When we think about going into business for ourselves usually we are thinking about starting from scratch. We may have a special product in mind, or perhaps a unique service. But sometimes an opportunity comes along where an existing business is for sale, and the chance is hard to pass up.
When you buy an established business you don’t have to spend a lot of time with start-up activities, such as getting equipment, acquiring the various licenses, etc.; there is a considerable amount of savings in time and energy. You will also have immediate cash flow because the business already has inventory, receivables, and clients. In addition, you will have goodwill and name recognition, and this will probably make it easier to obtain financing.
But one serious disadvantage is the cost of acquisition. You may have to come up with a large amount of money because the previous owner has already done the basic work. He or she has already bought the equipment, developed the business concept, acquired licenses and permits, developed a customer base, hired and trained employees. You may also get unexpected baggage. Perhaps the equipment is old, or there are ornery employees that have nowhere else to go. It is also possible that instead of goodwill, you are getting a bad reputation attached to the business, and it may be difficult to overcome. Another issue to consider, depending on the type of business, is environmental problems that can be costly to resolve.
There is much to think about, and significant matter on both sides, so weigh the pros and cons very carefully before you decide to acquire an existing business.
Wednesday, November 28, 2007
Friday, November 23, 2007
Tip of the Day: Gifts to Thank Your Clients
This is the time of the year to thank your clients and referral sources with a holiday gift. It can be treacherous road, since you may not know that your client suffers from diabetes or high cholesterol when you proudly deliver that yummy cake. And that bottle of wine may be wasted on someone who just gave up drinking. So what is a business owner to do? Here are a few ideas beyond calendars and pens.
Why not give a flash (or USB) drive or a staple-less stapler. These are items that your client will use every day. Other items that may be appreciated and a bit out of the ordinary are back massagers and lip balms.
My personal favorite is books, and for this you need to know a little bit about the recipient. If your client likes mystery novels, give him or her the latest Sue Grafton. Also, there are many beautiful coffee table books on the sale tables at your local book store, find one that appeals to your client. For example, I have a client who took a trip to India. She was absolutely captivated by the country, and she cannot stop tell you about her great experience. I have found a lovely book about India that I plan to give her, and I know that this gift will not add inches to her waist!
If you do not know your clients’ tastes, but you like the idea of giving books, you can give those that reflect your industry, or the region where your business is located.
Why not give a flash (or USB) drive or a staple-less stapler. These are items that your client will use every day. Other items that may be appreciated and a bit out of the ordinary are back massagers and lip balms.
My personal favorite is books, and for this you need to know a little bit about the recipient. If your client likes mystery novels, give him or her the latest Sue Grafton. Also, there are many beautiful coffee table books on the sale tables at your local book store, find one that appeals to your client. For example, I have a client who took a trip to India. She was absolutely captivated by the country, and she cannot stop tell you about her great experience. I have found a lovely book about India that I plan to give her, and I know that this gift will not add inches to her waist!
If you do not know your clients’ tastes, but you like the idea of giving books, you can give those that reflect your industry, or the region where your business is located.
Wednesday, November 21, 2007
Giving Thanks
Tomorrow is Thanksgiving Day in the United States. A great thing about this holiday is that it compels us to take a good look at our lives and see the things that we should be thankful for.
Perhaps you were watching television this weekend, as I was, and maybe you saw interviews with celebrities, where they were asked what they were grateful for. Maybe you heard the standard answer, “I am grateful for my family”. Perhaps you were groaning as you heard them, and you wished that they would come up with something a little more creative.
But I find that, in my case, though I wish I could be more creative, indeed it is true; more than anything, I am grateful for my family, and for very selfish reasons. It is my family who has made me who I am. In my early years my parents and siblings taught me how to live a good life. They instilled a sense of fairness. They also taught me that life is infinitely varied and interesting, and it is all there for us to enjoy. As Rosalind Russell said in the movie Auntie Mame, life is a banquet (though alas she followed up with “and most poor suckers are starving to death”)
This view of life is such a gift to me because it has allowed me to try new things just because they are intriguing and might be enjoyable. I learn about something interesting and I want to take a crack at it, and why not? There is no Don’t Dream police that is going to tell me I cannot do it (And if there is such a police, I will ignore it!) If it doesn’t work out, well then, I have learned new things in my attempt, and that is wonderful because it will lead me down other exciting roads.
My parents are now gone, and so is my beloved brother, who passed away this summer, but my two sisters, my dear husband, my daughter, my son, and my son-in-law, and also my granddaughters and siblings-in-law, continue to give me their love and support. The whole lot is always there for me, cheering me on, telling me to go for it. Without them I would not be who I am, and I would not feel so free to try new things.
I know there have been people like that in your life; those who have given you support and freedom to attempt new things. Probably they have been members of your family, though maybe not. Perhaps it was a neighbor, or your first boss. In any case, be thankful for them; and if you have the opportunity, thank them in person. You would not be a business owners, or an aspiring business owners, if someone had not taken the time to teach you about exploring the world, taking risks, being willing to share with others. This is the nature of a business owner, and that is what a business owner does every day. Sometimes it feels like the weight of the world, but mostly it is a great gift to be enjoyed, so lets say thank you.
Have a very happy Thanksgiving Day.
Perhaps you were watching television this weekend, as I was, and maybe you saw interviews with celebrities, where they were asked what they were grateful for. Maybe you heard the standard answer, “I am grateful for my family”. Perhaps you were groaning as you heard them, and you wished that they would come up with something a little more creative.
But I find that, in my case, though I wish I could be more creative, indeed it is true; more than anything, I am grateful for my family, and for very selfish reasons. It is my family who has made me who I am. In my early years my parents and siblings taught me how to live a good life. They instilled a sense of fairness. They also taught me that life is infinitely varied and interesting, and it is all there for us to enjoy. As Rosalind Russell said in the movie Auntie Mame, life is a banquet (though alas she followed up with “and most poor suckers are starving to death”)
This view of life is such a gift to me because it has allowed me to try new things just because they are intriguing and might be enjoyable. I learn about something interesting and I want to take a crack at it, and why not? There is no Don’t Dream police that is going to tell me I cannot do it (And if there is such a police, I will ignore it!) If it doesn’t work out, well then, I have learned new things in my attempt, and that is wonderful because it will lead me down other exciting roads.
My parents are now gone, and so is my beloved brother, who passed away this summer, but my two sisters, my dear husband, my daughter, my son, and my son-in-law, and also my granddaughters and siblings-in-law, continue to give me their love and support. The whole lot is always there for me, cheering me on, telling me to go for it. Without them I would not be who I am, and I would not feel so free to try new things.
I know there have been people like that in your life; those who have given you support and freedom to attempt new things. Probably they have been members of your family, though maybe not. Perhaps it was a neighbor, or your first boss. In any case, be thankful for them; and if you have the opportunity, thank them in person. You would not be a business owners, or an aspiring business owners, if someone had not taken the time to teach you about exploring the world, taking risks, being willing to share with others. This is the nature of a business owner, and that is what a business owner does every day. Sometimes it feels like the weight of the world, but mostly it is a great gift to be enjoyed, so lets say thank you.
Have a very happy Thanksgiving Day.
Tuesday, November 20, 2007
Between Dream and Reality
We are cruising along, living perfectly ordinary lives, and suddenly an idea comes into our mind. At the beginning is seems absolutely crazy. “How can I possibly turn this idea into a profitable business?” We begin to dream about the business, selling your jewelry to Saks, writing the great American novel, or becoming a lawyer. And it is our little secret, that outrageous dream that no one but us has to know about. We take it out and dust it off for our own amusement. We think about it when we are cleaning the kitchen floor. But deep down we know that it will probably never happen. It is too scary; it may even be silly!
And do you know something? We are probably right, it will never happen. Not because it is too difficult, scary, and silly, but because as long as we don’t talk about it out loud, it is easy to avoid turning the dream into reality.
So how do we overcome that block; how do we shush that little voice that tells us it is a crazy idea? More specifically, how do you turn the dream into reality? The first step is to say it to yourself, use your most authoritative voice to tell yourself “I am going to start writing right now”. Be convincing, because you are the person that needs convincing the most. Don’t tell yourself that it is possible; tell yourself that it will happen.
Next, tell those closest to you. Here it will probably not be necessary to be quite so authoritative because they almost certainly believe in you already. Maybe they have been waiting for years to hear you say the magic words. Then, tell the world. Be matter of fact, ‘I am a writer”. No need to be defensive, or to go into a long explanation explain, just say it.
Why the talking exercises? Because once you say it out loud you commit yourself to actually doing it. It becomes real.
That is how I talked myself into becoming a lawyer. When my daughter graduated from college I decided that it was my time to go back to school. I knew that if anything happened to my husband, I had few skills that would get me a job that paid above the minimum wage.
I was taking a class in which we had to write about what I call “what do you want to be when you grow up”. At 48 years of age, it was a bit late to be thinking about this, but an assignment is an assignment, and I was going to give it my best shot. I wrote about becoming a court interpreter because I was fluent in English and Spanish, and I had always been interested in the law. I had grown up in a small town in Mexico, at a time when girls did not think about being lawyers. Girls were going to grow up to be mommies, not attorneys. And most certainly I wanted to be a mommy, but deep down I had also wished that things had been different for women of my age.
A few days latter the professor called me in for a chat. Her name is Glenda McGee, a great lady; and she told me that no, I was not too old to be a lawyer, and if I really wanted to do it, I could. At first it sounded silly, but the more I thought about it the more intrigued I became. Still, I wasn’t about to make a fool of myself by telling others what the professor had said to me.
Well, it took me a while to begin to say it to myself out loud. The sound of my voice saying “I am going to be a lawyer” was a bit shocking, but also affirming. After I convinced myself, or perhaps I just got used to hearing the words, I decided to tell my husband about what the professor had said. He looked at me, and with assurance that I did not feel he said, “of course you are not too old to become a lawyer”. And it was still silly, also scary and crazy, but someone who I respected very much had supported me, and I had to believe. After that, I just told everyone in a natural way, “I am going to law school”.
By telling others and myself I made a commitment to taking the necessary steps to reaching the goal. If I had kept it as my deep dark secret, I could always back out. But once I told everyone, I could not go back on my word.
Seven years later, I graduated from law school. That summer I took the California bar exam and passed on the first attempt. In December of 2002 I was sworn in as an attorney at the age of 55. I still have the posters that my daughter and son made for my graduation. One of them says, “Mom shows it is never too late to dream”.
The telling became the first step in turning the dream into reality. So don’t be afraid, tell yourself and then the world “ I will do it”.
Dream Big
And do you know something? We are probably right, it will never happen. Not because it is too difficult, scary, and silly, but because as long as we don’t talk about it out loud, it is easy to avoid turning the dream into reality.
So how do we overcome that block; how do we shush that little voice that tells us it is a crazy idea? More specifically, how do you turn the dream into reality? The first step is to say it to yourself, use your most authoritative voice to tell yourself “I am going to start writing right now”. Be convincing, because you are the person that needs convincing the most. Don’t tell yourself that it is possible; tell yourself that it will happen.
Next, tell those closest to you. Here it will probably not be necessary to be quite so authoritative because they almost certainly believe in you already. Maybe they have been waiting for years to hear you say the magic words. Then, tell the world. Be matter of fact, ‘I am a writer”. No need to be defensive, or to go into a long explanation explain, just say it.
Why the talking exercises? Because once you say it out loud you commit yourself to actually doing it. It becomes real.
That is how I talked myself into becoming a lawyer. When my daughter graduated from college I decided that it was my time to go back to school. I knew that if anything happened to my husband, I had few skills that would get me a job that paid above the minimum wage.
I was taking a class in which we had to write about what I call “what do you want to be when you grow up”. At 48 years of age, it was a bit late to be thinking about this, but an assignment is an assignment, and I was going to give it my best shot. I wrote about becoming a court interpreter because I was fluent in English and Spanish, and I had always been interested in the law. I had grown up in a small town in Mexico, at a time when girls did not think about being lawyers. Girls were going to grow up to be mommies, not attorneys. And most certainly I wanted to be a mommy, but deep down I had also wished that things had been different for women of my age.
A few days latter the professor called me in for a chat. Her name is Glenda McGee, a great lady; and she told me that no, I was not too old to be a lawyer, and if I really wanted to do it, I could. At first it sounded silly, but the more I thought about it the more intrigued I became. Still, I wasn’t about to make a fool of myself by telling others what the professor had said to me.
Well, it took me a while to begin to say it to myself out loud. The sound of my voice saying “I am going to be a lawyer” was a bit shocking, but also affirming. After I convinced myself, or perhaps I just got used to hearing the words, I decided to tell my husband about what the professor had said. He looked at me, and with assurance that I did not feel he said, “of course you are not too old to become a lawyer”. And it was still silly, also scary and crazy, but someone who I respected very much had supported me, and I had to believe. After that, I just told everyone in a natural way, “I am going to law school”.
By telling others and myself I made a commitment to taking the necessary steps to reaching the goal. If I had kept it as my deep dark secret, I could always back out. But once I told everyone, I could not go back on my word.
Seven years later, I graduated from law school. That summer I took the California bar exam and passed on the first attempt. In December of 2002 I was sworn in as an attorney at the age of 55. I still have the posters that my daughter and son made for my graduation. One of them says, “Mom shows it is never too late to dream”.
The telling became the first step in turning the dream into reality. So don’t be afraid, tell yourself and then the world “ I will do it”.
Dream Big
Sunday, November 18, 2007
Focus on Your Core Business
The temptation to add products or services to your core business can be great. It can come from your own expectations about what a business such as yours “should” be like; or it can come from your clients, who may be pushing you to fill their every need.
When I first started my law practice, and even today, there was great pressure to be all things to all people. The main reason is that I am one of the few attorneys in our area who is fluent in Spanish. I soon realized that as a solo practitioner I could not help everyone, no matter how meritorious the case.
I knew that I would be doing a disservice to my clients and to myself if I took on every case that comes through my door. I cannot possibly be proficient in every area of the law, so my clients would suffer by not having the best attorney for their case. By the same token, I cannot take every case and keep my sanity.
I how do you choose? You probably came into the business with a strong idea about what your main products or services would be. And this is the case because you are probably quite passionate about those products or services. It doesn’t mean that you should keep your eyes and ears closed to new opportunities. But I am sure that you will come to the same conclusion that I did. The type of case that is most enjoyable, and the one that is the most profitable, should be the focus of the business. No, I am not a genius for having come up with this nugget, but sometimes we get overwhelmed and forget to be practical.
When I first started my law practice, and even today, there was great pressure to be all things to all people. The main reason is that I am one of the few attorneys in our area who is fluent in Spanish. I soon realized that as a solo practitioner I could not help everyone, no matter how meritorious the case.
I knew that I would be doing a disservice to my clients and to myself if I took on every case that comes through my door. I cannot possibly be proficient in every area of the law, so my clients would suffer by not having the best attorney for their case. By the same token, I cannot take every case and keep my sanity.
I how do you choose? You probably came into the business with a strong idea about what your main products or services would be. And this is the case because you are probably quite passionate about those products or services. It doesn’t mean that you should keep your eyes and ears closed to new opportunities. But I am sure that you will come to the same conclusion that I did. The type of case that is most enjoyable, and the one that is the most profitable, should be the focus of the business. No, I am not a genius for having come up with this nugget, but sometimes we get overwhelmed and forget to be practical.
Friday, November 16, 2007
Tip of the Day: Don’t Sabotage Your Marketing Efforts
When it comes to marketing, do what feels comfortable to you and what fits your personality. If you are shy, don’t participate in a huge networking event; instead, stick to one on one networking such as a coffee or luncheon appointment. If the idea of public speaking makes you break out in a cold sweat, don’t offer to give a presentation to the local Rotary Club, the discomfort will show through. As an alternative, if you like to write, offer to write an article for the Club’s newsletter, or a local newspaper. Pick the method that will be most effective for you. Don’t sabotage your marketing efforts by trying to be someone you are not. Marketing should be a daily activity in your business, so make it an enjoyable one.
Thursday, November 15, 2007
Tip of the Day: Why Should Your Customer Believe You?
As a business owner you believe that you offer a terrific product, and you probably think that your potential customers will also believe that you offer a wonderful product because your mother and your compadre believe you do. But it isn’t enough to say that you have the best vanilla ice cream in the county; tell them why it is so. Explain that your vanilla ice cream is made with the freshest milk and cream, that the milk comes from California cows; and as everyone knows from the ad, they are the happiest cows in the world! Tell your customer that you use the finest vanilla beans that Madagascar has ever grown. Explain how you manufacture your ice cream, the care that you take with each ingredient and each step of the process. In other words, explain, explain, explain why your product is the best. Give your customer a reason to believe, and to buy.
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