August 2021 - Infinity Business Brokers

Ready To Take The Plunge? Buying An Existing Business

Published August 30, 2021

Have you always wanted to own your own business but aren’t sure how to take the plunge?

One path to entrepreneurship that many choose is to buy an existing business. This can be a good option for a number of reasons.

First and foremost, the business has already been set up for you, and the business model has been proven because the business is currently up and running. The location is equipped and a customer base has been established too.

What do you need to do to get started if this is the path for you?

The first step is deciding on a type of business to buy. More often than not, a budding entrepreneur will start the process by seeing what businesses are available. This is a mistake because it can cause you to fall in love with a business that wouldn’t meet the goals you have for business ownership.

When entering a new business venture, you should choose something where you have at least a bit of background or experience. The learning curve for a new business owner is a steep one, and that’s without having to learn an entirely new industry as well. Give yourself a great head start by deciding on an industry before you search, and be sure to pick an industry you know.

The second step is to begin your search. Now is a great time to employ the services of a business broker, as they will have access to more business listings than you will be able to find on your own, they will know about businesses that are not yet on the market, and they will be able to market you as a buyer to other business brokers and their sellers.

Talk to your broker about the goals you have as a business owner – like how many hours a week you want to work, what type of return you are looking for with your investment, where your experience will suit you best and how much capital you have to invest. Identifying your goals, experience and available capital are critical to finding you a business where you can be successful. If the broker you are working with hasn’t had this conversation with you, perhaps it is time to find someone else to work with.

Once you have your goals ironed out and know what industries would set you up for success, you can do a cursory search for businesses by visiting our Business Search page.

Once you find a business that fits your goals, you will likely decide to make an offer. This step is then followed by a period called due diligence where you will get a chance to review things like finances and contracts in depth. After this review you will decide if you would like to proceed with the sale or not.

Are you ready to take the entrepreneurial plunge? Do you have questions about the search process or are you unhappy with the help you are getting from your current broker? Leave us a comment or question; we look forward to assisting you with your business search!

Michael Monnot

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

www.InfinityBusinessBrokers.com

It’s A Process: Why Business Buyers Need To Be Tough

Published August 23, 2021

It probably shouldn’t be a surprise that buying a business can be a bit of a process.

You have to sign non-disclosure agreements, go through documentation, have meetings and conference calls, deal with bureaucratic red tape for licensing and permitting, negotiate with sellers and landlords – all while making the massive decision of whether or not this business is for you.

The process might seem difficult, but it’s not impossible. Businesses are inherently complex, and business transactions involve a lot of moving parts and people.

What happens far more often than it should is a buyer gets fully immersed in the process, decides it’s too aggravating and throws in the towel – leaving a perfectly good business ownership opportunity behind.

If you are considering business ownership, you should consider this – if you can’t handle the stress and rigors of buying a business, you probably can’t handle the stress and rigors of owning one either.

Entrepreneurship is just as tough as the business buying process, and it’s not for everyone. If you are considering the leap into business ownership you need to take a moment and decide if it’s the right move for you. Owning your own business is incredibly rewarding, but those rewards come with a lot of work. If you are ready, willing and able to do that work then you can easily survive the business buying process by having one major thing – patience.

Here’s why. It will take some time for you and your broker to decide what types of businesses and what industry sectors will best suit your goals for business ownership and your practical experience. Once you know what you’re looking for you and your broker will have to search for businesses that will fit your budget too. Once you’ve found a few promising candidates, you will need to sign non-disclosure agreements and then wait for the seller and seller’s broker to get you some cursory information on the business. If you like what you see, you can make an offer on a business – but then you will have to wait for the seller to either counter your offer or accept it. If the offer is countered, it will probably take some time to arrive a price both sides can agree on. An accepted offer means due diligence can start, but only when the seller has provided all of the requested documentation. Getting all of the requested documentation also takes time, as a seller is not only trying to round up all of the paperwork you’ve requested, they’re also trying to run their business too. After due diligence, the final purchase contract will take some time to put together and a new commercial lease will need to be worked out with the landlord. You will also need to deal with obtaining or transferring all of the licenses and permits the business needs.

See a trend? Everything takes time, and as such everything takes patience. The goal is business ownership, and a tough entrepreneur will be able to make it through.

Are you looking for businesses to buy but feel like the process might be too overwhelming? Would you like to know more about what it takes to buy a business and what kinds of help are available to you? Please feel free to leave any questions or comments, 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

Buying? Why Flexibility And Patience Are Your Best Bet

Published August 16, 2021

Most business owners and people considering business ownership have a particular type of personality. You could call it type-A, but it’s a bit more nuanced than that. Entrepreneurs are a tough bunch, used to taking risks and working hard to turn those risks into rewards. They’re comfortable with the idea that the buck stops with them and if they fail they only have themselves to blame.

This grit-based type of personality serves a business owner well. It gets you out of bed in the morning, it drives you to succeed. It’s a good thing – most of the time.

Here’s where having this type of personality can hang you up. The process required to buy a business.

The business transaction process can be a bit arduous. While an entrepreneur will probably have no trouble with the list of things that need to be accomplished – it can be extremely tough to navigate the difficulties that arise during the purchase of a business because no ONE person can be in control. That’s right. You can’t control the process.

This can cause entrepreneurs to balk at basically any part of the business transaction. From refusing to sign an industry-standard NDA because you didn’t write it, refusing to share your address in order to access proprietary information about a business you are considering, demanding an in-person walk through of a business location before you’ve ever asked a single question of the seller – the list goes on and on.

Look, we get it. When you’re used to being the one in command it can be deeply difficult to relent to someone else’s rules. Here’s what you have to remember. The business transaction process exists and proceeds the way it does for a reason. It works to protect businesses for sale while they are being sold. If it was your business on the market – you would absolutely demand that everyone play by the rules so your business wouldn’t falter.

If you are considering buying a business, you are going to have to let go of the notion that you will be in control. You have to sign NDAs. You have to provide your personal information in order to receive proprietary information about a business. You have to be patient with the seller when they are collecting the documentation you requested. You have to wait for people to call you or email you back. You can’t demand that everyone involved do what you want, when you want it – and then get upset when it doesn’t happen.

We aren’t saying that you should relent to everything. Buying a business is a huge decision and you should have timely access to all of the information you need to make an educated decision. What we are saying is you need to be flexible and patient in a way you may not be used to.

Are you thinking about buying a business and want to know more about what the process looks like? Would you like to know more about the timeline of a business transaction? 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

Buying A Business? The Unconventional Questions You Should Be Asking

Published August 9, 2021

When you start looking at businesses to buy, you will probably have a list of questions you’ll want answered by sellers. The typical questions, like “why are you selling” and “how long have you owned the business” might seem pivotal.

However, there are a handful of more unconventional questions you should be asking that you may not have considered. Here’s a few:

“Why now?”

The “why are you selling” question is an important one, but another very important question needs to be based on the timing of the sale.

Sometimes the answer to both questions is the same – like in the case of a seller who is putting the business on the market because a sudden health emergency will prevent them from remaining a functional owner. This scenario would not indicate issues with the business, rather personal issues with the current owner.

If there is not an impending emergency forcing the sale, then the answer to the “why now” question will be critical.

If a business appears in good shape, then the “why now” answer should be something along the lines of “well, we’ve reached pivotal markers in the long-term exit plan for this business, and we are ready to move on to other ventures.” The seller in this situation decided long ago on the future sale of the business, and has been readying the business in that time.

If the answer to the “when did you decide to sell” question is “well, we decided recently” – then you should dig much deeper into the business, as a sudden urge to jump away from a perfectly good business should seem suspect.

“How did you come up with your listing price?”

For a seller the evaluation of their business can be tough. They’ve invested countless hours, large amounts of money and tons of energy – and placing a monetary number on something so life encompassing can feel nearly impossible.

A listing price should be based on realistic terms, like the money the business generates – not on the emotional value or the sum of every penny the seller has ever spent on the business.

When looking at businesses be aware that some sellers find brokers who are willing to list the business for whatever the seller wants (no matter how ridiculous) just to have the listing. The prices of these businesses will be highly inflated and there will be no justification.

“If you had unlimited resources, what changes would you implement for growth?”

Sometimes businesses remain stagnant and have limited growth because of lack of funds, sometimes it’s simply an apathetic and burned out owner. Any seller who has an eye on the future and an eye on growth will already have considered this question and have an immediate answer.

If a seller hesitates or can’t come up with a reason, then they may not have been conducting their business with an eye on the future. Not good news for a new owner taking the wheel unless it means it can become a point of negotiation.

When you are looking for a business to buy, don’t just ask the basic questions. Questions like the ones above delve deeper into the motivations and actions of a seller and can tell you volumes about a business. Talk to your business broker about the kinds of questions you can ask that will get you better information. These great questions will be pivotal in those critical first conversations with sellers.

Are you a business buyer who would like to know what other questions you can ask sellers to delve deeper? Would you like to know more about what answers to these types of questions might tell you? Ask us! Please feel free to leave a comment or question here, and we will be happy to help.

Michael Monnot

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

www.InfinityBusinessBrokers.com

Surviving Cold Feet: Advice for Buyers and Sellers

Published August 2, 2021

A business changing hands is a big deal. If you’re buying a business it means you have to write a very large check and you’ve just bought yourself a new job – one where success may not be a sure thing. If you’re selling your business, then you’re about to hand your baby – your blood, sweat and tears – to a complete stranger. You’re also about to be out of a job.

These are some high stakes, and as such emotions can run really high in a business transaction, particularly as you approach the closing table. Guess what? It will probably be very hard to keep from feeling overwhelmed and taking things personally.

Here’s the key to success. As difficult as it might be, don’t take things personally and understand that a decent case of cold feet is completely normal.

Perfectly great business deals fall apart on a regular basis because as the end of the transaction approaches one or more of the parties involved gets a serious case of cold feet, panics and kills their own deal. While there are (on very rare occasions) catastrophic issues that will derail a deal at the end, for the most part a deal that dies near the closing date dies for no good reason at all. It typically comes down to nothing more than cold feet and hurt feelings.

With lots of money changing hands and lots of decisions needing to be made – it can be easy to get overwhelmed and decide that it would be far easier to walk away. The stress of a small business transaction can cause even the most seasoned entrepreneur to crack. Understand that the high stress, raw emotions and second-guessing are coming and that it’s a totally normal way to feel as you approach the end of a business transaction.

Here’s a couple of tips to help you make it to the closing table:

The old adage that it’s best to sleep on a big decision exists for a reason. Knee jerk reactions are rarely productive, so if you’re starting to feel panicked and like maybe this whole transaction isn’t for you – take a breath and step away from it for a minute. Talk to your business broker about your concerns. They’ve been down this road many times, and can help you see the forest through the trees.

No business transactions happen overnight, so the months and weeks that have led up to this point have given you all the information you need to make an intelligent decision. If yesterday you were fine with the deal and overnight you’ve decided it’s a terrible idea – you probably need to go back and think about all the reasons why you made this decision in the first place.

Have patience with yourself. No matter which side you’re on, this is a big decision and it’s completely normal to feel a little overwhelmed. What you shouldn’t do, however, is let that overwhelm cause you to kill a perfectly good deal – one that would have met the goals that you’ve been trying to meet for months.

Are you nervous about buying a business? Do you have questions about what selling your business might be like? 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

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

5111-E Ocean Blvd
Siesta Key, FL 34242

Ready To Take The Plunge? Buying An Existing Business

What do you need to do to get started if this is the path for you?

It’s A Process: Why Business Buyers Need To Be Tough

Buying? Why Flexibility And Patience Are Your Best Bet

Here’s where having this type of personality can hang you up. The process required to buy a business.

Buying A Business? The Unconventional Questions You Should Be Asking

However, there are a handful of more unconventional questions you should be asking that you may not have considered. Here’s a few:

Surviving Cold Feet: Advice for Buyers and Sellers

Here’s the key to success. As difficult as it might be, don’t take things personally and understand that a decent case of cold feet is completely normal.

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