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Tips For Small Businesses

4 Important Business Partners who Don’t Need Equity

Most small business owners will reach a point where they need to decide between taking on a partner by giving up equity, or gain whatever that individual has through debt or a large salary. This can happen when a business grows too fast and needs money to fill orders, when a new revenue avenue is opened up and someone with a specific skillset is needed, or when the business owner decides to bring in someone else to help with the business side of running the business. In any of these instances, the small business owners will run into someone who will offer their services or money in exchange for equity. Unfortunately, this can be a costly proposition in the long run. As such, many small …

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How To Value A Business

For many small business owners, the end game of starting the business is to sell it. This sale, they hope, will allow them to live comfortably in retirement and allow them to step away from work altogether. As such, many do not create retirement plans, are willing to leverage assets like homes, vehicles, or cash savings, and put every dollar earned back into the business. For some, the exit strategy is in 5 years, and for others, it is 40. Still, others even plan to sell the business to a relative. But no matter the succession plan for the business, when that time finally comes, these business owners much some up with a value for the business.

Unfortunately, valuing a business can be harder than …