Hire Right the First Time



By guest contributor Jessica Trippler – www.BrinkResults.com

“I hired someone with lots of experience, so why is their performance lacking?”

 

If you are a hiring manager, this is likely a familiar frustration. You hired someone with all the right skills and knowledge, but they can’t seem to get the job done. Maybe you’ve tried to “train right,” equipping your new hire with the tools for success, and to “manage right,” giving clear direction and frequent feedback. But if you didn’t “hire right” in the first place, then your efforts may seem futile.

 

Did you know that only 20 percent of employees studied over a 16-year period were in a job that “fit” their talents? It’s important to recognize that different jobs require different sets of behaviors and values for success. For example, extroversion is ideal for a salesperson, but introversion better suits a researcher. Selecting the right person for the job goes beyond resume credentials and interview skills.

 

The first step to hiring right is identifying the key indicators for success for the position you’re seeking to fill. Once those behavioral metrics have been established, you’re ready to screen candidates for potential matches.
The statistically proven PDP® survey system can take the guesswork out of hiring. It starts with ProScan®, a quick, non-threatening assessment tool which focuses on an individual’s strengths and motivators. Once applicants have taken this survey, JobScan® will find candidates who best “fit” the Job Model for a specific position.

 

No screening process can predict success 100 percent of the time, but PDP comes close. It has a 96 percent accuracy rate, offering a standard of reliability far beyond the “hit or miss” method of hiring based on resume credentials and interviewing skills alone. Using this precision hiring tool will boost your confidence that you have selected the best candidate for the job.

 

Inc. magazine ranks behavioral assessment among the “Four hiring practices of highly successful organizations.” When you survey applicants about their values and motivations, and match their talents to a specific job, you’re well on your way to “hiring right.”

 

Here are few other tips for conducting a successful interview:
● Simulate a “typical” task. This will allow you to gauge specific job-related skills, observe how a candidate interacts with existing team members and how he or she works under pressure. If time does not permit, ask the candidate to prepare something in advance to present in person, or assign a “homework” task after the interview.
● Evaluate email communication. Note how well candidates express themselves in writing, as well as the timeliness of their follow-up.
● Get the team involved. It’s critical to observe how well candidates jell with your current team. Your employees will bring differing perspectives and insights to the hiring discussion. New hires should complement and enhance the existing team.
● Check references. This may seem obvious, but too often this step is skipped. Don’t be afraid to ask former employers tough questions, and ask follow-up questions if you receive a vague answer.
The bottom line is this: Bad hiring costs your company money. It can result in disengaged employees, frustrated managers and high turnover rates. While retention may be improved through better training and management practices, it’s best to hire right the first time. That way, you will be certain your new hire has what it takes to become a high performing employee.

 

 

Jessica Trippler
Director of Client Services

Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com
Request your complimentary PDP Report today<http://www.brinkresults.com/free-survey/>

 

 

Michael Monnot

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

http://www.InfinityBusinessBrokers.com


3 Reasons This Is Your Year To Sell



 

Thinking about selling your business? The time is now. Here’s why:

 

● The economy is still in an upward trend, which means prospective buyers have access to the capital they need to purchase a business. The small business market is also booming, back up to levels we haven’t seen since the beginning of 2008. If you are a small business owner who survived the recent recession, you might remember how wonderful everything seemed in early 2008, right before the bubble popped. We might not be on the brink of another recession, but market fluctuations are difficult if not impossible to predict.

 

● We will also have a wave of Baby Boomer owned businesses hitting the market in the next few years, and as with anything else, oversupply will mean lower selling prices than you would get today.

 

● You also need to consider that it takes somewhere in the neighborhood of 9 to 12 months to sell the average business. Timing is everything, so if you start the process now you may not have your business sold until 2018. There’s no way to know that the next year or two might bring, so be preemptive instead of reactive and get your business listed in a positive market.

 

Would you like to know what businesses like yours have recently sold for? Do you have questions about the selling process? Please feel free to leave us 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


A Good Sign For Buyers: What Parts Of A Business Should I Pay Attention To?



If you are a prospective buyer looking to own you own business, you may have already noticed the unique nature of business listing prices – they seem to be all over the place.

 

How do you as a buyer interpret the asking price of a business as it relates to its actual value?

 

Asking prices should be based on the cash flow the business generates, but there are other aspects that will speak to the overall health of that business which buyers should pay attention to. Here’s a few to consider:

 

 

Consistent Numbers

If a business has very consistent numbers, it might mean less risk for a buyer. Remember that the value of a business to you is the earnings it will have in the future. Consistency year over year is what you are looking for. Many businesses will have seasonal fluctuations that have everything to do with the local economy and seasonal shifts and nothing to do with the health of the business.

 

Operating Profits

In order for you to pay yourself and pay back any debt you incurred with the purchase of the business the business will need to be generating operating profits. A business with numbers that consistently show operating profits will be a better bet than a business that is only breaking even.

 

Diverse Customer Base

In a business that has a diverse customer base the loss of a single customer will not be as fatal as in a business with only a small handful of clients.

 

Reputation and Brand

A business with a great reputation or a very well established brand will have a more loyal clientele, meaning less work for you as the new owner. Instead of having to spend your time with branding or rebuilding a poor reputation you will be able to focus your marketing time on acquiring new customers.

 

Good Managers

If a business is well managed by the management staff without the owner having to be present 100% of the time – and if those managers are willing to stay on if the business changes hands, it can be a good sign for a potential buyer. It will mean less disruption when the business changes hands and less of a learning curve for the new owner because there will be staff present to help with many aspects of day-to-day operations.

 

If you need help determining if the listing price of a business really fits with an actual evaluation of the business, you can also turn to the services of your business broker, as they will know the current market and what aspects of a business bring the most to a new owner.

 

Are you a future business buyer who has questions about the value of businesses you have seen for sale? Leave us a comment or question here and we will be happy to assist you in your business search.

 

 

 

Michael Monnot

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

http://www.InfinityBusinessBrokers.com


The Questions Business Buyers Should Be Asking



Are you asking the right questions?

 

How long does it take to buy a business?”

Prospective buyers typically ask this question, but it isn’t a very helpful one.

Try these instead:

Do I have enough capital to buy a business?

Just wanting to own a business and having enough money to make that happen might be totally different things. Do you have the money ready and available to buy and run a business? You should really have at least 50% of a purchase price if a seller is offering seller financing, and all cash or third-party financing already in place if seller financing is off the table. You need to allow for not only the purchase price, but all of the other costs involved in a business sale – like fees for licensing and money available to keep the business running until you are able to start turning a profit.

What kind of business should you actually buy?

Many new business owners walk into business ownership under the mistaken assumption that anyone can own and run any type of business. Nothing could ever be farther from the truth. To keep your business profitable, you will need to be able to both navigate and compete in the market you are in. If you have little to no relevant experience in your business, there is likely no way for you to stay competitive.

Once you have answered these two questions, then you can ask “how long does it take?”. The answer to that question is typically about six months for a new and motivated buyer to enter the market, find and purchase a solid business.

Don’t make the mistake of asking the wrong questions. Talk with your business broker about what your financial means are and what type of business would best suit the practical experience you have. Starting with the right questions will make you a more successful business owner in the end.

 

Are you thinking about buying a business? Do you have questions about seller financing and the best type of business for you? Leave us a comment or question here, and we will be happy to help you.

 

 

 

 

Michael Monnot

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

http://www.InfinityBusinessBrokers.com


Buying Or Selling A Business? Is It Bad Advice Or Good Advice?



 

In the business transaction world, it happens all the time. A deal between a buyer and seller seems to be headed to a happy closing table and then suddenly the deal is dead. What happened to kill the deal? More often than not, someone got some bad advice.

 

What kind of advice is bad advice?

 

When you are trying to buy or trying to sell a business, advice from anyone who has little to no experience with the process of buying and selling businesses is probably not going to be very productive. Here are a few examples:

 

A standard listing agreement (which gets your business listed on the market) includes protections for both the seller of the business and the business broker who makes the transaction happen. These agreements are fairly standard, and if you as a seller refuse to sign one, you are going to have a hard time trying to find a decent business broker to help you with your sale. These agreements are a legal document, so some sellers give the agreement to their lawyer (who has no business transaction experience) to look over before they sign it.

 

There is something essential about lawyers to point out here. Your attorney’s job is to make sure you are legally covered and completely free of any risk. As a business owner you should know that any business deal is going to come with a bit of risk. So how do you reconcile the opinion of someone you have hired to protect you from any and all risk with a business transaction that may carry some risk on your part? The short answer is you don’t. If you give your attorney who helped you with your divorce or the one who helped you sue a contractor for negligence a business listing agreement, or for that matter any agreement you may become a party to during a business sale, they will likely tell you not to sign it, or only to sign it if they are allowed to make a lot of changes (which is likely out of the question).

 

What should you do then? Hire a business transaction attorney instead. A business-specific attorney will be able to advise you during your business sale because they have done it before and know what they are doing. They are already familiar with typical agreements, they know the ins and outs of the process, and will be a far better legal guide.

 

Another example of advice that can be counter-productive is advice from the CPA who usually does your taxes. Unless they have been a part of business transactions in the past, they are going to be a problem for the same reason that your regular attorney is – it is their job to cover you and you alone. The issue that arises with a CPA who is unfamiliar with business transactions is they may not understand the way businesses are evaluated and how they are priced. With many types of businesses, the value comes from more than just what shows up as black and white on a profit and loss statement. When you ask your regular CPA to take a look at the business you may end up with inaccurate advice. Instead, hire an accountant familiar with business transactions because their advice will be far more valuable.

 

What about advice from your friend’s brother-in-law who used to be a commercial real estate agent, from your neighbor who owned and sold a business 25 years ago, or from your good friend who’s a dentist? Listen to all of the advice you get, but remember to filter what you hear because professionals who do business transaction work for a living are probably best qualified to answer your questions. If advice from a close friend leaves you second guessing your choices in the transaction, by all means talk to your business broker, transaction attorney, and transaction CPA before you decide to back out of a deal. You don’t want to miss a great opportunity because you got terrible advice!

 

Has a deal you’ve been a part of fallen apart because of bad advice? Share your experience here, or feel free to leave us any questions or comments you may have.

 

 

 

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


Hey Business Seller, Do You Know What Buyers Are Looking For?



When you are thinking about putting your business on the market, or have already done so, you may think you have considered all of the elements involved in a business sale, like finding a good business broker and making sure your financial records are in order. While a good business broker and complete financials are important, they aren’t the most important element of a business sale.

 

So, what is the most important element in a business sale? The answer to that question is simple.

 

Is someone willing to buy my business?

 

Have you thought about what a buyer is looking for when they are considering purchasing your business? Looking at your business from a buyer’s perspective is critical if you want to have a successful sale. Here are some points to consider:

 

 

First and foremost business buyers are going to consider price. The best way to attract good buyers is to price your business fairly right out of the gate. Negotiation games will drive potential buyers away, so talk with your business broker about how to price your business appropriately. A fair price is one that you can justify, either through your financial records or by other means specific to your industry.

 

The next major consideration? Will your business fit the life your buyer wants to have? Be ready to answer questions about the hours you put in, what kind of pay you take home, and what kinds of regular responsibilities they will need to accomplish on a daily basis.

 

Why are you selling your business? Buyers who ask why the business is for sale are looking for potential problems. Are you selling because you are ready to retire, or because you are trying to get off of a sinking ship? If you are trying to sell your business for health reasons (a subject that is obviously a private one) you may need to be prepared to disclose this detail if a buyer asks in order to dispel any doubts they may have about the business.

 

A buyer will also want to know what is included in the business sale, so this information should be ready as soon as you list your business. Are they buying a name, a customer list, inventory, equipment, etc.? The relationships you have built with your clientele and your suppliers are likely crucial to the success of your business, so a buyer will want to know that they can retain these relationships when they take over.

 

Lastly, a potential buyer will want to know if you are willing to help them get started. You are the person with the most expertise in your particular business, so a new owner will want to know that they have your support in making a successful transition. Are you willing to stay on for training? How long of a training period are you willing to do, or do you think the new owner will need? Would you be available on a consulting basis longer term and after the training period has ended?

 

What are potential buyers looking for? They are looking for a chance to own their own business, one they are confident about and that they were able to purchase at a reasonable price. If you as a seller can put yourself in the shoes of a buyer, you will have a much better vision of how your business needs to come across to potential buyers.

 

Are you a business seller who would like to know more about how to make your business appealing to potential buyers? Leave us a comment or question here, and we will be happy to assist you.

 

 

 

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


Business Sellers: Surviving The Negotiation Table



The negotiation table in a business deal can be tough, especially if you are a business owner who is deeply passionate about the business you have worked so hard to create.

 

The key to surviving the negotiation part of your business transaction is to be objective and employ the following strategies:

 

 

  • Negotiate with your head, not your heart. Typically the first offer from a prospective buyer is low, but what you need to remember is this number is not the final price your business is going to sell for. The first offer is purely a starting point. A low-ball offer can send you over the edge, but you will need to restrain your emotions and try to see the offer in a positive light. Offers of any kind start the negotiation process.

 

  • Let your broker do the talking. A business broker is a huge asset during the negotiation stage of your transaction. They are an objective third party, and will therefore be able to help you navigate your negotiation in an objective way.

 

  • Always remember that you can walk away, and remember to use that fact to your advantage. If a buyer really wants to buy your business, then eventually you should be able to meet in the middle on price. If they are really low-balling you and refuse to budge, then it is always your call to walk away from the deal. Sometimes this works to motivate a buyer to come up on an offer, and sometimes it just means the deal is dead. Discuss these options with your broker to be sure you are making the decision to walk away based on an objective business decision, not because you were emotionally offended.

 

The most important pointer for a business seller in the midst of negotiations is this: Buying a business is an emotionless process. Your ability to understand this about the buyer will be the key to getting your business to the closing table.

 

Are you a business seller who has lost a deal during the negotiation phase because your emotions got the best of you? Would you like to know more about strategies that can help prevent the same circumstance in the future? Leave us a comment or question here, and we will be happy to assist you.

 

 

 

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


Buying and Selling Businesses: Deal Killers



Whether you are in the market to buy a small business, or you are a small business owner who is looking to sell, it is important to understand the reasons that business transactions fall apart in order to avoid this issue yourself.

 

 

Business deals can be destroyed by either side, so whichever side of the fence you are on, avoid these pitfalls:

 

The Buyer’s Side

 

As a buyer, you need to be sure that you really want to buy a business. Are you really ready to take on the responsibility and work that it takes to run a small business? Do you have the support of your spouse and family? Owning a business will mean sacrifices for your family too, even if it is just in terms of the time that you would be able to spend with them.

 

Another reason that buyers have trouble getting to closing is unrealistic expectations. Do you understand how businesses are priced? Do you understand the buying process? Many new buyers go into the process believing that buying a business is a lot like buying a house, but nothing could be further from the truth. Talk to a business broker about your expectations early on in the game, as it will prepare you for the realities of a business transaction before you get there.

 

Do some research on your own to be sure you understand small business ownership and operations. You will want a good grasp on small business ownership before you get to the closing table. You do not want to be faced with a crash course your first day as a small business owner. If you have any doubt in your mind, it might be wise to resolve those doubts before you begin the business buying process.

 

The Seller’s Side

 

Many sellers put their business on the market purely out of curiosity. They want to see what the market is like, and really don’t have any legitimate reason or motivation to sell. This is a big mistake, as it alienates any good potential buyers that come your way.

 

The major issue that keeps businesses on the market forever is the price. Many business sellers have completely unrealistic expectations about the price and the market for their business. Use a business broker to alleviate this issue, as they will be able to properly evaluate your business based on the current market.

 

In the same line as price, as a seller you may need to accept seller financing as a part of any potential deal. Although it does occasionally happen, most of the time buyers do not come to closing with all the cash up front. If you are serious about selling your business, accepting seller financing will get you more potential buyers than if you refuse to do so.

 

Another major deal killer is dishonesty. As a seller, you should not try to hide the negative aspects of your business from buyers, as they will likely figure these issues out on their own during the due diligence phase. Failing to disclose that the business is in bad shape, that there is a major competitor moving in, or that you are dealing with a serious environmental issue are sure fire ways to make a deal fall apart.

 

Be sure that all owners of the business are in agreement about the sale, and check with your business broker and attorney about any legal ramifications of selling your business. You will not want any legal surprises the day before closing.

 

Keep the Deal Alive

 

Business transactions are inherently complicated, so it is important to remember some key points. First, honesty is the best policy. Second, trust the judgment of your business broker. Third, keep your expectations in the realm of reality. Lastly, be patient with the process. If all parties are serious about getting the deal done, any potential problems can ultimately be resolved.

 

Are you a business buyer who has questions about the process to find and buy a business? Are you a business owner who wants to know when the right time to sell would be? 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


Buyers and Sellers: The Importance Of Reality



Good news, the business market looks better today than it has in years.

 

 

These may be favorable times for the buying and selling of businesses, but that does not mean that all deals will make it to the end.

 

The main reason that deals die before they hit a closing table? Unrealistic expectations. Business buyers and business sellers come into the business transaction process with an idea in their head of how that transaction is going to go and what they will get out of the deal. The problem with this initial vision is they are almost always an impossible reality. Businesses and business transactions are complicated, messy and involve many moving parts and personalities. Considering your business transaction with a focus on reality will help you immensely in having a successful sale or purchase.

 

First and foremost, there is no possible way that you are going to get everything you want. If you are buying a good business, you are not going to get it for a rock-bottom price. If you are selling, you are not going to get 10 times what businesses like yours are actually selling for. Business deals are full of negotiation – and not just about price. You will have to negotiate things like the length of due diligence, the length of the training period, the terms for seller financing, the clauses of a new lease – the list goes on. Be realistic in the negotiation phase of your business transaction. Go in knowing that there will need to be a lot of give and take from both sides of the transaction if you are going to get a deal done.

 

Another major issue that requires a reality check? We’ve already mentioned it – personalities. There are a lot of people in a business transaction. There is a seller, a buyer, a couple of business brokers, business transaction attorneys, CPAs, landlords and property managers – and each one of these people will be seeing the transaction unfold from their own unique point of view. You need to be realistic because there are going to be times during the negotiation that one or more of these personalities are going to clash. For the most part, differing opinions can be sorted out, but only if all sides stay in the negotiation. Going into your business transaction with the understanding that problems will absolutely be a part of the game will help you see the end goal instead of focusing on temporary personality clashes.

 

Keep your expectations in the realm of reality and you will have a much better chance of reaching a closing table.

 

Are you thinking about selling your business and are curious about what businesses like yours have actually sold for? Would you like more information on the process to buy a business? Please feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

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

http://www.infinitybusinessbrokers.com


The Secret To Selling Your Business: The Pre-Exit Strategy



 

When you first became a business owner, the thought that was probably farthest from your mind was “How am I going to get out of this business?” While no one tries to have a pessimistic outlook on their livelihood, it is a reality that someday your position as the business owner is going to end.

 

How it ends and what you get out of the deal are entirely up to you.

 

There are typically four ways that business owners relinquish their position within the company. The first, and worst, is to simply lock the doors and walk away. This is never a good decision, as with proper planning all of your hard work and personal investment will not end up going to waste.

 

The second way to change ownership is to give the business to a member of the family. This can be successful, but only if that family member is ready to take over the business.

 

The third type of business transfer occurs when an owner gives or sells the business to an employee. This has benefits as an employee already knows the business, but rarely do employees have the cash to buy the business outright.

 

The fourth and most common way to transfer ownership is to sell the business on the open market. With this method a business owner typically gets a much better return than with any of the other methods.

 

There is a caveat, however. If you are suddenly faced with the need to sell your business, it needs to be in good shape.

 

The biggest secret in small business ownership is to plan your exit strategy from day one.

 

If you don’t currently have a pre-exit strategy, now is a great time to start. By preparing your business for sale today, you can be ready if the occasion should suddenly arise where you need to sell.  Some pointers to keeping your business sell-ready? Think like a buyer.

 

  1. Buyers like businesses with cash flow that will give them the ability to make a living starting day one. Consult with a business broker to find out how to make cash flow a major selling point.
  2. Buyers like businesses that are aesthetically pleasing. Keep the business in good shape by repairing and restoring what is needed on a regular basis.
  3. Buyers hate surprises. Take care of any legal issues, government issues, and financial issues as quickly as possible.

 

When the time comes to sell your business, you will be glad you planned and prepared ahead of time. It will mean a less stressful transition in the end. Use the services of your business broker to get your business pre-exit ready, even if you are not ready to sell today.

 

Are you a business owner who doesn’t have an exit strategy of any kind? Would you like to know how to get your business in pre-sale shape? 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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