Spend Money To Make Money? Big Mistakes New Business Owners Make



The old adage you have to spend money to make money is absolutely true. Business owners have to invest in things like marketing and improvements in order to keep a business thriving and growing.

 

There is a far more important adage, however, that a new business owner needs to abide by. That adage? If it isn’t broken, don’t fix it.

 

 

What do we mean by that?

 

When you envisioned your life as a business owner, you likely saw your business as something uniquely your own. Your own designs, ideas, concepts.

 

If you’ve decided to take the entrepreneurial plunge by buying an existing business, you have made a very smart choice because you don’t have to start from the ground up – you get a fully operational business with a proven location on day one. This removes the issues a start-up business would bring – like finding a location, build-outs, buying equipment and furnishings, getting permits, hiring a staff, creating operating procedures, painting, designing a sign – the list is enormous.

 

Getting your hands on an existing business means that while all of that initial work is finished, all of those initial decisions have been made by someone else – the previous owner. This can cause a business buyer to have issues with the aesthetic and/or operational aspects of their new business because it doesn’t exactly match the business they envisioned.

 

As a new business owner, you need to consider this part of buying a business. There will be some things that you don’t like about your new business and some things that you personally would have done differently.

 

Maybe you hate the paint colors. Maybe you think the ordering system is wildly archaic. Maybe you think the layout needs to be completely changed.

 

If you are having these thoughts about your new business – STOP. You bought an existing, operating business. Every business is unique and is inherently very complicated, so it would be very difficult to ascertain what parts of the business work and what parts don’t on day one.

 

You might hate the paint colors, but maybe the rustic charm of the decor is what keeps the regulars coming back. You might not like the ordering system, but it is based on the vendors your business needs to survive. You might hate the layout, but it is the layout that creates the efficiency that keeps the business alive.

 

New business owners who are hung up on their own vision of what their business should be walk in on day one and immediately embark on a very expensive major renovation, rewrite the operating procedures and change all of the vendors and staff without taking the time to figure out why the business is successful. This always ends in complete disaster.

 

We aren’t saying you can’t change things. What we are saying is patience is the name of the game. Give yourself a few months to decide what works and what doesn’t, why the previous owner did things the way they did. Once you really understand the business as a whole, you can make small changes to slowly guide the business toward your vision. Don’t fix what isn’t broken!

 

Are you thinking about buying a business, but haven’t seen anything that matches the vision you have for business ownership? Would you like to know more about how buying a business can be a better choice than starting from scratch? Please leave us any 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


The Dream Bar – Don’t Buy A Business You Know Nothing About



 

We all have that daydream. You sit at your desk at the accounting firm where you’ve worked, well, it feels like forever – and your mind begins to wander. In your daydream you own your own business, like a famous downtown bar. You, the charming owner – are a friend to every regular. You spend your evenings sitting in a bar stool with your name on it, casually having a beer and mulling over the receipts for the day.

 

Everyone has this daydream. It’s a pleasant break from the drudgery of the day. The problem with this daydream, however, is it can quickly become a nightmare if you try to make it a reality. We talk people out of this scenario all the time, and for good reason.

 

What? Aren’t you someone who sells businesses? Why would you try to talk me out of my dream bar?

 

For starters, owning your own business and owning a business in the restaurant industry are not for the faint of heart. Entrepreneurship is hard work. Successful bar owners aren’t having a beer and casually going over receipts. They are behind the scenes grinding out new marketing strategies, dealing with vendors, filling in behind the bar when it gets busy, making schedules, training new staff, tweaking the menu, fixing broken equipment – the list goes on and on.

 

Secondly, if all of your work experience is at an accounting firm and you’ve never spent a single day of your working life in the restaurant industryyou have no business buying a bar. Business ownership is tough, and that road becomes impossibly tougher when you compound the problems you will face as a new owner by adding the learning of a whole new industry to the mix. Think of all of those reality shows where they go into failing restaurants and bars and try to turn things around. In almost every episode where the business is in catastrophic free-fall, the major problem is the owners had zero restaurant experience when they took over.

 

We don’t want to talk you out of your dream, we just want you to think of it in a realistic light. What is your dream really about? It’s not really about the bar itself. It’s about the freedom to be your own boss. It’s about having a personal connection with your clients. It’s about doing something different than you are right now. Guess what? You can have all of those things without buying a bar. As a matter of fact, owning a bar would be the exact opposite of those things if you are walking into bar without experience.

 

There are a myriad of businesses for sale, and many will meet those all-important goals for business ownership while also being in industries where you have experience. Talk to us today about the types of businesses we would recommend for someone with your resume and goals. You might be pleasantly surprised what’s out there that’s just right for you.

 

If, by the way, you do have loads of restaurant and bar industry experience – by all means, buy a bar. Finding the right business instead of the wrong business is all about matching goals and experience.

 

Are you curious about what type of business would meet your goals and match your experience? Do you have more questions about the business buying process? Please feel free to leave us comments and questions, 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


Dragging Your Feet? How Business Buyers Can Cost Themselves Money



Buying a business is a huge decision. You are deciding on a whole new life and are about to write a very big check. We get that.

 

A minor case of cold feet is absolutely to be expected with a decision this big, but the mistake many business buyers make is they allow their cold feet to become a major problem. They let their hesitation overshadow their rational side – and they slow the buying process to a near halt. This will always, always cost you money.

 

We aren’t saying that you should immediately buy the very first business you look at. You should absolutely take a reasonable amount of time to make decisions about the business you ultimately buy.

 

What we are saying is you shouldn’t procrastinate indefinitely. If you’ve found a good business – put in an offer. If you don’t, you risk several scenarios that will mean more money out of your pocket.

 

The sellers could decide to raise the price.

Many new buyers think that this move is unfair, but a seller is completely within their rights to raise the price of their business if no written offers are currently on the table. If the business is experiencing a period of tremendous growth or if the sellers are seeing a lot of interest in their business and are hoping to cash in on the popularity of their listing – they might decide to get more bang for their buck and jack up the price. If you haven’t put in an offer, your only choice will be to pay the new price or move on.

 

You risk taking over the business out of season.

If the business you are considering is in a seasonal market where businesses do well for part of the year and then have to survive the lean off-season (common in areas where tourism is big) dragging your feet could mean you get handed the keys right as the slow season starts. This could force you to eat up your working capital surviving until the busy season starts again instead of using that working capital to grow the business during the period of the year when customers are flocking in your door. Help yourself by using the timing of the sale to your favor. Don’t procrastinate yourself into a rough six months.

 

Another buyer might buy the business out from under you.

Time is money, so if you are constantly losing out on good businesses because you are waiting too long and other buyers are pulling the trigger before you do – you will be perpetually stuck in the search phase of buying a business. It takes a fair amount of research time, search time, conversations, meetings, conference calls and the like to narrow down your business choices. Don’t waste all of that time (and therefore money) by prolonging your decision and losing out to a more decisive buyer.

 

You have every right to be nervous about your decision to buy a business, but the most successful small business owners are those who can be rational and decisive when it counts. Do yourself a favor and don’t wait.

 

Are you thinking about buying a business but are nervous about taking the plunge? Would you like to know more about the process to buy a business? 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


Business Sellers – You Don’t Have The Best Business Ever



 

 

We all do it. We all think our kids are the smartest or the cutest. We all think we’re the best drivers on the road. An arrogantly positive view of yourself and your life are just part of human nature.

 

This arrogance becomes a big problem, however, when the time comes to sell your business. Why? Whether you realize it or not – you don’t have the best business ever.  If you really want to sell your business, you will have to consider this reality.

 

Your business is a huge part of your life. It’s what you do everyday. It’s where you put all of your blood, sweat and tears. You’ve built it and grown it to where it is today, and you likely remember every step and the purchase of every stick of furniture.

 

Selling your business means you have to take that deep emotional attachment to your business and put it aside so you can make some very rational decisions. Decisions like how much to list the business for. Like whether or not to accept a decent, but not ideal, offer from a buyer. These decisions can be really tough when your heart is still firmly attached to your business baby.

 

Step one of dealing with this part of selling your business is to realize that it’s coming and that your business is only perfect because it’s yours. Mentally preparing yourself will be crucial to maintaining your rationality during the entire selling process. Here are a few things you should consider:

 

  • Buyers are going to offer less for the business than you think it’s worth and they are going to find things about your business they consider problems.
  • You aren’t going to get back every penny you’ve ever invested.
  • You are going to have to hand the keys to someone else and walk away.
  • You are going to have to relinquish all control.
  • The next person might change everything.
  • The next person might fire all of your staff.
  • The business will no longer be yours.

 

If merely reading those last few sentences was excruciating for you as a future business seller, it is really important to keep a few things in mind:

 

  • Negotiations are part of the deal. Low offers are starting points for a conversation, not a personal slap in the face. Buyers will use any issues with the business as leverage during a negotiation, but you would too, if you were in their shoes.
  • You are going to have to be realistic about your listing price. Your reward for maintaining a realistic outlook on price? Your business will be better poised to sell in a competitive market.
  • Handing the keys to a new owner is not a one-sided transaction. They get the keys and you get a very big check that you can use to start a whole new and exciting chapter of your life.  
  • Relinquishing control is a good thing because it means you relinquish all of the stress too. The business might no longer belong to you, but the stuff that currently keeps you up at night is now someone else’s problem.
  • The next person might change everything and fire all of your staff, but more than likely then won’t. They bought a functioning business, it would be foolish to fix what isn’t broken.

 

The point here is it is very important to take a step back from your emotional attachment and rose colored glasses if you want to be a successful business seller. Your business isn’t perfect and isn’t worth 10 times what you should be asking. Negotiations are going to happen. Mentally preparing yourself ahead of time will help immensely for the road ahead.

 

Are you someone who has considered selling your business, but think you might have problems with letting go? Would you like to know what businesses like yours are currently selling for? Ask us! Please feel free to 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


Immune From Burn-Out, The Serial Entrepreneur



No matter what you do for a living, you will probably get tired of doing what you are doing.

 

If you are truly in love with the business you own and have a deep passion for what you do, these momentary periods of feeling burned out will likely pass.

 

If you aren’t driven by a deep passion, then the burn-out you experience can be more severe and can lend itself to a big, big problem. Many small business owners who get to the burn-out stage stop caring about the business they run – and as a result the business falters.

 

 

 

No longer caring can tank your business investment incredibly quickly, which isn’t good for you, your investment or any employees you might have.

 

Instead of taking your foot off the gas and watching what you’ve created evaporate before your eyes, you can take a more productive routebecome a serial entrepreneur.

 

What is a serial entrepreneur? This is someone who views business ownership not as a lifetime commitment, but as a series of investments built toward a goal of personal success.

 

A serial entrepreneur looks for businesses that are ripe for growth and takes on the challenge of implementing as many strategies as possible to maximize that initial investment with the end goal of reaching a certain threshold. Once that threshold is reached, a serial entrepreneur sells that business and looks for the next opportunity.

 

Life as a serial entrepreneur gives you all of the advantages of business ownership, like control of your schedule and your own destiny without the possibility of burn-out. If you do get tired of one of your business investments, then the time has come to move on.

 

Are you a business owner on the verge of burn-out? Do you want to know more about becoming a serial entrepreneur? Ask us! Leave 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


Why Industry Burn-Out Could Be Bad For A Business Buyer



berarbeitung, Burnout

 

You are completely burned out. You hate going to work everyday, and all you want to do is do something completely different. You are considering making the leap and buying your own business with the intention of buying a business that is the exact opposite of what you currently do. This could be a monumentally bad idea.

 

When you daydream about owning your own business, it oftentimes involves a business or industry that is completely different than the business for which you currently work. This “grass is always greener” thought process can be disastrous if you use those daydreams to inform your decision on what type of business to buy.

 

Business ownership is tough, especially if it will be your first time as a small business owner. Your transition into entrepreneurship will come with a huge learning curve, so it is almost always a mistake to add learning a whole new industry to the already enormous task of learning how to run a business.

 

Staying within your industry or within an industry where you already have some practical experience will likely be pivotal to your success. You will be able to handle the day to day operations of your business because it is similar to something you have already done in a professional capacity.

 

Notice that we said “similar”. You don’t have to buy a business exactly like the job you left in order to reap the rewards of staying within your industry. Many industry skills from one specific type of business will easily translate to another. You can also go to industries where you previously, but not currently, have experience. The point here is a car salesman who has never spent a single minute working in the restaurant industry shouldn’t buy a huge bar.

 

The other reason to stay within your industry? Landlords. Many new to the small business world don’t realize that the vast majority of businesses exist in a space that is rented from someone else. Commercial landlords want tenants who will succeed, and have seen plenty of inexperienced business owners tank their businesses and stop paying their rent. Any landlord is going to want your resume to see if you know what you are doing before they lease you the space. Someone with zero experience in the business they are trying to buy will be hard pressed to find a willing commercial property owner.

 

If the thought of spending one more moment in your current industry makes you nauseous, have a conversation with an experienced and qualified business broker. You might be surprised to find multiple businesses that are different enough from what you currently do to make you happy – that will also allow you to use the skills and experience you already have. Don’t let burn out destroy your chances for successful business ownership.

 

Have you thought about buying your own business, but don’t know what type would work for you? Would you like to see what businesses in the current market meet with your business ownership goals? Ask us! Please feel free to leave 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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