Issue link: http://psai.uberflip.com/i/1084319
72 2019 INDUSTRY RESOURCE DIRECTORY Two key groups have developed a series of tools to support you in these processes. 1. The US Small Business Administration (SBA) (www.sba.gov) is an independent agency of the federal government that exists to aid, counsel, assist, and protect the interests of small business concerns and to preserve free competitive enterprise. 2. The Service Corps of Retired Executives (SCORE) (www.score.org) is a nonprofit association dedicated to helping small businesses get off the ground, grow, and achieve their goals through education and mentorship. While their tools are not portable sanitation-specific, they are very thorough. The PSAI does have some Members-only tools that are focused on our industry, and these can augment the resources provided by the SBA and SCORE. Purchasing an Existing Business Buying an existing business can offer some important advantages. Compared with starting from the ground up, acquiring an existing business can represent a significant reduction in startup costs, an existing customer base, and business on the books that represents both a jump-start to cash flow and a path to growth. If the business you are considering purchasing is a current competitor, there is also the opportunity to grow your business and market share in a single move. On the other hand, there are potential pitfalls to making such a purchase, as well. A company reputation that has been compromised due to poor past service, challenges with disposal sites or permits, an unstable or disaffected workforce, or an incompatible organizational culture can wreak havoc on the road to success. Determining whether the purchase is a good idea will depend to a large extent on the due diligence steps you take. Here are some suggested starting points: • The SCORE site on how to acquire an existing business. It provides some great tutorials, checklists, and worksheets that will help you as you consider whether to buy this business. www.score.org/buying-or-selling-small-business • SCORE's tool to help you estimate the fair market value of the business you are thinking of acquiring. You may run across it while searching the previous link's website section, though we mention it specifically because this step is critical in ensuring you have the best information you can get going into a purchase negotiation. wv.score.org/resource/find-fair-market-value-business • SCORE's financial projections template. This is another SCORE tool to help you estimate what will happen to your "new" combined business after the acquisition. www.score.org/resource/financial-projections-template • SBA resources covering various considerations and action steps if you decide to go forward with the acquisition. The web page located at www.sba.gov/content/ buying-existing-business provides an exhaustive due diligence list and steps you will need to complete in preparation for closing on a business. One of the most common issues the PSAI office hears from portable sanitation operators concerns the process of buying or selling their business. While there is no "one-size-fits-all" approach that will lead to success, there are several common questions a wise business leader will be sure to answer before moving ahead. BUYING OR SELLING A PORTABLE SANITATION BUSINESS Better worksites. Better weekends. Better world. EXCLUSIVE MEMBERS-ONLY CONTENT REDACTED Join us now at www.psai.org for access to this valuable information.