The Field of Buyers: Stats for Business Buyers and Business Sellers



As a business buyer, it is important that you stand out from the crowd. Why? Up to 90% of prospective buyers who enter the business market never buy anything. If you consider this statistic from the perspective of a seller or business broker – 90% of the buyers who initially contact you will wind up a complete waste of your time.

 

Businessman select leader career of business conceptual

 

If you are serious about buying a business, you need to make yourself stand out as a part of that all-important 10% of buyers.

 

If you are a business seller, then finding the all-important 10% is crucial if you want to make the most of your time.

 

What do business buyers (the 10%) look like? In the most recent demographic study by BizBuySell, The Demographics of U.S. Small Business Buyers & Sellers, the pool of business buyers is diverse in terms of age and ethnicity – but the motivation to buy a business is the same for most.

 

A key finding of the BizBuySell study was that “younger buyers are more ethnically diverse than their elders: 49 percent of 18 to 29 year-old buyers identify as a minority, compared to 19 percent of buyers in their 50s or older.

 

buyeragebreakdown

image from BizBuySell, The Demographics of U.S. Small Business Buyers & Sellers

 

 

Another key finding was “the number one motivation for purchasing a small business is the chance to be your own boss, cited by 63 percent of all buyers.”

 

 

buyermotivate

image from BizBuySell, The Demographics of U.S. Small Business Buyers & Sellers

 

 

Now that we know what a typical business buyer looks like, how do we apply that information to the actual process of buying a business? We remember that it is far more important how a buyer behaves than what demographic group they fall into.

 

Serious buyers are willing to sign non-disclosure agreements without a fuss. They understand that they are receiving privileged and confidential information about someone’s business and they respect that confidentiality. Serious buyers take the information they receive and put together a fair offer that has justifiable terms. They don’t waste everyone’s time by throwing in a ridiculous low-ball. Serious buyers also know that the best way to find out what they need to know to make an informed decision is by asking great questions.

 

What if you are a buyer who doesn’t exactly fit the mold these statistics show? Just remember that the only thing that actually makes a business buyer a business buyer is buying a business. You make yourself stand out from the crowd by cooperating with the business transaction process, by asking questions and by making good offers.

 

What if you are a seller and the person looking to buy your business doesn’t look like you expected them to? If you are serious about selling then the only thing that should matter is the ability to write you a check. If the prospective buyer is willing to sign non-disclosure agreements, asks great questions and comes up with a fair and justifiable offer – then you’ve lucked out and found your business one of the 10%.

 

Are you a business buyer who would like to know more about the process of buying a business and standing out from the crowd? Are you a business seller who wants to know more about how to figure out if a buyer is serious? 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


Mid-Life Crisis? Don’t Buy A Corvette, Buy A Business



We all get burned out. Burned out at work. Burned out in relationships. Burned out on life in general. You feel like you need something new, something exciting to turn your life back towards happiness – but what new adventure can make this happen?

 

Happy man driving an hand drawn car on the wall concept

 

A hot new car? A brand new boat? Sure, these toys can be fun – but will they really bring you life-altering satisfaction? Probably not in the long run.

 

The happiest people are typically people who have followed their passions. They wake up every morning with the drive to do what they do because they love it – not because they have to. If you are truly dissatisfied with your career because deep down you always wanted to pursue another passion – maybe now is the time to make that change. Maybe making the jump to entrepreneurship is for you.

 

Entrepreneurs are a unique breed. They are willing to take risks. They have drive and passion. Best of all, they get to do what they love and don’t have to answer to anyone but themselves. Sounds good, doesn’t it?

 

The good news is you don’t have to make the jump to entrepreneurship by starting from scratch. Start-ups are notoriously tough, expensive and risky. You are developing an unproven product in an unproven location using unproven operating methods.

 

You can make your life easier by buying an existing business instead. With an existing business you remove the unproven part of the equation. You get to walk into a business with a proven product, location and operating procedures. You also get a previous owner who will train you before you take over the reins.

 

There are many, many businesses for sale from multiple industry sectors – so if you’ve ever considered following a passion in the small business world, there is likely a business out there that will fit well with your goals. Try a cursory search by clicking here, and then have a conversation with us about your goals for business ownership, the types of businesses you think you’d like and the capital you have to invest. You and your broker can then narrow the search to just those businesses that will be right for you.

 

We aren’t saying that an existing business is without risk or that an existing business won’t be a challenge. Owning a business, whether you started it or not, takes dedication. The hours might be long and the work might be hard – but all of your time and energy are spent working for yourself instead of for someone else.

 

Is small business ownership for you? It could be, and it could be the key to a happier life. The only way to find out is to start looking. Skip the new car and invest your money in a business that could bring you not only financial returns, but a better quality of life.

 

Would you like to know what types of businesses would fit with your goals? Do you want to know what your dream business would cost? 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

http://www.infinitybusinessbrokers.com


VIDEO: 4 Steps to Mastery



 

By Guest Contributor Ron Frost – www.PostitiveMomentumCoach.com

 

 

 

For more information visit:

www.positivemomentumcoach.com or www.ronaldfrost.com.

 

 

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


The Impact of Owner Values on Performance



By Guest Contributor Mark Welker – www.bpinsights.com

 

 

 

Some people believe that it is the events that control your life, but in reality it is your belief about the events that is the controlling factor. Beliefs are the acceptance of a perception being true and a conviction that this belief fits reality. Beliefs are the building blocks of values. They combine both a cognitive choice and an emotional response to certain triggering events that produce a consistent response. These beliefs when clustered together produce a value.

 

A value is a single belief concerning an ends or a means. Ends might be you being rich or the world at peace, while a means might include being honest or having ethical behavior. Values provide the motivation through which we achieve personal fulfillment or a feeling of self-worth. The motivation is released as focused behavior on a desired end. Much like the motivation to start a business, the motivations of each might be different. Some owners are concerned about the money, some want to achieve independence and some simply believe that they could take better care of the customer or make a better widget and the money will be secondary. The functional policies used in small businesses are sometimes very unique. The policies are generally controlled and affected by the owner in a very pragmatic way. Remember, these are the policies that provide the guidelines for decision-making and converting plans into actions.

 

The owner’s personal leadership style has a significant impact on the way the company addresses problems, because to a large degree, the style creates the norms and values used to control and operate the business. The degree to which the owner has developed self-awareness of their values and behaviors can be a determining factor in business success. Business owners must take the leadership role in mobilizing the people to adapt their work to changing realities. Business owners behave in certain ways and have different values. They do not always understand their core motivations or actions. Business owners should understand their strengths and weaknesses as well as their guiding values.

 

The culture of a company is the reflection of the owner’s values. The culture begins when the owner imposes their own values on the company. If the company is successful and the assumptions, based on owner values, prove useful – these values are taken for granted and used in decision-making. When the company or business encounters changes in the environment the assumptions are questioned. An extreme example of this might be the stated values of the Marine Corp., Honor, Courage, and Commitment. These are the core values that guide each Marine’s decision making, or said another way “who he/she acts like in the dark.” Yes, I understand that there are failures, for example, in a cover up, but in most situations they work. The powerful proof is that they have been able to take people from all walks of life and align them with the Marine Corps core values.

 

What are the controlling values when you are not there? This model could be used to develop guiding values for a company. An example of the values used in a company might be Ethics, Responsiveness, and Profitability for example. Owners have a responsibility to clarify the guiding values of the company, because that is the basis used to make the judgments and decisions that affect all stakeholders. (Many people have a need to be part of something bigger than they are).

 

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

 
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


The Impact of Owner Values on Performance



By Guest Contributor Mark Welker – www.bpinsights.com

 

Bar Graph Chart Data Information Inforgraphic Report Concept

 

Some people believe that it is the events that control your life, but in reality it is your belief about the events that is the controlling factor. Beliefs are the acceptance of a perception being true and a conviction that this belief fits reality. Beliefs are the building blocks of values. They combine both a cognitive choice and an emotional response to certain triggering events that produce a consistent response. These beliefs when clustered together produce a value.

 

A value is a single belief concerning an ends or a means. Ends might be you being rich or the world at peace, while a means might include being honest or having ethical behavior. Values provide the motivation through which we achieve personal fulfillment or a feeling of self-worth. The motivation is released as focused behavior on a desired end. Much like the motivation to start a business, the motivations of each might be different. Some owners are concerned about the money, some want to achieve independence and some simply believe that they could take better care of the customer or make a better widget and the money will be secondary. The functional policies used in small businesses are sometimes very unique. The policies are generally controlled and affected by the owner in a very pragmatic way. Remember, these are the policies that provide the guidelines for decision-making and converting plans into actions.

 

The owner’s personal leadership style has a significant impact on the way the company addresses problems, because to a large degree, the style creates the norms and values used to control and operate the business. The degree to which the owner has developed self-awareness of their values and behaviors can be a determining factor in business success. Business owners must take the leadership role in mobilizing the people to adapt their work to changing realities. Business owners behave in certain ways and have different values. They do not always understand their core motivations or actions. Business owners should understand their strengths and weaknesses as well as their guiding values.

 

The culture of a company is the reflection of the owner’s values. The culture begins when the owner imposes their own values on the company. If the company is successful and the assumptions, based on owner values, prove useful – these values are taken for granted and used in decision-making. When the company or business encounters changes in the environment the assumptions are questioned. An extreme example of this might be the stated values of the Marine Corp., Honor, Courage, and Commitment. These are the core values that guide each Marine’s decision making, or said another way “who he/she acts like in the dark.” Yes, I understand that there are failures, for example, in a cover up, but in most situations they work. The powerful proof is that they have been able to take people from all walks of life and align them with the Marine Corps core values.

 

What are the controlling values when you are not there? This model could be used to develop guiding values for a company. An example of the values used in a company might be Ethics, Responsiveness, and Profitability for example. Owners have a responsibility to clarify the guiding values of the company, because that is the basis used to make the judgments and decisions that affect all stakeholders. (Many people have a need to be part of something bigger than they are).

 

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

 

 

markBusiness 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


Overcoming a Sales Slump



By Guest Contributor Jessica Trippler – www.bpinsights.com

 

Manager (businessman, coach, leadership) plan to increase company performance.

 

Most small businesses rely on sales people to sell a particular product. I like to say, “Sales people keep businesses in business.”

 

Did you know;

  • 20% of all salespeople make 80% of all sales, which means 80% of a sales force fights over the remaining 20% of business (Greenberg & Greenberg, 1983)
  • 55% of salespeople have no ability to sell, and 25% have sales ability but are selling the wrong product or service (Greenberg and Greenberg, 1983)

 

Finding the right people to keep you in business and keep you profitable can be difficult. During the hiring process business owners may ask themselves;

  • Can I trust this person to represent my company and product?
  • Can they really sell?
  • Do they understand the sales process?

 

When a business finally finds someone that can sell a product effectively, and lots of it, everything is great. The sales person is “on a roll” and it seems like nothing can stop them. Then a few months or years go by, and suddenly, that same person is not bringing in the numbers they used to. It is a huge concern when a small business or manager comes to the realization that their top performer is in what I like to call, a “Sales Slump.”

 

In order to understand exactly what happens during a “Sales Slump” and how to overcome it, we first have to understand what characteristics a top sales performer possesses. What types of behaviors and values are needed to be a top sales person?

 

A recent study by the Harvard Business School found that highly successful salespeople do not take “no” or objection personally; they take 100 percent responsibility for the results they deliver; possess empathy; have above average ambition, willpower and determination; are intensely goal-oriented; and can easily approach strangers (BASIS International, 2002). I believe sales people are often times high energy and have an uncanny ability to influence others to their point of view. Target Training International’s study into motivators and values confirm the importance of the utilitarian value. Utilitarianism indicates that top sales performers are motivated by practical results, rewards and a return on investment.

 

What causes the “Sales Slump” and how can we overcome it? Sales professionals would claim that customers are not willing to buy because of timing, the client was not serious, the economy is poor or the leads or opportunities that have been given to them are lacking. Or they may place blame on, my favorite objection, pricing. I think it is important for sales staff to learn how to become more self-aware. The better you understand yourself, the better you will understand others. Ultimately, all the strengths that make up a top performer can often times become their greatest weaknesses. Over time, these behaviors and values become overextended and cause stress. A “Sales Slump” can simply be a case of losing sight of the behavior it took in order to be successful. Just recognizing how a person’s behavior may have changed, may just be enough to overcome the slump. Overcoming a “Sales Slump” is truly about educating yourself or your staff and learning to be more self-aware.

 

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

 

 

Jessica TripplerBusiness 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


Why Business Buyers Can’t Ignore Red Tape



Tired businessman working with papers in office

 

Buying a business involves a lot of paperwork and red tape – what can sometimes seem like mountains of the stuff. When mired in this sea of required documentation and applications, there can be times when you are tempted to skip a few steps and just bet on not getting caught.

 

This is a HUGE mistake, for a number of reasons.

 

Reason one? It could be considered fraud.

If you are filling out those mountains of applications for financing, for example, fudging the paperwork could ultimately land you in very hot water. Lying about even something small will almost assuredly come up when the lending institution, be it a bank or the Small Business Administration, goes over everything with a fine tooth comb before they write you a check. It would be very bad for their own business if they were in the habit of overlooking items that would otherwise prevent a loan from happening. Cover yourself from fraud charges down the line and be absolutely honest.

 

Reason two? It could mean your licenses get revoked.

If you are buying a business that requires some type of licencing, and most do, your applications for those licenses will seem never-ending. Skipping necessary steps, fudging a bit in your answers, procrastinating and missing deadlines or just not applying for the license at all will likely mean you have to close the business doors when you get caught. Licencing agencies get paid to ensure everyone is following the rules, and they have the right to revoke your licenses and close your business if they catch you trying to bend or break those rules. Do yourself and your investment a favor and don’t skimp on your licencing requirements.

 

Reason three? Fines, fines, fines.

Even if you manage to escape fraud charges or license revocations, if you get caught or miss an important deadline you will absolutely be slapped with what can quickly add up to debilitating fines. Again, the bankers and agencies you are dealing with have punishments like fines in place to ensure everyone follows the rules. Don’t spend exorbitant amounts of money unnecessarily. Do the paperwork right the first time.

 

We aren’t trying to scare you, we are trying to give you an honest look at what can happen when you think you can bend or break the rules.

 

The paperwork might seem never-ending, but it’s very manageable if you stay on top of it – and every operating business out there got it done. There is also help available if you feel overwhelmed. Ask your business broker for help, or you can hire someone who specializes in licenses for businesses. Do it right so you won’t get caught.

 

Do you have questions about the licensing requirements for the types of businesses you are interested in? Would you like to know more about the services available to help you? Ask us! Please leave questions or comments here and we would be happy to help.

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com

 

 

 


How Many Stars? The Role Of Online Reviews



By Guest Contributor Krystal Burroughs – www.reviewdriver.com

 

“80% of consumers will choose a 4 star business, but only 14% will choose a 3 star business” (Pepperdine School of Business)

 

reviewmanagement_2

 

Online reviews play a major roll in your company being found and chosen. Do you know what your customers are saying about your business?

 

Review Driver is an automated software solution that will help you gather customer feedback and increase positive online reviews. With as little as 15 minutes a week you can gain valuable feedback from your customer’s experience and easily gain positive online reviews on public review sites like Google, Yelp, Facebook and Angie’s List. Taking ownership of your review profiles, monitoring the sites that matter most to your business and building positive online reviews will strengthen your SEO, improve your online image and attract new customers.

 

Who better to explain than one of our clients, Greg McAfee, President of McAfee Heating & Air in Dayton, Ohio:

 

More and more people today are turning to social media and online services to find out more about companies prior to doing business with them.

 

Because of this, in order for us to stay ahead of the competition, we wanted to encourage our customers to leave reviews. Review Driver provided us a way to easily reach out to our customers on a daily basis and request they leave honest feedback about their most recent service with our company. We have benefited from Review Driver in the following ways:

1.      We can request that any positive reviews be shared publicly; thus increasing the number of positive reviews seen on line.
2.      We are given an opportunity to respond to any negative reviews, which improves our overall customer satisfaction.
3.      Our customers are provided an easy opportunity to “vent”, which many times prevents them from taking their complaint to another online public forum.

 

I highly recommend Review Driver to help manage and drive public online reviews

 

Gone are the days of feeling too small or powerless to control your online reputation. Take control of your customer surveys and online reviews, call today.

 

 

 

linkedinreviewdriverFINAL

Krystal F. Burroughs
krystal@reviewdriver.com
Director of Client Happiness
(727) 218-9218

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


What the 4th Quarter of 2015 Means for Business Sellers in 2016



If you are a business owner who is watching the market and looking for the right moment to sell, then the Q4 IBBA report for 2015 has some good news for you.

 

Business ideas sketch on paper change to success

 

IBBA (the International Business Brokers Association) released the Q4 Market Pulse Report in conjunction with M&A Source and the Pepperdine Private Capital Market Project. The report showed a strong market for “Main Street” businesses (those with values less than $2 million). These Main Street businesses sold for 91% of their asking price in the final quarter.

 

There are also more buyers entering the market, as evidenced by a record year at the Small Business Administration (SBA). SBA distributed around $23.6 billion in 2015.

 

Most of the buyers of small business listed for less than $500,000 were first-time buyers, so for those contemplating selling their small business – there is a new crop of business buyers out there looking for their entrepreneurial chance. Perhaps the time to make your business part of their future as entrepreneurs is now.

 

Moreover, market activity in the last quarter of 2015 was lead by those businesses in the service industry (for the Main Street sector), so those with a service-related business should consider listing their business now while their industry leads the charts.

 

The very active market in 2015 should continue in 2016, as many in the business market are projecting. This upward trend, however, can’t continue forever. If you are considering selling your small business, selling now while the market is healthy may be a far smarter bet than waiting to see what the future of the market might hold.

 

Have you thought about selling your business, but were waiting for the right time? Would you like to know what businesses in your industry are currently selling for? 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

http://www.infinitybusinessbrokers.com


Dear Millennials – Don’t Miss Out On The American Dream



Millennials sign in a conceptual image

 

Once upon a time, it was the American dream to own your own business. Kids grew up in world where the example of entrepreneurial blood, sweat and tears was the only path to a better future for yourself and for your family.

 

Fast forward to today. Today’s kids get roped into enormous amounts of student loan debt because the new path to the American dream is a higher education. An expensive higher education. An expensive higher education that doesn’t necessarily mean a job on the other end. Que the trend of college grads moving back into mom and dad’s place.

 

This push for higher education at the expense of all other walks of life hasn’t made anyone any happier or any richer than the generation before. In fact, it’s put a large part of the millennial generation in a financial hole they might never come out of.

 

What has this push for higher education done to the entrepreneurial spirit? It’s choking the life out of it. If you come out of four, six or eight years of higher education you are probably in no financial position to take on the financial risk of owning your own business. You’ve also spent the last handful of years outside of the workforce. You may have learned a lot, but the learning wasn’t of the practical nature best suited for business ownership.

 

We’re not saying that higher education is a bad thing. What we are saying is it doesn’t have to be everyone’s path. If you see yourself 10, 20 years down the road as the owner of your own business – there’s no need to wait.

 

You don’t need a lofty or expensive degree to be a great entrepreneur. You need drive and passion.

 

Instead of asking your folks to send you to college, maybe the better path would be to invest in a business. Buying an existing business can be less risky than starting from scratch (read Create A Startup Or Buy Existing: Why Buying An Existing Business Is Right For You for more on why buying an existing business is better) and it allows you to take the reins from a seller who will be able to train you.

 

If your parents aren’t thrilled with the idea of you going-it alone, then maybe a family partnership is in the cards. There are also ways for a millennial entrepreneur to fund a business purchase through the Small Business Administration (SBA). Ask a business broker about what opportunities would be available. You might be surprised with what’s possible!

 

If entrepreneurship is for you, there’s no need to saddle yourself with student debt to get there. Talk to a business broker today about your goals for business ownership and the capital you have available – and they will be able to help you decide on the best entrepreneurial path for you.

 

Do you have more questions about how to get funding for the purchase of a business? Would you like to know what a family partnership might look like? Ask us! 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



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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