Buyers Articles Archives - Page 29 of 40 - Infinity Business Brokers

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

Looking Good: A Record Breaking 2017 – BizBuySell’s Third Quarter 2017 Insight Report

www.InfinityBusinessBrokers.com

Published December 26, 2017

The small business market is booming, record setting booming, with this year on pace to see the highest number of small businesses bought and sold in the last decade.

Closed transactions are up 24% from the same time last year and small businesses are performing well, which may be a contributing factor to the increased numbers of sales and the higher sales prices. Median revenue of sold businesses is up 11.2 percent from the third quarter of last year, and the number of active listings is up 6.7% over last year. This increase of options means better choices for buyers looking to enter the world of business ownership.

Not only are businesses selling for higher prices, they’re selling faster too. The median time to closing fell 14.6% from last year – an average of only 146 days. This might mean that the confidence of buyers in the small business market and the motivation of sellers to sell while the market is good are coming together over the negotiating table.

The hottest industry sector? Service. Restaurants, in particular, saw a 22.2% increase in median revenue for those businesses that sold in the third quarter. The number of service industry transactions was also up – 26% when compared to last year.

What could be driving these impressive market gains? The economy is doing well in general, so small businesses are seeing good numbers. This coupled with the possibility of fewer regulations and a decrease in taxes could be giving the market a push.

What does this mean for you? Sell while the selling is good. The factors contributing to this booming small business market – like the possibility of tax reforms and the raging economy – may falter and affect what you can get for your business if you wait to list. A boom is always followed by a bust, so get the biggest return on your business investment by riding the wave at the top – not the bottom.

Want to know what businesses like yours are currently selling for? Contact us today.

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

The Latest Immigration News And What It Means For You

Published July 24, 2017

Both the 4th and 9th Circuit Courts of the United States upheld the hold placed on the travel ban earlier this year, but for different reasons. The Fourth Circuit Court ruled that the reworked ban violated the First Amendment – the amendment that prohibits the establishment of religion. The Ninth Court ruled that President Trump overstepped his authority because he made a decision about national security without adequate justification. The ban now heads to the Supreme Court where justices may decide to hear the case or may decide to delay it until the next session in several months.

If you are someone who is considering a move to the United States as a business investor – then it’s great news that yet another court upheld the ban. It shows that the incredibly restrictive nature of the new administration’s immigration policies will meet legal challenges on every front.

If you are looking to sell your business in the near future a continuation of the hold is good news for you too.

First of all, if your business is sensitive to the ebb and flow of the tourism industry, the legal pushback in the news tells the rest of the world that the U.S. isn’t such an intolerant place after all. Foreign tourism dropped off after the initial travel ban was announced, and this newest development might help to turn that trend around.

On the second front this hold might keep the administration’s attention away from such immigration programs as the EB-5 and the E2 – which many fear could be changed and restrict the amount of foreign-born entrepreneurs coming to the US. The backlash and legal maneuvering might also slow the administration’s push to limit immigration on other fronts that might effect the small business community for fear of further legal fights.

Resistance to the new immigration policies shows that the United States is not as intolerant of immigrants as the initial moves by the administration may have portrayed us. Continual resistance shows that no matter what the political climate we are unlikely to completely change our national identity as a country of immigrants based on one administration’s plans.

As to what the future holds – no one can be sure how the Supreme Court will handle the decisions of the lower courts. The fact that the lower courts upheld the bans for different reasons may make it more complex for the Supreme Court to hear and/or decide. For now, the best bet is to wait and see.

Michael Monnot

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

Great News All Around: The Newest BizBuySell Insight Report

Published July 19, 2017

The newest BizBuySell Insight report is out – and the news is better than good.

The first quarter of 2017 saw record numbers, where closed transactions were up 29% from the same quarter of 2016. This jump has a lot to do with the booming economy, access to financing options and strong numbers within the small business community itself.

Both median revenue and median cash flow are at the highest levels since BizBuySell started tracking data back in 2007 and median asking and selling prices moved closer together – showing a stabilization of the market.

What does this mean for you? It means that the small business market is healthy and growing, although stabilizing forces will probably curb the record setting numbers of the 1st quarter and leave us with a year very similar to 2016 (which was a great year on it’s own).

If you’re thinking about selling or buying a business, now is the time to do so because the market is healthy, business financials are up and prices are fair.

Do you have questions about the health of the market in your industry or in the industries you are considering? Contact us today.

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 »

Hire Right the First Time

http://www.InfinityBusinessBrokers.com

Published May 31, 2017

By guest contributor Jessica Trippler – www.BrinkResults.com

“I hired someone with lots of experience, so why is their performance lacking?”

If you are a hiring manager, this is likely a familiar frustration. You hired someone with all the right skills and knowledge, but they can’t seem to get the job done. Maybe you’ve tried to “train right,” equipping your new hire with the tools for success, and to “manage right,” giving clear direction and frequent feedback. But if you didn’t “hire right” in the first place, then your efforts may seem futile.

Did you know that only 20 percent of employees studied over a 16-year period were in a job that “fit” their talents? It’s important to recognize that different jobs require different sets of behaviors and values for success. For example, extroversion is ideal for a salesperson, but introversion better suits a researcher. Selecting the right person for the job goes beyond resume credentials and interview skills.

The first step to hiring right is identifying the key indicators for success for the position you’re seeking to fill. Once those behavioral metrics have been established, you’re ready to screen candidates for potential matches.
The statistically proven PDP® survey system can take the guesswork out of hiring. It starts with ProScan®, a quick, non-threatening assessment tool which focuses on an individual’s strengths and motivators. Once applicants have taken this survey, JobScan® will find candidates who best “fit” the Job Model for a specific position.

No screening process can predict success 100 percent of the time, but PDP comes close. It has a 96 percent accuracy rate, offering a standard of reliability far beyond the “hit or miss” method of hiring based on resume credentials and interviewing skills alone. Using this precision hiring tool will boost your confidence that you have selected the best candidate for the job.

Inc. magazine ranks behavioral assessment among the “Four hiring practices of highly successful organizations.” When you survey applicants about their values and motivations, and match their talents to a specific job, you’re well on your way to “hiring right.”

Here are few other tips for conducting a successful interview:
● Simulate a “typical” task. This will allow you to gauge specific job-related skills, observe how a candidate interacts with existing team members and how he or she works under pressure. If time does not permit, ask the candidate to prepare something in advance to present in person, or assign a “homework” task after the interview.
● Evaluate email communication. Note how well candidates express themselves in writing, as well as the timeliness of their follow-up.
● Get the team involved. It’s critical to observe how well candidates jell with your current team. Your employees will bring differing perspectives and insights to the hiring discussion. New hires should complement and enhance the existing team.
● Check references. This may seem obvious, but too often this step is skipped. Don’t be afraid to ask former employers tough questions, and ask follow-up questions if you receive a vague answer.
The bottom line is this: Bad hiring costs your company money. It can result in disengaged employees, frustrated managers and high turnover rates. While retention may be improved through better training and management practices, it’s best to hire right the first time. That way, you will be certain your new hire has what it takes to become a high performing employee.

Jessica Trippler
Director of Client Services

Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com
Request your complimentary PDP Report today<http://www.brinkresults.com/free-survey/>

Michael Monnot

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

Buying and Selling Businesses: Deal Killers

Published May 4, 2017

Whether you are in the market to buy a small business, or you are a small business owner who is looking to sell, it is important to understand the reasons that business transactions fall apart in order to avoid this issue yourself.

Business deals can be destroyed by either side, so whichever side of the fence you are on, avoid these pitfalls:

The Buyer’s Side

As a buyer, you need to be sure that you really want to buy a business. Are you really ready to take on the responsibility and work that it takes to run a small business? Do you have the support of your spouse and family? Owning a business will mean sacrifices for your family too, even if it is just in terms of the time that you would be able to spend with them.

Another reason that buyers have trouble getting to closing is unrealistic expectations. Do you understand how businesses are priced? Do you understand the buying process? Many new buyers go into the process believing that buying a business is a lot like buying a house, but nothing could be further from the truth. Talk to a business broker about your expectations early on in the game, as it will prepare you for the realities of a business transaction before you get there.

Do some research on your own to be sure you understand small business ownership and operations. You will want a good grasp on small business ownership before you get to the closing table. You do not want to be faced with a crash course your first day as a small business owner. If you have any doubt in your mind, it might be wise to resolve those doubts before you begin the business buying process.

The Seller’s Side

Many sellers put their business on the market purely out of curiosity. They want to see what the market is like, and really don’t have any legitimate reason or motivation to sell. This is a big mistake, as it alienates any good potential buyers that come your way.

The major issue that keeps businesses on the market forever is the price. Many business sellers have completely unrealistic expectations about the price and the market for their business. Use a business broker to alleviate this issue, as they will be able to properly evaluate your business based on the current market.

In the same line as price, as a seller you may need to accept seller financing as a part of any potential deal. Although it does occasionally happen, most of the time buyers do not come to closing with all the cash up front. If you are serious about selling your business, accepting seller financing will get you more potential buyers than if you refuse to do so.

Another major deal killer is dishonesty. As a seller, you should not try to hide the negative aspects of your business from buyers, as they will likely figure these issues out on their own during the due diligence phase. Failing to disclose that the business is in bad shape, that there is a major competitor moving in, or that you are dealing with a serious environmental issue are sure fire ways to make a deal fall apart.

Be sure that all owners of the business are in agreement about the sale, and check with your business broker and attorney about any legal ramifications of selling your business. You will not want any legal surprises the day before closing.

Keep the Deal Alive

Business transactions are inherently complicated, so it is important to remember some key points. First, honesty is the best policy. Second, trust the judgment of your business broker. Third, keep your expectations in the realm of reality. Lastly, be patient with the process. If all parties are serious about getting the deal done, any potential problems can ultimately be resolved.

Are you a business buyer who has questions about the process to find and buy a business? Are you a business owner who wants to know when the right time to sell would be? Please 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

Do I Have To Sign A NDA (Non-Disclosure Agreement) When Buying A Business?

Posted in Buyers Articles

Published April 27, 2017

The short answer is YES. You absolutely do.

The NDA (Non-Disclosure Agreement) is a crucial step. It is a legally binding document that protects both you and the seller. This agreement shields the seller from those who have no real interest in actually buying the business, and protects you as the buyer from a business that may seem fine from the outside, but is hiding major problems.

How?

In a business transaction, it is necessary for a potential buyer to see the financial records of that business, but a seller does not want to disclose such proprietary information to just anyone. If it is determined that you are a credible buyer, you will be given the opportunity to sign a NDA so that you will have access to the business’s information.

The NDA ensures that any buyer who is given access to the financial and/or proprietary information disclosed by the seller will not disclose that information to any party who hasn’t also signed a NDA. This is necessary to keep the for-sale status of the business confidential and protects the seller and the business from potential harm that an inappropriate disclosure might cause.

The parts of a NDA are as follows:

The location, name, and type of business.
The length of the agreement, typically several years.
A list of those who are party to the agreement.
What information cannot be disclosed (like financial records, contracts with staff and suppliers, etc).

Any buyer who refuses to sign a NDA is usually considered to be unnecessarily difficult and any business broker worth their salt will refuse to work with you. The NDA keeps the business you are trying to buy safe from those posing as buyers and from the disastrous consequences of a breach of confidentiality. If you consider yourself a serious buyer, be prepared to sign the NDA.

Are you thinking about buying a business and are worried about the legal repercussions of the NDA? Would you like to know more about how the NDA is good for business buyers? Ask us! Please leave 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

8 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