business razor

business razor

How Important Is a Business Broker to Buyers and Sellers?

Posted on January 11, 2019 in Uncategorized

Establishments and companies change ownership at some point. As such, the services of business brokers prove to be highly valuable for both the seller and the buyer. An aspiring entrepreneur needs to evaluate a target business establishment, and this is where a professional business broker can offer valuable assistance. The seller also will find it rewarding to seek the assistance of a business for sale broker for the advertising and the negotiation facilitation with prospect buyers.

Benefits of Hiring Business Brokers

Selling a business can be a demanding and tiresome process. This can take up a lot of time and can even affect the value of the business, as you spend more time on its sale process rather than on the daily operations of the business. This is where the services of business brokers come in handy.

First off, a professional broker can give you confidentiality, and can assure you that only the prospective buyers you approve will be contacted. A trustworthy and experienced broker can save you time in screening prospective buyers in advance. Brokers can already check if a prospect buyer has good financial resources to buy your business. They will also ask buyers to sign a confidentiality and non-disclosure contracts. If you attempt to sell your business openly or independently, you would most likely damage your staff’s morale. You would also give your competitors the opportunity to spread damaging rumors about you and steal your valued customers. When you hire a business for sale broker, he can work anonymously, ensuring the protection of your business.

Moreover, selling your business all by yourself can be inefficient, especially if you lack the experience. A business broker generally has more experience, resources, and tools to effectively reach potential buyers faster and easier. However, reaching target buyers is just one part of a broker’s job; getting the best price for your business is his other important job. A professional broker should have the capacity to advertise your company in such a way that it can attract serious and financially stable buyers. This would definitely increase your benefits and advantages in selling your business.

Finally, business brokers can name the value of your business. This process involves more than just revenue or profit, thus, you may undervalue or overvalue your company, and these mistakes bear indicative consequences. For an experienced business broker, there is a rare chance to commit such mistakes.

From a business buyer’s perspective, a business for sale broker brings a lot of advantages as well. If you are a buyer and asked the assistance of a broker, you will be able to have access to opportunities that you won’t likely find on your own. If you do not have enough knowledge regarding the industry you chose, you can get helpful advice and useful insights from a good business broker. Your broker can also facilitate other essential tasks such as researching recent market conditions, current prices, and reasonable financing.

Trusting only Certified Business Brokers

With the increasing number of sale brokers out there, you may face challenges identifying which ones are trustworthy and which ones are bogus. To resolve this dilemma, all you need to do is check their certifications and experiences. The main organization that provides business broker certification opportunities is the International Association of Business Brokers (IBBA). A certified business broker should have at least one of these designations:

– Accredited in Business Valuation (ABV)

– Certified Business Appraiser (CBA)

– Accredited Senior Appraiser in Business Valuation (ASA-BV)

– Certified Valuation Analyst (CVA)

Although a certification may be a good sign that a business broker is legitimate and trustworthy, it does not fully guarantee his competence in the field. The broker’s practical experience is also an important aspect to consider in choosing which one to trust. Do some research or ask around for the number of transactions that your prospect broker has successfully closed, as well as some positive feedback regarding his experience in the industry. An insightful business broker can benefit a lot from his or her experiences, such as building significant relationships within the industry and learning from past mistakes. Certification cannot match such benefits and advantages.

While certification is a vital requirement in establishing a broker’s credibility, you should always take into account the experience of a business for sale broker before making a decision. Choose one who has the knowledge and experience that you will not get anywhere else. Don’t you agree that the role and importance of business brokers is essential to both business sellers and buyers?

Business Brokers – How to Choose the Right One

Posted on January 8, 2019 in Uncategorized

The vast majority of small businesses are sold without the assistance of business brokers.

But if you do decide the hire a broker, here are some suggestions on how to pick the right one and how to structure the agreement in your favor.

What Business Is The Broker Actually In?

In many states there is no training or certification needed to become a business broker. In other states, brokers are required to hold a real estate license.

In these states it’s common to find real estate agents that do business brokering as a side business. If you deal with a broker who is also a real estate agent, make sure that being a business broker is more than just his hobby.

You will pay a pretty penny for the broker’s expertise and experience – you should make sure they have that experience when it comes to selling businesses and not just experience selling houses.

Questions To Ask

If you hire a broker you will be working with them closely for months to come; they will have access to your most confidential business records; the amount of money you put in your pocket at closing will be influenced heavily by the quality of work they do.

Therefore, you absolutely must check them out.

Here are some questions you should ask any prospective broker before hiring him:

1. How long have you been a broker?
2. Have you ever owned a business?
3. How many businesses similar to mine have you helped sell?
4. Can I see a blank version of your Listing Agreement?
5. What percentage of you income comes from brokering and how much from real estate (If applicable)

Ask them to provide you with references from previous clients. Then, I suggest you do something very unusual: Actually call the broker’s references!
I know a lot of people ask for references just to see how the person will react when asked (and to see if they actuality have any). But you can learn a lot about the broker’s reliability and professionalism by talking to people who dealt with that broker when they were in the exact same spot you are in.

Business Broker Fees

There are two benefits a broker can provide the business seller. First, he can locate potential buyers while maintaining the seller’s confidentiality. And second, a broker will qualify these potential business buyers so the seller saves time by not having to deal with weak prospects.

The big negative of dealing with a business broker is his fee, which averages 10-12% of the sale price. This fee is charged to the seller.

There is also a minimum fee. A very small business will pay a flat amount, typically $8-$10,000, instead of the commission. For a business worth $50,000 this minimum fee actually works out to be a higher percentage than the 10-12% industry average. But as a matter of practice, brokers usually won’t be interested in your business unless the asking price is above $100,000.

These fees are the reason most business owners choose to sell their business themselves and rely on their lawyers and accountants for the professional assistance they need.

The Broker Agreement

If you decide to use a broker you’ll be asked to sign a broker agreement which will detail the his fees. If possible, have your agreement include the following clauses:

Timing of Payments – Have it written into the agreement that the broker’s fee will be paid at the time you receive the purchase price – not at the time the sale is closed. This way, if you finance part of the sale price over a number of years, you pay the business broker as you get the money, not all up front.

Length Of Agreement – Your listing agreement should be for a limited time. If the broker locates the buyer within that time he gets paid. Be careful of lengthy agreements that lock you in with one business broker for more than 6 months. If he doesn’t produce, you want to be able to try other options. A 6 month business broker agreement is the longest you should allow. However, because selling a business can be a lengthy process, 3 months is usually too little time for the broker to find the right buyer. Try to settle on something between 3 and 6 months. If after six months, you haven’t closed the deal but you think the broker has done a good job, you’re always free to extend the agreement. But you want to be free to decide on an extension 6 months from now, not today.

Broker’s Guarantee – Include a paragraph stating that if you find the buyer, you don’t have to pay the commission. Without this clause, the broker is usually paid no matter who locates the buyer. Before signing any listing agreement, it is best to have your attorney review it to make sure your interests are protected.

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Going Green By Shaving Straight – Four Alternatives To Disposable Plastic Razors and Cartridges

Posted on November 13, 2018 in Uncategorized

There is something that unites men of all nationalities, colors, religions and sexual preferences; something as basic to our genetic code as our desire to avoid yard work – we all grow facial hair. For the majority of us who want to remove it without having a negative impact on our fragile planet, this article was written for you.

A Close Shave For Mother Earth

Few men will argue that shaving with disposable razors (either the plastic “throw away” variety or those with disposable cartridges) isn’t bad for the environment. The approximately 68 million men in the USA alone using plastic disposable razors produce waste that consumes an astounding 34,000,000 cubic feet of space. And this does not include the space taken up by shaving cream cans and the packaging for all that plastic. Much of this waste is not recycled and ends up in landfills or is dumped into our oceans. But the news gets worse – each plastic razor or cartridge requires fuel (primarily oil) to both manufacture the item itself and to power the machinery that produces them. Throw into the mix the toxic chemicals which are either used in, or are waste products of, the manufacturing process, and the business of making, using and disposing of plastic razors becomes nasty indeed.

The High Cost Of Hair Removal

A hundred years ago, you could get a barbershop shave and a haircut for “two bits” (25 cents). Not anymore. Today, the cost of all that plastic, packaging and the advertising dollars spent to support the industry, really adds up. And the cost is passed onto the consumer. In a single year, the razors, cartridges and shaving gels/creams that you will need to keep your face smooth will cost you, on average, around $225. This cost can be even higher of you toss your expensive cartridges at the first hint of dullness or rust. For the sake of comparing this with other options, let’s assume that a man has an average of 68 shaving years over his lifetime; and that each year, shaving with disposable razors will cost him $225. The cost of shaving with disposables over a lifetime: $15,300.

To sum up, shaving with disposable razors is very expensive – both in your direct costs which will only increase every year, and in the damaged caused to our already stressed ecosystem.

Alternatives To Plastic Disposable Razors

Hopefully at this point, you are willing to examine the alternatives to the plastics. Fortunately, you do have options which will both cost you less money and decrease your “carbon footprint.”

Solution #1: Permanent Laser Hair Removal With Electrolysis

About: The desire to eliminate the burden of daily facial hair removal is nothing new, but modern technology has made it more realistic and affordable than ever. The best known and most reliable treatment for all skin colors and types is electrolysis. Around since the late 1800s (but significantly improved over time), electrolysis involves inserting a tiny needle into each hair follicle on the face and “zapping” the dermal papilla with electric current. This renders that follicle permanently incapable of supporting hair growth.

Pros: Your shaving burden will be substantially decreased or even eliminated. This also makes this method among the “greenest” of all the solutions presented here.

Cons: Each time that needle is inserted into a hair follicle and electricity is passed through it, it hurts. According to an article in Men’s Health magazine, the average man has approximately 30,000 follicles on his face. If each and every one of them are “zapped” with electricity, that is PAIN x 30,000. That’s some serious agony. As if that were not a sufficient deterrent, an interesting article on the topic of facial hair removal from the transgender community, reports that it can take from 1 to 4 years of treatment to finish the job. That’s a whole lot of pain just to avoid shaving. Treatments cost between $25 and $250 each, depending on how many follicles are treated, where you live and the experience of the technician. Trust me, you don’t want someone who sucks at it.

Lifetime Cost: Varies, but can be as high as $20,000.

Grade: D (for cost, time and suffering)

Solution #2: The Electric razor.

About: Electric razors have been around for decades. It was invented in 1928 by Colonel Jacob Schick. There are versions that work dry, others that let you use creams and lotions and even models that allow you to shave in the shower. With daily use, a quality electric razor should last you 2-3 years before a replacement is needed or desired due to either expensive parts or the internal rechargeable battery wearing out.

Pros: Using an electric razor solves the waste problem – sort of. You aren’t throwing out plastic every day and you typically aren’t buying cans of shaving cream – all good news. They do not consume a great deal of electricity and, if you use the car adapter that comes with some of the better razors, you will be even “greener” – although shaving while driving is not something I would recommend.

Cons: It’s true that an electric razor lasts considerably longer than plastic disposables, but you will go through quite a few of them in your lifetime. Unless you dispose of them responsibly, these devices (the rechargeable batteries in particular) are very bad for the environment. A good electric razor is also not cheap – a good one will set you back $100 or more. So if you buy a new razor once every 3 years, the cost adds up. Finally, of all the options examined here, this type of razor, hands-down, will give you the worst shave.

Lifetime Cost: $6,800

Final Grade: B

Solution 3: Non-Disposable Safety Razor With Disposable Metal Blades

About: While the identity of the inventor of the “safety razor” (a device which exposed only the shaving edge of a blade to the face) is a hot topic of debate in the shaving history community, there is little doubt as to the man who made this type of razor both practical and popular – King Camp Gillette. The earliest safety razors did not use disposable blades, but Gillette’s did right from the start. His blades were also sharp on both sides (known as “double-edged” blades) -giving the user two sharp edges for the price of a single metal blade. This was important, because the early “disposable” blades were not cheap. But what really converted the male population of the United States to the Gillette razor was the fact that during WWI, the US Government issued Gillette safety razors and blades to the entirety of the armed forces and allowed them to keep their shaving kits when they were discharged. The art of shaving was transformed virtually overnight.

Pros: As the “runner-up” solution, the safety razor with disposable metal blades has a lot going for it. Since the razor is permanent and typically made of metal, you can use it for years or possibly a lifetime with proper care, although you might find it fun to use and collect a variety of these razors. And since you can always pull a fresh blade from the pack, a great shave is always close at hand. Additionally, the thin metal disposable blades are MUCH less expensive than the plastic multi-blade cartridges – a 10 pack of Merkur blades sells on Amazon for $8.29 + $3.99 shipping. If you can get an average of 4 shaves from each blade, that’s an average cost per shave of just 31 cents. Plus, since you are disposing of metal rather than plastic, the carbon footprint of this solution is significantly smaller than that of plastic disposables. A good quality safety razor from a company like Merkur will set you back $30 to $90 – a one-time expense.

Cons: Although they produce significantly less waste than plastic disposables, this solution does generate millions of sharp, wasted metal blades every year – something I’m sure your trash collector does not appreciate. They are not biodegradable and are likely to remain a safety hazard for decades. Plus, fuel is used in the manufacture of the blades. What’s more, each pack of blades comes in a container made of plastic or metal which is also discarded. Cans of shaving cream cost in manufacturing, disposal and use, unless you use shaving soap and a brush (recommended for a better shave).

Lifetime Cost: $8,826 (the majority of the cost being replacement blades)

Final Grade: A-

Top Rated Solution: Shaving With A Vintage/Antique Straight Razor

About: The straight razor has been around for centuries and man has yet to produce a razor that does a better job at giving a close shave. The “modern” (those made over the past 175 years or so) straight razor is a marvel of human engineering. The finest razors using the best metals and the best craftsmanship came from England, Sweden, Germany and the United States. Japan also produced some excellent straights, although the style is significantly different from “western-style” razors. Never, ever shave with a razor made in Pakistan or India.

Pros: Using a straight razor is, by far, the “greenest” way to remove facial hair. There are no blades to throw away. A shaving brush (used to apply shaving soap) will, with minimal care, serve you for a decade or more. You really have only two recurring costs – shaving soap and two professional honings per year. If you use a good quality hard soap, you will spend around $20-$25 each year on soap. Professional honings will set you back about $15 each. Since it takes a week or two to get your razor back from a Honemeister, it’s a good idea to have at least two straight razors in your shaving “rotation” – ensuring that you will always have one to shave with when the other is in the “shop.” Straight razor shaving is also good for your skin. Kenneth Beer, M.D., a Florida Dermatologist interviewed by Men’s Health magazine says, “The low-grade friction from shaving stimulates collagen production and smoothens the skin. That’s one of the reasons men typically have far fewer wrinkles than women do.” It also provides, hands-down, the best shave of any method available. Sweet.

Cons: Most of the costs of shaving with a straight razor are paid up-front. A high-quality straight razor can set you back $80 to $150 or more. When you get to the very expensive razors however, you are paying more for style than you are for shaving quality. If you buy a new razor, there is the environmental impact of production to consider – although the fact that it is done only once still puts it way ahead of safety razor blades. But here’s a great “inside” tip – buy a vintage or antique straight razor in excellent condition. You will pay no more than $75-$150 for a really good one and, since it is already made, your carbon footprint is zero. Also, many of these razors have a beauty and level of craftsmanship that is scarcely found today. You will also need a shaving brush, a leather strop and a barber’s hone. This means that your total startup costs will be between $200 and $400. Straight razor shaving also takes some time to get used to. Your skin must become accustomed to that beneficial “low-grade friction” mentioned earlier, so you will experience quite a few nicks in the first few weeks. But as your skin becomes “conditioned” to the straight razor and you become more skillful at using it, you will find it to be a very comfortable way to shave. Your only “consumable” is shaving soap, but that is traditionally packaged in paper or a recyclable box. I should warn you that straight razors can be addictive. Many shavers end up being collectors – I have many clients who tell me that they “want to shave with a blade two centuries old.”

Lifetime Cost: $3,870 (assuming you avoid “razor addiction”)

Grade: A+

I hope you find this article helpful. It was fun to write and the fact-finding was illuminating. If you have any questions, feel free to email me at [email protected]

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