20 Reasons You Shouldn’t Use A Broker When You Sell Your Business

Nearly 80% of all business owners, even highly successful ones, admit that they don’t have a plan for exiting their businesses.Owners often fail to make succession plans because they have assumptions about the future which may or may not be true.For example, a business owner may believe that his business will naturally pass to his spouse or other family member. What happens, though, if that designated family member is unwilling or unable to take the reins?Another common assumption owners make that causes them to avoid succession planning is the idea that they will be able to run the business until they die. They don’t put a plan in place because they don’t like to think about the possibility of having to leave the business sooner than planned, perhaps due to ill health or family problems.What happens in the absence of proper exit planning is that am owner can find him or herself in the unanticipated position of having to sell quickly, perhaps for less money than they need in retirement.Frustrated, tired, stressed, and sometimes ill, business owners who need to sell make what they feel is a logical decision and turn the process over to their local business broker.Over the years, my partners and I have reviewed over 300 selling deals and have come to the conclusion that using a business broker might be the worst decision any seller can make.We began to question the entire sales process, wondering why most businesses in America never sell, and those that do sell often do so under extremely unfavorable terms for the sellers.Looking for common threads in those deals, we eventually came to the conclusion that a major culprit hindering the business selling process is the typical business broker.This came as a surprise as we initially assumed the logical fallacy that someone with the title “broker” is sctuslly experienced in facilitating deals.The vast majority of business brokers we have run across, however, have disproved this assumption time and again.Here are just a few of the reasons that I believe you should NOT engage the services of a business broker if you are trying to sell your successful business.
Most business brokers have never owned a business themselves.
They are often more motivated by commissions than they are by doing what’s right for both buyer and seller.
In most states, brokers are not required to have any training, licensing, or continuing education, unlike real estate or insurance brokers.
Many of them are super at selling their services, but poor at actually providing those services once you’ve paid.
They could care less if they get referrals, so they don’t care if clients complain about them to others.
A lot of times they are simply lazy and don’t do much of anything to help the seller.
Many brokers lack basic financial literacy, business intelligence, and organization that is essential to a successful outcome.
They don’t know how to plan and excute a successful sales strategy.
They try and cover their lack of knowledge and training with slick self-serving rhetoric that makes them look better than they really are.
Many brokers get into business because they’ve failed at other ventures.
They often have no clue of how to properly valuate a business, thus potentially cheating the seller out of thousands of dollars or causing the sale to drag on longer than necessary.
They don’t understand risk.
Often business brokers let sellers think a business is worth whatever the seller wants, however unrealistic that figure may be, just to get the listing. They then pass the buck to the potential buyer, who is made out to be the bad guy for showing the seller the business isn’t worth anywhere near that much.
Business brokers often ignore confidentiality agreements.
Many are willing to lie, as long as it serves their purposes.
Commission-hungry business brokers are obsessed with getting mass listings because they know that without a listing there is NO possibility of getting a commission.
Focusing on mass listings means they don’t have the time to push the listings they get, causing listings fall through the cracks.
Many business brokers don’t understand due diligence.
Most brokers will never tell a seller the truth about their success rates: 87% of listings NEVER sell at all, and of those that do, 3 out of 4 FAIL to meet the sellers initial goals. Sellers have less than a 4% chance of a successful exit.
Brokers have been known to lie about their personal track records. Many brokers are lucky to complete just 2 successful deals in a year, much less the 10-20 about which they will brag to you.
These are only a few of the reasons why I urge potential sellers of businesses to avoid using business brokers.Instead, it is much better to seek out the advice of a business acquisition specialist; someone who has experience in the process of buying and selling businesses, who thoroughly understands valuation, and who is not focused on getting as many listings as possible but rather on the needs of the seller and buyer.Having such a mentor can assist you in developing a viable business exit plan. This means that you will not be forced into making hasty decisions if you are forced by circumstances to sell.A good business acquisition expert does not work on commissions, and has the best interests of both buyer and seller in mind. He or she also has a tried and true process for selling and a verifiable record of success, along with references and client testimonials.My suggestion is that before you ever need to sell, you should contact a business acquisition expert first. Most selling specialists are more than wiling to give you a free telephone or in-person consultation.Prior to this meeting, be sure to write down all your questions, your goals for the sale, even your fears and apprehensions about the process. This will help you make the most of this initial consultation and get a gut feeling for how this particular business solutions provider operates.If your primary reason for meeting is to ask for business succession planning assistance, discuss fees and expectations and ask for some professional references.This will help you determine if this is the kind of person you want partnering with you on one of the most important changes you will ever experience in your life.If you’d like to learn more about the selling process and how to be successful with it, please download the free resources on the website listed below or email me at [email protected]

Things to Remember When Applying for International Student Loans

The United States is regarded as one of the countries with the best education systems, and it is for this reason that there is a continuous growth in the number of foreign students applying to study in America. Meanwhile, there are also several American students who wish to study abroad. These two groups of students are actually eligible for what is called an international student loan. International student loans are a kind of customized personal loans which are granted to both international students in the US and Americans enrolled in foreign schools.International student loans can be offered either in the form of government loans or private personal loans. Such type of loans also needs the presence of an American consignee. While an international loan is a lot similar to many other forms of student loans, it is especially applicable for the students who are looking to obtain higher education in more specialized fields, such as the arts, commerce, engineering, science, and medicine. As you may already know, loans offer very significant financial help to foreign students who have the desire to achieve better and higher education overseas.The process of application for international loans is actually very specific and can also be very strict. It is therefore necessary that students looking to study in the US follow the procedures and comply with all the requirements in order for their application to be accepted and be processed in a timely manner. First and foremost, the foreign students who can avail this kind of loan are those who intend to enroll in an authorized school. They should also present an American citizen or perhaps a permanent US resident who will co-sign with them in the loan application.The first step in the application for international loans is to fill out an application form including the signature of the consignee. Keep in mind that a student will only be approved of this loan if they have exhausted all their options, such as scholarship grants and other personal resources. It would be detailed in the application why they are trying to avail the said student loan.When the application for international loans is approved, the student will be notified right away. In terms of the repayment, the students have a choice of deferring the payment during their full-time enrollment, as well as six months after the completion of their studies. Students are also given a maximum of 20 years to pay back the money they loan, with a monthly due payment. It should also be taken note of that international loans are valid for a year only, so students who have plans of studying for more than a year should notify the student financial aid department for the reapplication of the student loan.There are various programs being offered for international student loans, so it will be best that foreign students do a little research on their options so that they can end up with the one which can be most beneficial to them.

What’s With All the Secrecy and Trickery in Many E-Mini Trading Rooms?

If I am having a slow day I often will cruise a few e-mini trading rooms just to see what other individual traders are doing. Generally, these visitations occur when the market is in a very tight bracket and I am just plain bored. While I have not been in every one of the 600 rooms on the Internet at present, I have certainly noticed some similarities among some of the big ones.Granted, the CFTC has played some fairly rigorous requirements (though these regulations seem to be lightly enforced) on just how trading rooms report profits and advertise their services. For this reason, many rooms currently do not make specific trades but issue general guidance when a high probability trade is developing. In general, I have been unimpressed with the trading rooms I have visited to date. There may be some great trading rooms out there and I have just not visited them yet.I have a basic problem with trading rooms, in general. The fact of the matter is that they don’t teach you to trade. It is my opinion that the goal of every trader should be to acquire the skills to trade independently without fear or trepidation of making mistakes. A well-trained trader should be able to trade without a third-party making questionable trade calls. In a trade room where the lead trader makes all the calls, you are only as good as the lead trader calling trades. That is not a position for a winning trading experience.I thought quite a bit about transparency in trading rooms. It seems to me, that trading rooms lack proper transparency when disclosing trades and trading methodology. This makes sense, since this closure of their trading methodology would render any trading room useless. If you understand how the trader is initiating trades, you really would not need him or her.I think transparency is important; so I set out to remedy this situation in my trading room. I run a very small room and like to keep it that way as I allow everyone a microphone and the opportunity to question when, why, and how I am initiating a trade. In my opinion, a trading room is a great educational tool to learn to trade; it is not a great place for most people to make money.Having heard all the complaints from past students about trading rooms I made the decision to trade live money with my DOM up. This is a bit of a risk, because the results of my trading are there for all to see. Thankfully, I have a very high winning percentage and this strategy has worked out well for me. I see it as a chance to show off my trading ability, not hide what I am doing and how I am finding high probability trades.Oh, I should mention that I don’t win every trade and my losses appear on my DOM for all to see. Further, I have an occasional losing day and that information is there for all to see. It can be a bit embarrassing, but the transparency of the room is appreciated by all traders and I find them consoling me when I have made a trade that did not come to fruition.My recommendation is to find a solid room where the lead trader is making trades that you can verify by the information provided. If a trader won’t show his or her trading results, there must be a reason. It’s up to you to find out that reason.Finally, a real bone of contention is sharing past brokerage statements to ascertain some sort of track record. Several years ago I began providing brokerage statements showing my gains for all to see. There have been some unbelievable months and some months that were dogs. This is the nature of trading, as long as your equity curve is rising nicely everything in between is just part of the process.My advice? Find a room with transparency and one that will teach you the system the lead trader is employing, otherwise you are wasting your time.

Are You Choosing the Right Stock Market Advisory Company

What do you do if you want to learn driving a car? You will try to find an expert teacher, isn’t it? You do not want to avail the services of a novice individual to help you out, but a professional person can provide you the vital tips and most importantly guide you efficiently. Similarly, when it comes to investing in the stock market for the first time, you require a knowledgeable advice to attain your financial goals and get profitable returns.

If you are a beginner, then it is quite obvious that you may be having no information about the process of buying the right shares in the market. In such a situation, getting the right tips from an experienced financial advisor or a registered advisory company will truly prove to be a great blessing in disguise. However, there are some of the important things that have to be kept in mind while choosing the top stock market advisory company, which are as follows:

How much assistance do you actually require?

Before you make up your mind to hire an advisor, it is imperative that you must first decide about the kind of service you require from them. You may need their help at the beginning or during the time of any issues. This is because an advisor has to formulate a map according to your requirements. Hence, it is suggested to ascertain your needs first and then take further action.

Choose a top ranked advisory company

It is a very important point that has to be taken into the consideration. Availing services of the well known advisory company or a financial advisor is an absolute necessity. Make it a point to carry out a proper background or research work about the company. Check out their credentials, reputation, experience, etc before hiring them.

Asking for a sample financial plan initially makes sense

When hiring a financial advisor, then do not forget to ask for sample plan first. It is imperative to note that there is no such thing called the perfect plan. A sample plan will help you to determine whether an advisory company is actually making sense according your requirements or not.

Conclusion

The financial planners or advisory companies can really turn out to be the greatest asset for you if you choose the best one. They are just like the professional sailors who can help you out to sail through stock investment related problems quite efficiently.

Deepak is a financial advisor who likes to provide quality tips to the people facing any issues with regard to investing in the stock market. He likes to keep himself updated about the stock market by reading articles, news and blogs, etc.

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