Selling recorded material online

Dear Karen: I’d like to sell recordings of my speeches and interviews online. How can I figure out how much to charge?

Answer: Unique products are tough to price. Start by estimating the value you’ve created, said Sarah Shaw, principal at Entreprenette.com. How much would you charge to convey this information in person? How difficult is it to find this information?

“See what your competitors are selling and for how much. You don’t want to price yourself out of the game,” Shaw said. “I think you will find that most downloads run 25% to 50% less than an in-person event.”

Another consideration is the length. A quick interview should be priced less than a three-hour “how to” lecture.

“If you want to reach a select group, price higher, and if you want the masses to be able to afford it, price it to move,” Shaw said.

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Preparing to buy a business

Dear Karen: Is this a good time to buy a business?

Answer: Yes, if you have funding or can get it. Business valuations are lower than in recent years, and sale prices reflect worries about a scarcity of qualified buyers.

You must have business savvy and stamina to keep a company going through a downturn, however.

“Purchasing a business takes many hours of just plain hard work. If the purchaser is familiar with the particular industry, that’s a huge plus,” said Sheldon Kopin of JBS Associates in Cincinnati.

You might contact venture capital firms about companies that they want to remove from their portfolios, or talk to larger corporations about small divisions they are looking to sell. Business brokers in your industry probably will have possibilities they can discuss with you.

Before you buy a company, you might ask the seller to hire you temporarily. “In this way, a potential buyer has the chance to learn the business in-depth before deciding to make an offer,” Kopin said.

Make sure you have an experienced management consultant, an accountant and a lawyer working with you, Kopin said.

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Qualifying for an SBA loan

Dear Karen: How does a small business or start-up successfully qualify for the new stimulus SBA loans without three years of history?

Answer: The Obama administration has announced programs that increase government guarantees on small-business loans, but they don’t change the fact that banks typically do not lend to start-ups and young firms lacking successful track records.

In the past, start-up entrepreneurs might have gotten personally guaranteed loans based on their home equity, but those loans are not easy to get today, said Maria Coyne, executive vice president at Key Bank in Cleveland.

Start-up entrepreneurs typically bootstrap their ventures with their own resources or loans from friends and family. You can increase your chance of getting a loan once your company matures by forming a relationship with a community bank now, Coyne said.

“Have a serious, conversational relationship with your banker so they can be a sounding board for you,” she said.

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