Equity Crowdfunding Blog

Author Archives: Emily Neuherz

7 Steps You Can Take to Sell Your Business Profitably

7 Steps You Can Take to Sell Your Business Profitably

As a small business owner, how do you prepare effectively for retirement? You’ve probably been advised to save regularly and make wise personal investments – two important leverage points, no doubt. You may count on selling your business to help fund your retirement, like 35% of small business owners across the country. But are you doing what’s in your control to maximize the likelihood you’ll be able to sell profitably?

Regardless of what your answer is, we wrote this article to help you put yourself and your business in the best possible position as you look towards a potential sale.

Working Capital for a Company You’ve Acquired

 

Working Capital for a Company You've Acquired

Optimizing your fundraising

With the baby boomer generation retiring, we are set to see a high volume of small and medium businesses change hands. Owners are looking to exit their businesses and sail (pun intended!) off into retirement. If you’re interested in acquiring a small business, you’ll want to move fast to put together your offering and find the best possible terms for financing your purchase.

Kansas Winery Finds Growth Capital

Kansas’s largest winery, Wyldewood Cellars, will be establishing itself in a whole new market when it rolls out its new product in the coming months. After creating a clear plan to grow profits with its new product, Wyldewood raised capital to fund its expansion.

Wyldewood Cellars

Wyldewood Cellars, a family-owned business near Wichita, Kansas, has won over 500 international awards for their wines. They sell a variety of wines made from grapes, elderberries and other fruits, as well as the only pure elderberry concentrate on the market.

Funding a New Product Launch

The Entrepreneur’s Chicken-or-the-Egg Problem

Entrepreneurs launching a new product face a common chicken-or-the-egg problem. How can you grow revenues on your product without the capital to build and distribute it? And how do you raise capital without traction in the market?

A large distributor that could make or break a company’s bottom line – a Walmart or Costco, for example – might show an interest in your products – say, a line of nutritional supplements. If you can show some traction in the wider market and prove that you can deliver, they will consider giving you a Purchase Order. This will help you raise capital from Investors.

Buying an Existing Business? Here’s how you can finance the deal.

We’ve found that…

Getting funding to buy an existing business is hard. Lenders will put the prospective buyer and the target company through a rigorous examination. They’ll look closely at everything for any potential risks – the buyer’s track record, his or her future plans for the target, and the target’s recent performance. A new owner will always find it harder to borrow than the seller did, even though the business may have a strong track record. As small business financing remains tight, financing business acquisitions is particularly tough.

EquityNet will work with you to overcome the financing obstacles to buying an existing business.