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Internet Marketing For Dummies- By a Dummy (Business Broker/Business Owner)

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I am a business broker that works with business owners with the process of buying and selling businesses.  My profession of being a business broker is my own business. I have also owned another business of 20 years.  I am a business broker that has been trying to figure out this “Internet thing” for quite some time.  I think I am figuring out that I will never figure it out.

Internet Marketing Industry

It seems that there are a lot of Internet marketing experts and this industry appears to

Internet Marketing

Photo (c) http://dsm-publishing.com/

still be somewhat at the early stages of a rapidly growing industry.  As a business broker and business owner, I feel a compelling need to try to “figure this Internet thing out’.  Maybe I know more about trying to maximize the Internet than some, but the question of asking a business owner (that is not in the Internet marketing business) if they understand Internet marketing is akin  to asking someone if they are a golfer.  The average golfer may have a handicap of 20-25, Some golfers shoot at professional levels- 0 handicap, some people have never golfed, some have golfed once or a few times, some golf a lot but are still a 30 handicap (the higher the handicap the worse the score).

I am about a 12 handicap.  For Internet marketing maybe I am about a 12 handicap too I dont know.  I may know  more than some, but know there are a lot more that know a lot more than me.   My job involves many discussions with business owners regarding the state of their business as it relates to a potential sale of their business or a possibly buying another business. The  questions I have as a business broker are also questions shared by the plumbing contractor, the print shop owner, the restaurant owner, the card shop owner and the small business owners scattered throughout the world.

10 Internet Marketing Observations From a Business Owner / Business Broker:

  1. The Internet today is so different than it was 10 years ago.  Ten years ago, so many businesses didn’t have websites.  Those that did had these fancy Home pages with lots of “neat stuff”. And the site just sat there.  Now-a-days it is known that a lot of that neat stuff gets in the way of search engines.    A few years ago it seemed if you didn’t show up on google – you didn’t show up, and then came, Myspace, Facebook, Titter, etc. .  I am convinced the internet 10 years from now will greatly different than it is now.  Trying to figure out where it is going is the challenge.
  2. To me , I see the value in Social Media marketing is that it decreases my reliance on Google.  With Social Media customer have another way to find you.  You don’t need to show up on page one of google to be found.  I may be wrong with this line of thinking but this is my perspective.
  3. It feels like everyhting I learned yesterday, is almost outdated tomorrow
  4. I see the question asked so often online- Is anybody making any money on Twitter.  Twitter is growing at 1,000,000 new users per minute 🙂 doesn’t it just make business sense that some are making profit on Titter- I am not yet,  are you?
  5. Is internet marketing another strong way to reach customers, market
    Internet Marketing Business

    Photo (c) vistaphuket.com

    and advertise, or is it so much more.  As a business owner we know we need to advertise and market.  In the past and present we use the Yellow pages, direct mail, radio, maybe TV, trade shows, telemarket, direct sales.  Is it proper to view internet marketing as a very strong means of marketing and advertising or view it as so much more.  I tend to think to view it as so much more.

  6. Is it true that if you can drive mad traffic to your website you could sell ice cubes to an Eskimo?.
  7. Is blogging better than tweeting, is Facebook better than Twitter.  Do I need to post videos to Youtube?  How important is SEO, incoming links, adding more friends, social media buttons/widgets?
  8. Is email marketing dieing, improving, necessary, changing, or being somewhat replaced by social media?
  9. How do I do all that I should be doing on the Internet, without having to bear the cost of “sub contracting” that task out and still run my business.
  10. How will we be accessing the Internet down the road and how does that affect my approach.  It seems a few short years ago accessing the Internet with ones cell phone was a novelty at best.

I am just a business owner who’s profession as a business broker requires significant marketing efforts.  How do you find a business owner that is looking to sell a business.  This is a very confidential event.   How do you find a business buyer that is looking to buy a landscape company, a Towing company or a  Computer Repair shop?  My approach is of to try different things.

I Tweet the businesses I have for sale- I get some follow up questions, I blog about my business experiences- it has driven”some traffic” to my site, I am on Facebook- but pretty weak, I am on Linked-In and a few other social/business sites.  I personally feel value in writing a blog as it allows me control to provide SEO optimized current content to my site.

I certainly am not in a position to provide well grounded advise on this subject but my major point is- Are you a business owner confused about what you should be doing on the internet? – You are not alone.

Are Todays Job Seekers Tomorrows Business Buyers

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In Business Acquisition and Sales  the “pool” of  most future business buyers are currently employed by someone else right now.  The same applies for future Entrepreneurs.   But what about those currently unemployed?

The job market seems to have an abundance of very qualified people chasing a very limited number of jobs.  The number of those unemployed in the US seems like a fairly difficult number to track, but with unemployment in the 9-10% range-depending how you measure or guesstimate  it seems that you have well  over 10,000,000 (ten million) people unemployed here in the United States. Is owning your own business by either starting a business or buying a business a viable option for those unemployed.

Is Buying A Business The Future For You?

Is buying a business or starting a new business the right career path to all of those seeking to “re-find” a career or just get off the ranks of the unemployed.  Buying a business or starting a business is not for everyone, but it can be a very viable option for many.  There are the both mindset obstacles to overcome,  and finacial battles to be won before one can make the transition  from employee or currently unemployed to one that owns and operates their own business.

I personally think overcoming the mindset of  “can I do this?” may be the bigger of the 2 obstacles. To over use a saying- “Thinking outside the box”. Personally I feel there seems to be so many that are “trapped” inside the box, that  thinking outside the box in this situation can be a life changing situation.  I believe that many of those so many qualified individuals that are currently unemployed will consider “going out on their own” and enter the world of entrepreneur by either starting or buying a business.

For example- I am working with a business owner of a small computer service store, assisting him in selling his business.  He is very anxious to sell his store as he has plans to move out of state to be near a friend and join him in a business venture there.  He recently reduced his price to $65k due to his increased interest in moving on.

Buying A Business

Photo (c) lusens.com

He runs a viable one man business, works about 40 hour  weeks, and his business is up over 2009 numbers.  His “Owner benefit” is approximately $70,000.  So are you buying a job that pays you $70,000 a year?  Are you buying a career?  Are you buying the ability to control your career? It can be a nice situation for the right person.

Sending off resumes, searching the job board, going on job interviews can almost turn into a routine that may seem to have no end.- Is it a comfort zone, is it doing everything you can do to find your next career.  I suggest spending a few minutes  looking on a website such as mine Florida Businesses For Sale , or maybe some other larger business for sale websites like www.bizbuysell.com or globalbx.com, or possibly look on Flippa.com to see what sort of businesses for sale are out there, or possibly a website, or e commerce site may be available, what are the cost,  and is it even a possibility based on ones current situation.  I think one should at least allow the concept of buying a business or starting a business to come into the equation.  Certainly owning or running a business is not for everyone, but is it for you?

5   Reasons not to consider starting your own business or buying a business.  – Or maybe you should…

  1. Money is needed to buy a business or start a business–    but do you have any realistic feel of how much it would take.
  2. Ive never bought a business before or started a business before – talk to most all businesses owners that have owned their business for 10+ years and they will also say the same thing.
  3. The economy is doing so bad now, its just the wrong time to try a new venture.- There are many business owners that have and are delaying the sale of their business.  A “pent up” demand is being create.  The workings of supply and demand show that as supply increase prices reduce.And of course also  the choices are more abundant.
  4. Some people are just more prepared to buy a business or start a business.  This is true, but are you one of those “some people”.  When you talk to long time business owners you learn that all the uncertainty that you may have while making this major decision is completely normal.
  5. My Job Searching is  really going well- I think that is great, my decision to “be my own boss” 20 years ago was about controlling my own destiny,  perhaps there are different ways to do that.

My profession involves a lot of time talking with business owner regarding their short and long term business plans.  Many current business owners feel they need to get their financials/ and Sales  back up to a level commensurate to the value they seek from the sale of their business. This is creating somewhat of a pent up supply   I also speak to many potential business buyers and understand that everyone’s situation is so different. Available money, family, location, other personal matters all go into the evaluation.  Part of my long term planning of my business broker activities does assume that many of todays unemployed will be tomorrows business buyers.

What Does it Really Feel Like to Sell Your Business

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You are thinking about selling your business. You may have uncertainty, angst, worries, trepidation, fear, unknowns, and sleeplessness nights.  I believe you are not alone. My approach as a business broker in Florida is from a perspective of a former long term business owner.   I truly feel some of the feelings I experienced as  a business owner are very similar or the same of the business owners I work with as a business broker.

While at this stage of my professional life I am “sitting on the other side of the desk” I feel I do understand the concerns, fears, thoughts of the person on the other side of the desk.  There are many qualified experienced business brokers that are not former business owners and these quality brokers bring various valuable perspectives and experiences that benefit their clients.   My choice to pursue my “2nd career” as a business broker comes from my recognition as a business owner of the value a business broker can bring.

Should You Sell Your Business?

  1. If I sell my business Do I have enough to retire?
  2. What will I do after I sell my business.?
  3. What will happen to my employees?
  4. What will I sell my business for?  Is it enough?
  5. How do I handle all the “little situations” that are part of most any business prior to selling my business?

Does the business owner considering the sale of their business that they were involved from the beginning/day one of the business differ from business owners that had bought an existing business?- Of this I am not sure but  somewhat curious if there is a difference.

While it is awkward for me to share personal thoughts in such a public forum, possibly some of my experiences may help others in this very important decision. Some of my thoughts and experiences:

  • I had felt that the decision to sell my business was equally as difficult as the
    Sell Your Business

    Photo (c) mabusinessbrokers.com

    process of trying to sell the business.  But selling a business is a difficult process.

  • I had made the decision that if I wanted to sell the business that I would do it under my timeframe, (and when I was mentally ready to sell my business)  and not wait until a situation or market or business conditions forced me to sell the business.   This decision may have had me miss an opportunity to sell at a higher multiple in the late 1990’s when acquisition values where higher inside my industry, but mentally I was not ready to sell at that point.
  • My CPA (accountant) that was a very close advisor to me would always say regarding the sale of the business- “You will know when you are ready”. I believe in this statement and it did apply to me.
  • While going thru the process of selling the business, I always ran the business as if the deal would not consummate.  I dont believe you ever really know a sale will occur until signatures are had at the closing table.  Even at the closing table on late Friday afternoon, I was still thinking of things I would need to be doing Monday as if I were to remain the business owner. Habits are hard to break and it seemed prudent.
  • Maybe the proceeds from the sale of your business will allow you to comfortably retire and do nothing.  Maybe the sale of your business will give you a little extra cash to save or spend on something you want.  Maybe you dont know if the proceeds from the sale of your business is enough “to retire on”, but possibly its enough to allow you to choose an activity, 2nd career, or even work for someone else without the need to solely rely on this decision as your sole source of income.  This can be a very comfortable position.

Take My Advice If You Decide To Sell Your Business

I have shared with a few others that after the sale of my business of 20 years I experienced a feeling that was very foreign to me that caught me by surprise, and is kind of difficult to describe.   When my business was sold what I was really selling was my responsibility.  As all business owners know- you are responsible for everything.  If  an employee makes a mistake at work, it is your responsibility.  If sales goes down, it is your responsibility.  If expenses, taxes, fees, regulations increase it is your responsibility.  After the sale of the business while on the airplane flying home I experienced  a difference that almost seemed inside me at a “cellular level”.

The concerns I had for my 20 plus employees and 5000+ customers that I carried with me for 20 years were gone.  I felt I had done my due diligence, worked closely with my CPA , attorney and advisors, found the right buyer to address my goals as a seller and I was leaving my former employees, customers, and responsibilities in good hands.  I certainly did not absolve myself of all my responsibilities, and recognized problems could still surface, but I did experience a feeling I hadn’t had in 20 years.

Business for Sale-Who, How Many, How Much?

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I am a business broker based in Florida, and  also a member of an Association called  the Business Brokers of Florida.  The Business Broker of Florida  Association (BBF) is the largest state business broker association in the country and the second largest association of business brokers in the world.   The activity within this association does provide the business owner and or entrepreneur some insight into actual activities related to businesses buying and selling.

Most all business transactions involving the sale of private companies and information regarding this activity remains very private.  And accurate pertinent information can be difficult to attain.  What does a business similar to yours sell for?,  How long does it take to sell a business like yours, and how many businesses like yours are being sold.  One can search and view a lot of information regarding Florida business being bought and sold at Free Search on Businesses For Sale 

Businesses For Sale In Florida

Florida is experiencing the current economic downturn and is somewhat representative of the US economy.  Actually Florida may be feeling the effects of the downturn more than most of the US  as its economy seems very tied to the real estate industry.  I have always found value in trying to understand some of the numbers behind the numbers to help me to perform my role as a business broker. The following are some items of note  as it relates  to business buying and selling activity in Florida.

Certainly not all business sold do  involve a business broker, nor are all businesses sold in Florida handled thru this association, but as a rather large association it is fairly  representative of the buying and selling activities in Florida.    Web based businesses and or websites may be sold at an online auction, larger  “brick and mortar” companies may seek larger M&A firm for representation, but the activity within this association does provide some insight for the  business owner outside of Florida that may buy or sell a business.

Per the currently active listed data available thru the BBF Association-   As of today almost 4000 business are for sale of those:

1) Businesses For Sale in Florida over $10M –      5

2) Businesses for Sale in Florida Priced over $5M-   30

3) Florida Businesses for Sale Priced over $1M – 330

4) Businesses in Florida For Sale with Net Income over $100K – 1227   

Other observations:

a) Largest type of business Listed For Sale in Florida– Restaurants – 773 (this represents almost 20% of all businesses listed)  of those 223 have Net Income >$100k.

b) Home Based Business For Sale – 402 (represents about 10% of all businesses listed for sale)

c) Florida Internet related businesses for sale 43, of those: Asking Sale Price $1M+  is 8, those with net income over $100k – 20

Businesses Sold in Florida thru the Business brokers of FloridaFlorida Business For Sale

of all the business sold in the last year (6/2009-6/2010) Here are the following Averages on Florida Business Sold.

  • Average Sales/Revenues- $636k
  • Average Selling Price- $252k.
  • Average Adjusted Net Cash Flow – $114k.
  • Average number of Days to sell the business- 226 days or approx. 7 1/2.   Please note this figure does not include business that got listed for sale and did not sell. Estimating those in  the average time to sell a business may exceed a year(my guesstimate ).

If you own a business and do not plan on exiting from that business for several years, it still makes sense to understand the value of your business.  What is the asset that you have worth?  What sort of multiple of cash flow should your business sell for?

Understanding what other similar businesses are selling for does provide some basis.  but the devil can be in the detail…  Also growing your company thru acquisition can be both a viable and profitable business decision.  What may it cost to acquire a synergistic company?  A review of some reliable numbers may be a good first step in the needed due diligence.

(some info shared above compiled from Business Broker of Florida Assn website as of 7.30.2010)

We Suck Less

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Currently I am a Business Broker in Florida working with business owners in the process of buying and selling businesses.  Back in 1985 I was working for (a Texas based Technology company ). We were bidding on a very large multi-million dollar computer based project for the Los Angeles Unified School District (LAUSD). Part of the bidding process involved all us potential vendors travelling via buses throughout the Los Angeles area viewing a dozen of the 700+ schools that would potentially buy and use our systems.

The Importance Of Smart Marketing

While driving thru the various areas of LA I had seen white billboards with 3 words on them WE SUCK LESS. I saw this billboard in several different parts of the city. After repeatedly seeing that same sign in the various communities, I asked a local contact regarding the purpose of that billboard, or rather what it meant. I was told that it was a marketing campaign of a local radio station. The premise was – We’re not the best, We’re not number one, We’re not perfect, But We Suck Less than our competitors, and therefore customers/listeners should tend our way. “Were not perfect, we may not be very good, but we suck less than your other options”…

We Suck Less

As we continued the 2 day journey throughout the city, that concept really struck a nerve. It really wasn’t a premise or concept that was even remotely familiar to me. This approach, while just in jest… I think, just hit me as so unusual, that I found myself sharing this story many times over the last 25+ years. Ironically I have also crossed paths with various businesses and business situations over the years that prompted me to recall this ” business concept”.

Is this concept completely hypothetical, or does it truly exist? Has anyone else seen this in action in certain business environments? As a business broker I get to see the inner workings of many companies and mostly I witness hard working well meaning business owners.  But, is it possible that this could be an approach of a business, or just the result of many years of apathy, poor management, or some other larger problem?

Set The Bar High

I really really think we all our wired to “set the bar very high”, we strive to be very good, we want to be the best, some seek perfection even knowing its not possible but keeping it as a goal nonetheless. But to non- chalantly say, “I just have to suck less than the next guy” and as a result of that approach my business will advance to me is somewhat mind numbing.

I recognize faults and imperfections occur in my own business practices. I’ve always felt that it is important that I remain my own toughest critic. As a business broker that helps business owners sell businesses and individuals buy businesses communication is very important. Promptly returning emails and phone calls to me is an essential, and is just mandated.

Treating business relationships with respect, honesty and effort is important to me. Is it easy for someone to fall into the trap that since my colleagues/competitors don’t return emails/phones calls for 4-5 days or never then, if I wait 2-3 days to return a call or email, that makes me better than my competitors. Is this possibly the mindset of some in business? Can one be satisfied with the approach of just not being as bad as the others?- I don’t know. As a business broker and professional, I do know I may see this play out in other businesses, but certainly not mine.

But I do know Striving to “Suck Less”, to me just sucks. I really don’t know if it is a conscious business concept by some, but I do believe I have seen some resemblance of this approach. I also know that I find myself 25 years later sharing this story again.