Become a Business Owner Archives - Page 19 of 20

www.InfinityBusinessBrokers.com

Published April 2, 2018

What’s the best path to entrepreneurship?

Most think of the startup in some suburban garage – but is that really the smart way to go? The short answer? Probably not. Buying an existing business, however, is typically the better route to business ownership. Here’s why:

1. Starting a business is a risky and expensive venture.

Startup businesses are tricky. You are testing new waters – with your concept, with your location, with your operating procedures, with a brand-new staff. In the unlikely event that all goes as planned and everything works in your favor, you will still need an enormous amount of capital to lease a new location, renovate that location to suit your needs, equip your location, buy inventory, pay for permitting and licensing – the list goes on. Then you will also need to have enough capital to sustain your business, your staff and yourself for the time frame it takes to start turning a profit, which can be several months or more.

If you buy an existing business, many of the risks and financial challenges of a startup have been removed. With an existing business, you are buying a proven concept, location, operating procedures, a trained staff – and in most cases a training period with the existing owner to get you on your feet. The amount of capital you need might seem substantial, but remember that it would be far more expensive in the long run to find, furnish, equip, stock and run a business with no history of success than to just buy one with that laundry list already complete.

2. There’s no such thing as a “startup business broker”.

One of the best parts of buying an existing business, especially if this is your first foray into business ownership, is you can have expert help along the way. By having an experienced and qualified business broker by your side you have expert advice to guide you through your business search and help you find a business that fits with both your goals and available capital.

Don’t see any businesses on the market that appeal to your entrepreneurial dream? Sometimes buyers have a specific type of business in mind, but the goals they have for business ownership would require that they end up in an entirely different industry. A conversation with a good broker will help you decide if the business you think you want to have is really the business you should have to get the kind of life you are looking for. If you are starting a business, you can seek advice from anywhere and everywhere, but there won’t be anyone to guide you in the same way a broker can if you buy.

3. A business you buy comes with everything you need.

Like we discussed before, starting a business means having to hire and train a brand-new staff, finding then leasing a new location, buying all the equipment and furniture, finding and purchasing inventory, and setting up licenses and permits – if you can even get them. An existing business comes with everything, including in most cases the former owner for a while (for a training period to help you learn the ropes). This will take an enormous amount of pressure off of you as a new business owner, allowing you to focus on learning your new business without all of the additional headaches that a brand new business would require.

If your goals for the future include business ownership, seriously consider buying an existing business instead of starting from scratch.

Have more questions about the differences between buying an existing business and starting one from scratch? Are you curious about what types of businesses could be right for you? Ask us! Please feel free to leave us a comment or question here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Buying A Florida Business – We’ve Got More Than Beach Bars

www.InfinityBusinessBrokers.com

Published March 12, 2018

Florida is the sunshine state. We’re the home of palm trees, plastic pink flamingos, alligators and white sand beaches. We’re the place where anyone who spent their life in the cold north comes to retire.

We’re also the place where many inspired entrepreneurs dream of coming to buy a beach bar and spend their days absentmindedly running said bar from the comfort of a nearby hammock.

We totally get that dream. It sounds amazing, and it is amazing because it’s completely impossible. For starters, absentmindedly running a business is really just running that business into the ground.

You can, however, still have a piece of that Florida dream without having to buy a tiki bar that plays only Jimmy Buffett music.

You can have the nice weather and a plastic flamingo in your yard by buying a business that will actually help you achieve your goals. Goals like having more free time. Like making more money. Like following a passion. Like getting to spend more time with your family. You can achieve these goals because here in Florida we have far more than white sand and alligators. We have real people who lead real lives.

Do you know what real people need? Real businesses that don’t all sell margaritas. They need grocery stores, daycare centers, car washes, plumbers and roofers. They need pizza places and auto mechanics. They need all the goods and services that any community has to have in order to function – and you can be a business owner who meets those needs.

And you don’t have to start from scratch. At any given time there are a multitude of businesses for sale – businesses that have great numbers and can be your ticket to the life you’ve been dreaming of. Want to see a few? Try our business search here.

What type of Florida business would be right for you? It depends on a few key factors – factors you should discuss with and experienced and qualified broker so they can help you find the right business for you. For instance, what are your goals for business ownership? Do you want to make the most money possible in the shortest amount of time? Are you looking for a specific industry that is your passion? Do you want to have a more flexible schedule than your current job allows so you can spend more time with your kids?

You ultimate goal for business ownership coupled with the amount of working capital you have available and your prior work experience will help you determine what types of businesses might be right for you. You and your business broker can work together to look for businesses that meet your goals – and you might be surprised by what you find.

For instance, if your goal is to spend more time with your kids and you think you want a tiki bar – think again. The restaurant industry has notoriously long hours, especially in the evenings and at night. You might find that a small service company (like a pest control or home-watch business) where you set your own schedule will be far better for your work/life balance.

Talk to a business broker today about your goals and take a peek at what’s currently available. You can have the Florida dream – and the pink flamingo – without buying a bar on the beach.

Have you always wanted to buy a business in Florida and want to know what types of businesses would meet your goals? Would you like to know what industries are doing well in the areas where you’d like to live? Ask us! Leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

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3 Misconceptions About Business Ownership & Why 2018 Is Your Year To Make The Entrepreneurial Leap

www.InfinityBusinessBrokers.com

Published December 28, 2017

2018 is your year.

It’s New Year’s resolution time again, and although you might be thinking that 2018 is the year when you will finally lose that weight, get organized or spend less time staring at your phone – we all know that our resolutions have a way of dissolving before February rolls around.

If you really want to change your life, here’s a different approach. Buy your own business.

Business ownership can be tough, but so is dragging yourself out of bed everyday to go to a job you hate. Entrepreneurship, despite all of the challenges, is very rewarding. All of your effort benefits you directly. You get to do something you actually want to do for a living. You can, more or less, make your own schedule. Your destiny is in your own hands.

If it’s so great, why doesn’t everyone own their own business? Many people are deterred from the entrepreneurial path by some pretty powerful and pretty false misconceptions.

Misconception #1: You need to be a multi-millionaire to own a business.

Small businesses come in all shapes and sizes, so while there are businesses that only a multi-millionaire could afford, there are also lots of small businesses on the other end of the spectrum that won’t cost you more than you have while having real potential for growth with the right leadership.

Misconception #2: Business owners never get a day off.

Ok, so this one isn’t completely untrue, but while as a business owner you are always technically on the clock – it’s your clock. Need to go take care of a relative for three weeks? Need a day off to chaperone your kid’s field trip? You can. Smart small business owners put the right people in place so their presence isn’t necessary 100% of the time. They also utilize the digital world so they can work remotely whenever necessary.

Misconception #3: You need to be a business ownership expert.

We hear this one a lot. “I don’t know anything about owning a business.” Sure you do. How many times have you muttered under your breath because your boss was making a terrible decision? How often do you look at the way a company is run and say to yourself “if I was in charge…”. The only difference between someone who works in a particular industry and a person who owns a business in that industry is one took the entrepreneurial leap. You can too.

There was a time when small businesses were the only kind of businesses. Every major corporation started small. The entrepreneurial plunge shouldn’t be feared – it should be embraced. Make 2018 the year you changed your life. Buy a business!

Have you always wanted to buy a business but you don’t know where to start? Would you like to know how the business buying process works? Ask us! Please leave any comments or questions and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Don’t Be That Guy – Why Confidentiality Is Important To Business Buyers Too

Published September 25, 2017

New buyers hate confidentiality.

We tell new buyers why confidentiality is important, but they are still frustrated by having to sign non-disclosure forms, having to wait to find out the physical location of a business and by having to visit businesses by appointment and then only after hours. We get it, it is tedious, but it is also extremely important.

Invariably we come across a buyer who deals with their frustration by breaking all the rules – by waltzing into a business during business hours and demanding the employees produce the owner so they can talk about the listing price, by telling their neighbors and friends what businesses they have toured – and confidentiality is suddenly out the window.

When you first enter the business marketplace as a buyer, the process by which you gain access to information about the businesses that are on the market might seem ridiculous at first, but those protections benefit you too.

When a business goes up for sale, confidentiality needs to stay in place.

What do we mean by that? We mean that the only people who should know that the business is for sale are the seller, the business brokers and attorneys involved and vetted buyers who have signed the appropriate non-disclosure documents. No one else should have access to that information.

“Why? I’m trying to make a major decision here, I need access to the business to see if I want to buy it or not.”

Yes, you do need access to information, and you absolutely will gain that access – but it needs to be done carefully to maintain confidentiality.

What can happen if confidentiality is breached? Clients go to a competitor, employees quit and take their regular customers with them, vendors cancel contracts and the community assumes that the business is for sale because they are moments away from having to close the doors. If you are trying to buy a business, you don’t want to take the reins in the middle of this confidentiality crisis. You want the business to be in good shape and in good standing with the community the day you take over as owner.

An important note here – the impacts of a confidentiality breach aren’t for the business and the seller alone. If you caused the breach, you can be sure that the legal repercussions included in your non-disclosure agreements will absolutely be enforced.

How can a buyer ensure the health of the business they are trying to buy? Be patient, and keep the information you learn about businesses currently for sale to yourself. Don’t be “that guy” who causes severe upheaval in someone else’s business. If everyone plays by the rules, businesses stay protected and buyers end up with businesses in great shape.

Are you a buyer who is frustrated by confidentiality? Do you have questions about why confidentiality is so important? Please feel free to leave a comment or question here, and we would be happy to assist you with your business buying questions.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Business Buyers Beware: How Your Actions Can Keep You From The Closing Table

http://www.InfinityBusinessBrokers.com

Published June 21, 2017

Small business sales fall apart for a multitude of reasons.

Any time you are contending with someone’s life’s work and large amounts of money changing hands, there are bound to be challenges. The problems arise when those challenges are more than the deal can take.

As a business buyer, you may find that some reasons for deals coming undone have little to nothing to do with you, like if a seller suddenly decides they’d rather not sell, but there are some issues that have everything to do with your end.

Sure, buying a business is a huge investment, both of time and money, but a ridiculously over-cautious, inflexible and inexperienced buyer can sink a business transaction as fast as an unwilling seller. The key is balance and understanding.

Before you get anywhere near a closing table, you may need to do a fair bit of introspective thinking. Do you really want to buy a business? Sure, owning your own small business is the American dream, but it is not always the easiest way to earn a living. Entrepreneurs can work long and intense hours, so you need to be sure that you are ready for that part of being your own boss. If you have done the requisite self-reflection, now it is time to go looking for the right business for you.

This may seem like a silly thing to point out, but you should choose a business that is going to suit you in terms of expertise and ability as well as one you actually like. Buyers might think they want to move to a completely different industry from where their experience lies, only to find that they are completely overwhelmed by the prospect of essentially starting from scratch in a business they don’t fully understand. An example would be an ill-prepared entrance into the restaurant industry where a former accountant suddenly decides to buy a bar without ever having worked in one. Avoiding this pitfall is easy, pick something that matches your expertise. This is a great time to employ the services of a business broker to help you figure out what businesses would be right for you in terms of how much you are looking to spend, what kind of hours you are willing to work and what would suit your knowledge base.

Once you have found the right business, make a serious offer. Buyers who lowball sellers just to see how steep of a discount they can get will only end up insulting the seller past the point of no return.

Do your due diligence once you have a business that you are serious about buying, but realize there will be limits as far as what will be available to you. For instance, sometimes buyers ask for the same information over and over again, or buyers demand to meet all of the key employees before it is appropriate to do so. All this does is upset the seller. Lean on the expertise of your business broker to ensure you are getting what you need without unnecessarily overstepping your bounds. .

The moral of the story is you will need to be cautious, and you should be when you are making such a big purchase – but also realize that any business is going to come with a fair bit of risk. Don’t let cold feet get in the way of a great business opportunity.

Are you thinking about buying a business but have questions about the process or what business might be right for you? Leave us a comment or question here and we will be happy to assist you.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

2 Comments »

LOVE Going to Work: 3 Keys to Business Ownership Happiness

Published April 24, 2017

It is unfortunate that so few of us jump out of bed every morning looking forward to our work day ahead.

If you are considering becoming an entrepreneur, this happy morning might be in your future. They key to achieving happiness as a business owner is to know what you want from the start. By taking the time to do some real soul searching before you begin the business search process, you can ensure you will end up with a business you can love. What follows are some ideas to consider:

If you already have a dream business in mind, are there aspects of running that business that you might not enjoy? Are these tasks that can be delegated to an employee or perhaps a business partner that has that interest? If your dream is to be a florist, and accounting is possibly your least favorite thing to do, then delegating this responsibility will let you focus on the portions of your business you are passionate about.

If you haven’t decided on a specific industry, what do you really love to do? A caveat here; if you have absolutely zero experience in an industry, it is probably not a good idea to enter that industry as a brand new business owner. If you have always wanted to own your own bar, but have never worked in any part of the restaurant industry, buying a bar will be a mistake.

What are your goals for business ownership? If you are looking to be able to spend more time with your family, buying a small pizza restaurant where you would be the only chef (and therefore have to work 7 days a week) this particular business is not going to get you that extra free time.

Don’t think that owning your business is always going to be fun, or that business ownership is easy. The benefit of entrepreneurship is that your efforts come directly back to you. Before you begin a serious business search, take the time to figure out what you really want out of this new journey and you will end up loving your work.

Are you considering taking the entrepreneurial plunge and are curious about the business opportunities out there? Would you like to know what types of businesses would fit with your goals for business ownership? Please leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Ask Good Questions: A Business Buyer Must – If You Weren’t Selling, How Would You Grow The Business?

Ask Good Questions: A Business Buyer Must – What Does The Seller Want Out Of The Deal?

Published March 29, 2017

If you are buying a business, you will have many questions – for yourself, for your business broker and finally for the business seller themselves.

Many business buyers go into the first meeting with the current business owner with a fairly lengthy and standard set of questions. Big lists like these might get you some of the information you need, but they typically cause more harm than good because no seller wants to be endlessly grilled with questions that could easily be answered by looking at the numbers or by reading the current lease. If you irritate a seller on day one, it will make the journey to a closing table that much harder.

Instead, you should go into that first meeting having done your homework. Go over the information you’ve been provided, do a little research on your own and come up with a few really good questions. Think quality over quantity. Many good questions can even serve multiple purposes. Here’s one:

If You Weren’t Selling, How Would You Grow The Business?

This is one of the best questions a business buyer can ask if they want insight into how their new business might be able to grow as well as key them in on any potential problems that have been ignored. Why? No one knows the guts of a business better than the current owner – and growth should be at the top of the priority list for any business.

If you want to make this question even more powerful, add a caveat. The caveat “if you had unlimited funds, time and resources” added to the question of business growth can reveal a wish list of possibly great ideas that the current owner, for whatever reason, wasn’t able to make happen. Here’s an example:

If you are looking at buying a successful, but small, ice cream shop – the current owner might tell you that they would have loved to open another location in a busy downtown area nearby, but they were never able to come up with the funds for a second location build-out because they spent the majority of their profits on a personal medical issue. This lets you know that there might be an immediate opportunity to grow the business once you take over. It also lets you know that the current owners had their eye on growth – they just couldn’t make it happen.

Answers to this question can also reveal potential problems brought about by owner neglect. If the current owner was capable of making a change to grow the business, why didn’t they? And what other aspects of the business have been left to slide?

If we revisit the ice cream shop scenario – say the current owner of a different ice cream shop says they probably could have done more marketing but they didn’t have time. Further investigation in to why there was no time for marketing reveals the owner spends very little time at their business and essentially leaves it (and the employees) to run on it’s own.

The point here is an owner who cares about the growth of their business has probably done a better job of running their business than someone who lets things slide. Asking this question will give you a good deal of insight into the health of the business you are considering. Do your homework – ask good questions.

Are you thinking about buying a business and are curious about how you can grow your new purchase right out of the gate? Would you like to now what other types of questions would be good to ask? Please leave any questions or comments and we would be happy to help.

Want to read about additional good questions? Click here:

Ask Good Questions: A Business Buyer Must – How’d You Come Up With That Price?

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Ask Good Questions: A Business Buyer Must – How’d You Come Up With That Price?

Ask Good Questions: A Business Buyer Must – What Does The Seller Want Out Of The Deal?

Published March 13, 2017

If you are buying a business, you will have many questions – for yourself, for your business broker and finally for the business seller themselves.

How’d you come up with that price?

As long as a listing price isn’t crazy, most buyers don’t tend to care how a seller came up with their price because a buyer will do their own valuation of the business during the due diligence period. While it is true that you as a buyer will be judging the value of the business on your own, you should consider why the current owner priced the business the way they did.

Why? The method used to come up with a listing price can vary. Sometimes multiples of earnings are used, sometimes the value of the business is based more on the assets – but there are many others as well. A typical seller will have an idea in their head of what they think they would like to get out of the sale of their business, then that number is tweaked to match the current cash flow of the business, the assets and inventory, the current market, etc.

While most valuation methods are pretty straight forward, like multiples of earnings, the method a seller used can tell you a lot about what parts of the business they find important and can help you understand where the sticking points of negotiations might be. For example, did they put a lot of value on the assets? Be prepared to give a little if you disagree with the seller on what those assets are worth.

The point here is although the question “What’s it listed for?” is important, the “Why?” is important too. It will tell you what parts of a business an owner focused on and it will better prepare you to sit down at a negotiation table.

Are you searching for a business to buy and are wondering how a seller came up with a price? Do you have more questions about the negotiation process? Ask us! Please feel free to leave comments or questions here and we would be happy to help.

Want to read about additional good questions? Click here:

Ask Good Questions: A Business Buyer Must – If You Weren’t Selling, How Would You Grow The Business?

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Ask Good Questions: A Business Buyer Must – What Does The Seller Want Out Of The Deal?

Ask Good Questions: A Business Buyer Must – How’d You Come Up With That Price?

Published March 6, 2017

If you are buying a business, you will have many questions – for yourself, for your business broker and finally for the business seller themselves.

What does the seller want out of the deal?

The answer to this question will not only tell you the base from which negotiations will begin, it can tell you volumes about how an owner really feels about their business and it’s future.

A committed owner who cares about the future of their business will not only want a check from a buyer. They will also be concerned that their business continues to thrive and continues to be a good place to work for their employees. Owners that care about the legacy of their business have likely been very attentive to the business and it’s growth. They will be more willing to keep skin in the game by offering seller financing and will probably stay on for a time and train a new owner too.

If the answer to this question is “as much money as possible as soon as possible”, then you need to take a good, hard look at the business. Determine why the owner is trying to abandon ship. Is the business a house of cards with well-concealed debts? Did a big competitor just move in down the street and they’re hoping you don’t figure that out until after they hand you the keys?

The point here is an owner who cares about more than just the financial value of their business has probably done a better job of running their business than someone on a mission to get out. Asking this question will give you a good deal of insight into the health of the business you are considering. Do your homework – ask good questions.

Are you thinking about buying a business and want to know more about how to come up with good questions? Do you want to know what to look out for in those first conversations so you don’t end up with a problem business? Ask us! Please feel free to leave questions or comments and we would be happy to help.

Want to read about additional good questions? Click here:

Ask Good Questions: A Business Buyer Must – If You Weren’t Selling, How Would You Grow The Business?

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Types Of Business Ownership – Florida

Published March 11, 2012

One of the most important decisions when forming your business is the corporate structure.

Here’s a look at some of your options in the state of Florida:

Sole Proprietorship

If the business is privately owned, in the USA it is a Sole Proprietorship. In the majority of cases this is a single person, who owns and leads the business. Simultaneously the Sole Proprietorship is the most common corporation structure. This type has some downsides. The owner is absolutely liable with his assets. He or she is liable for taxation and it is not easy to receive money for this type of business. He or she also has to apply for a business license.

General Partnership

The partners lead this business together and all of the partners are absolutely liable for accounts payable. The General Partnership has more administration effort and is more cost-intensive. Also for this type of business you have to apply for a business license.

Limited Partnership

The Limited Partnership consists at least of 2 people, a General and a Limited Partner. The Limited Partner has supervision, available and limited. He can’t be part of the management and acts as an investor. The Limited Partner leads and is liable for the business. A shareholder contract has to be prepared for the forming of the business. Furthermore you have to request a Certificate of Limited Partnership with the Secretary of State.

Limited Liability Company (LLC)

The Limited Liability Company is not accepted in all states but it is in Florida. The shareholders are personally liable for taxation and the accountability is limited to the business assets. For the forming of the business the filing documents have to be registered with the Secretary of State. At least two shareholders are required for a Limited Liability Company. Our accountant can inform you about tax benefits for other types of companies.

Corporation

The most used type of business for forming a company in the USA is the corporation. By presenting the Articles of Corporation to the Secretary of State, you can carry out the forming of the corporation quickly. Forming the company in Florida, the registered office is also in Florida. The corporate structures are governed by the laws of the State of Florida. The Florida Corporation can carry out business in every state of the USA. All of the states require a registration. Foreign nationals can also form a Corporation in Florida. A registered agent (a person headquartered in Florida) has to be named to receive and deliver mail/documents.

Before you make a decision it is important to contact a tax consultant. We can connect you to our partners to make it easy for you to make the right decision.

This article doesn’t present any legal advice, but solely serves as general information.

Are you thinking about buying a business but have questions about the formation of your business entity? Would you like to know more about the pros and cons of the choices above? Ask us! Leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com