Three Tips on Selling Business Successfully
1. Presenting the maximum turnover
In order to reduce the taxes, some business owners will not deposit all the income of the small business in the bank, or “enter it into the account book”. It was considered smart to do so many years ago, and could really save a little and reduce some taxes. But now, it doesn’t work. Currently, the most effective and direct way is to display to the buyer all your income and to provide a transparent and clear account book. It’s evident that only in this way can you sell your business at an ideal price. You shall present the maximum profit and income on the account book, so as to enhance the price of your business.
2. Reading 101 Ways to Avoid Taxes
Do not make your turnover small in order to pay lower taxes. Your potential buyers, their accountants, lawyers and the bank managers would only focus on the financial statements to determine the value of the business, and would not develop an interest in the “cash earnings off the financial statement” and words of the “great potential of the business”. The additional expenditure arising from the reasonable tax evading, such as car buying in the company, wages paying to the business owner, contribution super paying and so on, can be added to the business value when selling the business. It is suggested that you should read more books about taxation or engage a financial accountant or other professionals to make a plan for you.
3. Ensuring a safe property tenancy term
A safe tenancy term is an important element to ensure the sustainable business operation. In case the future sustainable operation cannot be guaranteed, the business will not be sold out even it is the most profitable in the world, or it will not be sold at a high price. The safe tenancy term refers to that there is sufficient time from the expiration of the lease to ensure the normal operation of the business. Generally, it is very necessary to obtain a long tenancy term before selling the business, because it can maximize the value of your business. Hence, do not be afraid of selecting a new lessor, and even you can re-choose the property if necessary.
Three Tips on Buying Appropriate Business
1. Getting clear whether your visa can be used to buy business and which business can buy
Generally, the regular business buying will take four to six months. Therefore, you shall firstly get clear whether your visa can buy certain business. A wrong start is only a waste of time. For instance, the student visa usually not suitable to buy a business; the different business visa has different requirement to buy a business; the POST business is only intended for the Australian citizens. The visa status is very important. Remember to consult the migration agent about it before buying business. Look before you leap.
2. Avoiding private deal to mitigate risks
Australia is a legal country, providing a complete set of legal system to regulate the business operators. In the private deal, the buyer shall be on his or her sole risks for he or she has no idea of which legal means can be used to protect himself or herself. The business to be sold by the business broker has passed the first round of review, thus conforming to the law of market. For instance, if the business seller asks too much for the business, business information is not complete or honest, then the business broker will not get involved in such business dealing. As proved by many cases that the buyers engaging in the private deal will mistakenly think they get a bargain at first but find themselves swindled later. They will not know that such business is the rejected business by the broker.
3. Calculating the investment on the business
When buying business, the most common mistakes the buyer will make are to underrate the total investment needed or to overrate his ability to pay. To avoid the two mistakes, you’d better consult the mortgage broker or bank so as to determine the business you can buy according to the investment budget. Familiar with the matters about business buying, the experienced banking and financial professionals will provide you plenty of useful suggestions and help for free in appraising the value of business. They will not loan to you if they find your business unable to repay the loan.
