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Business Valuation Multiples – How to Choose the Right Multiple For Your Business

Using a “Multiple of Earnings” is the most popular way to value small businesses that are for sale.

But that raises a difficult question: By what number do you multiply your earnings?

Much of what has been written about valuation multiples states that most businesses are sold with a multiple that ranges from 1-5.

But in truth, smaller businesses that sell for 4 or 5 time their earnings are rare – at least when it comes to owner-managed businesses.

In smaller businesses with an owner’s benefit of $50,000 to about $250,000, the owner will usually also manage the business on a day to day basis. The buyer is in truth “buying a job”. Their return on investment is much lower because they are investing not just there money but there time.

In larger businesses, where there is enough cash flow to hire a full time, professional manager the owner can make a return on his investment without a full time commitment – so that business will be valued at a much higher level. That’s not to say you can’t sell your business for a multiple of 4 or 5, but in my experience the vast majority of smaller businesses sell for a figure much closer to 1 to 3.

So I suggest you start with a multiple of 2.0 and use the list of factors below to adjust the multiple up and down based on your specific situation and you company’s performance.

This is just a partial list to get you started, there are bound to be unique factors that affect your business that are not listed here.

Positive Factors That Can Increase the Multiple

*Sales and profits have risen consistently each year for at least 3 years.

*A significant amount of sales come from repeat customers. Even better is revenue that comes from automatically recurring charges. Web hosting, alarm monitoring and self storage are few examples of business that may have reliable repeat revenue each month.

*Proprietary products, patents and/or trademarks.

*Exclusive rights to a territory.

*Less warranty exposure than is typical in your industry.

*Management And /or employees will stay on after the sale. The more experienced or uniquely talented these people are, the better.

*The business is a franchise of a well established – And well known – company. For many buyers, the support and training they get from the franchisor is a major plus – one they are willing to pay for.

*Your industry is growing and the future appears bright.

*Important ratios such as profit margin And cost of sales are above average for you industry.

*You are offering above average financing terms

For these last two items you should check with any trade associations that serve your industry. They may be able to provide you with facts and statistics that can help you show the buyer that your business is part of a growing industry or trend.

Negative Factors That Can Decrease the Multiple

*Sales and profits have been trending down recently.

*Sale and …

Part-Time Lawn Mowing Business While Working a Regular Job

No matter what the economy, the grass still grows. There is always someone near by who needs their lawn mowed and can not do it themselves. These folks have a problem and you, the full-time employee wanting to start a part-time lawn mowing business, have the solution. They can pay you to mow their yard. Problem solved.

I often get the question of whether you can start your lawn mowing business part-time in the evenings and on weekends and keep your full-time job. The answer is a big yes!

The question is can you do it? If you have lots of energy, enjoy being outdoors and working in your yard, and can handle just 5 to 10 extra hours of physical work each week, you can start a part-time lawn mowing business and keep your regular job.

People who work 12-hour rotating shift schedules are in a terrific position to run a lawn mowing business part-time while keeping them full-time jobs because they have so many days off.

Marketing
First, you need to find some customers. Write a flyer using word processing software, print it, take it to your local copy shop, have 25-30 copies made, and distribute them around your neighborhood within walking distance of your house. You may want to use a half-page flyer so you can distribute to 50-60 houses. Include what you offer the prospect (lawn mowing, edging, cleaning off the concrete), your name, best phone number to contact you, your address so they know you are a neighbor and how much you charge. Since you are new to the business charge on the lower end of the average rate other lawn care professionals charge in your area. Five dollars cheaper than average may get your neighbors to stop using someone out of the neighborhood and start using you instead.

Another reason to start with your neighbors is they know you or know of you and we all want to help other people, especially people we know. Since these folks are close by, you get to go out, knock on doors and meet your neighbors while marketing your business to them. Smile, introduce yourself and tell them which house is yours or what street you live on and get to know a little about them and some things you might have in common. Hand them a flyer at the end of the conversation and move on to the next house.

Keep this up until you have at least one person ready for you to go home, get your equipment right now, come back and work that day and are pulling out their checkbook to pay you. If this happens, stop marketing that day, service your new customer and earn some money. Continue marketing the next day.

When you have the number of customers you think you can handle, stop marketing daily and only doing a little occasionally or when someone asks for your information. You will need to keep a few flyers on hand to give …

Locate People Without Paying Any Money

I can show you hundreds of way to locate people without paying any money; however I will pick only one effective method and elaborate on it. Take a few minutes to read through quickly and you will find this page more useful than you imagined.

Before I show you the free method let me highlight some few points on why you should consider paying some money when trying to locate someone.

Most of the websites or services that offer paid people locator services have millions of profiles from people who willingly provide and update them regularly. These companies pay these people for maintaining their profiles on the sites. Essentially this means then that you are most likely to get up to date information and probably even more elaborate info that you can use to your heart’s content.

On the flip side, these tend to have limited profile when compared to those sites that collect information the search engine way i.e. by crawling the web.

Now you probably realize where I am taking this. My recommendation is free people search finders or search engines. I can mention a few here but I do not mean to endorse them or anything – just to give you an example of some few sites to consider. These include, Zabasearch, Whitepages, Wink to name a few.

Some of these sites will ask you to sign up before you access their database. I say go ahead and do it – you have nothing to lose. Actually this will help you later on, say for example, the person you are looking for is also looking for you. So leaving a digital trail is always a good idea when looking for a way to locate people without paying any money.…

Avoid Bad Business Partners

Many people try to establish a Business Partnership with somebody and they get taken advantage of and screwed over! People are too trusting and naive and believe that a friend or relative is not going to take advantage of them or harm them. But no one can be trusted in business. No one.

Be careful and alert and aware of everything that you see, experience, and hear from your potential business partner or business partner. Look for the red flags that warn that something is wrong and that you are about to be taken advantage of.

Know what steps to take to protect your financial interests and determine whether or not your business partner is a scammer! Know what to do to protect yourself and your financial interests. Establishing a Business Partnership is very serious and challenging.

I got scammed and screwed over by my Business Partner. Do not become someone's financial victim. I got taken advantage of and betrayed by someone who I knew for most of my life! Imagine that. We were really good friends. I mean really awesome friends.

He used to be a true friend who would take me everywhere and invite me everywhere and defend me from everyone. He would lift up my self-esteem and lift my spirits. Then he betrayed me and turned on me. And I never saw it coming. Never.

I was deceived little by little. I was vulnerable because I fully trusted him due to our Best Friendship. He used that against me. It was a very secretive and subtle economic agenda. I will share with you what happened.

He proposed to me a Business Partnership with a Business Goal that was convincing and realistic and achievable. Everything made sense. So we started working on the Business Goal. But something minority was always wrong: he would not meet up with me often to work on the Business Goal.

I spent countless hours researching the Business Industry and Business Plan we were working on by myself and he would only meet up with me sometimes. At first he would regularly work on the Business Objective with me and we would do the work together. Then he started coming to work on the Financial Goal less and less until he would only rarely show up to work with me.

Me being naive and ignorant and dumb I continued to research the business even though he did not show up and suddenly I had all the information I needed. The time had come when we needed to start putting money into the business. He refused to put in a single cent into the Business Goal.

I still did not want to see how things were because I was dealing with my Best Friend. But as months and months passed by and then two years went by and he still did not want to put any money into the business I realized everything. I came to terms with how things were. My Best friend had …

Starting a Hip Hop Blog – 5 Easy Steps to Rap Profits

Are you a hip-hop artist, producer, entrepreneur or fan who wants to make money in the rap industry? Have you ever thought about starting a hip-hop blog? Believe it or not, hip-hop blogs are becoming more and more popular, and there are plenty of opportunities for hip-hop bloggers to make money online. If the idea of getting paid to share your thoughts and opinions about rap is music to your ears, here’s how to get started.

Step 1 – Choose a Domain Name and Web Host

A domain name is the website address that people will use to visit your blog. In general, you will want to choose a domain name that is easy to remember and gives people an idea of what type of content they will find on your site. Examples of things you may want to use as a domain name are:

  • Your stage name (if you are an artist)
  • Your company name (if you have an entertainment company or independent record label)
  • Your blog name
  • Catch phrases or descriptive names

Chances are, your first option for a domain name will already be taken, so be prepared with alternates.

Once you find an available domain you like, you will need to register it quickly to prevent someone else from using it. There is a small domain registration fee, but many web hosting services will waive the domain registration fee when you sign up for hosting.

Step 2 – Install WordPress

WordPress is blogging software that has been used to power over 200 million websites. There are a number of reasons WordPress is so popular:

  • Affordability – WordPress is 100{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} free
  • Ease of Use – It does not require any computer or programming skills to install or use
  • Highly Customizable – There are thousands of free themes and plug-ins available for download
  • Supported – WordPress has one of the largest development communities of any open source software, so it’s easy to find free technical support online

WordPress can usually be installed in less than five minutes through your web hosting control panel. Once installed, you can customize your blog by downloading the hip-hop theme of your choice and installing whichever plug-ins you want to use through your blog’s dashboard.

Step 3 – Start Publishing Hip-Hop Related Content

Once you set up your blog, you will be ready to start publishing content. In general, you will want to publish content of interest to hip-hop fans. This could include:

  • Hip-hop related news
  • Music, videos and images featuring rappers
  • Reviews of new rap music
  • Information about upcoming hip-hop events
  • Links to other hip-hop blogs

If you are a rapper or producer, you should have no problem creating content based on your own music. Similarly, if you are starting your own entertainment company or independent hip-hop record label, you can blog about the artists you’re working with. If you are not in the music business at all, you can spend a couple of hours each day reading other hip-hop blogs and write …

Semi Truck Finance – Bad Credit

Did you know that if you are interested in purchasing a semi truck, it is now easier than ever to find the perfect one for your business, dealership, or fleet, even in these tough economic times. If you are a company driver and you are tired of all the nonsense you have to deal with working for someone else, you should definitely consider getting your own transportation business. Besides, why make money for someone else?

Go out there and get your own vehicle. Even with bad credit you will be better off with your own business. Commercial truck financing with bad credit provides trucks for acquisition & buy out of equipment that were repossessed before.

Loans for folks with bad credit helps borrowers with the finances who want to buy a truck. Commercial loan financing can help you with the loan that you need.

If you have bad credit there are many places that can arrange a loan for you. The commercial truck loan should be one that you understand and one that you are most comfortable with. Experienced companies understand the finance market and what is needed to get you low-interest rates and fast approvals. Most trucking companies have programs to train you to be a trainer but you will need to have a certain amount of truck driving experience under your belt. How the truck driving industry is changing and the myths associated with the industry are exactly what they are, just “myths”. Whether you are a seasoned owner operator, a company semi driver or a semi driver who has just obtained a CDL license, there are thousands and thousands of off lease semi’s and repos waiting for you to take over the payments. Some drivers own a semi and are their own boss; others drive for others and have set hours and destinations. Ask yourself this question; what kind of trucker do you want to be?…

The Goal of Insurance

Not because you are insured means that you are going to act recklessly on the roads or in general, life. There are some companies which give you part of your premium when your insurance has not been used for a specific period. To make your task a lot easier, there are a number of online insurance websites which compares different rates of insurance with specialist criteria to give you the best result. When shopping for any type of insurance compare which company has a higher claim bonus.

It is a good habit to shop around when looking for a good motorcycle auto insurance. It is obvious that each insurance company will differ in various things, such as, rates and coverage. For this reason you are to do all the necessary research and also evaluate yourself and see what would best fit you. That is the main purpose. It makes no sense in getting a plan which is not only over your budget but also does not cover accidents which are more likely to happen in your specific case as compared to someone else. Some may have more coverage but may cost more and vice versa. The insurance company is trying to determine both how much you will be using your vehicle and how much experience you have on it. This is very important to the insurance companies because they realize that your chances of having an accident will increase based on how often you drive. The years you have been using your vehicle or a vehicle will also be contributing to the determination of your rates.

Very often people get confused on this topic but it can be simple once some research is done or an insurance agent is consulted on the matter. There is always help out there waiting for you to ask, whether it be online or in person, you have the chance to learn and educate yourself on the variable that make a significant change in your insurance rate. Nowadays people are becoming more and more aware of the necessity of their insurance and the important role that it plays in their lives.

It is also important that you consult with an agent if you have further questions or would like to clarify something you read online. When it comes to your insurance you have to be dead on, a mistake can cost you money and in these hard financial times I think it is safe to say that we would like to save every penny. Keep note of what affects your insurances rates which type it may be and try to follow them so that your rates may be lower. There is always help out there waiting for you to ask, whether it be online or in person, you have the chance to learn and educate yourself on the variable that make a significant change in your insurance rate. It is always best to do your research yourself even after consulting with a professional, that way …

Insurance Claims for Orthodontics

Orthodontic billing is one of the things that gets questioned all the time and in all truth, it probably deserves its own book. There are a number of reasons for the confusion that crops up between providers and insurance personnel whenever orthodontics comes into the picture. However, it’s just tough to make nifty catch-phrases over something that should be simple and relatively mundane. As we talk about some of these items remember that we are coming to you from an insurance adjusters point of view.

How Does Insurance View Orthodontics?

Let’s start with the insurance side of the coin. For an insurance company, orthodontics can be a big pain in the you know what. We have multiple providers supplying multiple types of services and billing for them in a myriad of billing styles. Some bill all up front. Some providers charge their patients a certain amount based on what their insurance will pay. Some providers have adjustable payment plans to allow patients to gradually pay for services over the years. All of these options and more make orthodontics billing more complicated than it should be.

From the insurance side, orthodontic benefits are strictly limited. Almost every plan we’ve ever seen has a maximum lifetime benefit. Note that there ARE exceptions to this rule, but an open-ended orthodontics maximum is an extremely rich benefit and is definitely being seen less and less these days. These benefits are usually applied to the individual patient, but may also apply to the entire family in some cases. For example, little Susie Jones who has a $1,000 lifetime maximum benefit for orthodontics goes to an Orthodontist and has $1,500 worth of work performed. The insurance company pays out based on their coverage level – usually 50 percent or 60 percent, which would make the payment in this situation $750 or $900 respectively. If Susie needs an additional $1,000 worth of work, she will only receive $250 or $100 – again dependent on coverage level. If the $1,000 orthodontic lifetime maximum applies to her entire family, then there will be NO other payments for any other members of her family. This is the starting point of view for insurance companies and different companies have different payment philosophies based on this starting point.

How Does Insurance Pay Orthodontics?

Some companies are just tired of dealing with orthodontics. They acknowledge that there is a strict limit put on orthodontic benefits, so they don’t even bother messing with it. They’re doing this because somebody somewhere made the decision that it costs more to try and review these claims than that review would be worth. Some companies take the opposite approach, since orthodontics can be such a big-ticket item. They’re going to require you to submit a logical, well-thought-out plan documenting every step of the process in that patient’s treatment. Then there’s another approach still in which the insurance company tries to control these treatments to ensure that the patient is really getting his money’s worth out of his …

Make Money Writing Articles – 5 Ways

Writing articles is a great way to make money online. However most of your clients at the lower end of the market tend to be stingy with their budget. Your articles will be much more profitable if you think about what you’re doing and find ways to maximize your profits.

Let’s look at five ways.

1. Sell Your Articles: Offer Them for Sale on Your Sites

The more prominent and visible you are on the web, the more money you’ll make from your articles. This is common sense. It’s the old saying: it’s to you now and who knows you.

Therefore, write your articles in batches, and offer them as packages on your website (or sites, preferably, as your business grows). As long as you’re writing in popular topic areas, you’ll sell exclusive articles very easily, without doing much advertising or promotion.

2. Build a Group of Article Buyers

Someone who’s bought from you before, is much more likely to buy from you again. Therefore make sure that you keep a contact list of the people who’ve purchased articles from you.

Whenever you write a new batch of articles, contact the people on this list. Remind them that the articles are exclusive, that they have complete rights to them, and that you’re giving them the first refusal on this new batch.

If you’re a fast and good writer, you can make an incredible income, just selling original and exclusive articles to your own group of buyers, because they depend on your for quality content.

3. Use Your Articles on Your Blogs and Sites

It makes sense to promote your article writing business with articles.

For one thing, each article acts as a writing sample. While it’s true that you can’t resell the articles you’re using yourself on your own blogs, each article you write acts as a gateway to attract visitors from the web, and a good proportion of those visitors will become buyers.

4. Combine Your Articles to Create Ebooks and Reports

Keep an eye on the news. What’s popular?

Whenever you see something: a product, an event, or a service which is making news, write a batch of articles which are related to it. Your buyers know that news sells — so you’ll sell these articles very easily.

Here’s a simple way to get more money from batch of articles: compile your news-related articles to create ebooks or short reports. You can triple what you make for your articles if you do this.

5. Build a Mailing List With Your Articles

Staying in touch with people who’ve purchased articles from you is your first priority. Create a mailing list, and offer your buyers an incentive to join. (First refusal on your new articles is all the incentive you need.)

When you have a list, you can get in touch with people who’ve purchased from you before. You’ll find that you will have high conversion rate whenever you send out a new mailing.…

Bowflex Dumbbells – Are The Bowflex 1090 Dumbbells Worth The Money?

The Bowflex dumbbells are quick and straight forward to use and most fantastic of all they require just a fly’s speck of space compared to the chunk of space that conventional dumbbells take up. To set these dumbbells all you gotta do is twist the dial to the weight you would like and you’re all set, simple as pie, and so fast. Ready to swap weights? Position them back and twist the dial again, pick them up and go again.

The 2009 models replaced the problems that the 2008 models had. They replaced the plastic parts with Metal parts making them more well-built and they are long-wearing if used in the right way. Unlike traditional weights, it is not advised that you drop these more than around five or six inches after a tiring circuit of dumbbell exercises. It makes life a whole lot better when you can change weights so fast.

Are Bowflex Dumbbells Worth The Money?

Weights are not cheap and if you were to get them each separately it would cost you more money than purchasing the Bowflex dumbbells also they take up much less area and they look cool. Are the Bowflex 1090 dumbbells worth the price tag? Because they are sold separately. If you need a good piece of exercise equipment that is able to workout your entire body and only takes up a couple feet of space then I think the dumbbells made by Bowflex are a good choice. If you’re able to exercise your entire body at home you won’t need to buy an expensive gym membership every year.

There are two models to select from the Bowflex 1090 dumbbells and the Bowflex 552 dumbbells. For the differences between the two models keep reading below. In both sets of weights the weights themselves are covered in a durable moulding so there is no more banging of weights. The major differences are that the Bowflex 552 has a round, rubberized grip and goes from 5 pounds to 52.5 pounds and is able to go up in increments of 2.5 pounds. The Bowflex 1090 dumbbells go from 10 to 90 pounds in 5 pound increments and has a triangular handle without a rubberized grip.

Bowflex Dumbbells 552

The Bowflex 552 dumbbells go from 5 pounds to 52.5 pounds and adjust in 2.5 pound increments up to the first 25 pounds. They have a circular grip that is rubberized and comfortable. They combine over 15 sets or 30 weights into one using a unique dial system. A broad group of folks prefer this set to begin with and if they continue to grow and build and notice that 52.5 pounds on each arm is not enough they then are able to get the Bowflex 1090 set goes in 5 pound increments all the way up to 90 pounds per arm. Generally, 52.5 pounds for each arm is plenty for most folks. But if you are remarkably strong or you are near the 50 pound max of …