Why Having A Business Broker Is Good Business Sense



If you’ve come to a point in your business life where selling your business and moving on are in the cards, then you might think that looking at cost alone will be the key to a successful sale. Nothing could be farther from the truth.

 

Many first-time sellers try to forgo the services of a business broker because they want to save the money they would need to spend on the broker’s commission – unfortunately most of these sellers will end up costing themselves far more than they would have if they’d just sought professional help. Let’s look at why a good broker is worth every penny of their commission in a successful sale:

 

You aren’t qualified to sell your business.

You may be a fantastically successful business owner, but as far as selling your business is concerned – you are essentially the “new guy” on his first day. No one comes out of the gate knowing everything you need to know – so it makes far greater sense to hire someone who goes through this process every day. A good broker knows how to confidentially market your business, has databases full of buyers, knows how to properly price your business to sell – the list goes on.

 

You are too emotionally attached to successfully negotiate.

One of the main roles a broker plays is as a buffer between the parties, and this role is critically important. Any savvy business owner knows how important it is to stay objective and keep emotions in check during negotiations, but the hard truth is it is almost impossible to do that if it is your own business for sale. Why? You have lived and breathed this business, sometimes for many years, and as such it has become an extension of your life. The value of your business to you is far more than a number – but to a buyer, numbers are all that matter. Many deals have fallen apart because a seller was offended by an offer, offended because a buyer was planning on changing the menu or concept – all of these pitfalls can be avoided by having a broker in the middle.

 

You are going to spill the beans.

One of the most important aspects of a successful listing and sale is confidentiality. No one should know the business is for sale unless they have been properly vetted to make sure they aren’t your competition and unless they’ve signed the appropriate non-disclosure agreements to prohibit them from disclosing the for-sale status of your business. If confidentiality is breached, you can potentially lose clients, staff, vendors, contracts – all things that would be devastating for your bottom line. Sellers who try to go it alone inevitably tell the wrong person that the business is for sale. A good broker protects the confidentiality of the business, thereby insuring the integrity of the business all the way to the closing table.

 

 businessman holding a sold sign

 

Trying to save money by forgoing the services of a business broker will cost you far more in the end. You have worked hard for your business, so ensure you get the best return possible on all of that investment by having a professional guide you. They will be worth every penny.

 

Have you tried to sell your business on your own without much success? Do you have more questions about what a business broker brings to the table? Ask us! Leave us a comment or question here, 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

http://www.infinitybusinessbrokers.com

 


Why Buying A Business Is A Better Choice



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Many of you with regular jobs may have daydreamed about one day becoming your own boss by starting the next Google or Amazon in your garage- but the best path to entrepreneurship isn’t the start-up, it’s buying a business that already exists.

 

Why? Startups are incredibly risky. You are starting with an unproven concept in an unproven location in an unproven market. Many, many startups fail.

 

In fact, in the BizBuySell Guide to Buying A Small Business, author Ed Pendarvis notes that various studies by the SBA and Department of Commerce have shown that between 65 percent and 90 percent of startup businesses are no longer operating after 5 years. In fact, most startups fail in the first two years because they run out of money before they can generate a positive cash flow.

 

http://www.inc.com/bob-house/want-to-reduce-risk-buy-a-business-don-t-start-one.html

 

It is a far safer bet to buy a business that has a proven track record – a concept, location and market that have worked for this particular business long enough for it to turn a positive cash flow.

 

Another major issue with a startup business is the issues that can kill a fledgling business haven’t found their way to the surface, like too many partners or zero written agreements.

 

Every day, entrepreneurs who are too focused on the big idea or on near-term needs neglect what it takes to sustain long-term success. In prioritizing the short term, they unwittingly sabotage their futures.”

 

http://www.inc.com/eric-v-holtzclaw/5-common-startup-mistakes-that-will-sink-you-later.html

 

If you really want entrepreneurship to be in your future, then the far safer and cost-effective method is to buy an existing business and make it your own.

 

Would you invest your money in an unproven business, or would you invest in a company who’s proven their staying power? Think about entrepreneurship in the same way. It is a far better bet to buy a business that already works instead of starting from the ground and building up.

 

http://www.infinitybusinessbrokers.com/costs-starting-scratch-buy-an-existing-business-instead/

 

 

What if the reason I want to own my own business is because I want to create something that is uniquely mine? You can accomplish this easily by buying an existing business. Here’s how:

Let’s say you have a really great restaurant concept. Instead of building an entire restaurant infrastructure from scratch, you can buy an already proven location that is fully equipped, furnished, licensed, staffed and stocked. When you take over the restaurant you can begin to implement your own concept over time. You will save yourself the money and the headaches of starting from scratch.”

http://www.infinitybusinessbrokers.com/create-a-startup-or-buy-existing-why-buying-an-existing-business-is-right-for-you/

 

If entrepreneurship is in your future, consider the costs and risks of a startup before discounting the opportunities available by buying an existing business. You can have a successful career as a business owner without the added risk of an unproven business.

 

Have you considered buying a business, but couldn’t find one that fits your goals? Do you have a great idea for a startup, but aren’t ready to take the financial risk? Please feel free to share your experiences or questions below.

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


Deciding On The Entrepreneur’s Life: The Three Big Questions A Business Buyer Should Ask



Sure, there are the big and basic questions you should ask when looking at a business to buy – but there are also some more unusual (but very telling) questions that will help you figure out if this really is the right business for you.

 

What do we mean by “the right business for you”? Entrepreneurship is tough, and along with a decent amount of personal drive a successful entrepreneur has to love what they do. Nothing other than passion is going to help you when the hours get long and the money gets tight. For this reason, it is critically important that you decide what your ultimate goals are for business ownership before you start shopping around.

 

You should ask yourself what you want your life as a business owner to look like. Are you willing to work crazy hours for a big financial return, or are you leaning more towards something a bit more managerial but not completely life-encompassing? Do you thrive on being in control, or do you like to delegate?

 

The answers to these questions will be important for determining what kind of business and even what individual business would be best for you.

 

Once you have the answers to your soul-searching in hand, you may be wondering where on a tax return or P&L you can figure out if a business fits with your entrepreneurial desires. The answer is, you probably won’t be able to discern something like the level of owner involvement from just the numbers.

 

Perhaps, then, you should just ask sellers how many hours they work a week, or how many employees they have? These answers will help, but the three questions that will truly get at the life you will have as owner of the business are these:

 

When was the last time the seller went on vacation?

How long was the vacation?

Who was in charge and were there any issues while they were away?

 

at the seaside 

 

These questions might not seem profound, but the answers can tell you as a buyer a whole lot about what the seller’s day-to-day life is like.

 

If the answer is “never” to the last time the seller took a vacation, then as owner of this business – it will clearly live and die with you. This type of business would be good for someone very driven and passionate who is looking for a good financial return.

 

If the sellers do take vacation, but they only go for a day or two at a time, then this is likely a business that needs a fair degree of owner oversight and may even be a business that can’t function without you at the helm. This is great for those of you who love control, but probably not a good choice for those who want to be fairly hands-off.

 

If the sellers regularly go on vacation for a week or two without complaints about major issues while they are gone, then this business likely has a trustworthy and capable management structure that allows the owners this type of freedom. The downside to a great management staff? You get what you pay for, so in many cases this type of business sends the ownership home with less, but the trade off for time off may interest you.

 

When trying to decide on the right business, first decide what you want your life to look like, then ask the three vacation questions. They will tell you volumes about your life as the future owner of the business.


Are you a buyer wants to know more about how to decide what business would be right for you? Have you ever asked the vacation questions? Please leave us a comment or question here, we would love to hear from you.   

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com

 


Another Tool To Get You Top Dollar? E2Visa.Com



What would you do if I told you I can bring cash buyers that will pay top dollar for your business? At Infinity Business Brokers we have added another tool to get you a quicker sale at a better price.

 

If you are looking for a broker to list your business who will just put it on a few websites, wait for calls and then pressure you to sell it to make a sale; that is not my business.

 

We are a proactive firm and have built an incredibly strong network of professionals around the world who have entrusted us to find businesses for their clients.

 

We have huge databases of both national and international buyers, a network of immigration attorneys and we have built proprietary software to bring our businesses to a larger number of buyers.

 

How can we sell your business quicker and for a better price?

 

One of the fastest growing groups of buyers is those looking to acquire an E2 Visa to come to the U.S., and your business might be one that would qualify.

 

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Our latest acquisition and project?
We purchased the site E2Visa.com!

 

We are ramping up and starting to funnel a substantial amount of traffic to our businesses that qualify for the E2 Visa. Have you thought about selling? Now is definitely the time!

 

Don’t try and figure out whether or not your business will qualify for the E2 with the vague information that is available or ask brokers that are not entrenched in the Visa process. Contact my firm as we are one of the top Visa brokers in Florida and utilize our tips, tricks, network and knowledge to get your business approved for an E2 Visa buyer.

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com

 


How Business Owners Should Plan For The “Emergency” Retirement: The All-Important Exit Strategy



If you own your own business, you probably know that the business starts and ends with you. Inevitably, however, the day will come when you will no longer be at the helm. What will happen to your business when that day comes?

 

Retirement Ahead - Road Warning Sign

 

You have probably spent an enormous amount of time, energy and money building your business to the place it is today. It would seem like a foolish decision to simply lock the doors and walk away from that massive personal investment, but sadly this happens every day to businesses with no exit strategy in place.

 

Most business owners wouldn’t choose to lock the doors, but sometimes it comes out of necessity. There are a great many circumstances whereby a business owner would suddenly need to walk away – like the illness of a spouse or serious health issues of their own. If something comes along that will prevent you from keeping the current entrepreneurial pace you need to sustain your business, a pre-planned exit strategy will allow you to walk away with equity instead of nothing at all.

 

I don’t need an exit strategy, I have kids.”

 

We see this one more than we should. A very driven and focused entrepreneur has to move out of state to care for an ailing family member, so they hand over the reins to one of their children and expect that everything will be fine. Unless you have a child you has the same or even greater passion for your business than you do, and you have spent several years grooming that child for an eventual takeover – this situation rarely ends well. The child typically runs the business straight into the ground.

 

If you have kids, and they’re your only exit strategy, then you may need to reconsider. Talk with them frankly about your eventual departure and ask them if taking the reins is really something they want. If it isn’t, you could be supportive of their future endeavors by selling your business and using the proceeds to become a silent partner in a business they want to be in.

 

I don’t need an exit strategy, I’ll just sell when I need to.”

 

It takes, on average, 9 to 12 months to get a business from listing to closing. This time frame can be lengthened by having a business that is in no-where-near-ready-to-sell shape. To avoid these lengthy delays and speed up the process, you need to think about a buyer’s eyes long before you have any buyers coming through the door. What can you do to boost your numbers? Are your financial records in an organized and easy-to-understand format? Is the place in total disrepair or in serious need of a deep cleaning? If any of these questions resonate with you, now is the time to implement changes – not when an impending emergency is forcing you to sell. Talk to a business broker now, even if you don’t plan on selling in the foreseeable future, so you can know how to be ready when you need to be.

 

Life’s emergencies can’t be planned for, but you can plan ahead to be sure your business is appealing to buyers just in case you have a sudden need to get out. You can also ensure that the entrepreneurial legacy of your family continues, even if your children don’t want to be in the same business you are.

 

Are you a business owner who has no real emergency-exit strategy in place? Did many of the scenarios here resonate with you? Would you like to know more about how to get your business in ready-to-sell shape? Please feel free to leave us a comment or question!

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


The Effect of President Obama’s Executive Order on Foreign Entrepreneurs



By Guest Contributor Sabine Weyergraf – www.weyergrafimmigration.com

 

 

On November 20, 2014, the President announced a series of executive orders affecting the U.S. immigration system. Besides announcing options for undocumented immigrants, he also addressed other legal immigration issues. In particular, he announced welcomed changes for foreign investors, researchers and founders of start-up enterprises.

 

The announcement includes that foreign investors do not need to rely on an international treaty signed by the United States and their home country in order to qualify for an E-2 investor visa before they can operate a business in the United States. This change will allow investors and entrepreneurs to enter the U.S. on a special parole. The details of this are not yet known. However, this could open the door to investors from Brazil, Israel and Russia as E-2 Visas are currently not available to these countries.

 

Investors, entrepreneurs and researchers who are already in the country can also finally hope for a path to a green card. The President directed the Immigration Service to amend its guidelines to allow investors, entrepreneurs and researchers to use the already existing concept of the National Interest Waiver. This waiver ultimately leads to a permanent right to remain in the United States and, thus, a green card.

 

Currently, we do not know the details of this new guidance. We have to see if a minimum investment and a fixed number of employees will be required in order to qualify. However, this is a very important step in the right direction to attract foreign investors to the United States.

 

In addition to the above, the President’s proposed changes to the legal immigration system include reducing the waiting times for family and employment based green card applications, allowing employment based green card applications without requiring an available green card number and allowing spouses of H-1b holders to work.

 

All of the above will have a very positive impact on our economy by providing a larger work force to employers.

 

It is important to point out that none of the announcements to change the legal immigration system is in effect yet and it is not known exactly when any of the proposed changes will go into effect or what the specific details will be. But there is hope!

 

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Sabine Weyergraf is funding partner and New York licensed attorney practicing solely immigration law with
Weyergraf Immigration, PA in Sarasota, Florida.

Contact: 941-706-4102, sabine@weyergrafimmigration.com

This article is provided for general informational purposes and does not constitute legal advice.

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


Video: Better Sales With Positive Self-Talk



By Guest Contributor Ron Frost – www.PostitiveMomentumCoach.com

 

 

 

It’s amazing how our thoughts, beliefs and self-talk can affect our client interactions and ultimately our sales process. Confident successful salespeople already seem to display this positive self-talk, whereas those who consistently under achieve have a more dominate inner voice that is uttering words or self-doubt and self-defeat…even before they pick-up the phone or walk through a door to engage in conversation.

 

ron frost

Ron Frost
Motivational Speaker | Life Coach | Business Coach
www.PositiveMomentumCoach.com
239-265-4380

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


SALES TAX LIABILITY – What’s A Buyer Assuming?



By Guest Contributor Gregory A. May, Esq. – www.kieselandmay.com

Do you know of any business owners willing to subject themselves to a full audit by the Florida Department of Revenue? Or better yet, do you know of any buyers willing to accept the unknown risk of a seller’s prior sales tax liability?

 

Businessman with heavy taxes

 

The answer is a resounding “NO”; however prior to April 6, 2012 Florida Statutes provided that a buyer could assume, for up to three years, the past sales and use tax liabilities of a prior business owner unless an audit was conducted by the FDOR or a certified sales tax auditor. See §§213.758, 213.053, 213.10, 212.10 and 202.31, 2011 Florida Statutes.

 

This left business people in a precarious position as buyers were not willing to take the risk of assuming the seller’s tax liabilities, while sellers did not want to subject themselves to a full audit. Thankfully, in April 2012 Florida legislators created a solution, which in pertinent part, can be simplified as follows:

 

The purchasers of a business can avoid sales and use tax liabilities of a prior business if:

 

The buyer obtains a certificate of compliance from DOR showing that the seller (1) has not received notice of audit, (2) seller has filed all required tax returns and paid the tax due from those returns, and (3) there are no insiders in common between the buyers and sellers; OR

 

The DOR conducts an audit, at the buyer or seller’s request, and finds that the seller is not liable for any tax. See §213.758, Florida Statutes.

 

The bottom line is that buyers should be sure that the transaction is closed by a qualified closing attorney, and that a proper lien and tax search is conducted before closing.

 

Happy negotiating and good luck in your new business!

 

Gregory A. May, Esq.
Kiesel and May, Attorneys at Law
2121 McGregor Boulevard
Fort Myers, Florida 33901
T: (239) 334-1800
F: (239) 332-3927
www.kieselandmay.com

greg may
*This communication is for informational purposes only and shall not be deemed formal legal advice or the formation of an attorney-client relationship.

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com



Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907




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