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

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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Posted in Become a Business Owner, Buyers Articles

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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Posted in Business Broker Why & How, Buyers Articles

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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Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

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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Posted in Buyers Articles, Sellers Articles

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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