And these are critical insights
Dublin, CA (Vocus) April 23, 2010
Dublin, CA -- To aid the buyer planning to acquire a quick printing business for sale, a popular website for entrepreneurs has posted a blog revealing some critical aspects of the business, not generally known outside the industry. In the BizBen.com article, buyers are cautioned about characteristics of a quick print business which might look positive but actually can spell trouble for a new owner.
“One of the reasons this is a popular business is that a competent manager can learn how to run it effectively in a few weeks,” said Peter Siegel, MBA, Founder and CEO of BizBen.com.
“However, there are some subtle characteristics of the business that the general entrepreneur may not understand and should be exposed to the information before making a purchasing decision.
“And these are critical insights,” he added. “Knowing them can help entrepreneurs avoid buying an enterprise that appears successful, but is headed for problems.”
Among those aspects, according to Siegel, is the way a quick printing business for sale relies on related enterprises for its revenues.
“It’s great to have other income sources and additional reasons for customers to come in the door. But producing posters, offering bulk mail capabilities, and providing other services only make sense if they are producing a profit.”
Siegel noted there are a several owners of quick printing business for sale who brag about their many profit centers. “But a close look might reveal that these ‘sub-enterprises’ are actually costing more than they add to the company’s profits.
“Buyers need to be reminded that it takes an investment of staff and equipment to conduct these related operations. Unless additional revenue sources really generate a solid flow of business and consistent profit, they might represent just a ‘lot of hay without the horse’.”
Another important aspect to understand when investigating a quick printing business for sale, according to Siegel, is the reason that business might be suffering a slowdown with the decline in the economy.
“It’s not surprising to see a company that has done well for the past several years going through a slump right now. That’s the experience much of the business community is up against.
“The important thing is how well a business is positioned to recover as the economy comes back.”
Siegel explained that the posting on the BizBen.com blog page offers clues that help a buyer determine “whether the company is likely to bounce back in the months ahead.
“The smart buyer wants to know the difference between a temporary reversal that can be fixed and problems that are permanent.”
Prospective buyers for a quick printing business for sale also are provided some of the key ratios that apply in the industry.
Said Siegel: “When someone is going over a company’s profit and loss statement it certainly helps to be equipped with some industry averages.
“A buyer wants to know whether the business under consideration is generating as much profit, as a percentage of gross revenues, as other enterprises in the industry.”
The article at http://www.bizben.com/ cautions that a seller showing earnings above the industry average might not be providing all the necessary information.
“You ought to know what you’re looking at and what you’re looking for, when analyzing the books of a printing business for sale,” Siegel said.
The informative articles with valuable tips for investigating specific types of businesses are a useful feature for buyers who go to BizBen.com, looking among nearly 7,000 small and mid-sized businesses for sale. The site also provides notices about upcoming educational events, and includes information for sellers as well as buyers of small and mid-sized businesses from business brokers and other professionals serving this market.
For More Information:
Contact: Peter Siegel