Main Archives - Page 6 of 14 - Sell A Business Florida

Business Owner vs. Employee the Grass is Greener?-Business Broker Perspective

By Scott | March 2, 2011 - 9:47 am |July 16, 2013 business broker florida, buy a business, how to sell a business, Main, selling my business, small business owner

1 Comment

I am in the business of helping people buy and sell businesses. So many future business owners currently work for someone else. Very often the thought process is that one would enjoy their professional career if they “worked for themselves”. During my professional business career after college I have been an employee of others for about 5 years and have been a business owner with as few as 1 employee to 25 plus employees for approximately 25 years. I feel I do have some perspective from both sides of the coin.

Is It Better To Be An Employee Or A Business Owner?

I think you could talk with business owners and find that there are several that feel being employee has many benefits, and if one talks with employees you can find many that would like to be their own boss. And of course there are the group of those that are happy or satisfied being either an employee or a business owner.

But so often we are tugged by the concept that the grass is greener on the other side of the fence. Many prospective business buyers that I work with are ready to do something on their own. They have had very reasonable business careers working for others but are ready make the move to buy a business or start a business and no longer be an employee.

Why may an existing employee want to buy a business or start a business–

Photo (c) reachvision.org

want to do it my way
feel I can do it so much better
feel being an employee is too limited
No longer believe in the company I am working for nor my job
Want to make more money ( maybe this should be at the top of the list)

Why would a business owner consider working for someone else as a good thing. Again part of my role as a professional business broker in Florida is working with business owners looking to sell their businesses. Part of the process of what I do is the discussion regarding what one may do after selling their business. The responses I get are very dependent on ones age and the amount of money one may gain upon the sale of their business. Age is a very strong determinant.

Looking At The Long-Term Goals

But when we all get excited upon the idea of starting a new business or buying a business, its hard to “fast forward” and visualize a long term business owner that is somewhat exhausted by the demands of owing a business- and working for someone else is a pretty good option. Maybe not as good as selling your business and sitting next to a pile of cash sitting on the beach drinking frozen cocktails. But this option is not always possible. Selling your business and going to work for others may bring on the following feelings and thoughts-

Liberating- The thought of not having to carry around the strains that go with running and owning a business for many years can be very liberating
As a business owner the thought of collecting a paycheck on Friday instead of worrying about making payroll is appealing
As a business owner you get to make all the important decision. Not having to make the important decision may seem like a good thing
As a business owner you find that employees get paid 1st you get paid 2nd. At times that can be very rewarding, other times dealing with the unknown is difficult
When an employee crashes a truck your workload/cost may have just skyrocketed. As an employee this event may result in no more than idle banter in the break room.

All of us business owners and employee out there knows the list can go on and on. Want to buy a business? Want to Sell a business? Want to Start a business? The grass is not always greener on the other side, but very often we need to jump the fence and see for ourselves.

11 Steps to Business Failure in 2011

By Scott | February 11, 2011 - 9:35 am |July 17, 2013 business broker florida, buy a business, how to sell a business, Main, sell a business, selling my business, small business ideas, small business owner

How To Avoid Business Failure?

Find something that is working and try to make it repetitive. Find something that is not working and try to eliminate it before it brings further undesirable results.

I have a good friend that is an attorney and we would discuss business and he accounted his success to the fact that he consistently and diligently returned phone calls. To that I say What? Something so simple as just returning a phone call made you better than your counterparts? And the answer to that is yes. Not everyone does return phone calls or emails . So you can be better than the next guy by just returning phone calls.

To me this business practice is just a given, but I find to others it is more of an “optional service” that they provide. Sometimes the difference between success and failure is not some long winded algorithm or new gee-whiz technology, it is focus on the basics and do them right and do them consistently. Currently I am a business broker based in Florida and work with small business owners in the process of buying and selling businesses. I consistently find so many of the business issues I have had as a business owner are shared by so many other business owners.

Photo (c) theidgroup.co.uk

Tips For Steering Clear Of Business Failure

Do you want to have a better business? Do you want to improve your business? Then review the below list. If you are wondering what may be the fast track to business failure then use the below as a guideline:

Dont keep good track of your numbers and dont feel the need to really understand them. That job should be for others.
Dont return emails phone calls timely
Continue to delay your involvement with Internet marketing, social marketing and website optimization
Dont pay attention to existing customers and clients
Be willing to treat customers and employees improperly, as long as you the business owner benefit, and when you do something wrong to others that benefit you- assure yourself that its “just business”.
Dont take any time to review where you are spending your advertising/marketing dollars. Assume that even though you have not been getting results from your current efforts that if you do nothing long enough results will occur… eventually.
Dont embrace technology, continue to fight it and close your mind to “new ways”.
As a business owner dont take any time planning for a business exit strategy
Minimize the value of input from employees. You are the boss and because of that fact your way is the only way.
People say “either your business grows or your business dies”- dont believe that. Believe you have enough customers right now and that is good enough.
Dont worry about any long term planning. Long term planning is really a waste of your valuable time.

Like most list, this list as well can go on and on. Want to run a better business in 2011?

Its not Who You Know its Who Knows You

By Scott | January 31, 2011 - 6:52 am |July 17, 2013 business broker florida, buy a business, how to sell a business, Main, sell a business, sell a business florida, selling my business

Establishing The Right Relationships

We use various means to establish those relationships. When we make it our goal to grow our businesses by “getting out there and meeting more people”, that effort can be somewhat miss-guided. For every business person the needs are a little different. I help people buy and sell business. I strive to speak to more people that are considering buying a business.

I also prospect and market to reach small business owners that have an interest in selling their business. In some businesses the largest asset may be the production equipment, in others it may be their building they own, in my business as a business broker my largest asset along with my experiences may be my business relationships.

Actually to me the concept of Business Relationships has changed significantly over the last several years with the evolving of the internet and social media. And the definition of a business relation has become somewhat blurred.

“On Facebook I have 1800 friends”, “on Twitter 12,000 Follow Me and I follow 14,000” “On Linked-In I have 2200 Contacts”.- I actually dont have these sort of numbers but many of us know people that do. The real fact, at least for me, is that if I have to use all my fingers and toes to count my real friends I consider myself fortunate.

Photo (c) sheranescloset.com

Does Knowing People Mean That They Know You?

Do the 1800 Facebook friends know you ?, Do the 14,000 on Twitter know you?, Of the 2200 Contacts on Link-ed In , how many are going to shoot me an email when they want to Buy a Business or Sell a Business in Florida, or buy printer paper, or get my lawn service, or whatever my business offers?

As we strive to network and expand our sphere of relationships I recently got reminded of the actual goal of this effort , or rather what the end result of this effort should actually be. Very often I think thru my networking efforts, I want to meet people, when really what I want to do is have people meet me, get to know me. I know who President Obama is, I don`t really”know” President Obama. So I know of President Obama- does that help my business -no. But what if President Obama knew me or knew of me?

I know of Bill Gates-Microsoft. So what? What if Bill Gates knew of me? But from a practical standpoint, knowing the president of the small business right here on Main St is nice, but meeting him and striving to get him to know me, and when he and his friends are talking and one strikes up the all to common conversation of ” Do you know anyone who…..” can help me buy a business in Florida, this small business owner can say yes, I know this great business broker and his name is…

What Can I Sell My Business For?

By Scott | January 24, 2011 - 10:52 am |July 17, 2013 business broker florida, buy a business, how to sell a business, Main, sell a business, selling my business, small business owner

1 Comment

As a Business Broker Based in Florida, I talk with small business owners daily about their businesses. Reliable and usable information on the small business owner that is selling their business , buying a business, or contemplating a potential sale or acquisition is usually hard to acquire. What does the market for those selling a business in Florida and those looking to Buy a Business in Florida really look like?

Pricing Your Business

One or the benefits of owning a privately held corporation is that you are private. So information regarding small privately held small businesses that are sold and bought is both minimal and hard to obtain, because of the private nature of the transactions. I am a member of the Business Brokers of Florida (BBF) , which is the 2^nd Largest Association of Business Brokers in the World. I have for my own purposes reviewed and evaluated Business Sales Activity in Florida, (figures obtained via BBF websites) along with trends of businesses sold in Florida, Cash flows, and business values of those sold by members of the Business Brokers of Florida These numbers involves thousands of businesses over several years.

As I plan going forward, for my business broker activities, understanding these trends and activities is one of my 1^st steps in my planning process. Here are some figures and observations:

The number of businesses sold in Florida in 2010 were 5% less than 2009. The Price for a business was sold for in Florida in 2010 was lower than 2009. Both 2009 and 2010 were down years in the business acquisition and sales market in Florida. Most business brokers I speak to believe business acquisition activity will increase in 2011.

2010- 860 Florida Businesses Sold

Sales	Sold Price	Adjusted Net	Days on Market
592,931	232,120	107,427	222

2009 – 910 Florida Businesses Sold

Sales	Sold Price	Adjusted Net	Days on Market
594,449	270,327	106,251	233

More Restaurants are Sold in Florida than any other type of Business. Accounting for over 20% of all Florida Businesses Sold by Members of the Business Brokers of Florida. Do you wonder why so many restaurants sold? Currently, As of today- 693 Restaurants are for Sale in Florida thru BBF Members. !!

Restaurants 2010 Averages (187 Total Sold)

Sales	Sold Price	Adjusted Net	Days on Market
360,242	131,343	73,258	210

Restaurants 2009 Averages

Sales	Sold Price	Adjusted Net	Days on Market
361,493	162,087	72,703	211

It could just be me, but I do speak to a lot of business owners that “feel “their business is worth $1,000,000. Only 4% of all business sold in Florida thru members of the Business Brokers of Florida were greater than $1M. Florida business climate, while having some diversity, is very strongly service based with a lot of small businesses with 10 employee or less.

Businesses Sold in Florida for $1,000,000 or More (38 Total or approximately 4% of all sales)

2010 Averages (38 Total or approximately 4% of all sales)

Sales	Sold Price	Adjusted Net	Days on Market
2,739,402	1,894,700	576,038	378

2009 Averages

Sales	Sold Price	Adjusted Net	Days on Market
2,748,466	2,132,351	574,604	391

Please Note- and this is an important fact- the Days on Market does not included businesses not sold and ultimately taken off the market.

2010 was a difficult year in the business acquisition and sales market in Florida. Last Wednesday I attended an educational seminar that was attended by 70 plus professionals in the Florida business acquisition and business sales market. Generally most all I spoke to were both guarded yet optimistic about the industry prospects for 2011.

The above numbers speak to averages. All businesses and industries have their own uniqueness. Businesses generally are sold as a multiple of their adjusted cash Flow. ( adjusted cash flow attempts to determine actual cash the business generates for discretionary expenses, owner wages, debt service etc.) Each business and industry will demand a different valuation. Determining your business value may be dependent upon what similar businesses in your same industry are selling for as a multiple of adjusted cash flow. If you would like to know what businesses similar to yours are selling for, review a website such as mine, or contact a trusted business broker or other trusted advisor.

Number 1 Reason For Selling Your Business

By Scott | December 2, 2010 - 6:35 am |July 17, 2013 business broker florida, buy a business, Main, sell a business, sell a business florida, selling my business, small business ideas, small business owner

Solid Reason For Selling Your Business

Good businesses get sold for very good reasons. Being “ready to do something else” is a good reason. A seller of a business needs to be ready to sell. Really- you only really exit your business by 2 means.

1. By your choice-your timeframe, your plan.

2. Not by your choice– closing due to business failure, business conditions, bankruptcy,Forced Sale.

Granted there may be certain undesirable business or personal events that prompts one to “be ready”. A business owner may have additional employee problems and decide that enough is enough and that is the impetus to sell ones business. New frustrating regulation, customer problems, and any one of numerous problems a business owner may face may be the “final straw” and induce a business owner to pursue the sale of the business.

But again for any business owner that has owned and managed a business for an extended period of time problems such as these come and go. Business can be going quite well and the owner may just be ready to move on. Actually selling a business while the business is doing well is a well thought out exit strategy for a business owner. And yes problems can and, do come along with the business. Problems within the business does not make a business a bad business.

A business owner may “just be Ready” to:

retire
try something new- a second career
want to move or relocate
Just be done running the business I have been running for the last 20 years

I am not aware of the existence of a Perfect Business. Even the best of business opportunities will likely contain issues and or undesirable situations. But if you truly want to own your own business and move into the role of business owner- Understand that good business are being sold by business owners that are just ready…. to move on.

Category Archives: Main