Practical Experience: Why Buying A Business In An Industry You Know Matters

In the world of entrepreneurship, the decision to buy a business is a significant step that demands careful consideration. While the allure of diving into a new industry might seem like a good idea, there’s a compelling argument for purchasing a business within an industry where you already have practical experience. This approach brings with it a host of advantages that can significantly enhance your chances of success.

 

Let’s delve into why buying a business in an industry you know matters.

 

The first big benefit of buying a business in an industry you’ve worked in is the depth of knowledge you bring to the table. Practical experience provides insights that Google searches, books and market analyses can’t replicate. You understand the nuances, challenges and opportunities specific to your field – giving you a distinct advantage. This familiarity breeds confidence in your decision-making process, reducing the likelihood of costly mistakes.

 

Secondly, business is built on relationships – and your existing network within the industry can be a game-changer. When you buy a business in your field, you’re not starting from scratch; you’re tapping into an established ecosystem of suppliers, customers, and collaborators. Leveraging these connections can fast-track your growth.

 

Third, stepping into an entirely new industry comes with a steep learning curve, but buying a business in an industry you know can significantly flatten that curve. You already have the basic knowledge – no training or education required. You can focus your efforts on refining existing processes, optimizing operations and implementing improvements from day one because you don’t need to learn EVERYTHING

 

Buying a business in an industry where you have practical experience isn’t just a good business decision – it’s a strategic advantage that can set you up for long-term success. Your insider knowledge, network and ability to navigate the intricacies of your field position you ahead of the curve. This enables you to make informed decisions and capitalize on opportunities effectively.

 

While venturing into uncharted territory may hold its allure, the importance of buying within an industry you know can’t be overstated. Before you embark on your entrepreneurial journey, consider the power of practical experience.

 

Have you been considering business ownership but didn’t think about focusing on businesses where you have practical experience? Would you like to know what businesses are currently on the market in your areas of expertise? Ask us! Please leave any questions or comments and we would be happy to help.

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

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Patience: How To Successfully Navigate Selling Your Business

Selling any business is a significant milestone. It often represents years of hard work, dedication and passion. Whether you’re looking to retire, pursue new opportunities or simply move on to the next chapter of your life – the decision to sell can be both exciting and daunting. Amidst the flurry of negotiations, due diligence and potential buyers one virtue is going to be the difference-maker: patience.

 

 

Patience is not merely the ability to wait but the capacity to maintain a positive attitude and sense of calm amid uncertainty. When it comes to selling your business, patience is essential throughout every stage of the process. From preparing your business for sale to negotiating terms with potential buyers, embracing patience allows you to navigate the journey with grace and resilience.

 

This is a good place to bring up the most crucial aspect of patience: setting realistic expectations. While it’s natural to hope for a quick and lucrative sale, the reality is that selling a business is often a complex and time-consuming endeavor. Think 9-12 months, on AVERAGE. The timeline for selling a business can vary widely depending on various factors including market conditions, industry trends and the size and complexity of your business. By tempering your expectations (and embracing the knowledge that this might take a while) you can approach selling with a realistic mindset and avoid unnecessary frustration or disappointment.

 

Patience also plays a crucial role in building relationships with potential buyers. Selling your business is not merely a transaction but a negotiation process that involves trust, communication and mutual understanding. Rushing the process or pressuring buyers can undermine trust and jeopardize the deal. Instead, take the time to cultivate relationships with potential buyers, understand their needs and motivations and address any concerns they may have. By demonstrating patience and attentiveness, you can foster a positive back-and-forth with buyers and increase the likelihood of reaching a closing table.

 

The journey of selling your business is rarely a smooth and linear path. Like any significant undertaking, it’s bound to have its ups and downs, setbacks and unexpected challenges. And it’s going to take TIME. During this process patience becomes your greatest ally – allowing you to maintain perspective, stay focused on your goals and persevere in the face of adversity.

 

Are you considering selling and want to know what a typical timeline for your type of business looks like? Would you like to know what businesses like yours have recently sold for? Ask us! Please leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

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Empowering Yourself: Why Business Buyers Need To Do Their Own Independent Research

In the complex list of necessities when buying a business, one aspect often overlooked is the buyer’s role in conducting thorough research. While your business broker can offer valuable guidance and expertise, you can’t relying solely on them to make every decision. They can’t. At the end of the day, all decisions are yours – so business buyers need to take a proactive role in their research and decision-making process, empowering themselves to make informed choices. 

 

Here are some thoughts to consider:

 

 

Be Realistic About What Your Broker Can And Can’t Do

 

Before delving into the buyer’s responsibilities, let’s first acknowledge the vital role that business brokers play in the acquisition process. A reputable broker brings a wealth of knowledge, experience and industry insights to the table, guiding buyers through every step of the journey. From finding potential businesses to negotiating terms and navigating due diligence, a skilled broker acts as a trusted advisor – helping buyers make informed decisions and achieve their goals. However, it’s essential to recognize that while brokers can provide valuable support, they cannot—and should not—make every decision on behalf of the buyer.

 

You Must Must Must Do Independent Research

 

Business buyers must recognize the importance of conducting independent research to supplement the guidance provided by their broker. While brokers can offer insights based on their expertise, it’s ultimately the buyer’s responsibility to thoroughly evaluate potential businesses/locations/terms and assess their suitability. Independent research allows buyers to gain a deeper understanding of the market landscape, industry trends and competitive dynamics. By conducting market analysis, financial due diligence and risk assessments of their own, buyers can mitigate potential pitfalls and make well-informed decisions.

 

Your Broker Is There To Help, But They Aren’t You

 

Relying solely on a broker to make decisions simply isn’t going to work. This is your money that will be spent, your day-to-day life as a business owner that needs to be lived and your choice as to what that ultimately looks like. You also have to live and work in this community. Does the area have the amenities or lifestyle you’re looking for? Are there places to live nearby the business where you could potentially buy or rent a home? Where are the schools your kids might need? Are there local concerns, like crime or frequent natural disasters that you will need to account for? The point here is only you can make choices on the litany of variables you need to consider before you buy a business. 

 

In the world of business transactions, the importance of independent research cannot be overstated. While business brokers play a valuable role in providing guidance and expertise, buyers must take an active role in conducting their own due diligence – on everything (from the business to the school districts and beyond) to ensure the life as a business owner you’re after is the one you end up with. 

 

Are you looking at businesses to buy but hadn’t thought about researching the community? Would you like to know more about how a business broker can help you find a great business? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

 

 

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Don’t Hop On A Plane Cold – Why Smart Business Buyers Plan Ahead

 

You’ve made the decision – you’re going to bite the bullet, buy a business and move to Florida. You buy plane tickets and head down, ready to drive around and scope out the local small business scene. When you get to town, you try calling brokers to have someone drive you around to see what’s for sale – but you aren’t having any luck. No one is answering or returning your calls, and those that do tell you there’s no way you can see any businesses today.

 

What gives? You’ve got money to spend – why won’t anyone help you?

 

Buying a business is a very complicated process that contains a multitude of moving parts, and as such the business buying process is nothing like buying anything else. When you buy a house or a car the process involves driving around and taking a look, but houses and cars are physical things. A business is different because a business has customers, has employees, has contracts, has leases, requires licenses and permits, has vendors – the list goes on. When you buy a business you aren’t buying a thing, you are buying cash flow. Since you aren’t buying a physical thing, the process is more complicated.

 

For starters, business sales are confidential. Confidentiality is important because there is a very powerful misconception that a business for sale is a business on the brink of failure. Think about it. The last time you saw a “For Sale” sign in the window of a business your immediate thought was that the business was in trouble, right? Why would anyone sell a perfectly good business?

 

Great, profitable businesses are sold every day. Business owners sell for a myriad of reasons. Retirement, a desire to change industries, personal reasons, or because a financial milestone has been reached. Sure, there are businesses for sale because the owner is in trouble and the business is faltering – but those businesses are fairly rare and can be a great opportunity for growth.

 

The fact that a business is for sale says nothing about the financial health of that business, but the misconception that exists can cause catastrophic damage to an existing business if the for-sale status is disclosed to the wrong people – like if the staff finds out the business is for sale and quits en masse.

 

The need for confidentiality means you will have to sign a non-disclosure form for each and every business you want to see, and you will most likely need to see the physical location before or after hours when the staff isn’t there. In addition to the required paperwork and the need to avoid a staff, physical visits to a business require aligning the schedules of the buyer, the seller, the buyer’s broker and the seller’s broker. This type of schedule wrangling takes time, so showing up in Florida and demanding to see businesses isn’t going to work.

 

What should you do instead? PLAN AHEAD. Before you get on a plane, call and have a conversation with an experienced and qualified business broker. They can help you find businesses that fit with your goals and your financial means, then you can narrow your field to just a few choices. Your broker can set up conference calls, meetings and site visits long before you land so you can see the businesses you want in a way that works with everyone’s schedule.

 

Don’t hop on a plane cold – plan ahead and you will be set up for business buying success.

 

Are you thinking about buying a business and want to know more about why confidentiality is important? Would you like to know what businesses are currently available that might work for you? Ask us! Please leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

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Why You Should Choose Loyalty And Honesty With Your Business Broker

In the world of business transactions, finding the right broker can make all the difference between a smooth, successful deal and a potentially disastrous outcome. Yet, the decision to stick with a particular broker often raises questions. Is loyalty to a business broker really necessary? If someone comes along who says they can do it better, should I listen? And why should I avoid someone who tells me what I want to hear? Let’s delve into these questions to understand the importance of loyalty and honesty in the realm of business transactions.

 

 

When you are choosing whether or not to work with a particular business broker, you should be looking to form a strong partnership. Working with just one business broker over an extended period of time means you develop a relationship built on trust and understanding. Loyalty fosters a deeper connection between you and your broker, allowing for open communication and a better grasp of your business goals. By staying loyal to a business broker, you benefit from their familiarity with your personal preferences. This knowledge enables them to tailor their services more effectively to meet your specific needs, ultimately leading to more successful outcomes.

 

On the flip side, choosing a broker solely because they tell you what you want to hear can be a recipe for disaster. While it may feel reassuring to hear constant affirmation and promises of easy wins, it’s often a sign that the broker is more focused on pleasing you in the short term rather than prioritizing your long-term success.

 

A reputable business broker should provide honest and realistic assessments, even if it means delivering news that you may not want to hear. This level of transparency is crucial for making informed decisions and avoiding risks associated with the transaction. A broker who challenges your assumptions, presents alternative viewpoints and provides candid feedback demonstrates a commitment to your best interests.

 

When you prioritize honesty and integrity in your relationship with a business broker (instead of just needing to be told what you want to hear) you set the stage for a more transparent and productive collaboration. An honest broker will provide you with a clear picture of the market landscape, potential challenges and realistic expectations regarding the transaction process. 

 

Are you looking to buy a business and have questions about what a business broker can do for you? Have you had an experience with a broker who only told you what you wanted to hear and have a story to share? Please leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202




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