buy a business Archives - Page 19 of 29 - Infinity Business Brokers

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

The Right Advice At The Right Time: The Role Of Attorneys In Your Business Transaction

Posted in Buyers Articles, Sellers Articles

Published May 11, 2020

Let’s start this one off by saying we are absolutely not advocating an attorney-free business deal. A business transaction involves contracts that you will need to sign and a lot of money changing hands – so the assistance of an attorney is absolutely necessary.

Business transactions, however, are also inherently very complex and businesses themselves involve a decent amount of risk. If buying a business gave you a 100% chance of getting a fabulous return on your investment then that’s what everyone would do. Buying and running a business means a fair share of risk and plenty of hard work.

Before you bring your attorney into the mix (which you will definitely need to do), ask yourself this important question – what do they do for a living? They protect you from any and all risk.

It is impossible for your attorney to keep you from any and all risk and also give you a thumbs up on a business. It is because of this conflict between what a lawyer does for a living and what you are trying to do (buy or sell a business) that we are suggesting that you keep their advice to only the portions of your deal that they specialize in.

What do we mean by this?

Your attorney doesn’t need to be giving you advice about price. Determining what a business is worth in the current market isn’t what they do. They don’t know how to derive value from cash flow or how to price a business based on what comparable businesses have actually sold for.

Your attorney shouldn’t have a major role in negotiations. At the end of the day, a deal is happening between the buyer and the seller. These two parties will have a tough time coming to a consensus – even when using intermediaries like business brokers who act as buffers. Adding more voices and opinions to the mix by having attorneys intimately entwined in the negotiations might mean no deal will ever be reached. It becomes a “too many cooks in the kitchen” scenario.

I get why my attorney might cause problems, so what should I use them for?

Again, your attorney will be instrumental in putting together contracts and advising you of your risks in association with these contracts. You should absolutely listen to what they have to say in regards to these parts of a business transaction that are very much their specialty. You should listen to their advice, weigh what they have to say based on the fact that their job is to protect you from risk – and then use common sense to make up your own mind about what you should do.

A note here. You should also be using a business transaction attorney for this role. Your family law attorney (for example) isn’t going to understand your business contracts the way a business transaction attorney does. It would be like going to the pediatrician to get plastic surgery – it isn’t what they do. Finding and using a business transaction attorney with some experience in this very unique process will be pivotal to success.

Keeping a business transaction as simple as possible is the only way to successfully navigate a process that is inherently complex. Use each advisor for the role where their advice is the most appropriate and you will have a far better chance of transaction success.

Are you a buyer or seller who wants to have their attorney involved in everything? Do you have more questions about why this might be a problem? Ask us! Leave any 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

All The Way To The Finish Line – Why You Need A Great Broker

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published May 4, 2020

Both parties have agreed on the purchase contract, you’re finished – right?

Not quite, and if you have a business broker who isn’t going to push your deal all the way to the finish line – then your deal could be in trouble.

A contract does not mean the deal is done, it just means one step in the process has been completed. We have a very high closure rate once our deals get to contract – 70-80%, but most business brokers can’t get anywhere near that number.

Why?

Once the contract piece of the puzzle is done, many brokers walk away and let the deal fend for itself. They let things like licensing, SBA loan issues and follow-thru with details fall by the wayside – and when this happens a minor issue can become a major deal-breaker in no time.

A transaction isn’t closed until it’s closed.

Why would any broker let this happen? Once the contract is put together, most brokers think that their work is done, but the last few details are often the most important. Our process is different because we do an immense amount of pre-due diligence. We have all of the ducks in a row and have rooted out and dealt with many of the issues that come up at the end long before they become potential deal killers. Then, we don’t stop until the deal is done.

Let’s focus on just one of the often-overlooked last-minute details to give you an example of the importance of getting all those final ducks in a row:

If you as a buyer have no idea what the licensing requirements are for the business you are about to take over, how can you possibly have all of those requirements complete on the day you get handed the keys? Any business transaction means that at the very least all licensing must be transferred from the old owner to the new, and many of these licenses come with an inspection requirement that needs to be fulfilled before the business can serve customers. What does that mean if you don’t complete the necessary applications and inspections before the day you take over? You can’t open the doors until they are all complete, so having a broker who is on top of issues like licensing will be crucial for a successful transaction.

If you are a seller who offered seller financing, then it is in your best interest for the transition to the new owner to go smoothly. An incomplete licensing, permitting or inspection requirement will put the transition and the future of the business in jeopardy (meaning you won’t be able to get paid). Having a broker who is proactive on the licensing front (and all other fronts, for that matter) will mean a more successful transition to the new ownership and a far better chance for the new owner to find success right out of the gate.

Ask your broker how many of their deals make it to closing once the contract step has been reached. Their answer to this question will tell you all you need to know about their follow-through and whether or not you’ll be able to make it to the closing table.

Are you buying a business and want to know more about the process to transfer licenses? Are you selling your business and would like to know what aspects of your transaction will need to be followed all the way to the end? Please feel free to leave any questions or comments and we will be happy to help.

Michael Monnot

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

Looking To Buy? An Essential Business Might Be For You

Published April 27, 2020

It’s something that we’ve discussed in these articles many times – the need to base the decision of what business would be right for you not on aesthetics, but on whether or not the business meets your goals for business ownership. Many of us have a picture in our head of what our ideal business would look like, but that doesn’t mean that type of business is going to be a good choice.

Now that we are all living in the pandemic-led business climate – that picture in your head may need to shift.

Shift to what? An essential business.

Our current reality has thrown a bright spotlight on those businesses that are essential for everyone – to eat, maintain basic hygiene, get adequate medical care, protect themselves, etc. What does this mean to you if you’re a business buyer? That perhaps a wise choice for business ownership is a business that everyone needs. Delivery services, food and beverage based retail, online shopping and the manufacturing of supplies are all good avenues right now.

The ability to pivot in times like these is often the difference between success and failure. Although you may have had your heart set on a particular type of business, reality might mean you need to shift your business choice based on achieving your business ownership goals – instead of chasing the picture you had in your head.

This doesn’t mean you can’t buy your dream business. It does mean you need to reevaluate why that business was your dream business in the first place.

Were you considering that type of business because it seemed like a fun lifestyle? The perceived lifestyle of a business owner is often drastically different from reality – so ask yourself what about that perceived lifestyle is so appealing? Is it the ability to set your own hours? Is it the ability to work from home? Is it the amount of money you will be able to make? Again, what are you hoping to get out of business ownership? The answer to that question might point you in a direction you hadn’t considered – and the smart buy would be an essential business in that direction that meets your goals.

What if the business I’m considering isn’t currently functioning as an essential business, but could be? As the new owner you can absolutely implement your own ideas that can both help your local community and keep your business in good shape.

Are you looking at buying a cafe? Perhaps you could implement a drive-up system for take-out or hire a temporary delivery driver. Are you looking at a retail store? Stock the items that people currently need and offer curb-side pickup and/or delivery as well. Are you considering a manufacturing business? What does the local economy currently need? Could you divert some of your resources to fulfill that current need? You get the idea.

As a soon-to-be small business owner you need to be thinking about how to keep your new venture in the black in these unprecedented times. Creativity and the willingness to pivot when a sudden shift is needed will likely mean the difference between success and failure in the new normal. The same attributes will also mean a possible reevaluation of your prospective business choices.

Are you considering buying a business but aren’t sure now is the right time? Does the current situation have you thinking an essential business might be right for you? Please feel free to contact us today. We would be happy to help you make the best decision for you. Leave us any questions or comments!

Michael Monnot

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

Child Of An Entrepreneur? How To Follow Your Own Path

Published April 13, 2020

If you are the child of an entrepreneur, then you probably grew up in the family business. You might have napped in the back office and done your homework at your parent’s desk. Your chores might have included taking out the trash or washing dishes. Now that you are an adult, your parents might assume that your path in life includes taking over that family business so they can retire.

What if that’s not what you want?

You aren’t alone. Not everyone follows in their parents footsteps, and if you’ve found a separate passion along the way that you want to pursue, you should. The key to a happy life is doing something that you love, and (hopefully) with some discussion your parents will see things the same way.

There’s no way my parents are going to be okay with me doing anything else. Now what?

First of all, have you even asked? Any family with a family business needs to have a discussion about the future of the business and the possible succession to the next generation. If you haven’t had this discussion yet, no time is better than right now.

If you really don’t want to take over the family business, and your parents are counting on just that – there is a solution where both sides win.

Approach your parents with the idea of selling the business and then using some of the proceeds to buy a business that you can be passionate about, thereby preserving the entrepreneurial legacy of the family while at the same time pursuing your own dreams.

By selling their business they can also get a financial return on their investment of time, energy and money while simultaneously helping you on your own journey to business success. If they see that they can potentially both make some money and give you the key to your own happiness – what parent isn’t going to want that?

Start the conversation now, then talk to an experienced and qualified business broker (like us) about what comparable businesses have recently sold for – and what businesses currently on the market might meet with your goals for business ownership.

Are you the child in a family business and want to know what comparable businesses have sold for? Do you have questions about what type of business you could buy? Please feel free to 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

https://news.gallup.com/opinion/polling-matters/216674/business-gets-bigger-even-americans-prefer-small.aspx

Smaller Is Better – How Buyers And Sellers Can Compete Against Big Business

Posted in Buyers Articles, Sellers Articles

Published April 6, 2020

According to a Gallup poll, the small business model is still favored by the public – so businesses large and small can help themselves by trying to stay true to the “smaller is better” model.

“Forces are pushing U.S. companies toward mergers, consolidations, acquisitions and growth. Yet, Americans continue to show strongly negative attitudes toward ‘big’ business, coupled with a continued strong attitudinal affinity for small business. This poses an essential dilemma for large enterprises attempting to build and maintain a thriving business-to-consumer customer base.

The basic data are clear. Gallup’s most recent research shows that 70% of Americans have ‘a great deal’ or ‘quite a lot’ of confidence in small business, more than three times the 21% confidence rating for big business.”

What can someone who is looking to buy a business or someone who is considering selling do with this information?

Think about why people prefer small businesses over huge corporate conglomerates. Attention. Customer service. The ability to understand local community needs. Those are the areas where smart small business owners can focus in order to set themselves apart from the big businesses that could otherwise easily destroy them with volume pricing. The way you put those ideas into practice is by making your business as accessible and customer-experience focused as possible.

If you are buying a business, you need to make this consideration when you take over the helm. Regardless of the old owner’s practices, you need to focus on customer service and community involvement. If your new business doesn’t have a website or social media presence – create one. Make you business accessible both on and offline. Come up with creative marketing strategies that will position your new enterprise as a pivotal member of the community. Sponsor related community events. Donate money or supplies when the occasion calls for it. Join local festivals and parades. You need to keep your focus on the local customer because their loyalty to you is your only weapon against the intrusion of huge corporations into your industry space.

If you currently own a business and are considering selling now or in the near future – your focus needs to be nearly the same as someone just about to take over as a new owner. You absolutely must have a decent website, one that gives real-time information about the goods and services you offer. You need a social media presence that you update several times a week, if not daily. You should be growing your business always, even if your near-future plan is to sell because a business with a solid path toward growth is going to fetch a much better selling price than a business that is stagnant. The creative marketing strategies above can and should be used to solidify your business in your area as a community business.

Big business will only win if small business stops paying attention to what matters most – local, loyal customers and their ability to access your business how and when they want to. Online presence and community presence will put the business you buy and the business you hope to sell in a great position to succeed.

Are you thinking about buying a business and were worried about how a small business can compete with the industry giants? Have you considered selling your business and want to know more about how implementing the ideas here can help your sale? Ask us! Leave any questions or comments here and we would be happy to help.

Want to read the Gallup article? Click here:

Michael Monnot

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

Pandemic Making You Question Your Life Choices? Why Now Is The Time To Buy A Business

Published March 30, 2020

It’s an uncertain time. A global pandemic, the closure of everything from businesses to parks and a constant stream of terrifying information. While we all hunker down for the foreseeable future, it might seem like current circumstances should put your future dreams on hold.

Guess what? If your dream is business ownership – you don’t have to wait.

This time away from normal life might be giving you a chance to rethink – well, everything. Are you really happy on your current path? Is there something you’ve always wanted to do but life got in the way? Have you always envisioned life as the owner of your own business, waking up each morning to do something you love instead of just punching a clock?

Maybe now is the time to have a conversation with a business broker about what types of businesses would meet the goals you have for business ownership. Then, instead of endlessly scrolling on Instagram you could be searching for the perfect business – the one that would set you on the path to the life you’ve been dreaming of.

Think it’s impossible to buy a business right now because of Covid-19? It’s not.

Why?

First, the buying and selling of businesses is the job of business brokers. Business brokers don’t have their own licensing category in terms of professional regulations – so they are licensed as real estate brokers. The good news is in most states real estate is considered an essential service, meaning business brokerages are currently operating – albeit remotely.

Next, the vast majority of the business buying process can be done without breaking social distancing guidelines. Business searches can be completed via your laptop from your couch. Conference calls and video meetings are always available, and quite frankly something we already do with regularity. Documents can be shared securely online. Business site visits can be done via virtual tour. Our brokers can even arrange in person contact or on site visits if absolutely necessary, as we have implemented protocols whereby appropriate social distances are kept in place, no one shakes hands and all common surfaces (like door handles) are cleaned both before and after.

Make use of this time away from the day-to-day grind to decide if you really want your old life back once all of this is over. Spend your free time searching for businesses, talking to the owners of businesses you like and getting yourself on the path to business ownership.

Have you always wanted to own your own business and this pandemic is making you question your life choices? Do you want to know what types of businesses are in your price range and would meet your goals for business ownership? Ask us! 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

Buying A Business? How Much Of A Project Do You Want?

Published March 23, 2020

If you are in the market to buy a business – you probably already have a bit of an idea what you want. A dream industry, a long-sought location or a passion project turned entrepreneurial goal.

Ok, great – you know what you want. That’s step number one. Now, the questions get a bit harder.

Once you enter the business search process, you will likely find a number of businesses that might be a good match. How do you decide which one is the right one?

Here’s where a big factor comes in, one you may not have considered.

How big of a project do you want?

What do we mean by that? Like anything in an open market, businesses can run the gambit from wildly successful and exquisitely organized to lightly congealed and barely successful. Circumstances from even the far ends of the spectrum could end up a great buy for a particular buyer – you just need to decide where you want to fall on that spectrum. A wildly successful and exquisitely organized business is going to probably cost a lot up front – but you won’t have as much of a project to contend with. Similarly, the opposite end of the spectrum will get you a business for a great price – but you might need to do a lot to get that business to a good place.

To decide where you fall on that spectrum, think about what your goals are for business ownership. If you have a bit more capital to invest and are looking for something stable – look for businesses that have great numbers, great reviews and many years of existence. If your goal is to make the most of your money and you like a challenge, then something nearer the barely successful end of the spectrum might be right for you. A bit of effort – some re-branding, a few staffing and protocol changes, perhaps some remodeling, a marketing plan, retooling of customer service – these are the things you may have to do to get a red-line business back in the black. An entrepreneur who wants a serial-entrepreneur lifestyle (one where you buy a faltering business, grow it to a certain metric and then sell for a profit before finding your next venture) would be well-suited for this lower end of the spectrum.

How can you decide how much of a project you want? Think about what will make you happy day-to-day.

Do you want to just go to work and keep it simple, or are you someone who would be bored with that and needs a challenge? Once you decide, talk to an experienced and qualified business broker. Discuss the amount of capital you are willing and able to invest, as well as your optimal project-level. They will be able to take this information and find businesses that will be a good fit.

Are you considering buying a business but hadn’t considered how much of a project you are willing to take on? Do you need help finding a business that will fit with your goals for business ownership? Ask us! 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

Are You Being Ignored? 3 Ways A Business Buyer Can Stand Out From The Crowd

Published March 16, 2020

There are a lot of potential business buyers out there. So many, in fact, that around 90% of people who talk to brokers and sellers about purchasing a business never do. What does this litany of tire-kickers mean to the 10% of buyers who actually want to and will buy a business? It can be really difficult to get anyone to take you seriously.

How do you pull away from the pack and let the other side know you’re for real?

Be Upfront

Business brokers get calls every day from prospective buyers, but what you as a buyer need to realize is the 90% have muddied the waters. Most business brokers aren’t going to give you the time of day if it appears to them like you aren’t serious – it isn’t worth their effort or energy. Your initial conversations with a broker will be a vetting of sorts, where you will be asked about the amount of capital you have available to invest in a business, your work experience and your goals for business ownership. If you are evasive or vague with your answers, it will immediately send up red flags for the broker. Someone who is serious about buying a business will be forthcoming with the amount of capital they have because it would be foolish not to. They will also be willing to talk about their experience and goals because that’s the only way a broker can really help someone get the right business. Why would you waste your time as a buyer looking at businesses you could never afford or are completely ill-prepared to own?

Don’t Drag Your Feet

One of the most important qualities an entrepreneur must have to be successful is the ability to be decisive. Eternal back-and-forth “I want this business, I don’t want this business” conversations will never get you any closer to your goals of business ownership. It will also do nothing but frustrate the sellers and brokers involved. Once you have the necessary information, make a decision and stick to it.

Be Realistic

There is no such thing as the perfect business, so constantly passing on businesses because they didn’t have perfectly organized records or because the decor didn’t suit your style means you aren’t really sure you want to buy a business. You are buying cash flow, not furnishings and paint colors, so you need to be looking at businesses from a big-picture perspective. You also need to make realistic offers. Coming in with an absurdly low offer tells the seller you have no interest in a real negotiation, and if the offer is bad enough you stand the chance that the seller will refuse to work with you at all.

The message here is if you are serious about buying a business, then you need to take the process seriously and show the brokers and sellers involved that you are ready and willing to put together a realistic deal. By showing your intentions through your actions, you will be able to differentiate yourself from the sea of buyers who will never make it to business ownership.

Are you looking at businesses to buy and it feels like no one is taking you seriously? Would you like to know how to put yourself in the 10% category? Please ask us! 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