Buy A Business And Save A Lot Of Money On Equipment With This Simple TipOne of the easiest and simplest parts of analyzing a business -- that is always made
difficult, even by the Harvard Business School wizards -- is valuing the equipment
of a business you are wanting to buy.
However, if you do it my way (not generally taught in the business schools) this is
extremely simple, won't cost you a penny and will actually make running your
business easier in the long run.
But before I reveal my secret, just know (in case this is all new to you) that if you ask
four different people in the industry how this is done, you're going to get four
different answers. And none of them will be correct.
And so what I want to get across to you here is the best way to determine the value
of the equipment in a business you are wanting to buy is simply go to the people
that supply you with the equipment.
Why?
Two reasons:
1.) They have things just like a Kelly Blue Book that they use in the auto business
that lists what the different pieces of used equipment are, and you’re going to find
they can come back with a verbal or a written appraisal as to what the equipment’s
worth.
This is extremely important.
In fact, in the last few years because of inflation running higher than normal, we
found a lot of the equipment being purchased is actually worth as much or more
than what they paid for it.
And as a buyer, you’re going to pick up a lot of value in this area. Sometimes you
will find owners selling their equipment for $100,000 but it's really worth $300,000.
2.) In most cases, it doesn’t cost anything.
Why?
Because they are going to want to sell you more equipment in the future.
It's like with business plans. You can sometimes find "free" business plan services
or programs online because the people giving them away want to sell you financing.
It gets you in the door. And it's the same with equipment.
Bottom line: When it comes to evaluating the worth of equipment in a business you
want to buy, skip all the fancy mathematics and expensive services, and just go
right to the equipment sellers.
More often than not they won't charge you a penny and their information will be a
lot more accurate than anyone else.
Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business greats as Robert Allen of "No Money Down" fame. For the past 20 years Art has taught thousands of people around the world -- even so-called "little guys" with no formal education or money -- how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience. He has recently decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.com Article Source: http://EzineArticles.com/?expert=Art_Hamel | |
