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// Question and Answer Pairs
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new qaObj("<p><b>Tip #1:</b><img src='/images/folder.gif'></p><p><strong>Only 10% of Business Owners Use Business Brokers to Sell Their Business</strong></p>","<p>Most people would not consider selling their house without a Realtor; most Accountants and Attorneys would not dream of trying to represent you in the sale of a house either - and we all know why.</p><p>Then it seems strange that so many professionals and so many business owners believe that they can be successful selling a business, when a business if far harder to sell than a piece of Real Estate. Business Brokers who are Certified and who are part of a professional network of brokers are the professionals you should use.</p><p><a href=\"http://www.novargroup.com/content-step1-prep.html\">View our 5-step plan in selling your business.</a></p>");
new qaObj("<p><b>Tip #2:</b><img src='/images/folder.gif'></p><p><strong>Careful Planning Is Critical on Timing Your Sale</strong></p>","<p>Regardless of when you sell your business, you need a strategy that addresses these important timing issus:</p><ul><li><strong>Plan Your Exit Timing:</strong><br>If retirement is your exit strategy, plan to sell well in advance of your retirement age. Buyers will sense your need to retire and may negotiate a lower sales price.<br><br></li><li><strong>Don't Leave Too Late:</strong><br>Burnout, boredom or just ready to throw in the towel may begin to show up in your financials. Any decline in your financials will lower the value of your goodwill and company value.<br><br></li><li><strong>Watch Your Markets:</strong><br>A bad time to sell is when a nationally-branded competitor enters your market.<br><br></li><li><strong>Watch the Industry Economy:</strong><br>Selling in a growing economy brings a higher price than selling is a recession. The best thing to do during a recession or economic slowdown is prep your company to achieve maximum value when the economy turns around.</li></ul>");
new qaObj("<p><b>Tip #3:</b><img src='/images/folder.gif'></p><p><strong>To Whom to Sell Your Business</strong></p>","<p><strong>Individual Buyers</strong></p><ul><li>Corporate downsizing has brought into the market business managers who are looking for new opportunities. These qualified managers see themselves buying and managing an established small business close to home.</li></ul><p><strong>The Competition</strong></p><ul><li>The competition may buy your business especially if you have a business market niche or product-line that they need. Sometimes it is financially feasible to buy an existing operation than to take the time and capital to build one up.</li></ul><p><strong>Businesses Looking to Expand or Compliment Their Product Line</strong></p><ul><li>Sometimes an established business in your related field is looking to expand their operations or to move into a new product line or service. It may be a lot cheaper to buy an established operation instead of setting up shop in a new market.</li></ul><p><strong>Investment Groups</strong></p><ul><li>You may have an investment group looking for investment opportunities. These investment teams will buy companies to divest or merge with similar businesses. They will scrutinize a company very carefully. They buy companies that are in growing markets, have good financials, maintain key management, and meet their investment objectives. They will pay top dollar for a company if these basic elements are in place.</li></ul>");
new qaObj("<p><b>Tip #4:</b><img src='/images/folder.gif'></p><p><strong>The Strength of Your Competition Can Impact Market Value</strong></p>","<p>The buyer will analyze your competitive position. They may request your competitive defense strategy. Example:</p><ul><li>you need to define the barriers of entry into your market -- how easy or how difficult is it from someone entering your market to compete?<br><br></li><li>you need to define the barriers of exit -- can a competitor exit the business fairly easy or are the barriers so high that an attack on a competitor may force price retaliation?<br><br></li><li>what competitive threats do you find from players in the value chain -- can your supplier or buyer move up or down the value chain to compete directly?<br><br></li><li>what gives you an competitive advantage over the next player: is it your retail location, marketing segmentation, product offering, or what? Be prepared to demonstrate and explain.</li></ul>");
new qaObj("<p><b>Tip #5:</b><img src='/images/folder.gif'></p><p><strong>90% of Business Owners Sell Just 1 Business in Their Life-Time</strong></p>","<p>So do it right to get the maximum return for your hard years of work. Seek out professional advice from professionals with business brokerage experience.</p><p>Unfortunately in many cases, business owners turn to the people who have advised them in the past: attorneys, accountants, insurance agents.  The majority of these professionals have never sold a business, let alone understand how to present a business to a prospective buyers.  That may explain why 3 out of 4 businesses will not sell.</p><p>Your professional Business Broker at The Novars Group is there to guide you through the process of selling your business.  They are there to work with your other advisors to ensure your business is properly priced, marketed, represented and sold.  This is what we do every day AND MORE.</p>");
new qaObj("<p><b>Tip #6:</b><img src='/images/folder.gif'></p><p><strong>What's Needed to Sell Your Business</strong></p>","<p><strong>First: Put It Down on Paper</strong><br>You need to bundle everything that is for sale and present it in a professionally designed, bounded sales sheet (what the industry refers to as the Confidential Memorandum).</p><p>Assembling your Sales Presentation is critical before listing or announcing that your business is for sale. The time to complete a sales presentation can vary depending on the quality of your financial statements and analysis of your business.</p><p><strong>Second: List Your Business</strong><br>Once you have completed the sales presentation, you are ready to list your company via a network of business media outlets. These outlets target prospective buyers who express interest in your business type.<br><br>Another listing strategy may involve a competitive target strategy. This involves reaching out to competitive or similar-related businesses who might view your business as a potential take-over.</p><p><strong>Third: Qualify the Buyer</strong><br>If a prospective buyer inquires about your business sale, you will present them with the Confidential Memorandum. Some issues:<ul><li> Check to make sure the prospective buyer is qualified to make the purchase. You don't want to waste time with individuals who lack the financing to take over your business. </li><li> Be careful who you present your Confidential Memorandum. The information is extrememly confidential. </li><li> Be careful who you invite to look-over your business. You can't risk the exposure by opening your company books unless the buyer has signed an Intent to Buy Agreement. </li></ul><p><strong>Fourth: Move to Closing</strong><br>If you find a buyer who offers a signed intent to buy, you will complete due diligence and arrange for closing.</p><p>The Due Diligence involves a complete review of your company financials, strategy, and markets.  This may involve the buyer's accountant or other professional advisor. You should check that the buyer has the financial capacity to buy your business prior to opening up your books.</p><p><strong>What The Novars Group Can Do</strong><br>We are a professional business brokerage operation with expertise in business transfer and sales. We can:</p><ul><li> analyze and prepare your sales sheet </li><li> list and network your business </li><li> qualify and screen buyers </li><li> manage the due due diligence process</li><li> arrange financing</li><li> close the sale</li></ul>");
new qaObj("<p><b>Tip #7:</b><img src='/images/folder.gif'></p><p><strong>90% of Business Owners Have No Idea What Their Business Is Worth!</strong></p>","<p>A business is often one of the biggest assets a person has and in most cases business owners have no idea of the value of that asset.  Many will turn to their accountant to help out. This may not always be the best choice.</p><p><a href=\"http://www.novargroup.com/business-valuation.html\">View what a business valuation can do for you.</a></p>");
new qaObj("<p><b>Tip #8:</b><img src='/images/folder.gif'></p><p><strong>How To Prepare Your Business <br>For Sale</strong></p>","<p><strong>First, Build Your Business for the Ultimate Customer</strong></p><ul><li>The ultimate customer is the person who buys you out.</li><li>Imagine yourself as the buyer. What would you require of a business? What kind of markets would you like to see? How should the financials look like? Prepare your business with your objectives in mind.</li></ul><p><strong>Carve Yourself Out of the Picture</strong></p><ul><li>Your business will be more valuable if it is NOT dependent on you. The ideal business is when you can take an extended vacation and everything will operate independently of you being there.</li></ul><p><strong>Automate Your Business</strong></p><ul><li>The less your business is dependent on key labor, the more valuable the business.</li><li>The ideal business is when the buyer can take over a turn-key operation. The objective is to automate procedures and operations so that a system can be replicated and implemented by any person.</li></ul><p><strong>Have the End in Mind</strong></p><ul><li>Successful business owners who sell their businesses have a complete picture of what their business will look like when it is finished.</li><li>They know what products will be available, what markets will be opened, and what operations will be achieved.</li></ul><p><strong>Deliver Exceptional Value</strong></p><ul><li>As you prepare your business to sell, continue to deliver exceptional value to your customers.</li></ul><p>");
new qaObj("<p><b>Tip #9:</b><img src='/images/folder.gif'></p><p><strong>You Can Maximize Your Business Value by Having a Viable Marketing Strategy In-Place</strong></p>","<p>The key ingredient for any buyer when taking over a company is having in place a marketing plan that has measurable returns. A viable marketing plan includes: </p><ul><li> established contracts or loyal customer base </li><li> repeat sales </li><li> working advertising plan </li><li> defined market segmentation </li><li> profitable e-commerce position </li></ul><p>When the business owner demonstrates a marketing plan that is working, it increases the perceived value of the company to the prospective buyer. The greatest confidence you can place in the mind of the buyer is a plan that they can take over and build up, ensuring a positive cash flow for the future.</p><p> We have more information related to developing a viable marketing plan: <a href=\"http://www.novarsgroup.com/business-tools-market.html\">click here</a></p>");
new qaObj("<p><b>Tip #10:</b><img src='/images/folder.gif'></p><p><strong>Cash Determines Price &mdash; The Higher the Cash Flow, The Higher the Asking Price</strong></p>","<p>The asking price for a company can be determined by several factors, such as the:</p><ul><li> value of your assets </li><li> value of your market reach </li><li> value of your goodwill </li><li> value of your location </li><li> value of your technology </li></ul><p>But the underlying factor that supports the asking price -- regardless of the perceived market value of the business --</p><ul><li> is the sustainable cash flow that the business generates. </li></ul><p> This about it! What does the buyer need to support their decision to pay the asking price for your company? Enough cash to:</p><ol><li> pay the buyer's salary </li><li> pay the financing costs to purchase the business </li><li> return a minimum investment for the down payment </li><li> generate working capital to grow the business</li></ul><p> These are the minimum requirements. Thus when your business generates a higher cash flow, the higher your asking price</p><p>We have more information about business value: <a href=\"http://www.novarsgroup.com/business-valuation.html\">click here</a></p>");
new qaObj("<p><b>Tip #11:</b><img src='/images/folder.gif'></p><p><strong>Timing the Sale of Your Business</strong></p>","<p>Your reason to sell your business should be proceeded by a quick analysis of your personal and financial goals.  Question:</p><ol><li> Is your business less enjoyable now than it used to be? </li><li> Has your business become more challenging to manage or to keep going? </li><li> Has your business taken you away from your family and other personal commitments? </li><li> Do you lack the drive and capital to move your business to the next level to stay competitive? </li></ol><p>If you answered <strong>yes</strong> to these questions, then it might be the right time to sell. </p><p>But wait! Let's not jump too quickly. You must first <strong>prep</strong> your business to achieve the maximum sales value. We are talking about --</p><ul><li> strengthening your markets </li><li> cleaning up the financials </li><li> streamlining operations </li></ul><p> <a href=\"http://www.novarsgroup.com/business-selling-prep.html\">We have guides on how to complete a selling prep</a></p>");
new qaObj("<p><b>Tip #12:</b><img src='/images/folder.gif'></p><p><strong>Market Expansion Strategies</strong></p>","<p>What Makes You Money? This is the most important component of your business strategy -- making money. Without sales, and the prospect of continued and growing sales, you have nothing.</p><p>The strength of your markets will determine the overall value of your company. The stronger your marketing position, the greater the value of your company when you are ready to sell.</p><p>We invite you to review our Marketing Expansion Steps:<ul><li><strong>Step 1:</strong><br /><a href=\"http://www.novarsgroup.com/marketing-model-part1.html\">establish your marketing objectives</a></li><br /><li><strong>Step 2:</strong><br /><a href=\"http://www.novarsgroup.com/marketing-model-part2.html\">analyze your current marketing position</a></li><br /><li><strong>Step 3:</strong><br /><a href=\"http://www.novarsgroup.com/marketing-model-part3.html\">complete market segmentation analysis</a></li><br /><li><strong>Step 4:</strong><br /><a href=\"http://www.novarsgroup.com/marketing-model-part4.html\">select your marketing strategy</a></li><br /><li><strong>Step 5:</strong><br /><a href=\"http://www.novarsgroup.com/marketing-model-part5.html\">set product-price-distribution-promotion</a> </li></ul><p>Illustrative models can be downloaded as reference guides.</p>");
new qaObj("<p><b>Tip #13:</b><img src='/images/folder.gif'></p><p><strong>Most Buyers of Existing Businesses Are First-Time Buyers</strong></p>","<p>It's a dream of many to be their own boss, to own their own business.  Many never make it. But for those who do, it is usually the first and only time they will buy a business.</p><p>Business Brokers are here to help. Our experience in profiling allows us to find the business that's right for you. We can complete the search on your behalf using our nation-wide network of business-buy opportunities. We also have on staff individuals who can help make the transaction and ensure your business buy is a success.</p><p><a href=\"http://www.novargroup.com/content-step1-buy-intent.html\">View our 5-Step Plan for Buying a Business</a></p>");
new qaObj("<p><b>Tip #14:</b><img src='/images/folder.gif'></p><p><strong>When to Sell Your Business</strong></p>","<p>The best time to sell your business is just before its peak:</p><blockquote><p><strong>Cycle 1: Emerging Market</strong><br>This is when a business first comes into the market. The market is fairly new and is not fully developed or serviced.</p><p><strong>Cycle 2: Growth</strong><br>This is a period when the business begins experiencing rapid growth. The business will expand its operations, hire new people, and move into new markets and territories.</p><p><strong>Cycle 3: Maturity:</strong><br>This is when the business begins to mature. Competitors are entering the market to challenge the leader. To remain competitive, the business must tighten its operations, increase productivity, expand its product offerings, develop new markets, and shed unprofitable operations.</p><p><strong>Cycle 4: Decline</strong><br>This is when the business begins to decline due to competitive pressures from more capital-intensive competitors or when markets change.</p></blockquote><p>The best time to sell is at the end of Cycle 2, just before entering into Cycle 3. You will be in a position of strength to command the best price for your business.</p><p>The 2nd best time to sell is when you are at the front-half of Cycle 3. The maturity stage for a business can operate for many years and you can command a good selling price if you hold a dominant position in the market.</p><p>The worst time to sell is in Cycle 4, when the business is in decline. Under these circumstances, the business owner generally sells the assets of the company and exits the business.</p>");
new qaObj("<p><b>Tip #15:</b><img src='/images/folder.gif'></p><p><strong>A Professional Business Valuation Can Help Avoid Seller Financing</strong></p>","<p>Many business owners will need to offer seller financing to facilitate the transfer of the business to the buyer. That means you will have a financial involvement in your business for the term of your financing, where you will have no control or influence on what happens to protect your investment.</p><p>There is a way you can minimize the amount of seller financing you have to offer:</p><ol><li>Complete an independent third-party professional valuation on your company.<br><br></li><li>Use that valuation to get your business pre-approved for a business loan that a buyer can assume if they qualify.</li></ol><p>We work with a number of preferred business lenders to help secure your buyer a loan for the purchase. The valuation will help ensure that loan is available. <a href=\"http://www.novarsgroup.com/business-valuation.html\">You will find more information about business valuations.</a></p>");
new qaObj("<p><b>Tip #16:</b><img src='/images/folder.gif'></p><p><strong>3 out of 4 Businesses That Are Listed for Sale Will Not Sell</strong></p>","<p>It is more difficult to sell a business than real estate. Comparing real estate to another location making it relatively easy to determine and compare value.</p><p>There are 1MILLION Realtors all sharing information about properties for sale, all ready to split their commission with other realtors to ensure the property is sold. That exposure all but assures you that your property will be seen by people interested in and able to make a purchase.</p><p>This is not true for a business. The facts about a business, especially a privately owned business are hidden from view and held in confidentiality. This information is ONLY provided to a prospective buyer when the buyer has been qualified to make a buy transaction.</p>");
new qaObj("<p><b>Tip #17:</b><img src='/images/folder.gif'></p><p><strong>Get 2 Attorneys Involved in a Business Sale Transaction ...</strong> <br /><br />... and Reduce Your Chance of Closing by 60%</p>","<p>Attorneys can be your best friend. But MOST attorneys are not experienced at business closings.</p><p>We find that when 2 attorneys get together to negotiate a business sale, there is a tendency towards adversarial positions being taken rather than working towards the goal of getting the deal done.</p><p>Many states allow for a transaction attorney to be appointed. This attorney will represent the business deal and not favor one party over the other. Having a professional advisor such as the Novars Group can be used to facilitate negotiations and ensure the business sale closes to everyone's satisfaction.</p>");
new qaObj("<p><b>Tip #18:</b><img src='/images/folder.gif'></p><p><strong>Getting Your Financial House In Order Prior to Listing Your Business</strong></p>","<p>Your sales presentation to a prospective buyer will include the company financials for the past 3 years. You should always prep your business to show a 2- or more year up-trend that supports your market value. This includes:</p><ul><li> increasing sales over time </li><li> incurring expenses the directly grow the business </li><li> building a positive cash flow<br><br><strong>additionally, you should:</strong><br><br> </li><li> get rid of excess inventory </li><li> pay off short and long-term obligations </li><li> show a history of collectable receivables </li><li> maintain a strong credit record with lenders </li><li> resolve any complaints with business bureaus or other </li></ul><p>Link to our guide on <a href=\"http://www.novarsgroup.com/business-selling-prep.html\">Getting Your Financial House in Order.</a></p>");
new qaObj("<p><b>Tip #19:</b><img src='/images/folder.gif'></p><p><strong>Important Tips Prior to Announcing That Your Business is For Sale</strong></p>","<p><strong>First, Keep It Confidential</strong><br>The decision to sell your business should be kept among yourself and other select individuals for the following reasons:</p><ul><li><strong>Avoid upsetting your employees</strong><br>Any rumors of a sale can be unsettling for any staff. Your employees want job security. Rumors of a pending sale may prompt employees to seek other employment <br><br></li><li> <strong>Keep the Competition at Bay</strong><br>Once your competition finds out that you are for sale, they might undertake moves that can undermine your customers, suppliers, and creditory<br><br>Rumors that 'you will no longer be in the business' could damage the goodwill that you have developed over the years</li></ul><p><strong>Second, Move Quickly</strong><br>Once you make the decision to sell, jump into it quickly. The longer it takes to sell, the higher chance your employees, competitors, creditors, etc., may disrupt your continued operations -- which, can hurt for sales value. Suggestions:</p><ul><li> have your financials ready for review </li><li> validate every potential buyer prior to showing them your sales sheet </li><li> make yourself available as needed </li><li> <a href=\"http://www.novarsgroup.com/contact.html\">seek professional assistance from an advisor</a> who can prepare the necessary documentation and keep things confidential and moving. </li></ul>");
new qaObj("<p><b>Tip #20:</b><img src='/images/folder.gif'></p><p><strong>What is Your Company Worth?</strong></p>","<p>The buyer's perceived value will determine the price. If the buyer thinks the price is too high in relation to the value delivered, they won't buy.</p><p>That is your challenge when setting price for your business. The price you get for your business will depend on how you market the business and to whom you market.</p><p>It is critical that you follow these two rules when setting price:<ol><li><strong>First, substantiate the true market value for your business:</strong><br>Picking a number our of the air will be challenged. You can substantiate your price by establishing a true market value on your company assets, sales, cash position, and market.<br><br></li><li><strong>Second, market your value to the right segment of buyers:</strong><br>A buyer who has a clearly defined strategy why they want your business may pay a premium over your set price. Another buyer who is only interested in your company assets may be less willing to pay anywhere near the asking price.</li></ol>");