• Australian Business Sellers and Buyers Register

Business Blog

Basis of Business Breakeven
Basis of Business Breakeven 150 150 Business Brokers

Break-even is an economic condition that occurs when the difference between a firm’s revenue and cost is equal to zero. Simply put, break-even is the minimum level of needed for a company to not to go broke!
Break-even looks are both Fixed and Variable costs, as well as Income. Fixed cost don’t change (eg., Rent). Variable goes up and down with Income (eg., Wages).
Do you know your Break-even in Dollars and/or Units sold?

Sell my Business Australia
Sell my Business Australia 150 150 Business Brokers

How much profit should a business make?

Profits are hard to come by – Profit ranges from 5 percent for a startup to 20 percent for a mature, established $10 million-plus business.

As a business grows it has to start hiring more people. Each employee in a small business drives the margins lower.

One study found that 90% of all service and manufacturing businesses with more than $700,000 in gross sales are operating at under 10% margins when 15% to 20% is likely ideal.

What is Earnings Before Interest and Taxes EBIT?
What is Earnings Before Interest and Taxes EBIT? 150 150 Business Brokers

In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm’s profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses.

How do I calculate total revenue profit?
How do I calculate total revenue profit? 150 150 Business Brokers

Economics – profit and revenue

  • Total revenue (TR): This is the total income a firm receives. This will equal price × quantity.
  • Average revenue (AR) = TR / Q.
  • Marginal revenue (MR) = the extra revenue gained from selling an extra unit of a good.
  • Profit = Total revenue (TR) – total costs (TC) or (AR – AC) × Q.
How does a business calculate total profit?
How does a business calculate total profit? 150 150 Business Brokers

The profit formula is stated as a percentage, where all expenses are first subtracted from sales, and the result is divided by sales. The formula is: (Sales – Expenses) ÷ Sales, expressed as a percentage.

How to Sell your Business Online Quickly at the Highest Price Without a Broker
How to Sell your Business Online Quickly at the Highest Price Without a Broker 150 150 Business Brokers
  • Send Interested Buyers a Business Summary.
  • Offer Flexible Payment Options.
  • Offer to Stick Around.
  • Offer Liability Insurance Coverage.
  • Pre-Qualify Your Buyers.
  • Employ Aggressive Marketing Tactics.
  • List Your Business on Specialized Websites, such as Free Business Brokers.
Sell your business fast?
Sell your business fast? 150 150 Business Brokers

Not all business sellers have time on their side. Consider these suggestions for a quick sale.

  • The Time to Sell is Declining (Though Not Fast Enough)
  • Strategies for a Quick Business Exit.
  • Reach out to likely buyers.
  • Add a business partner.
  • Sell to your employees.
  • Offer incentives.
  • Liquidate your assets.
How to promote goodwill?
How to promote goodwill? 150 150 Business Brokers

Here are just a few tips for creating goodwill with customers can help your business.

  • Service Satisfaction. Satisfy your customer with your back-up service for goodwill.
  • Utility Satisfaction. All-round satisfaction with the products, service and quality that is offered.
  • Brand Commitment. If your customers are committed to your brand, it’s natural that they will feel happy and contented when they buy from you.
  • Relationship Commitment. When a client is committed to the relationship, they are more likely to see you as a partner than as a supplier.
  • Fairness. This means the client feels they are getting a fair reward for the long-term relationship with you.
  • Pleasure. This is the emotional connection they have with you and your company.
6 Steps for selling your business
6 Steps for selling your business 150 150 Business Brokers
  • Determine the value of your business …
  • Clean up your business financials. …
  • Prepare your exit strategy in advance. …
  • Boost your sales. …
  • Pre-qualify your buyers. …
  • Get business contracts in order.
How do you sell a struggling business?
How do you sell a struggling business? 150 150 Business Brokers

Getting a Failing Business on the Market

  • Clear Litigation and Large Debts. This is a crucial first step …
  • Identify Why Buyers Might be Interested. …
  • Be Honest and Open. …
  • Consider Separating Assets. … sell off parts or units of the business separately
  • Be Patient.
  • 1
  • 2