Why a sample file is important for troubleshooting. How to do it.

this is a sample page for a book outline. need to outline better for this and coming books in a series.

Chapter 2 - Building A Professional Team

Businesses new and established know that there are several types of professionals they will need to stay competitive and protect their operations. Finding the right professionals, from accountants to marketing consultants to lawyers can get challenging. Like employees, you need a good cultural fit in an outside service provider and consultant.

The importance of this chapter will become abundantly clear as you continue your purchasing process.A professional team to help make the odds of success grow exponentionally as the purchase progresses.  Therefoe, we want to do all that we can to avoid the pitfall associated with either weak or the wrong professional help. 

For instance, not all attorneys or accountants are interested in nor equipped to deal with small business issues. Just because it is Uncle Joe or a family friend who might step in to help, does not count as professional, unless they are specifically equipped to deal with the particular need of a small business. Searching out, interviewing, and engaging the right professional help is crucial.

Pro Team List:

                            1 Business BROKER

                            2 Small Business Attorney

                            3 Accountant Who Specializes in Small Business

                            4 Banker from a Bank that Caters to Small Business       

Section 1 Finding A Good Business Broker

Section 1 A  I’ll begin by explaining what a business broker’s role is, because most buyers and sellers of businesses use the services of a business broker. Keep in mind that if you don’t use a broker, then you as a buyer or seller, will have to be involved much more intimately in the hundreds of details of the transaction which will take a great deal of your time.

Section 1 B A broker’s typical commission is 8-10% of the total business selling price. As I’ll explain later, this may not be a wise move if you really want to purchase a business for a fair price in a reasonable time frame. However, you’ll want to read this chapter carefully whether you use a broker or not.

Unfortunately, some business brokers are not fully familiar with some of the concepts in this book. And so, it will help your position by being more knowledgeable than they are. If you do not use a business broker, then you are effectively operating in that capacity yourself.

As a matter of basic principle, all business brokers dealing with the public are bound to be honest and forthright in their conduct concerning the businesses and clients. They also have a fiduciary relationship (position of trust) to uphold between themselves and their clients.

Section 1 C Agency relationships in business ownership transactions involve the representation by a business broker (on behalf of a brokerage company) of the selling principal, whether that person is a buyer or a seller. The principal broker (and his/her agents) then become the agent/s of the principal, who is the broker's client. The other party in the transaction, who does not have an agency relationship with the broker, is the broker's customer. I would not be overly concerned about an agency relationship where both sides of the transaction are handled by one company or even one agent. On the one hand, a single agent handling both sides of the transaction puts more pressure on the agent himself or herself to nurture a deal to conclusion. Even though the seller of the business pays the commission, the buyer’s agent always has an incentive to help the purchase for the benefit of both sides because if the purchase does not take place, nobody gets paid.

Section 1 D The agent must present a business for sale in its “best light” without misrepresenting any facts. This is what could set up an adversarial relationship with the buyer. At times, you’ll find that a broker’s obligation as a fiduciary to the seller may appear to be at odds with their required conduct with prospective buyers.

Sometimes buyers hire their own business broker to represent them in finding and buying a business for sale. If a serious buyer can find a good professional business broker to represent them on a fixed fee (or hourly rate) basis, it may be well worth their money. Having a seasoned professional on the buyer’s side could mean a lower purchase price, and a more successfully financially structured deal that may help to ensure that the business buyer succeeds with the newly acquired business.

Section 1 E There is an increasing trend in business brokerage towards the use of transaction brokers. These are business brokers who basically represent both sides in the transaction. They act as facilitators to the business deal and are bound by fiduciary responsibilities to equally represent both sides; the buyer and the seller. Their principal value is to act as a facilitator, intermediarie, and problem solver. The transaction broker is paid a commission from both the buyer and the seller upon closing, but there’s almost always a negotiated fee paid in advance in case the transaction never completes.

Section 1 F Once you’re decide to retain the services of a