Posted in Become a Business Owner, Buyers Articles

You have the capital ready, you’ve found a business you like and you are ready to write the check. The seller finds out who you are and then suddenly the deal is dead. What happened?

They Googled you.

When you buy a small business, you are buying something that the former owner spent their blood, sweat and tears for. You are getting the employees they care about, the business reputation they built. Who you are as a person, what you bring to the table in terms of stability and the ability to cement the future of the business they care about matters. It matters more than you may have considered.

While you and a business seller don’t have to be best friends or even agree on most things that occur outside the realm of running the business, what your online reputation says about you absolutely has the potential to sink a deal.

Try this. Look yourself up. What’s out there with your name attached?

Most people don’t have the celebrity-esque issue of having negative news articles all over the internet. That isn’t the problem. What most people have is their social media life. Your Facebook page. Your YouTube channel. Your Twitter account. Your blog. While this realm of your social life was probably intended to be for personal use only, it will absolutely impact the way a business seller thinks about you. It might even make them decide they don’t want you to buy their business.

But my LinkedIn page is very professional. Isn’t that the one that matters?

Not really. While most people aren’t posting long political rants or inappropriate memes on their “professional” online profiles – many people do on “personal” sites. The problem? Those personal thoughts, jokes and comments can be just as easy to find as your carefully curated professional page.

What can you do about it? Google yourself long before a prospective business seller does. See what’s public and make it private. Find what, in retrospect, wouldn’t be considered appropriate for a professional reputation and delete it. Clean up your online presence – immediately.

You would do a similar purge of your online presence before applying for a new job, as it is common knowledge that employers absolutely look people up – and there are many, many stories of poorly thought out posts sinking employment opportunities. The same protocol should be in place when you buy a business because you are essentially buying yourself a job. Do the work ahead of time and curate your entire public online presence before it’s too late.

Have you considered your online reputation s a business buyer? Would you like to know more about what business sellers are looking for in a prospective buyer? Ask us! Leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Posted in Buyers Articles

As a business buyer, it is critically important that you stand out from the crowd. Why?

Up to 90% of prospective buyers who enter the business market never buy anything.

If you consider this statistic from the perspective of a seller or business broker it looks like this – 90% of the buyers who initially contact you will wind up a complete waste of your time.

If you are serious about buying a business, you need to make yourself stand out as a part of that all-important 10% of buyers. How do you do that? Think about who someone in that 10% is.

What does the 10% look like? Well, like everyone. A business buyer ins’t best described by demographic data – a business buyer is simply someone who buys a business.

While this statement might initially sound obvious, preconceived notions about what a business owner looks like can perhaps unconsciously hinder those who could truly be successful entrepreneurs from entering the marketplace. If you’ve always been unhappy with your professional life and have always felt like you could do better if you were the one in charge – you probably could. Running your own business isn’t any harder than going to a job you absolutely hate. The difference is at your own business the buck stops with you. If you have the drive, grit and creativity to push your business into tomorrow you can be just as successful as the person who climbs the corporate ladder for someone else. The difference is when you get to the level of success you were looking to attain – as a business owner that success is yours.

Ok, so I hate my job and I want to be my own boss. How do I get myself into that 10%? It’s incredibly simple. Act like a serious buyer.

Serious buyers are willing to sign non-disclosure agreements without a fuss. They understand that they are receiving privileged and confidential information about someone’s business and they respect that confidentiality. Serious buyers take the information they receive and put together a fair offer that has justifiable terms. They don’t waste everyone’s time by throwing in a ridiculous low-ball. Serious buyers also know that the best way to find out what they need to know to make an informed decision is by asking great questions.

The message here? The world of small business ownership is diverse. Your actions are what make you an entrepreneur, so use those actions to make yourself stand out.

Are you a business buyer who would like to know more about the process of buying a business and standing out from the crowd? Please leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Posted in Become a Business Owner, Buyers Articles

Can you still buy a business in the post-quarantine economy? Absolutely. The keys to success are adaptability and creativity.

Everyone can agree that the past few months have been difficult, unprecedented and just plain strange. If you were thinking about changing career paths before the quarantine hit, or if the time trapped in your house made you rethink your life choices – you might be wondering if now is the time to make the switch to entrepreneurship.

It certainly can be. While some segments of the economy are currently struggling, there are a few key industries that are booming. Think about what people are using/needing and you can come up with a whole host of ideas. Here’s a few:

grocery stores

liquor stores

health care and health care supply businesses

waste disposal

cleaning services

laundry

auto repair

delivery services

The list of newly named “essential businesses” is a long one. If you were thinking about making the switch to business ownership then a business in the “essential” sector is a good buy.

If you had your heart set on a different industry, you might still be able to make it work by adapting your business model and the business you purchase to fit with the times. For instance, if you’ve always wanted to own a restaurant you could perhaps find an existing restaurant to buy and change the model to a take out counter that also offers retail food options like fresh baked bread and other staples – making your business a one-stop shop.

The key to success in 2020 is adaptability and creativity. If you have that and are willing to put in the hard work – business ownership can be a very successful path.

What about all of the news about struggling small businesses? Yes, there are businesses out there who will not make it back. Many were faltering anyway, or didn’t have a business plan or model that could survive the shut down. The silver lining? Those struggling businesses might be a good buy for future entrepreneurs. Some businesses that have decided to remain closed permanently will likely be offered as asset sales, while those who don’t show the best numbers over the last few months might be purchased for a discounted price. Talk to your business broker about the pros and cons of snapping up a currently struggling business to see if the effort it would take to pull the business back from the brink aligns with your goals for business ownership.

Are you considering the jump to business ownership? Do you have more questions about what industries would be a great buy right now? Ask us! Leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Posted in Sellers Articles

In a perfect world, every business seller would list their business and get an all cash, full price offer the next day.

In reality, this is rarely the case. Like, it never happens that way.

On average, it typically takes nine to twelve months to get a business from listed to sold.

As a seller, there are three very basic (but also very simple) things you can do to improve your chances of selling right out of the gate.

Offer Seller Financing 

Banks and other more traditional lending institutions have always been gun-shy about small business loans – and the 2008 recession didn’t help. There are always a lot of buyers who are looking for new business opportunities, but they typically don’t come with a lot of cash on hand. By offering to finance part of your purchase price, you will be able to attract many more buyers than you would otherwise. Worst case scenario if the new owners fail? You get to to keep the sizable down payment the buyers put up and you get the business back. 

Hire A Business Broker

You might be great at what you do, but what you do isn’t helping people buy and sell businesses. This is what business brokers do for a living. They know the business transaction process inside and out, they have access to buyers you could never find and they are experts in confidential business marketing. Going it alone won’t save you money. It will more than likely mean you either won’t be able to sell at all or will end up having to take far less for the business than if you had hired the right help.

List For A Realistic Price 

Your business is only worth what someone is willing to pay for it. When deciding on a listing price many sellers try to set a price that will recoup all of the money they have invested over the years or use the value of new equipment when determining what their 10 year old stuff is worth. We get that you have invested a great deal of your time, money and energy in your business. You can absolutely get a good return on that investment, but you need to be realistic. Your business price should be based on your cash flow, what your equipment and inventory are actually worth and what the market will currently allow. Making a sensible and well-informed decision about listing price is key if you ever want to see a closing table. 

If you think you are ready to sell, go into the process with an open mind. Have realistic expectations, and use the experience of your business broker to help you set realistic goals for your transaction.

Do you have questions about how to price your business? Would you like to know what businesses like yours are currently selling for? Ask us! Leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »

Posted in Become a Business Owner, Buyers Articles

This year has been a strange one. The news changes minute by minute, and the pandemic still overshadows daily life. You’ve had a chance to reflect for the first time in a long time – and now you know entrepreneurship is your path.

Is this a good time to make the jump to business ownership? Absolutely, yes.

It may have seemed like the world ground to a screeching halt, but business has been happening all along. Essential businesses like manufacturing and delivery services have been booming. Small businesses with the creativity to pivot to fit the times have done well.

Many small businesses have had to scale back, but they are ready and able to scale up as soon as the situation allows.

What does this mean for you as a future entrepreneur? Now is a great time to consider buying a business.

Why buy? Starting from scratch, from the ground up – is tough when times are great. Right now a start-up would probably be even more difficult to get off the ground. People aren’t looking for new. They’re looking for a return to what they know and miss. An existing business gives them that.

Buying an existing business also gives you as a buyer some stability as well. You know the business model works because the business is currently running and generating cash flow. You know it’s a business that is well-run with an eye on growth and creativity because it survived the rise and fall of the economy. These proven features of an existing business just don’t exist with a start-up.

I want to be an entrepreneur, but I have my own concept that I think would work. Why would I buy something else? 

Your concept might be great, but you can’t know for sure if it works. If you’ve considered entrepreneurship, you should consider purchasing a business instead. You get handed the keys to something you know can and does work, you get training from the seller so you know what to do and you get an existing brand that people will be excited to come back to. If you really have your heart set on your own idea, perhaps the smarter move in these unprecedented times is to buy an existing business in an industry where you could make your concept a reality. Take some time to figure out how to implement your idea within a business model that is tested and successful, then roll it out carefully to see if it really works.

This year might be a strange one, but it can also be a year of positive change. If you’ve always dreamed of business ownership, now is a great time to get started. Talk to an experienced and qualified business broker about your goals for business ownership and they can help you search for the perfect business for you.

Have you always wanted to own your own business but don’t know where to start? Has 2020 made you rethink your life choices? Would you like to know more about the process to buy a business? Please leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »