of a Great Houston Business Broker

Whether a person is selling or buying a small business, they will ultimately find a Houston business broker to be a vital partner in their quest. The key to success, however, lies in finding a Houston business broker with the right qualities, and this is the area in which many business owners struggle. Below are some qualities you should look for when working to sell or acquire a business.

#1 Networking & Professional Connections

First, a great business broker should have a large database network to draw on. This network will consist of industry organizations, networking groups, the Better Business Bureau, the local chamber of commerce, professional broker associations, and more. The more people he or she interacts with regularly, the more opportunities a broker will have to market your business to potential buyers and/or sellers.

#2 Professional Expertise & Strategy

Great business brokers will possess the professional skills to develop, implement, and follow through on effective marketing plans and strategies based on the prospective target audience, regardless of your industry. However, another advantage would be to find a broker who only specializes in your business industry. Before putting your business on the market, experienced brokers will make sure your paperwork, assets, and legal issues are resolved and properly prepared for sell. They will be willing to share what marketing tools will be used, and why they are most effective. Ultimately, knowledgeable brokers will create realistic plans to connect to companies and prospective buyers looking to invest in the market; or do thorough research on businesses to help potential buyers before a sale.

#3 An Exceptional Financial Record

Find a broker with a solid financial record. He or she will be willing to show their record of sale and how many businesses they’ve assisted resulting in closure. Realtors are fine for people who are simply looking to buy the most attractive real estate for their company. However, a business broker who understands the intricacies of buying or selling your business, and can provide information about the short and long-term chances of the business, is much better for success in this situation. He or she conveys the benefits of buying the business to prospective buyers, and emphasizes the strong points on behalf of the seller. Many realtors may not go this far into detail when working with clients interested in commercial real estate.

Connect with Del Lingco International to learn more about the benefits of working with a Houston business broker, and why this is significant when buying or selling a business. We will be happy to put our nearly 60 years of experience to work for you, and address any questions or concerns you may have. Your success is our success!

Call us at 713.783.5800, or connect online at Del Lingco International.

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Selling Your Business Works Best When It Looks GOOD

Selling Your Business Works Best When It Looks GOOD

If you’re selling your business, like most business owners, you want the property to sell quickly and for as much as possible. This is partially controlled by the economy, the business broker’s experience, and the profitability of the business. However, more than most people may think, a lot is also surprisingly determined by the “look’ of the business. Things to consider are: outside features and curb appeal, building maintenance and upkeep, cleanliness, organization, and odors. There is more buyer interest when you’ve taken the time to prepare the building for the sale. Below are a few tips for increasing property appeal when selling your business.

Inspect the Outside

All buyers and investors will see the exterior first. Make sure the lights are working, cobwebs and other debris are removed, and the landscape is well-maintained. Have the exterior areas power-washed if the parking lot has grease spots, or if the building looks a bit shabby. Ultimately, you want curb appeal in order to attract customers.

Eliminate the Extras

De-clutter the entire building. Shred unneeded files, recycle unused electronics, and dispose of broken furniture. Eliminating clutter makes rooms look bigger, instantly cleaner, and more organized.

Sanitize It Up

Spend extra time cleaning (or hire a cleaning service) to make all bathrooms and any kitchen or break areas spotless. These are prime areas for bacteria and odor buildup, and buyers prefer them to sparkle.

Spread Some Paint PLUS

Add a fresh coat of paint where necessary. Repair or replace any bad ceiling tiles, damaged flooring, or missing trim. Now is the time to handle all or any previously ignored maintenance tasks.

Keep it Fresh

Be attentive to odors, keeping the building fresh and pleasant smelling. Cleaning will remove many smells, but new ones can emerge. Use a small air purifier in entrances and deodorizers in break rooms where lunch smells can linger. If possible, open the windows for an hour or two prior to any showings to freshen the air.

Set the Stage

Hire a professional to stage the building when you have a business for sale. They can assist with making the property look more appealing and professional even if the building is in use. Allow them to add artwork, set up comfortable reception areas, or do whatever they feel will provide a more immediate visual impact. Be mindful of not making additional messes while selling your business. Hire a cleaning staff to keep everything dust-free, emptying wastebaskets, and keeping floors spotless. Professional photos will be taken when the property is looking its best.

Need help selling your business? Our professional brokers of Del Lingco International have decades of experience doing just that! We help ensure that your business looks GOOD and appealing to prospective buyers by providing tips and insight on keeping your property in pristine condition whether there’s a showing or not! Contact us today at 713-783-5800.

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Difference Between a Business Acquisition & Merger

Difference Between a Business Acquisition & Merger

People often use the terms business acquisition and merger interchangeably, yet they are two separate types of transactions. If two businesses are joining forces, it’s a merger; however, if one business is buying another, it’s an acquisition. The reason many companies talk of a merger as opposed to an acquisition is because acquisitions can sometimes be viewed with negative connotations. For years, media and movies have often used the acquisition term to portray a hostile takeover, which unfortunately can cause the public and business industry to have misconceptions. Mergers, in contrast, tend to be seen in a more positive light. What other things do consumers and entrepreneurs need to understand about business acquisitions and mergers?

Acquisitions

Acquisitions occur when one company steps in and buys out another company. In this situation, the company being purchased will no longer exist, and any assets owned will be absorbed by the purchasing company. The company purchaser also assumes all aspects and traded stocks of the purchased company. There can be several reasons an acquisition takes place, and not all are bad. Most take place when a company or small business is in trouble or distress. Sometimes a parent company or related industry business will acquire a business that has a large division that is no longer relevant but will purchase it to form a new business. In other cases, a successful small business may be expanding and will acquire another business within the industry that may not be performing well. For many acquisitions, the purchasing company or investor is viewed as a “Savior” to the struggling business, and employees of that business may not have to lose their jobs in many cases.

 

Mergers

Mergers take place when two businesses combine resources to form a new and better entity. In most cases, the two organizations being joined are of equivalent size and industry, thus often referred to as a merger of equals. The stock of each independent company must be surrendered during a merger, and stock in the newly formed company will then be issued. Often, companies choose to call a transaction a merger even when it is an acquisition, as the company purchasing a business doesn’t want the public to form negative connotations surrounding the transaction.

If your company is looking to buy or sell a business, consider consulting with the professional business brokers of Del Lingco International. Since 1958, we’ve assisted business owners in negotiating win-win deals to help them buy, sell, or consolidate businesses and receive a return on investment.

To learn more about Del Lingco, or to get started, give us a call today at 713-783-5800.

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Working with a Houston Business Broker

Working with a Houston Business Broker

  • Posted: Apr 05, 2017
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Buying or selling a business is a significant event; and if you live in southeast Texas, hiring an experienced Houston business broker is key to a successful outcome. With all the excitement and anticipation of buying or selling a business, there is also a lot of hard work required. Continue reading

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Sticking a Toe (or Two) in the Exit Planning Pool

Sticking a Toe (or Two) in the Exit Planning Pool

  • Posted: Mar 21, 2017
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In this issue, we attempt to dismantle the most common objections owners have to undertaking the planning necessary to exit their companies successfully. Excuses to avoid Exit Planning include the following:

  1. The business isn’t worth enough to meet my financial needs. When it is, I’ll think about leaving.
  2. I will be required to work for a new owner for years.
  3. I don’t need to plan. When the business is ready, a buyer will find me.
  4. This business is my life! I can’t imagine my life without it!

 

Assuming we are successful in persuading you that Exit Planning not only helps your business while you are in it but also is the best way to leave the company to the successor you choose, on the date you choose, and for the amount of cash you want, you might ask, “How do I, as an owner, jump into Exit Planning?”

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Small Business Through U.S. History

Small Business Through U.S. History

  • Posted: Mar 06, 2017
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While today’s entrepreneurs often hear how important small businesses are today, business brokers and other business professionals would say that isn’t really anything new. Throughout the nation’s history, small business owners have been the backbone of the country’s economy. Continue reading

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Best Ideas for Selling Your Business

Best Ideas for Selling Your Business

  • Posted: Feb 17, 2017
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Selling a business quickly to turn over a profit is usually what venture capitalists are uniquely able to do well. Yet for most business owners, they’ve worked hard for many years to build their business, and when it comes to selling it, that’s an entirely different animal. Continue reading

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