Find Your Passion In Your Work When Buying A Business

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The most common comments I hear from business buyers are “What is a good business to buy?

I am open to any business that can make me money” They also bring up this question whenever they find any company that looks interesting. “Is this a good industry to be in?” What they are not getting is that every industry is a great industry for the few doing well and a terrible industry for the rest of the world. I would say that 50% of all business owners just barely get by, 30% do average, and 20% of the business owners make a profit that they are proud of. It has nothing to do with what industry it is but everything to do with the management of the company.

So if it is all about the management, how do you know if you are going to be good top management material?

Well there are several things.

Let’s review some of those traits. Read more

Why Don’t More People Buy Businesses?

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Why More People Do not buy a business?

Introduction

You may not believe what they say yourself, but if you have been in the business of buying businesses for a long time you’ve heard someone repeat this time worn statement.

“One in 14 buyers actually buys a business.”

The business brokerage industry throws around this number all the time.

This “1 in 14” number (or only 7% ) is based on statistics gathered from some old-time brokers. They must have actually kept track of how many buyers called their firms versus how many deals they closed. We can’t know how well they tracked this info, or where this data originated from. But, thankfully, the actual number is not the important part. For the sake of solving the problem, we just need to see that it’s low, and really could be better.

Here’s why that number stays so low…

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Get Rich While Going Green and Saving Your Dollars

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Going Green helps the earth and saves you money.

So how do we do that? This is a very interesting subject. The “Green Environmentalists” are designing and building new low energy use buildings. Because of the three year draught, they are also recycling water and reducing energy use.

Congress passed a law subsidizing solar generated electricity.

You can also buy electricity from independent utility companies who are selling electricity at a discount. Let us not forget solar water heaters.

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Why Should Inventory and Accounts Receivable be Part of the Purchase Price?

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Why should Inventory and Accounts Receivable be Part of the Purchase Price?

The standard procedure when a broker takes a listing, on a small main street business, can be with or without the inventory being included in the listing price. Including it actually presents a more honest picture, to the buyer, of what is required to buy and run the business. The reason it gives a better picture, with the inventory included, to a buyer, is because when the buyer looks at the net cash flow figure (SDE) and then compares it with the asking price, the buyer sees that it a high multiple. Let’s take an example. Net cash flow is $100,000. The price without inventory is $200,000 and with inventory is $300,000. The price is 2 x without inventory but 3 x with inventory. This might make the asking price look too high but in fact that is the real multiple.

Read the full article to find out why this is so important.

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What Business is Right for You?

Purchasing A Business? Find The Right One For YOU!

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Are you interested in purchasing an existing business? What type of business will you excel in owning? Start here with our help and save yourself stress, time and money!

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How to start your own business & be successful

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Do you want to start a business and be successful?

In the movie and play South Pacific there is a song called “Happy Talking.” The words to that song go something like this (feel free to sing along if you know the tune):

“Happy talk, keep talkin’ happy talk,
Talk about things you’d like to do.
You got to have a dream,
If you don’t have a dream,
How you gonna have a dream come true?”

Surveys of successful people have shown that the love of the work has been more important than the money.

Interestingly, that usually equates into success in the work of love, which is then followed by financial success.  To find out more on how to succeed.  Read more

A Fresh Approach to Finding a Business

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If you have gotten tired of looking at the same old main street businesses, I would like you to know you are not alone.

You should be prepared to look for up to two years to find the right fit. Read more

What Business is Right for You?

The Best Way to Find the Right Business for You

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The time to get advice is early in the game, not after you have signed a purchase agreement and suddenly find that you have only 10 days to complete all due diligence

Many people look for a good, profitable business of any type. That makes sense… or does it?

People such as this are not picky as to the type of business as long as it makes money. Using this technique it is very common to look at a hundred businesses and even then to find out – after hours and hours of research – that what you learned did not agree with what you were told. Such an approach is one way to go about it.   Read more

Should I Buy a Corporation?

Does it makes sense to buy business in these COVID-19 crises times?

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As I was picking up my daily e-mails, the above question was staring me in the face. I thought, “Wow” this is a great question? What I have been noticing is the way consumer business is changing. A lot of those changes are permanent and not just in place because of the virus. Let’s look […]

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Due Diligence Case Study

Due Diligence Case Study: Poor Bookkeeping Leads to Confusion

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This is a true story of one of my due diligence assignments regarding a thief operating from within a tree trimming and landscaping company in Northern California.

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