Selling On Your Own? Prepare For Disaster

Posted in Business Broker Why & How, Sellers Articles

Published August 30, 2018

You are an accomplished business owner, it’s just that the time has come to move on to the next chapter of your life – so you’ve decided to sell.

 

Why pay a business broker a commission to do something as simple as sell your business, right?

 

Well, you can try – but it’s probably going to end as an unmitigated disaster. A disaster that could spell the death of your business, forcing you to lock the doors and walk away with nothing. Here’s why:

 

 

In order to sell your business, you need to find a buyer. In order to find that buyer, you need to get the word out that you’d like to sell. So you snap a few pictures of the front of your store, clearly showing the address and post the listing for your business online. You might even go as far as to put a “for sale” sign up. The consequences of this marketing campaign? Your staff immediately knows you are looking to sell, and mistakenly assumes that it means the business is in deep financial trouble. Your entire staff quits, en masse, looking for more stable work – taking all of their regular customers with them. Your customers see your “for sale” sign and make the same assumption that your staff did – that you’re in trouble. They see the demise of your business as inevitable and so they take their business somewhere with a future.

 

If you manage to find a buyer without your staff and customers finding out – say a word-of-mouth, friend-of-a-friend kind of thing, you might think you’re out of the woods. This buyer seems great, so you start divulging all kinds of proprietary information because you believe they will be taking the helm in the near future. It turns out, however, that this buyer doesn’t have the cash they initially led you to believe they had, and they want you to seller finance an enormous part of the purchase price. Worse yet, you find out they are the brother-in-law of your biggest competitor, and because you never realized you should have asked them to sign non-disclosure agreements you have no legal recourse when they take your “secret sauce” to your competition.

 

Ok, so you’ve managed to avoid the blunders we’ve discussed so far. You have a buyer who doesn’t work for your competition and your staff is still in the dark. You’ve never written up a contract for a business sale, but you’ve written up contracts for other things so it should be easy, right? Your plan post-sale was to set up another shop that sells something different – but in the same area because this is where you and your family live. Unbeknownst to you, you misunderstood a non-compete clause and just signed a purchase contract that means you can’t open your new shop within 100 miles of where you currently live.

 

Selling your business doesn’t have to be a disaster or a nightmare. You may not want to pay someone for their help, but you have to think about the cost of a commission this way. Even if you don’t end up in one of the horrible situations we’ve discussed here, selling a business is a full time job. That’s why an entire industry of professional business brokers exists. You need to be paying attention to your business in the very critical time when your current numbers mean getting the most from the sale. You don’t want your business to be suffering when buyers are looking – the amount of money you stand to lose could be enormous. Get the right help.

 

A qualified and experienced business broker knows how to confidentially market your business so your staff and customers stay in the dark. They know how to spot unqualified buyers and make everyone signs the appropriate non-disclosure forms so you and your business are protected. They’ve helped write hundreds of purchase contracts, and they know when something isn’t right. They’re your buffer during negotiations and your sounding board to help with the decisions you need to make. And if you’ve ever tried to sell a business without one, you know they’re worth their weight in gold.

 

Get the most from your business sale without your business or your sanity falling apart. Hire the right help.

 

Are you thinking about selling your business and now think it might not be a good idea to go it alone? Do you have more questions about what business brokers bring to the table? 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

www.InfinityBusinessBrokers.com

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Buying Or Selling A Business? The Right Help Makes All The Difference

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

Published August 13, 2018

Looking for a business to buy or thinking about selling the business you currently own? Either side of a business transaction is a tough and complicated road – and definitely one you shouldn’t travel alone.

 

 

So, who can help me with business transactions? Business brokers can.

 

A business broker is a professional who helps people buy and sell businesses. They are well versed in the transaction process, and know all of the potential pitfalls so you can avoid them.

 

Few people outside of the business transaction world truly understand what business brokers are and what they do – so here are the answers to some common questions about our industry:

 

What do business brokers do?

If you are a buyer a broker can help you search for businesses to buy, help you narrow down your choices, help you put together an offer, help you negotiate a purchase contract, help you with any necessary licensing and permitting and help you work with the seller as they show you the ropes.

 

If you are a seller a broker can help you prepare your business for sale, help you come up with an appropriate listing price, confidentially market your business, vet potential buyers and get non-disclosure agreements signed, show your business to potential buyers, help with negotiating a purchase contract, help you with the closing process and help you find your next business venture after you sell.

 

How are business brokers licensed?

Business brokers are typically licensed by their state’s real estate division, but what they do isn’t real estate. To put it simply state licensing divisions can’t possibly have a separate license for every applicable industry, so in some cases a profession is lumped in with an industry that is similar. That is the case with business brokers. They typically hold a real estate license or a real estate broker’s license.

 

Who is, and isn’t, a business broker?

The buying a selling of businesses and the buying and selling of property or homes are two completely different animals. Property and homes are sold by broadcasting the availability of the property/home to everyone, everywhere. Businesses, on the other hand, need to be sold confidentially – so the approach is completely different. Listings for businesses are extremely vague, and only after the signing of non-disclosure agreements will the name and location of a business for sale be divulged. It is this vastly different approach of sales techniques that makes it critical for business buyers and sellers to work with experienced and qualified business brokers and not real estate agents trying their hand at selling businesses.

 

Many professionals outside of the business transaction industry make ill-fated attempts to dabble in the buying and selling of businesses on the side. While unqualified real estate agents are the typical offenders – we’ve seen dentists, lawyers, accountants and the like they their hand and fail. The business transaction process is complicated, and to be successful you need to know what you are doing. Part-time business brokers aren’t business brokers, so avoid them. If your good friend or brother-in-law is a real estate agent who thinks they can successfully help you buy or sell a business, they can – by referring you to the appropriate professional. All your real estate agent needs to do is refer you to a qualified business broker, and when your transaction closes your real estate agent gets a referral fee for doing nothing more than making a phone call – and you get the right help.

 

Who does a business broker represent?

While your business broker is your advocate during the transaction process, they don’t technically represent one side or the other. They are transaction brokers, and therefore represent the transaction itself. For this reason it is possible in many states for a business broker to work for both the buyer and seller’s side.

 

How does a business broker get paid?

Business brokers make their money by earning a commission when a transaction closes, paid for by the seller’s proceeds of a sale. This is why buyers who spend years searching for businesses without ever taking any serious steps toward buying one (like making an offer) might have trouble getting an experienced broker’s attention. Serious buyers and serious sellers are easily distinguished from those who are just kicking tires.

 

How can I find a good business broker?

Finding a good broker can be a bit of a challenge, but there are some obvious signs that can distinguish the good from the bad. Great brokers get the vast majority of their business from referrals – from past buyers and sellers who were impressed with their work, from colleagues in other industries who’ve referred friends and family to great success – so ask a potential broker how much of their business comes from this good-review-based source. Good brokers also respond to calls and emails in a realistically timely fashion, have lots of connections within the industry and have some practical experience under their belt.

 

The message here is the road to buying or selling a business is best traveled with the right help – so finding an experienced and qualified business broker should be your first step!

 

Are you thinking about buying or selling a business and want to know more about what business brokers do? Do you have more questions about the transaction process? Ask us! Feel free to leave comments or questions 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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Weighing Advice: How Business Buyers Should Deal With “Help”

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

Published July 23, 2018

Everyone is an expert, right?

 

We all have that person in our life who talks confidently about every subject while knowing little to nothing about the things they speak of. They string together urban legend, conjecture and memes from the internet into what sounds like a coherent piece of genuine information when, in fact, it is nothing of the sort.

 

If you are thinking about buying a business and you’ve told the people in your life about this new pursuit, then these fact-free advice givers will come out of the woodwork. Everyone, at one time or another has considered what life would be like as a business owner – and as such almost everyone feels qualified to offer their entrepreneurial advice. You will get unsolicited advice from seemingly everyone: your brother-in-law, the mailman, your dentist, your neighbors. While everyone’s intentions are good – to help you – the information you are given should be taken cautiously. Even the opinions of those you trust, like a very close friend, should be taken within the context of whether or not they actually know anything about buying or running a business.

 

Take, for example, the rent payments on a waterfront restaurant. If you are considering buying a large waterfront restaurant, especially one in a desirable location, then you should expect the rent to be high. That high rent, however, when compared to comparable businesses in the same area will probably be right in line with what you should expect to pay. Also, a desirable location means more customers in the door – meaning you will be perfectly capable of paying that high rent so long as you don’t run the business into the ground.

 

What unfortunately happens to many new buyers is they mention this high rent rate to someone who knows little to nothing about either the restaurant industry or the area in question and they balk at the number, exclaiming “That’s ridiculous!!! Don’t buy that business!” when the opposite is true. It’s a great business and falls right in line with both the buyer’s budget and their goals for business ownership.

 

There are many, many examples of instances where bad advice has driven a buyer from a perfectly good business – particularly when discussing matters of price. We’re not telling you that you shouldn’t listen to the opinions of those you trust, we’re just saying that you should consider their expertise in the matter before you take their advice as doctrine.

 

Who should you listen to? Your business broker is a good source of information because they eat, sleep and breathe business transactions and a good broker will know their local industry inside and out. Your business broker is also a reliable source of information because it is in their best interest if you succeed in your new business. You may refer them the business owners or business buyers you meet if you are happy in your business decision, and when the time comes to sell they hope you will use them again. A great business broker gets a great deal if their business from referrals and repeat clients.

 

You should also listen to the advice of your business transaction attorney and your business transaction CPA (if you end up using one) as they too know the industry well.

 

Notice we said “business transaction” attorney and CPA, not any attorney or CPA. Your friend who practices labor law and your uncle who does accounting for a rental car company aren’t going to be able to give you good advice about buying a restaurant because that’s not what they do. It would be similar to asking your car mechanic his advice about whether or not you should undergo back surgery – it’s not his area of expertise.

 

The most important person you should listen to? Your own common sense. Take the information you gather from all of your sources, weigh the validity of their opinions based on their real expertise in the matter – and then decide for yourself. You are the one buying the business, not the peanut gallery, so if the decision makes sense to you then that’s all that really counts.

 

Are you looking at businesses to buy and getting all kinds of advice at the same time? Do you have questions about some of the advice you’ve already been given? Please feel free to leave your questions and comments here, 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

www.InfinityBusinessBrokers.com

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Buying Or Selling A Business? Don’t Underestimate Training

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

Published July 2, 2018

Have you thought about what happens after the keys change hands and the buyer and seller walk away from the closing table?

 

The transaction process isn’t over yet – now the training period begins.

 

When a business is sold, part of the purchase contract will typically cover a training period of some sort where the seller will stay on with the business until the buyer can be sufficiently trained to take over the helm. This is an all-to-important part of the business transaction process, so it is in everyone’s best interest to keep the training period productive and amicable.

 

The best way to start the training period off right is to keep the negotiations during the sale process as friendly as possible. Both parties can do this by always using the business brokers involved as intermediaries. It might seem inefficient to always send questions or comments through a third party, but what starts as an innocent phone call to the other side can quickly devolve into a deal-killing fight. Keeping things friendly for the time period before your are stuck working together will make the start of training much easier.

 

If you are the buyer in the situation, it may be tempting to walk in on day one and completely change everything to your liking. This is a huge mistake for two reasons.

 

One, you shouldn’t make any changes to a functioning and profitable business until you know everything there is to know about the business. Then, and only then, will you know what parts of the business are making it profitable and successful and what aspects can be changed without causing any unforeseen damage down the line.

 

The second reason your should hold off on any changes is for the seller’s sake. The seller has a wealth of practical knowledge about the business you just bought, and it is absolutely in your best interest to get absolutely all of that knowledge before the training period is over. By coming in and changing everything, you are essentially telling the seller you don’t think anything they’ve done is worth learning about – a move so insulting that you will probably have an incredibly hard time getting any of that precious practical knowledge. Try to remember that this business was a huge part of the seller’s life, so treat them with a bit of compassion and wait until they are officially gone before you implement any big changes.

 

If you are the seller in the transaction, the training period can be difficult for a number of reasons. First, once you’ve left the closing table and the keys have changed hands, it can be very tempting to mentally check-out. This is a very bad idea, especially if your deal has seller financing involved (which many deals do). If you check-out and can’t properly train the new owner, the their chances of success (and you seeing the rest of your money) are probably not very good.

 

Another training pitfall for sellers is getting offended when the new owner wants to make changes. It can be extremely difficult to keep your emotions in check, but you must remember that this business no longer belongs to you, so the new owner can do what they please. Do your best to complete the training period amicably so that your business can carry on successfully without you.

 

Whether you are the buyer or the seller, it is critically important for the survival of the business in the long term that the training period happens – so do your best to work together.

 

Have you bought a business and the training period wasn’t what it needed to be for you to successfully take over? Are you selling your business and you have questions about what the typical training period will be like? Please feel free to share your experiences or leave us questions 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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Finding The Right Business: 4 Questions To Ask

Posted in Become a Business Owner, Buyers Articles

Published April 9, 2018

When you decide that the next step in your career is to buy a business and try your hand at entrepreneurship, there will be many decisions ahead of you. Possibly the most important decision will be what business would be right for you.

 

Yes, we know. Everyone who’s ever dreamed of owning their own business has a dream business in mind – but focusing on that business alone, without some careful thought, can lead to disaster down the road.

 

Why? Dreaming about owning a business and actually owning that business are two completely different animals.

 

Long before you look at listings, you need to ask yourself the following four questions so you can focus your energy on the right business – not a dream business.

 

 

1. What would you love to do?

Business ownership is a life-encompassing affair. You are going to work long hours, probably take less vacations and you will be on-call 24/7. The only way to mentally survive such a grueling schedule is to have a real passion for what you do. It has to get you out of bed every morning and push you through late nights. This is where the dream-business can be of some use. Why is it your dream business? If you’ve always dreamed of owning a cafe, but in those daydreams you aren’t making coffee – you’re sitting at a table going over numbers, this can tell you volumes about what kind of business you would actually enjoy (hint, it’s not a cafe).

 

2. What have you done before?

The learning curve of business ownership is a steep one, mostly because any mistakes can cause a severe change in your bottom line. Many budding entrepreneurs make the mistake of buying a business they know almost nothing about – and are then stuck both learning a brand new industry and learning how to be a business owner at the same time. You need to stick to your knowledge base and the skill set you already have if you want to be successful. Hate what you’ve done for work in the past? If escaping your current industry is the reason you are considering business ownership, then think more broadly about what your skill set includes. If you’ve spent the last decade working as a mechanic for an auto dealership, but you have a gaggle of old cars at home that you love to restore in your spare time – then perhaps an auto restoration business and not a standard garage would be for you.

 

3. How much money do you have?

Business prices can fall anywhere on the map, but there are some industries and some business sizes that will be off your list for financial reasons right out of the gate. You need to get your capital in line before you start seriously looking at businesses because the amount of money you have to spend will determine what you even get to look at. You also need to be honest with yourself at this stage and realize that a traditional loan is probably not going to happen, and even if seller financing is a possibility you will have to bring a substantial down payment to the table to get a deal done.

 

4. What would your local market support?

Although an extreme example, you wouldn’t start a water skiing business a hundred miles from the nearest body of water – but you get the idea. Some local markets just won’t support some types of businesses. You need to look at the local business market and do a bit of research on the industry you are considering. Is the industry growing? Have a large number of businesses in that industry gone out of business recently, or are they thriving? If your plan is to buy a business and change it to a different market, is that market already saturated or is there room to grow? Say your plan is to buy any small restaurant and convert it into a homemade donut place, but the town you are considering has ten Dunkin Donuts and five Krispy Kremes. Probably not the best market.

 

When you’ve asked yourself these questions and have a fair grasp on the answers, your next step would be to have a conversation about the right business for you with an experienced business broker. A good broker has been down this road many times, and can give you great advice on what the local market will support and ideas of businesses that would fit your skills and goals that you may not have considered. They can then show you the businesses currently for sale that would meet your criteria and you can find the business that is right for you.

 

Are you thinking about buying a business, but after reading this think that your “dream” business may not be right for you? Do you have questions about what industries your current skill set would apply to? Ask us! Feel free to leave us a comment or question 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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3 Reasons Why Buying A Business Is Better Than Starting One

Posted in Become a Business Owner, Buyers Articles

Published April 2, 2018

What’s the best path to entrepreneurship?

 

Most think of the startup in some suburban garage – but is that really the smart way to go? The short answer? Probably not. Buying an existing business, however, is typically the better route to business ownership. Here’s why:

 

1. Starting a business is a risky and expensive venture.

 

Startup businesses are tricky. You are testing new waters – with your concept, with your location, with your operating procedures, with a brand-new staff. In the unlikely event that all goes as planned and everything works in your favor, you will still need an enormous amount of capital to lease a new location, renovate that location to suit your needs, equip your location, buy inventory, pay for permitting and licensing – the list goes on. Then you will also need to have enough capital to sustain your business, your staff and yourself for the time frame it takes to start turning a profit, which can be several months or more.

 

If you buy an existing business, many of the risks and financial challenges of a startup have been removed. With an existing business, you are buying a proven concept, location, operating procedures, a trained staff – and in most cases a training period with the existing owner to get you on your feet. The amount of capital you need might seem substantial, but remember that it would be far more expensive in the long run to find, furnish, equip, stock and run a business with no history of success than to just buy one with that laundry list already complete.

 

2. There’s no such thing as a “startup business broker”.

 

One of the best parts of buying an existing business, especially if this is your first foray into business ownership, is you can have expert help along the way. By having an experienced and qualified business broker by your side you have expert advice to guide you through your business search and help you find a business that fits with both your goals and available capital.

 

Don’t see any businesses on the market that appeal to your entrepreneurial dream? Sometimes buyers have a specific type of business in mind, but the goals they have for business ownership would require that they end up in an entirely different industry. A conversation with a good broker will help you decide if the business you think you want to have is really the business you should have to get the kind of life you are looking for. If you are starting a business, you can seek advice from anywhere and everywhere, but there won’t be anyone to guide you in the same way a broker can if you buy.

 

3. A business you buy comes with everything you need.

 

Like we discussed before, starting a business means having to hire and train a brand-new staff, finding then leasing a new location, buying all the equipment and furniture, finding and purchasing inventory, and setting up licenses and permits – if you can even get them. An existing business comes with everything, including in most cases the former owner for a while (for a training period to help you learn the ropes). This will take an enormous amount of pressure off of you as a new business owner, allowing you to focus on learning your new business without all of the additional headaches that a brand new business would require.

 

If your goals for the future include business ownership, seriously consider buying an existing business instead of starting from scratch.

 

Have more questions about the differences between buying an existing business and starting one from scratch? Are you curious about what types of businesses could be right for you? Ask us! Please feel free to leave us a comment or question 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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How Do You Find A Good Business Broker? 2 Questions To Ask

Posted in Buyers Articles, Sellers Articles

Published March 26, 2018

Whether you are a business buyer or a business seller, the best way to navigate the business transaction process is with the help of an experienced and qualified business broker.

 

How can you tell if the broker you’ve been talking to is experienced and qualified? Let’s start by finding out how a person becomes a business broker in the first place.

 

To become a business broker, someone first needs to have an interest in helping people buy and sell businesses. Business brokers come from all kinds of backgrounds – they are former entrepreneurs, former finance professionals, former real estate brokers, etc. The experience of business ownership and a background in finance are obviously helpful, but aren’t necessary.

When a business broker first starts out, they must obtain the same license a real estate agent needs (there is not a special license for just business brokers, so they get lumped into the real estate industry). Once they have this license they need to work as a business broker/agent for someone who is a licensed broker (just like a real estate agent works for a real estate broker) for two years and then they are eligible to become a licensed broker on their own.

 

It is not necessary, however, for a broker to ever get the “broker” license if they continue to work with someone who is already licensed this way. As such, if the business broker you are working with doesn’t have the “broker” license this is not a bad thing. In fact in many instances broker/agents work within business brokerage firms for many years with great success without ever getting a “broker” license.

 

When you first begin speaking with a business broker, you can ask them about what kind of license they hold, but the answer to this question is not as important as you might initially think.

 

Lots of people have a real estate license but never actually sell a house – and, unfortunately, lots of people also try to dabble in the business market. We come across realtors, lawyers and even doctors who try to be business brokers “on the side”.

 

As a buyer or a seller, you want to stay well away from these part time brokers. Buying and selling businesses is a complicated process, and you are going to want someone who actually knows what they are doing helping you through your transaction.

 

You wouldn’t let your family practitioner perform plastic surgery on you – so don’t let a real estate agent or your dentist try to help you buy or sell a business.

 

Now that you know how a person becomes a broker, what are the questions you should be asking to find the right one? There’s two that can tell you a lot:

 

1. How many deals have you closed in the last year?

A broker who regularly closes deals is probably well established and clearly knows what they are doing. They have connections within the industry, they know how to successfully negotiate business transaction contracts and they are able to work with commercial property owners to get their clients a lease.

2. How many clients have referred you to a friend or have used you more than once?

A broker with repeat or referral clientele is someone that others have enjoyed working with. The experience was so positive they would trust that broker with their personal connections. Like a great review of a business, referrals and repeat transactions speak volumes about what your experience with that broker will probably be.

 

The message here? Ask the right questions and you will quickly find out whether the broker you have been speaking to is the right person to help you with your transaction.

 

Are you looking for a business broker and have more questions about how to find the right one? Want to ask us about how many deals we have closed or how many referrals/repeat clients we have? Please feel to leave us a comment or question here and we will be happy to get your questions answered.

 

 

 

 

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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Preparation And Selling Your Business – 3 Steps You Should Take

Posted in Business Broker Why & How, Sellers Articles

Published January 29, 2018

How important is preparation when selling a business?

 

The short answer? Preparation is everything.

 

 

Let’s pretend that you are buying a car. You find two nearly identical cars – same price, make, model, year and color. One seller has the title ready to go, the car had been recently detailed and the interior smells nice. The other seller isn’t sure where the title is, the car is full of junk and doesn’t look or smell like it’s been cleaned in this century. Which one are you going to buy? The answer may seem obvious, but in many cases business sellers try to pass off their wildly unprepared business as one ready for buyers. This is a big mistake. First impressions are extremely important, so your business needs to be ready for buyers before buyers ever come through the door. 

 

How do you prepare a business for the market?

 

Organize Your Books

Business buyers aren’t typically buying the building associated with your business, and the value of a business isn’t based solely on tangible assets like furnishings, inventory and equipment – your listing price is, for the most part, based on your cash flow. How can you prove that it’s worth what you say it is? A big box of crumpled paper isn’t going to cut it. Neither is a poorly photocopied P&L and the last page of a tax return. You need to get your books in order, and you need to do it now. If you don’t know where to start, ask your business broker for advice or use the services of a CPA who is familiar with the accounting needs of a business that will be for sale.

 

Clean It Up

Back to the idea of first impressions – if you own a bar with carpet on the floors that have never been cleaned and rafters full of cobwebs you’d better believe no buyer in their right mind is going to pay you top dollar. The mess and smell aside, a filthy location or one in considerable disrepair tells a buyer that you haven’t taken care of your business the way that you should – meaning there are probably many more skeletons in the closet that they won’t be willing to pay for. Give your business a thorough once-over and fix what’s broken so you don’t squander that all-important first-impression.

 

Decide On Answers To Buyer Questions

When you are selling your business you are making a sale – and like any good salesman you should both know and be able to communicate your product (your business) to buyers. Talk to your business broker about what types of questions a buyer might ask and then think through how you might answer those questions. You want to look professional and polished in your first meeting or conference call with a buyer, not like a deer in headlights.

 

If you are considering selling your business and aren’t even close to a point where buyers can come in the door – don’t worry. Your job has been running your business, not selling it, so you will need to adjust your focus a bit in the weeks and months before your listing goes live. Use your business broker to help you prepare and you will be ready for those first looks.

 

Do you own a business with the proverbial big box of crumpled paper and would like some tips on how to start organizing your books? Would you like to know more about what buyers are typically looking for? Ask us! Leave 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

No Comments »



Buying Or Selling A Business? What A Government Shutdown Means For You

Posted in Buyers Articles, Sellers Articles

Published January 22, 2018

The government is shut down, again.

 

It’s happened more times than it should in recent years, to the point that most people feel like it’s so old hat that it really doesn’t have much impact on their lives.

 

 

However, if you’re in the market to buy a business or are currently trying to sell your business, the government shutdown could have a major impact on your transaction.

 

Why? The Small Business Administration, or SBA for short.

 

Traditional lending institutions like banks are typically gun-shy about financing small business transactions, especially with the financial crisis of 2008 relatively fresh in everyone’s mind – so many buyers turn to the SBA in order to finance the purchase a business when a full cash offer is not an option. Many sellers also take steps to ensure that their business would qualify for SBA loans when they are preparing to list, as the possibility of SBA financing can be a draw for potential buyers.

 

SBA financing is very common in the small business world and can be a very useful tool to get a deal to the closing table, but since the SBA is a government entity it requires the government to be up and running to be able to use it. A government shut down means the activities of the SBA are suspended – so no financing can go through.

 

If you are looking to buy a business, the government shutdown and suspension of SBA means you may have to put your buying plans on hold until the government is back up and running. If you are a business buyer or seller with a deal in the works, it may mean a pause in your transaction until the funding can go through.

 

What should you do if you are a buyer or seller and are concerned about the impact of the shutdown? Talk to your business broker. We have, unfortunately, been through this before, so we can talk through any and all potential options and decide on the best course of action for your particular circumstance. Overall, the best advice would be to stay patient and understand that this political tool doesn’t last forever. SBA will be back up and running soon.

 

A note to sellers – you should be patient with the other side of your transaction because it isn’t their fault the financing has been put on hold. A buyer who needs the SBA to buy your business can’t do anything if the SBA isn’t open. 

 

Will the shut down last forever? No, it won’t. Will this kind of thing happen again? Unfortunately, it probably will. Stay calm, try to be patient and discuss options with your broker.

 

Are you looking for businesses to buy and want to know about funding options besides the SBA? Are you a seller who wants to know more about finding out if your business would qualify for SBA financing? 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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Selling A Seasonal Business? How To Make Your Books Look Good

Posted in Sellers Articles

Published December 7, 2017

If you live in a seasonal area, then you understand the flow of money in your business community.

 

For instance, the many beach communities of southwest Florida are completely dead in the summer when the heat soars – but come October when the weather up north starts to turn cold – it feels like the population multiplies by a factor of five. Restaurants that had four tables total on a July Saturday night now have a two hour wait on a December Tuesday.

 

 

Businesses in seasonal communities understand the ebb and flow throughout the year – working incredibly hard during the peak months in order to survive the bleak off-season.

 

When the time comes to sell a business like this, it can be challenging to show a potential buyer who isn’t from a seasonal community how well your business is doing when it looks like you teeter on the brink of bankruptcy for half of the year. How do you communicate your seasonal books without scaring buyers away, especially buyers from an area very different from yours?

 

For starters, you need to have legible books they can look at. A huge box of crumpled receipts shoved under your desk is not going to communicate your seasonal business success. Putting your books in order will help immensely in showing your business in the best light possible. Decent financial records will also help you demonstrate that while your business does terribly in the off-season, the other half of the year more than makes up for the slow times. The ability to show this seasonal fluctuation year-over-year, and the ability to show the business continued to grow year-over-year amid those seasonal fluctuations will put a buyer’s mind at ease.

 

Another valuable tool for properly communicating seasonal fluctuations is an experienced business broker who knows seasonal businesses. They will be instrumental in getting buyers from a non-seasonal area to understand your business and the numbers you generate throughout the year.

 

The important message here is you can absolutely show the strength of your seasonal business, you just need good books and some experienced help.

 

Are you the owner of a seasonal business who needs help making their books look good to an out-of-town buyer? Do you want to know how to impress upon buyers the actual health of your business when they’re looking at it in the slow season? 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

www.InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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