Mark Zuckerberg has had a rough couple of weeks. The lack of trust in his business practices landed him in the hot seat before Congress, and that’s never a good place to be.

While the leader of a gargantuan company like Facebook might not have much in common with a small business owner who is looking to sell – there is a major lesson that can be learned from the recent Facebook debacle that can help a seller get to a closing table successfully.

The major lesson? Trust and honesty are key.

A business buyer is going to write you a very big check, and for that check they are expecting to get exactly what you told them they were buying.

All small businesses are complex, and as such those businesses have issues – big and small. There is never a perfect business, but it certainly would be easy to sell if it was – so many sellers make the mistake of trying to create an illusion that their business is perfect.

We get it, issues feel like failures and might decrease the amount of money a buyer is willing to give you. Hiding flaws, however, is a big mistake for a couple of reasons. First, if you had been honest and upfront with issues, buyers may have accepted those issues as part of the deal. If the issues come out later, then you’ve lost the trust of those buyers – and your chances of making it to closing will be slim to none.

Think you can hide those skeletons in the closet? Think again. A major part of any small business transaction is due diligence, where a buyer gets to go through every aspect of your business with a fine toothed comb. If there’s a problem, they’re going to find it, so it’s a far better strategy to be open and upfront. Maintaining trust in a business transaction is key simply because it’s a complicated process with a lot of money changing hands.

The same goes for things you might be slightly embarrassed about and so you gloss over them or don’t mention them in discussions and negotiations. You need to clearly communicate what your business is, how it makes it’s money, how it works day-to-day and what any problems might be. Omitting information or choosing to make light of things a buyer really needs to know is both unethical and a deal killer.

Transparency is crucial to your ability to sell. Trying to hide skeletons or not clearly communicating the aspects of your business a future owner needs to know will surely kill your deal – so play it smarter than Facebook and keep your buyer’s trust. 

Are you considering selling your business, but are worried about the skeletons in the closet? Would you like to know what types of issues buyers are usually willing to overlook? Please feel free to leave any questions or comments here.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Getting your business ready to sell? You’ve probably been busy assembling your financial records, fixing broken equipment and the like – but have you considered the virtual presence of your business?

Today’s consumers spend more and more time online, and business buyers are no different. They will want to see that your business is embracing the digital age and is primed for growth in the digital marketplace – so is it?

If you’ve got no online presence to speak of or all you’ve got is a poorly maintained business Facebook page – you need to act now.

Any business on the market should have a decent website, and a quick and simple website is fairly easy to do. Services like Squarespace and Wix let you pick an already well-designed template, buy a domain name, insert your own information – and poof, your business is part of the digital age.

It doesn’t need to be complex. The contact information for your business, the location and the hours. A blog where you add updates about the products or services you offer. Menus, lists of products or services offered and their prices. It really is that simple.

Is having a website really that important? Absolutely, yes it is.

When a business buyer looks at a business with no online presence they are going to wonder what else the current owner has let slide. If you haven’t even bothered to tap into the digital marketplace then you haven’t been utilizing every tool at your disposal to help your business grow.

Another digital marketing avenue you should consider is reviews. Anyone considering buying your business is likely going to look you up on review sites, so ask your customers to post reviews about you. Negative reviews should be taken as constructive criticism – no matter how crazy they seem – and you should respond to negative reviews in a calm, positive manner to ask the unhappy reviewer what you could do to fix their issue. This is a good idea on two fronts. One, it will show anyone reading the bad review that you care and tried to remedy the situation and two – you might be able to turn that negative review into a positive one.

If you are selling your business, embrace the digital age. It will show potential buyers that you care about the future and growth of your business and that you have taken the steps to market your business in both the physical and online world.

Are you thinking about selling your business and don’t currently have a website? Would you like to know how to improve your online reviews? Please leave any questions or comments and we would be happy to help.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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If you’ve considered selling your business sometime in the near future it can be tempting to get into a two-weeks-notice frame of mind. Remember when you worked for someone else and turned in your notice? You mentally checked out then and there, right?

Here’s the thing – if you want to get the best return on the investment of time, energy and capital you’ve put into your business over the years you need to act like you are going to own your business forever and like you are going to sell tomorrow.

I’m not going to own my business forever, that’s impossible.

Sure, but if you start every day as a business owner with the mindset that you will always be the owner you will probably make decisions about your business with an eye on long term goals and future growth. You’ll focus on marketing campaigns meant to bring in new customers. You’ll make improvements in your equipment that will improve customer experiences. You’ll make sure the people you hire are there for the long term and are both qualified and willing to learn to do things the way they need to be done. What does this eye on the long term lead to? An improved bottom line. An improved bottom line that will be very appealing to buyers when the time does come to sell and a bottom line that will directly benefit you as an owner while you remain in charge. A win-win.

I’m not ready to sell tomorrow, so why would I act like I am?

Putting yourself in the “I’m going to sell tomorrow” mentality will do a couple of things for you and your business. It will force you to make repairs and conduct regular maintenance and cleaning – things that keep your customer base happy. It will force you to keep your financial records in order – which will make your accounting easier as well as make your records easy to read for buyers down the road. It will also force you to keep an eye on potential for growth – both to improve your bottom line now for your own benefit as well as creating a selling point for potential buyers.

You want to get the best return on everything you’ve put into your business, so keep the two-week-brain on hold. Prepare your business like you’ll be there forever and like you’re selling tomorrow.

Are you considering selling your business because you’re totally burned out? Would you like to know more about how you can maximize the return on your business investment? Ask us! Leave questions or comments and we would be happy to help.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Selling your business is tough. It’s complicated, it’s stressful – and you have to deal with business buyers who want everything now and to pay you as little as possible. Sometimes it’s not fun.

One part of selling your business that you may not have considered? Flexibility.

What do we mean by that?

When you are the owner of a business, you are used to running the show and having control over the day-to-day. When you sell your business, you have to let other people – like buyers and brokers – into your realm. It can be frustrating, but by having a flexible mentality about the selling process you can get yourself to a closing table.

What do you need to be flexible about?

You are going to have to be flexible about conference call times, meetings and site visits. Site visits particular, because to maintain confidentiality you will need to show your business either before or after business hours when your staff isn’t around.

You are going to need to be flexible on your selling price and on the terms within the purchase contract. Neither side is going to get everything they want, so a flexible attitude in regards to the negotiation process will help you immensely. Your listing price shouldn’t be your rock bottom number, so you should expect initial offers to be lower – in many cases much lower. Just look at any offer, no matter how low, as a jumping off point for negotiations.

You need to be flexible with the due diligence process, which occurs after you accept an initial purchase offer. During due diligence the buyer will be requesting information, lots of information. You will need to produce your tax returns, financial documentation, bank statements, contracts, leases, payroll records – the list goes on. It can be difficult at times to deal with what feels like constant requests and endless lists of questions you feel like you’ve already answered. Patience is key in this part of the process. Try to see due diligence through a buyer’s eyes. They are trying to turn over every stone because they are making a very big purchase and don’t want to be surprised.

You need to be flexible about closing dates and training periods. Any buyer who plans on success will need the previous owner of the business to show them the ropes. Most training periods are two weeks, but it can vary from transaction to transaction and you may end up consulting with the buyer of your business for longer than you think is necessary. It can also be difficult during the training period because the business is no longer yours and decisions are no longer yours to make. Just remember that you are providing for the legacy of your business and that the training period is only temporary.

The key to the successful sale of your business isn’t really your numbers or the pictures your broker takes – it’s you. A flexible and patient attitude will get you to a closing table faster than anything else, so mentally prepare yourself for the journey ahead.

Are you thinking about selling your business and want to know more about the process? Would you like to know more about training periods for buyers? Ask us! Leave questions or comments and we would be happy to help.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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If you own a small business, especially a retail business – the seemingly unending domination of Amazon and the other massive retailers might look like a death blow for businesses like yours on the main streets of towns everywhere – but it doesn’t have to be.

Amazon (and the rest) might be able to compete with you on price, but that’s all they’ve got. While there is no way you can win the price war, you can save your business and the future prospect of selling that business for a financial return by redefining what you are.

You aren’t a small business owner anymore – you’re a community business owner.

What do we mean by that? There are two very simple ways you can beat back a giant corporation, and these changes are something that this next generation of younger consumers are looking for – buying local and a good customer experience.

The “buy local” movement can set your business apart from those around you if what you are offering is something unique to your area. Try adding products by other local businesses or artisans, coming up with your own local take on something you already offer or joining community shopping programs like farmer’s markets to help advertise your business to those who value spending their money close to home. Buying local can also mean sourcing the products you use or sell from those in your local community – and advertising that fact to potential customers. By teaming up with other businesses in your community and supporting each other within the buy local movement you can give mindful consumers choices they can’t find online. 

Creating a good customer service experience might seem like a basic premise of business success, but in the new retail environment this can mean something slightly different. By incorporating local products and services, teaming up with other local businesses and offering your products at community events like markets or festivals you are improving the customer experience because those who buy from you can feel good abut their purchases – because those purchases go right back into the local community. Focusing on community business building can absolutely help your brand and reputation. Other ways you can incorporate this community-building-experience for your customers? Get out there. Help with local charities. Participate in community events. Donate goods or services to local schools. Do all the things a giant like Amazon wouldn’t know to do because they don’t live in your community.

Making these changes now also has an added bonus of making your business very appealing to the next generation of small business owners looking to buy their way into entrepreneurship. A business with very strong community ties will look far better to a buyer than one locked in a futile price war with corporate giants.

The ever-evolving nature of the retail space shouldn’t scare you, but it should motivate you to change with the times. Turn your small business into a community business and then make sure your use every marketing tool available (events, social media, a blog, etc.) to let your buy-local customers know about the changes you’ve made. We can stick it to Amazon yet.

Do you own a small retail business and want to know more about how becoming a community business might help you build your brand and get you a great return on your investment if you sell? Please leave any questions or comments here and we would be happy to help.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Let’s face it. The traditional brick and mortar retail space is evolving into a digital marketplace – and if you own a brick and mortar retail store you might be feeling panicked about what the future means for your business and your chances of selling down the road.

Don’t freak out.

There are two very simple steps you can take to ensure that your business has a future in the digital age – and as a bonus these steps will also be a major selling point when buyers come looking.

#1 Create an online store

Any business website should incorporate some kind of digital shopping experience, no matter the industry. Even if you don’t want to go the order and ship route, you can at the very least have your goods and services (with prices) listed on your website so a customer can shop your store to see what’s available. In the age of Amazon and Etsy, no one wants to wander around town, visiting multiple stores in order to find something specific. They want to know if you have it and they want to know what it costs. A menu, images of products, a virtual tour of the sections of your store with the products they contain – any way for customers to peruse your offerings online will help bring them to your brick and mortar location. An online shopping platform will also be a major selling point to potential business buyers, as it shows your tenacity and drive to stay ahead of market trends – keeping your business growing and evolving as the market changes.

#2 Offer cashless options

When was the last time you saw cash? With the vast majority of the larger retail and service companies embracing digital payment options like ApplePay and tap & pay credit cards, those small businesses who hold the line and require very specific credit cards or only cash are going to have a serious problem down the road getting customers in their doors. A merchant services plan today will absolutely pay off down the road as it will capture those customers who might have passed your business by because you didn’t honor their cashless payment. You also want to make it clear on your store front, at your registers and online that you offer multiple cashless options. Merchant services are a major selling point to buyers for many of the same reasons as an online store – it shows you know that the market is changing and have changed your business practices accordingly.

Retail business may be changing, but it doesn’t mean that your retail business is dead or can’t sell. It just means that you need to embrace the future and update your business practices as the market moves.

Do you own a retail business and want to know more about how an online storefront and cashless options can draw potential buyers? Have you already implemented changes like these and have an experience to share with other business sellers? Please feel free to leave any questions or comments here.

Michael Monnot

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

www.InfinityBusinessBrokers.com

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