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Buying a Business - A Career Option?

Updated on May 20, 2014

Can You See Your Future?

Owning a Business Can Have Huge Financial Benefits

Getting wealthy in America is often done through small business ownership. You don't have to have a big business to get big financial rewards. We often see businesses with sales as little as $2,500 per day that generate salaries and income for business owners well over $200,000 per year. Year in and year out.

What Does It Cost To Buy a Business?

There are many ways to calculate the value of a business but a common method is to establish a multiple of earnings. The trick here is to properly define what the earnings are.

What needs to be determined is how much real profit the business throws off. This can be difficult for inexperienced business owners. Fortunately there are many CPA firms who can assist with the financial analysis.

Also, business brokers spend their lives reviewing small business financial information and can be a good source.

Fundamentally, you're trying to determine the total sales for the business minus all the expenses related to operating the business. The "leftovers" is the value baseline. Take that "leftover" number and multiply by 3 and you'll have an average price for a small business.

That gives you the guideline for the price of the business. You can refer to my article on how to use an SBA Loan to buy a business, just clip on my button at the top of the page for this post.




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