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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Bad Advice From Strangers: Why You Really Need A Business Broker

We all do it. We have a question about something, so we pick up our phone and ask Google. Or Reddit. Or Facebook Groups. While some of the information you can glean from online sources can be useful, it is a terrible idea to take online advice as absolute fact if you don’t know the qualifications of the person giving you that advice. The chances of the anonymous person commenting on your post being an expert in their field is probably pretty slim.

 

 

This is particularly important in the sphere of the purchase and sale of small businesses.

 

Why? The small business marketplace is a small world, and as such there really aren’t that many professionals overall who specialize in the sale and purchase of small businesses – and there’s even fewer who actually know what they’re doing.

 

Aside from the fact that the professionals who help people buy or sell businesses, known as business brokers, are relatively few in number there is an entire cohort of part-time or fly-by-night imposters who don’t think they need special expertise to help someone with a business transaction. We’ve encountered real estate agents, attorneys, accountants – even dentists pretending they are business brokers that can help you sell or buy a business as their side gig.

 

What this means is the people (well meaning or not) who are giving you advice on how to use EBITA to value a business or how to properly market your business for sale via a Reddit thread are unlikely to have any idea what they’re talking about.

 

Business transactions are inherently delicate for a number of reasons. There’s a lot of money changing hands. One person is selling their blood, sweat and tears while another is buying themselves the job they’ll be doing for the foreseeable future. Complex contracts are involved. Everything needs to be done under a veil of confidentiality so the business can stay in one piece.

 

A transaction involving so many moving pieces needs a careful hand to guide it. Someone who is experienced, qualified, has the industry connections and know-how, understands the possible pitfalls and has the integrity to keep everything above board. That person is a business broker, and probably not the person commenting in your Facebook Group.

 

What you need in the place of anonymous online advice is a conversation with a practicing, experienced and qualified business broker. Talking with a real person who knows what they’re doing will be exponentially better for you path to business ownership or your business sale than taking terrible advice from people who have no clue what they’re talking about. Calling a business broker can save you from untold amounts of agony by going into the business transaction process with real, factual information.

 

Do yourself and your future a favor. Don’t take advice from anonymous groups and call a business broker instead.

 

Have you fallen into the rabbit hole of online advice about buying or selling a business and can’t tell the good advice from the bad? Do you have questions about how a business broker can help you through the transaction process? 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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Embrace The Digital: Why Small Businesses Need To Cater To Gen Z & Millennials

Most entrepreneurs aren’t young. There’s a large cohort of small business owners (and those looking to join their ranks as business buyers) who grew up before the start of the digital age. You know who you are. You ask the kids in your life to fix things on your phone. You prefer walking into a store and cash over digital purchases and Tap to Pay.

 

Most small business brick-and-mortar stores reflect this. Sure, you’ve got a business Facebook page – but no one can see what you’ve currently got on your shelves, read a proper menu provided by you or order something online and have it promptly shipped. Even for those businesses that do have an actual website they are often rarely updated, have clunky ordering systems and aren’t mobile-friendly.

 

 

If all of this is resonating with you – guess what? You need to embrace the digital age so you can attract the next generation of customers. Gen Z and Millennials are of working age, earning money and your future bread and butter. You need to be actively looking for ways to attract them away from huge retailers that make buying a one-click affair. These generations value small businesses, but you have to make it easy and meet them where they are.

 

How?

 

First and foremost you need a virtual presence. Your business Facebook page won’t cut it. You need a proper website that has all the information one would get if they walked into your physical business. What do you sell? When are you open? Where are you located? What is your business all about? How do they buy from you online? What’s currently in stock?

 

You also need social media channels. Instagram, X (Twitter) and the like are important if you want to reach the newest consumers to the market. You also need to update your virtual presence ALL THE TIME. If your last business Facebook post was in 2018, we’re looking at you.

 

If you aren’t super tech-savvy, you don’t have to be. There are many, many services out there from free website templates you can put together yourself to full-service digital companies that will run everything for you. Digital marketing is where your focus should be, so if you can afford it pay for all the help you can get.

 

If you are considering selling your business, a virtual presence is going to be crucial if you want to attract younger buyers who will care a lot about whether or not you exist online. If you’re buying a business, you need to look at ways you can revamp the marketing strategy of a business that doesn’t have much of a virtual presence from day one.

 

The message here is simple. The next generation of working and money-spending people are online, so that’s where you need to be too.

 

Are you a business owner who hasn’t updated your digital marketing in a while? Are you looking at businesses to buy and want to know more about how to revive a business without a virtual presence when you take over? Do you have questions about how to reach the newest cohort of customers and want to see businesses that are currently doing this well? 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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Walk Before You Run: Why New Owners Should Take It Slow

 

When you buy an existing business it comes with the seller’s personality, whether you like it or not. Their choices are everywhere – from the paint color on the walls to the employees they keep. It can be tempting to want to make your mark and change it into the business you’ve always dreamed of right out of the gate – but that is a colossal mistake.

 

Here’s why.

 

You bought an existing business because it’s existing. The doors are open and it makes money. It runs. Before you go gutting the interior, tossing the furnishings and replacing the staff you need to take a breath and instead start paying attention.

 

Why does this business work?

 

What parts of the decor, the current menu, the personalities of the staff, the operating procedures, the equipment, etc. add to the functionality and value of the business? 

 

What is it about this business that keeps customers coming back for more?

 

If you rush in and change everything, you are missing the opportunity to learn what makes the place successful. Listening and learning should absolutely be your number one priority in the early days of owning your new business. Take every chance you have to learn from the seller, even if you aren’t a fan. While you negotiate ask lots of questions and pay attention to the answers. Be willing to take advice. Most business purchase contracts come with a two week training period – use that time to absorb everything you can.

 

When the reins are finally yours, slow down. Run the business as-is for as long as it takes for you to truly understand what works and what doesn’t. Talk to the staff – ask them to give you their thoughts about what is important and what they would change if they could. Talk to the customers and ask them the same thing. What would they like to see changed and what would they like to see stay the same?

 

Take all of this data that you collect and then make small, incremental changes that will benefit the business. Don’t make changes just because it’s something you would prefer.

 

Are you considering buying a business but hadn’t thought about when and why you should make changes? Do you have questions about the training period in a purchase contract? Ask us! Leave any questions or comments and we would be happy to assist.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Where You Can Find The Financing To Buy A Business (And Why It Won’t Come From Your Bank)

The entrepreneurial story we tell ourselves is full of flaws. You can’t come up with an idea in your garage or spy a cute coffee shop for sale downtown and simply waltz into your bank for a small business loan to cover the entire cost. It’s just not how it works. 

 

Why?

 

Banks are gun shy about risks in general, but even more so since the debacle of 2008. Small business ownership is risky, particularly if you are trying to start a business from scratch. According to the U.S. Bureau of Labor Statistics 65% of businesses fail in the first 10 years, 45% fail in the first 5. 

 

What that means for future borrowers is your local bank isn’t likely to grant you a small business loan for your start-up. They are also unlikely to fund the purchase of an existing business. 

 

 

If the bank is out, where can a business buyer get financing?

 

The most common source of funds is the buyer themselves. Using property for collateral, sourcing capital from friends or relatives or using savings can typically generate enough to buy a business. If you’re going to own your own business, you’re going to have to get comfortable with putting your own skin in the game. A caveat here, if you are borrowing form friends and/or relatives a handshake deal will not suffice. You really need to consult a business transaction attorney and have some sort of contract before you take money from people you know. It will save everyone involved from the issues that can quickly arise when money needs to be paid back.

 

Another common avenue is a loan from the Small Business Administration (SBA). This path obviously will have it’s share of red tape, and not all businesses currently for sale will qualify for this type of loan – but it can be a great way to secure a business without having to fund the entire purchase yourself. Talk to your business broker about how you might qualify for a SBA loan and what businesses currently for sale would work for this scenario.

 

In many situations a buyer can also get financing from the seller themselves. This is called seller financing and many small business owners use this as a way to attract buyer to their business. A seller willing to keep skin in the game says a lot about how they think the business will do in the future (if the business fails they don’t get all of their money) and it opens the pool of potential buyers to those who might not have all the capital they need up front. An important note here – no seller is going to finance the majority of the purchase price for a buyer. Buyers need to come to the table with a substantial down payment. Ask your broker if there are any seller financed businesses available in the industries you’re considering.

 

There are also creative ways to get a deal done. Earn-outs, angel investors and the like are possible – but unlikely. Your best bet as a buyer is to see how much capital you can raise on your own, research your options with the SBA and talk to your business broker about business owners who might offer you seller financing.

 

Have you always wanted to buy a business buy aren’t sure how to raise the capital? Would you like to know what types of businesses are currently offering seller financing? Ask us! 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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