Don’t Be Disengaged: Why This Buyer Spells Disaster



Buying a business is a big deal. You are embarking on a whole new life, have a ton to learn and an exciting new road ahead – a road that takes a lot of planning, preparation and hard work.

 

What can sometimes confound business brokers, business sellers and even some buyers is a relatively rare but alarmingly destructive force – the disengaged buyer.

 

 

What’s a disengaged buyer?

 

Someone who waltzes into the business buying process with nonchalance – they don’t take anything seriously.

 

They miss conference calls. They’re chronically late for appointments. They let license applications sit on their desk unfinished. They don’t show up for training with the seller, or they show up and act like they could care less. Sounds frustrating, doesn’t it?

 

Frustration isn’t the only issue. This level of apathy can be destructive as well.

 

It alienates the seller. It angers the commercial landlord. It hampers the ability to run the business because licensing requirements have not been met.

 

Sure, some of the business buying process is tedious. Some of your training will seem unnecessary. Red tape and paperwork are boring. We get it. Guess what? Nonchalance on your part can (and probably will) cause irreparable harm to your business ownership goals.

 

Why?

 

All those conference calls and meetings are crucial to your success. You can’t know if a business is going to be right for you if you haven’t asked the right questions.

 

Licensing requirements are an absolute necessity – and they can take time. Time that is out of your control because the wheels of bureaucracy turn slowly. You need to get going on applications as soon as is feasible and you need to stay on top of all the bureaucratic red tape before it has a chance to strangle your new business venture.

 

Your training period is critical to your success. You need to take every single moment of training seriously and try to gain every bit of knowledge you can from your seller. They’ve already worked through the pitfalls that you will face, and their knowledge will help you avoid them.

 

The relationships you have with your seller and your commercial landlord can make or break your transition to business ownership. If you alienate the seller, they are much less likely to take training you seriously – and you’d better believe they’ll stop taking your calls as soon as the training period is over. An angry landlord can refuse to transfer the lease, raise the rent, etc. Preserving those relationships by being respectful of everyone’s time and effort will go a long way on ensuring your success.

 

Do yourself and your future business a favor – BE ENGAGED.

 

Are you thinking about buying a business and want to know more about how to maintain important relationships throughout the purchase process? Would you like to know more about licensing requirements? Do you have questions about how the training period works? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com


Business Buyer: Is Seller Financing For You?



If you are in the market to buy a business, but don’t have a huge amount of cash available to make an all-cash offer, then the option of seller financing may be for you.

 

What is seller financing?

 

This financing option occurs when a buyer brings a sizable down payment and the seller offers to finance the remaining balance of the purchase price.

 

 

Many traditional lending institutions are gun-shy about offering any kind of lending options for small business – small business ventures can be risky and banks typically want something with more concrete collateral. Seller financing fills this gap between the all-cash offer and the difficult-to-get traditional financing options. A note here – the terms of a seller financing deal may have a smaller time period and higher interest rates than traditional lending would.

 

If you are a buyer who is going to need help with raising capital, there are a few things about the seller’s side of seller financing that you will need to understand and consider.

 

Most of the time you will need to bring a big down payment. Most (but not all) seller financing is for less than two-thirds of the purchase price, so at the very least a third of the price will need to be given as a down payment at closing. The seller is going to want a fair sized chunk of cash up front because once they sell the business, they are essentially out of a job and will be moving on to perhaps another business venture or retirement.

 

You will need to prove that you have the ability to keep the business running and profitable long enough to pay back your loan. You will probably have a hard time getting seller financing in an industry where you have little to no experience because a seller doesn’t want your learning curve to affect whether they get paid for their business.

 

You may have to put up a fair amount of collateral. The business itself we be collateral, in that that seller can take the business back in default. Also, a buyer can offer up personal assets like real estate if they choose to.

 

If you are someone with terrible credit, you may have a hard time getting seller financing. Any seller in their right mind will want to make sure that you have the ability to pay them back for all of their years of hard work, and a buyer with a good credit score will look far more promising than one without.

 

The price overall may be a bit higher and the interest rate might be a bit higher too, but what a buyer needs to remember is a seller has no buffer like a traditional lending institution would, this business is all they’ve got. If you have decent credit, a sizable down payment, know what you’re doing in the industry – but just can’t get traditional financing – then seller financing could be a very realistic option. The better you look as a lendee the more business choices will be available.

 

If this is something you might consider, you need to have the seller financing discussion with your broker early on in the game. The need for this type of financing will drive what businesses you should look at and which ones will be financially out of your league – there are sellers out there who demand an all-cash offer.

 

Are you a buyer who would be interested in seller financing? Do you have more questions about what information you would have to provide to a seller in order to secure financing? Ask us! Leave a comment or question here, and we will be happy to answer all of your seller financing questions.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com


Want Happiness In 2021? The Entrepreneurial New Year’s Resolution



2020 was a rough year, for everyone. This New Year’s holiday holds special meaning for many of us. It’s a chance to start again.

 

That’s right, it’s New Year’s resolution time.

 

 

We all do it. We come up with fabulous and complicated New Year’s resolutions and then fail miserably within the first three weeks of the new year. We all want to be thinner, in better shape, more organized.

 

If you consider them as a whole, what are all of our collective New Year’s resolutions really about? They’re about happiness. If you are thinner, then perhaps you’ll be happier. If you’re in better shape or if you’re more organized, then perhaps you’ll be happier.

 

The reason these resolutions fail is they only scratch the surface of the underlying goal you are trying to achieve. Losing 20 pounds might initially make you happy, but you still have to get up and go to the job you hate every day.

 

Happiness is less about superficial changes and is more about living with a sense of purpose. It comes when you feel fulfilled in your daily life.  How do you reach fulfillment?

 

Take control of your career and follow your passion by becoming your own boss.

 

It may seem like a daunting proposition to become your own boss, but taking the entrepreneurial plunge doesn’t mean you have to come up with a genius idea and build a business from the ground up. You can enter the world of small business ownership by simply buying a business that already exists.

 

The benefits of taking this route to business ownership are easy to see. Buying an existing business means you don’t have to contend with coming up with a concept, finding and then equipping a location, finding and training a new staff, establishing a customer base, obtaining initial licenses and permits – the list goes on and on. All of this “start-up” work has already been done, and you even have the previous owner to train you when you take over so you aren’t walking in cold.

 

If you are thinking that buying a business might be a great part of your 2021 plans, you probably have some questions:

 

How much money does it take to buy a business?

The answer is, it depends. Sure, there are multi-million dollar businesses on the market – but there are also many smaller businesses that would require a much smaller initial investment. Many business sellers also offer the option of seller financing, so you may be able to get a business that would suit your goals without having to pay all cash.

 

What kinds of businesses would be right for me?

Remember that the point of business ownership is to have control over your own destiny and to feel fulfilled in your daily life. You shouldn’t buy a business where you aren’t going to be happy – without drive and passion you will most likely run the business into the ground. You also shouldn’t buy a business you know nothing about. Giving yourself the massive hurdle of trying to learn a whole new industry on top of learning how to run your new business just means you are setting yourself up for failure.

 

Think about what your goals for business ownership are. Do you want a more flexible schedule? Do you have a particular passion that you want to turn into a career? Are you looking to make a long term commitment to a business or are you looking to grow and then sell your new business for a profit? These types of questions will help you decide what types of businesses would be right for you.

 

What’s the next step?

Contact a business broker. They can help you figure out what businesses would be right for you based on your goals for business ownership and the capital you have available.

 

Get yourself on the path to business ownership and happiness in 2021!

 

Do you have more questions about the process to buy a business? Would you like to know what businesses are currently available? Ask us! 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
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com



Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

5111-E Ocean Blvd
Siesta Key, FL 34242

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

5111-E Ocean Blvd
Siesta Key, FL 34242




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