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Join a Local Business Networking organization focused on Grassroots America.

November 4, 2012 By

ComeOnInside.com is getting ready to launch new Local Business Networking Organizations in 1st quarter of 2013.

263 local business organizations that function much like a Regional Chamber of Commerce. These are all focused on the United States.

We believe that any real economic recovery will start at the grassroots level – right here inside the 407 area code where you live and work.

Join us and refer those you know around the country here – they will simply click on their State (on the map) and then click on the area code where they live.

An example of a Local Business Networking Organization (Inside919.com) can be found here - check it out and see how these local small business owners and solo-professionals are helping each other gain visibility, enhance their reputations and grow their individual business networks with referral and strategic partners.

We will be conducting local searches for a Chamber Director (someone living and working in each specific area we serve) to lead each business community. These are income earning opportunities and if you are interested or you know a dynamic local leader who might be interested direct them to this page.

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Contribute to our Small Business Ideas and Articles eZine

November 3, 2012 By

I want to encourage you to go to InZineArticles.com so you can read what other local small business owners and professionals from around the United States are sharing.

We re-post the article contributions of our members (join Inside407 today) to one of the following categories of our Online Magazine InZineArticles.com.

Arts & Entertainment
Automotive
Beauty & Spas
Business Services
Education
Employment & Careers
Event Planning & Services
Financial Services
Health & Medical
Home Owner Services
Lodging & Travel
Mass Media
Nightlife
Non-Profit
Pets & Animals
Professional Services
Real Estate
Recreation
Restaurants
Shopping
Speakers & Writers
Technology

Our members are able to leverage this network and InZineArticles to expand your reach inside the 407 area code as well as regionally and nationally.

Embed links in your contributions to the pages on your own external website to connect with more visitors and potential prospects.

 

Go here to see how we will expand your visibility by distributing the expertise you share here.

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Selling your Business??—ARE YOU “IN THE BOX?”

January 24, 2012 By

Last week I talked about the Selling Criteria or areas that can make your listing a lot more competitive, such as good financials, proper documentation (such as lease and franchise agreements), equipment lists and others. These are areas that brokers look into to determine how viable and competitive your listing is—the probability of success.
During my discussion last week, I purposely omitted two additional elements (c’mon, I don’t want to tell you all in one week!!): Price and Seller Financing. I omitted them, because these two elements merit a separate discussion altogether.

Let’s address Price. In our office, we use a terminology for listings with the correct price structure—“In the Box.” These are listings which appear to be within an appropriate market value. In other words, if your type-business normally sells for a multiple of 2-3 times Owners Benefit (Net Profit plus owners salary, benefits, depreciation, interest and other miscellaneous additions) and yours is within those parameters—you are “IN THE BOX.” That plus good financials and documentation would make the sale of your business almost a done deal—brokers like to deal with listings that are “In the Box.”
If your listing is not getting the activity that you would like, ask your broker if your listing is priced within the market. Chances are that it will not be. Price, like in residential real estate, is the main driver in determining how long your business will be in the market place.

Secondly, let’s talk about financing. In a previous blog I mentioned that, in this economic environment, getting financing from lending institutions, such the SBA or Commercial Banks has become increasingly difficult—although there are signs of improvements in this area. So, if buyers cannot get financing through commercial banks, they cannot buy your business. Seller financing, as mentioned before, has replaced commercial banking. What this means is that the degree of financing you provide, would be an indicator of how fast you will sell your business. Today, as a rule of thumb, sellers should be looking at financing upwards of 50%. Additionally, Buyers look upon this as a gesture of confidence in the business being sold—see my blog on why it makes sense to provide seller financing for more details.

So, before you beat up your business broker for the slow response on your listing, please determine if any of the above applies. Trust me; you’ll be happier in the long run.

Should you want to know more about buying or selling a business in Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please click here for more information.
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Selling your Business??–Consider an Exit Strategy

January 24, 2012 By

In one of my recent articles, I discussed profitability (Owners Benefit) as one of the key elements in determining a business valuation. I mentioned that if a business generate limited or no cash flow, it normally can only sell its tangible assets—receivables, inventories, furniture and fixtures and equipment.—for a nominal amount. Yes, you may get more than the book value, but I find it rare. Unfortunately, over and over again, sellers come to me wanting to sell their business at a point of no return—where the business generates no profit or negative cash flow.

Believe me, I certainly can not be too critical of those sellers—I have been there. I know how hard it is to let go of a dream. However, that is precisely why I feel obligated to write this article. That’s why I recommend an Exit Strategy.

So what is an Exit Strategy? The dictionary describes it as “a means of escaping one’s current situation, typically unfavorable,” or a method by which business owners intend to get out of an investment, cash out or sell off. Obviously, and exit strategy should be developed prior to entering into the business transaction, but if you have not, do it now!!
The strategy may include questions such as the maximum cash to invest prior to disposition; the total acceptable amount in total retained losses—normally called Stop-Loss in the stock market— and the trigger valuation for upside and downside sale of your business, among a few. In other words, establish trigger points under which you will take some action to dispose of your business—good or bad!!

Ok you ask, so what is the purpose of an exit strategy? The purpose of an exit strategy is to allow enough time to sell your business in good and bad times, knowing, to some degree what the outcome will be.

Should you want to know more about buying or selling a business in Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please click here for more info.
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This weekend, Children’s Miracle Network Classic at Disney’s Palm & Magnolia golf courses.

January 23, 2012 By

The Children’s Miracle Network Classic returns to Disney’s Palm and Magnolia Golf Courses on November 12-15, 2009, for its 39th consecutive year of PGA TOUR play at the WALT DISNEY WORLD® Resort. Make a difference in the lives of hospitalized children by purchasing a ticket to the event. Net proceeds from the sale of general admission tickets directly benefit Arnold Palmer Hospital for Children and Shands Children’s Hospital at University of Florida – Central Florida’s Children’s Miracle Network hospitals. For more details on the Childrens Miracle network classic.
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Buying a Business??–What I recommend foreign buyers to do.

January 23, 2012 By

Many foreign nationals come to Central Florida to purchase a business in order to get visas into the US on a somewhat permanent basis—so long as the business is viable the visa holder may stay, if not, they may have to get back to their country of origin. The two most common types of visas are the L1 and E2 visas.

The L1 visa is normally available to foreign business owners who wish to acquire a business in the U.S. and assign a person– on an inter-company transfer—to manage the business. The person managing the U.S. business gets the L1 visa. The good news is that normally the L1 visa can be converted into a green card within two to three years.

The E2 category of US visas is normally given to foreign nationals who have bought a company in the US and wish to manage it. To qualify, you must be a national of a country that maintains a treaty with the United States. Additionally, the foreign national needs to make a “substantial and non-marginal investment of no less than $ 100,000.” However, size and nature of the business may also be determining factors. I have sold and heard of many businesses being sold for E2 reasons which do reach the $ 100K plateau.

Please understand that the above are generalizations and that you need to know more. However, now that I mentioned the types of visas, let me make some recommendations to foreign buyers.

1. Get proper legal (immigration) advice.
2. Get an ethical and reputable Business Broker to broker the transaction.
3. Get good financial advice from accountants or CPA’s. By the way, normally one of the requirements for the visa is a five (5) year business plan.
4. Buy a business which has solid financial records. Audited Financial statements and tax returns and normally good when dealing with US immigration.
5. Please do not buy “cheap,” buy good. It is better to pay more for a business that has long term potential than not. Remember, after a couple of years you will have to renew your visa and the financial results of your company may determine whether or not you stay in the country.
6. Perform a very detailed Due Diligence on this business. Your visa depends on it!! The due diligence will help you determine the viability of the business and verify that what you bought is what you are going to get.
7. Do not spend it all on the business acquisition; you may need more to run the business.
8. Understand your life style expense requirements and buy a business which supports it.
9. Buy a business with a very simple Business Model—they normally succeed.
10. Talk to other foreign nationals with E2/L1 visas. Understand their successes and struggles.

Buying a business can be stressful enough without combining it with a transition to a different country. Please follow these recommendations and your stress would certainly diminish significantly.

Should you want to know more about buying or selling a business in Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please click here for more info.
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Orlando Real Estate Update, November 16, 2009

January 23, 2012 By

Obama signs bill: Homebuyer tax credit extended & expanded- President Obama signed H.R. 3548 enacting into law an extension & adjustment of the $ 8,000 tax credit for 1st time buyers. Among other things, the extension adds money for certain move-up buyers; creates one deadline for signing a contract and a later deadline for closing; changes income requirements; and limits a purchased home’s cost to $ 800,000.

Most details for 1st time homebuyers mirror the rules currently in existence. The maximum tax credit remains $ 8,000 ($ 4,000 for married individuals filing separately), & anyone who has not owned a home within 3 yrs is considered a “1st time buyer.”

• A purchase must be under contract by April 30, 2010.
• A purchase under contract by April 30 must close no later than June 30, 2010.
• After Dec. 1, 2009, income limits rise to $ 125,000 for singles and $ 225,000 for married couples; up from limits effective through Nov. 30 of $ 75,000 for singles and $ 150,000 for married couples. The tax credit phases out incrementally at each $ 20,000 increase in income.
• Effective immediately: The maximum home value purchased cannot exceed $ 800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home’s cost.

An existing homeowner who purchases a home may now claim a tax credit of up to $ 6,500. To qualify, that owner must have owned & used the same residence as a principal residence for any consecutive 5 yr period in the previous 8 yrs.

• This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.
• Personal income limits, maximum home value, and contract/closing deadlines are the same as those for 1st time homebuyers.

Rates on 30-year loans remain below 5%- Freddie Mac announced rates for 30-year home loans stayed below 5% for the 2nd week in a row. The average rate fell to 4.91% from 4.98% a week earlier. Rates hit a record low of 4.78% in the spring, but are still attractive for people looking to buy a home or refinance. The Federal Reserve has pumped $ 1.25 trillion into mortgage-backed securities to try to lower rates on mortgages and loosen credit. Rates on 30-year mortgages traditionally track yields on long-term government debt.

FHA rule change could benefit condo market – FHA said it was temporarily relaxing its building underwriting guidelines as a way of helping the struggling sector ride out the downturn. The move could help boost sales in condos by making more FHA mortgages available to borrowers.
Similar to Fannie Mae regulations, FHA is also now approving projects itself, rather than lenders. Lenders & investors were reluctant and even “scared” to lend money, prompting the agency to step in as a way of calming nerves. Securing the blessing of the FHA is important because it allows borrowers to get loans that require downpayments of only 3.5% & qualify under less burdensome terms.

Click these links for more information on Orlando Real Estate, Orlando Rentals or Orlando Property Management.
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Selling your Business??–Get it Pre-Qualified!!

January 22, 2012 By

As I mentioned in one of my previous blogs, the Small Business Administration (SBA) has relaxed some of their policies in regards to lending. I said before that they “became a lot more flexible by making changes to the acquisition policies impacting purchases which included Intangible Assets. These changes give “Preferred Lender Providers” (PLP) more flexibility to provide business loans WITHOUT going through the SBA for final approval. In addition to providing PLPs with greater flexibility, the changes give buyers more leeway in what regards the minimum amount of equity they must invest for the project.” So, how does this benefit sellers and buyers?

Well, sellers whose businesses: (1) have good financial records (normally three (3) years worth of tax returns) ; (2) generate enough cash flow to cover the repayment of the SBA loan AND the buyer’s life style and; (3) are selling their business for at least $ 300K, may get lenders to Pre-Qualify their listing for an SBA loan. Note: I used the $ 300K, because most lenders like to provide loans in excess of $ 250K coupled with equity investments of between 15-25%–which may include seller’s financing. Sellers benefit because when a business is Pre-Qualified, it increases its market potential—more buyers are now able to afford the purchase of the business. Additionally, sellers normally get 100% of the sales value at closing. I recently sold a business within two days after it got pre-qualified.

Now keep in mind that the pre-qualification applies to the business NOT to the buyer!!! Buyers must qualify on their own merits to get the SBA loan to purchase the business. This normally means having good credit, some level of expertise in the business being bought, submission of personal financials (net worth) and the ability to personally guarantee the loan. The buyers benefit because they do not have to sell the merits of the business to the lending organization—the business has been pre-qualified.

So, if you are a seller, ask your business broker to look into pre-qualifying your business for an SBA loan. It may help you in more than one way.

Should you want to know more about buying or selling a business in Orlando or Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please click here for more information.
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Florida Employers – an alternative to group health insurance!

January 22, 2012 By

Florida employers can now offer affordable, quality health insurance to their employees at no cost to the employer. Provide a benefit by letting employees, their dependents, and part-timers choose an individual health insurance plan that meets their budget and needs, with convenient payroll deduction. Individual health insurance is far less expensive than group insurance, there are no contribution or participation requirements, and the employees can take the plan with them if they leave. Contact us for more info.
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This is the season!

January 22, 2012 By

Sea World has now a great Christmas experience called the polar express experience! The holiday season is here and guests are invited to jump aboard The Polar Express Experience at SeaWorld for a special tour to the North Pole. This Nov. 13, 2009 till Jan. 3, 2010, SeaWorld has transformed Wild Arctic into a thrilling expedition to Santa Town.
The Polar Express Experience is based on the film from Warner Bros.
This heartwarming adventure begins with a three-minute preshow telling the story of a young boy lying awake on Christmas Eve, just before midnight. Straining to listen for the elusive sound of ringing bells aboard Santa’s sleigh, the boy is jolted out of bed from the thunderous roar of The Polar Express arriving to take him on a fascinating adventure to the North Pole. Guests then embark upon that same adventure as they board The Polar Express Experience. Recreating classic scenes from the movie in a multi-sensory experience, The Polar Express Experience immerses guests with lighting, scent, sound and motion to transport them to the North Pole … and into the spirit of the season.
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