2013 Business Sales Stats

BizBuySell.com, the internet’s largest and most heavily trafficked business for sale marketplace, recently provided their Insight Report for 2013- a summary of small business sales as reported by business brokers for calendar year 2013.

 

With the most robust growth since 2009, small business transactions jumped 49% last year with restaurants and retail sporting the largest gains. Restaurant transactions were up 78% followed by retail business sales seeing a 71% increase.

 

According to BizBuySell, the improvement is the result of four factors:
• Improving economy
• More businesses for sale (supply outpaced demand)
• Increase in qualified buyers due to improved lending
• Overall improvement in the small business sector

The average revenue of small businesses sold was $405,905, up 13%, while the average cash flow was $97,999, up 9%. The average sale price was up 13% to $180,000.

 

Business sale multiples decreased marginally with the average sales price as a multiple of cash flow about 2.2-2.3% and average sales price as a multiple of revenue around 60%.

Business sellers received about 88% of their asking price in the 4th quarter of 2013.

Contributed by Jeff Durham. Jeff is the president of Business Brokers & Consultants of Indianapolis. You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.

 
 

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2014 Young Entrepreneur’s Business Plan Competition

We held our annual Hamilton County Young Entrepreneur’s Business Plan Competition on January 15 at Launch Fishers! Nineteen high school students were selected to represent their schools in the competition. Students were from Noblesville, Fishers, Carmel, and Hamilton Southeastern.

The students wrote business plans as part of their school class and on the day of the competition, they pitched their business plan to a panel of local entrepreneurs and business professionals.

 

Individual Competition Winners

Kaity Leighton, Come Dance With Me, 1st Place Individual Competition, Fishers H.S.

Kaity Leighton, Come Dance With Me, 1st Place Individual Competition, Fishers H.S.

 

 

 

 

 

 

 

 

 

 

Drake Baugh, Orange Leaf, 2nd Place Individual Competition, Carmel H.S.

Drake Baugh, Orange Leaf, 2nd Place Individual Competition, Carmel H.S.

 

 

 

 

 

 

 

 

 

 

 

Alec Imaizumi, Runway, 3rd Place Individual Competition, Carmel H.S.

Alec Imaizumi, Runway, 3rd Place Individual Competition, Carmel H.S.

 

 

 

 

 

 

 

 

 

 

 

Team Competition Winners

Mark Connors, Andy Dugan, Zach Zoccola, Hoosier Sports Complex, 1st Place Team Competition, Carmel H.S.

Mark Connors, Andy Dugan, & Zach Zoccola, Hoosier Sports Complex, 1st Place Team Competition, Carmel H.S.

 

 

 

 

 

 

 

 

 

Tanner Smith and Nick Owens, Sole Low, 2nd Place Competition, Fishers H.S.

Tanner Smith & Nick Owens, Sole Low, 2nd Place Competition, Fishers H.S.

 

 

 

 

 

 

 

 

Matthew Woolf & Nandhini Suresh, Base 18, 3rd Place Competition, Hamilton South Eastern H.S.

Matthew Woolf & Nandhini Suresh, Base 18, 3rd Place Competition, Hamilton South Eastern H.S.

 

 

 

 

 

 

 

 

 

 

 

 

A Fun Day at the Young Entrepreneur’s Business Plan Competition!

Young Entrepreneur's Business Plan Competition 2014 (5)Young Entrepreneur's Business Plan Competition 2014 (3)

Tanner Smith, Nick Owens, Andrew Urban, Kaity Leighton, and Amanda Balay (Fishers)

Matthew Woolf, Meg Dimick, Nandhini Suresh, Talia Sabbath (HSE)

 


 

Kaity Leighton (Fishers), Amanda Balay (Fishers), Tanner Smith (Fishers), Caitlin Moss (Noblesville), & Mark Connors (Carmel)

(from back) Drake Baugh, Andy Dugan, Daniel Hollensbe, Alec Imaizumi, Mark Connors, Brandon Rencher, Zach Zoccola (Carmel)

 

 

 

 

 

 

Young Entrepreneur's Business Plan Competition 2014

String Fever, Daniel Hollensbe & Brandon Rencher, Carmel H.S.

 

 

 

 

 

 

 

Come Dance With Me, Kaity Leighton, Fishers H.S.Young Entrepreneur's Business Plan Competition 2014 (7)

 

 

 

 

 

 

 

 

 

 

 

 

Research On Why Small Businesses Fail – Part 4

This is the fourth blog in a series reviewing research conducted by Statistic Brain and University of Tennessee (UT) on the challenges faced by small businesses.

We’ve looked at the success/failure rates by industry over a 10 year period, major causes of failure and leading management mistakes.  This blog highlights the businesses with the best and worst rate of success after the fifth year.

 

Businesses with Best Rate of Success After Fifth Year

1

Religious Organizations

2

Apartment Building Operators

3

Vegetable Crop Productions

4

Offices & Clinics of Medical Doctors

5

Child Day Care Services

Business with Worst Rate of Success After Fifth Year

1

Plumbing, Heating, Air Conditioning

2

Single-Family Housing Construction

3

Grocery Stores

4

Eating Places

5

Security Brokers and Dealers

6

Local Trucking

In our next blog post, we will review the financial, social and psychological effects of failure on the entrepreneur.

 

Contributed by Jeff Durham.  Jeff is the president of Business Brokers & Consultants of Indianapolis.  You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.   

BBC1

Research On Why Small Businesses Fail – Part 3

This is the third blog in a series reviewing research conducted by the University of Tennessee (UT) on the challenges faced by small businesses.

We’ve looked at the success/failure rates by industry over a 10 year period and examined the major causes of failure.  This post focuses on the leading management mistakes as defined by UT.

 

Leading Management Mistakes

1

Going into business for the wrong reasons

2

Advice from family and friends

3

Being in the wrong place at the wrong time

4

Entrepreneur gets worn-out and/or underestimated the time requirements

5

Family pressure on time and money commitments

6

Pride

7

Lack of market awareness

8

The entrepreneur falls in love with the product/business

9

Lack of financial responsibility and awareness

10

Lack of a clear focus

11

Too much money

12

Optimistic/Realistic/Pessimistic

 

 In our next blog post, we will review the businesses with the best and worst success rates after the fifth year.

 

Contributed by Jeff Durham.  Jeff is the president of Business Brokers & Consultants of Indianapolis.  You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.   

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Research On Why Small Businesses Fail – Part 2

This is the second blog in a series reviewing research conducted by the University of Tennessee (UT). UT’s study grouped the causes of failure into four categories along with the percentage of failures attributed to each category and corresponding pitfalls.

 

Causes of Business Failures

1. 46% Incompetence

Pitfalls:

  • Emotional Pricing

  • Living Too High For The Business

  • Nonpayment of Taxes

  • No Knowledge of Pricing

  • Lack of Planning

  • No Knowledge of Financing

  • No Experience in Record Keeping

2. 30% Unbalanced Experience or Lack of Managerial Experience

Pitfalls:

  • Poor Credit Granting Practices

  • Expanding Too Quickly

  • Inadequate Borrowing Practices

 3.    11% Lack of Experience in Line of Goods or Services

Pitfalls:

  • Carry Inadequate Inventory

  • No Knowledge of Suppliers

  • Wasted Advertising Budget

4. 1% Neglect, Fraud, Disaster

Contributed by Jeff Durham.  Jeff is the president of Business Brokers & Consultants of Indianapolis.  You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.   

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Research On Why Small Businesses Fail – Part 1

This is the first blog in a series reviewing research conducted by the University of Tennessee (UT)

After four years of operations, the percentage of small businesses that survived is meager at best.  Below are survival rates after 4 years of several industries:

  • Information 37%
  • Transportation 45%
  • Retail 47%
  • Manufacturing 49%
  • Wholesale 54%
  • Services 55%
  • Agriculture 56%
  • Finance/Insurance/Real Estate 58%

UT’s research found the following failure rates:

  • Year 1:  25%
  • Year 2:  36%
  • Year 3:  44%
  • Year 4:  50%
  • Year 5:  55%
  • Year 6:  60%
  • Year 7:  63%
  • Year 8:  66%
  • Year 9:  69%
  • Year 10:  71%

I will share more research in following blogs as well as my thoughts.

 

Contributed by Jeff Durham.  Jeff is the president of Business Brokers & Consultants of Indianapolis.  You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.   

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The Explainer: Disruptive Innovation

How do small entrepreneurial companies disrupt markets and take market share from larger established companies? Here, Clay Christensen’s theory of disruptive innovation is explained. Christensen describes disruptive innovation as a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. In order to stay competitive, larger companies must adopt a mini-startup mentality for new initiatives.

See additional information on disruptive innovation at http://www.claytonchristensen.com/key-concepts/

Posted by Cathy Langlois, Executive Director, Entrepreneurship Advancement Center.

Meet FlashPoint Partner Localstake

Print

flash·point: a critical point when something suddenly creates significant action

 

We have partnered with Localstake for the FlashPoint Business Competition. All businesses that enter the competition will list their business on Localstake to generate interest in their business. All businesses will have the chance to raise capital through Localstake if they meet Localstake’s criteria.

Learn more about Localstake and how they can help your business!

 

Click here to learn more about EAC’s FlashPoint Business Competition!

Follow us on Twitter @go_eac! Competition #eacflashpt

 

The Cook = The Restaurant Owner: Think Twice

Aunt Jody makes great cakes and cookies and has for decades.  Everyone in the family has told Jody that she should start a bakery.  “You will make so much money because everyone will love your goodies.” Jody hears time and time again.  So one day she decides that now is the time to do what everyone had been telling her… Welcome to Jody’s Treats where every bite is more delicious than the last!

Six months later Jody’s trying to liquidate and another “Jody” is buying her equipment off Craig’s List for $.45 on the dollar…

So often first time entrepreneurs take on the roll of CEO of their own business without having the skills and experience necessary to do an above average job in all facets.  One may be a good cook but the skill set required to run a successful restaurant is quite different.

So should the “Jody’s of the World” forgo their dreams?  No, they should consider teaming up with someone that has the skill set they lack.

 

Contributed by Jeff Durham.  Jeff is the president of Business Brokers & Consultants of Indianapolis.  You can learn more about how to sell your business in addition to small business consulting at http://www.bbcindy.com.  

 

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FlashPoint Business Competition

Print

flash·point: a critical point when something suddenly creates significant action

 

Are you at a critical decision point with your business?

Are you ready to create significant action to start your business?

Are you ready to grow or re-invent your existing business?

 

FlashPoint is for you if…

  • You have a startup or stage 1 business

  • You are developing a new product/service within an existing business

  • You are growing or expanding your existing business

 

Why You Should Enter

    • Win services package worth $20,000

    • Have a chance to raise capital through Localstake

    • Jumpstart your business

    • Receive validation and feedback on your business

    • Increase exposure for your business

    • Get expert advice to refine your business

    • Network with entrepreneurs

    • Prepare to pitch your business to potential investors

    • Generate interest in your business through Localstake 

 

Click here to learn more about EAC’s FlashPoint Business Competition!

Follow us on Twitter @go_eac! Competition #eacflashpt