If you like this e-zine, please "email it forward" to someone you know who's interested in the tea business. If a friend did forward this to you and you like what you read, please subscribe so you don't miss the upcoming issues.

If you have suggestions, article requests, comments, or corrections, please feel free to contact me.

To be sure you never miss an issue of "Tea Business Success News" in your e-mail box, please add the following Tea Business Guide domain to your list of trusted senders / your address book / contact list (in your e-mail software) and to your ISP/ mail service's "whitelist": @tea-business-guide.com

© by Sally Jones; all rights reserved

Some time ago I wrote about having an exit strategy. Having a plan for leaving your business is important in order to have a smooth retirement.

Today I would like to discuss an "entrance strategy." What do I mean? I am talking about buying an existing business. There are certain steps you should take if you are going to take this course of action.

First, you need to have a solid understanding of your own financial situation. How much money are you willing to invest? How much money do you need to make or do you intend to make? The answers to these two questions will determine what business you would be able to buy.

Once you have the answers, you can search for a tea business or a business that can be converted to a tea business and that fits your situation.

The next step is making an offer. How do you determine how much to offer to show that you are serious about buying the business, but not offering too much? Since a letter of intent is non-binding, sellers do not take them seriously.

What you need to do is make a written offer that contains all the legal language necessary to transfer the business. You should include any contingencies that will give you, the buyer, the required safeguards. You can find some standard forms for this at an office suppy store or you can consult an attorney.

Next step after the offer has been accepted is for the buyer to do their due diligence. There is no point on beginning to do this until you have both settled on a price and down payment price and terms of the agreement.

This is where you contact your accountant to verify the seller's cash flow. Your accountant will go over the financial statements so you will know what to expect. Your accountant will not tell you to buy or not buy the business. This is a decision you will have to make.

Most accountants think their clients pay too much for a purchase and, on the other hand, they think if their clients are selling a business, they didn't get enough.

The last step is to have a disinterested third party handle all the paperwork. You will need a bill of sale, search on liens, contacting governmental taxing agencies, business licenses, etc. in order for the business to change ownership properly.

As I have stated before, an accountant and an attorney may cost you up front, but will save you money and headaches in the long run.

Have a coupon available on your website that would only be for your website customers. The coupon could be for 1 ounce of their favorite tea or your house blend. It could be for a free scone or a free pot of tea. It could be a 10% discount on the regular price of an item from your retail store. This will encourage any of your customers not signed up for your email to sign up for it.

August 17-19, 2006
The 3rd China (Shanghai) International Excellent Coffee & Tea Exhibition 2006, Shanghai Mart, Shanghai, China

September 8-9, 2006
Fresh Cup Roadshow, Philadelphia, Pennsylvania

September 27-30, 2006
China Tea Expo, The World Trade Exhibition Center, Beijing, P.R. China

September 26-28, 2006:
Tea & Coffee World Cup, Shanghai, China

October 2006
Fresh Cup Roadshow, Dallas, Texas

June 9-11, 2007
World Tea Expo, Georgia World Congress Center, Atlanta, Georgia

If you have an event coming up and would like to be included in this listing, please Contact Me

We would like to hear from you. If you have any tips that you found helped you build a successful tea business, please submit a tip and we will publish it in a future Tea Business Success News. We will also give you a permanent link to your site.

Several readers have asked me about doing a brochure about their business. I think this is a good idea--especially if it is in color. Include pictures of your business unless you are working out of your home. Show a picture of you doing whatever it is you do--catering, tea house, tea bar, etc. Make sure to include how to contact you--phone number, address, web site, email address, etc. Place them in businesses that are complimentary to your business. These places can include antique stores, gift shops, boutiques, hotel lobbies, beauty salons, etc. Also let your local tourism businesses know about you.

Contact Sally