You’ve spent a great deal of time, energy, and money building your business, and now you are ready for a new business chapter or to step gracefully into retirement. Perhaps your hard work has paid off with a prosperous business that will look great to any potential buyer and will be met on the marketplace by more than one offer.

What if you are on the other end of the business selling spectrum?

You may be completely burned out. You might be very low on cash flow. If you are afraid that putting your business on the market is an exercise in futility simply because you are burned out, don’t be. There are options for any business owner that don’t include locking the door and walking away.

You have worked hard, so when you are ready to retire from your business it is time to let all of that time and energy work for you. Just because you may not see the current value in your business, it might be just what a prospective buyer is looking for. Try to avoid selling yourself short by talking with a business broker about your business exit options.

What are a few options to consider?

-Spending some time getting the business, and more importantly the numbers, where they need to be in order to get you the greatest return in your business sale.

-Franchising or partnering with a similar business that is looking to expand.

-Putting a partner in place that will let you significantly reduce your time commitment to the business.

Before you walk down any of these paths be sure that you have a defined reason for selling or exiting your business. If you are not really ready, it will likely mean that you will end up dragging your feet in the process which may cause potential deals to fall apart.

Are you a business owner who is ready to retire or an owner who is feeling a bit burned out? What business exit options have you considered, and do you have any questions about what options may be available to you? Leave a comment or question here and we will be happy to answer you.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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You are a business owner, an entrepreneur. The economy of the United States depends on people like you because small businesses form the backbone of this great country. You have put your own blood, sweat, and tears into building your business. You work every day to keep your business running.

Have you thought about the end of your participation in your business? Most small business owners don’t give this idea much thought, but its inevitable nature makes it something you should prepare for.

What will you do when you decide not to be the owner of your business anymore? There are three basic choices.

1.       Lock the door and walk away.

This is not the path that any new business owner dreams of the day they first open, but it is a reality that many business owners will face if they are unprepared for the end. From the start, you should have an exit strategy that ensures you won’t end up with this option.

2.       Liquidate your business assets.

When a business ends up in real trouble, many take this road in an attempt to recover at least a small part of their business investment. This is another path that can be prevented with the right planning from the very beginning.

3.       Sell your business.

This is by far the best option, as you can benefit from your enormous investment of time, energy, and money. This option starts with a strong exit strategy, even if that exit isn’t in the foreseeable future. Lay out the reasons why you would sell, and always have the business in order in case something happens that would force you to sell. It is far easier to keep the business in good order than to scramble at the end. Ask yourself what you would want to see if you were the buyer coming in to look at your business. Seek the advice of a business broker early on, as they know what buyers are looking for.

Are you a business owner who has never thought about an exit strategy? Are you a business owner who would like to know more about what buyers are looking for? Leave a comment and we will answer any questions you might have.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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I would like to put my business up for sale, but I’m very concerned that if my employees find out they’ll all quit.  How do I keep this from happening?

Confidentiality is absolutely crucial when you are considering putting your business up for sale.  It is not only your staff discovering the potential sale that you need to be concerned about.  It can be devastating to your bottom line if your competitors, vendors and customers find out too.

Confidentiality needs to be in place throughout the business sale process.  It is not beyond the realm of possibility that a deal with a prospective buyer will fall through, and you will want protections in place that will keep that former buyer from disclosing your business status.  It may also happen that you decide not to sell after all.

How do you keep confidentiality in place?  Hire a business broker.

Only a broker can be an intermediary between you and potential buyers, and then only disclose your business to those who have signed the appropriate nondisclosure agreements.  If you have a competitor, you can even specify to your broker that those individuals not be told the business is for sale. It is your broker’s job to ensure confidentiality during the sale process, and their help with this aspect of the business transaction is essential.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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The food is great, the service fabulous and the restaurant is busier than ever – but are you wondering why the bottom line isn’t all it should be?

Check your FOOD COST. A vital ratio – key to the success of any restaurant as it directly impacts profitability. A profitable restaurant typically generates a 28%-35% food cost. Coupled with labor costs, these expenses consume 50%-75% of total sales. Because of the impact food cost makes on an operation, food cost is one of the first things we examine at a troubled property. Beyond the bottom line, food cost also reflects an operation’s food quality, value provided to the customer, and management skill level.

CALCULATING YOUR RESTAURANT’S FOOD COST

TIME FRAME:
Start Date_______End Date_______

FOOD SALES (including coffee, juices and non-alcoholic beverages): A._______

COST OF FOOD SALES:
Food Purchases (including non-alcoholic beverages):_______
Inventory Adjustment:
Beginning Inventory_______
Ending Inventory_______
Difference_______B._______

Food Cost = Cost of Food Sales / Food Sales

FOOD COST =
Line B / Line A =_______=_______%

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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