Tag Archives: sell a business florida

Starting Buying Selling a Business: What Are They Thinking?

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Want to start a business?  Want to Buy a Business?  Want to Sell your business?  These interest are very different but there is one common element among these significant business decisions.  Money- .  While working with business owners and individuals with the process of buying and selling businesses, I consistently come across a common element that I believe would be surprising to most that are ” looking from the outside in”.

Money is always a determinant factor in the process, but so very often it is the other factors that create the motivation that steers the process.  As a  small business owner or one that recently started a business one wonders if the thoughts, trepidations, or concerns that you have are shared by others. It is common to wonder if others struggle with decisions such as you.  What are some of the thoughts others have regarding these important decisions.

Motives Behind Buying/Selling A Business

Buying A Business

Photo (c) expertbusinessadvice.com

Currently I am working with business owners that are selling their businesses and it may be somewhat surprising that money is not the primary reason they have decided to sell their business.  But make no mistake all business owners want the maximum amount they can attain for their business but the reasons for selling  are varied and different.

I am also working with several individuals looking to buy businesses and they as well generally are looking for some sort of change.  Again they are looking  for value in the business they are seeking to buy, but the reasons they are looking to get into something different are also varied and diverse.

Many  people out there, and readers of business articles such as this are contemplating change.  So many of tomorrows business buyers are employees that are working for someone else today.  They are seeking change.  Many of the business owners  looking to sell their business are seeking change. Most all starting a business, buying a business, selling  a business are seeking change.  When talking with seller of businesses and potential buyers of businesses one learns the “why” is varied, and comprises similar thought processes I experienced as one that both started a business, bought several businesses and sold my own business as well.

Perspective very often if the difference maker in what drives this business decision. The excitement and energy that comes along with doing something new where the roads ahead are full of unknowns and optimism  can certainly provide different perspective than the business owner that has experienced the challenges and sees the roads behind him. The reasoning behind the decision to buy start or sell a business may look very similar but it really is the perspective that provides the different “take” on that reasoning.

I want to Buy a Business, I want to Start a Business because…” –

1)MONEY– want to make lots
2)PASSION– I love making widgets
3)ACCOMPLISHMENT– It just feels good
4)OBLIGATION– It was my families business
5)EXCITEMENT– I love working 24/7
6)CONTROL– I control my own destiny
7)OPPORTUNITY– I’m young-limitless
8) CHANGE– I want to do something different

“I want to sell my Business because “-


1)MONEY-Not making enough, money is less important
2)PASSION– I used to love making widgets
3)ACCOMPLISHMENT– The feeling of accomplishment is gone
4)OBLIGATION– My family is no longer around
5)EXCITEMENT– after working 24/7 I am now Burned out
6)CONTROL-Insurance Companies,employees,IRS,State,control my destiny
7)OPPORTUNITY– I feel old- exceeded my limit
8) CHANGE– I want to do something different

While the list could go on and on, Contrary to common belief—– Its not always JUST about the money.

 

Hands off or Hands On- What Type of Business Owner Are You?

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What kind of business owner do you consider yourself-  Are you a Hands on Business Owner or do you consider yourself more of a big picture operator that consistently effort yourself to avoid the minutia of the business.  I think the majority of us are a hybrid of these 2 approaches.

When running a small business, or involved with a startup business,  on an almost daily basis you are faced with the question ” Do I do it myself or do I hire others to do it for me”.  Most all are aware of the concept Time is Money- but like so many other business concept we all draw the line in the sand at different places.  We are not always consistent with where we draw that line, and find that that line moves as or business moves or the economic climate around our business moves.

This question can be applied from basic business task of running to the post office to mail off some stuff  or calling some prospects to significant larger issues like hiring outside help to handle your marketing functions, doing my own website, or trying to do my own SEO .  I am a business broker and I help business owners and individuals in the process of buying or selling businesses.  Selling ones business is a very significant event and very often like so many other decisions a business owner will decide to try to sell the business themselves or hire someone to help sell their business.

Are You A Hands-On Person Like Me?

This decision is part of the never ending series of question a small business owner needs to answer. In my current profession as a business broker if Florida I am faced with these same similar questions on a daily basis.  Do I do it myself or subcontract out that task or role. ” Maybe someone else can do it better, but I can do it cheaper”, or “Maybe someone else can do it cheaper, but I can do it better…”    Relatively speaking I am a fairly hands-on person.

My previous business I had owned for 20 years I was fairly hands on as well.  I helped install our production equipment on day 1 of the business, I worked on the production line, I worked in the truck delivering product, helped troubleshoot our equipment, performed testing and so on. I also set our policies, accounting procedures, QC procedures and company philosophy.   I enjoy knowing and understanding as much detail about my business as possible. Ultimately I was able to build a team of 25+ employees that both allowed our business to grow and ultimately allowed me to run the business from 1500 miles away for 7 years.

Business Owner

Photo (c) stage2planning.com

While others may say “I don’t want to know the details- I just want it to work”.  People reach business success with both approaches.  I have a good friend that owns a Plumbing business and has very little plumbing knowledge- he doesn’t want to.  He is a very good businessman, with a very successful plumbing business – he  is a big picture, hands-off guy and I think his wife may call me to fix their  leaky faucet before she ask him. But again he is a successful business owner.

The real question that comes in is at what point does the hands on approach limit your business growth.  When does- “I have to do it myself or it wont get done right”  approach become business limiting?  So many businesses do not make a transition to “count on others” and the business remains a certain size.  If the company goal is to stay a certain size then this approach may be both applicable and appropriate.

Hands-On VS Hands-Off Business Owner

But as one desires to grow a business to a certain size- “letting go” a little control is needed.   As working as a business broker in Florida very often I have business owners ask me can I just sell my business myself.  Here is how I summarize my true beliefs on this very important question.

Most business owners I know have a fairly full day- to say the least.  If your day is full already how can you possibly take on the task of trying to sell your business.  And I truly believe this.  Assuming selling your business is a fairly involved process how do you squeeze that continuous task into to your already packed stream of work.  Maybe you say to yourself,  I am going to devote a lot of time and effort towards selling my business, but then what suffers?

Does the business you are trying to sell now have the person steering the ship significantly pre-occupied?  During a recent speaking engagement I compared the process of running a business to running a marathon and addressed the need to finish strong.  Why run the race hard for 23 years or 23 miles and then stumble in for the last year/mile?   It is important when one is selling their business to try to finish strong.

I beleive one of the most important decision a business owner makes its the decision to sell their business.  Like so many decisions a business owner has to “do it myself” or hire others to do it.  Can I do cheaper?  Can I do it better? Do I have the time to do it?  Do I want to do it?Some of the similar questions one faces every day waking up as a business owner, but when selling ones business the stakes are significantly higher.

Business Ethics – Overrated or Underrated?

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Ethical behavior, quality character, honesty, moral integrity – how does one in business view these human attributes?  I tend to view them as a given with the people I interact in both the business world and in my personal life as well.  I expect the best from people yet keep my eyes open for behavior that contradicts my expectations.

I am a business broker based in Florida.  In the profession of helping those buy and sell businesses.  In my profession, as with most all professions you have what some consider good business brokers, bad business brokers, and OK business brokers.  Most all industries have the good, the bad, and the average.  Is it ethical practices which help define the good, bad or OK?

Business Ethics Among Your Clients

I recently experienced a business activity that made me take special note of a business clients actions. Basically, we had a verbal understanding and agreement regarding a business relationship we would enter into contractually.  While driving to meet with client to sign the documents that outlined our agreement my client was approached by others.

The client and I had no written agreement between us. The  client could potentially go in another direction which could cost me a fair amount of money. I had left at 5:00 am to drive 6 hours to meet client and about 1/2 hour before I got to our meeting he called me to tell me of this other situation.

After listening to what he had on his mind, I was somewhat pleased when he  then asked me how long before I could get there and we could sign our papers and I could represent him with this prospective buyer of his business.  He told me he felt he needed the assistance of my representation, yet he could of handled the situation so much differently.  Before this exchange I viewed this potential client as a good, honest, straight forward individual. His actions reinforced to me the value of dealing with a person of good character.

I have shared this story with several of my friends that are business owners and their response was fairly common.  They too also greatly value dealing with a person of good character.   But that fact that those around me hold business relationships with those of good character in such high regard, makes me realize good character from others is a valuable yet somewhat  limited commodity.

Business Ethics

Photo (c) reputationalcompliance.com

A few weeks back my teenage son and I were talking of the Tiger Woods situation regarding his many documented affairs. We both are active golfers and had admired Tiger Woods golf skills over the last 10+ years.

Golf is an interesting game and it has been said that one can learn more about a person in one round of golf than you can in multiple office based meetings. I asked my son that if Tiger Woods had “cheated” on his wife and family, do you think he may have cheated on golf.  My son said, “No,”  I said, “Why?”  He said that he thinks Tiger Woods views golf so importantly that he wouldn’t cheat on golf. So I asked him the obvious, “So you think he views cheating on golf to be worst than cheating on your wife and family and that is where he draws the line?” My teenage son said, “Yes.”

Ethics Of Financial Gain?

I have been associated with several different organizations, associations, and trade groups.  I still get a little surprised  that many of these such groups feel compelled to teach ethics.  I am in the profession of being a business broker and I work with individuals and businesses in the process of buying and selling businesses.  I consider the fact that I will treat my clients and customers in an honest, ethical, and moral manner as a given, yet when I witness others that “consistently take the high road” I take special notice. I have been a member of the business community for several decades and recognize that most all of us are on a quest to increase financial gain.  Where does ethical behaviour fit in that mix?

  • Do you feel business ethics can be taught and learned by all in the business world?
  • Is business ethics much different than normal ethics one utilizes in the everyday game of life?
  • Can ethics be taught to a 20, 30, 40, 50, 60 year old? Or is it ingrained in you before you enter the workforce?
  • Is it ok to treat someone unethically and then pass it off as “Its just business” ?  To this I say No and have always felt that.  I have never really understood “Its just business.”
  • I have never understood “I had to cheat you out of $X,  but it was just business”, ” I know I treated you wrong, but it was just business” – what does that really mean?
  • Does proper ethical behavior really require actual thought or is it more of an involuntary response that just occurs like breathing and blinking?

Is dealing with a person and expecting honest ethical behavior a given and glossed over to allow “more important business issues to be discussed”,  or is it the important issue that all else revolves around?

Business Succession

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Last week I was asked to speak at a small business seminar on business succession as it relates to selling a business here in Florida.  Succession planning in general  is the process of preparing to hand over control of the business to others. Very often family may be part of succession planning and while most businesses do not have any plans for business succession, those that do, fall short in the planning and communication of those plans. So you are working hard on your business now, what is your plan?

  • Build up  your business to a nice size and sell your business for great financial gain?
  • Pass your business on to your kids
  • Arrange an LBO for key employees
  • Work your butt off, make enough money to pay your bills and do this til you are no longer on this earth.
  • other

Business SuccessWe are all busy running and or growing our businesses, but last week  a few business owner did consider this issue important enough to take a few hours out of their day to attend this workshop and  begin understanding the process.

Presenting at this workshop were an Attorney, a CPA, an insurance provider, and myself.  This seminar was attended by local small business owners seeking knowledge on this topic.  What I found most interesting was that the Attorney, CPA, and I spoke on many of the same issue regarding selling your business  We all spoke for about 1/2 an hour and didn’t coordinate on what we would speak on.  While we touched on the the different aspects surrounding business succession,  I found we spoke on many of the same points, but due to our professions we spoke on those point from varying perspective.

When discussing seller financing for your business, the attorney spoke of the need for extreme caution when setting up seller financing, and additional care extended when family or fiends involved.  The CPA spoke to the proper records to be kept to document what you have and be able to show what you had in the way of your companies performance.  My discussion regarding seller financing  addressed the prevalence of seller financing in the marketplace and the need to be able to offer it to help make a deal happen in to days tight credit market.

What Your Business Success Relies On?

A few key points from this workshop:

  1. Most businesses do not have a succession plan.
  2. Planning is the most important first step.
  3. Seller financing can help facilitate a deal but one must do proper due diligence.
  4. Relying on your business as your only source of retirement funds is dangerous and mis guided.
  5. When doing your annual reviews of company numbers or tax preparation, use that as a good time to look at other matters as it relates to your biger picture

My suggestion is between handling your accounts receivables, accounts pay ables, other office paperwork, social networking, working with clients, and  returning phone calls/emails, take a moment to consider what your exit plan may be.  Even if you just give the subject a few moments of thought, you may find yourself ahead of most or your peers and fellow business owners.

Also, the Internet is a great source of information on business succession and other business matters, but also keep your eyes open for the various seminars, workshops, and expos that may be in your area.  They are not only a great source of knowledge, but also a great opportunity for the “other type” of social networking.

“Earn $10,000 per Month Working just 2 Hours per Day!? “

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“Earn $10,000 Per Month Working just 2 Hours per Week”… “Lose 10 pounds per day by just Sitting on Your Sofa”… “Take this Pill and all Women will Love You”…

Eye catching titles intending to entice one to read your message. Many of us use the Internet to further our knowledge and educate ourselves on our areas of interest.

I am in the business of helping people buy businesses and sell businesses. I also do get involved with business consulting to both startups and small businesses. The above headings are written to get our attention and get us to read.

Is It True Or Just A Marketing Trick?

Does one think that you can get rich just working a couple hours per week? Lose weight by laying on the sofa? I dont think we really  believe it to be probable – maybe we think it to be remotely possible, and just that sliver of hope warrants us to spend our valuable time to read.

Optimism is a wonderful trait-when tempered. Kind of like the optimist that falls off a 90 story building and while falling past the 50th floor says to himself – “so far so good.”

Small business is of great interest to me, and I have various sources of information that I tend to follow. I write for a website that reaches many entrepreneurs, aspiring business owners and current business owners searching for both information and opportunities.  On my own website, I list 1000 plus businesses for sale from Florida and around the United States.  Within these businesses for sale certainly exist tremendous opportunity for those willing to put in the necessary risk and hard work.

And yes one buying one of the many businesses for sale  you can earn $10,000 per month only working a couple hours per week…. But that may occur only after 10 years of working 14 hours day, initially struggling to pay the bills, and dealing with daily dealing with setbacks, and disappointment.

Yes, maybe after you have exercised a)  a good business plan, in b)  a good industry and c) are well funded and d)  properly timed your venture you could earn that money – i.e. One could find quality people to help one execute a solid business plan for a well funded Typewriter Company…. But success would be unlikely – the same above scenario, executed 40 years ago may have proved successful. The timing for a typewriter company has come and gone.

There are people that “hit a homerun” and reach significant financial success with apparent little effort in a short period of time and capitalized on a new idea as the typewriter people may have several years ago.  But I think for every one of those success stories there are the 10,000 others that reach success through long term hard work.

Start Your Business

Photo (c) financeonlines.com

A person may start a business or buy a business and sell it next year for rich rewards. But, I am convinced that most financially independent success stories are the result of hard work over an extended period of time. And for me much of the good valuable advise I have attained throughout the years came through extended conversations, and trial and error – It does not come through short cryptic eye catching statements.

As a writer of a blog based on my experience as a business owner directly involved with several business acquisition,  I contemplate the question of writing what I think readers may want to read or the information that I think small business owners and aspiring entrepreneurs should read. Style or substance – I will tend toward substance knowing I will regularly not catch the eye of the readers looking to “get rich today – retire tomorrow.”

If I write an article about “Why is It Important That A Business Owner Understands His/Hers Balance Sheet,” will it be read? I dont know, but I know it would add value.

Real Business Advises

Some of the advise regarding starting a business, running a business, or buying a business can appear fairly boring and non eye-catching –

  • Do Your Homework
  • Educate Yourself
  • Understand that you will be rarely over-funded
  • Expect to Work Hard (working at “your job” or for others may be hard- but this will probably be harder-maybe more enjoyable, but harder)
  • Expect setbacks and accept it will be up to you to overcome them.

But I do think that readers that are reading small business/entrepreneur blogs, news feeds etc. are taking an important step in educating themselves which is a valuable part of the process of reaching financial independence and or entrepreneurial business success.