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

By Scott | June 24, 2010 - 9:20 am |July 19, 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

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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.

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?

By Scott | June 8, 2010 - 4:20 pm |July 19, 2013 business broker florida, buy a business, entrepreneur, how to sell a business, Main, sell a business, selling my business, small business ideas, small business owner

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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.

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?

Why Buy A Towing Company

By Scott | June 1, 2010 - 3:41 pm |July 19, 2013 business broker florida, buy a business, entrepreneur, how to sell a business, Main, sell a business, selling my business, small business ideas, small business owner

Why Should Your Buy Towing Company Business:

This Towing business for sale will be a solid business investment for someone and I’d like to highlight reasons why someone will buy this business:

1. Multiple Income Streams- Yes they do tow cars, but the business model is so much more than that. They derive revenue from towing, also, vehicles towed in very often pay a daily storage fee, sometimes for vehicles in accidents vehicle require “sealing the car with stretch wrap” to eliminate additional damage from weather, some vehicle owners elect to get vehicle serviced at the towing companies service shop, so there are service fees, some vehicles get towed in and never get claimed.(more than you would think). These vehicles get fixed and resold, sold for parts, or sold for scrap. So Income comes from: a. Towing, b. Storage, c. Securing d. Storage e. Service work f.resale g. Disposal

2. Significant Assets are included in purchase Price- Land, multiple buildings, multiple trucks, equipment collectively total over $1,000,000. I have never been a fan of buying a business because of the assets- Usually cash flow is main area of interest. But owning the property that your business operates on and paying “yourself the rent”, allows you both control and the ability to enjoy appreciation of this asset as you grow your business. Also, securing money for your business is easier with assets on your balance sheet.

3. Good Cash Flow– This Towing business generate about $160,000 a year in cash flow. With Revenues of about $600,000 this is a respectable cash flow. Cash flow has been fairly steady and consistent over a several year period.

4. A Towing Business is a Recession Resistant Business- There may be a business that is “Recession Proof”, but I am not so sure what that business may be. The economic downturn that began in 2008 has been both extended and far reaching. Outside of insurance companies, most businessesIi know of have felt the effects of this downturn by significant reduction in revenues. The towing business is a service that is neither a “luxury item” nor discretionary expense. A towing company provides a service that is needed regardless of the economy. This business did realize a 12% reduction in revenues, but compared to the 20%, 30%, and 40%+ reductions in revenues by many of the businesses that i have been working with, this dip in revenue is minimal.

5. Future Prospects– Business has opportunity to add an onsite used car auto division.(both the land and building exist and the towing nature of the business results in vehicles potential for resale). Service department has considerable room for growth, and unlike many auto service companies that may wonder where their next customer may come from, the towing operations bring customers in! As with the auto resale operation, most of the infra structure is in place, incremental revenue could result in substantial incremental cash flow.

Photo (c) grandrapidsmilocksmith.com

Yes , I have a vested interest in the sale of this towing company. I stand to gain financially as this business sells. I also attain personal satisfaction helping a long term business owner work thru this process of transition. Finding the right buyer and getting the right price and terms for this business are the goals we set.

I believe this Towing business for sale will be of benefit to the right buyer.

Business Succession

By Scott | May 26, 2010 - 7:03 pm |July 19, 2013 business broker florida, buy a business, how to sell a business, Main, sell a business, sell a business florida, selling my business, small business ideas, small business owner

What Your Business Success Relies On?

A few key points from this workshop:

Most businesses do not have a succession plan.
Planning is the most important first step.
Seller financing can help facilitate a deal but one must do proper due diligence.
Relying on your business as your only source of retirement funds is dangerous and mis guided.
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.

Selling With Your Ears -8 Steps to Improving Sales

By Scott | May 14, 2010 - 8:08 am |July 19, 2013 business broker florida, how to sell a business, Main, sell a business, sell a business florida, selling my business, small business ideas, small business owner

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“Nothing happens in this business until somebody sells something.”

Are you a salesperson? If you are in a small business or a startup I would be stunned if you said no. I have been with several companies throughout my business career, small, medium, and a large Fortune 100 company, some as an employee and some as an owner. My role currently as a business broker is to help people with the process of buying and selling businesses. How do you find people wanting to buy a business or sell a business- prospecting.

Whats The First Thing I Do When Meeting This Prospect- Listen.

My job of working with those in the buying and selling of businesses is really really a job of listening. I recall one of my first jobs out of college I was hired by a Fortune 100 company, and they would send all new employees off to corporate headquarters for 45 days of fairly intensive training. Training as a salesman/woman for that company involve quite a bit of technical knowledge on their products along with sales/marketing/time management skills. I studied the technical aspect of this product extensively. I felt when I got in front of a prospective client I just had to let him know all I had learned about this product without really slowing down to hear what they wanted to know. It seems a little silly to me now, but then I felt it was my job to tell them all I knew.

Photo (c) wikia.com

Today to me selling is listening to a customers needs and proposing a solution. As I work with those buying and selling businesses there is so much that goes into such a complex process that include the emotional side, the financial side, the timing, family, friends, employees, loyalties, that without listening to what a persons true interest is seems so mis-guided.

Overall, I’ve found Salespeople can seem to be looked at in a negative way by other departments within an organization, can be looked at disparagingly thru movies and stories, but my perspective on sales process or the sales person is a little different. I have a strong admiration of those involved with the sales process. The sales process can be defined in many different ways from taking orders over the phone to the full cycle process of identifying a target market, prospecting that target market, approaching that target market, and ultimately trying to parlay those contacts into gainful customers. The production department, or the service department may not like all the actions of the sales department, but very often the jobs in the production department or the jobs in the service department are dependent upon the sales department. I guess its ok to not like the salesmen or saleswomen in your company but from a business perspective you can not discount their value.

Some thoughts on Selling:

Were not selling stuff, were selling solutions
Selling is not trapping a prospect in a room or on the phone and subjecting them to our “pitch”, selling is maybe 80% listening 10% asking followup questions and 10% wondering if you have asked all the pertinent questions
When selling are we telling them what we want to tell them, or responding to what they are asking for
The true full selling cycle from development to implementation to closing a sale is an admirable achievement. Most that are successful at this can find many successes in business.
Many (maybe most) Presidents, CEOs, Vice-Presidents began their careers as a salesperson
All in the company should have a role in sales from CEO/President to receptionist- Do you think Steve Jobs- Apple, Bill Gates- Microsoft sells? – Absolutely
Listening is a skill… and maybe a salesperson biggest potential asset. – Like many others, I was fortunate to be born with 2 ears and just one mouth.
STOP- and pretend you are the buyer of your product or service- what do you want to hear?

I cant imagine meeting a person that wants to buy a business and not asking them what type of business do you want to buy?, where do you want to buy that business?, how much do you want to spend on that business?, what is important to you when buying a business? and so on.

When a person wants to meet with me regarding selling their business- I would like to know why do you want to sell your business? When someone runs a business for 5,10,20 ,30 years the why can be a pretty compelling answer. I continue to ask more questions and listening. It almost doesn’t even sound like selling, and I think there is nothing wrong with that. Maybe listening is a byproduct of experience, or maybe it is taught, or maybe some people are just better listeners than others. And maybe that’s what makes one a better salesperson than others.

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