{"product_id":"buy-your-own-business-with-other-peoples-money-paperback-softback-9780471694984","title":"Buy Your Own Business With Other People's Money (Paperback \/ softback) 9780471694984","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eBuy Your Own Business With Other People's Money\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eRobert A. Cooke (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780471694984, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003ePaperback \/ softback, published 20 May 2005\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e240 pages\u003cbr\u003e23.5 x 18 x 1.3 cm, 0.417 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003eMost entrepreneurs interested in buying a business naturally assume they need large amounts of cash to work a deal. In fact, there are other ways to fund an entrepreneurial venture, particularly through seller financing. This simple, straightforward guide covers every possible source of financing available for wannabe business owners, how to deal with sellers, and how to use asset financing, selling equity, and asset protection. \u003ci\u003eBuy Your Own Business with Other People’s Money\u003c\/i\u003e shows that you don’t have to be rich to buy a business; you just need to be creative in financing your new business. For everyone who dreams of owning a business one day, this book has the answers.\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eINTRODUCTION xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 The Good and the Bad of Owning Your Own Business 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Fictions and the Facts about Owning a Business 2\u003c\/p\u003e \u003cp\u003eFiction Number One: No Boss 2\u003c\/p\u003e \u003cp\u003eFiction Number Two: Short Work Hours 3\u003c\/p\u003e \u003cp\u003eFiction Number Three: You Will Have Lots of Money 4\u003c\/p\u003e \u003cp\u003eFiction Number Four: You Will Enjoy the\u003c\/p\u003e \u003cp\u003ePrestige of Owning a Local Business 5\u003c\/p\u003e \u003cp\u003eDo the Advantages of Entrepreneurship Outweigh the Disadvantages? 6\u003c\/p\u003e \u003cp\u003eDecide on the Type of Business That Is Best for You 6\u003c\/p\u003e \u003cp\u003eDetermine Your Preference or Need as to Geographic Area 7\u003c\/p\u003e \u003cp\u003eConsider the Hours of Operation 8\u003c\/p\u003e \u003cp\u003eExperience and Knowledge Are Important 8\u003c\/p\u003e \u003cp\u003ePick a Business You Enjoy 9\u003c\/p\u003e \u003cp\u003eCreating Your Experience 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 How Much to Pay (Borrow) to Buy a Business 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Much Is the Seller Asking? 11\u003c\/p\u003e \u003cp\u003eWhat Do Similar Businesses Sell For? 12\u003c\/p\u003e \u003cp\u003eWhat Is the Value of the Business’s Assets? 13\u003c\/p\u003e \u003cp\u003eValue the Assets at Their Book Value 14\u003c\/p\u003e \u003cp\u003eThe Book Value of Equipment 14\u003c\/p\u003e \u003cp\u003eThe Book Value of Accounts Receivable 15\u003c\/p\u003e \u003cp\u003eInventory 16\u003c\/p\u003e \u003cp\u003ePatents and Copyrights 17\u003c\/p\u003e \u003cp\u003eThe Book Value of Other Assets 17\u003c\/p\u003e \u003cp\u003eThe Asset Called Goodwill 18\u003c\/p\u003e \u003cp\u003eThe Capitalization of Earnings 19\u003c\/p\u003e \u003cp\u003eHow to Determine the Real Net Income of a Business 19\u003c\/p\u003e \u003cp\u003eDetermine the Price of a Business Based on Its Earnings (Income) 24\u003c\/p\u003e \u003cp\u003eCapitalization of Earnings and Return on Investment 26\u003c\/p\u003e \u003cp\u003eThe Sales Multiplier 28\u003c\/p\u003e \u003cp\u003eThird-Party Information 29\u003c\/p\u003e \u003cp\u003eSolicit Information from Employees of the Business 29\u003c\/p\u003e \u003cp\u003eCheck the Bank Statements 30\u003c\/p\u003e \u003cp\u003eWhen Real Estate Is Part of the Business 31\u003c\/p\u003e \u003cp\u003eIn Summary, the Eight Methods of Valuing a Business 32\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Sources of Money for Your Business 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBorrow the Purchase Price from the Seller 35\u003c\/p\u003e \u003cp\u003eThe “Business for Sale” Ads 36\u003c\/p\u003e \u003cp\u003eThe Seller’s Motivation to Sell 38\u003c\/p\u003e \u003cp\u003eEnticing the Business Owner to Sell to You 40\u003c\/p\u003e \u003cp\u003eFind Cash Inside the Business 41\u003c\/p\u003e \u003cp\u003eThe Equipment Owned by the Business 42\u003c\/p\u003e \u003cp\u003eIntangible Assets 44\u003c\/p\u003e \u003cp\u003eAccounts Receivable 44\u003c\/p\u003e \u003cp\u003eExcess Inventory 45\u003c\/p\u003e \u003cp\u003eActual Cash in the Business 46\u003c\/p\u003e \u003cp\u003ePersonal Assets That Can Generate Cash 47\u003c\/p\u003e \u003cp\u003eObtaining Money from Commercial Banks 48\u003c\/p\u003e \u003cp\u003eChoose a Bank That Is Small-Business Oriented 50\u003c\/p\u003e \u003cp\u003eHave the Requisite Experience 51\u003c\/p\u003e \u003cp\u003eBuy a Business That Has Loyal Customers or Clients 52\u003cbr\u003e \u003cbr\u003e Buy a Business That Is in the Right Location 52\u003c\/p\u003e \u003cp\u003ePrepare Projections of Income and Expenses of the Business 52\u003c\/p\u003e \u003cp\u003eYour Presentation to the Bank 53\u003c\/p\u003e \u003cp\u003eLoans from Suppliers 55\u003c\/p\u003e \u003cp\u003eThe Shortcut—Buy Out Your Boss Using His or Her Money 57\u003c\/p\u003e \u003cp\u003eBuy a Franchise, but Not with the Franchisor’s Money 58\u003c\/p\u003e \u003cp\u003eFriends and Relatives as a Source of Borrowed Funds 58\u003c\/p\u003e \u003cp\u003eThe Government—The Small Business Administration (SBA) 69\u003c\/p\u003e \u003cp\u003eTo Summarize 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Do You Want Partners? 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy You Might Have One or More Partners 63\u003c\/p\u003e \u003cp\u003eThe Partner Has Money 64\u003c\/p\u003e \u003cp\u003eThe Partner Has Expertise That You Lack 67\u003c\/p\u003e \u003cp\u003eThe Partner Has Contacts 67\u003c\/p\u003e \u003cp\u003eThe Partner’s Personality Complements Yours 68\u003c\/p\u003e \u003cp\u003eThe Seller of the Business Can Be Your Temporary Partner 69\u003c\/p\u003e \u003cp\u003eThe Part-Time Family Business Has Grown Up 70\u003c\/p\u003e \u003cp\u003eYour Down-and-Out Relative Needs a Job 70\u003c\/p\u003e \u003cp\u003eYou Want to Include Your Best Friend in Your Deal 71\u003c\/p\u003e \u003cp\u003ePeople Who May Help You Find Potential Partners 71\u003c\/p\u003e \u003cp\u003eStay Out of Trouble with the Government(s) 75\u003c\/p\u003e \u003cp\u003eCompanies in the Business of Being a Partner 78\u003c\/p\u003e \u003cp\u003eVenture Capitalist 79\u003c\/p\u003e \u003cp\u003eSmall Business Investment Company (SBIC) 79\u003c\/p\u003e \u003cp\u003eThe Form That Your Partnership Should Use 80\u003c\/p\u003e \u003cp\u003eThe Business Form Choices 81\u003c\/p\u003e \u003cp\u003eGeneral Partnership 81\u003c\/p\u003e \u003cp\u003eLimited Liability Company (LLC) 82\u003c\/p\u003e \u003cp\u003eCorporation 83\u003c\/p\u003e \u003cp\u003eWhat If You Go It Alone, without a Partner? 84\u003c\/p\u003e \u003cp\u003eMore Information on Forms of Doing Business 85\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Technicalities of Buying a Business 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBuy Just Certain Assets of the Business 87\u003c\/p\u003e \u003cp\u003eCash 88\u003c\/p\u003e \u003cp\u003eAccounts Receivable from Customers 88\u003c\/p\u003e \u003cp\u003eOther Accounts Receivable 89\u003c\/p\u003e \u003cp\u003eInventory 89\u003c\/p\u003e \u003cp\u003eEquipment 89\u003c\/p\u003e \u003cp\u003eBulk Sales Law 90\u003c\/p\u003e \u003cp\u003eAssume the Liabilities of the Business When You Buy the Assets? 90\u003c\/p\u003e \u003cp\u003eThe Seller Takes on Risks, Too 91\u003c\/p\u003e \u003cp\u003eUsing the Business Debts in Your Negotiation 92\u003c\/p\u003e \u003cp\u003eBuy the Business as One Package—A Corporation 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX A The Business Plan 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a Business Plan? 95\u003c\/p\u003e \u003cp\u003eWhy Every Business Needs a Business Plan 96\u003c\/p\u003e \u003cp\u003eWhat Is the Format of a Business Plan? 97\u003c\/p\u003e \u003cp\u003eUsing Professional Assistance in Preparing a Business Plan 99\u003c\/p\u003e \u003cp\u003eHelp in Reading This Sample Business Plan 100\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX B Finding Investors and Navigating the Regulations 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSecurities and Exchange Commission Brochure 132\u003c\/p\u003e \u003cp\u003eActive Capital—Frequently Asked Questions 149\u003c\/p\u003e \u003cp\u003eWhat Is Active Capital? 149\u003c\/p\u003e \u003cp\u003eWho Needs Active Capital? 149\u003c\/p\u003e \u003cp\u003eWho Manages Active Capital? 149\u003c\/p\u003e \u003cp\u003eHow Is Active Capital Different from Other Internet-Based Investment Programs? 150\u003c\/p\u003e \u003cp\u003eCan Any Investor Enroll with Active Capital? 151\u003c\/p\u003e \u003cp\u003eCan Any Entrepreneur Enroll with Active Capital? 151\u003c\/p\u003e \u003cp\u003eHow Much Does It Cost to Enroll with Active Capital? 152\u003c\/p\u003e \u003cp\u003eHow Do Active Capital Fees Compare to “Go It Alone” Costs? 153\u003c\/p\u003e \u003cp\u003eHow Much Capital Can Be Raised Using Active Capital? 153\u003c\/p\u003e \u003cp\u003eHow Much Does Active Capital Itself Lend or Invest? 154\u003c\/p\u003e \u003cp\u003eDo I Need a Lawyer to List on Active Capital? 154\u003c\/p\u003e \u003cp\u003eIf I Fill Out My Form but Do Not Post It Right Away, Do I Need to Sign Up Again? 155\u003c\/p\u003e \u003cp\u003eAfter I Have Filled Out All My Forms, May I Change My Answers? 155\u003c\/p\u003e \u003cp\u003eMust I Notify Active Capital After I Have Made a Deal? 155\u003c\/p\u003e \u003cp\u003eCan I Use Active Capital If I Am a Canadian or Other Non-U.S. Company? 156\u003c\/p\u003e \u003cp\u003eCan I Get Other Forms of Non-Equity Financing through Active Capital? 156\u003c\/p\u003e \u003cp\u003eHow Do I Learn When Potential Investors Read My Plan? 156\u003c\/p\u003e \u003cp\u003eHow Many Investors May Review My Plan? 157\u003c\/p\u003e \u003cp\u003eDo All Investors Demand to Play a Role in Each Company? 157\u003c\/p\u003e \u003cp\u003eHow Can Lawyers or Accountants or Consultants Register on Active Capital? 158\u003c\/p\u003e \u003cp\u003eCan I Register on Active Capital if I Have Filed for a Public Stock Offering with the SEC or\u003c\/p\u003e \u003cp\u003eHave Not “Blue Skyed” in Every State in Which I Am Seeking Investment? 158\u003c\/p\u003e \u003cp\u003eState Securities Regulations Administrators 159\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX C Small Business Administration Loan Programs 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasic 7(a) Loan Program 168\u003c\/p\u003e \u003cp\u003eWhat SBA Seeks in a Loan Application 169\u003c\/p\u003e \u003cp\u003eEligibility Criteria 170\u003c\/p\u003e \u003cp\u003eSmall Business Size Standards 170\u003c\/p\u003e \u003cp\u003eEligible Businesses 173\u003c\/p\u003e \u003cp\u003eBusiness Types and Applicants with Additional Considerations 173\u003c\/p\u003e \u003cp\u003eIneligible Businesses 176\u003c\/p\u003e \u003cp\u003eUse of Proceeds 177\u003c\/p\u003e \u003cp\u003eIneligible Use of Proceeds 178\u003c\/p\u003e \u003cp\u003eAvailability of Funds from Other Sources 179\u003c\/p\u003e \u003cp\u003eCharacter Considerations 179\u003c\/p\u003e \u003cp\u003eOther Aspects of the Basic 7(a) Loan Program 179\u003c\/p\u003e \u003cp\u003eMaximum Loan Amounts (Updated as of 10\/1\/2004) 180\u003c\/p\u003e \u003cp\u003eInterest Rates Applicable to SBA 7(a) Loans 180\u003c\/p\u003e \u003cp\u003ePercentage of Guaranty on 7(a) Loans 181\u003c\/p\u003e \u003cp\u003eSBA Fees for 7(a) Loans 181\u003c\/p\u003e \u003cp\u003eFees Associated with SBA Loans 181\u003c\/p\u003e \u003cp\u003eCombination Financing 182\u003c\/p\u003e \u003cp\u003eProhibited Fees 182\u003c\/p\u003e \u003cp\u003ePrepayment Penalties 183\u003c\/p\u003e \u003cp\u003eAPPENDIX D SBA Forms 185\u003c\/p\u003e \u003cp\u003eINDEX 217\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Business \u0026amp; management [\u003ca title=\"See our other books on Business \u0026amp; management\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Business%20\u0026amp;%20management%20%5BKJ%5D%22\"\u003eKJ\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52298036019480,"sku":"9780471694984","price":11.89,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780471694984.jpg?v=1781731901","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/buy-your-own-business-with-other-peoples-money-paperback-softback-9780471694984","provider":"Freshly Printed Books","version":"1.0","type":"link"}