Title: Silver Bullet #1: Don't Sell Your Business. Lease It
BUSINESS LEASING
You might not be ready, or in a position to lease out your business right now. If not, we encourage you to tuck this away for a better time in the future. Business Leasing is something that every business owner should know about.
WHAT IS BUSINESS LEASING?
If you own a business, sooner or later, you will be faced with a decision about it.
- Keep working to age 100 and hope for the best
- Close your business and walk away empty-handed
- Give it to a family member
- Turn your business over to Probate (you are dead).
- Sell your business. Relax and enjoy life.
- Lease your business for long-term monthly income
and continue to own it while it grows without you.
Maybe you plan to work until you can’t. The question becomes, do you choose to work, or do you have to work?
Business leasing is an innovative retirement alternative to selling your business, specially designed for business owners who have not saved enough for retirement. Business leasing bypasses all of the traditional problems of selling a business.
- Walk away and collect
- Higher guaranteed long term monthly income.
- Hands off management
- Work by choice, not from need
- No capital gains tax
- Increased income as the business grows
- Still own it. Can always sell it.
- Keep your retirement
- Get the most money from your business
The truth about selling your business.
Over 90% of all small business owners who try to sell their businesses realize significantly less than what they ask for. If they are lucky enough to find the right buyer, they discover that they have overvalued the business to begin with, and after broker fees, legal and accounting costs, capital gains tax, and contingent deductions required by the new owner, the money they finally receive is rarely enough to meet the needs for retirement.
Business Leasing takes no less than 90 days to prepare, and can take up to a year to prepare to lease. Just like owning real estate, you must lease the business in good “show ready” condition.
So, what kind of dollars are we talking about here?
After it's all said and done, you have four choices about what to do with your business.
Q: How much can I lease out my business for?
A: You can lease your business for last year’s 12 month gross profit divided by 6 (your annual renewable lease). Multiply your annual lease times the number years that you plan to renew.
Q: How can increase my lease value amount?
A: For starters, by increasing the business margin (Gross Profit) for the current year to lease for the next year. Unlike selling your business for a one time static amount, you are renewing your lease at the end of the term based on the the improved business value.
Q: What happens if my Lesseee fails in my business?
A: Your annual 12 month lease is guaranteed while you (or we) spend the rest of the year looking for another tennant.
This is unlikely, if you engage a Management Company to manage the business in your absence.
Q: What happens at the end of the lease?
A: You still own the company. Renew the lease based on how much the Lesseee grew your company during the lease term. You may also choose to sell it. After all, a good lesee is a built-in buyer.
Business Leasing is a viable, long term alternative to selling.
For more information, contact Michael J. Wolf
NBEC Global Systems
1-888-679-4410
www.nbecglobal.com
13 INTERVIEW QUESTIONS for a preliminary business lease assessment:
- Why are you in business?
- What type of business? (Industry)
- What will be the gross sales of your business in 5 years?
- What was your Cost of Goods Sold percentage of sales last year?
- What will be the gross sales of your business when you are 65?
- What do you plan to sell your business for at retirement?
- How much could, would should your business pay you every month
for not showing up?
- What is your personal net income a year (taxable)?
- In what year will your house be paid off? (If you own a house).
- How much would it be worth (estimate) if you sold it today?
- Have you ever been in the military?
- Have you ever held a public service position?
- Do you own more than one business?
REBUILD YOUR BUSINESS.
Get It Safe. Keep It Safe.
REBUILD YOUR BUSINESS. Get It Safe. Keep It Safe.
PROVEN "SILVER BULLET" HIGH SPEED LEARNING
BUSINESS IDEAS FOR IMMEDIATELY
INCREASING INCOME AND PROFIT
IN 2021
The National Business Education Council (NBEC) is made up of teams of small business subject matter experts, located in the US. and countries across the globe. Our sole purpose is to help small businesses rebuild, get safe and stay safe.
Twice each month, we conduct online 60 minute “Silver Bullet” learning forums, bringing ways to help our small business members increase their income and profitability.
SILVER BULLET INTERACTIVE SESSIONS are free on Zoom.
Bring all of your questions with you. Everyone’s questions and concerns are covered. If attendance is too large, another session will be rescheduled for the same topic.
Choose your topics of interest. Register below each time. The cutoff date for each session is FIVE business days prior to the date of the event.
Any materials needed for the session will be forwarded to your registration email. For questions regarding this event, email: tguajardo@kanketa.com.
CLIMB ABOARD!
We've Got Your Ticket.
FRIDAY, JANUARY 15
Registration Cutoff: January 8
DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME.
Answers the Question: “What do I do if I didn’t save enough for retirement?
ALL ABOARD
IN 2021
TRACK 1: January Departure DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME. Answers the Question: “What do I do if I didn’t save enough for retirement?” TRACK 2: January Departure STAY IN CONTROL OF YOUR BUSINESS Answers the Question: “Why can’t my accountant take care of everything?”
TRACK 3: February Departure YOU MUST BE A MILLIONAIRE BY AGE 60… OR ELSE! Answers the Question: “How much should I have in the bank at retirement?”
TRACK 4: February Departure MAKE YOUR CHECKBOOK MATCH YOUR P&L Answers the Question: “How much profit do I really make? Where is it right now?”
TRACK 5: March Departure MINIMIZE YOUR COST OF GOODS SOLD Answers the Question: “How much should my cost of goods sold be?”
TRACK 6: March Departure ONLY RISK WHAT YOU CAN AFFORD TO LOSE Answers the Question: “How much should I reinvest into my business?” TRACK 7: April Departure SET YOUR BUSINESS UP TO MAKE THE MOST PROFIT Answers the Question: “How Does This Apply To Me If I’m A Company of One Person?”
TRACK 8: April Departure PLAN TO HAVE 4 MANAGERS IN 60 MONTHS Answers the Question: “How Many Managers Do I Need?” TRACK 9: May Departure PAY YOURSELF WHAT IT COSTS TO REPLACE YOU Answers the Question: “How Much Should I Pay Myself As An Owner?”
TRACK 10: May Departure KNOW WHAT YOUR TIME IS WORTH Answers the Question: “How much time can I afford to give to my business?”
TRACK 11 June Departure KNOW THE GOOD WILL VALUE OF YOUR BUSINESS Answers the Question: “How much is my business worth right now?”
TRACK 12: June Departure PAY YOUR PEOPLE WHAT YOU CAN AFFORD Answers the Question: “Am I paying my people too much? Not enough?”
TRACK 13: July Departure ONLY GIVE RAISES BASED ON THE PREVIOUS YEAR Answers the Question: “How much can I afford to give for raises this year?” TRACK 14: July Departure PAY YOURSELF THE MOST FROM NET PROFIT Answers the Question: “How much money should I personally take out of the company? What’s reasonable?
TRACK 15: August Departure MAKE MARKETING A FIXED COST Answers the Question: “How much should I invest in marketing?
TRACK 16: August Departure DON’T OVERPAY FOR DEBT REDUCTION Answers the Question: “How much should I pay to retire back debts? TRACK 17: September Departure ONLY TAKE ON DEBT THAT YOU CAN AFFORD Answers the Question: “How much debt can I have before I am unsafe?”
TRACK 18: September Departure HOLD THE LINE ON ACCOUNTS RECEIVABLE Answers the Question: “How much should my accounts receivable be?”
TRACK 19: October Departure HAVE A SUFFICIENT LINE OF CREDIT Answers the Question: “How much should my line of credit be?”
TRACK 20: October Departure SAVE 25% OF YOUR NET PROFIT EVERY MONTH Answers the Question: “How much should I put into savings every month?
TRACK 21: November Departure CONTROL YOUR CUSTOMER CREDIT Answers the Question: “How much credit should I give to all my customers combined?”
TRACK 22: November Departure REDUCE CORPORATE TAXES BY ANOTHER 8.25% Answers the Question: “How much should I save for corporate taxes?”
TRACK 23: December Departure DON’T GET AN INVESTOR Answers the Question: “How much stock should I give to an investor?”
TRACK 24: December Departure BE YOUR OWN BANK Answers the Question: “How can I borrow if when the bank says “NO?” |
