Originally written by Timothy Adler on Small Business
Amazon has said that it could pass the cost of the government’s planned 2 per cent digital tax onto small businesses that sell through it.
The 11 March Budget is expected to introduce the “digital services tax”, a 2 per cent levy on UK revenues of technology businesses, which pay little or no domestic corporation because their European headquarters are based in tax havens such as Ireland or Luxembourg.
The government expects the new tax to bring in almost £500m a year.
>See also: Essential Black Friday tips for Amazon sellers
However, Amazon UK country manager Doug Gurr, told the Financial Times that the tax could raise costs for small businesses which use its sales and delivery platform.
When France introduced a 3 per cent levy in July 2019, Amazon hiked its charges for small business sellers by the same amount.
Gurr said: “If you are not careful in the design, these taxes can actually hit all of the small businesses that use our services. The majority of sales on our marketplace are independent businesses. If that tax is passed on to them, that is quite a significant hit.”
In America, more than 1.9m US-based small and medium-sized businesses (SMBs)
Tag Archive for Buying and selling
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How to negotiate the best deal when selling a restaurant
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
Selling a restaurant business for a reasonable figure might at first glance appear to be something of a gamble.
But just like the process of buying a restaurant, negotiating a deal becomes a lot easier if you put some time and effort into the preparation.
Put another way, there are a number of things you can anticipate (and thus be prepared for) before they arise. So, with that in mind, here are a few things you should think about well before any sale negotiation takes place.
Business valuation
A solid business valuation will form the cornerstone of any later negotiations you conduct with an interested buyer. After all, your negotiating strength will just melt away if a potential purchaser is able to undermine the logic and rationale upon which your estimate of the value of your business is based.
Having a clear understanding of the value of your business is very important when it comes to negotiating the terms of the sale. So, obtaining a professional valuation from a respected valuer should be your first priority. Not only will a professional familiar with the restaurant trade be more likely to produce a reliable valuation, your valuer should also
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6 tips to maximise product sales over Black Friday and Cyber Monday
by Lara Morgan • • 0 Comments
Originally written by Lara Morgan on Small Business
Some say the holidays are a goldmine opportunity for businesses to maximise product sales. But if you want to take a real break this season or next, use your time wisely.
Plan it, communicate it and make sure you damn well stick to it for your own mental wellbeing!
For those selling products it isn’t rare to hear that certain businesses (especially fashion, packaged goods, and luxury items) do up to 80 to 90pc of their revenue during the holiday months… months which have already started for many shoppers.
Indeed, I heard last month some retail brands are so challenged with poor high street performance a new line goes on sale the day it goes on display. In tough times, as retailers we have to be utterly at the top of our game.
Although more and more people are shopping globally, they have different expectations. Don’t jump in without doing your own due diligence. Now is definitely not the time to open shops in other countries. Maximise what you have set in place ready for a springboard to open new territories next year.
>See also: Essential Black Friday tips for Amazon sellers
Holiday season sales work – to a
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4 questions you need to ask buyers when you’re selling your business
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
After years of hard work, you will probably be on the lookout for the best buyer possible when you’re selling your business.
Spending time on preparing your business for sale is one way that you can do this; another way is to know what questions to ask interested parties.
It is usually the buyer that comes with the right kind of questions to ask. However, if you are prepared, you can have a list of questions yourself so that you can easily spot the serious buyer from the window shopper.
So, if you’re thinking of selling up, read these pointers of what to ask a potential buyer.
1. Why are you interested in buying?
Asking a direct question such as this one will help you to quickly understand the buyer’s intentions. For example, if you are running a marketing agency and they have years of marketing experience, they might be looking to go out on their own. Or, they could be hoping to acquire your business in order to expand their already existing agency.
In both these cases, however, they should be able to approach you with a considerable amount of information as to their plans for the business.
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7 essential checklist questions to ask when you’re buying a business
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
Without a doubt, buying your first business can be an intimidating process. We’ve produced a checklist of vital enquiries you should make to simplify the process.
Why are they selling their business?
You may expect to hear the seller wants a different challenge, plans to retire, or maybe has health issues – all of which may stack up within the context of all you see and hear. But if the present owner is looking to exit the sector when the business income seems to be falling away, or if new entrants are starting to build their own presence in the market, these are clearly factors that will need to be carefully investigated.
So how will you judge the truth of what you’re being told? Unfortunately, you can’t really make a definitive judgement. However, an experienced due diligence team should be able to test the seller’s official position against the tale told by the financial records. So, don’t be afraid to get a professional second opinion to investigate.
What’s included in the sale?
This question encourages a response beyond a mere listing of assets. It also makes it easier for you as a potential buyer to ask to hear
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Buying and selling an online business: what to be aware of
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
Established principles of buying and selling a business still apply with an online company – for instance, the need to dig deep and do thorough research – yet there are some differences.
The lack of bricks and mortar, for example, may make the process a little cheaper, and you may not have any significant staff employment issues to consider. Nevertheless, on the buy side or the sell side it’s mostly a matter of identifying the core issues to consider.
Here’s a rundown of what you need to take into account when buying or selling an online business.
Buying a business
Traffic
The success of an online business is measured in traffic volumes, which roughly equate to high street footfall.
But there’s good and bad traffic. So, you and your team will need to do your own analysis and verify any historic traffic data you receive. In essence, you will want to work out what percentage of the traffic generates business income.
In addition, you will want to establish that business arrives from a healthy mix of sources. Until you have such information, you can’t value the business.
Growth
As with any business, you should be able to track the figures over time.
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What Facebook’s Libra currency means for your small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Libra is the new cryptocurrency that Facebook plans to launch worldwide in 2020 that will enable its 2.4bn users worldwide to pay for goods and services or send money worldwide with no transaction fees.
Kevin Weil, vice-president of the proposed Facebook payment service, says the company hopes the new currency would last “hundreds of years”.
Why is Libra significant?
Libra will give Facebook the full picture of its users. The world’s biggest ad platform already know almost everything about you – who you are friendly with, where you go, what you like and what you think (at least publicly). However, although it knows which products get your attention so small businesses can sell to you, what you actually buy has been unknowable. Until now.
How does Libra work?
In truth, Libra is not really an unregulated cryptocurrency; it’s really a PayPal or a garden wall version of crypto pegged to a basket of fiat (government-backed) currencies and supported by some of the world’s biggest financial brands including Visa and Mastercard. Libra’s assets managed by an independent Swiss trust, the Libra Association, which Facebook would be just one voting member of.
Facebook sees Libra as an evolution of PayPal: simpler
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Buying a business on a budget: what are your options?
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
When it comes to buying a business, there’s no need to break the bank to find the right opportunity for you. An important part of success is not over-extending yourself when it comes to your finances.
That’s why it’s important to keep in mind that there are businesses available no matter your budget options.
We give you some ideas of businesses and industries that you should consider if you’re on a budget.
Internet business
The internet has really opened up a whole world of opportunities for entrepreneurs. If you spend enough time researching, you should be able to find an internet business for sale that fits into your price range.
Of course, you will still need to do a very thorough due diligence to make sure that your investment will pay off. Make sure that you’re not just buying a website. You should be buying a functioning business that has customers and marketing and social media just as a brick and mortar business would.
You will still need to see their sales records and their profit margins so that you can be sure that you are buying a business that will bring you returns in the long run.
To value
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Financing the purchase of a small business
by Anna Jordan • • 0 Comments
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Small businesses must act now to continue to trade with the EU
by Stephanie Spicer • • 0 Comments
Business owners need to prepare now to ensure their business can continue to trade with the EU if the UK leaves without a deal. The warning comes from HMRC which has proffered three steps for businesses to consider in order to do this: Register for an Economic Operator and Registration Identification (EORI) number; Consider how they
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