Listen to the Lea Marquez Peterson Radio Show!
All past shows can be listened to at http://www.mediafire.com/?sharekey=9b98a37ee772fb2361d4646c62b381cbc3692154b4a833eab8eada0a1ae8665a.
Sunday, August 16, 2009
Sunday, May 17, 2009
Lea's Radio Show 5-8-09
The Lea Marquez Peterson Show is produced every Friday from 5pm - 6pm on TucsonsJolt1330AM.
Tuesday, May 12, 2009
TucsonBizForSale.com Radio Show
I've recently gone solo on a radio show every Friday from 5p - 6p on Tucson's JOLT 1330AM. The Lea Marquez Peterson Show - catchy, isn't it? :) Previously I was on the air every week with my friend, Nancy. She's decided to go a different direction - more an entertainment focus. While I'd like to be entertaining too :) , I want to talk about business and public policy topics.
The show will be presented by TucsonBizForSale.com and Greater Tucson Leadership. Every other show will discuss business issues such as financing, marketing and promote business opportunity listings for our firm. The remaining Fridays will focus on critical issues that face our local region and that are discussed in the Community Leadership program hosted by Greater Tucson Leadership (www.TucsonLeadership.org).
I'm always looking for topic ideas and guest speakers. Please listen on your drive home each Friday from 5:00p - 6:00p on 1330AM. If you are not local, you can listen "live" at tucsonsjolt.com. I plan to eventually have each show on our website - www.TucsonBizForSale.com also.
The show will be presented by TucsonBizForSale.com and Greater Tucson Leadership. Every other show will discuss business issues such as financing, marketing and promote business opportunity listings for our firm. The remaining Fridays will focus on critical issues that face our local region and that are discussed in the Community Leadership program hosted by Greater Tucson Leadership (www.TucsonLeadership.org).
I'm always looking for topic ideas and guest speakers. Please listen on your drive home each Friday from 5:00p - 6:00p on 1330AM. If you are not local, you can listen "live" at tucsonsjolt.com. I plan to eventually have each show on our website - www.TucsonBizForSale.com also.
Social Media
Whew! Someone just reminded me to update my blog. Where has the time gone? I attended a workshop today at NAWBO on the importance of social media. I get it.... :) I have a presence on Facebook, LinkedIn and a Blog. Thought I was doing pretty well until someone reminded me you have to keep up with it all.
The workshop led by Cristie Street of Nextrio was very interesting. I'd like to keep a business presence on the net and am not so interested in using it to reconnect with high school friends. Though that's been fun too. So - the dilemna business owners face is how to do exactly that. How do I "brand" myself on the internet?
If you haven't taken the time to create a facebook account - do it now. It's free. I'm connecting with many clients that way and use it to promote many events. I'm still "discovering" twitter... do people really want to hear what I'm up to or thinking daily? (Twitter is free too, by the way).
With this economy - grassroots marketing is so important. If social media allows me to get my name out there and it only takes time (rather than money) - I think its worth investing.
The workshop led by Cristie Street of Nextrio was very interesting. I'd like to keep a business presence on the net and am not so interested in using it to reconnect with high school friends. Though that's been fun too. So - the dilemna business owners face is how to do exactly that. How do I "brand" myself on the internet?
If you haven't taken the time to create a facebook account - do it now. It's free. I'm connecting with many clients that way and use it to promote many events. I'm still "discovering" twitter... do people really want to hear what I'm up to or thinking daily? (Twitter is free too, by the way).
With this economy - grassroots marketing is so important. If social media allows me to get my name out there and it only takes time (rather than money) - I think its worth investing.
Sunday, September 28, 2008
Business Planning for the Entrepreneur
The radio talk show I co-host "The View From Here Show" relaunched today on Newstalk 790AM KNST. Nancy Scilingo and I had a lot of fun debating politics and other current events! Tune in every Sunday from 11am - 1pm.
One of our guests today was Debbie Chandler from the Microbusiness Advancement Center (MAC). I'm a big supporter of MAC! They provide a 12 week business planning course that is excellent. I refer a number of clients - those that want to start a business and those who have already launched their business who need to reevaluate their business plan.
As a business broker I meet with many small business owners who launched thier business based on their "passion" or expertise. Most have not drafted a "plan" before starting a business. Typically it is evident in their lack of or the quality of their financial statements and/or their marketing plan. A business planning course at MAC helps them to assess their business as well as identify resources in the community that can help them grow their business. They also offer individual workshops on pricing your product, and marketing plans among others.
Take a moment and visit www.mac-sa.org to check the class schedule. I recommend it!
One of our guests today was Debbie Chandler from the Microbusiness Advancement Center (MAC). I'm a big supporter of MAC! They provide a 12 week business planning course that is excellent. I refer a number of clients - those that want to start a business and those who have already launched their business who need to reevaluate their business plan.
As a business broker I meet with many small business owners who launched thier business based on their "passion" or expertise. Most have not drafted a "plan" before starting a business. Typically it is evident in their lack of or the quality of their financial statements and/or their marketing plan. A business planning course at MAC helps them to assess their business as well as identify resources in the community that can help them grow their business. They also offer individual workshops on pricing your product, and marketing plans among others.
Take a moment and visit www.mac-sa.org to check the class schedule. I recommend it!
Thursday, August 21, 2008
Financing your business acquisition
I've met with several business owners over the last week who have expressed the same concern - how will a buyer finance my business acquisition?
Over the last two years, a number of buyers were utilizing home equity loans or lines of credit to purchase smaller businesses. Unfortunately, this opportunity has dried up in the current marketplace. In addition, in this economy, it has been more difficult to receive a conventional bank loan.
Our firm has a few new agents (business brokers) and we are in a training mode. Recently, after sitting with a local commercial banker and one of our new agents and discussing financing challenges, I sat down and created a simple chart for our team's use on business financing. I explained that as business brokers we need to be as creative as possible. "Financing" a business may include one of the options below or a combination of a few. The best option is the one which fulfulls the Seller's needs with the Buyer's wants.
CASH - Typically Sellers desire all cash. However, during our initial meeting with a Seller we discuss the tax consequences and the possible advantages to other options. We also discuss the challenges faced by Buyers in pulling their cash out of homes, 401K's etc without tax consequences.
SELLER CARRYBACK - This option typically requires a buyer to put 50-60% down with the Seller acting as the lender for a 3-5 year period with an interest rate of 8-12%. Sellers are always concerned with the risk and there is risk in this option. However, a buyer can sign a personal guarantee, a lien can be placed on the assets of the business and perhaps additional collaterol can be provided. With a seller carryback, we may be able to get a Seller closer to their asking price. The Seller will financially qualify the Buyer and will review their personal financial statements and credit scores.
HOME EQUITY LOAN or LINE OF CREDIT - This was a great options a few years ago due to the tax writeoff on the interest and the length and rate of the loan. However with the current housing market, Buyers are having difficulty acquiring this option.
CONVENTIONAL LOANS - Banks generally require 10-30% down. The loan term can range from 20-30 years. Depending on the size of the business, lending decisions may be able to made locally. Generally for real estate transactions only.
SBA LOANS - The Small Business Adminstration provides an opportunity to a new entrepreneur. They will lend on non real estate transactions however it is important to have 3-4 years of experience in the field. In addition, a thorough business plan is required and completion of a very detailed application. The term can range from 20-30 years and the rates are a bit higher due to the risk.
HARD MONEY LENDING - This option is generally for those who don't have a lot of options. These funds are short term and with high rates. For those with bad credit, bankruptcies or very risky ventures.
VENTURE CAPITAL - We receive requests to find venture capital for firms. Typically venture capital is available to technology related companies only. Venture capital firms take a portion of the equity of your firm and require high rates of return.
BORROW FROM 401K - This is a complex process and requires a professional to assist the buyer. This typically involves forming a C corporation to lessen the tax consequence and rolling the 401K into the new company for the purpose of acquiring the business and working capital.
EMPLOYEE STOCK OWNERSHIP PLAN - This option also requires a professional's assistance. This allows the business owner to sell the business to his/her employees via an ESOP. A new owner can also participate in an ESOP for acquision purposes.
I recently listed a large business with real estate in the Tucson area. The current owner was still making payments to the previous owner and had provided a lien on the real estate. We talked at length about Buyer options for financing and will be working with the previous owner on assuming the Seller carryback loan. This assumption with 50% down should be sufficient in paying off my Seller in full. Assuming existing debt is another great angle to consider.
As you can see, there are many options to consider. As business brokers, it is our job to sit down with you, assess your needs and be as creative as possible!
Over the last two years, a number of buyers were utilizing home equity loans or lines of credit to purchase smaller businesses. Unfortunately, this opportunity has dried up in the current marketplace. In addition, in this economy, it has been more difficult to receive a conventional bank loan.
Our firm has a few new agents (business brokers) and we are in a training mode. Recently, after sitting with a local commercial banker and one of our new agents and discussing financing challenges, I sat down and created a simple chart for our team's use on business financing. I explained that as business brokers we need to be as creative as possible. "Financing" a business may include one of the options below or a combination of a few. The best option is the one which fulfulls the Seller's needs with the Buyer's wants.
CASH - Typically Sellers desire all cash. However, during our initial meeting with a Seller we discuss the tax consequences and the possible advantages to other options. We also discuss the challenges faced by Buyers in pulling their cash out of homes, 401K's etc without tax consequences.
SELLER CARRYBACK - This option typically requires a buyer to put 50-60% down with the Seller acting as the lender for a 3-5 year period with an interest rate of 8-12%. Sellers are always concerned with the risk and there is risk in this option. However, a buyer can sign a personal guarantee, a lien can be placed on the assets of the business and perhaps additional collaterol can be provided. With a seller carryback, we may be able to get a Seller closer to their asking price. The Seller will financially qualify the Buyer and will review their personal financial statements and credit scores.
HOME EQUITY LOAN or LINE OF CREDIT - This was a great options a few years ago due to the tax writeoff on the interest and the length and rate of the loan. However with the current housing market, Buyers are having difficulty acquiring this option.
CONVENTIONAL LOANS - Banks generally require 10-30% down. The loan term can range from 20-30 years. Depending on the size of the business, lending decisions may be able to made locally. Generally for real estate transactions only.
SBA LOANS - The Small Business Adminstration provides an opportunity to a new entrepreneur. They will lend on non real estate transactions however it is important to have 3-4 years of experience in the field. In addition, a thorough business plan is required and completion of a very detailed application. The term can range from 20-30 years and the rates are a bit higher due to the risk.
HARD MONEY LENDING - This option is generally for those who don't have a lot of options. These funds are short term and with high rates. For those with bad credit, bankruptcies or very risky ventures.
VENTURE CAPITAL - We receive requests to find venture capital for firms. Typically venture capital is available to technology related companies only. Venture capital firms take a portion of the equity of your firm and require high rates of return.
BORROW FROM 401K - This is a complex process and requires a professional to assist the buyer. This typically involves forming a C corporation to lessen the tax consequence and rolling the 401K into the new company for the purpose of acquiring the business and working capital.
EMPLOYEE STOCK OWNERSHIP PLAN - This option also requires a professional's assistance. This allows the business owner to sell the business to his/her employees via an ESOP. A new owner can also participate in an ESOP for acquision purposes.
I recently listed a large business with real estate in the Tucson area. The current owner was still making payments to the previous owner and had provided a lien on the real estate. We talked at length about Buyer options for financing and will be working with the previous owner on assuming the Seller carryback loan. This assumption with 50% down should be sufficient in paying off my Seller in full. Assuming existing debt is another great angle to consider.
As you can see, there are many options to consider. As business brokers, it is our job to sit down with you, assess your needs and be as creative as possible!
Saturday, August 16, 2008
How's the economy affecting business opportunities?
This is a frequent question I receive from friends. Honestly, our team has been very busy this season. Tucson generally slows down over the summer - but we've had steady inquiries on businesses we have listed for sale anonymously or requests to help find a business.
My thought is that there is so much uncertainty in corporate world right now people are checking out their options. When I meet with someone who's interested in buying a business, they don't always know what they are looking for. We use a Buyer Profile worksheet to help them narrow it down. Of course, the amount of money that they have to invest is a major factor also.
Business owners have also been calling frequently this summer. A majority of the sellers we work with are "baby boomer" age. Most have not planned an exit strategy from their business. They are also considering their options. I'd say about half of the businesses I've met with recently have been affected by the economy. Retail stores with declining revenue, contracting firms whose industry is in shambles due to the housing market, etc. However, there are many industries that are seeing flat revenue growth and will withstand this downward trend in our economy.
Business Brokering is an interesting industry. Most have never heard of it. Those that have don't always understand that we are licensed real estate agents and that most of us have previous business ownership experience. While there are 6000+ residential agents (or were over a year ago), there are only about 30 legitimate business brokers in the Southern Arizona region. (I mention legitimacy because we sometimes run across the residential or commercial agent dabbling in this area) We are a small niche in the real estate world. Though we have real estate licenses, about half of what we do has nothing to do with true real estate. We spend our time reviewing financial statements, talking about management structure and planning for the transition to a new owner. I see our industry booming over the next decade with the retirement and second careers of the baby boomer generation!
My thought is that there is so much uncertainty in corporate world right now people are checking out their options. When I meet with someone who's interested in buying a business, they don't always know what they are looking for. We use a Buyer Profile worksheet to help them narrow it down. Of course, the amount of money that they have to invest is a major factor also.
Business owners have also been calling frequently this summer. A majority of the sellers we work with are "baby boomer" age. Most have not planned an exit strategy from their business. They are also considering their options. I'd say about half of the businesses I've met with recently have been affected by the economy. Retail stores with declining revenue, contracting firms whose industry is in shambles due to the housing market, etc. However, there are many industries that are seeing flat revenue growth and will withstand this downward trend in our economy.
Business Brokering is an interesting industry. Most have never heard of it. Those that have don't always understand that we are licensed real estate agents and that most of us have previous business ownership experience. While there are 6000+ residential agents (or were over a year ago), there are only about 30 legitimate business brokers in the Southern Arizona region. (I mention legitimacy because we sometimes run across the residential or commercial agent dabbling in this area) We are a small niche in the real estate world. Though we have real estate licenses, about half of what we do has nothing to do with true real estate. We spend our time reviewing financial statements, talking about management structure and planning for the transition to a new owner. I see our industry booming over the next decade with the retirement and second careers of the baby boomer generation!
Subscribe to:
Posts (Atom)
