Computer Networking Business

Clients

The computer networking business is very competitive and is very dependent upon promotion. You need to implement promotional strategies that will distinguish you from the competition, including word of mouth, advertising, publicity and networking.

Word Of Mouth And Networking

Successful networking is all about creating relationships. If you find businesses in your network and figure out ways you can help them, these same businesses will probably want to help you in the future. Organizations such as the Chamber of Commerce and the Rotary Club are great for networking, as are your child's school, church, your alma mater, relatives and friends. These groups can all give you good word-of-mouth for your community and help build your business in the future.

Advertise!

A computer networking business will probably have to depend on things beyond referrals, which is a great time to use advertising. Internet and e-mail advertising provide great opportunities for business. E-mails should be sent to prospects that have given you permission to send mail to them, and can be a great outreach plan because it is entirely free.

You should also think about using the yellow pages, newspapers, radio and television. If these mediums are overwhelming, you may want to consider hiring an advertising agency to help you. This type of advertising is useful because it reaches a very specific market, but it can be expensive.

Publicity As Free Advertising

Publicity is a great free tool for a computer networking business. Send articles to the local newspaper on computer networking, or press releases to a newspaper or magazine editor when a computer networking business opens for business, hires a new important position or launches a new product. People trust information provided by the media much more than a straight advertisement.

Consider all types of promotion when starting an advertising and networking campaign. Networking, advertising and publicity will all tell people about your company in the community and generate business.

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Business & Human Resources

Business & Human Resources

LLC Basics

Limited liability companies combine the best parts of partnerships and corporations.

A limited liability company (LLC) offers protection from personal liability for business debts, just like a corporation. However, unlike a corporation, which must pay its own taxes, an LLC is a pass-through tax entity: The profits and losses of the business pass through to its owners, who report them on their personal tax returns just as they would if they owned a partnership or sole proprietorship. Moreover, while setting up an LLC is more difficult than creating a partnership or sole proprietorship, running one is significantly easier than running a corporation.

Here are the main features of an LLC:

Limited Personal Liability

Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can't pay a creditor -- such as a supplier, a lender, or a landlord -- the creditor cannot legally come after an LLC member's house, car, or other personal possessions. Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they've invested in the LLC. This feature is often called "limited liability."

Exceptions to Limited Liability

While LLC owners enjoy limited personal liability for many of their business transactions, this protection is not absolute. This drawback is not unique to LLCs, however -- the same exceptions apply to corporations. An LLC owner can be held personally liable if he or she:

• personally and directly injures someone
• personally guarantees a bank loan or a business debt on which the LLC defaults
• fails to deposit taxes withheld from employees' wages
• intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else, or
• treats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.

This last exception is the most important. If owners don't treat the LLC as a separate business, a court might decide that the LLC doesn't really exist and find that its owners are really doing business as individuals who are personally liable for their acts. To keep this from happening, make sure you and your co-owners:

• Act fairly and legally. Do not conceal or misrepresent material facts or the state of your finances to vendors, creditors, or other outsiders.
• Fund your LLC adequately. Invest enough cash in the business so that your LLC can meet foreseeable expenses and liabilities.
• Keep LLC and personal business separate. Get a federal employer identification number, open up a business-only checking account, and keep your personal finances out of your LLC accounting books.
• Create an operating agreement. Having a formal written operating agreement lends credibility to your LLC's separate existence. For more on this, see Creating an LLC Operating Agreement.

Additional Protection: Business Insurance

A good liability insurance policy can shield your personal assets when limited liability protection does not. For instance, if you are a massage therapist and you accidentally injure a client's back, your liability insurance policy should cover you. Insurance can also protect your personal assets in the event that your limited liability status is ignored by a court.

In addition to protecting your personal assets in such situations, insurance can protect the LLC's assets from lawsuits and claims. But your LLC won't be protected if it doesn't pay its bills: Commercial insurance usually does not protect personal or corporate assets from unpaid business debts, whether or not they're personally guaranteed.

For more information on insurance

Business Grants for Women

Many women in business find that in order to meet their business' financial needs, they turn to searching out a loan source. Business loans for women are widely available through the Small Business Administration and a variety of other sources such as banks, credit unions and other financial institutions. Loans, however, are not the only source for financing. In some instances, business grants for women are available.

Business grants for women are a wonderful option for some women in business. Grants are an excellent source of funding because grants are not repaid. The funding is provided through government resources that have been budgeted for specific needs in our national community. Anyone is open to apply, so business grants for women are available to anyone regardless of gender, race, religion, or background.

The downside of grants is that business grants for women are not widely available. Rather, business grants for women are available only to select businesses and under very strict circumstances, mostly for research or development. Technologically-focused businesses, for example, will find it much easier to qualify for a grant than a craft or retail business. Still, because the money is readily available, even if your business is retail oriented, it may be of benefit to check into business grants for women available for various resources that could assist you in your business.

According to Denouement Solutions and Grants.gov, the United States government and its government organizations offer more 1000 grants totaling more than $400 billion in grant funding every year. Only 10 percent of citizens that qualify for these grants actually apply for grants, despite the fact that many more than that would qualify for a business grant for women. Therefore, even though not every individual or business is eligible for a business grant for women, it certainly can be beneficial to check into business grants for women.

According to grants.gov, the United States government's web site and main resource for grants that are available and can be applied for, there are more than 1000 grant programs offered by the 26 Federal grant-making agencies. These programs fall into 21 different categories, as defined by the Catalog of Federal Domestic Assistance. While some agencies may list available grants under multiple grant categories, the Federal government lists these categories of grants as follows:

- Agriculture
- Art
- Business and Commerce
- Community Development
- Consumer Protection
- Disaster Prevention and Relief
- Education
- Employment, Labor, and Training
- Energy
- Environmental Quality
- Food and Nutrition
- Health
- Housing
- Humanities
- Information and Statistics
- Law, Justice, and Legal Service
- Natural Resources
- Regional Development
- Science and Technology
- Social Services and Income Security
- Transportation

Even though the category of Business and Commerce may be what appears to have the largest selection of resources for business grants for women, consider the other categories as well, according to where your business falls. For example, if your business is a restaurant, don't hesitate to check the Food and Nutrition category for grants currently available. If your business is a farm, check the Agriculture section.

Grants aren't available for starting or opening a new business, and they also aren't available for expanding on an existing business. However, business grants for women can offer funding for research or development of the business. Many grants may not be applicable to your particular business or needs, but there may be funds available for research, education, or other things needed for you to operate and improve your business to help you achieve business growth.

In general, when considering the options for a business grant for women, do your homework and read carefully. Look at all grants available that might be related to your particular business. Consider looking into the Business and Commerce section, of Grants.gov, as mentioned, and also look into the different categories of grant fundings. Take the time needed to read the grant qualifications carefully. With any business, check into the Regional Development category, as well as the Community Development category. Depending on your location within the United States, it's possible to qualify for a grant to economically develop certain areas, and expanding a business in one of these areas can possibly assist you in qualifying for a business grant for women.

Additionally, consider applying for an educational grant if returning to school is an option you'd like to consider. Many grants for higher education are offered each year, and not all are awarded. Knowledge is an extremely valuable business tool, and because the money is readily available for those who qualify, and educational grant is an excellent option to consider as a business grant for women.

Contact the specific government agency offering the grant for tips, information, and to ask questions before submitting your application.

Manage Debtors And Creditors To Improve Liquidity

Sales turnover and net profits may follow a rollercoaster pattern familiar to most business but when the cash flow dries up the game is over. Urgent attention to the management of working capital can provide every business with the cash resources to exploit its potential

Most businesses will experience periods of lower sales and times when losses may be incurred as expenses exceed sales income. The situation is recoverable by producing higher sales and reducing costs and expenses. A business that runs out of cash resources is dead in the water.

Debtors and sales income management

The objective is to obtain payment from customers as fast as possible improving cash flow and minimising the risk of bad debts and not being paid at all.

Payment terms offered to customers should be clearly stated and fixed as standard accounting figures according to the amount of funding the business is prepared to offer its clients. Because that is exactly what credit terms to customers is, free cash funding in exchange for eventual sales income.

Consideration should be given to using a cash discount system to encourage sales invoices to be paid faster. In some businesses it would be appropriate to obtain up front deposits and scheduled payments. Review this practise to obtain a greater proportion of payments faster to improve liquidity.

New customers should be subjected to a strict credit check. All new customers where credit check details are not available should be invoiced by the accounting function on a pro forma basis. Any businesses who fail to meet the highest credit score required should remain on a pro forma invoice basis.

The credit control function needs consideration from the first step of issuing customers with a sales invoice, producing customer statements of the debt owed and a set procedure of credit control letters and telephone follow ups that actually achieve the end result of getting the cash in. An essential process in the credit control procedure would be to ensure the accountant or bookkeeper always issues sales invoices and customer statements promptly.

Incorporate into the terms of trade a set of rules to invoke interest payments for late payment and late payment debt recovery costs. In the UK the Late Payment of Commercial Debts (Interest) Act 1998 sets out the statutory rights of business to claim interest and costs.

Consider the possibility of factoring sales invoices due from debtors either by selling the sales invoices to a third party or raising cash on the value of those invoices pending payment. Factoring has the disadvantage of often not being cheap but does have the advantage of generating a regular stream of cash.

Bad debts have a double impact on any business and all possible steps should be taken to reduce the risk. A bad debt not only uses valuable resources in chasing the debt with the negative impact on cash flow and liquidity but also is a straight loss to the net profit and a strong indicator that the accounting function is failing the business.

Creditors and expenditure management

The objective is to extend the time allowed for payment of expenses the business incurs.

Consider the frequency of all payments made to suppliers. Small business have alternative payment terms available for the payment of taxes. In the UK value added tax can be paid quarterly or monthly, vat cash accounting can ease the tax liability due in critical periods and paye payments can be paid quarterly rather than monthly for smaller businesses.

Every opportunity should be considered to improve liquidity and that would include the frequency which employee salaries and wages are paid. A sensitive area since it involves the most important people to the business success but adopting a payment period to coincide with the receipt of cash from customers may in some circumstances balance liquidity.

General creditors are a major area to be addressed in terms of both the amount of credit received from suppliers and the time required to pay those creditor accounts. Larger orders on extended payments terms creates a risk area should the goods not be used but can greatly assist cash flow as the business is effectively borrowing free cash from its suppliers.

Stock levels are crucial to financial management of the creditor total. High stock levels use valuable working capital which is offset in part by the level of creditors. Higher levels of stock financed by free credit from creditors lowers the cash flow requirements on the other parts of the business.

Business Can Be Part-Time

Being A Mom Is Always Full-Time

Sometimes it might feel that your business is taking up all of your time. It can be very common to feel as though all you do is work on your business, answer calls, talk to clients and put out fires at the office. In fact, sometimes you may feel as if your family is being shoved to the background because you are too busy with work.

The thing that you need to remember, even when work gets crazy, is that business can be part time, but being a mom is always full time. Once you have children, you are a mom twenty-four hours a day, seven days a week, for fifty-two weeks of the year. You don’t get time off, you don’t get vacation, and you definitely don’t get sick days. Once you become a mom, you are always a mom, and that’s great! It just means that you need to reprioritize your life.

Depending on your business, you may have the flexibility to work part-time while your children are young, enjoying the best of both worlds. Some businesses allow working women the ability to care for their children, enjoying every moment that being a mother provides, while building a career and a future for that family.

Even if you don’t have the ability to work your business part time while your children are young, you need to remember that business can be part-time and being a mom is always full time. This will never be so apparent than if you get a phone call in the middle of an important meeting that your child is sick at school and you need to come and pick him up. Being a mom means never taking a day off, no matter what!

If you don’t feel like your current position or occupation allows you enough flexibility to spend ample time with your children, it doesn’t hurt to take a look around. They are numerous jobs that allow you to spend time with your children, take care of them when they are sick, and make enough money to maintain your household. Don’t ever feel that you are “stuck” in your current occupation because there are opportunities for everyone out there to make a life that is family-friendly and balanced. Your children are number one, and if your company doesn’t understand that, then you can find a company that does.

Jobsandmoms.com has job postings, books, and other resources that can help you find a desirable, flexible position that works with you and your children.

Need a little inspiration? Check out Kitchen Table Entrepreneurs: How Eleven Women Escaped Poverty and Became Their Own Bosses by Martha Shirk and Anna S. Wadia (available at www.GreatBooksandAudioBooks.com). Kitchen Table Entrepreneurs tells the inspirational stories of eleven low-income women who have marshaled the creative energy, confidence, and capital necessary to start their own small businesses. These women, who have used their entrepreneurial skills as a route out of poverty, give an American face to an economic empowerment tool that has enjoyed great success in developing countries. By becoming their own bosses, they not only provide for their children but also inspire them.

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers.

All Business Need An Assortment Of Envelopes

When most people talk about a standard or regular envelope they are making reference to a business size envelope (also known as a commercial envelope). These kinds of envelopes come in legal as well as letter size with the legal size being the most popular without question. Of all the sizes that the legal envelope comes in, the # 10 envelope with measurements of 4 1/8 x 9 1/2 is used most frequently for many different types of correspondence.

Envelopes come in a plethora of sizes, styles and forms. For all of your business needs there is an assortment of envelopes, everything from commercial envelopes to booklet envelopes to open-end envelopes to square envelopes and so many more. The choices are many! Not only do envelopes come in an assortment of styles and sizes, large to medium to small, but also in an assortment of colors, everything from brightly colored reds and greens to pink, light yellow and baby blue pastels. White however is still the favored color for envelopes, no matter what size you choose.

Personal correspondence to a large extent takes place via email today but sending letters through the mail service is still commonplace. Where there are letters, envelopes are of an absolute necessity. An important thing to note is that regular mail also goes by the term snail mail, because let's face it, compared to electronic mail, it is very slow!

Always remember to keep the contents of what you are mailing in mind when you are in the process of choosing an appropriate sized envelope. Envelopes should close in a relaxed fashion and not have to be stretched or forced. And you don't want to strain it until the paper rips and then have to start all over again with another envelope!

A-series envelopes, square envelopes and open-end envelopes can be found in the desk drawers of professional people everywhere. Booklets and magazines travel well in both square envelopes, because of the lack of seams in the weave, and in open-end or catalog envelopes because they have a gummed flap that securely keeps the item inside the envelope intact throughout its mail journey. The more upscale the business establishment, the more inclined they will be to use the A-series envelopes which have a fancier look to them and come in 60 lb, 70 lb and 80 lb.

Commercial envelopes are available in more than just the # 10 size. Most stationery stores such as Staples, should be able to point customers looking for business sized # 11, # 12 and # 14 envelopes in the right direction. Shop around for your office supplies, both in person and over the Internet and you should be able to find what you are looking for with relative ease.

Your Local Business

Does Your Local Business Need A Website?

A few days back, on a weekday afternoon, I was chatting with Peter. He is an old time friend of mine. Peter was always passionate about cars and finally he left his mundane insurance company job and started his own Auto accessories shop in North Clark St., Chicago. He is happy with kind of business he is getting since the past two years, but it seems to get stagnant at a point. “Yeah I’m doing well. But Selling to the same customers, same kind of goods… its not much better than those nine-to-five job days of mine”, said Peter.

Finding an opportunity for him, I suggested him to go online with a website. “It will give you new customers, new ways to sell your products online, open more channels of income for you. And you can also profit from your knowledge and passion for cars.” Peter did not take much long to decide. He started off with a website for his store within the next 30 days.

Its over an year now. The last time I had a word with Peter over the phone, he proudly said “guess hows my website doing? Its generating over 50% of my monthly business. And everyday I am getting n’ number of enquiries from customers and other merchants.” Wow! A real nitro-boost for Peter’s auto store.

Yes I feel not only Peter, today every business whether it’s the local owner-operated business, retail store, restaurant, dry cleaner, night club or the dentist – they all need a website. They may not be selling online, but should have an internet presence. In fact all business who have felt the need to get listed in the Yellow Pages sometime or the other, should be present in the internet today. It is the place where there customers are looking for them Today!

I was reading a fantastic report on how useful a website can be for any small, self-owned business. The report also shows you various ways and methods to go about your online business. I would surely like to share it with you some other time.

Today, you can put up a modest website at something around Two-Three Thousand dollars, for a genuine internet business. Not a big deal if you consider the kind of reach and mileage you can get out of it. It will help your prospects gather information from the comfort and privacy of their room. Your site will answer the queries of your prospects, as your most dependable salesperson does on his best day, and that too 24x7.

If you are not that confident in spending a few thousand bucks on a new way of doing business, you can surely try a much easier and affordable way of making your online presence.

Business Opportunities:

Business Opportunities: Success and Failure Statistics as Well as Possible Prevention

Let's face it, business opportunities are a rather quick, easy way to start a business. They are usually "turnkey" operations, where someone that buys into a program either online or offline is provided with all the necessary elements of immediately being in business for themselves. Business opportunity programs can also be cost effective, as many abound, and finding one within a restricted budget is rather easy.

The biggest challenges faced when choosing a business opportunity program are the following:

1. Choosing one that suits an entrepreneur's needs and skills as well as interests.
2. Choosing one that pays enough in commissions on goods or services that makes it lucrative enough to turn a healthy profit.
3. Choosing one that is wanted and needed by customers/clients.
4. Choosing one that does not exist in an already glutted market. This would lead to too many choices of other providers and a rather limited market for the business owner.

The sad facts are that because of the easy start up, and the rather quick "fix" that business opportunities present to potential entrepreneurs, business opportunity members can quickly enter a business and just as quickly leave it. Turnover can be quite a problem. Since little initial investment is required, many members "jump into" a business opportunity at whim, and quickly find that running a business is a whole heck of a lot of work!

The reason for the failure rate is also attributable to certain outlooks and requirements that many business opportunity "joiners" fail to consider when joining:

1. Is the business opportunity nothing more than empty promises, the old "too good to be true" adage? Unfortunately, these types of offerings run rampant both online and offline.
2. Is the business opportunity catering to a dying market? Markets can fluctuate, so due diligence is needed. Research into markets, just as with any other business is paramount.
3. Is the business opportunity solvent? Talk to other members, and do research. Become aware of any problems in payments/revenues before you join.
4. Is the business opportunity flexible? Does the Biz Op restrict members in their advertising methods, or are they inflexible and "distant" in their approach to members' concerns/problems.
5. Is the business opportunity viable? Viability should be financial as well as personal. In other words, does the Biz Op have a great financial track record and does it meet the needs of "you" personally, as far as personal satisfaction and approaches to sales and marketing?
6. Is the business opportunity working within the confines of federal, state and local laws? Depending upon where a member lives, these laws can vary widely!

The real statistics on failures of small businesses, many of which now are business opportunities and franchises, are well documented by the United States Small Business Administration: www.sbaonline.sba.gov/. Business statistics provided by the United States Department of Labor, report that in 1994, the number of businesses that failed that year were divided into the following categories:

• Bankruptcies (a 15.4% increase from 1993).
• Failures (a 17% increase from 1993).
• Terminations (.3% increase from 1993).

The Small Business Administration attributes these failures and the evolving higher percentages to the fact that there are now MORE small businesses in the United States overall, with a 49% increase in numbers since 1982.

The Small Business Administration also states specifically that statistically, only one in seven can be considered a true "failure", leaving unpaid obligations in their wakes. Others simply sell or shut their doors for a variety of other reasons.

Since most business opportunities, at least initially, open with less than 100 employees (many are simply the owner, as sole owner and executor of all business "chores"), then most Biz Ops are indeed "small businesses" and as such all the pertinent failure statistics can be applied to them. What is really surprising and rather "staggering" is the fact that most business failures are not due to outside forces, but those that the business owner has complete control over! These issues included lack of marketing know-how, lack of record keeping, lack of management competence, lack of financial management, and other business basics such as controlling employees and the inability to seek outside assistance and advice!

The wise business owner, whether or not involved in a business opportunity, will seek to learn and implement proper procedures, and investigate proper methods of operation throughout the life of a business.

If this is done, a Biz Op owner, or any small business owner, has less of a chance of becoming the "latest failure statistic"!

Business brokers and sellers

Services provided to seller as client

Upon signing a listing contract with the seller wishing to sell the business, the brokerage attempts to earn a commission by finding a buyer for the sellers' business for highest possible price on the best terms for the seller. To help accomplish this goal of finding buyers, a business brokerage commonly does the following:

* Ensures Confidentiality--Brokers have established systems in place to protect the confidentiality of a business.
* Appraisals--Most business owners have no idea what their business is worth. Certified Business Brokers are trained in business valuation and can help business owners understand the true value of all their hard work and sacrifice.
* Market Knowledge--Brokers make their living selling businesses. They are in the market on a daily basis conversing with Buyers. A local business broker understands the local market as well as what a business is worth.
* Saves time and stress
* Listing the business for sale to the public, often on a Multiple Listing Service, in addition to any other methods.
* Based on the law in several states, providing the seller with a business condition disclosure form, and other forms which may be needed.
* Preparing necessary papers describing the business for advertising, pamphlets, tours, etc.
* Advertising the business. Advertising is often the biggest outside expense in listing a business.
* Being a contact person available to answer any questions about the business and to schedule showing appointments
* Ensuring buyers are prescreened so that they are financially qualified to buy the business; the more highly financially qualified the buyer is, the more likely the closing will succeed.
* Negotiating price on behalf of the sellers. The seller's agent acts as a fiduciary for the seller. By not being emotionally tied to the transaction, Business Brokers are in a position to more effectively negotiate on a Seller's behalf. This may involve preparing a standard offer to purchase contract by filling in the blanks in the contract form.
* In some cases, holding an earnest payment in escrow from the buyer(s) until the closing. In many states, the closing is the meeting between the buyer and seller where the business ownership is transferred and the businesses name is conveyed.

Business brokers attract prospective buyers in a variety of ways, including listing limited details of available businesses on their websites and advertising in business newspapers and magazines. Brokers also directly approach prospective buyers and sellers to gauge interest.


The "listing" contract

Although there can be other ways of doing business, a business brokerage usually earns its commission after the business broker and a seller enter into a listing contract and fulfill agreed-upon terms specified within that contract. The seller's business is then listed for sale, often on a Business specific Multiple Listing Service (MLS) in addition to any other ways of advertising or promoting the sale of the property.

In most of North America, a listing agreement or contract between broker and seller must include the following: starting and ending dates of the agreement; the amount of compensation due to the broker.


Brokerage Compensation

There are three forms of Brokers compensation; hourly, retainer, and success fee (commission upon a closing). A Broker may use any one, or combination of these when providing services. The most common form of compensation is a success fee commission where the payment of a commission to the brokerage is contingent upon finding a satisfactory buyer for the business for sale, the successful negotiation of a purchase contract between a satisfactory buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Just as major investment banks normally charge a retainer for services, more business brokers have started to embrace this practice as well. The retainer helps covers the upfront costs incurred by the broker to perform services and shows a commitment on the part of the client (seller or buyer) that they are serious. Certain types of merger and acquisitions transactions involve securities and may require that an intermediary be securities licensed in order to be compensated.

In North America success fee commissions range from 5% to 12%. Usually, the smaller the transaction, the larger the commission. "Main Street" businesses, those with revenues between $100,000 and $1,000,000 can expect commissions to average bewteen 8% - 12%. Commissions are determined between the client (seller or buyer) and their broker and are normally paid at closing.

The standard commission is likely to be lower in the United Kingdom (see Lehman scale). Commissions are negotiable between seller and broker. The commission could also be paid as flat fee or some combination of flat fee and percentage, particularly in the case of lower-priced businesses, businesses in the multi-million dollar price, or other unusual business assets. The details are determined by the listing contract.

Out of the commission received from the seller, the broker will typically pay any expenses incurred to do the work of trying to sell the listed businesses, such as advertisements, etc.

General

The sellers and buyers themselves are the principals in the sale, and business brokers (and the principal broker's agents) are their agents as defined in the law. However, although a business broker commonly fills out the offer to purchase form, agents are typically not given power of attorney to sign the offer to purchase or the closing documents; the principals sign these documents. The respective business brokers may include their brokerages on the contract as the agents for each principal.

The use of a business broker is not a requirement for the sale or conveyance of a business or for obtaining a Small business or SBA loan from a lender. However, once a broker is used, A special escrow attorney sometimes called a settlement attorney (or party handling closing) will ensure that all parties involved be paid. Lenders typically have Special requirements for a business related or SBA loan.

The market served by business brokers generally involves the sale of businesses with transaction values less than $10 M. Larger privately held companies are classified in the Middle Market and will employ firms that specialize in Mergers and Acquisitions, or M&A. However, business brokers do participate in mergers and acquisitions activities when it involves a transaction between two or more smaller companies. Business Brokers and M&A firms do overlap activities in the extremes of their market. These extremes are called the Transitional Market, or TransMarket.

Types of services that a broker can provide

Broker services vary widely depending on the practice and skill set of the broker. The most common services provided by a broker to a client are:

* Assist client in establishing a MPSP Value - Most Probable Selling Price Valuation; the techniques used by individual brokers can vary greatly in this process
* Develop a comprehensive Information Memorandum on the company; normally a 15-30 page document outlining the business for potential buyers
* Conduct buyer searches
* Exposure - Marketing the business to prospective buyers
* Screen buyers for ability to complete a purchase
* Coordinate negotiations and provide deal structuring advice
* Provide overall deal management to guide the client through the entire process
* Help maintain confidentiality of the sale
* Hourly Consulting for a fee, based on the client's needs

Perhaps one of the biggest services provided by brokers is the ability to allow owners to stay focused on running their business during the sale process which can be take on average 6 months to 12 monthes to complete.

Business broker

A business broker is a person or firm who/which acts as an intermediary between sellers and buyers of small businesses.

Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held small business in the buying and selling process. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation and generally assist with the business sale.


Agency relationships with clients and customers

Traditionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed agreement with a seller or "buyer representation" agreement with a buyer. In most states this creating under common law an agency relationship with fiduciary obligations. Some states also have statutes which define and control the nature of the representation.

Agency relationships in business ownership transactions involve the representation by a business broker (on behalf of a brokerage company) of the selling principal, whether that person is a buyer or a seller. The principal broker (and his/her agents) then become the agent/s of the principal, who is the broker’s client. The other party in the transaction, who does not have an agency relationship with the broker, is the broker's customer.

Transactions Brokers

In some states of the USA, business brokers act as transactions brokers. A transaction broker represents neither party as an agent, but works to facilitate the transaction and deals with both parties on the same level of trust. Most states that operate business transactions as Transactions Brokers also operate Real Estate transactions as Transaction Brokers.


Dual or limited Agency

Dual agency occurs when the same brokerage represents both the seller and the buyer under written agreements. Individual state laws vary and interpret dual agency rather differently.

* If state law allows for the same agent to represents both the buyer and the seller in a single transaction, the brokerage/agent is typically considered to be a Dual Agent. Special laws/rules often apply to dual agents, especially in negotiating price.
* In some states of the USA (notably Maryland[1]), Dual Agency can be practiced in situations where the same brokerage (but not agent) represent both the buyer and the seller. If one agent from the brokerage has a home listed and another agent from that brokerage has a buyer-brokerage agreement with a buyer who wishes to buy the listed property, Dual Agency occurs by allowing each agent to be designated as “intra-company” agent. Only the principal broker himself/herself is the Dual Agent.
* Some states do allow a broker and one agent to represent both sides of the transaction as dual agents. In those situations, conflict of interest is more likely to occur.

Intellectual property & Exit plans

Intellectual property

Businesses often have important "intellectual property" that needs protection from competitors in order for the company to stay profitable. This could require patents or copyrights or preservation of trade secrets. Most businesses have names, logos and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties.

Exit plans

Businesses can be bought and sold. Business owners often refer to their plan of disposing of the business as an "exit plan." Common exit plans include IPOs, MBOs and mergers with other businesses

Capital

When businesses need to raise money (called 'capital'), more laws come into play. A highly complex set of laws and regulations govern the offer and sale of investment securities (the means of raising money) in most Western countries. These regulations can require disclosure of a lot of specific financial and other information about the business and give buyers certain remedies. Because "securities" is a very broad term, most investment transactions will be potentially subject to these laws, unless a special exemption is available.

Capital may be raised through private means, by public offer (IPO) on a stock exchange, or in many other ways. Major stock exchanges include the New York Stock Exchange and Nasdaq (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and so on. Most countries with capital markets have at least one.

Business that have gone "public" are subject to extremely detailed and complicated regulation about their internal governance (such as how executive officers' compensation is determined) and when and how information is disclosed to the public and their shareholders. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other Western nations have comparable regulatory bodies.

As noted at the beginning, it is impossible to enumerate all of the types of laws and regulations that impact on business today. In fact, these laws have become so numerous and complex, that no business lawyer can learn them all, forcing increasing specialization among corporate attorneys. It is not unheard of for teams of 5 to 10 attorneys to be required to handle certain kinds of corporate transactions, due to the sprawling nature of modern regulation. Commercial law spans general corporate law, employment and labor law, healthcare law, securities law, M&A law (who specialize in acquisitions), tax law, ERISA law (ERISA in the United States governs employee benefit plans), food and drug regulatory law, intellectual property law (specializing in copyrights, patents, trademarks and such), telecommunications law, and more.

In Thailand, for example, it is necessary to register a particular amount of capital for each employee, and pay a fee to the government for the amount of capital registered. There is no legal requirement to prove that this capital actually exists, the only requirement is to pay the fee. Overall, processes like this are detrimental to the development and GDP of a country, but often exist in "feudal" developing countries.

Commercial law

Most commercial transactions are governed by a very detailed and well-established body of rules that have evolved over a very long period of time, it being the case that governing trade and commerce was a strong driving force in the creation of law and courts in Western civilization.

As for other laws that regulate or impact businesses, in many countries it is all but impossible to chronicle them all in a single reference source. There are laws governing treatment of labor and generally relations with employees, safety and protection issues (OSHA or Health and Safety), anti-discrimination laws (age, gender, disabilities, race, and in some jurisdictions, sexual orientation), minimum wage laws, union laws, workers compensation laws, and annual vacation or working hours time.

In some specialized businesses, there may also be licenses required, either due to special laws that govern entry into certain trades, occupations or professions, which may require special education, or by local governments who just want your money. Professions that require special licenses run the gamut from law and medicine to flying airplanes to selling liquor to radio broadcasting to selling investment securities to selling used cars to roofing. Local jurisdictions may also require special licenses and taxes just to operate a business without regard to the type of business involved.

Some businesses are subject to ongoing special regulation. These industries include, for example, public utilities, investment securities, banking, insurance, broadcasting, aviation, and health care providers. Environmental regulations are also very complex and can impact many kinds of businesses in unexpected ways.


Capital

When businesses need to raise money (called 'capital'), more laws come into play. A highly complex set of laws and regulations govern the offer and sale of investment securities (the means of raising money) in most Western countries. These regulations can require disclosure of a lot of specific financial and other information about the business and give buyers certain remedies. Because "securities" is a very broad term, most investment transactions will be potentially subject to these laws, unless a special exemption is available.

Capital may be raised through private means, by public offer (IPO) on a stock exchange, or in many other ways. Major stock exchanges include the New York Stock Exchange and Nasdaq (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and so on. Most countries with capital markets have at least one.

Business that have gone "public" are subject to extremely detailed and complicated regulation about their internal governance (such as how executive officers' compensation is determined) and when and how information is disclosed to the public and their shareholders. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other Western nations have comparable regulatory bodies.

As noted at the beginning, it is impossible to enumerate all of the types of laws and regulations that impact on business today. In fact, these laws have become so numerous and complex, that no business lawyer can learn them all, forcing increasing specialization among corporate attorneys. It is not unheard of for teams of 5 to 10 attorneys to be required to handle certain kinds of corporate transactions, due to the sprawling nature of modern regulation. Commercial law spans general corporate law, employment and labor law, healthcare law, securities law, M&A law (who specialize in acquisitions), tax law, ERISA law (ERISA in the United States governs employee benefit plans), food and drug regulatory law, intellectual property law (specializing in copyrights, patents, trademarks and such), telecommunications law, and more.

In Thailand, for example, it is necessary to register a particular amount of capital for each employee, and pay a fee to the government for the amount of capital registered. There is no legal requirement to prove that this capital actually exists, the only requirement is to pay the fee. Overall, processes like this are detrimental to the development and GDP of a country, but often exist in "feudal" developing countries.

Intellectual property

Businesses often have important "intellectual property" that needs protection from competitors in order for the company to stay profitable. This could require patents or copyrights or preservation of trade secrets. Most businesses have names, logos and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties.


Exit plans

Businesses can be bought and sold. Business owners often refer to their plan of disposing of the business as an "exit plan." Common exit plans include IPOs, MBOs and mergers with other businesses.

Management

The study of the efficient and effective operation of a business is called management. The main branches of management are financial management, marketing management, human resource management, strategic management, production management, service management, information technology management, and business intelligence.
Government regulation
Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law for each type.

Organizing a business

The major factors affecting how a business is organized are usually:

* The size and scope of the business, and its anticipated management and ownership. Generally a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as partnerships or (more commonly) corporations. In addition a business which wishes to raise money on a stock market or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.
* The sector and country. Private profit making businesses are different from government owned bodies. In some countries, certain businesses are legally obliged to be organized certain ways.
* Limited liability. Corporations, limited liability partnerships, and other specific types of business organizations protect their owners from business failure by doing business under a separate legal entity with certain legal protections. In contrast, unincorporated businesses or persons working on their own are usually not so protected.
* Tax advantages. Different structures are treated differently in tax law, and may have advantages for this reason.
* Disclosure and compliance requirements. Different business structures may be required to make more or less information public (or reported to relevant authorities), and may be bound to comply with different rules and regulations.

Many businesses are operated through a separate entity such as a corporation, limited partnership or limited liability company. Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent and complying with certain other ongoing obligations. The relationships and legal rights of shareholders, limited partners, or members are governed partly by the charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate "person." This means that unless there is misconduct, the owner's own possessions are strongly protected in law, if the business does not succeed.

Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located.

A single person who owns and runs a business is commonly known as a sole proprietor, whether he or she owns it directly or through a formally organized entity.

A few relevant factors to consider in deciding how to operate a business include:

1. General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.
2. Generally, corporations are required to pay tax just like "real" people. In some tax systems, this can give rise to so-called double taxation, because first the corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.
3. In most countries, there are laws which treat small corporations differently than large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.
4. In order to "go public" (sometimes called IPO) -- which basically means to allow a part of the business to be owned by a wider range of investors or the public in general -- you must organize a separate entity, which is usually required to comply with a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public LLCs that sell units (sometimes also called shares), and other more exotic entities as well (for example, REITs in the USA, Unit Trusts in the UK). However, you cannot take a general partnership "public."

Organization

Most businesses must accomplish similar functions regardless of size, legal structure or industry. These functions are often organized into departments. Common departments include (but are not limited to):

Human Resources
Typically responsible for hiring, firing, payroll, benefits, etc.
Finance
responsible for managing the enterprises financial resources[1]

Budgeting and forecasting
planning how the enterprise wants things to happen
Cash and treasury management
ensuring the enterprise has money when it's needed
Accounts payable and receivable
ensuring the enterprise receives what it's owed and pay what it owes
Tax planning/filing and reporting
meeting obligations to the government
Risk management
ensuring the enterprise doesn't get surprised by something unfavorable
External and internal (management) reporting
providing visibility into the enterprise for those who need it through financial reporting and other types of reporting

Marketing and sales
responsible for selling the business' goods or services to the customer and for managing the relationships with the customer

Marketing
Typically responsible for promoting interest in, and generating demand for, the business' products or services, and positioning them within the market
Sales
finding likely purchasers and obtaining their agreement (known as a contract) to buy the business' products or services

Operations
makes the product or delivers the service

Production
produces the raw materials into the delivered goods, if they require processing
Customer service
supports customers who need help with the goods or services

Procurement
responsible for acquiring the goods and services necessary for the business. Sometimes organized as:

Strategic sourcing
determines the business' needs and plans for acquiring the necessary raw materials and services for the business
Purchasing
processes the purchase orders and related transactions

Research and Development
tests to create new products and to determine their viability (e.g. pilot plants)
Information Technology
manages the business' computer and data assets
Communications/Public Relations
responsible for communicating to the outside world
Administration
provides administrative support to the other departments (such as typing, filing, etc.)
Internal Audit
an independent control function typically accountable to the Board of Directors for reporting on the proper functioning of the other departments

Management is sometimes listed as a "department" but typically refers to the top level of leadership within the business regardless of their functional role.

Classifications

There are many types of businesses, and, as a result, businesses are classified in many ways. One of the most common focuses on the primary profit-generating activities of a business:

* Manufacturers produce products, from raw materials or component parts, which they then sell at a profit. Companies that make physical goods, such as cars or pipes, are considered manufacturers.
* Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses or consumers. Organizations ranging from house decorators to consulting firms to restaurants and even to entertainers are types of service businesses.
* Retailers and Distributors act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services. Most consumer-oriented stores and catalogue companies are distributors or retailers. See also: Franchising
* Agriculture and mining businesses are concerned with the production of raw material, such as plants or minerals.
* Financial businesses include banks and other companies that generate profit through investment and management of capital.
* Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.
* Utilities produce public services, such as heat, electricity, or sewage treatment, and are usually government chartered.
* Real estate businesses generate profit from the selling, renting, and development of properties, homes, and buildings.
* Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs

There are many other divisions and subdivisions of businesses. The authoritative list of business types for North America is generally considered to be the North American Industry Classification System, or NAICS. The equivalent European Union list is the NACE.

Basic forms of ownership

Although forms of business ownership vary by jurisdiction, there are several common forms:

* Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.

* Partnership: A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.

* Corporation: A business corporation is a for-profit, limited liability entity that has a separate legal personality from its members. A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff.

* Cooperative: Often referred to as a "co-op business" or "co-op", a cooperative is a for-profit, limited liability entity that differs from a corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

For a country-by-country listing of legally recognized business forms, see Types of business entity.

Business

A business (also called firm or an enterprise) is a legally recognized organizational entity designed to
provide goods and/or services to consumers or corporate entities such as governments, charities or other businesses. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit to increase the wealth of owners. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative businesses and state-owned enterprises. Socialistic systems involve either government, public, or worker ownership of most sizable businesses.

The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.

Business Studies, the study of the management of individuals to maintain collective productivity in order to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.