When you're trying to make easy money for college, you'll want to carefully investigate the business you're buying before you close on the sale.
There are also a number of different items that can be the subject of considerable wrangling between you and the seller.
The first is the purchase price.
How much are you going to pay for the business? It's not any easier to settle on the price of a business than it is to settle on the price of a new car.
Presumably, the seller will have had the business appraised.
But the seller may not be realistic and may want a higher price.
You've got to negotiate, just like you do with an automobile salesperson.
Presumably, the seller's got a bottom line and so do you.
Part of the purchase price may be based on projections of what the business is expected to earn over the next year or a set number of years.
Again, make sure these projections are realistic for easy money for college.
Look at the method of payment.
How does the seller want to get paid for the sale? If the seller wants all of the purchase price in a lump sum and you have the cash on hand, you may be able to negotiate for an even lower purchase price than if you were to pay in installments.
If the seller's willing to accept payments over a period of time-an installment sale-then you must hammer out the details.
You have to agree on the number of installments.
You also have to set a reasonable interest rate.
Because the seller's financing the sale for you, the seller is acting like a bank and will be paid for the service.
If the seller is flexible-willing to take either a lump sum or installments-then you must decide which method is better for you.
Weigh the cost of coming up with the cash up front against the added cost of interest on installments.
Where you must borrow to get the lump sum, there may be no difference in cost between borrowing from a lender to make the lump sum versus paying interest to the seller on the installments.
However, the installment method may hold an advantage: If the business is profitable, you can use funds from the business to pay off the installments.
Also look at the type of the purchase.
If the business you're buying is incorporated, there are two ways to structure the purchase.
With the Wall Street method, you buy the seller's stock and own the corporation with all its assets and liabilities.
Or you can purchase the assets of the corporation, from filing cabinets and computers to leases.
You then run the business through a corporation you set up or as an unincorporated business.
If you're buying an unincorporated business for easy money for college, you're automatically buying the assets.
Sellers typically prefer stock purchases.
They are simpler to arrange.
A price is set for the stock and that's all.
The sellers are completely finished with their connection to the business.
There are also a number of different items that can be the subject of considerable wrangling between you and the seller.
The first is the purchase price.
How much are you going to pay for the business? It's not any easier to settle on the price of a business than it is to settle on the price of a new car.
Presumably, the seller will have had the business appraised.
But the seller may not be realistic and may want a higher price.
You've got to negotiate, just like you do with an automobile salesperson.
Presumably, the seller's got a bottom line and so do you.
Part of the purchase price may be based on projections of what the business is expected to earn over the next year or a set number of years.
Again, make sure these projections are realistic for easy money for college.
Look at the method of payment.
How does the seller want to get paid for the sale? If the seller wants all of the purchase price in a lump sum and you have the cash on hand, you may be able to negotiate for an even lower purchase price than if you were to pay in installments.
If the seller's willing to accept payments over a period of time-an installment sale-then you must hammer out the details.
You have to agree on the number of installments.
You also have to set a reasonable interest rate.
Because the seller's financing the sale for you, the seller is acting like a bank and will be paid for the service.
If the seller is flexible-willing to take either a lump sum or installments-then you must decide which method is better for you.
Weigh the cost of coming up with the cash up front against the added cost of interest on installments.
Where you must borrow to get the lump sum, there may be no difference in cost between borrowing from a lender to make the lump sum versus paying interest to the seller on the installments.
However, the installment method may hold an advantage: If the business is profitable, you can use funds from the business to pay off the installments.
Also look at the type of the purchase.
If the business you're buying is incorporated, there are two ways to structure the purchase.
With the Wall Street method, you buy the seller's stock and own the corporation with all its assets and liabilities.
Or you can purchase the assets of the corporation, from filing cabinets and computers to leases.
You then run the business through a corporation you set up or as an unincorporated business.
If you're buying an unincorporated business for easy money for college, you're automatically buying the assets.
Sellers typically prefer stock purchases.
They are simpler to arrange.
A price is set for the stock and that's all.
The sellers are completely finished with their connection to the business.