PURPOSE OF THE BOOK This book suggests and explains several sources of funding for an entrepreneurial venture, with emphasis on seller financing. While most entrepreneurs who want to sell their business start the sales process by demanding cash only, many end up accepting a note for part or all of the purchase price. There seems to be an unwritten rule that a seller can receive a better price if he or she is willing to provide seller financing. However, many would-be entrepreneurs assume that they must have the purchase price in their pockets before making an offer for business, and so resign themselves to a life of servitude. Therefore, this book is designed to encourage potential business owners to try to negotiate a no-cash or very-little-cash deal. Consideration of other sources of cash is included. For instance, how to approach a banker is covered, as well as financing from suppliers. There is a discussion of the pros and cons of borrowing from relatives and the necessity that such loans be documented in the same manner as transactions with unrelated parties. Topics include: types of businesses, money sources, dealing with sellers, asset financing, selling equity, and asset protection.
Book Details:
- Author: Robert A. Cooke
- ISBN: 9780470324110
- Year Published: 2005
- Pages: 240
- BISAC: BUS060000, BUSINESS & ECONOMICS/Small Business
About the Book and Topic:
PURPOSE OF THE BOOK This book suggests and explains several sources of funding for an entrepreneurial venture, with emphasis on seller financing. While most entrepreneurs who want to sell their business start the sales process by demanding cash only, many end up accepting a note for part or all of the purchase price. There seems to be an unwritten rule that a seller can receive a better price if he or she is willing to provide seller financing. However, many would-be entrepreneurs assume that they must have the purchase price in their pockets before making an offer for business, and so resign themselves to a life of servitude. Therefore, this book is designed to encourage potential business owners to try to negotiate a no-cash or very-little-cash deal. Consideration of other sources of cash is included. For instance, how to approach a banker is covered, as well as financing from suppliers. There is a discussion of the pros and cons of borrowing from relatives and the necessity that such loans be documented in the same manner as transactions with unrelated parties. Topics include: types of businesses, money sources, dealing with sellers, asset financing, selling equity, and asset protection.
BUSINESS CLIMATE: Because of early retirement, retrenchment in the corporate environment as well as dissatisfaction in the corporate environment, more and more individuals are looking for a career option. According to the Small Business Administration there were more than 550,000 new business startups in 2003. This is an increase over 2002. This promises to be an even better year according to John Canning, CEO, Small Business Lending of CIT, and the largest provider of SBA loans. PUBLISHERS TRACK RECORD: Wiley is one of the leading publishers of small business titles including Starting on a Shoestring, over 100,000 sold, 1101 Businesses That You Can Start From Home, 75,000 sold, and How to Incorporate, 70,000 sold. HOOK: How to use other people’s money to finance your new business, e.g. seller financing, financing from supplies, etc. AUTHOR TRACK RECORD: The author’s previous works have sold over 150,000 copies.
About the Author
ROBERT A COOKE, CPA, was the owner and co-owner of three successful small businesses. In addition, he has authored six books including Finance for Non-Financial Managers, McGraw-Hill, 35,000 sold, and Doing Business Tax Free, Wiley, 32,000 sold. In addition, he has written How To Start Your Own “S” Corporation, Wiley, 25,000 sold. He resides in Green Cove Springs, FL.