be your own boss Archives - Page 12 of 21 - Infinity Business Brokers

Published August 3, 2020

You’re a brand new business owner and you’ve successfully navigated the path of purchasing a business. You took your time and really delved in during due diligence. You paid close attention during training with the seller and took copious notes. You’re pretty sure you’ve got the hang of this new business, and that you know everything about it.

Until you don’t.

Suddenly there’s an unforeseen problem. Something you didn’t find during due diligence. Something that happened out of the blue.

What can you do?

It depends. If a seller purposefully withheld something like a fatal flaw you will likely have some kind of recourse. If this is the case, call your business broker and discuss what options are available.

What if it’s not a secret fatal flaw? Then what?

Roll up your sleeves and get to work. Business ownership is tough stuff, and sometimes no matter what’s being thrown at you – you just have to find a way to persevere.

For instance, say you just bought a restaurant. Shortly after you take over the whole staff quits because they can no longer get away with things the previous owner allowed. Although a potentially rough situation, it can be solved by working some shifts yourself while you hire new staff or temporarily limiting the restaurant’s hours until you can right the ship.

What’s important to remember when you hit those initial and inevitable bumps in the road is no business is perfect and no business is smooth sailing. You are going to encounter problems – your success or failure as a business owner depends on what you do when faced with those problems.

It is also important to remember that the buck ultimately stops with you. If you aren’t willing to work with a staff who wants to get away with whatever they want – it’s not the previous owner’s fault when that staff quits en masse. It’s yours. Deal with the fallout and do what you need to do to get a new staff in place. Business buyers who sit on their hands and blame everyone but themselves are probably going to have a hard time as entrepreneurs.

The message here is you can research all you want and learn all you can about your new business and still end up with unexpected problems right out of the gate. Just remember that with some thought and hard work you and your new business can overcome anything.

Are you considering buying a business and want to know what recourse you might have if a seller hides issues? Do you want to know more about how you can find and deal with potential issues during due diligence? Ask us! Please 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

When To Jump: Thoughts For Business Buyers In 2020

Published July 13, 2020

These are interesting times, to say the least. Making the call to buy a business and jump into entrepreneurship was a difficult decision before the pandemic invaded all of our lives – now it seems like an impossible decision to make.

Should I really buy a business right now?

If living through this madness has you rethinking all of your life choices and has you seriously considering making the jump – then you still can if you do so with the right planning and a good dose of flexibility.

If you were seriously considering buying a business before the madness, the madness doesn’t necessarily mean you should stop. Whether entrepreneurship was the plan then or suddenly now, you should take another look at the businesses you consider and ask this question – will this business help me meet my goals for business ownership?

Defining your goals for business ownership will be pivotal to finding the right business for you – one where you can be successful and achieve the life you are looking for. Think about how much money you need to make to keep your life moving. Think about what you want your work week to look like. Think about how many hours you are willing to work everyday. Think about how much money you want to realistically spend right now. Think about jobs and industries where you think you would do well.

These considerations will be very important, as will the ability to be flexible. You might have your heart set on a specific type of business, but buying that business will be an exercise in futility if that business meets none of the goals we discussed above. The current world we live in will also play a part in what business will meet your goals. For instance, if you are a buyer without a lot of free cash available, it’s probably not a good idea to buy a business that can be affected by shutdowns – you won’t have the cash to sustain it.

The message here is that business ownership is still in cards if you want it to be. There are good businesses for sale and with the right planning and forethought you can find one that will meet the goals you have for your life.

It probably also needs to be said that not only will you need to be flexible with your initial business choices, but also with the process. There are new protocols to keep everyone safe – so meetings will need to be planned ahead of time or take place via conference call or Zoom, masks will need to be worn for on-site visits, documents will be signed electronically instead of in person and requests may take a bit longer than they once did.

If you want to buy a business, you can. If you have questions – about the businesses that are currently for sale, about the changes to the business buying process, about how you can find a business that meets your goals – 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
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

Dream Bar Or Huge Mistake – Meeting Your Goals For Business Ownership

Published July 6, 2020

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 industry – you 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 any comments and questions, we would be happy to help.

Michael Monnot

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

Can I Still Buy A Florida Business In 2020? Yes! Just Plan Ahead

Published June 29, 2020

Living in southwest Florida definitely has its perks, even in the middle of a pandemic. We still have year-round summer, white sand beaches and a relaxed lifestyle.

Our small businesses have adapted to the new normal and the business market has many new opportunities for those who may be ready to make the jump to entrepreneurship. If this year’s events have you rethinking your life choices, now is a great time to buy a business.

If you live outside of the area and are considering a move to the sunshine state as an entrepreneur, here are a few pointers you should consider before you make a trip down.

Buying a business is absolutely nothing like buying a house.

Many folks come to the business market with the mindset that the process will be very much like buying a house – but nothing could be farther from the truth. If finding a home is the goal of your trip, you might call a local real estate agent and ask them to set up a dozen or so homes to see a day or so before you jump on a plane, but if you try to do the same thing with buying a business you will be completely out of luck.

You must, must, must plan ahead.

The process to buy business has many steps, and starts with contacting a business broker. This first step should come long before you’ve even bought your plane ticket. You and the local broker should have a conversation about your goals for business ownership, your work experience, how much capital you are planning to invest and the industries that interest you. Your broker will then send you listings that fit with your goals and will ask you to review those listings and narrow down your choices. Once you have two or three listings that appeal to you, you will be asked to sign a non-disclosure agreement (NDA) for each listing. Once the NDA is signed and submitted to the listing broker, you will be sent the marketing package – complete with the name and address of the business in question. You and your broker will review each package and come up with a list of questions to ask the sellers, which you will have an opportunity to do once a conference call is set up. After the conference call, if you are still interested in the business, a tour of the physical location can be arranged but will have to be coordinated between your travel schedule, the schedule of the business (for confidentiality reasons buyers can only see a business before or after hours when no employees or customers are present), the schedule of the sellers, the schedule of the brokers involved and considering the social distancing measures that must be in place.

Doesn’t sound like something that can be done or thrown together in a day, does it? That’s because it can’t.

It is very common for a buyer to call us on a Friday to say they are catching a plane the next day to visit some businesses over the weekend – and then they are upset when we tell them their request is impossible. If you are serious about buying a business you will need to go through the proper steps and plan visits to businesses long before you set foot on a plane. Business transactions are inherently complex and require lots of moving parts, so you need to both plan ahead and be flexible.

But I’m planning on writing a very big check to buy a business, why can’t you accommodate me?

It’s not that we are trying to be difficult; it really is that last minute requests are completely impossible – especially right now. We also don’t want to waste your time taking you to businesses that don’t fit with what you are hoping to get from business ownership. The process works, and if you follow it you will be better set up for success in your new business venture.

Are you considering a move to southwest Florida? Do you have more questions about the process and want to know how to get started? Would you like to know what measures we currently use to ensure safety during site visits? Ask us! Leave us 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

Is It Crazy? Help With Business Listing Prices

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Published June 22, 2020

If you’re new to the business buying marketplace you will probably notice something right out of the gate as you begin your search – listing prices seem like they’re all over the map.

How are you supposed to figure out if the listing price is fair?

While initially confusing, the listing prices of businesses can and do make sense in most cases – you just need to know how to look at the number the seller wants objectively.

Your best bet as a new buyer is to get some professional expertise on your side. Talk to a qualified business broker about some of the business prices you’ve seen and ask for their input. The listing price of a business can be a very nuanced thing. It’s often based on cash flow, but sometimes metrics like industry standard multiples, values of equipment and inventory, what comparable businesses have recently sold for, etc. can be part of the equation that leads to a listing price. Experienced eyes will be necessary to tease out the important details and help you decide if what a seller wants is fair – or well beyond the realm of reality.

Why would someone list a business for a crazy high price? Sometimes those sellers are more interested in being told what they want to hear than they are interested in selling. Sometimes they are listing just to see if someone will make them an offer. In some cases these sellers will negotiate with buyers who come up with a fair and justifiable offer, but if they won’t – it’s probably time to move on. An extreme price can be a red flag that it will be very difficult to put a deal together.

A realistic seller will be able to back up the number they’ve asked for. They will have the financial documentation that shows their request is legitimate. These sellers are willing to negotiate when presented with a fair offer, because ultimately a business is only worth what someone is willing to pay for it. This does not mean that you as a buyer should throw extreme low-ball offers to see if they stick. A small business is someone’s blood, sweat and tears. The personal attachment to all of that work means that it is relatively easy to offend a seller to the point that they will refuse to work with you. Just as you would like the listing process to be fair – you need to return the favor and offer a fair price.

The message here? Enlisting some professional guidance will be essential in helping you navigate the listing prices of the businesses on the market. Once you’ve determined that a business is what you want – put together a fair and justifiable offer.

Are you just starting your business search and want to know what’s out there? Click here to search for current listings! Would you like to know more about how businesses are priced? 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
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

What Can You Realistically Afford? Thoughts For Business Buyers

Posted in Buyers Articles

Published June 15, 2020

We all have big dreams. A bigger house. A nicer car. Lavish vacations. Your own private island. What keeps these wonderful flights of fancy in the realm of dreams is the fact that we just can’t (currently) make them happen.

Big dreams can become a big problem in the small business market. Why?

New buyers will often consider businesses that are completely out of their price range – like drastically so.

Why do many new business buyers have unrealistic expectations? It may be, in part, because of the way people buy homes.

When you go into a bank to get a mortgage, you might walk out with a pre-approval for $750,000. Does that mean you have $750,000 in the bank in cash? Nope. It just means the bank is willing to loan you that amount because they can take back your new house as collateral if you don’t pay them back.

Small business transactions don’t work that way. There are financing options if you don’t have a huge amount of cash available – but that financing is very different than what you see in the housing market. You might be able to get a loan from the Small Business Administration (SBA) or from the seller of the business via seller financing – but no matter where you get your loan you are going to have to put up a large down payment and prove that you have the capital to both get through the transaction process and sustain yourself as the new owner of the business.

What do we mean by that? The business buying process can be expensive. If you get a loan from the SBA, they are going to require an appraisal of the business – one you as the buyer have to pay for. There are application fees for SBA, as well as application and licensing costs associated with the licensing requirements for your new business. If your future business is in a commercial space, your new landlord is going to want first-last-security and to see your financials to assure them you can not only pay those initial costs, but be able to pay your rent going forward. You might need capital for payroll in the first few weeks or months. The list can be long and pricey.

This doesn’t mean you can’t fulfill your dream of buying your own business. It just means you need to be realistic with what you can afford. If you only have $50,000 to spend, you shouldn’t even look at a business that is $750,000. It can’t happen. What you can do is find an affordable business that you can grow. Smaller, more affordable businesses can be very successful – and have lots of room for that all-important growth.

If you want to know what you can realistically afford, ask an experienced and qualified business broker. They can look at your current financial situation, your goals for business ownership and your previous experience – then assist you with finding the right business to buy. The right business will both meet your goals and keep you from extending yourself beyond what is currently financially possible.

Have you always wanted to buy a business but aren’t sure what you could afford? Would you like to know what types of businesses are currently on the market in your price range? 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

Get Ready For The Google: Why Buyers Need To Think About Their Online Reputation

Published June 8, 2020

You have the capital ready, you’ve found a business you like and you are ready to write the check. The seller finds out who you are and then suddenly the deal is dead. What happened?

They Googled you.

When you buy a small business, you are buying something that the former owner spent their blood, sweat and tears for. You are getting the employees they care about, the business reputation they built. Who you are as a person, what you bring to the table in terms of stability and the ability to cement the future of the business they care about matters. It matters more than you may have considered.

While you and a business seller don’t have to be best friends or even agree on most things that occur outside the realm of running the business, what your online reputation says about you absolutely has the potential to sink a deal.

Try this. Look yourself up. What’s out there with your name attached?

Most people don’t have the celebrity-esque issue of having negative news articles all over the internet. That isn’t the problem. What most people have is their social media life. Your Facebook page. Your YouTube channel. Your Twitter account. Your blog. While this realm of your social life was probably intended to be for personal use only, it will absolutely impact the way a business seller thinks about you. It might even make them decide they don’t want you to buy their business.

But my LinkedIn page is very professional. Isn’t that the one that matters?

Not really. While most people aren’t posting long political rants or inappropriate memes on their “professional” online profiles – many people do on “personal” sites. The problem? Those personal thoughts, jokes and comments can be just as easy to find as your carefully curated professional page.

What can you do about it? Google yourself long before a prospective business seller does. See what’s public and make it private. Find what, in retrospect, wouldn’t be considered appropriate for a professional reputation and delete it. Clean up your online presence – immediately.

You would do a similar purge of your online presence before applying for a new job, as it is common knowledge that employers absolutely look people up – and there are many, many stories of poorly thought out posts sinking employment opportunities. The same protocol should be in place when you buy a business because you are essentially buying yourself a job. Do the work ahead of time and curate your entire public online presence before it’s too late.

Have you considered your online reputation s a business buyer? Would you like to know more about what business sellers are looking for in a prospective buyer? 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

What Does The 10% Look Like? Thoughts For Business Buyers

Posted in Buyers Articles

Published June 1, 2020

As a business buyer, it is critically important that you stand out from the crowd. Why?

Up to 90% of prospective buyers who enter the business market never buy anything.

If you consider this statistic from the perspective of a seller or business broker it looks like this – 90% of the buyers who initially contact you will wind up a complete waste of your time.

If you are serious about buying a business, you need to make yourself stand out as a part of that all-important 10% of buyers. How do you do that? Think about who someone in that 10% is.

What does the 10% look like? Well, like everyone. A business buyer ins’t best described by demographic data – a business buyer is simply someone who buys a business.

While this statement might initially sound obvious, preconceived notions about what a business owner looks like can perhaps unconsciously hinder those who could truly be successful entrepreneurs from entering the marketplace. If you’ve always been unhappy with your professional life and have always felt like you could do better if you were the one in charge – you probably could. Running your own business isn’t any harder than going to a job you absolutely hate. The difference is at your own business the buck stops with you. If you have the drive, grit and creativity to push your business into tomorrow you can be just as successful as the person who climbs the corporate ladder for someone else. The difference is when you get to the level of success you were looking to attain – as a business owner that success is yours.

Ok, so I hate my job and I want to be my own boss. How do I get myself into that 10%? It’s incredibly simple. Act like a serious buyer.

Serious buyers are willing to sign non-disclosure agreements without a fuss. They understand that they are receiving privileged and confidential information about someone’s business and they respect that confidentiality. Serious buyers take the information they receive and put together a fair offer that has justifiable terms. They don’t waste everyone’s time by throwing in a ridiculous low-ball. Serious buyers also know that the best way to find out what they need to know to make an informed decision is by asking great questions.

The message here? The world of small business ownership is diverse. Your actions are what make you an entrepreneur, so use those actions to make yourself stand out.

Are you a business buyer who would like to know more about the process of buying a business and standing out from the crowd? Please 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

Buying A Business In The Post-Quarantine Economy

Published May 25, 2020

Can you still buy a business in the post-quarantine economy? Absolutely. The keys to success are adaptability and creativity.

Everyone can agree that the past few months have been difficult, unprecedented and just plain strange. If you were thinking about changing career paths before the quarantine hit, or if the time trapped in your house made you rethink your life choices – you might be wondering if now is the time to make the switch to entrepreneurship.

It certainly can be. While some segments of the economy are currently struggling, there are a few key industries that are booming. Think about what people are using/needing and you can come up with a whole host of ideas. Here’s a few:

grocery stores

liquor stores

health care and health care supply businesses

waste disposal

cleaning services

laundry

auto repair

delivery services

The list of newly named “essential businesses” is a long one. If you were thinking about making the switch to business ownership then a business in the “essential” sector is a good buy.

If you had your heart set on a different industry, you might still be able to make it work by adapting your business model and the business you purchase to fit with the times. For instance, if you’ve always wanted to own a restaurant you could perhaps find an existing restaurant to buy and change the model to a take out counter that also offers retail food options like fresh baked bread and other staples – making your business a one-stop shop.

The key to success in 2020 is adaptability and creativity. If you have that and are willing to put in the hard work – business ownership can be a very successful path.

What about all of the news about struggling small businesses? Yes, there are businesses out there who will not make it back. Many were faltering anyway, or didn’t have a business plan or model that could survive the shut down. The silver lining? Those struggling businesses might be a good buy for future entrepreneurs. Some businesses that have decided to remain closed permanently will likely be offered as asset sales, while those who don’t show the best numbers over the last few months might be purchased for a discounted price. Talk to your business broker about the pros and cons of snapping up a currently struggling business to see if the effort it would take to pull the business back from the brink aligns with your goals for business ownership.

Are you considering the jump to business ownership? Do you have more questions about what industries would be a great buy right now? 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

Is Now The Time To Buy? Making The Jump To Business Ownership In 2020

Published May 18, 2020

This year has been a strange one. The news changes minute by minute, and the pandemic still overshadows daily life. You’ve had a chance to reflect for the first time in a long time – and now you know entrepreneurship is your path.

Is this a good time to make the jump to business ownership? Absolutely, yes.

It may have seemed like the world ground to a screeching halt, but business has been happening all along. Essential businesses like manufacturing and delivery services have been booming. Small businesses with the creativity to pivot to fit the times have done well.

Many small businesses have had to scale back, but they are ready and able to scale up as soon as the situation allows.

What does this mean for you as a future entrepreneur? Now is a great time to consider buying a business.

Why buy? Starting from scratch, from the ground up – is tough when times are great. Right now a start-up would probably be even more difficult to get off the ground. People aren’t looking for new. They’re looking for a return to what they know and miss. An existing business gives them that.

Buying an existing business also gives you as a buyer some stability as well. You know the business model works because the business is currently running and generating cash flow. You know it’s a business that is well-run with an eye on growth and creativity because it survived the rise and fall of the economy. These proven features of an existing business just don’t exist with a start-up.

I want to be an entrepreneur, but I have my own concept that I think would work. Why would I buy something else?

Your concept might be great, but you can’t know for sure if it works. If you’ve considered entrepreneurship, you should consider purchasing a business instead. You get handed the keys to something you know can and does work, you get training from the seller so you know what to do and you get an existing brand that people will be excited to come back to. If you really have your heart set on your own idea, perhaps the smarter move in these unprecedented times is to buy an existing business in an industry where you could make your concept a reality. Take some time to figure out how to implement your idea within a business model that is tested and successful, then roll it out carefully to see if it really works.

This year might be a strange one, but it can also be a year of positive change. If you’ve always dreamed of business ownership, now is a great time to get started. Talk to an experienced and qualified business broker about your goals for business ownership and they can help you search for the perfect business for you.

Have you always wanted to own your own business but don’t know where to start? Has 2020 made you rethink your life choices? Would you like to know more about the process to buy a business? Please 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