Eric is a graduate of the University of Pennsylvania and Harvard Business School.  He is on the Board of Advisors of Collective Intellect, a new media business intelligence company, and the Awards Committee of the Empowerment Schools in New York City.

Our Other Informative Speakers include:

Nancy Johnson – Online Advertising Pioneer and Gary Janzen of Theilan IdeaCorp

Jim Lowe – Vice President of Jeffrey Scott Advertising

Marc Raygoza – President of Vine Global a new global sales tool that will open up billions of
dollars of new American Online Exports.

Tina Henson – President of Plastic Jungle, Inc. of Clovis, California who was written up in the March issue of INC for creating so much demand that it over powered her web site.

The workshop is being held at National University which is located at the NE corner of the 41 Freeway and Friant Avenue with a continental breakfast starting at 7 A.M. and the first speaker at 7:30 AM. The workshop will be over at Noon.

We are limited to only 80 seats which should go quickly.

People can sign up for an advance ticket for $50 at www.centralcal.score.org. ]]> http://www.bizben.com/blog/posts/597-score-workshop-fresno.php http://www.bizben.com/blog/posts/597-score-workshop-fresno.php http://www.bizben.com/blog/posts/596-sport-clips-grand-opening.php http://www.bizben.com/blog/posts/596.php#comments 01 May 2008 13:36:00 CDT Peter Siegel, MBA Franchises For Sale http://www.bizben.com/blog/posts/596-sport-clips-grand-opening.php Sport Clips Franchise is having a grand opening in Glendora, Corner of Lone Hill Ave. & Gladstone, next to Corner Bakery, across from Best Buy this Saturday May 3rd. Sport Clips Franchise is having a grand opening in Glendora, California. The location is the corner of Lone Hill Ave. & Gladstone, next to Corner Bakery, across from Best Buy.

Meet Sport Clips VP of Market Development from 11am to 3pm who will answer your questions about our rapidly expanding franchise program in California. Sport Clips currently has more than 550 locations opened across the country and more opening across California.

This is a great opportunity for you to experience Sport Clips and learn more about their expansion plans here in California.  If you have any questions please call Judy Mills at 800-872-4247 X240 for more information.  Lakers fans will get a chance to meet the world famous Lake Girls from Noon to 2PM! ]]> http://www.bizben.com/blog/posts/596-sport-clips-grand-opening.php http://www.bizben.com/blog/posts/596-sport-clips-grand-opening.php http://www.bizben.com/blog/posts/595-california-small-and-disabled-veteran-businesses.php http://www.bizben.com/blog/posts/595.php#comments 30 Apr 2008 19:31:00 CDT Peter Siegel, MBA Small Business Issues http://www.bizben.com/blog/posts/595-california-small-and-disabled-veteran-businesses.php Governor Arnold Schwarzenegger announced that California′s small and disabled veteran businesses are registered at record-breaking numbers to compete for the state′s more than $9 billion a year in contracts, and exceeding goals he put forth two years ago.
There are now 16,005 certified small and disabled veteran businesses able to bid on state contracts, up from 12,000 just one year ago. "Small businesses are the backbone of our state's economy," said Governor Schwarzenegger. "Ensuring that small businesses have the tools they need to succeed has always been a priority of my administration, and I'm pleased that more small businesses and disabled veteran businesses are taking advantage of one of the many tools available by registering and competing for state contracts."

Under State and Consumer Services Agency (SCSA) Secretary Rosario Marin's leadership, the Department of General Services Procurement Division has made simplifying the small business certification process a priority.

"In most cases, the new online application process can be completed in twenty minutes-a wonderful accomplishment, compared to the former paper-based system that oftentimes could take months," said SCSA Secretary Marin. "This is a prime example of technology successfully serving our citizens and enabling our government to operate at the speed of business."

Last year, more than $2.7 billion in contracting went to small and disabled veteran businesses. This was more than 28.3 percent of all the state's contract spending and exceeded the goal of 25 percent that Governor Schwarzenegger's Executive Order (S-02-06) requires.

Expanding on these efforts is a high priority for the administration this year. Representatives from the State and Consumer Services Agency sponsored and attended more than 137 small and disabled veteran business outreach events in 2007, and they plan to exceed that amount in 2008.

Ninety-eight percent of California businesses are defined as small, which means they have fewer than 100 employees and less than $12 million in average gross annual receipts.

For more information about how you can register your small or disabled veteran business with the State of California, go to www.getcertified.dgs.ca.gov. ]]> http://www.bizben.com/blog/posts/595-california-small-and-disabled-veteran-businesses.php http://www.bizben.com/blog/posts/595-california-small-and-disabled-veteran-businesses.php http://www.bizben.com/blog/posts/594-deals-falling-out.php http://www.bizben.com/blog/posts/594.php#comments 29 Apr 2008 09:39:00 CDT Peter Siegel, MBA Buying A Business Selling A Business http://www.bizben.com/blog/posts/594-deals-falling-out.php What most people don′t realize is that over 50% of all deals fall out after they enter into an LOI or purchase agreement to buy or sell a business. selling a small business. What most people don't realize is that over 50% of all deals fall out after they enter into an LOI or purchase agreement to buy or sell a business.

Reason vary - for instance a current BizBen advertiser, Robert (a business owner) who is selling a couple of Sears retail stores in the Central coast area has been in escrow 3 times with buyers who have backed out due to 'the current housing situation" and other financing problems.  Even though he has gotten a tremendous response on the BizBen Fast Track advertising program - he has taken back-up buyers knowing that deals can "fall out" at any time. He tells me he is currently in escrow again and things look good, but until a deal is done and the final check in escrow is cut - keep on taking names!

To Avoid Your Deal From Falling Out Make Sure You:

1. When selling a business keep taking names/back up offers of interested parties until the deal closes.

2. Make sure the buyers you are dealing with have been pre-qualified by quality contacts at SBA lending institutions if there is possible financing in the picture.

3. Keep marketing/advertising the business heavily (utilize the BizBen Fast Track advertising for maximum exposure) until it sells - do not believe you have a buyer and then "stop taking calls and names".

4. Make sure your business for sale ad and profile you have written up is complete, honest, and varifiable so when buyers go into escrow and do their due diligence the deal doesn't fall apart because you didn't do your part in preparing the business and documents before you went on the market.

5. Have your advisers - CPA, attorney, SBA lender, and other resources ready to go at any time when you go into contract and the due diligence begins!

Do you have a recent experience of a deal falling out? Share your comments and tell us why your past deals have fallen out! ]]> http://www.bizben.com/blog/posts/594-deals-falling-out.php http://www.bizben.com/blog/posts/594-deals-falling-out.php http://www.bizben.com/blog/posts/593-SCORE-resources.php http://www.bizben.com/blog/posts/593.php#comments 29 Apr 2008 08:25:00 CDT Peter Siegel, MBA Small Business Issues http://www.bizben.com/blog/posts/593-SCORE-resources.php SCORE ″Counselors to America′s Small Business″ announces a new section specifically for young entrepreneurs at the SCORE Web site.
Visitors to www.score.org/young.html will find the following resources:

*  Insights for Young Entrepreneurs features key articles on: entrepreneurship as a career choice; Web site design; university assistance; and how to start smart.

*  Resources for Young Entrepreneurs lists more than 35 organizations, groups and Web sites that offer news, strategies and assistance.

*  Competitions for Young Entrepreneurs features eight awards that help encourage and recognize business success.

*  Stats on Young Entrepreneurs provides the latest research and facts on Generation X and Generation Y entrepreneurship. ]]> http://www.bizben.com/blog/posts/593-SCORE-resources.php http://www.bizben.com/blog/posts/593-SCORE-resources.php http://www.bizben.com/blog/posts/592-self-employed-women.php http://www.bizben.com/blog/posts/592.php#comments 29 Apr 2008 08:11:00 CDT Peter Siegel, MBA Small Business Issues http://www.bizben.com/blog/posts/592-self-employed-women.php Self-employed women differ from their wage and salary earning counterparts in several human capital areas.
Age, Education, And Experience Are Key Human Capital Factors

Self-employed women differ from their wage and salary earning counterparts in several human capital areas. Most notably, self-employed women tend to be older, are better educated, and have more managerial experience than wage and salary earners. These findings are
contained in a report, Human Capital and Women’s Business Ownership (http://www.sba.gov/advo/research/rs323tot.pdf) , released today by the Office of Advocacy of the U.S. Small Business Administration.

“Human capital factors such as education and experience have long been known to have a positive correlation with entrepreneurship,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “This report delves deeper into women’s business ownership and shows that factors such as occupational skills and entrepreneurial preparedness are essential to women’s entrepreneurship.”

The report, written by Business Development Advisors with funding from the Office of Advocacy, also compares human capital factors of self-employed women and men, as well as between self-employed whites and minorities. The authors presented the report during the annual meeting of the Urban Affairs Association in Baltimore on April 26, 2008.

Comparing self-employed women to other working women, the authors found that:

* Self-employed women have greater educational attainment.
* Self-employed women are more likely to be in managerial occupations.
* Self-employed women are more likely to work in non-traditional
occupations.
* Self-employed women are likely to be older.

For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo.

The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues. ]]> http://www.bizben.com/blog/posts/592-self-employed-women.php http://www.bizben.com/blog/posts/592-self-employed-women.php http://www.bizben.com/blog/posts/590-april-business-sales-statistics.php http://www.bizben.com/blog/posts/590.php#comments 29 Apr 2008 05:26:00 CDT Peter Siegel, MBA California Business For Sale Statistics http://www.bizben.com/blog/posts/590-april-business-sales-statistics.php 353 California small businesses for sale were sold by business owners of small businesses, California business brokers, & real estate agents for the week of April 21, 2008 and April 27, 2008. small businesses for sale were sold by business owners of small businesses, California business brokers, & real estate agents for the week of April 21, 2008 and April 27, 2008.

Sales of California small business opportunities & franchises by County include:

Alameda County: 18, Contra Costa County: 11, El Dorado County: 5, Fresno County: 6, Imperial County: 3, Inyo County: 1, Kern County: 3, Los Angeles County: 103, Marin County: 1, Merced County: 2, Monterey County: 3, Napa County: 2, Orange County: 51, Placer County: 6, Riverside County: 7, Sacramento County: 19, San Bernardino County: 10, San Diego County: 20, San Francisco County: 11, San Joaquin County: 1, San Luis Obispo County: 4, San Mateo County: 1, Santa Barbara County: 5, Santa Clara County: 23, Santa Cruz County: 4, Solano County: 2, Sonoma County: 2, Stanislaus County: 6, Sutter County: 1, Tulare County: 4, Tuolumne County: 1, Ventura County: 12, Yolo County: 3.

Business sales are down this time of year compared to last year April 2007 business sales of 2833 for the month.  April tends to be a slower month for selling a business due to tax season. ]]> http://www.bizben.com/blog/posts/590-april-business-sales-statistics.php http://www.bizben.com/blog/posts/590-april-business-sales-statistics.php http://www.bizben.com/blog/posts/591-franchise-ufoc.php http://www.bizben.com/blog/posts/591.php#comments 29 Apr 2008 07:45:00 CDT Peter Siegel, MBA Franchises For Sale http://www.bizben.com/blog/posts/591-franchise-ufoc.php purchase a franchise from the franchisor. 

The purpose of the UFOC is to give the potential franchisee complete background about the franchise. The UFOC includes detailed information on items such as the franchise’s business history, litigation, bankruptcy, initial franchise fee and other fees, total initial investment required, franchisee’s obligations, franchisor’s obligations, financing, territory, trademarks, patents, copyrights, restrictions, dispute resolution, earnings claims, financial statements, contracts, and more.

Once you narrow your list of franchises down to the ones that interest you the most, be sure to carefully read each franchisor’s UFOC as part of your due diligence process.  What you find in it is often the case for moving forward with the franchisor, or moving on to another franchise opportunity.

In your search to find the perfect franchise for you to buy, visit http://franchises.bizben.com.  There you will find detailed information for free about hundreds of potential franchises to buy. ]]> http://www.bizben.com/blog/posts/591-franchise-ufoc.php http://www.bizben.com/blog/posts/591-franchise-ufoc.php http://www.bizben.com/blog/posts/589-internet-based-franchises-for-sale.php http://www.bizben.com/blog/posts/589.php#comments 24 Apr 2008 07:00:00 CDT Peter Siegel, MBA Franchises For Sale http://www.bizben.com/blog/posts/589-internet-based-franchises-for-sale.php You may not want the drawbacks associated with a traditional brick and mortar business, which includes employees, office space, lots of overhead, and more. If that’s the case, then an internet franchise may be perfect for you. internet franchise may be perfect for you.

What are some of the advantages of an internet franchise over more traditional franchises? 

There are five of them:

1. You can run your franchise from home.  Since internet franchises are located on the internet, customers have no idea if the owner is one person with a home office, or a large corporation with 1,000 employees.  This means you can wake up in the morning, log on in your pajamas, and make money, all while looking like a professional corporation to your customers.

2. Your franchise has extremely low overhead.  Since your business is located in cyberspace, you don’t need an office, or a storefront, or a warehouse.  Instead, all you need is your computer.  You also don’t need delivery vans and large amounts of inventory.  The result is you don’t waste a ton of money every month on overhead that eats into your profits, which is a huge benefit.

3. The doors of your business are always open.  When you run a brick and mortar business, you need to set and maintain hours, and ensure you have employees available to meet and assist customers.  With an internet business, your store is open 100% of the time.  This means your customers can buy from you whenever they want to and you can make money even while you are sleeping or playing golf.

4. You are not limited to drawing customers from a specific geographic region.  With a traditional business, your customers are typically limited to a specific geographic area around where your business is located.  This severely limits the number of potential customers you can cater to.  However, an internet business is available to customers world-wide, at all hours of the day, all days of the week.  This extended reach greatly enhances your revenue potential which enables you to grow more rapidly.

5. Your business is 100% scalable.  With an internet business, you can cater to 100 or 100,000 customers with little to no additional effort on your part.  You don’t need to rent a larger store or open more locations to grow.  Instead, you typically just need to increase your marketing and your internet-based business system will automatically handle the increased growth.

These are just a few of the benefits of owning an internet-based business. 

To find details about some of the top internet-based businesses available to buy, visit http://franchises.bizben.com and view the “Computers & Internet” franchise category. ]]> http://www.bizben.com/blog/posts/589-internet-based-franchises-for-sale.php http://www.bizben.com/blog/posts/589-internet-based-franchises-for-sale.php http://www.bizben.com/blog/posts/588-sba-loan-sop-changes.php http://www.bizben.com/blog/posts/588.php#comments 23 Apr 2008 21:24:00 CDT Peter Siegel, MBA SBA Loan Small Business Financing http://www.bizben.com/blog/posts/588-sba-loan-sop-changes.php The U.S. Small Business Administration has agreed to a request from lenders that participate in the agency’s small business loan programs for a 45-day extension to the effective date of its modernized Standard Operating Procedure for lender and development company loan programs.
The U.S. Small Business Administration has agreed to a request from lenders that participate in the agency’s small business loan programs for a 45-day extension to the effective date of its modernized Standard Operating Procedure for lender and development company loan
programs.

The revised document, SOP 50 10, which has been cut in length from 1,000 pages to 400, was completely re-written with significant input by program participants, including lenders, certified development companies, and SBA employees. Although the revision incorporated substantial structural changes, SBA made only limited policy changes or clarifications in the document.

The new SOP was made available to the public on March 20, 2008, to permit lenders and certified development companies an opportunity to become familiar with and implement the revised SOP.

SBA staff from the Office of General Counsel and the Office of Financial Assistance met with lenders and CDCs in sessions across the country to discuss clarifications and changes to the SOP and to hear any concerns raised about specific issues.

As a result of those meetings, SBA has identified certain technical changes to the SOP that should be made before the SOP takes effect. The lending community has requested an extension to the effective date of the SOP and, as a result, SBA is extending the effective date from May 1, to June 15, 2008. The provisions under SOP 50 10(5) will apply to all applications received by SBA on or after the June 15, 2008, effective date.

See a list of contacts / SBA lenders in your area for SBA loan assistance, pre-qualifications for business purchases throughout California. ]]> http://www.bizben.com/blog/posts/588-sba-loan-sop-changes.php http://www.bizben.com/blog/posts/588-sba-loan-sop-changes.php http://www.bizben.com/blog/posts/587-small-business-week.php http://www.bizben.com/blog/posts/587.php#comments 23 Apr 2008 19:49:00 CDT Peter Siegel, MBA Small Business Issues http://www.bizben.com/blog/posts/587-small-business-week.php The importance of small business in the U.S. will be formally recognized this week (April 21 - April 25) with the annual celebration of U.S. Small Business Week.
The importance of small business in the U.S. will be formally recognized this week (April 21 - April 25) with the annual celebration of U.S. Small Business Week, including speeches, panel discussions, award ceremonies and receptions in Washington D.C. and New York for those who can and want to attend in person, and Internet access to a number of these events, for interested small business women and men throughout the country.

Starting with the opening reception at the U.S. State Department on April 21, the week of activities include addresses by President George Bush and former Congressional Leader Newt Gingrich (with the opening keynote speech), panel discussions on a number of issues affecting small business owners, gala social events and awards presented to outstanding members of the small business community as well as individuals in business and government who have worked to improve the conditions for small business in the U.S. and people partnering with small business to benefit their communities.

The observance of U.S. Small Business week, sponsored by the Small Business Administration, with support from a number of U.S. companies, began in 1963 and has continued annually ever since, with support from every President in the last half of the 20th Century. Among the highlights this year will be the ceremony at the closing bell of the NASDAQ trading day, on April 24, to honor women entrepreneurs, followed by a reception hosted by the National Women's Business Council.

Small business owners too busy with their companies to attend the events in Washington D.C. and New York, can "participate" via the Internet, by checking out the calendar (http://www.nationalsmallbusinessweek.com/calendar), can tap into the streaming feeds and webcasts at (http://www.nationalsmallbusinessweek.com/schedule/categories/#webcast), can learn about the awards at (http://www.nationalsmallbusinessweek.com/awards/).

"Small businesses drive our economy, creating jobs and opportunities for Americans in every community across the country," said SBA Administrator Steve Preston in a news release from the SBA. He also was quoted as saying: "The SBA is very proud of the vital role it plays in enabling America's entrepreneurs, and we are excited to be able to recognize a few of these great success stories during the week."

Awards will be granted in several categories to recognize the achievements of small business counselors, lenders to small businesses, those individuals from the small business community who have aided in disaster recovery (the Phoenix Awards), and the individuals representing every state (plus the District of Columbia, Puerto Rico, U.S. Virgin Islands and Guam) in the annual National Small Business Person of the Year competition. The California candidate, incidentally, is Thanh Nguyen, President and CEO of Knowlwood Enterprises, Inc. in Fountain Valley. A native of Vietnam, Thanh Duc Nguyen is a turnaround specialist who was able to rescue a chain of restaurants from bankruptcy and bring it to profitability.

Important issues such as meeting the energy challenge, accessing new markets in a global environment, addressing the crises in healthcare and financing inner-city businesses will be discussed in various panels throughout the week for live and on-line audiences. ]]> http://www.bizben.com/blog/posts/587-small-business-week.php http://www.bizben.com/blog/posts/587-small-business-week.php http://www.bizben.com/blog/posts/585-sba-loan-requirements.php http://www.bizben.com/blog/posts/585.php#comments 22 Apr 2008 05:34:00 CDT Peter Siegel, MBA SBA Loan Small Business Financing http://www.bizben.com/blog/posts/585-sba-loan-requirements.php Not all lenders play by the same rules - all lender have different requirements and underwriting criteria. Today's SBA Loan Tip comes from Andy Dobrov at Premier Business Opportunities:

"Everyone in my circles talks about the fact that equity lines have dried up recently and that SBA loans are far more difficult to get than they were just six months ago. In spite of the gloomy anecdotes, I just completed a Quiznos transaction in record time that involved 85% SBA financing. We literally did the deal from start to finish in under 2-months with full SBA financing while everyone around me said it would be completely impossible. When I started the process, I was told by 7 banks that getting SBA financing on this Quiznos was completely out of the question. Some told me incorrectly that the SBA put a hold on all Quiznos financing due to the high default rate. Others told me the SBA was severely tightening their criteria on restaurant loans in general and that banks are only allowed to approve restaurants with unbelievably strong financials. I received lots of inaccurate and misleading information but I kept digging and finally found a bank that enthusiastically did the deal in record time.

The part that is most confusing and even misleading when dealing with different banks is their tendency to present their own rules as though they come directly from the SBA. You see, the SBA is a government agency that effectively provides an insurance policy to the bank on their business loan as long as the bank follows certain guidelines. The bank also has its own rules and approval criteria in addition to the SBA requirements, and it is not always easy to differentiate between the two. People can become discouraged by the entire SBA loan process because they initially get enthusiastic responses from their local bank and then find out the deal cannot be done due to some unforeseen obstacle. This is very common because once the agent begins to collect more information about the business, credit histories, and experience, there are always going to be unforeseen challenges and obstacles. Once an issue is discovered, the big question is whether it is specific to that bank or an actual SBA issue.

Most banks will lead you to believe that all issues are SBA issues because they don’t like to admit that their own rules are stricter than their competitors. They would like you to believe that all rules come from the SBA itself when almost half of them are unique to that bank. Figuring out whether the issue is a bank issue or an SBA issue is absolutely critical because it determines whether you have truly hit a roadblock in obtaining SBA financing or whether you simply need to go to a different bank.

For example, all banks like to have the landlord sign an agreement that gives the bank first priority access to the fixtures and equipment in case of a default on the loan.. However, not all landlords are willing to sign an agreement putting the bank first in line to take the equipment. Some landlords think they should be first in line if they are not receiving rent from the tenant. If a landlord does not agree to sign the “Landlord Subordination Agreement”, some banks will immediately deny financing while others will agree to proceed without it. If a given bank is not willing to make an exception, they will almost always tell you that it’s an SBA requirement and there is no way to do the deal without the landlord’s cooperation. However, that requirement is not an absolute SBA requirement at all, and it is up to the bank to decide whether or not they will allow exceptions.

These types of issues come up frequently during an SBA loan, and it critical to have the right consultant help you figure out the difference between a real showstopper and a minor obstacle, because experience will usually make or break your deal."

--------------------------------------------

What have been your recent experience with SBA lenders in getting financing to buy a California business?  Submit Your Comments  and share what you have experienced lately. ]]> http://www.bizben.com/blog/posts/585-sba-loan-requirements.php http://www.bizben.com/blog/posts/585-sba-loan-requirements.php http://www.bizben.com/blog/posts/586-retirement-fund-financing.php http://www.bizben.com/blog/posts/586.php#comments 22 Apr 2008 05:58:00 CDT Peter Siegel, MBA Business Purchase Financing http://www.bizben.com/blog/posts/586-retirement-fund-financing.php Utilzing your retirment funds is a viable option for buying a business with a self-directed IRA plan. Turning your retirement funds into tax-free funding to buy a business is now an option many California business buyers utilize to fund a small to mid-sized business purchase. When I chat with business buyers about their search strategies,  or their  BizBen Power User account, I find many potential business buyers - especially buyers who are buying "bigger" small businesses and they need a substantial down payment, many are turning to this strategy of utilzing retirement funds.

Although thousands have discovered this unique opportunity, some of the savviest buyers are still unaware of this remarkable funding option: You can utilize your retirement fund monies before retirement age to purchase a business without incurring early distribution penalties.

Thanks to the government’s 1974 ERISA laws, you can self-direct your retirement funds into investments that include buying a business and/or franchise. Have your eye on a corner taco stand? Thinking of turning your love for animals into a pet-grooming shop? Funding your dream enterprise with retirement monies is a dynamite option for those wishing to take control of their future by going into business for themselves.

The Benefits

While individual retirement account (IRA) funds could be used in this way for the past three decades, it’s only been in recent years that people have taken a closer look at personally controlling the investments made by their IRAs both in and out of the stock market. More specifically, an increasing number of new business owners are enjoying the benefits available to them through what are commonly known as “self-directed IRAs.”

By using an IRA structure similar to that of a self-directed retirement account to purchase a business or franchise, you can save money, increase your retirement account value, and even offer a 401(k) to your employees. It’s ideal for those who want to avoid taking out loans to finance a start-up business. Or, if your retirement funds can’t cover the full purchase price, the structure allows for multi-party purchases – a perfect set-up for husband and wife teams. You can even combine your retirement money with loan money. All these options allow you to start your business with significantly less overhead, which translates into greater profits.

For example: To finance a $200,000 business, a 10-year 10.75% SBA loan could stunt your growth for the first 10 years. However, a similar business funded with retirement monies would not be subject to debt payments. Thus, the over $2700 you would be paying monthly on your loan could be reinvested instead into your business to increase your growth rate.

It Gets Better!

Using retirement funds to finance your entrepreneurial endeavors could mean much higher returns within your retirement account, since company profits not expended on loan repayments can be deposited back into the account. In this way, your retirement nest egg grows along with the success of your business. Profits funneled into your retirement account are tax deferred, just like earnings from traditional stock-market investments. Over time, this could save you thousands in tax dollars.

These self-directed account structures provide a surprising amount of flexibility. Plans such as these allow for investments into new or existing businesses. Other plans are structured to allow for investments in real estate, vacation rentals, hard money lending and much more. Into real estate flipping? You could combine your interest in real estate with your desire for self-employment by forming a Real Estate Operating Company (REOC). Want to invest in shrimp farms in New Orleans or timberland in New Zealand? With the right self-directed account structure, you can do that, too.

Getting Started

Restructuring your IRA (or other retirement accounts, like 401(k)s) to allow for a business or franchise purchase is best left to professionals experienced in such matters. While no taxes or penalties are triggered in transferring the funds from your old retirement account into the newly created one, the IRS does have the right to tax up to 100% of your IRA value if you fail to follow the appropriate government guidelines. For this reason, you will want to employ the services of retirement account facilitators who have structured hundreds (and preferably thousands) of these accounts successfully.

Although an increasing number of investors are discovering the value of this business-funding option, there are still only a handful of companies that specialize in creating these unique accounts. Many offer free consultations and will explain in more detail how the structure works in relationship to individual business goals. Do your homework, and don’t be afraid to ask questions. Remember, it’s your money and your business.

Financing a business purchase with your own retirement funds takes the anxiety out of this first step in business ownership . . . and it puts you on the fast-track to greater success when needing capital to buy a business. ]]> http://www.bizben.com/blog/posts/586-retirement-fund-financing.php http://www.bizben.com/blog/posts/586-retirement-fund-financing.php http://www.bizben.com/blog/posts/584-selling-a-franchise-considerations.php http://www.bizben.com/blog/posts/584.php#comments 15 Apr 2008 17:40:00 CDT Peter Siegel, MBA Franchises For Sale http://www.bizben.com/blog/posts/584-selling-a-franchise-considerations.php If you own a franchise and are ready to sell, do not forget about the franchisor because they are an important part of selling your business. An important part of selling an ongoing franchise is to keep the franchisor involved in the process so that there are no suprises or challanges when it comes to complete the deal. Chatting with Joe Robertson with Southern California Business Brokers about this topic he emailed me what he thought were points that franchisees and other business brokers should consider when selling a franchise business:

"If you own a franchise and are ready to sell, do not forget about the franchisor because they are an important part of selling your business.  Much like your landlord, you will need to work with them throughout the deal.  Ultimately, you will need the franchisors approval of your buyer before the sale can be completed.  It is always a smart policy to try to keep a positive relationship with the franchisor.

Once you are ready to sell, you or your broker should contact your local franchise representative.  Let them know that you are ready to sell and they may be able to pass on buyers interested in purchasing your business. 

The following are questions you will want to ask your Franchisor before you put your business up for sale:

1. Is there a transfer fee?  If so what is the cost and what does it include?
2. What does the franchise look for in qualifying a potential buyer?  (amount of needed capital, assets, credit score, etc.)
3. What is the process of qualifying a potential buyer?  (interview, application)
4. How long does the qualification process take?
5. What are the details of the franchise agreement?  (renewal fees, royalty fees, terms of current contract)
6. Are there any upgrades or improvements that the franchise will require the new owner to complete after the sale?  If so, what is the estimated cost of them?

Make sure you have your copy of the current franchise agreement to provide to your broker.  Have the general details of the agreement, but remember that buyers will want to review the entire contract during due diligence.

Finally, be sure to keep your franchisor “in the loop” as you proceed with the sale.  Their help in the sale is essential to a smooth deal."

Joe Robertson can be reached at 949-307-3817. ]]> http://www.bizben.com/blog/posts/584-selling-a-franchise-considerations.php http://www.bizben.com/blog/posts/584-selling-a-franchise-considerations.php http://www.bizben.com/blog/posts/583-ground-leases-sba-loan-financing.php http://www.bizben.com/blog/posts/583.php#comments 15 Apr 2008 09:57:00 CDT Peter Siegel, MBA Deal And Escrow Issues Franchises For Sale SBA Loan Small Business Financing http://www.bizben.com/blog/posts/583-ground-leases-sba-loan-financing.php Chatted with Robyn King a few days ago about ground leases relating to financing issues and how some SBA lenders look at this issue. Chatted with Robyn King a few days ago about ground leases relating to financing issues and how some SBA lenders look at this issue. This is what she had to say about this issue:

"One area  of expertise I have is doing franchise lending utilizing ground leases. There are no more moving parts than in a transaction like this. For those that are not aware of ground leasing, it is a type of transaction that occurs when a land owner wants to retain ownership of the land and lease the property to a business owner. The business owner will be constructing a building on the property for a specified period of time. It may be thirty to forty years or longer. Many lenders will not like to participate in a transaction like this, because the collateral is poor. It is essentially a constructed building with no land.

Most borrowers would prefer to own the land but have to get involved in this type of transaction when land prices have soared or land is scarce.  When you find yourself in this situation, you need to negotiate well.  If it is a franchise transaction, you will have a franchisor to deal with, a land owner, a banker, an equipment vendor, a title company, an appraiser, several attorneys  and a host of back office personnel so you need to understand each player's plight and how to handle them.

After you find an experienced  lender who understands what you are doing, you will need to put both parties (the lender's legal counsel and the landlord's legal counsel together before you proceed with the construction and the funding.  Many borrowers do this at the end of the game only to find out that there are insurmountable problems that will cause the deal to faulter.  Always get in writing what each party is willing to do, so you won't be left empty handed at the end of the deal.  You will need to know what a leasehold estate is and how it effect the land owner's property.  Remember anything can be accomplished but you need to know how to approach the situation." ]]> http://www.bizben.com/blog/posts/583-ground-leases-sba-loan-financing.php http://www.bizben.com/blog/posts/583-ground-leases-sba-loan-financing.php