Keep These 4 Things in Mind Before Selling Your Small Business

October 16, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. Selling a small business for the maximum value to the right purchasers on the right terms can be a tremendous challenge, even for experienced business owners. Buying and selling an existing company is a complex process, but one that should be demystified. At its most basic level, the process is straightforward, just like the purchase of a single item. The small-business owner sells the object (in this case, their own business) to a potential buyer for an agreed-upon price and mutually acceptable terms. Yet, as always, the devil is in the details — in this case how the deal is structured. With that in mind, here are four key things you’ll need to remember when it’s your company that’s being sold. 1. Understand the whole process. While every business sale has its unique features, we can outline a […]

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Why Tax Reform Could Mean Bigger Bills for Businesses

Changes to interest expense and qualified expense deductions could mean surprises for some owners. October 8, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. With the 2019 year-end tax-planning season ramping up, many companies are still grappling with areas of complexity and confusion introduced by the landmark U.S. Tax Cuts and Jobs Act of 2017 (TCJA). The good news is that some of the fog surrounding key parts of the TCJA have been lifted as a result of new rules issued in the past year and as the IRS drips out additional guidance. The bad news is that in two important areas, the rules have been clarified in a way that is likely to lead to a bigger-than-expected tax bill for a lot of businesses. Meanwhile, there are many areas where accounting departments are struggling against the clock to interpret the meaning and implications as best they can. […]

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Why Unglamorous Entrepreneurial Opportunities Can Be Lucrative

Oftentimes, profitable business ideas are far from the most attractive. September 27, 2019 4 min read Opinions expressed by Entrepreneur contributors are their own. While many entrepreneurs dedicate their time and energy to trying to create something “exciting” and “buzzworthy,” the reality is that many of the most successful startups originate with a relatively unglamorous idea. Just consider ride-sharing firms Uber and Lyft. Though the companies have lost some market value since going public, they are both worth billions. And when you step back to think about it, ride-sharing is essentially a gig economy version of a taxi service. However, their success is just one example of a recurring entrepreneurial truth: You don’t have to chase down a “glamorous” idea to change the market or turn a profit. Here’s why. Easier Financing Many startups rely on getting money from a venture capitalist firm because they have big ideas that require a […]

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Why Are Bay Area Restaurateurs Afraid to Charge Credit-Card Fees?

Don’t be fearful. Just give choices. September 20, 2019 4 min read Opinions expressed by Entrepreneur contributors are their own. There’s a great Indian restaurant near my work where I go a couple of times a month for its lunch buffet. There, you can not only get a delicious chicken tikka marsala and fluffy naan bread for only $11.95, but you’re given the opportunity to pay an additional 5 percent fee if you use your credit card. I like that. I don’t carry cash. I pay the additional $0.60 extra for the convenience. I continue to eat there. Let’s compare that restaurant to one of the grocery stores in my neighborhood. Just recently I attempted to buy a couple of bags of potato chips and a quart of milk and was literally turned away from the cash register because I was about four dollars short of the $10 minimum credit-card policy […]

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How Entrepreneurs Can Survive the Next Recession

With speculation about another crash running rampant, it can’t hurt to be prepared. September 17, 2019 4 min read Opinions expressed by Entrepreneur contributors are their own. There has been increasing talk of a burgeoning recession, whether because of a historically rare decade-long economic expansion or recent reports of an inverted yield curve, which is traditionally an indication of a downturn. Any recession is hard on all Americans, but it can be particularly devastating for entrepreneurs, who often have more to lose. Not only does an economic ebb add to the uncertainty of owning and running a business, but it also means opportunities become scarcer, with fewer potential partners willing to invest, consume and otherwise enter into deals. Recessions, of course, are famously hard to predict, but even when there’s mounting evidence of a looming crisis, it can be hard to anticipate timing and how it will affect your industry. Simply closing shop is no solution. It might not […]

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5 Signs It’s Time to Switch Your Business Bank

Before knowing where to deposit your cash, decide when to withdraw. September 4, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. As a small-business owner, if you feel like your bank is not meeting your needs, you’re not alone. According to a recent study by J.D. Power, only 32 percent of small-business banking customers feel that their current bank understands their needs, and only 37 percent feel their bank appreciates their business.  When it comes to financial services, small-business owners should never feel forgotten. However, many financial institutions provide small businesses with antiquated cookie-cutter products meant more for consumers rather than providing small businesses with true business-grade products typically reserved for corporate clients.  Evaluating your current banking priorities may inspire you to seek new alternatives and make a switch, especially if there are critical warning signs that your current bank is not meeting your needs. Let’s […]

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Become Master of Your Financial Domain With QuickBooks

The Complete QuickBooks Guru Bundle will give your business a financial edge. September 3, 2019 2 min read Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. QuickBooks is the big cheese of the financial software world. As of 2018, QuickBooks had 2.8 million online subscribers from all corners of the globe, and the desktop software has been a corporate favorite for years. Adding it to your company’s roster of software will help you stay on top of profits, losses and long-term budgets. If you’re clueless about using QuickBooks, don’t worry: You’ll become a QuickBooks master with The Complete QuickBooks Guru Bundle. These seven courses tackle everything from QuickBook Pro basics to tax tracking to business bookkeeping. You’ll gain access to the […]

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5 Ways That Billionaire Warren Buffett Pays a Lower Tax Rate Than His Secretary

How Warren Buffett navigates the taxes on his income. August 30, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. To provide entrepreneurs with insights on some of the 2020 Democratic Candidates wealth tax proposals, let’s take a closer look at how and why billionaire Warren Buffett still pays less tax as a percentage than his secretary. With several presidential frontrunners advocating programs to increase taxes on the rich to reduce wage gaps and pay for free government programs such as “Medicare for All” and free public college tuition, it’s important to look at the big picture questions.  Let’s take a closer look at five ways Warren Buffett and other billionaires pay less tax and the economic benefits. 1. Pays primarily capital gains tax versus income tax The top reason that Warren Buffett pays less tax as a percent than his secretary is because he is being taxed primarily on capital gains […]

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Surprising Funding Ideas for Your Business

Look at alternative investments, and find new funding ideas for your startup. August 28, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. Mastermind and CEO groups have long been popular among driven entrepreneurs seeking to learn new strategies and ideas for improving their operations. It’s no secret why. These groups provide a safe haven environment in which entrepreneurs can share and learn from the accumulated experiences of fellow members — as well as from the executive director who leads the group and any speakers who make presentations to it. Entrepreneurs commonly applaud these groups for their ability to help build relationships that make a meaningful difference in their business success — and sometimes even their personal lives. But increasingly, high-end mastermind and CEO groups are also becoming an avenue for connecting business owners with investors — giving entrepreneurs a new way to access and raise capital. […]

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Score Career Advice From an Award-Winning Venture Capitalist

Skip the night classes and become a master financial analyst from the comfort of your own home. June 26, 2019 2 min read Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. Whether you’re seeking a better understanding of risk management when it comes to investments or you’re starting your own business, this Ultimate MBA in 1 Bundle is the next best thing to a degree in finance. Featuring Chris Haroun, a successful hedge fund founder, Colombia MBA graduate, and award-winning professor, this learning bundle boasts nearly 50 hours of in-depth financial training you’ll find nowhere else. Wondering what exactly The Ultimate MBA in 1 Bundle entails? First up, is The Complete Financial Analyst Training & Investing Course consisting of over 22 […]

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Cash Advance Apps Can Be a Short-Term Bridge for People Short on Money

If you find yourself short on cash, these services could be a good short-term solution. June 21, 2019 6 min read Opinions expressed by Entrepreneur contributors are their own. Around 78 percent of Americans found themselves living paycheck to paycheck, according to a 2017 study by Career Builder. Perhaps it’s no coincidence then that cash advance apps, which give people access to their money before payday, have become a hot trend in recent years. These apps allow users to temporarily borrow the money they need to bridge the gap until that invoice money comes in or payday hits, at a cheaper cost compared to overdraft fees and missed payment penalties from banks. In this respect, many entrepreneurs and early stage startup employees are finding these apps genuinely helpful. For example, I recently learned of a startup team that is building a company that gets paid on the performance of their work, so their […]

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The Woman Behind the Scenes at Cannabis’ Biggest Private Equity Fund

Merida Capital has boomed since Daisy Mellet joined the team. June 13, 2019 12 min read Opinions expressed by Entrepreneur contributors are their own. When Merida Capital Partners Managing Partner, Mitch Baruchowitz, recruited Daisy Mellet to join the team, Merida Capital had team members and Assets Under Management (AUM) of $7 Million. Within 14 months of Mellet’s hiring, Baruchowitz, Mellet, and the Merida team grew the firm to more than $125 million AUM, quadrupled its number of employees. Merida is now considered to be the largest private equity fund focused on cannabis and is launching a third fund to raise an additional $200 million for investment in the cannabis industry. That huge growth required a highly organized and professional infrastructure. Mellet’s decades of experience from the highly regulated world of institutional finance brought a professional level of organization and an operational model primed for growth. Mellet’s role at Merida has been crucial to the […]

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5 Simple Ways to Improve Your Credit Score and Help Your Business

There are easy steps to move from borderline to excellent. May 14, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. With the U.S. economy expanding, credit relatively inexpensive, and low corporate tax rates encouraging capital investment, this is a great time for small business owners to take out a loan to finance growth. However, small business owners can significantly improve their chances of getting a loan approved by first taking steps to boost their personal credit score. The biggest factors that any bank looks at when deciding whether to approve a loan are the 5 Cs of credit: capital, collateral, conditions, cash flow and creditworthiness. For young companies, consultants operating as solo practitioners, and early-stage startups, that creditworthiness component leans heavily on the owner’s personal credit. Related: Personal Credit Score vs Business Credit Score: Everything You Need to Know So, making sure your personal credit score is as high as possible will give the company […]

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Tax Audits Are on the Rise. Here’s Why You Shouldn’t Freak Out.

Don’t panic, a letter from the IRS doesn’t equal doom. April 16, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. Imagine getting a letter in the mail stating you owe someone $98,000. Now imagine that someone is the Internal Revenue Service. Just the mere utterance of the letters “IRS” will give business owners and sole proprietors the chills. As you send in your yearly tax return, you can’t help but wonder: Will this be the year? No amount of hoarding receipts or carefully crafted tax returns can quite prepare you. In my case, I had a client get a real letter requesting that very real amount of money mentioned above. The total they ended up paying? Zero. If you’re getting audited, or you think you might get audited soon, don’t freak out. Take a deep breath and consider these reasons it won’t be nearly as bad […]

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Want Your Seed-Stage Startup to Be Fundable? Check These 4 Boxes.

To help your startup succeed, you’ll probably need outside funds. Use this checklist to make your concept fund-able. April 1, 2019 7 min read Opinions expressed by Entrepreneur contributors are their own. Venture capitalists apparently have no shortage of capital to put to work this year, but that doesn’t mean they’re willing to make bets on your self-described “beautifully designed blockchain artificial intelligence” pitch deck. If you want to net some of that VC capital this year, you’ll have to earn it. Global venture capital investments in 2018 closed a record $100 billion, according to a recent report from Crunchbase. Money is flying everywhere, so it should be a piece of cake to raise millions for your early-stage startup, right? Wrong. Despite record-setting numbers in venture, we’re seeing more concentration in later-stage deals. In fact, the Crunchbase report showed that 56 percent of VC dollars invested in 2018 went toward “supergiant” rounds. Further, the Q4 2018 report […]

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How I Built $500 in Credit to $500,000

Start small, pay on time, be proactive. March 24, 2019 6 min read Opinions expressed by Entrepreneur contributors are their own. I was raised to believe that debt was bad. If you needed a car, you paid cash. Same went for groceries and clothing and most other things. You paid with paper money or you went without. A credit card was a one-way ticket to insolvency and despair. It was a mindset of freedom versus serfdom. A healthy mindset, overall — if maxed-out credit cards and crushing student loans aren’t a form of bondage, I don’t know what is. When I decided to drop out of school and start my own business, I quickly discovered that there was much more to the story. Debt, while a burden, didn’t have to be ruinous. In fact, it was an outright necessity for any entrepreneur with ambitions loftier than a lemonade stand. Related: […]

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How to Avoid the 3 Plagues of the Financially Disabled

The quickest way to make more money is to better manage the income you already have. January 7, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. How consistent is your cash flow? Seventy-eight percent of Americans live paycheck to paycheck, and American consumers aren’t the only people affected. Many business owners struggle financially. Twenty percent of businesses go under within their first year of operation. People spend the first 18 years of their lives of schooling and trial-and-error, only to still find themselves in a rut for the rest of their lives — unless they master the art of managing money and cash flow. Don’t become a part of a measly percentage. Rise to the top, and create something that will last. Create something that is evergreen that will also stand up against the powerful winds of the economic world. If you’re looking to fight the financial epidemic […]

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Warren Buffett Has The Most Expensive Stock of 2018. Here Are the Top Finance Stories of the Year.

From mergers and acquisitions to IPOs, here is a snapshot of the year in finance. December 31, 2018 1 min read Hi, I’m Nina Zipkin and here are three of the biggest finance stories of 2018. In acquisition news, Keurig Green Mountain bought of Dr. Pepper Snapple Group for $26.6 billion in January, and T-Mobile purchased Sprint for $58.7 billion in March. Eventbrite, Docusign, BJ’s Wholesale Club, Dropbox and Spotify were among the more than 170 companies that went public this year, with Spotify having the highest offer at $9.2 billion. On Wall Street, Warren Buffett’s Berkshire Hathaway was the most expensive stock of the year, trading at a lofty $315,000.00 a share as of the beginning of December 2018. Read_more Related posts: Bill Gates Reveals His Ultimate Measure of Success — And How Warren Buffett Helped Him Realize It Starbucks Says Straws Suck and Zuckerberg Bumps Buffett. 3 Things […]

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How Lewis Mocker and Amy Sangster Went from High School Friends Interested in Finance to Teaching Thousands to Build Wealth

They made bank day trading and now they help others find their own financial independence. December 21, 2018 6 min read Opinions expressed by Entrepreneur contributors are their own. In this series called Member Showcase, we publish interviews with members of The Oracles. This interview is with Lewis Mocker and Amy Sangster, the co-founders of Infinite Prosperity, a financial education and empowerment company. It was condensed by The Oracles. Who are you? Lewis Mocker: We’re high school friends who bonded over our unique perspective on life, specifically the traditions and conventions surrounding financial and vocational success. While our peers focused on good grades and a comfortable career, we avidly sought another path. Our first success in entrepreneurship came from our eBay business, where we tasted the freedom online business could create. The next frontier was trading on the foreign exchange, known as Forex trading. With this model, we were both […]

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7 Ways to Make Sure Your Variable Expenses Don’t Sink Your Budget

Give yourself some cushion. December 10, 2018 6 min read Opinions expressed by Entrepreneur contributors are their own. When creating a budget for your small business, you are attempting to plan how much money you’ll need to make in order to cover your costs — and then some. But how do you plan when some of your expenses change by the month? That’s the issue with variable expenses. They are difficult to predict because, as their name suggests, they are rarely the same, even month-to-month. Your best bet is to minimize those costs as much as you can, while arming yourself with the knowledge and tools to prevent them from sinking your business unexpectedly. Understanding variable expenses is the first step to keeping them under control. Related: Every Business Needs a Budget, No Matter How Much Money You (Think) You Have What are variable expenses? Variable expenses, or variable costs, […]

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