The 3 Big Trade-Offs – Are You Ready?



So you think you want to buy a business and start off on a career as an entrepreneur?

 

Before you spend too much time daydreaming of becoming the next Branson or Zuckerberg you need to consider some very big trade-offs that your new life as a business owner will require.

 

Control Of Your Time

You may have hated your 9 to 5 job, but working for someone else offers you the opportunity to have something many entrepreneurs don’t – time off. If you are buying a business so you can have more control of your time, the good news is you will. Your work schedule will absolutely be up to you. The caveat here is that work schedule is going to have to cover more hours than your traditional job did, so you need to be mentally prepared to work nights, weekends and take working vacations (if you are able to take vacations at all).

 

The Need To Reinvest, Reinvest, Reinvest

One of the best ways to grow a small business is to reinvest your money in every way you can. What this means from a trade-off standpoint is you may end up making far more owning your own business than you ever did working for someone else, but that money really belongs back in the business if you want to be successful. You should also be prepared to go without paying yourself in the very beginning because you will need working capital available for things like inventory and payroll when you first take over.

 

Your New Baby

Working a traditional job means that you have to punch a clock, but the time when you aren’t at work belongs to you – and you can use that time for your family, your friends and your hobbies. When you own your own business, that business becomes your baby, and as such it will require you to make sacrifices in terms of the time you were once able to dedicate to the non-working parts of your life. The good news is you won’t have to ask your boss and hope that you can get the day off for your daughter’s ballet recital, you will be able to accommodate those all-important things in your non-working life. You will just have to find a way to balance the needs of your business and the priorities in your life.

 

Should these trade-offs scare you away from buying a business? Absolutely not! Owning your own business means that every expenditure of time, energy and money comes right back to you instead of going to someone else. The rewards of flexibility and control over your own destiny make any trade-offs worth it in the end. You just need to be aware that these trade-offs will be necessary so you can be prepared for business ownership.

 

Do you have questions about the trade-offs business ownership requires? Would you like to know what the schedule looks like for a business owner in the industry you are considering? Please feel free to ask questions or post comments below, and we would be happy to help you on your journey to entrepreneurship.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com


They Google You Too – Advice For Business Buyers



If you are in the market to buy a business, then what is one of the first things you will likely do when you find out the name and location of a prospective business? Hit a major search engine like Google and plug in the name.

 

What many buyers fail to realize, however, is once a seller finds out your name they will do exactly the same thing.

 

Buying a business is not at all like buying a car. When you are shopping for businesses, you are essentially shopping for a job – so just like a prospective interviewer would do, business sellers are going to look you up.

 

You also have to consider that the business you buy is someone’s baby, a business where they have invested countless hours and a great deal of money. For most sellers, there is an emotional connection to their business, and as such they won’t be willing to hand over the reins to just anyone. The legacy of their business can be just as important as the check you write.

 

In addition to the emotional connection, in business sales there is typically a training period of several weeks – so major personality differences between buyer and seller can cause a whole host of problems.

 

Another major factor that will cause a seller to look you up? Seller financing. In most small business transactions, the seller finances part of the deal. Since they are keeping some skin in the game, it will be very important to know who you (as a buyer) are and if you are the kind of person who will be responsible enough to pay back the debt.

 

If you are in the market to buy a business, ask yourself this. What happens when someone Googles your name? If you haven’t ever checked, you should.  

 

Your online presence will speak volumes to a seller who has never met you, and in some cases, brokers themselves will even Google you before agreeing to work with you.

 

What should you do if you are in the market to buy a business? The first thing you should do is set any social media you use for personal use to private. Only those people you know should be able to see things from your personal life, not prospective sellers.

 

You should set up a professional social media account on a site such as LinkedIn or a more professional Facebook page that sellers and brokers can see. You should also abide by basic social media guidelines that anyone would use if they were going into a job interview. No pictures of drunken debauchery, no rage-infused political rants, no dirty jokes – you get the idea.

 

If a cursory search for your name turns up nothing but pictures of you partying hard – it may reflect poorly on you as a competent professional and leave sellers uncomfortable with your ability to get the job done. Clean up your social media image before anyone looks you up.

 

Are you a buyer looking at businesses and hadn’t considered your online image? Would you like to know what else you could do to make yourself more appealing to sellers? 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

www.InfinityBusinessBrokers.com


The Good, Bad And Ugly: How To See Past The First Impression



It’s an age-old adage that first impressions are of the utmost importance. It’s why business people wear suits and why car dealerships keep the cars on their lots shiny and clean. It might seem like basic sales knowledge that in order to sell something, you need to make sure it is ready for that all-important first impression.

 

Business buyers who come to the business marketplace looking for a shiny, clean business are in for some serious disappointment, and that disappointment may lead some to either give up their business search or continue searching indefinitely.

 

Why?

 

Businesses, and small businesses in particular, can be ugly monsters. At a cursory first glance, a business that has recently listed might seem outrageously overpriced, have seemingly unintelligible financial records and look like an unorganized mess teetering on the brink of collapse. These terrible first impressions, however, mean that buyers regularly pass over perfectly good businesses just because they aren’t perfect.

 

Why do they look so bad?

 

Small business ownership is a tough gig. Owners who are very capable of holding everything together and helping the business grow may not be so great at keeping their books organized or at explaining why they listed the business for the price they did. As a buyer, you want a strong business, so overlooking businesses because the current owners focus more on the strength and growth of the business instead of focusing on neatly curated paperwork would be a very big mistake.

 

Another major first impression hurdle is the aesthetics – peeling paint, outdated decor, dirty floors – but again the point here is you want a business whose owner focused on the bones of the business itself, not someone who only worried that the place stayed immaculate.

 

How do I see past the ugliness?

 

Get some professional help. Business brokers look at ugly (but wonderful) businesses every day, and they can help you as a buyer navigate the shoddy paperwork and stained carpet to see what you really would be buying underneath. When you buy a business, you aren’t really buying furnishings and a sign anyway – you are buying cash flow – so having someone to help you determine what the cash flow looks like for the businesses you find interesting can go a long way towards helping you make a decision.

 

As you start your business search try to remember that in the business for sale world, it’s not the first impression that counts.

 

Have you been searching for a business but haven’t found one that doesn’t come across as a complete train wreck? Would you like advice about how to see past the first impression to find great businesses? Please 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

 


3 Tips For First-Time Business Buyers



If you are thinking about taking the entrepreneurial plunge by buying a business, you may be wondering where to start.

 

Here are 3 tips to get your business search going and put you on the path to small business ownership:

 

Get In Touch With A Business Broker

Many new buyers think that the services of business brokers are only for sellers, but nothing could be farther from the truth. A good local broker can help steer you in the right direction – both to the right industry and businesses that you can successfully afford.

In your first conversation with a good broker you will likely discuss what your goals are for business ownership, what capital you have readily available to invest in a small business, the industries where you have practical experience and the businesses you are considering. In some cases a buyer who is considering one industry may have more success meeting their goals for business ownership (like setting your own schedule or employing members of your family) by buying a business in an industry they hadn’t even thought of.

 

Do Some Self Searching

Owning a small business is a life-encompassing affair, and before you decide what type of business would be right for you, you need to think about what you want to get out of business ownership. Have you always dreamed of owning your own bar, but you’ve never worked so much as one day in the restaurant industry? Buying a business and becoming an owner overnight can come with a steep learning curve – you don’t want to add learning a whole new industry to the mix.

You also need to consider what you want your life as a business owner to look like. If part of your reason for transitioning to an entrepreneur is to give yourself more time with your kids – then owning a business like a bar where you will work seven days a week from 3pm to 3am probably isn’t going to leave a lot of time for coaching their little league team.

 

Do An Exploratory Search

Many prospective business buyers have a general idea in their minds of the type of business they would like to own, but after a cursory search they discover that there are business opportunities out there they’ve never even heard of or considered. Do a cursory search of the businesses available in the geographical areas that interest you and you may be surprised what you find. You can start your cursory search by clicking here, and then ask us about any interesting businesses you find by contacting us today.

 

If you are thinking about joining the world of small business owners – do some soul searching, talk to a good broker and do a little exploratory searching on your own. By opening the field of available and potential businesses you will have a greater chance of finding the perfect business for you.

 

Have you thought about buying a business but aren’t sure where to start? Do you have questions about how the business buying process works? Ask us! 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

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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