Owning a business and owning the right kind of business for you are, of course, two wildly different things. Owning the wrong kind of business can make you absolutely miserable. So if you are considering buying a business, it is prudent that you invest the time and effort into determining the best kind of business for your needs and your personality. In a recent Forbes article, “What is the Right Type of Business for You to Buy?” author Richard Parker explores how buyers should go about finding the right business fit.
Parker is definitely an expert when it comes to working with buyers as he has spoken with an estimated 100,000 buyers over his career. In that time, Parker has concluded that it is critical that you don’t “learn on your own time.”
His key piece of advice concerning what type of business to buy is as follows. “While there are many factors to be considered, the answer is simple: whatever it is you do best has to be the single most important driving factor of the revenues and profits of any business you consider purchasing.” And he also believes that expertise is more important than experience. Parker’s view is that it is critical for prospective buyers to perform an honest self-assessment in order to identify their single greatest business skill and area of expertise. The last thing you want to do is pretend to be something that you are not.
Parker makes one very astute point when he notes, “Small business owners generally wear many hats: this is usually why their businesses remain small. Remember that every big business was once a small business.” As Parker points out, whoever is in charge of the business will ultimately determine how the business will evolve, or not evolve. Selecting the right business for you and your skillsets is pivotal for the long-term success of your business.
All of this adds up to make the process of due diligence absolutely essential. Before buying a business, you must understand every aspect of that business and make certain that the business is indeed a good fit for you. According to Parker, if you don’t love your business, it will have trouble growing. This point is impossible to refute. Owning and growing a business requires a tremendous amount of time and effort. If you don’t enjoy owning and/or operating your business, success will be a much more difficult proposition.
Finding the right business for you is a complicated process even after you have performed a proper evaluation of your skills and interests. After all, do you really want a solid business with great potential for growth that you would hate owning? By working with brokers and M&A advisors, you can find the best business fit for your needs, personality, and goals. These professionals are invaluable allies in the process of discovering the right business for you.
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In the next post in our New York Business Insights series — in which we explore opportunities for buying and selling a business in a given neighborhood — we take a look at the 10017 zip code, which maps to the northern portion of Murray Hill.
The Business Environment in 10017 (North Murray Hill)
Based on US Census data, total number of business establishments in 10017 have been declining by about 0.22% over the past five years, putting the approximate total count of the number of establishments in 10017 at 4,979. Interestingly, though, the decline in establishment is NOT coupled with a drop in employee count; in fact, employee count in the zip code is actually growing by about 1.99% annually, to a total of about 148,113 employees. A drop in establishment count, coupled with an increase in total employees, suggests the potential for some kind of industry consolidation to have occurred, or alternatively, a shift in the composition of industries in the 10017 zip code. The decline in establishments and the rise in employees is met with a rise in average salary, as salaries have been rising by about 1.13% annually. Consistent increases in salary may help ensure workers in the area have the capital needed to support local businesses.
A Look at the Demographics of 10017
According to tax returns from the IRS approximately 12,150 were filed from the 10017 zipcode in the most recent year of publicly available data, giving it more filed tax returns than 85.09% of the New York City zip codes we’re observing. If population age is a factor for businesses you’re buying or selling, note that in 10017, the 65+ age group makes up about 24.28% of the tax return filers. On the flip side, we saw that 1.65% included a childcare credit, which may shed insight into the size of the presence of young families in the zip code. Here’s a chart summarizing the key demographic attributes of 10017:
Highlights From Tax Returns Filed in 10017
As for the demographic breakdown of 10017, here are some of the facts we found to be especially worth observing:
- The growth rate in salary, which we noted earlier, is higher in 10017 than it is in 95% of other zip codes in New York.
- Joint tax returns have been growing in 10017 as well, suggesting new household formation is occurring. Relative to other zip codes, the growth in jointly filed tax returns is higher than that of over 90% of New York City’s zip codes.
Have additional questions on buying or selling a business in 10017? We’ll be happy to help you as best as we can. Just drop VNB Business Brokers a line.Read More
It takes preparation and focus to sell most businesses. The reality of the situation is that it can take years to achieve this goal. Partnering with a business broker or M&A Advisor is a smart step towards selling any business, as these pros know the very best tips. In that spirit, let’s take a look at some great tips for selling your business.
Getting your business ready to sell means carefully evaluating the foundation. Any significant problem can send buyers “running for the hills,” so be sure that you work out any problems well before placing your business on the market. If you have any litigation or environmental issues, you most definitely want to address those issues before it is time to sell. Nothing will scare away prospective buyers quicker than pending litigation or the specter of a potentially costly environmental clean-up.
A second key issue you’ll want to address is determining who exactly has the legal authority to sell the business. If a board of directors or majority stockholder situation is in place, then selling a business can become more complex than it would be if you were dealing with a sole proprietorship or partnership. Again, the last thing you want is for “legal surprises” to occur when you get ready to sell a business.
If you have non-negotiable items, be certain that those items are discussed upfront. Revealing your non-negotiable items at the very beginning of negotiations will save everyone involved a great deal of trouble.
Tip three involves maintaining a flexible mindset. In most circumstances, you simply can’t have everything that you want. Both buyers and sellers need to be flexible. Sellers will want to be flexible about any real estate. Buyers may not want real estate associated with a given business, and you need to be prepared for this. Sellers should also be prepared to accept valuation multiples for lack of management depth and other factors, such as reliance on a small number of customers.
At the end of the day, sellers should partner with experienced professionals such as attorneys and business brokers. You’ve put a lot of time, energy and resources into building your business. When it comes time to sell, it is only prudent to put together the best team in order to achieve optimal results.
Looking for insights to help you buy or a sell a business in New York? Our New York Business Insights section may be of interest to you; it’s where we review each zip code in New York and evaluate the economic environment there based on data from the US Census and IRS. The article below summarizes our findings from the 10016 zip code.
The Business Landscape in 10016 (Murray Hill)
The total number of business establishments in 10016 have been averaging a yearly growth rate of about -0.53% annually over the past 5 years (as reported by US Census data), thus constituting a consistent annual decline. In absolute terms, the estimated number of business establishments in the 10016 zip code was reported to stand at 5,776 as of 2017. Interestingly, though, the decline in establishment count is NOT coupled with a drop in employee count; employee count in the zip code is actually growing by about 1.12% annually. A drop in establishment count coupled with an increase in total employees suggests the potential for some kind of industry consolidation to have occurred. The decline in establishments and the rise in employees is met with a rise in average salary, as salaries have been rising by about 3.31% annually. Falling business establishment count, coupled with rising employee and salary count, may suggest mature industries are finding their home in 10016. If this holds true, mature industries may help stabilize the environment and create repeat customers for local businesses in the area.
A Look at the Demographics of 10016
Looking at the most recently available tax returns from the IRS (2017), we see that there were 32,720 tax filings from the 10016 zipcode, giving it more filed tax returns than most other zip codes in New York City. Regarding the age of the zipcode’s residents, note that elderly returns amounted to 17.54% of all of its tax returns. Here’s a chart summarizing the key demographic attributes of 10016:
Highlights From Tax Returns Filed in 10016
As for the demographic breakdown of 10016, here are some of the facts we found to be especially worth observing:
- The salary of Murray Hill tax filers is especially noteworthy; its average salary of $91,472 make it wealthy in comparison to other zip codes and the United States at large.
- As we noted earlier here, the growth rate of salaries in 10016 is 3.31% — a growth rate that surpasses the salary growth rate in about 85% of zip codes in New York City.
Have additional questions on buying or selling a business in 10016? We’ll be happy to help you as best as we can. Just drop us a line.Read More
The New York Business Insights section of VNBBrokers.com is dedicated towards helping individuals understand opportunities to buy or sell a business in a given neighborhood within New York City. In this entry, we’ll explore zip code 10014, affectionately known as the Meatpacking District.
The Business Landscape in 10014 (Meatpacking District)
The total number of business establishments in the 10014 zip code, generally known as as part of the Meatpacking District, have been in decline, dropping 1.45% annually over the past year (as reported by US Census data). This puts the approximate total count of the number of establishments in 10014 at 2,329. As is to be expected from a falling count of business establishments, the total number of employees in 10014 is also down, but slightly less; employee count fell by 0.39% over the past year. Interestingly, the decline in establishments and employees in 10014 is actually resulting in higher average salaries: the average salary in 10014 has been increasing by about 5.06% annually. Is this suggesting that business activity is declining, and establishments are favoring preserving higher wage employees?
A Look at the Demographics of 10014
According to tax returns from the IRS approximately 18,720 were filed from the 10014 zipcode in the most recent year of publicly available data, which is substantially higher than most other zip codes in Manhattan. As for insights into age, we should note that elderly returns (filed by those 65 or older) accounted for 20.3% of all returns in 10014. Here’s a chart summarizing the key demographic attributes of 10014:
Highlights From Tax Returns Filed in 10014
The most striking aspects of the tax return data from 10014 of the Meatpacking District relates to salary and unemployment data, which have gone in the right direction over the past year. As noted above, salaries are up, and supporting this notion is that unemployment claims on tax returns are down 17% from the year prior. So while business activity is declining by some measures, measures of income remain solid.
Have additional questions on buying or selling a business in 10014? We’ll be happy to help you as best as we can. Just drop us a line.Read More
If you’re interested working with a business broker to buy or sell a business in New York, a step you may find worth your while is to understand the economic climate of the specific neighborhood or the business in question. Our New York Business Insights section is dedicated specifically to helping you understand the environment in the various regions of New York City.
The Business Environment in 10013 (Tribeca)
The total number of business establishments in 10013 have been averaging a yearly growth rate of about -0.77% annually over the past year (as reported by US Census data); this constitutes a decline. In absolute terms, the estimated number of business establishments in the 10013 zip code was reported to stand at 5,171 as of 2017. Interestingly, though, the decline in establishment is NOT coupled with a drop in employee count; employee count in the zip code is actually growing by about 2.99% annually. A drop in establishment count coupled with an increase in total employees suggests the potential for some kind of industry consolidation to have occurred. The decline in establishments and the rise in employees is met with a rise in average salary, as salaries have been rising by about 2.26% annually. Falling business establishment count, coupled with rising employee and salary count, may suggest mature industries are finding their home in 10013.
A Look at the Demographics of 10013
Looking at the most recently available tax returns from the IRS (2017), we see that there were 15,140 filed from the 10013 zipcode, giving it more filed tax returns than 89.86% of the New York City zip codes we’re observing. By New York City standards, this is not a particularly elderly area; on a proportional basis, just 11% of zip codes in New York City have a higher percentage of its residents in the 65+ age bracket. In terms of trends, about 18% of residents list a mortgage on their tax return, and this amount appears to be growing at a rate of 0.15% per year. For context, that’s a higher growth rate than about 70% of zip codes in New York City.
Here’s a chart summarizing the key demographic attributes of 10013:
Have additional questions on buying or selling a business in 10013? We’ll be happy to help you as best as we can. Just drop us a line.Read More