Be Your Own Boss identifies the stages of
owning and maintaining your own business or franchise and pinpoints major
concerns at each phase. Real-life scenarios – from a travel agency to a
printing business to a sports store – provide practical applications for
the techniques and advice highlighted. Sample letters and agreements,
checklists and worksheets, and web resources and government contacts make this
a complete resource guide.
Table of Contents :
Chapter 1: Do You Have What
It Takes to Be an Entrepreneur? 1
Responding to the Call of Entrepreneurism
1
Not Everyone is Cut Out to Be an Entrepreneur 1
Family Support 2
Acceptable Level of Risk 2
Take a Personal Inventory 3
Qualifying
as A Business Immigrant 7
How to Assess Your Financial Comfort Level 8
Chapter 2: Selecting Professional Advisors 17
Locating Professional
Advisors 18
Chapter 3: Choosing the Right Legal Structure 23
Types of Legal Structure 23
The Importance of Agreements 28
Chapter 4: Determining the Right Business Fit for You 35
Advantages of
Going into Business 35
Disadvantages of Going into Business 36
Why Buy
a Business Instead of Starting One? 36
What Type of Business Should You be
Looking to Acquire? 38
Chapter 5: Selecting the Right Business 47
The Buying Process 47
Where to Look for a Business 48
Chapter
6: Buying a Franchise 53
What is Franchising? 53
Franchise Legislation
54
Investigate Before You Invest 55
Pros of Franchising 59
Cons of
Franchising 60
The Franchise Agreement 62
Chapter 7:
Understanding Financial Statements 71
What are Financial Statements? 71
How to Evaluate the Financials 73
The Importance of Ratios 75
How
Reliable are the Financials? 79
Chapter 8: Methods of Buying a
Business 87
The Issue of Taxes 87
Why Sellers Prefer to Sell Shares 88
Why Buyers Prefer to Buy Assets 89
Allocation of the Purchase Price 89
Chapter 9: Establishing a Value 91
Seller’s and Buyer’s
Objectives 91
Fair Market Value 91
Estimating the Value of a Business
92
Methods for Valuing a Business 94
Chapter 10: The
Investigation Process 99
The Importance of Due Diligence 99
Components
100
Executing a Confidentiality/Non-Disclosure Agreement 104
Chapter 11: The Negotiation Process 109
The Art of Negotiation //109
Motivation of Both Parties 110
Getting to a Win-Win Deal 111
Using
an Intermediary 112
The Sequence of Events 112
Letter of Intent (LOI)
112
Chapter 12: Raising Financing 117
Deciding Between Debt and
Equity Financing 117
Source of Financing 118
Developing a Loan
Proposal 122
Chapter 13: Location and Leases 145
The Importance
of Location 145
Leasing 147
Types of Leases 149
Legal Aspects of a
Lease 151
Impact of Government Legislation 155
Key Terms of a Lease 156
Minimizing Personal and Business Risk 162
Negotiating a Lease 166
Chapter 14: Closing the Sale 169
Drafting the Purchase and Sale
Agreement 169
Structure of the Purchase and Sale Agreement 170
The
Closing 171
Chapter 15: Under New Ownership 179
What Do You Do
Now? 179
If it Ain’t Broke — Don’t Fix It 179
Focus on
the Critical Factors 180
Strategic Planning 180
Employees are Your
Biggest Asset 181
Customers 181
Suppliers 181
Retaining the
Previous Owner through the Transition 182
Chapter 16: Selling Your
Business 189
Look Within 189
Forced Sale of a Business 190
Other
Reasons 190
Alternatives to Selling 190
Consider the Impact on Your
Business 190
Tax Considerations 191
Providing Vendor Financing 193
Preparing to Sell Your Business 195
Packaging the Business 196
Preparing Yourself for After the Sale 196
Finding Buyers 197
Negotiating the Sale 199
Executing a Confidentiality/Non-Disclosure
Agreement 199
Glossary 201
Sources of Further Information 211
Web Sites of Interest 221
Index 225
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