The Business Buyer’s Must-Have Resources



If you are considering taking the plunge into entrepreneurship by buying a business, you should know that the best way to be a successful business buyer is by using all of the resources available to you – namely the experts who can help you along your path.

 

Hand pointing to businessman icon-HR, recruitment and chosen concept.

 

Why do I need help? Aren’t advisors expensive? Wouldn’t I be saving a ton of money by buying a business on my own?

 

You absolutely, positively need to have the right help when making a purchase as large and life-encompassing as buying a business. That help needs to be experienced in their field and have the knowledge to properly guide you through the business transaction process.

 

Going it alone may seem like a good idea because there aren’t any fees or commissions to pay, but you will more than likely end up in hot water if you don’t know what you are doing – and that can mean way more money spent cleaning up the mess on the back end than you ever would have spent hiring the right help.

 

What kind of hot water could you end up in? You could be shut down if you don’t handle licensing and permitting issues correctly, you could end up signing a purchase contract that doesn’t cover what you thought it did, you could end up discovering surprise debts the business owes after you’ve signed on the dotted line and that business is now your problem alone – just to name a few. In addition, most businesses you might buy do not come with the corresponding real estate, so a commercial lease will need to be negotiated – and commercial property managers are notorious for being difficult, more so if they feel like you don’t know what you are doing.

 

What should you do instead? Employ the right help, they will be worth their weight in gold.

 

What help should I hire

 

A Business Broker

 

This person will be the main advisor you use for the purchase of a business. They will assist you with your search, help you obtain the information needed for due diligence, help you make sense of the numbers, negotiate with the sellers for the best price, negotiate and play middle-man with the landlords and property managers, help you get the appropriate licenses and permits, help you transfer utilities and vendor contracts – the list goes on. A good, experienced business broker has already seen everything that could possibly go wrong in a business transaction, so they can help you avoid the pitfalls and come out with the right business for you.

 

A Business Transaction Attorney

 

Notice we didn’t just say “attorney”. A family law attorney will do you no good in a business transaction in the same way a plastic surgeon isn’t going to be of much help if you have back pain. An attorney who specializes in business transactions will be best equipped to help you navigate your purchase contract and help you on closing day.

 

A Business Transaction CPA

 

Again, we didn’t say just “CPA”. Not all accountants are familiar with the very tangled web of numbers one finds in a small business. The one or two numbers on the bottom of a tax return are not going to tell you everything you need to know about how much money the business makes. For example, has depreciation been taken into account, have the personal benefits of vehicles and cell phones been added back, has the value of the inventory been accounted for? Having a CPA who has business transaction experience will be your best bet for understanding the numbers.

 

The moral of the story? Your best bet for the successful purchase of the best business for you is to have the right help along the way.

 

Don’t believe us? Leave questions, comments or concerns here (or contact us directly) and we will be happy to talk to you more.

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com

 


Pipe Dreams and Bad Advice: Why Your Small Business Isn’t Worth A Billion



You’ve decided to sell your business, so you start asking the people around you what they think it’s worth. Your father-in-law, your CPA and your neighbor will probably give you vastly different numbers – and you’ve got a rough calculation in your head of how much money it’s cost you over the years to build the business into what it is today.

 

Money

 

So who’s right? Probably no one. The hard truth of the business market is your business is only worth what someone is willing to pay for it.

 

Many, many sellers have a hard time with this concept – and unfortunately there are business brokers out there who will tell a potential client anything they want to hear in order to get the listing – meaning with their bad advice you could list your small business for an outrageous price that you will never, ever get.

 

The price you put on your business from day one is very important. A business that is priced fair will tell buyers that you are serious about selling and that you aren’t totally insane. Listing your business for something outrageous more than likely will mean that you will enter listing-purgatory and your business won’t ever sell.

 

Your business should not be listed for a price that is based on how much money you’ve invested over the years, how much all of the equipment and furnishings cost you when they were new (8 years ago) or how much you think you’re going to need in order to retire with the quality of life you currently have.

 

Your listing price will contain a lot of moving parts, but primarily it should be based on cash flow and what comparable businesses have actually sold for.

 

There are some occasions where a standardized multiple is used, but every small business is a unique case, and should be priced accordingly.

 

What should you do? Have a serious conversation with your business broker about where you would like to set the listing price and then listen to what they have to say. If they think you’re way above where you need to be, you should take their advice if you are really serious about selling.

 

Remember too that your listing price shouldn’t be your absolute rock-bottom number, as there will always be some negotiation between you and any buyers who are interested.

 

Are you thinking about selling and are curious about what the owners of similar businesses have recently received? Would you like to know our thoughts on the current state of the market for your industry? Ask us! Please feel free to leave 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

http://www.infinitybusinessbrokers.com

 


Dear Business Seller – Be Ready To Miss It



Dollarphotoclub_85439026 (1)

 

You may be completely burned out and ready to sell your business today, but the one part of the selling process many business owners aren’t ready for is how they feel the moment they walk away from the closing table.

 

Sure, you will likely feel relief that the business transaction is over and excited about what the money you’ll get from selling your business might mean in terms of future endeavors – but you are also going to miss it.

 

I’m selling because I don’t want to be the owner of this business anymore, I’m over it. What could I possibly miss?

 

When you are the owner of a small business, that business becomes a huge part of your life and a part of your identity. When you suddenly aren’t tied to that business it will feel like you’ve lost a part of yourself. Your day-to-day routines will change, your role as owner and your status as self-employed will end.

 

Why are we telling you this?

 

I’m going to be unemployed tomorrow” and “what do I do now?” are often stronger emotional notions than many owners expect, and can cause a very serious case of cold-feet on closing day.

 

Don’t derail your deal by freaking out at the last minute.

 

Instead, be mentally prepared to feel a sense of loss and focus instead on what your future might hold.

 

Perhaps a long vacation is in your immediate plans, a well-deserved and much-needed bit of time off.

 

Perhaps you think you might like to buy a different business, maybe in a different industry so you can give yourself a fresh start. Have you done a cursory search to see what’s out there? You can start by searching here, then contact your business broker to discuss what investment options might be available to you after you sell.

 

By preparing yourself and by having a future plan to focus on you will have a better experience after the closing table.

 

Are you thinking about selling but are concerned about how you will feel after the sale? Do you have questions about other businesses that might be available as a next venture? 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

http://www.infinitybusinessbrokers.com


The Most Important Thing: To Figure Out What Is Most Important



By Guest Contributor Mark Welker – www.bpinsights.com

 

I have a different perspective about business success. First, it is driven by what the individual business owner or founder wants to accomplish. There is a global perspective that “it is all about making money.”

 

The research seems to focus on this perspective. I am not sure based on my perspective that this is the only reason. I would speculate that independence as a reason is as valid. Why, because I have seen business owners that make decisions away from money and towards pursuing other values.

 

This is important because it impacts the actions that an owner is willing to initiate. The actions are closely linked to their motivations for taking the risk to be in business the first place. My experience indicates that the business practices, while important, are available to everyone. I mean that what to do when a problem or change presents itself is available to everyone; whether it be on the internet, the SBA or in numerous business books available to every owner.

 

It is important to understand the owner’s vision of success, whatever the color. I think they become confused due to the basically materialistic view caused by societal pressures, which causes lack of clarity of purpose. It is quite possible to have a good business that satisfies the owner’s values and the needs of customers while making a good living.

 

What most owners are looking for is fulfillment, whatever the definition. We should understand the goal and not assume it is the almighty dollar. This is important to understand because the potential solutions are very different.

 

The circular argument is this, somebody once said, “the most important thing is to decide what is most important.” Can you clarify your goals, independence or money? Independence does not mean lack of money, it means there is another definition and this business might look very different. It could be a good feeling about how you treat customers or a passionate interest in the subject. The point is that whatever it is that fulfills you, since you have taken the risk, should accomplish your dream.

 

The reasons I have come to this perspective are twofold. First, I have suggested many strategies that, if implemented, would prove fruitful for founders. The interesting part is that some owners would implement the suggestions and others would not. The implementation was not a question of money or about execution. I came to understand that it was about what the owner actually wanted the business to add to their life.

 

Second, business owners are very complex people and the businesses they create are also complex no matter how simple the business. It is important for the owner to clarify exactly what they want the business to provide in their life so the business is designed to do that. The best example of that is when a client said to me, “I want to make $60,000 a year and be home for cookies and milk.”

 

Please request a complimentary DISC and Motivators Assessment at
http://www.businessperformanceinsights.com/contact-1.html

 

Business Perfomance Insights

 

Business Performance Insights
4575 Via Royale
Suite 218
Ft. Myers, FL 33919
www.bpinsights.com
jessica@bpinsights.com
201.563.2243
mark@bpinsights.com
239.872.4555

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


What A Seattle Seahawk Can Teach Business Sellers – You Really Need A Business Broker



strategy session

 

http://www.sbnation.com/nfl/2016/3/2/11150116/kam-chancellor-gym-police-boot-camp

 

Seattle Seahawk Kam Chancellor was in the market for a gym, so he popped by a local gym to have a look. His visit spooked the gym’s employees so much they called the police, leading to a media hoopla.

 

If you are considering selling your business, then you should know that confidentiality is one of the major keys to a successful sale. Why? There is a horrible perception held by most that a business for sale is a business on the brink of failure – so disclosure of your for-sale status can cause your employees to panic and quit, can cause your customers to find a more “stable” business with which to spend their money and can even cause some of your vendors to jump ship.

 

While this notion of failure and the knee-jerk reactions it can cause might seem ridiculous to a business seller (it is completely reasonable for a great business to be put up for sale, right?), it is a reality of the business sales process that confidentiality is key.

 

So we return to the Seattle Seahawks. You wouldn’t go into a professional football game without a coach. You wouldn’t face a lawsuit without a lawyer. Why then, would you as a small business owner try to sell your business on your own? Sellers who go it alone are almost assured of a confidentiality breach because they do not have the tools or the experience to keep the status of their business under wraps.

 

Who does? A business broker. A good business broker has the tools to confidentially market your business to a pool of buyers who have been vetted to be assured they are not someone who would breach confidentiality.

 

They do this by requiring all potential buyers sign the appropriate non-disclosure agreements, by ensuring those who are looking at the business are not on your do-not-disclose list (think employees, competitors, etc.) and by limiting publicly viewed listings to information that makes it impossible for a buyer to determine what and where the business is (so no pictures of the signage, no posting of the address, no specific details that would allow someone to figure out the identity of the business).

 

By keeping your for-sale status under wraps, your business broker works to keep your business in one piece (will all of it’s employees, customers and vendors) all the way to the closing table.

 

The message here? Don’t end up with spooked employees and an NFL player on your doorstep – hire an experienced and qualified business broker to give your business sale the best chance of success.

 

Are you considering selling your business and have questions about the process? Would you like to know more about how we keep confidentiality in place? Please 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

http://www.infinitybusinessbrokers.com


Video Link: 2 Tips on Making the Switch to Entrepreneurship



Display window in a store or ice cream parlour of assorted ice cream flavours for sale as summer takeaways displayed in metal trays with scoops

 

In a video from Inc. (see link below), Amy Simmons, the founder of Amy’s Ice Cream, tells future entrepreneurs that there are two things she would offer as advice to future business owners.

 

The first piece of advice? You need to have enough money. We agree, but what qualifies as “enough money” will very much depend on your goals for business ownership. There are businesses that will run you in the millions, but there are also many affordable small business options that could get you where you want to go with business ownership. Talk to a business broker about the capital you have available to invest in a business and about what you hope to achieve through business ownership – and they will be able to guide you to business options that would suit your goals.

 

Her second piece of advice? Just do it! We couldn’t agree more! Buying a business is a huge step, but the benefits of making the switch from employee to entrepreneur can make that step the best one you’ve ever made.

 

The life of an entrepreneur has many, many benefits. First and foremost, all of the work you do is for yourself. As the owner of a business all of your effort and personal investment comes right back to you instead of to someone else. If the business grows and makes more money because of your new marketing strategies – you are the beneficiary of your hard work.

 

The next major benefit of entrepreneurship? You make your own schedule. You work as much or as little as you wish, and you ultimately decide what your hours will be. This does not mean, however, that you can work part-time and make the same money you did at a regular 9 to 5 job. Business owners put in long hours – the difference is the flexibility of those hours is determined by you as the owner. You won’t have to ask your boss if you can have a night off to attend your child’s recital, you can just go.

 

Possibly the biggest benefit of small business ownership is the ability to do something that you love everyday. Small business owners can turn their passion into a way to make money – and the wake up every morning excited about the potential of the day ahead. The direction of their work day is determined by the direction they want their business to take, not the whims of a boss or corporation. That ability to control your own destiny can be incredibly fulfilling.

 

The points this video makes – having enough capital and taking the plunge – are great advice for anyone who is considering making the jump to business ownership. If you are curious about the types of businesses currently available, use our business search page to take a look at some possible options, then contact us to discuss what your available funds and business ownership goals could mean for your future as an entrepreneur!

 

Watch the video 2 Tips on Making the Switch to Entrepreneurship: Amy Simmons, founder of Amy’s Ice Cream, talks about how she made the switch from medical school to the ice cream business here:

http://www.inc.com/amy-simmons/2-tips-on-making-the-switch-to-entrepreneurship.html

 

Are you kicking around the idea of buying a business but have questions about what kind of business you could afford? Do you want to know what your options would be in the industries that interest you? Ask us! Leave comments or questions 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

http://www.infinitybusinessbrokers.com


Why Business Sellers Need To Run Their Business Like They’re Going To Live Forever And Sell Tomorrow



It is an unpleasant reality that some of the business sellers we meet are coming to the business market because they have been forced to sell, and sell now. When circumstances force a sale – like a sudden illness, a family emergency or a personal issue like a divorce – the consequences of being unprepared for that sale can be serious. Many desperate sellers are forced to take low offers or forced to list their business for less than it would be worth had they had more time. In the worst of cases, the sudden need to discontinue as owner means the doors of the business must be closed for good.

 

Any good business plan comes equipped with an exit strategy, but many small business owners get so swept up in the seemingly endless responsibility of running a business that they leave this crucial part of planning until it is far too late.

 

Young businessman in hat catching business strategy plan on rope

 

How do you stay ahead of the game and prevent taking a loss or closing the doors if life suddenly forces you to sell?

 

Run your business like you are going to live forever and you need to sell tomorrow.

 

Why do I need to run my business like I’m going to live forever? Business owners who have one foot out the door invariably let important aspects of their businesses slide, and these neglected elements will always impact the bottom line. If you always act like you will live forever, then the future and longevity of your business will always remain your goals.

 

Why do I need to run it like I’m going to sell tomorrow? If life does get in the way of your best-laid plans and you have to sell suddenly – having your business ready to go (staying on top of general maintenance, keeping well organized financial records, etc.) will allow you to get the best possible return on your investment.

 

Are you a business owner who has never considered an exit strategy? Do you have questions about how the process of selling your business works? Contact us or leave any questions/comments 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

 


Don’t Get Kam Chancellor’d – Why Business Buyers Can’t “Just Go See” A Business



American Football Player Catching a touchdown Pass

 

http://www.sbnation.com/nfl/2016/3/2/11150116/kam-chancellor-gym-police-boot-camp

 

Seattle Seahawk Kam Chancellor wanted to buy a gym, so he happened by a local gym on his own to have a look – and the day ended with the police being called.

 

If you are in the market to buy a business, you can’t treat the process the same way you would if you were going to buy a car or a house.

 

Operating businesses can’t let anyone know they are for sale. A “for sale” sign tells employees, customers and the competition that they are teetering on the brink of bankruptcy and are moments away from closing the doors for good. Why would anyone sell a perfectly good business, right?

 

There are a lot of reasons. Retirement, a sudden family illness or even a strategic sale by a business investor. In almost all cases a business for sale can be a good investment for the right buyer – not the disaster the perception of a “for sale” sign gives. That incorrect and negative assumption can devastate the reputation of a business if the word gets out, so the process of selling businesses was designed to keep a for-sale status under wraps.

 

What does this mean for a prospective business buyer? It means that you can’t just go see a business. Really. You just can’t. And to be honest, randomly “seeing” businesses is a colossal waste of your time.

 

Why is it a waste of my time? Shouldn’t I see businesses I’m thinking about buying? Absolutely, you should, but what new buyers don’t understand about buying a business is you aren’t really buying a location – you are buying cash flow. Looking at the numbers, discussions with the sellers and considering your options for immediate growth are far more important than what color the walls are.

 

Instead of randomly calling and asking for addresses (which you likely won’t get anyway without signing the appropriate non-disclosure agreements and providing proof of funds), the smarter move is to have a serious discussion with an experienced and qualified business broker about what your goals for business ownership are and the funds you have available to invest. With that information a good broker will be able to find you multiple listings to consider. You can research those listings, have conference calls with the sellers and go over the numbers in order to weed out businesses that aren’t going to meet your needs.

 

Once you have narrowed your search to just a few businesses – then and only then is it a useful exercise to go and see the physical location. These visits have many, many moving parts and always take some time to put together. The schedules of you, your broker, the seller, the seller’s broker and the business itself (you can’t go in during operating hours when employees and customers are present) will have to jive in order to make a walk-thru happen. This is why a last-minute call to go see a business will be impossible.

 

Don’t get Kam Chancellor’d. Use the business buying process to your advantage so you don’t waste any time finding the right business for you.

 

Do you have questions about the process to buy a business? Would you like to know what type of business would be right for you? 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

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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