If you believe in what we do, I personally ask for your support in our mission to nurture entrepreneurs and build strong, successful small businesses. Your giving will help keep this free resource alive. Please help. Thank you in advance for your contribution, and I wish you and your business much success in this New Year!

OR

Write a check to: My Own Business, Inc. 13181 Crossroads Parkway North Suite 190 City of Industry, CA 91746, U.S.A.

* My Own Business is a 501c(3) nonprofit public charity. All donations are tax deductable. Donations of $75 or more will receive a written receipt by mail.

Today many business owners are fearful. They are afraid of recession, new competitors, diminishing cash flows and uncertain futures. But for entrepreneurs looking for ways to grow by buying businesses, times are very good. As Warren Buffett has put it: "Be fearful when others are greedy and greedy when others are fearful." Here are some common mistakes to watch out for when buying a business.

• Branding mistakes. If the company you buy has taken years to build, think twice before changing its name.
• Before closing, integration issues such as labor, operating cultures, spending disciplines and lines of authority should be worked out.
• Take time before closing to resolve problems and potential unrecorded liabilities.
• Carefully analyze whether or not to retain the management. In some businesses that are relationship-driven, retaining managers and their client networks may be important for success.
• The seller's suppliers may not want to sell to you. So verify before closing.
• Your existing accounting system and internal controls may not be adequate to manage the larger organization. Have the necessary systems in place.
• Borrowing too much money is probably the biggest risk of all. So restrict the annual debt service to a small fraction of your conservative annual cash flow.

There are a number of valuation methods you can use to help determine your offering price. From our "Building My Own Business" course, see:
http://www.myownbusiness.org/buying_businesses/#5

Need products or services? We've worked hard to bring you a whole list of useful Free Offers and Specially-Discounted products. Only for MOBI visitors. At the MOBI Small Business Warehouse you will find special deals on everything you need for your business.

We only offer products that we recommend in our courses. For each product, we strive to negotiate the best price possible for our students.

All sales go toward supporting My Own Business, Inc, a 501c (3) charity providing quality business education.

We welcome your questions to be answered in this Newsletter feature! Here is our Q and A for this edition:

Question: I have a son and daughter in high school and would like to interest them in taking over my business in the future. How should I go about this?

Answer: Now is the time to establish a strategy for your transition plan. But it is not easy: fewer than 40% of businesses have implemented plans and only 15% even make it to the second generation. It will require a collaboration of experts dealing in taxes, legal issues, family matters, training strategies and family counseling. So it is a long-term process that will take time away from your regular management responsibilities. Here are some points to ponder:

• Over time evaluate your children's qualifications and earnestness to carry the business forward.
• Your plan will have a much better chance if your children work in the business long before taking it over.
• A formal business education will be important for your successor(s) including a college degree in business administration.
• Create an advisory board now that includes the professionals and firms that specialize in succession who can facilitate working through the planning issues.
• Resolve sibling goals early-on so that children who are not to be active in the business receive other family assets while those who work in the company get shares.