small business owner Archives - Page 2 of 13

7 Ways to Exit Your Business-Choose One

By Scott | December 8, 2011 - 7:31 am |July 13, 2013 Florida Businesses For Sale, Main, sell a business, sell a business florida, selling my business, small business owner

Ways To Exit Your Business

There are several ways one may exit their business. Business Owners may want to exit a business they have owned for decades just because they just no longer have an interest. Or a small business owner may “get out of their business” after a short period of time of just owning it a year or 2.

Most all entrepreneurs and small business owners think long and hard before they decided to buy a business or start a business. So often so little thought goes into an exit strategy. A small business may be the result ones passion or burning desire to provide a certain service or product.

A small business can also be and usually is one of the largest asset a small business may own. It can be a passion but it also is an investment. A significant investment. Most investments one enters into an exit strategy should exist before the investment is made.

Photo (c) advantagebusinessltd.com

You buy a commercial property to rent out with the intention to rent it for 10 years, hope for market appreciation and plan to sell in 10 years.

You buy a stock. You buy at $10 a share and plan to sell if stock goes to $15 (unless the company fundamentals change).

You decide to start or buy a business, it gets going and does well- is your plan just to run it forever? Well you cant, because none of us are here forever.

Emphasize On Making Plans For Your Business

If your plan is to start a business grow and run the business until you are 65 and then sell it- you have a plan and are ahead of most. It is so easy to start and buy a business and spend a lot of time preparing for that acquisition or start up, then get wrapped up in the transition or start-up, then get wrapped up in the day to day, and then one day you get real sick, and you have no one in your business that knows how to run your business, and laying in bed decide that you may need a plan- it may be to late then.

I am currently a business broker based in Florida and find my role of meeting with small business owners brings awareness to the need for an exit strategy. I had owned my own small business for 20 years and realized how ensconced with the day to day one can get with their small business. There are several ways to exit ones business- I primarily work with small business owners looking to sell their Florida business, but observe some of the other exit mechanism and have been personally involved with several of these methods.

These are a few methods a small business owner may utilize to exit a business. Some are good, some not so good.

The Good, the Bad and Ugly Ways to Exit Your Business:

Sell at profit- can include “merger with other companies
Sell at Loss
Close your doors-bankruptcy, long term negative cash flow.
Poor Health, Significant Injury, Death
LBO (Leveraged Buy Out)
Successfully grow it to such a size and take it public
leave to children

Or some combination of the above- one could die and leave the business to the children

But when you look at the above list you recognize that some of the exit strategies you choose on your schedule and others are “chosen for you” and you have less control over the time frame. Your plans can change and often do, but I suggest you plan to have a plan

When Your Product or Service is You

By Scott | October 31, 2011 - 8:23 am |February 24, 2014 business broker florida, Florida Businesses For Sale, Main, small business ideas, small business owner

Be The Best You Can Be

Small Business Marketing- Selling a Business

But no one can Out-You You. Or stated in the first person- “You Cant Out-Me Me” .We all are busy trying to move our businesses forward but do we really know if Twitter will be in ours or others marketing plans 5 years from now. So how or where does one focus. Is your product of service you sell- you?

I am a business broker based in Florida and I help/work with people with the process of buying and selling of businesses. One aspect of the business that makes a business more saleable is the ability for the business to not be dependent upon the owner so that if/when the owner is “replaced” a transition can be seamless. So building a business based on the brand or product being “You” can appear counter-intuitive.

My view based on my experiences is that a customer does business as much with “the way a company does business”, “company philosophies”, “company approach”, as much as they do business with a certain individual. When you think about it we do like the person that we do business with but what is it that we really like? I tend to think it’s the way that person deals with me, and it’s easy to assume that approach starts” at the top”.

: How Important is Business Owner when Selling a Business?

So I think it’s easy to assume if a customer/client likes the approach or way you do business as an owner and your “brand” is based on how you approach service and ethics and business practices- that this is who the company is and the company is NOT you. If you as the business owner demand honest ethical reliable hard work from yourself and customers see that, they know what your expectations as a business owner are.

So if you as a business owner are not truthful, don’t return phone calls, think it’s ok to quote one price and then demand another price after the work is done why would the customer expect anymore from anyone else in your organization.

Submit Your Business To Your Philosophy

But the product/brand that you are building on the web content that you post to build your brand may not need to be about you by name- it may be your philosophies, your ways and approaches toward running your business. I have been posting business articles about my experiences, views, and ideas for several years. When someone engages me as a business broker -they are engaging me, and they can understand me through my writings if they choose to do that as a starting point- or they can choose not to engage me as a business broker because of my writings.

Maybe you don’t have the most experience, maybe you are not the smartest, maybe some of what you offer has some shortcomings- most everything does. We all have areas of what we do that can use improvements, but you know you do bring something to the table that is unique to you.

So as the internet changes and strategies change on what new site/app/blog/tweet/hashtag/social bookmark you should be using- you can retain certainty that you and your story will forever remain unique. There is only one You. But as the old song goes from The Who – Who Are You? – You are your feelings, your beliefs, your experiences, ideals, likes, dislikes, the good and the not-so-good of you, and your way of going thru life (and business).

Nobody can do you better than you. So when you are creating or building a brand, and the brand is you- no competitor no matter how much money or how smart or how experienced is going to out you- you.

Website & SEO Before You Sell Your Business

By Scott | October 19, 2011 - 10:27 am |July 13, 2013 business broker florida, buy a business, Florida Businesses For Sale, how to sell a business, sell a business florida, selling my business, small business owner

1 Comment

Selling your business requires you to prepare your business for sale. One of the important steps in preparing your business for sale is a well designed web site that produces results. Below is information from the perspective of an SEO Web Design firm.

Tampa SEO is a full service web design and SEO agency in Tampa, FL. Here’s an article they wrote regarding web design and SEO prior to selling your business.

Why You Need SEO & a New Website Before Selling Your Business

So you have decided to sell your business and are making moves to get top dollar for your baby. Being a good business owner you understand that although your business means the world to you in the business world it is about proving the dollar amount from both an appraisal and sales perspective.

Whatever your business may be, the prospective buyers want to see the purchase and new ownership process go as seamlessly as possible. This means all your records are in order, the permits or licenses are all up to date, and most importantly the business will continue to be as or more successful than it was with new owners. Tampa SEO highly recommends that a new website and SEO campaign can help you with the latter.

Your business website represents your professionalism

When it comes to business success most owners will agree that the online market is one of the most important. Your website is the representation of your products and services, your image, your authority in your industry, and a way to provide potential customers information in a day and age where the Internet is the first place people look. Basically, having a well-designed website will help build business, retain business and represents everything you have worked so hard for when you yourself can’t make a live impression.

Tampa SEO knows that a modern website helps businesses before, during, and at the end of their operation so that they can showcase their professionalism and utilize their website as an additional marketing tool. Although having a great website will help with conversions your business will still need a way to attract customers and PROVE that it is a great marketing tool before its sale. This is where search engine optimization (SEO) comes into play.

Photo (c) topseopicks.com

SEO is simple, easy, and fast way to get increased market share prior to selling

While a website can be the source and reason you convert leads, SEO is the reason these leads are finding you. A new website and SEO campaign helps customers or clients who are already looking for your products or services find you quickly and easily. When a customer goes on to Google and searches for a generic phrase related to your business SEO makes your website come up high in the rankings and improves the chances that that customer will make a purchase from you.

This relates to the sale of your business because with SEO all the website activity is quantifiable. When you can prove to potential buyers that you have X amount of traffic and X amount of conversions you have proved your market share and ability to sustain business in the future. This is a great selling point as most other marketing campaigns- TV, radio, Yellowpages, etc. are difficult if not impossible to measure.

Shows new buyer you have continued to improve the business while selling

Every business buyer wants to know that the risk they are taking by purchasing your business is justified. What better way than showcasing to them through your new website and SEO analytics that your business is sustainable and can continue to grow through attracting new customers online. You have showcased the effort to improve marketing before you sell your business and have begun the process of attracting a bigger clientele through SEO.

It seems that websites and Internet marketing are a piece of every business plan these days. When selling your business make the decision easy for the buyer. Showcase to them that you care about the success of the business even after ownership has been transferred by investing in a website and SEO campaign that will continue to be successful even after you are gone. It is a huge buying factor and can improve the bottom line you can charge for your business as it is all justifiable.

Scott M Messinger is a business broker based in Florida. I work with both business owners and individuals in the process of buying and selling businesses. I normally write my views and perspectives from a small business owners standpoint. The above article is helpful information provided from the perspective of an SEO Web Design Company.

Waiting…. to Sell Your Business

By Scott | October 3, 2011 - 9:49 am |July 16, 2013 business broker florida, buy a business, entrepreneur, Florida Businesses For Sale, how to sell a business, Main, small business owner

How Long Can A Business Owner Wait To Sell Their Business?

What if this down economy last 2,5, 10 years. I am generally an optimistic person. I started and owned a business for 20 years and during the lean years I continued to see the glass as half full, and fought thru some difficult years and successfully sold my business when I was ready.

I believe there are many business owners that had planned to have exited their business by now. Maybe they planned to sell their business and begin enjoying “that retirement thing” they have heard of, but had to delay those plans due the the reduced value of their 401k and other investments, the reduced equity in their home, and the lower revenue and profit of potentially their biggest asset- their business. Its easy and common to say ” I want to sell my business but I don`t want to sell it now when my business is down”. I understand that thought process.

Things To Consider When Deciding To Sell Your Business

But I think from here is where the thought process becomes more difficult. Considerations should include:

What if we remain in a prolonged recession- can I wait 3-5 plus years?
What happens in our world of supply and demand. Is a pent-up supply when released, going to affect prices/values downward as the increased supply hits the market?
Is there really this large number of baby boomers looking to exit businesses and move into retirement to further flood market and affect supply/demand price?”
Maybe I’m told I should wait… Ive been working for 20-30 years towards this “end game”, do I really want to wait?

Photo (c) apptivo.com

As a business broker in Florida, maybe some day I will go to a meeting of business owners and not hear stories about a foreclosure that one is going thru or their friend is going thru. Maybe I will attend a seminar or educational session put on by bankers or SBA bankers that doesnt sound empty and completely disconnected by thier purported audience- the small business owner , that needs financing or entrepreneur that wants to buy a business. This may happen, but its not going to happen tomorrow. But how many tommorows is it going to take. How many more birthdays will pass before the time is right to sell your business.

How to Double Your Customer Base Overnight-Buy a Competitor

By Scott | September 23, 2011 - 9:39 am |August 7, 2013 business broker florida, buy a business, Main, sell a business, small business owner

1 Comment

As a business owner for 20 years I was involved in an industry that was expanding and rapidly growing. The size of the “pie” my competitors and I were competing over was getting larger as the industry grew and we all sought to get our share of this bigger “pie”. So we increased our customer base as the market grew, and we also grew our customer base by buying competitors which resulted in many successful synergistic acquisitions.

In today`s economy in so many industries people are needing to spend less, cut back and therefore the “pie” is staying the same size or the “pie” is getting smaller. So you have business owner competing for their piece of a smaller pie . As you have the same amount of competitors competing for a smaller pie either all get less, some get more by pricing or efficiencies, but those getting more, results in other competitors getting less and or so much less that they no longer exist.

Today as a business broker based in Florida. I am working with several business owners looking to keep afloat and looking for exit strategies that meets their needs. Selling their business and going to work for the acquirer is an interest I have heard on several occasions as an exit strategy that they would welcome. (Also work with several business owners that have solid business models that are doing well).

Buying A Competitor

A fast and often cost effective way to gain a bigger piece of the pie is by buying a competitor. Growing your customer significantly “overnight” by buying a bigger “piece of the pie”. Buying a business in a growing industry and or economy is a solid and effective way to grow a business. I had utilized this approach on multiple acquisitions to add to our own organic growth. Buying a business, or buying a competitors business in a recession can also be an effective means to grow your customer base and grow it fast.

Often most business owners dont consider acquisition as a possible way to grow a business because they feel they do not have the funds or resources to make such acquisitions. But:

1)possibly you can find a struggling competitor that may welcome the opportunity to escape the burden of trying to run a struggling business

2) possibly you can buy a business of a competitor that offers Seller financing.

3) possibly part of the purchase price can be the assumption of debt on trucks and or equipment that may be assumable and may be affordable thru the synergistic cash flow of the business

4) possibly offering the owner of the business you may buy long term employment. A small struggling business that may have a few employees- who may be the last person to get paid?- the owner. An owner may welcome the premise of steady and consistent compensation.

5) Possibly you can secure outside financing- An approach I always used as my last choice but may fit your situation

Furthermore, would you be “just buying a failing business”? No. Syngergies that can be realized can be plentiful and the cost saving that follow may help or completely finance the acquisitions.

Cutting The Costs When Buying A Competitor

You have an office space or shop so does the competitor. Can you and your competitor both operate under one roof? When you eliminate the need for 2 spaces you also eliminate so much of the lease cost, utilities, insurances, phone, internet and other Fixed Overhead cost associated with that space. Also by adding these customers your customers, density may increase and you may be able to increase efficiencies in service and maybe you need 1 less employees or more, along with the benefit cost that goes along with the employees.

Advertising does not need to be duplicitous, maybe some equipment of vehicles are also puplicated and can be potential cost savings. As a business broker I try to look at buying selling a business from the perspective of a business owner and see that during this recession improving your position thru acquisition may have many long term beneficial results.

So what do you do when you are trying to keep your piece or get a bigger piece of a smaller “pie” ?

Buy another piece of that pie it may not cost you as much as you had thought.

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