Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Maybe it was the lockdowns of the pandemic. Maybe it’s just that you’re burned out. Whatever the reason, you’ve been daydreaming about moving somewhere else and buying a business. Guess what? There’s no better time than now to make the leap.

Want some tips on how to start? Here’s 3:

Do lots of research:

This one might sound obvious, but most people would be shocked at how little research most buyers do before taking a huge leap like this. Take a deep dive into the locations that interest you. If it’s somewhere you’ve only ever visited on vacation, research what it’s like to live there year-round. Is it a seasonal economy that you’ll need to account for when choosing the type of business to buy? Can you afford to buy or rent a home close enough to your business to make your commute make sense? If you have kids – what are the schools like and where do you need to live in order to get your kids into a school where they’ll be successful? What are the property taxes like? Are crazy weather events like hurricanes something you need to think about? The point here is you need to have a good handle on where you both want to and realistically can be long before you start a serious search for businesses to buy.

Find the right help:

If you’re serious about buying a business in a new area, a local business broker is going to be an immense help. They know the area, the local small business economy, the local licensing/permitting requirements, the major players in terms of commercial property managers – the list goes on and on. Having someone with local experience as your guide will make both finding the right business and navigating the buying process much easier than going it alone or using someone who doesn’t know the area.

Have the site visits planned way before you leave for your trip:

Seeing a business you are considering is an important step, but what many buyers don’t understand is this step never comes first. Businesses are bought and sold under the protection of confidentiality (see why here), so you can’t just fly into town and waltz into whatever business you please. The steps that are required before you set foot in a physical location go like this:

You talk to a local business broker about your goals for business ownership, the industries you’re interested in and the amount of capital you have to invest. They find you business listings that would match your goals and means. If any of those listings look promising you can request more information by signing a non-disclosure agreement for each business you’re still considering. After looking over the information a conference call with the sellers is next, so you can ask questions about the business and see if it’s still a good fit. If after your calls you’d like to see the physical location this can be arranged. It usually requires seeing the business before or after hours when no staff or customers are around and will need to be coordinated between the schedules of the seller, the buyer and the brokers involved. It should be obvious that this process can’t be completed once you’ve landed on your scouting trip and have called a local broker for the very first time. You need to plan your site visits when you are doing your initial trip planning – like before you’ve even bought your plane tickets. It is a colossal waste of your own time to fly in and see businesses you haven’t already vetted, so plan your trip with that in mind. 

If you’re considering a big move – now is the time. Contact a local business broker and get the process moving!

Have you always wanted to move somewhere else and own your own business? Do you have more questions about the steps of the business buying process? 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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Posted in Sellers Articles

Potential. It’s a powerful word. It gets thrown around in the business arena – but what does it really mean when you’re trying to sell your business?

Any business can have potential. Potential for growth. Like a small restaurant only open for lunch with a devoted local following who would love dinner hours as well. Potential for a new customer base. Like a pressure washing business that has never approached any large neighborhood communities with the hope of securing big accounts.

Here’s what potential isn’t. Potential isn’t worth a whole lot. You may love your business, and you may see the potential your business could have if you implemented some changes – but if you haven’t made those changes yet you can’t ask a buyer to pay a premium for something that MIGHT be. A buyer is only going to pay for what ALREADY IS.

Maybe you’ve been dragging your feet where marketing is concerned and haven’t been pushing for any new customers. You know you could land some new accounts, you just haven’t made the time. The only way to reap the benefits of that potential growth is to implement those changes yourself. An increase in customer base and rapidly growing cash flow are absolutely going to have value to a buyer. The potential for that future cash flow if you leave the work to the next owner? No value at all. No one is going to pay you a premium so they can do more work.

The message here is you can sell your business today, as is – or you can take the time to build the future of your business before you sell. Increasing numbers, increasing accounts, ramped-up marketing and new customers will make your business far more valuable in the eyes of a buyer than just the promise of potential down the road. Turn potential into cash by implementing those changes today.

Are you considering selling and are looking for some ideas on how to grow your business to get a better return? Does your business have potential but you don’t know how to turn that into action? Please feel free to leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Posted in Become a Business Owner, Buyers Articles

We all have the dreams. Dreams of quitting the job we hate, of striking out on our own and finally becoming our own boss.

What stops us? Taking a huge leap into the unknown can be absolutely terrifying.

No one wants to fail, and to prevent that failure we try to get our ducks in a row before we make big changes. Like waiting for a housing market peak before listing your house for sale. Like detailing your car before you sell it. We all strive for things to be perfect when we’re about to take a big step.

Here’s the thing about that push for perfection. It can hold you back.

Entrepreneurs can’t be risk averse. Buying or starting a business, operating that business, growing that business – all of these come with their fair share of risk. Guess what? If you need to be comfortable with risk you can’t also demand perfection.

Any business you look at will have a few skeletons. The news is always going to look bleak. The timing could always be better.

You can always find a reason not to do something. That’s the path of least resistance. If you don’t let go of your hope for perfection you aren’t going to be able to achieve the dreams, take the leap or change your life.

Should you disregard what’s going on in your life, disregard global catastrophes or settle for something that isn’t ideal? Of course not. The point we are trying to make is you can’t chase your dreams of business ownership if you always wait for everything to be just right.

If you really want to own your own business but aren’t sure if you’re ready or aren’t sure that the timing is right – have a conversation with an experienced and qualified business broker. They can help you decide what types of businesses would fit with your dreams and goals for business ownership and also give you guidance on the current state of the market.

Don’t wait for the perfect time to buy a business because that time will never come. Instead, have a conversation about your goals for business ownership and get started on the path to the life you’ve always wanted – today.

Have you always wanted to have your own business but aren’t sure if now is a good time? Would you like to know more about the business buying 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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Posted in Buyers Articles

Buying a business? Congratulations on your start in the world of entrepreneurship! It’s hard work, but the benefits of owning your own business can absolutely outweigh the challenges – as long as you’ve set yourself up for success.

How can you get yourself off to the best start as a business owner?

Choose Something You Know

One of the most common mistakes new entrepreneurs make is they buy a business they know absolutely nothing about. For instance, if you’ve spent your whole career as a pharmaceutical salesman – you definitely shouldn’t buy a bar. Why not? Although it might seem like slinging a few beers isn’t that hard – the restaurant industry (or any industry where you have zero experience) can be impossibly tough. Do you know what your food and beverage costs should be to keep you in the black? Do you know enough about what it takes to be a good bartender so you can vet and hire the right staff or fill in when needed? Would you be able to tell if your current vendors are giving you the right stock and the best price? Probably not, and these are just a few points in the restaurant industry that can mean the difference between success and bankruptcy. Choose a business in an industry where you already know the ropes. Adding a brand-new industry to the already precipitously steep learning curve of business ownership is almost always a mistake.

Don’t Change Everything Right Away

Many entrepreneurs who buy an existing business walk into their new business on day one and decide they want to focus on something physical – like changing the color of the upholstery, buying new furniture or even a full renovation so they can make the space feel like their own. This a huge mistake and a big waste of resources. Why? You bought an existing business. That business has an already existing set of customers. Your mission in the first few months is twofold. One, don’t drive away your existing customers. Two, get as many new customers as you can. One surefire way to keep from accomplishing those two goals is to focus on physical things like aesthetics. Maybe the reason your new café is so popular is the regular clientele love the existing quaint atmosphere – redecorating to your sleek modern style might run them off. Instead, focus on building that customer base and take some time to learn why your current customers are there – before you make any changes.

Get yourself on the right path by buying a business you already know and don’t make any immediate changes. 

Are you thinking about buying a business in an industry where you have no experience and want to know what other industries would fit with your specific skill set? Would you like to know more about how a new business owner can get new customers in the door? Ask us! Leave questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Posted in Buyers Articles, Sellers Articles

Buying or selling a business? Are you ready to negotiate? 

No one has ever bought or sold a business without a great deal of back and forth between the parties involved – and many, many deals have died over the negotiating table. Nothing is more frustrating for buyers and sellers than the death of a perfectly good deal. If you are thinking about buying or selling a business, how do you keep your deal alive?

Use an experienced and qualified business broker. A good business broker is essential for success.

Of course you would say that – you’re business brokers. Yes, you have us there – but we would advise you to use the services of a business broker whether that’s what we did for a living or not.

Why? The business selling process and the businesses themselves are both complicated, messy animals.  No where does that inherent messiness come out more boldly than during negotiations.

What needs to be negotiated? Essentially everything. The purchase price, the length of the due diligence phase, seller financing agreements, a non-compete clause, a new lease, the value of the inventory, the length of the training period, the value of the equipment and furnishings, the continued employment of certain staff, the closing date – the list goes on and on.

With such a monumental list of things that need to be agreed upon by two parties with vastly different goals it’s no wonder that many deals fall apart. A seller is dealing with handing over a business with which they have strong emotional ties as it has been a very big part of their life. Sellers are also nervous about selling themselves out of a job, essentially becoming unemployed the moment the deal is signed. They want to get as much as they can out of the sale of their business. Buyers, on the other hand, are dealing with writing a huge check to a complete stranger for a risky new entrepreneurial adventure. They want to spend as little as possible so they can keep working capital available. 

How do you meet in the middle of such vastly different goals? An intermediary like a business broker.

A broker’s responsibility is to keep the deal together and help it get to the closing table. Your broker acts not only as an experienced advisor who ensures everything that needs to be done gets done, they also act as an all-important buffer between the two parties. Business sellers and business buyers are entrepreneurs at heart – and to be a successful entrepreneur you need a strong and driven personality. If you’ve ever tried to argue with someone who has this personality type – you should understand why a buffer is needed. Too many perfectly good deals have fallen apart because someone asked the wrong question, made the wrong request – and the other side was offended to the point of no return.

Don’t try to go-it alone. If you are serious about selling or buying a business, you need a business broker to help you negotiate your way to closing table success.

Are you thinking about selling your business and want to know more about how a business broker can help you? Do you want to buy a business and want to know more about the negotiation process? Ask us! Please feel free to leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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