See Scott Hislop, President and Owner of Transworld Business Advisors of Minnesota, explain how to stay focused on the business to maximize profit and more when selling a business.

Are you considering entrepreneurship and buying a business? Are you considering franchising? Raising finance for buying a business or securing external funding can tend to be a daunting process especially when you are a 'rookie' in the industry, and venturing into business for the first time or running small enterprises. Financial planning is very crucial to avoid making decisions or mistakes that can affect you for years. Only a few options may come to your mind, but there are many more you can explore. Consider some of the common financing options outlined below to make an informed choice.

During this interview, Scott Hislop, President and Owner of Transworld Business Advisors of Minnesota, sits down with WCCO morning news host Dave Lee to answer general business buying and selling questions. Interview details In this insider's look, Scott answers some of the common questions people ask about buying and selling a business. A few of the questions discussed in the interview are the following:

Seller financing is an attractive part of business acquisition. This happens where a business owner is willing to finance the buyer in the event of a business sale. The amount of financing usually covers part of the selling price. Combining that with a buyer's down payment or other source of financing can make all the difference when qualifying a prospective buyer. There are several instances where this setup makes the most sense to both parties involved, yet it's not the best option for all sellers looking for the successor. Here are some key things to know about seller financing:

When you consider selling your business, it is not uncommon to have little idea how to calculate value of your business or prep your business for sale. Trusting a business advisor or broker to help you learn everything from prepping for the sale, calculating value, and expectations of sales multipliers could save you time and sanity. Successful Steps for Prepping for the Sale of a Business There is more to selling a business than hanging a "For Sale" sign in the front window. Several considerations help direct prepping for the sale: Do you want employees, vendors, and customers to know immediately? If you do not plan to immediately inform employees, customers, or vendors that you plan to sell the business, you need an advisor to confidentially work on the sale. Keeping plans to sell your business as quiet as possible involves making sure financial and legal advisors keep your intentions private. If word of your plans gets out, you run the risk of creating uncertainty at the very time that you need to increase its worth. When should prepping start? Begin prepping as soon as possible. Business Insider quotes Ryan Guthrie, Director of the Private Equity Practice, BDO USA, who explains, "The majority of business owners who sell their business don't plan ahead in preparation of a sale. In most cases, a lot of things that could have increased the value of the business and decreased the risk for buyers was not done." When should I prepare financial statements? Prepare audited financial statements at least two years in advance, preferably earlier. Does making improvements really make a difference? When you need to make improvements and fail to do so, you have the potential risk of having to offer price concessions to overcome areas of weakness in your business. Calculating the Value - How and Why it's Important There is no one-size-fits-all answer for valuing a business. Several factors go in to determining value, including fair market value, investment or strategic value, intrinsic value, and other factors. Some business owners determine the value of their business on their own. However, prognosticating the value of your business can be tricky. Likely, this practice will result in either a price that's unrealistically high and turns off many interested parties, or produces a price that's unnecessarily low and keeps you from selling at full value. Expectations of sales multipliers and how it makes your sale successful Selecting the right multiplier becomes critical when valuing your business. Remember that a potential buyer does not have the same sentimental attachment to your business that you might have - and naturally so. Therefore, while you choose a higher multiplier based on what you determine as the proper sales multiplier, that does not mean it is the correct multiplier. You could even set the price too low due to using the wrong sales multipliers. Using sales multipliers allows potential buyers to translate the purchase into earnings when basing price or value on some multiple of the business's earnings potential. When you use the right sales multiplier, it potentially attracts more buyers. The right sales multiplier potentially results in a quicker sale than if you allow your emotional attachment to get in the way of valuing your business. Talk with an advisor to learn more.

As an entrepreneur, you know the drive and the passion you have for business. And when it comes to becoming a business owner, you’re sure that’s the path you wish to take. However, with that path comes the choice of buying an established business or starting your own. There are pros and cons to each, but for many people, the pros are identified firmly within the buying side. Here’s an illustration of why buying an established business is the right choice.

We're all familiar with sports franchises relocating. Whether it's the Rams moving from St. Louis to Los Angeles, or the Seattle Supersonics moving to Oklahoma City and becoming the Thunder, certain things remain the same. As soon as word gets out that a franchise is even considering relocating, the bottom-line takes a hit. The same may be true of your business, which is why we've created TransWorld's privacy policy.Imagine that you own a successful real estate appraisal agency. You've done the math, consulted with advisors, and it's apparent that now is the best time to sell your business.

No business is exempt from the effects of seasonality. Sure, seasonality is easy to picture if you’re selling hats and mittens or academic planners, but what if the ebb and flow of your business sales are a little less obvious? Even if a business isn’t thought of as seasonal, interest in and demand for products and services is still affected by seasonality. It’s a perfectly natural, and at times, annoyingly unavoidable aspect of business. But never fear. Just like we anticipate the leaves turning and the snow falling, the seasonality I’m talking about is predictable. This means it can be learned and understood. And, through that understanding, those perfectly unavoidable instances can be leveraged to your benefit.

When the average individual thinks about business profitability, sales are often viewed as the singular indicator of a company's profit margins and wealth. For example, mobile phone manufacturers are viewed as immensely profitable businesses simply because of the retail price of new smartphones and tablets. However, if you separate the fact from fiction you'll realize which business types are actually the most profitable.