More than One Reason to Start or Buy a Business

How many times do you go to a cocktail party or just hang out with friends and hear things such as “I got this great idea for this new business”, or “Ive got this great idea for this new invention”, or  “If I were the boss and owned this business that I am working at, I would ______________.”   Words are said, heads nod, cocktail parties end and friends go home and nothing happens.

But for some the entrepreneur spirit rises to a greater height than just words, and they are able to turn those words into action.   What is the difference between those at the weekend cocktail party talking about it and the person that wakes up Monday morning and actually pursues it?  Very often, the inspiration to turn words into actions lie in the reasons why one want to pursue this path.  What are the reasons some turn those casual interest into action?

Buy A Business

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As a business broker I have many discussions with individuals that want to buy a business.  The process of buying a business or starting a business both are filled with trepidation, concern, excitement and pursuing of yet to realize results.  One of my functions in working with individuals in the process of buying a business starts with a  simple question – WHY?   Why do you want to buy a business? or in some cases   Why do you want to start a business?   There is a big difference between the person that talks about buying a business or starting a business and one that actually follows through on those aspirations.  And the reason why one wants to start or buy a business can be very different as well.

The below list is certainly not complete but explores some of the reasons one takes the next step.

Why Do You want to Buy a Business or Why do you want to Start a Business?

1. Sometimes its not just about the money, someone has a passion for a field or effort and just wants to immerse self into that field.

2. Others, want to turn filthy rich. Some studies will speak to the high percentage of individuals that gained significant personal wealth through buying a business or starting a business.

3. Someone may just want to have a job to count on.  If you are the boss (of yourself), Who is going to walk into your office and fire you.  No one.  You have control of your job security.  Maybe this venture will turn into more, but at this point, “I just need steady work”.

4. There is a want to start or buy a new business because a person wants out of existing business due to “burnout”, or fatigue and wants to enter a new venture to re-invigorate and try to re-discover the energy that comes along with an entrepreneurial new start.

5. There may be a compelling wish to pursue a new venture that is genuinely making peoples lives better, and a person has a need to fulfill this want of self- fulfillment.

Real Reason For Starting Your Own Business

People who want to be entrepreneurs cite reasons such as satisfying a self-determination, wanting to set their own hours, wanting to be their own boss, and wanting to test themselves, as reasons for starting a new business. But when we get down to it, most people want to start a business to gain financial freedom. Starting or buying a business in the pursue of financial gain and to provide a comfortable existence for self, family or others is a realistic and well-proven approach.  Starting or Buying a business so one can spend more time with family is both mis-guided and unrealistic.

The reasons one does start a business, or buys a business can vary greatly, and the list is longer than outlined above. But there are only 2 types of entrepreneurs or small businessman when it comes to buying a business or starting a business – Those that Do – And Those that Don’t.

I Want to Buy a Business… I Think

Starting a business is an exciting and potentially rewarding venture. Buying a business can also be an exciting and rewarding venture. If one wants to be an Entrepreneur or Small Business Owner what route does one take?. Is it best for you to start your own business. Is it best to buy an existing business. Or as in some cases (as in my business career) are you involved with both starting a business and then at some point buying a complimentary business or similar business(s) to add on to the business that you had started.

Buying And Selling A Business – Facts

I am in the business of helping business owners and individuals buy and sell businesses. I interact with both a lot of potential buyers and potential sellers . Understanding the key points below that outline some information regarding the future sale of your business, or if opportunity presents itself buying a business may benefit your situation:

1. ALL business owners are probable future business sellers

We all need some “exit strategy” from our business. Selling ones business for a nice gain is one of the more appealing exits from a business that exist. Prepare in advance for that fact. Also know and understand the value of what may be your largest asset- your business. Even if you are not plannining on selling your business- it makes business sense to know what the value of your largest asset actually Is. On my website we list 1000’s of businesses for sale. On this site one could locate “like’ businesses and use this information to approximate the value of their own business. But please keep in mind all businesses are different, but this would be a starting point to ballpark valuation.

2. Not all businesses that try to sell actually sell

Homes are bought and sold all the time. Some homes take much longer to sell than others (especially here in the South Florida market). But ultimately most all homes do sell. The same is not the case for all businesses that attempt to sell. The process of selling a business can be a long process, and that process does not always end with an executed contract and or sales agreement .

Buy Or Sell A Business

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3. Most people that say they want to buy a business don’t buy a business

Industry statistic regarding this fact vary, but the numbers may be as high as 9 out of 10 peoplethat actively pursue acquiring a business, talk to business owners about selling their business, and engage in some form of due diligence don’t buy a business. The reasons vary and go beyond the scope of this post, but money “surprisingly” is a determining factor in not having a potential business buyer buy a business.

4. If you have started your own business and are looking at ways to boost sales, buying another like business is a very viable growth business concept

Buying A Business Comes In All Shapes And Sizes

Eliminate the thought that buying a business means $100,000- $5,000,000+ deals. It can be as simple as buying an online web store for $200 that is a perfect fit and the additional traffic that it can drive to you is extremely beneficial. – Eliminate the thought that you need to have big piles of cash and the person selling their business is walking away with an all cash deal. MOST businesses sold today involve seller financing. The seller has both a vested interest in your success, and the seller is eliminating the need for you to go to a bank to finance the acquisition of the business. The seller is your bank. The seller understands their business and the likelihood of your success with their business, very often better than a banker would.

If you have started a business and need to “boost sales” and not sure how to gain additional customers or sales, buying a business that may be a competitor or a complimentary product of service can be an effective strategy. If you are thinking of starting a business, and want to “jump start” your effort buying a small business that you can build on and mold into your own is also a very viable strategy.

Thinking of buying a business? Will you be that 1 out of 10 that actually goes forward and makes that goal a reality.

Florida Business For sale Buying a Florida Business

Below please find reason to visit when pursuing the acquisition or Sale of a Florida Business

Top Reasons To Buy Or Sell A Business Via

1) If you are looking for a business broker or more specifically if you are seeking a business broker in south florida, or a SWFL business broker, or are seeking a business broker in fort myers florida, seeking a business broker in Sanibel Florida, or seeking a business broker in Florida to assist in your sale or burchase of your business.

2) If you want to sell your Florida business now, you are considering selling your Florida

Sell A Business

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business, want to discuss planning to sell your business, or are seeking to sell your business in Southwest Florida. Just call for a FREE consultation

3) If you seek a business opportunity in the fort myers florida area, are interested in merger and acquisition in the naples florida area or seek a business opportunity in Florida. If you seek to oursue a merger in Florida pls contact  We work with business buyers throught the United States and Internationally to assist in finding the right Florida Business to buy just click on this link to view over 1000 Florida Businesses For Sale

4) If you seek to buy a business in Florida, or are looking to buy a Florida business that is in South west Florida, or wanted to buy a business in NaplesFl, or buy a business in fort myers Florida, or buy a business in Tampa Florida please contact us for more information. The above link allows you to search for the business that is right for your needs and situation. Again, just contact us to arrange a free consultatation regarding how to buy a Florida business.

Please find below a partial List of types of florida Businesses For Sale that we work with:

  • Florida Electrical contracting business for sale
  • Florida Retail Businesses for Sale
  • Florida Restuarants for sale
  • Florida Print Companies for Sale
  • Florida HVAC businesses for Sale
  • Florida Computer Companies for sale

Small Business Owner/Entrepreneur Experts Wanted

What is an expert? Are you an expert? Do you call yourself an expert? Do your customers refer to you as an expert? Undoubtedly, it provides value to be viewed as an expert in a certain field or line of work. Is aspiring to attain such status a worthy goal, or is attaining such status really just a byproduct of ones efforts towards larger, bigger picture goals?

My current business is helping people and business in the process of buying and selling businesses. My perspective or “area of difference” is from the perspective of a small business owner that has personally bought many businesses over a 20 year period to add to my existing business . The interesting component of what I do in helping people buy and sell businesses is that most people only buy or sell a business once in their life once, most never do at all. So when someone is looking to buy a business or sell a business and only do it once, it can be accurately stated that that person cannot be an expert in that process. Maybe when buying a business or selling a business one should seek advise or help from an expert- but that is not what this article is about.

The Definition Of Entrepreneur Expert

My opinion is that the term expert is a widely used term and its use has only been growing as the internet is reaching further through social networks and into our daily lives. Maybe the term is getting over-used and “watered down.” We all get on Google, search, and run into experts everyday suggesting, telling, guiding so many of our everyday actions and even views, or way of thinking. Personally, while trying to further educate myself on internet marketing, or internet business opportunities, or gaining greater website traffic, I consistently find the following guidance by experts in the field.

“Establish yourself as an expert and provide feedback, advise, opinions on the various

Business Experts

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forums, user groups, etc. to increase your Internet visibility and viability.” It is kind of intimated that gaining the expert status is relatively easy. I personally think the goal of aspiring entrepreneur is to achieve the status of expert or having expertise in a selected field – but the real goal is to have that “tag” or description of you applied by others. – Undoubtedly it carries so much more impact and value when applied by others.

But beyond the impact stop and do the math. If you think of yourself as an expert – 1 person thinks of you as an expert. Now if 100 people think of you as an expert and they tell their 10 friends that comfortably refer and think of you as an expert, you have 1000 people thinking of you as an expert. From that fact, goods things may happen on your way to bigger goals.

Entrepreneurs and small business owners very often perform similar or the same function within your field of choice over and over does that make you an expert? You very well may be an expert in performing that task or service. Again the goal I believe is to have others apply the term expert to your business efforts.

The one common element among the people I associate with and think of as “experts”, is the fact that I never hear them refer to themselves as experts. Actually, I find myself referring to them as very knowledgeable or accomplished people, as I find it difficult to apply this lofty term to most any professional. Again, part of me says expert is a term that should rarely need to be stated in the first person.

Calling Yourself A Business Expert

I was intimately involved with starting, running, and growing a non-internet related business for 20 years and interacted consistently with testing labs, lawyers, equipment manufacturers, regulators, inspectors, trade associations, and educators within the industry. Did I consider myself an expert? I never felt I was. But maybe I was.

Please find what Wikipedia says about the term EXPERT.

An expert is someone widely recognized as a reliable of technique or skill whose faculty for judging or deciding rightly, justly, or wisely is accorded authority and status by their peer or the public in a specific well-distinguished domain. An expert, more generally, is a person with extensive knowledge or ability based on research, experience, or occupation and in a particular area of study. Experts have a prolonged or intense experience through practice and education in a particular field.

What are you calling yourself? What are others referring to you as? Do you display a unique expertise in you field? Is that expertise recognized by those around you?

I think aspiring to be the best in your field, continuously seeking education, and always looking for means to self improvement is the road to success. For some that road may be longer than for others. But remember in lieu of reaching “expert” status, you can be pretty damn good at what you do, and for your customers or target market that may be just what they are really looking for.

How to Fuel Your Business Sales Growth – Organic vs. Acquisition

Sales Growth. Every business needs sales growth. When the company bottom line is lacking and cash flow is deficient a business owner may pour thru his/hers monthly financials or spreadsheets reviewing line entries to find out where the business is and to find any glaring problems. Most often this analysis results with the same outcome. INCREASE SALES or DECREASE EXPENSES.

I, and many other business owners, recognize that reducing expenses is always a good thing, and during an economic downturn such as the one we are presently experiencing it is more than necessary. But my experience is that you can only reduce expenses so much. It helps your situation month after month to attempt to reduce your expenses to improve your bottom line, (and is a great business discipline), yet at some point you get to the place that you cant really reduce expenses much more, YOU NEED TO GROW SALES.

Types Of Business Grow

Sales growth also occurs across many different efforts, but these different efforts can be simplified to categorize sales growth as:

  1. Internal Sales Growth (or referred to as organic growth)
  2. Growth thru Acquisition

Companies may tend to use just one of the above means, or both of them. In my last business our sales growth came thru a combination of both internal growth and growth thru acquisition. Both means have advantages and potential disadvantages. But both should be considered. The longevity of the business may also dictate what means to utilize for sales growth. Speaking from personal experience of growing and running a business for 20 years here are a few of my findings.

In the early years annualized sales growth of high double digits and or low triple digits was very attainable thru internal growth. But as your sales grows and your year over year comparisons are based on higher sales numbers attaining the higher sales growth figures became more difficult. So acquisitions helped support our internal growth efforts. Efforts for internal growth never stopped, they just got supplemented with strategic acquisitions. Recognize that acquisitions that are synergistic in nature can have some tremendous results on your bottom line.

A poorly performed acquisition can also have the opposite result and can be very costly to the business. Where do you look for potential acquisitions? Competitors are always the first best place to keep your eyes open to. Below are some of the pros, cons associated with growth thru acquisition and thru organic efforts.

Business Growth

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Sales Growth Thru Acquisition and Organic Efforts

Pros/Cons – When acquisitions are truely synergistic the effect on your bottom line can be significant. Even when considering the acquisition cost of money consider the following. If you sell Yellow Widgets and your sales are $10,000 a month – you may have the monthly cost of business to sell those widgets including a building, a telephone, insurance, advertising, company car, receptionist, etc -cost totalling $6,000 per month. You decide to buy a local competitor that sells Red Widgets and his sales are $7,000 per month. He also has similar cost of business- you may find that you may increase your sales now to $17,000 and you no longer need his building, phone, company car, and receptionist. Even considering the cost of money for acquisition- you probably have increased your bottom line virtually overnight. So immediate sales increase is a plus – But consider:

  • Handling/managing a big bump in sales “overnight” can be a daunting task and business can be lost in transition and may need to be factored into the acquisition decision analysis.
  • The customers of the “other” company are used to doing things in a different way. Your way may be an improved way, but the difference may be detrimental in the eyes of some acquired customers.
  • Financing the acquisition can be difficult- Financing thru the Seller is usually easiest, and being they are in the business- they can better understand and see where the money is coming from and the likelihood of payment.
  • Acquisition can grow sales at a much higher more immediate rate. You gain the benefit to the bottom line “today”.
  • In current economic times Acquisitions may be had at more favorable multiples of earnings.
  • Organic growth – the customer is “brought along” with your company philosophy, approach ,and methods and have a certain “comfort factor” with this approach.
  • Organic growth rates may decline as the maturity of the business grows.
  • Organic growth adds to the stability of the company. If acquisitions are not available the company can rely on own internal efforts and have control of those efforts.

Acquisitions for most businesses should be considered. Organic growth can be more “slow and steady”, but “slow and steady” with a surge here and there can be a beneficial company business model towards fueling business Sales Growth.