Florida business for sale Archives - Page 7 of 7

Are Todays Job Seekers Tomorrows Business Buyers

By Scott | September 1, 2010 - 10:05 am |July 19, 2013 business broker florida, buy a business, entrepreneur, how to sell a business, Main, sell a business, sell a business florida, selling my business, small business ideas, small business owner

2 Comments

In Business Acquisition and Sales the “pool” of most future business buyers are currently employed by someone else right now. The same applies for future Entrepreneurs. But what about those currently unemployed?

The job market seems to have an abundance of very qualified people chasing a very limited number of jobs. The number of those unemployed in the US seems like a fairly difficult number to track, but with unemployment in the 9-10% range-depending how you measure or guesstimate it seems that you have well over 10,000,000 (ten million) people unemployed here in the United States. Is owning your own business by either starting a business or buying a business a viable option for those unemployed.

Is Buying A Business The Future For You?

Is buying a business or starting a new business the right career path to all of those seeking to “re-find” a career or just get off the ranks of the unemployed. Buying a business or starting a business is not for everyone, but it can be a very viable option for many. There are the both mindset obstacles to overcome, and finacial battles to be won before one can make the transition from employee or currently unemployed to one that owns and operates their own business.

I personally think overcoming the mindset of “can I do this?” may be the bigger of the 2 obstacles. To over use a saying- “Thinking outside the box”. Personally I feel there seems to be so many that are “trapped” inside the box, that thinking outside the box in this situation can be a life changing situation. I believe that many of those so many qualified individuals that are currently unemployed will consider “going out on their own” and enter the world of entrepreneur by either starting or buying a business.

For example- I am working with a business owner of a small computer service store, assisting him in selling his business. He is very anxious to sell his store as he has plans to move out of state to be near a friend and join him in a business venture there. He recently reduced his price to $65k due to his increased interest in moving on.

Photo (c) lusens.com

He runs a viable one man business, works about 40 hour weeks, and his business is up over 2009 numbers. His “Owner benefit” is approximately $70,000. So are you buying a job that pays you $70,000 a year? Are you buying a career? Are you buying the ability to control your career? It can be a nice situation for the right person.

Sending off resumes, searching the job board, going on job interviews can almost turn into a routine that may seem to have no end.- Is it a comfort zone, is it doing everything you can do to find your next career. I suggest spending a few minutes looking on a website such as mine Florida Businesses For Sale , or maybe some other larger business for sale websites like www.bizbuysell.com or globalbx.com, or possibly look on Flippa.com to see what sort of businesses for sale are out there, or possibly a website, or e commerce site may be available, what are the cost, and is it even a possibility based on ones current situation. I think one should at least allow the concept of buying a business or starting a business to come into the equation. Certainly owning or running a business is not for everyone, but is it for you?

5 Reasons not to consider starting your own business or buying a business. – Or maybe you should…

Money is needed to buy a business or start a business– but do you have any realistic feel of how much it would take.
Ive never bought a business before or started a business before – talk to most all businesses owners that have owned their business for 10+ years and they will also say the same thing.
The economy is doing so bad now, its just the wrong time to try a new venture.- There are many business owners that have and are delaying the sale of their business. A “pent up” demand is being create. The workings of supply and demand show that as supply increase prices reduce.And of course also the choices are more abundant.
Some people are just more prepared to buy a business or start a business. This is true, but are you one of those “some people”. When you talk to long time business owners you learn that all the uncertainty that you may have while making this major decision is completely normal.
My Job Searching is really going well- I think that is great, my decision to “be my own boss” 20 years ago was about controlling my own destiny, perhaps there are different ways to do that.

My profession involves a lot of time talking with business owner regarding their short and long term business plans. Many current business owners feel they need to get their financials/ and Sales back up to a level commensurate to the value they seek from the sale of their business. This is creating somewhat of a pent up supply I also speak to many potential business buyers and understand that everyone’s situation is so different. Available money, family, location, other personal matters all go into the evaluation. Part of my long term planning of my business broker activities does assume that many of todays unemployed will be tomorrows business buyers.

Business for Sale-Who, How Many, How Much?

By Scott | July 31, 2010 - 7:59 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

Businesses For Sale In Florida

Florida is experiencing the current economic downturn and is somewhat representative of the US economy. Actually Florida may be feeling the effects of the downturn more than most of the US as its economy seems very tied to the real estate industry. I have always found value in trying to understand some of the numbers behind the numbers to help me to perform my role as a business broker. The following are some items of note as it relates to business buying and selling activity in Florida.

Certainly not all business sold do involve a business broker, nor are all businesses sold in Florida handled thru this association, but as a rather large association it is fairly representative of the buying and selling activities in Florida. Web based businesses and or websites may be sold at an online auction, larger “brick and mortar” companies may seek larger M&A firm for representation, but the activity within this association does provide some insight for the business owner outside of Florida that may buy or sell a business.

Per the currently active listed data available thru the BBF Association- As of today almost 4000 business are for sale of those:

1) Businesses For Sale in Florida over $10M – 5

2) Businesses for Sale in Florida Priced over $5M- 30

3) Florida Businesses for Sale Priced over $1M – 330

4) Businesses in Florida For Sale with Net Income over $100K – 1227

Other observations:

a) Largest type of business Listed For Sale in Florida– Restaurants – 773 (this represents almost 20% of all businesses listed) of those 223 have Net Income >$100k.

b) Home Based Business For Sale – 402 (represents about 10% of all businesses listed for sale)

c) Florida Internet related businesses for sale 43, of those: Asking Sale Price $1M+ is 8, those with net income over $100k – 20

Businesses Sold in Florida thru the Business brokers of Florida

of all the business sold in the last year (6/2009-6/2010) Here are the following Averages on Florida Business Sold.

Average Sales/Revenues- $636k
Average Selling Price- $252k.
Average Adjusted Net Cash Flow – $114k.
Average number of Days to sell the business- 226 days or approx. 7 1/2. Please note this figure does not include business that got listed for sale and did not sell. Estimating those in the average time to sell a business may exceed a year(my guesstimate ).

If you own a business and do not plan on exiting from that business for several years, it still makes sense to understand the value of your business. What is the asset that you have worth? What sort of multiple of cash flow should your business sell for?

Understanding what other similar businesses are selling for does provide some basis. but the devil can be in the detail… Also growing your company thru acquisition can be both a viable and profitable business decision. What may it cost to acquire a synergistic company? A review of some reliable numbers may be a good first step in the needed due diligence.

(some info shared above compiled from Business Broker of Florida Assn website as of 7.30.2010)

Selling My Business – How Much is my Business Worth

By Scott | July 19, 2010 - 4:03 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

4 Comments

Selling My Business How Much is my Business Worth. Almost all businesses are for sale to some degree. Lets say your business is not For Sale. Assume Your business is worth $100,000. You love what you are doing, someone contacts you with an offer to buy your business for $500,000. Is your business now For Sale? The preceding is not a likely scenario for most business owners. To successfully sell your business planning and preparation is needed. But if you are now or at some point considering the sale of your business you may want to consider the following 3 points:

1. Identify your honest interest level when selling your business. Early in the decision process of selling your business consider what approach you may take towards selling your business. As a Business Broker in Florida I interact with the various interest levels by small business owners.

My business is not for sale but if someone walks in and offers me way more than what I think it is worth- I would sell my business
My business is not for sale but if you run across someone that would want to buy it please let me know.
I want to pursue selling my business but I won’t sell it for less than…( A somewhat inflated price) . I am willing to accept that it may take 1-2 years to sell my business, and if priced too high I can accept the fact that my business may not even be sold.
I want to pursue selling my business and after significant due diligence I feel the price I am seeking is consistent to what other like businesses have recently sold for.
I want to sell my business and I want out now. I will set my price aggressively and set a lower price than price currently sought for businesses similar to mine. I will expect this aggressive pricing to both help me sell my business and decrease the amount of time it will take to sell my business.

If you do have a true interest in selling your business as suggested in above last 2 points you do need to exercise due diligence to gain understanding of what the value of your business may be.

Photo (c) nett.com.au

2. You can expect that the perceived value of your business to you and the value of the business to a potential buyer will probably be 2 different values.

Ultimately the price of your business is what a willing and able buyer is prepared to pay to buy your business.
Seek “reasonableness” to your price that you will seek to sell your business for. If similar businesses to yours are sold at 1 1/2 times adjusted cash flow, why is yours worth 3 times adjusted cash flow?
Ask yourself what you honestly would pay to buy your business.
Do a free Search on my website https://www.sellabusinessflorida.com 0r similar sites to research what similar businesses to yours is asking to sell their business for. Remember – all businesses are different, but use such a search as part of your due diligence. A business for sale asking price and the price a business sold for can be greatly different, but asking prices can provide some basis-while current Businesses Sold information is more pertinent
Speak to your trusted advisers. A business broker may be able to help with non-public info on sold businesses in your area. Your accountant or attorney also may or may not be aware of such sales as well. A Professional Business Valuation specialist may benefit you.

3. Whether it is part of your exit strategy to sell your business or not, you should have an exit strategy.

Most small business owners do not have an exit strategy.
If you own a business you should have an exit strategy. Do some planning, perform some due diligence. Know what you have or may have.
Even if you are not planning to sell your business there is value in knowing approximate value of this potentially large asset. You know what your house is worth, you car, your other assets. Understanding the value of your business can be a significant piece of information when planning ahead.

Selling ones business can be a rewarding experience when done properly. Understanding a proper value for your business can set the stage to a successful sale of your business or a business that is unable to find a willing and able buyer.

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

5 Comments

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.

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.

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