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ATB -Read Did you Know?

ATB -Read Did you Know? . Most business brokers work on commission. They typically earn between 10 and 12 % of the sale price of the business. Chapter 2 Lesson 2.1. Select a Form of Ownership. Vocabulary. Business Broker-a person who sells businesses for a living.

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ATB -Read Did you Know?

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  1. ATB-ReadDid you Know? • Most business brokers work on commission. They typically earn between 10 and 12 % of the sale price of the business.

  2. Chapter 2Lesson 2.1 Select a Form of Ownership

  3. Vocabulary • Business Broker-a person who sells businesses for a living

  4. Choose an Existing Business Advantages: • Already has customers, suppliers and procedures • The seller can train the new owner • There are prior records of revenues, expenses and profits • Financial arrangements can be easier

  5. Choose an Existing Business Disadvantages: • Many businesses are for sale because they are not making a profit • Serious problems may be inherited • Capital is required

  6. Steps to Purchase a Business • Write specific objectives about the kind of business you want to buy • Meet business sellers or brokers to investigate specific opportunities • Visit during business hours to observe the company in action • Ask the owner to provide you with a complete financial accounting of operations for at least the past three years

  7. Steps to Purchase a Business (con’t) • Ask for important information in written form • Determine how you would finance the business • Get expert help to determine a price to offer for the business

  8. Enter a Family Business • Advantages • Enjoy the pride and sense of mission that comes with being part of a family enterprise • Disadvantages • Family members don’t always have the ability to run a business • Family politics

  9. Make Connections • You purchased a company that makes and sells fine chocolates. You have a staff of 20 employees. As the new owner, you have noticed a lot of wasted product. You believe that some of the processes in use should be more efficient. Plan a meeting you will have with your employees to discuss this issue. Outline the agenda, and describe your plan.

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