Business Brokers and the Business Sale Market

Searching for business listings in Canada can be a time-consuming and frustrating endeavor. In comparison to our neighbors to the south, Canadians do not have much to choose from when it comes to an active small business for sale marketplace (relatively speaking, of course). So, this leads to the natural question of why? Why is the company resale market in the US so much more active than it is here in Canada. That is the central topic that this article shall explore.

Canadians are generally more risk averse
When buying a company or most other types of investments, Canadians are generally much more risk averse than Americans. Buying a venture requires assuming a level of risk and a degree of entrepreneurialism that may be more frequently found in our US neighbors.

The business brokerage industry is in its infancy in Canada
On a per capita basis, there are significantly fewer brokers in Canada than there are in the US. The industry is still nascent in Canada and poised for growth. Because of this, there are simply fewer corporate intermediaries in Canada to service the needs of sellers, but especially buyers.

Small business financing
Americans have access to lending programs that, in comparison, do not exist in Canada. The US SBA has lending programs that will lend capital against a business’s assets – including goodwill, which is an intangible business asset.

Multiple representation with business brokers
Because there are many more business brokers down south than there are in Canada, some states are more prone to multiple representation of clients by brokerages. What this means is that if a broker were to list a business for sale, they would take on the seller as a client. Since there are so many professionals specialized in the field of business brokerage, they may not necessarily find the buyer in the transaction. A different broker may find the buyer and then the two professionals would share in the commission earned on the transaction.

This is not the case yet in Canada. Here, there are relatively few professionals that have the focus, skill or background in selling companies. Business brokers in Canada usually handles both ends of the deal and take on both the buyer and seller as their clients. This is called a multiple representation or dual agency situation.

The business re-sale marketplace in Canada is set to grow exponentially due to the aging population and the number of companies that must be sold in the coming years. Because of this, the business brokerage industry in Canada will grow and mature and start to resemble the industry as it exists in the US. The end results should be a more liquid market for buying and selling companies and a better overall experience for clients.

How Niche Marketing Works For Businesses and Their Profits

The majority of marketers know the phrase, “20 percent of buyers will consume 80 percent of the product volume”. For marketers, it would be nice to know those 20 percent of people because finding more people like them would be helpful to their business. It means the marketer doesn’t have to put in a whole lot of effort to sell their products/services.

The people who use your product/service heavily can be considered a niche market, one that you should try and dominate. In today’s world, niche marketing means the target, communication and selling of products/services. It also means getting feedback from the customers who most frequently use or buy from your company.

It’s important to choose the best market segment if you want to achieve a sufficiently large amount of sales and gain enough profit for the company to stay alive and flourish. When you choose correctly, it means four things:

- It can calculate the market in quantitative terms.
- It must be important enough to produce to meet and exceed your intended sales target.
- The goal must be reachable based on how your company distributes.
- It should be receptive to deliberate marketing expenditure processes.

You should also look at other features that could have a serious influence on your company succeeding or failing. These factors include:

- How influential your competitors are to entice your buyers away from your services/products.
- How similar your competitors’ products/services are to your buyers.
- How quickly your competitors are bringing in new products compared to you.
- How easy it is to get into the market of your niche.

What could be the motivating force behind segmentation and niche marketing? It could be the overwhelming desire to keep customers satisfied with your products so that they continue to come back over and over to purchase your products. Most consumers are pretty savvy and demanding. For that reason, choices in products will increase and so will global market competition.

You can even find large corporations getting involved with niche marketing, all in an effort to improve and aim their products at a new group of buyers. Take for instance the Nike Corporation. There was a time that its marketing techniques and sales hit a plateau. However, Nike redesigned itself to market athletic shoes for each sport then designed more shoes within that a particular sport. An example of this split is the basketball shoes “Air Jordan”, which furthered later into “Force” and Flight” for Charles Barkley, David Robinson and Scottie Pippin.

Make sure you recognize and estimate how big or little your prospective market is especially if you are new to this project. You want a customer base that’s big enough to sustain your product/service idea. While you want people to like your product/service concept, you must have enough people to warrant the business. You want them to maintain your company spending, profits and sales every year.

An example of this is creating a product that will last for all time. How is this a sustainable company unless a lot of people want it at one time or somebody needs to it sooner or later?

Tips on Building a Successful Home Based Business Through Marketing

Most new home business owners flop because they don’t take the time to learn the basics before setting up shop. It’s easy to get educated because there are so many resources to learn from. There’s so much information concerning starting a home business that people can become confused. The initial thought when contemplating starting your business from home is to take into account the rationale for doing it. After all, it doesn’t make sense to start a business just to assuage your ego. The reason why people start their own business or company is because they want to be independent and because they don’t want to rely on a job for their income. Independence means being your own boss. You can set your own schedule and spend your time wherever you want – in your home office or even in a public place. For instance, you can work in a library and be surrounded by others. This gives a semblance of being with other workers other people, and although you may be working without help, you’re not alone.

Independence also frees you of the nightmare of losing your job. It’s distressing that layoffs are common in today’s business world. Any worker can receive a pink slip, signaling that a layoff is imminent. Statistics show roughly one quarter of all employees lose their jobs in any particular year. A different employment report cites that most jobs last about 4 years. In the past, employees were able to depend on one job during their productive years, but that’s ancient history. These days, most employees can have over thirty jobs in their working years, and in addition have many different careers. Due to these circumstances, a growing number of people desire their own business in order to have job security.

Unfortunately, starting your own business is not as easy as it sounds. According to reports, the majority of businesses fail within a year. This does not make for a rosey picture, and it seems as if most people are stuck . So, in the first place, they feel trapped in a job that will be of limited duration, and ending in a layoff. They know that they will lose their job and be forced to seek out new work. But jobs are scarce, and so their layoff may be for an extended period of time. But on the opposite side, the outlook for starting a new business is dim.

Even so, in spite of the likely hopeless mission of starting a home business, the news is not all discouraging. A pattern has emerged due to the many people who have sought to have a business of their own. Recent signs point to the fact that the odds of being successful when starting a business are becoming less daunting. People now can see more clearly what they need to do to be successful when starting out in a new business venture. That’s because others have preceded them, and have learned what worked for them. They realize that in their journey, they’ve received help from others, and they want to pass along the knowledge they themselves have gained. The internet has made it simple to find leaders who can help new businesses succeed. This can be found at the Home Office Team, where new startups can find the road to success. If you’re contemplating starting a new business venture, or have already done so, go to the Home Office Team on the web and learn from the experts.