Smaller Is Better – How Buyers And Sellers Can Compete Against Big Business

Posted in Buyers Articles, Sellers Articles

Published April 6, 2020

According to a Gallup poll, the small business model is still favored by the public – so businesses large and small can help themselves by trying to stay true to the “smaller is better” model.

 

 

“Forces are pushing U.S. companies toward mergers, consolidations, acquisitions and growth. Yet, Americans continue to show strongly negative attitudes toward ‘big’ business, coupled with a continued strong attitudinal affinity for small business. This poses an essential dilemma for large enterprises attempting to build and maintain a thriving business-to-consumer customer base.

 

The basic data are clear. Gallup’s most recent research shows that 70% of Americans have ‘a great deal’ or ‘quite a lot’ of confidence in small business, more than three times the 21% confidence rating for big business.”

 

What can someone who is looking to buy a business or someone who is considering selling do with this information?

 

Think about why people prefer small businesses over huge corporate conglomerates. Attention. Customer service. The ability to understand local community needs. Those are the areas where smart small business owners can focus in order to set themselves apart from the big businesses that could otherwise easily destroy them with volume pricing. The way you put those ideas into practice is by making your business as accessible and customer-experience focused as possible.

 

If you are buying a business, you need to make this consideration when you take over the helm. Regardless of the old owner’s practices, you need to focus on customer service and community involvement. If your new business doesn’t have a website or social media presence – create one. Make you business accessible both on and offline. Come up with creative marketing strategies that will position your new enterprise as a pivotal member of the community. Sponsor related community events. Donate money or supplies when the occasion calls for it. Join local festivals and parades. You need to keep your focus on the local customer because their loyalty to you is your only weapon against the intrusion of huge corporations into your industry space.

 

If you currently own a business and are considering selling now or in the near future – your focus needs to be nearly the same as someone just about to take over as a new owner. You absolutely must have a decent website, one that gives real-time information about the goods and services you offer. You need a social media presence that you update several times a week, if not daily. You should be growing your business always, even if your near-future plan is to sell because a business with a solid path toward growth is going to fetch a much better selling price than a business that is stagnant. The creative marketing strategies above can and should be used to solidify your business in your area as a community business.

 

Big business will only win if small business stops paying attention to what matters most – local, loyal customers and their ability to access your business how and when they want to. Online presence and community presence will put the business you buy and the business you hope to sell in a great position to succeed.

 

Are you thinking about buying a business and were worried about how a small business can compete with the industry giants? Have you considered selling your business and want to know more about how implementing the ideas here can help your sale? Ask us! Leave any questions or comments here and we would be happy to help.

 

 

Want to read the Gallup article? Click here:

https://news.gallup.com/opinion/polling-matters/216674/business-gets-bigger-even-americans-prefer-small.aspx

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Selling Your Business? How That Is Still Possible During A Pandemic

Posted in Sellers Articles

Published April 2, 2020

 

Is it possible to sell your business during a pandemic?

 

Yes! It is absolutely possible to sell your business in the age of Covid-19, for a couple of reasons. 

 

One, the buying and selling of businesses is the job of business brokers. Business brokers don’t have their own licensing category in terms of professional regulations – so they are licensed as real estate brokers. The good news is in most states real estate is considered an essential service, meaning business brokerages are currently operating – albeit remotely. 

 

That brings us to our second reason – the vast majority of the business buying and selling process can be done without having to break social distancing guidelines. 

 

You can meet with your business broker by phone or by video chat. When it comes to contact with potential buyers – conference calls and video meetings are always available, and quite frankly something we already do with regularity. Documents can be shared securely online. We can create a virtual tour of your business so potential buyers can do an on site visit from the comfort of their couch. Our brokers can even arrange in person contact or on site visits if absolutely necessary, as we have implemented protocols whereby appropriate social distances are kept in place, no one shakes hands and all common surfaces (like door handles) are cleaned both before and after. 

 

If you have been considering selling your business – now might be a great time to start the process. You probably have extra time on your hands right now, and you can use that time to organize your business documentation, talk to your business broker and perhaps even tackle your to-do list in terms of maintenance at your currently closed business location. 

 

It’s also a great time to list your business because there are a lot of seriously bored people who are currently rethinking their life choices – and more than a few of them will be searching online for business ownership opportunities. Why not make your business one of them?

 

We’re sure you have a lot of questions. It might seem like a bad time to make any drastic changes to life, but the truth is life will eventually return to normal. Kids will go back to school, people will go back to work and your business doors will be open again. Where do you want to be when that return to normalcy happens? Retired? Looking for a new business because you are burned out with the one you currently have? Taking a new path with the money you’ve made from the sale of your business? 

 

If you’re considering a big life change, talk to one of our business brokers today. They can tell you about the changes in protocol and changes occurring within the market – as well as what businesses like yours have recently sold for. They can also offer guidance on how to get your business ducks in a row so you can take advantage of the litany of buyers looking for a different life too. 

 

Don’t wait. Use this unprecedented time wisely, and you could be well on your way to a new chapter of your life.  

 

Are you thinking about selling your business but are worried that the current pandemic will make it impossible? Do you have questions about how the business-for-sale market has changed recently? Ask us! Please leave any questions or comments and we will be happy to help. 

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Business Sellers – The Pros And Cons Of Buyer Vetting

Posted in Sellers Articles

Published March 26, 2020

If you are selling your business you know the importance of keeping your sale under wraps. Confidentiality, both of the for-sale status of your business and of your business documentation (like bank statements, tax returns and contracts) is paramount. Your initial conversations with your business broker likely included discussions about how to keep confidentiality intact – by staying tight lipped around your employees, by keeping you business listing vague, by giving specific lists of individuals who should not be allowed to receive information, etc.

 

What about the buyers who will be privy to all of that confidential information? How do you decide the level of vetting they receive before finding out anything about your business?

 

 

The simple answer is the more buyers that get to see your business, the higher the likelihood that you will be able to sell. Using an industry standard NDA (non-disclosure agreement) and a good broker who will ask the right questions should be sufficient to screen the majority of potential buyers – but some business sellers want to take the screening process to the next level. 

 

Requirements like proof of financial capability and buyer background (such as industry experience or education) are things you as a business seller have the right to ask for – these are hoops that any buyer will eventually have to jump though anyway as the deal progresses. What you need to consider is in some cases putting all of the hoops at the very beginning, before the buyer even learns the name of the business – might drive some buyers away. 

 

There are some circumstances where a heavier vetting process would be necessary – for instance the purchase of a multi-million dollar business is going to require any potential buyers to prove they have the financial means necessary before access to proprietary information will be granted. For most main street small businesses this high-level vetting isn’t necessary. What is necessary is getting your business in front of as many buyers as possible. 

 

Heavy screening up front can be a double edged sword – so you need to have a frank and honest discussion with your business broker about why you think you need any “above and beyond” initial requirements, and then listen to their experienced advice about how to proceed. In reality less is usually more when it comes to initial vetting, and any business broker worth their salt is going to ask the right questions before disclosing your business.

 

As the seller, it is ultimately up to you who learns the for-sale status of your business, who gets to see your business documentation and in the end who gets to buy it. Ask lots of questions in your initial discussions with a business broker. Find out how they maintain confidentiality and what they recommend in terms of initial buyer vetting. Then use your best judgement to come up with a plan that makes you comfortable while staying realistic with the process.

 

Are you considering selling your business and think your circumstance calls for very rigorous vetting of potential buyers? Would you like to know more about how we maintain the confidentiality of our client’s businesses? Please ask us! Feel free to 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

www.InfinityBusinessBrokers.com

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How To Solve The Family Entrepreneurial Divide

Posted in Sellers Articles

Published February 3, 2020

Owning a business means putting your heart and soul into a living, growing business entity – and with all that heart and soul comes a lot of personal attachment. Many small business owners dread the day when life will force them to hand over the reins to someone else. How could anyone else do the job like they do? How could anyone else possibly care as much as they do? What if a new owner changes things? These are the things of entrepreneurial nightmares.

 

What do many small business owners do to deal with their issues of letting go? They try to groom one or more of their children to take the helm. By handing the business down to one’s offspring you can always keep one foot in the door and still exert some control, even if it is from behind the scenes. You can also continue to reap the financial rewards of small business ownership by taking a salary to fund your retirement.

 

 

Unfortunately, however, many small businesses that get handed down to children fail or take such a steep decline that the aging parents must come out of retirement to try and right the ship.

 

Why does this happen?

 

Children are not clones of their parents – they are their own people with their own motivations, hopes and dreams. A great many children of business owners take over the family business not because they want to, but out of a sense of duty.

 

Any successful business owner will tell you that without drive and passion there is little chance of keeping a business alive. If you try to force that drive and passion onto someone else – the outcome could be ugly. In other cases it isn’t a lack of drive or passion, some people just aren’t cut out to be business owners.

 

If you are grooming your kids for life as the owner of your business you need to consider that they, secretly or not, might not want to do what you do.

 

If you have a family business, the first thing you need to do is have a serious talk with your kids about the future of the business, their dreams and their goals. You might be surprised to learn that they want to do something else.

 

If this is the case, all is not lost. You can still make a return on all of the investment of time,energy and money you have contributed to your business over the years by selling the business. You can use the proceeds of that sale to fund your retirement or to invest in a business venture that your children actually want.

 

The message here is every business owner needs to deal with the reality that no one lives forever, and for the business to continue someone else needs to take the reins. Turn all of the love you have for your business into capital you can use instead of forcing your kids to take the helm.

 

Do you own a business and have always planned to give the business to your children? Have your kids expressed zero desire to take over when you retire? Would you like to know what businesses like yours have recently sold for? Ask us! 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

www.InfinityBusinessBrokers.com

 

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Benefits Of The E2 Visa – A Primer For Business Buyers And Sellers

Posted in Buyers Articles, Sellers Articles, Visa/Immigration

Published January 27, 2020

This United States is a country of immigrants. Our foundation was built on the backs of the small business owners who came to this country to give their families a chance at a better life. While today’s anti-immigration news climate might seem to impede the path of those living abroad who have a desire to move to the United States – it doesn’t mean you can’t get here. The entrepreneurial American dream is still very much alive and well.

 

The United States allows several pathways for those who would like to come here and invest in a business – because those businesses help to strengthen the American economy and create jobs.

 

One of these pathways is by way of the E2 Visa.

 

 

An E2 Visa is an option worth considering if you are a foreign buyer because it allows a non-immigrant investor to come to the U.S. with their spouse and children to live and work so long as they invest in a business that qualifies for E2 status. There are rules to consider, such as whether or not the country where you hold citizenship will allow you to qualify for this type of Visa, but those answers can easily be found by checking the Department of Homeland Security U.S. Citizen and Immigration Services website, found here:

 

http://www.uscis.gov/working-united-states/temporary-workers/e-2-treaty-investors

 

or by asking a qualified business broker who has experience with the E2 Visa process (like us!).

 

If you are a business seller, then this type of Visa could potentially be very important to you as well. If your business qualifies for E2 status, then you will be opening your business listing to a huge market of investor buyers who are looking for a way to come the the United States.

 

If you haven’t heard of getting your business qualified for the E2, don’t be surprised – there are not many brokers who are experienced in this type of transaction, and many falsely believe that throwing a Visa into the mix will slow a transaction down. While a Visa does add a few more steps (mostly on the buyer side of the table), in most cases the process will only be delayed by a few weeks – and quite frankly we have had more deals held up by the sellers themselves than we ever have by consulates evaluating E2 status.

 

If you think the E2 might be your path to entrepreneurship in the United States, don’t delay. There are great businesses for sale that currently meet the E2 requirements. If you haven’t asked about qualifying your business for the E2 Visa, please do by contacting us today! The more buyers who see you business as a potential investment opportunity, the better – so why limit yourself to only local and national buyers? Get your small business on the international scene and you will have a great chance of finding the right buyer.

 

For more information about the E2 Visa process, please also visit our sister site,

 

http://e2visa.com/

 

Are you a foreign buyer who is interested in the option to buy a business in the States with the E2? Are you a seller who wants to know if your business would qualify? Please feel free to 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

www.InfinityBusinessBrokers.com

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No Website? Why Business Sellers Need An Online Presence

Posted in Sellers Articles

Published January 16, 2020

We all know the importance of an online presence in our digital world, but what many business owners may not consider is what the lack of an online presence can do to the possible future sale of their business.

 

 

Why would a lack of an online presence hurt a business sale? Consider the view from the other side.

 

You are looking for a business to buy, a good investment. You find two nearly identical businesses for sale – similar numbers, similar industries and similar locations. One business has a poorly maintained Facebook page that appears to have been nothing more than an afterthought. The second business has a visually appealing and highly informative website.  

 

As an investor, which business appears to be more sound? Which one appears to have a more attentive and growth-driven owner? Which business looks like it would be favored by potential new customers?

 

The answers to these questions are easy. The business with the better (or any) website, right?

 

You no longer have to be an IT expert to give your business a decent web presence. There are a multitude of web design services like Wix or Squarespace that allow you to use simple templates and drag-and-drop features to make your own website from scratch. There is also the option of hiring a website designer, although this will be more expensive than a do-it-yourself version. Either way, your business will have a web presence that speaks to a level of professionalism that a Facebook page (or no online presence at all) could never do.

 

Ok, I get that I need a website, but what should I include? A good business website has the name, address, phone number, email and other necessary contact information that is easy to find. You should also include information about the products or services your business offers, your hours of operation, menus or product lists and any other helpful information that you would want your customers to know. How are you different from the competition? How will your services or products help?

 

By having a visually appealing and highly informative website in place before you list your business for sale you will be giving buyers a great first impression. You will also be telling prospective buyers you are a business owner who is interested in the growth and future of the business you’ve built – far better than the perception that you are a business owner who is behind the times.

 

Are you a business owner who is thinking about selling but don’t have a web presence to speak of? Would you like to know more about what buyers look for in a business? Please feel free to 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

www.InfinityBusinessBrokers.com

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Why Offering Seller Financing In A Booming Economy Is A Good Idea

Posted in Sellers Articles

Published September 19, 2019

 

If you are considering selling your business, then you probably know what a complicated process it is can be.

 

The best way to successfully maneuver the path to a closing table is to be very flexible, and this flexibility is pivotal when considering whether or not you should offer seller financing.

 

Sure, the economy is currently booming. If you were trying to sell your business back mid-recession, then offering seller financing was an absolute must as traditional lending disappeared and most buyers didn’t come with fist fulls of cash.

 

Now there are more cash buyers in the market than there have been in recent years, which is terrific news – but if you limit your buyer pool to only those with all-cash offers, you won’t be doing yourself any favors.

 

Why?

 

Flexibility. Not every business is right for every buyer, so limiting your pool of buyers right out of the gate may keep you from selling your business quickly (if at all). This is especially true if you have a niche business that will have a hard time attracting a huge number of buyers anyway.

 

Also, a seller who demands an all-cash offer typically gets only 70% of their asking price in the end, while a seller who is open to the idea of seller financing gets somewhere in the mid to high 80’s. Do you really want to miss out on 15% or more?

 

Increasing your buyer pool by offering seller financing as an option also means you may have the opportunity to choose from multiple buyers and multiple creative offers – thereby creating a chance to get the best return on your business you possibly can.

 

Yes, we would all love full-price, all-cash offers that land on our desk the day our business hits the market, but in reality a flexible seller is a seller who will actually make it to a closing table.

 

Talk to your business broker about what amount of seller financing they think would be appropriate and what you are comfortable offering. Listen with an open mind to any offers that come in from buyers who are asking you to finance part of the deal. In the end, it is still up to you whether you take an offer or not – just keep your options open throughout the process.

 

Are you considering offering seller financing for your business and want to know that the terms of a typical deal look like? Do you have more questions about how much of a deal you should finance? Ask us! Please leave any questions or comments 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

www.InfinityBusinessBrokers.com

 

No Comments »



The Age Of Retail And Service Giants: How One Angry Customer Might Sink The Ship And Your Business Sale

Posted in Sellers Articles

Published September 12, 2019

Are you selling your business? Daydreaming about your new life after the sale? Thinking about life on a beach with a drink in your hand? Thinking about the future can be a great distraction, but if you own a small business in the retail or service sectors – you need to be careful about letting your focus slip.

 

Why?

 

We’ve all had that bad customer service experience. We’ve all skimmed past the 2 and 3 star businesses when reading reviews – preferring to give our business to someone with a 4 or 5.

 

We all know that one bad experience and one angry customer can create 10, 20, 100 more – particularly in the age of online reviews.     

 

We also live in the age of retail giants, and the threat they pose is real – particularly for smaller main-street businesses. There’s also a new trend of huge service-based companies moving into smaller markets. While these monsters swallow up huge chunks of what was previously small business territory you only have a few things those enormous companies don’t. The most important of those few things is local, loyal customers. 

 

Your local, loyal customer base is your bread and butter – and they are loyal because you are reliably good at serving their needs. They’ve never had a bad experience at your business. They tell their friends and coworkers to try you out. Then you decide to sell and take your foot off that all-important customer service pedal.

 

Losing your focus is never a good thing, but it can have potentially devastating consequences if your are in the midst of trying to sell. Buyers want to see all of your numbers, and if your numbers show a dramatic slide once the business went up for sale – it’s a sign of a huge problem. Buyers are also going to immediately look your business up online and read reviews. If your customer service has taken a turn for the worse you’d better believe those local and loyal regulars are going to be speaking out on review sites. No one want to take over a business that has been neglected to the point of faltering or a business that is hemorrhaging regular clientele. 

 

How do you keep this from happening? Stay the course you always have and focus on those regulars. Selling your business can take 9 to 12 months (or more) in most cases, so you need to act like you aren’t selling for that period. A year of neglect can do insurmountable damage to a business and to it’s reputation – so stay on the ball.

 

Are you thinking about selling and hadn’t considered how online reviews may impact your sale? Do you have advice for other business owners about how to stay the course through a sale? Would you like to know what businesses like yours are currently selling for? Leave any questions or comments here. We would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

No Comments »



Last-Minute Greed: The Business Deal Kiss Of Death (And How To Avoid It)

Posted in Buyers Articles, Sellers Articles

Published August 12, 2019

 

Buying or selling a business is a large undertaking. From start to finish it can take months of back-and-forth to reach and agree on a deal. One you get to that point, where a purchase contract is ironed out, you should be able to coast through the home stretch – right? Not always. This home stretch period should be a breeze, where sellers tie up loose ends and buyers get geared up to take over the helm – but in many transactions something strange happens. Last-minute greed.

 

What do we mean?

 

Buying or selling a business typically involves large amounts of money changing hands. It is completely normal to get 11th hour cold feet and panic for a moment with the thought that you are either paying too much or aren’t getting enough. Maybe you came to this thought on your own, or maybe a friend or family member has chimed in late to say they think you’re getting ripped off.

 

Momentary panic is one thing, but if you let this fear get the better of you it can have disastrous consequences.

 

For instance, in this panicked state you call your broker and demand to put the deal on hold while you reconsider or demand to head back to the negotiation table. The other side of the transaction is then appalled at your insinuation that the deal has somehow (very suddenly) become unfair and balks at the suggestion that you renegotiate. Guess what? Your deal is probably dead. 

 

You have spent weeks and months negotiating, looking at numbers, pouring over books – and after all of that you have arrived at a number that both sides agreed was fair. Why the last minute doubt?

 

It’s just cold feet. The way you are feeling is completely normal, but remember that while you were in a more rational state of mind you decided that this deal was one you wanted. It was a deal you thought was fair. You have had many conversations with your broker, with the other side – and you felt comfortable moving ahead. Everyone always wants the most they can get for their money, and business transactions are no different. The emotional swings are just larger because there’s more money involved.

 

Last-minute greed isn’t going to get you a better deal. It’s more than likely going to end with no deal at all, and a colossal waste of time for everyone who’s been involved – including you. We’re not saying that you should agree to a deal that’s unfair. What we are saying that if you were fine with a deal until days or moments before the money starts changing hands – you’re probably just momentarily overwhelmed.

 

If you do suddenly feel like the deal isn’t right and you should be either paying less or getting more – give your broker a call. They’ve seen 11th hour panic many, many times and can help walk you through the ramifications of trying to renegotiate with the other side. They’ve also seen deals where something does come up at the last minute that requires renegotiation – and they can help you decide if that’s really the scenario you’re in.

 

Don’t destroy a perfectly good business opportunity because it’s scary to take a big plunge. Look to your broker for help, and do your best to remain calm and rational all the way to closing.

 

Are you thinking about buying a business but are worried about writing such a big check? Have you considered selling your business but want to know how you decide if an offer is fair? Do you have a story about last-minute greed in a business transaction you think would help other buyers or sellers? Feel free to leave any questions or comments here, we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Business Broker 101: Making The Right Choice

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

Published July 15, 2019

Our industry sometimes gets a bad rap, but as professionals who deal with other business brokers on a daily basis – we get it.

 

Like any industry, there are great brokers who excel at their job, and then there are those who are not so great. This article is meant as a peek into the business broker world and a quick education of what business brokers (should) do with the hope of helping business buyers and sellers choose a professional who will be a help – not a hindrance.

 

 

For starters, what is a business broker? A business broker is someone who assists business buyers and business sellers with the business transaction process. They (depending on the state) are licensed and insured to do this type of work, and although the business world is very different than the real estate world – they are often licensed as real estate brokers.

 

You can liken what a broker does to the buying and selling of homes, but with some MAJOR differences. First, business brokers aren’t typically selling property. They are selling existing businesses, and most businesses don’t own the property where they are located – they lease it from someone else. Second, the marketing and sales process for a business is very different from the same process for a house. For example, business sales are inherently much more complex and the for-sale status of a business must be kept in the strictest confidentiality (businesses for sale are perceived to be businesses on the verge of failure, which is rarely the case – and without confidentiality the whole staff might quit, clients might cancel contracts, etc.).

 

A business broker is hired by a business seller to list their business on the business market, and also hired by business buyers to help them find and then purchase a business. The commission paid to a broker (or brokers) involved is typically paid as a percentage of the final sale price by the seller.

 

Not all business buyers who come into the market end up buying a business, in fact the rate is probably something like 10% of those who inquire about businesses actually end up buying. For this reason, many buyers find it difficult to get the attention of brokers and sellers until they are forthcoming about their financial information and are ready to make serious offers.

 

Not all businesses that get listed on the market sell, this is also just a fact of the industry. The average rate most brokers hold is somewhere between 20-25% of businesses they list actually sell. If that rate sounds abysmal to you, we agree. Ours is typically closer to 60%, and most good brokers will be in that range. Why don’t businesses sell? Why isn’t the rate higher?

 

There are a litany of reasons why businesses don’t sell. Some businesses are priced way too high right out of the gate, and as such won’t sell because they are far outside the range of what the market will allow. In some cases the sellers refuse to take anything but a full-price, all-cash offer, which almost never happens. Some brokers take listings just to load up on potential calls, but do little to nothing to actually sell all of the businesses they list. We see “marketing packages” that consist of three poorly photocopied pages of old tax returns and nothing else. We deal with brokers (and sometimes sellers too) who rarely, if ever, respond to requests for information. In other cases, a business may not sell because of the time constraints of the sale on the seller’s side. If you have a very niche business, you will need to wait for a very niche buyer. Even if you don’t have a niche business, patience is necessary as most businesses take somewhere between 9 to 12 months to get from listing to closing.

 

Now that you have an idea of how the business of buying and selling businesses works, how do you pick a good broker instead of a bad one? Ask questions. Lots of them. A good broker will have no problem supplying you with answers.

 

If you are a seller, ask to see what a typical marketing package looks like. If you’re a buyer, see how quickly your requests for information and phone calls are returned. Ask any broker what percentage of their clients come from referrals (a high percentage here is a great sign). When you listen to answers to your questions, is the broker being honest with you, or are they just telling you what you want to hear? How important is confidentiality to this broker? How many closings do they typically have a year? Does this broker have their own shop, or are they a part of a much bigger company (and if part of a big company, are the numbers of businesses closed and number of listings just theirs, or are they including the corporate numbers)? Are they properly licensed and insured to do this type of work? Is this person only a business broker, or is this a side job that they don’t focus on?

 

The help of a good business broker can mean the difference between success and failure in the business market, so ask questions. Once you’ve found a good broker you can work with – listen to their advice. A good (or great) broker is there to help you, and by helping you and others like you, help the small business community they depend on.

 

Are you a seller who wants to help your business sell with the right help? Are you a buyer who’s had trouble getting attention from anyone in the business? Do you have more questions about the business buying and selling process? Contact us today or leave us a question or comment. We would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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