- Market Directly to the Consumer
- Party Plan
- Direct Mail
- Telemarketing
- Multilevel Marketing
- Television Infomercials
- Pay-Per-Call
- Internet
- Market Through the Government
- Market Through Distribution Channels
- Market Through Foreign Trade
- Market Through Specialty Channels
- Market Through Email
- Retail Stores
- Sales Promotion
- Media Outlets
- Entrepreneur Profile
- Start-Up Costs
- Operating Costs
- 20 Financing Approaches
- Choosing a Bank
- 4 Cs of Credit
- Underwriting
- Loans
- Equity Financing
- Extending Credit
- Equipment Leasing
- Venture Capital
- Angel Investors
- Personal Guarantees
- Bookkeeping and Financial Statements
- Entrepreneur Profile
- Tax Basics
- Income Taxes
- When To Pay
- Minimizing Taxes
- Home Business
- Travel and Entertainment Expenses
- Automobile Expense and Mileage
- Retirement Plans
- Medical Expenses
- Sales and Use Taxes
- Property Taxes
- W-4 and I-9
- W-2, W-3 and Form 1096
- FICA, Social Security and Medicare
- Unemployment Taxes
- Form 1099
- Payroll
- Business Tax
- Excise Tax
- Tax Tips
- Audits
- Business Insurance Agents
- Workers’ Compensation
- Property Insurance
- General Liability
- General Medical
- COBRA
- Directors and Officers
- Employment Practices Liability
- Errors and Omissions
- Product Liability
- Operations
- Business Interruption
- Disability
- Life
- Claims
- IRS Section 125
- Home-Based Business
- Entrepreneur Profile
- Nondisclosure Agreement
- Sale of Goods Agreement
- Sale of Specialty Goods Agreement
- Terms and Conditions
- Promissory Note
- Guarantee
- Corporation Articles of Incorporation
- Corporation Bylaws
- Bank Resolution
- IRC Section 83 Election
- Independent Contractor Agreement
- Employment Agreement
- Sexual Harassment Policy
|
Stephanie Chandler
Author of The Business Startup Checklist & Planning Guide |
|
ORDER NOW: The Business Startup Checklist & Planning Guide |
|
|
Steven D. Strauss
Author of The Small Business Bible |
|
ORDER NOW: The Small Business Bible |
|
|
Joe Kennedy
Author of The Small Business Owner's Manual |
|
ORDER NOW: The Small Business Owner's Manual |
|
|
Tom Severance
Author of Business Start-Up Guide |
|
ORDER NOW: Business Start-Up Guide |
|
Now that you have found a great business at a great price, don’t forget the terms. They can often be more important than the actual price. Generally you want to put as little down as possible and have the owner carry the balance at a low interest rate for as long as possible. This serves two purposes. One, you improve your cash flow position. Two, if there are any future problems that you feel the seller did not disclose and should be liable for, you have substantial leverage since you are still paying the seller.
Locate a good lawyer and a good escrow company to help you close the transaction. If you and your lawyer can draft the contract, do it. If the seller drafts the contract, have your lawyer carefully review it.
Here are some typical provisions to include:
- Names and addresses of all parties and their spouses
- Total price
- Complete detailed description of all tangible and intangible assets with price allocation
- Payment terms with interest rate and due dates
- Adjustments to make at closing
- Contracts and liabilities the purchaser assumes
- Seller’s warranties as to ownership, liabilities, disclosure, and authority
- Duration of seller’s warranties
- Conduct of business up to closing
- Buyer’s rights as to cancellation of contract
- Non-compete agreement by seller detailing type, time, and location
- Employment or consulting agreement with seller
- Responsibility for closing details
- Indemnification of buyer by seller
- Broker compensation payment
- Arbitration agreement and attorneys’ fee agreement
Approval of contract with all parties signing and indicating their signing capacity
Excerpted from Business Start-Up Guide © 2002, Tycoon Publishing