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How to buy a business with a business broker assistance

HOW TO BUY A BUSINESS

Start from scratch or find how to buy a business

When people want to start a business, they have to begin from scratch, from developing the business idea and building up the company. But there can be problems beginning from the scratch and some distinct disadvantages such as difficulties in marketing the new business, challenges in building a customer base as well as hiring. Establishing cash flow can also be a problem for a person who is just starting the business. When you decide to buy, it is less risky. When you buy a business in Florida, you take over a business operation that is already done by another person. You get a business with a good reputation, established customer base, and employees who are already acquainted to the business. What are the best strategies on how to buy a business?

It can be costlier to buy a business than starting a new one, but it may be worth it since you are likely to get legal rights that include copyrights and patents. You also have access to business SBA loans. Of course, you’ll need to be careful so that you don’t get stuck with outdated distribution methods, less cooperative employees, or obsolete inventory.

When you search business for sale you should be specific. For instance, when searching businesses for sale Florida, you can specify the business by searching to buy restaurants or businesses for investor visas. Think hard of the business you are interested in and the business you may be more familiar with. You also have to consider your experience in that particular business, the size of the company, location, number of employees, as well as sales.

Using a business broker assistance

Most brokers can be a great help to business buyers, especially for people who want to buy a business for the first time. Here are the ways brokers can offer assistance to you as a buyer:

  1. Help you pinpoint your interest- brokers will help you to find what you are interested in and businesses that match your skills. Using a broker may help you figure out that an industry you have never considered would be best for you. In fact, finding a business has a lot to do with personalities. If you are great at sales, then you should be looking for a business that is lacking a good salesperson.
  2. Negotiating and assisting with paperwork- brokers help both parties to reach an agreement but more importantly, they understand the process involved in transferring the business from the seller to the business buyer. The business buying process can be complicated at times and its good to use an experienced business broker to make sure things go smoothly.

Verify a business value

One important thing to keep in mind when researching how to buy a business is that during the business purchase process, you will have a period of time to do your due diligence. This includes things like examining the company’s balance sheet, cash flow statements, tax returns, income statements, contracts, and future expected earnings. Many business buyers will use an accountant to assist with this process.

Here are the things to consider when verifying business value before you decide to buy it:

Inventory

These are all the products and materials for use in servicing clients. You should be present during the examination of the inventory to know the status of the inventory, what amount of inventory is available at the moment and what amount will be available when the financial year ends. For example, you have decided to buy gas station; you should know the average monthly inventory necessary to maintain the sales, compared to the existing inventory. You’ll need to make sure the two figures are adjusted at closing, so you are only paying for what is there.

Furniture, Fixtures, and Equipment

The seller should give you a list of the equipment as well as an estimated market value. You should to know if they are in proper condition, and all the costs the owner has incurred in maintaining the facilities. If you have decided to buy a Restaurant, then check that all of the facilities are in acceptable condition, check the kitchen facilities, bar, tables and chairs, toilets and all other facilities.

Copies of all documents and contracts

Contracts include all the vendors agreements, client contracts, employment and union contracts. Evaluate all the details on the documents and make sure they are correct. You can also have an attorney or an accountant go through the documents to give you a better idea of the specifics. A more detailed list of documents and pre-closing matters are as follows:

• Tax returns
• Financial statements
• Sales records
• A complete list of liabilities
• All accounts payable
• Debt disclosure
• Merchandise returns
• Customer patterns
• Marketing strategies and advertising costs
• Industry and market history
• Location and market area
• The reputation of the business
• Insurance
• A current employees list and organization chart

Mistakes to avoid when buying a business.

Try not to be anxious when you want to buy a business. It may end up having a negative effect on your ability to evaluate everything fairly. Looking on all the steps on how to buy a business, an anxious buyer will have trouble pulling the trigger and entering into a contract. This is referred to as buyer’s remorse and it is common in first time buyers. Many business buyers wind up missing the best opportunities because they are too afraid to enter into a contract of sale. You may never wind up buying a business if this is where you stand. You should know that you will have time to do your due diligence after the contract is signed.

The other mistake to avoid is to not try to expand a business before you learn it. Buy a business, run that business the same way the seller did for at least six months and then slowly make changes. If you go in and make changes on day one, your clients may be unhappy, your employees may be unhappy, and you may damage the business. Keep things simple and easy for everybody at first. Once the transition is over, then you can slowly customize the business to your needs. This is why it is so important to know how to buy a business.

How to buy a business

Blog articles for business buyers

Blog articles for business buyers

Blog articles for business buyers

Business buyers in Florida

Are you one of the business buyers? Are you considering owning your own business, especially buying a business in Florida? Have you always dreamed of owning your own beauty salon, hotel, restaurant, laundromat, coin laundry, or even thought about buy gas station? We like to think of a someone who owns their own business as someone who finally achieves that ultimate dream. Let’s face it no matter how hard you try in the Florida you might not make it as a millionaire overnight.

However, there are so many dreamers out there in the world that not just work hard but are smart about it and own their own business. When someone buys a business millions of dollars could potentially be made. It seems like more and more people are now disliking work at their jobs more so now than ever. When someone buys a business, they are ultimately giving themselves not just independence from their job, but also financial freedom.

For those who have or are thinking about a new business especially around South Florida it is important to know what they need to get started in this process. For example, any business for sale could be worth a million dollars or nothing in the end. As a business owner anything is possible as long as you are willing to put in the effort to grow the business.

Options for business buyers

In Florida there are many options for business buyers. You should start by searching businesses for sale in any category you decide such as construction businesses or restaurants for sale but don’t be afraid to call your business broker and ask for assistance because you won’t always qualify to buy any business for sale.

Besides keeping an eye on all of the businesses on the market, a good business broker will also assist you when it comes to discussing the steps involved in buying a business. You may need a business SBA loan, or a business visa and your business broker can also help you here.

So, what is holding you back.? Is it finances, or have you not had the time to buy a business in Florida? Whatever the case may be, the best way is to jump right in and call a business broker to get your business search started. Your multi-million dollar dream is just a phone call away!

Blog articles for business buyers

Eleven Things You Must Know Before Selling Your Business

Selling Your Business

Selling a business can be a challenging task. Why not streamline the process by boning up on the basics before you begin? Anyone who chooses to sell a business will at some point consider seeking professional assistance. In order to establish the business valuation and market the company in the best possible manner, the vast majority of sellers turn to professionals. This strategy makes perfect sense if you have never sold a business before or if you hope to leverage the marketing reach of a reliable business broker, take advantage of resources, such as buyer financing, and to maximize the value of your business.

In order to establish an accurate business valuation and eventually sell a business for the best possible price, consider the following tips for business sellers:

Be honest about your business’s strengths and weaknesses:

A professional can help you set a realistic price: A price that’s too high will make an otherwise easy sale a major challenge. Learn what comparable businesses in your area sell for and price yours to move, not languish on a listing board. Research is the key to setting the right price, so be prepared to have a business broker to dig in and study the local market before you settle on a specific price point.

Have proof of income ready to go:

Buyers want to know the health of your business, so be ready to show verifiable documentation to prospects. This can take the form of tax returns or financial forms, such as, profit & loss and balance sheets.

Never list before the time is right:

If your business is too young (less than a year old) or still going through growing pains, now might not be the best time to list. It’s a fact that the older and more established a business is, the faster it sells.

Be willing to negotiate on price:

Few home sellers set a fixed, non-negotiable price and expect things to go smoothly. The same thing applies to businesses. Have a range in mind rather than a specific number. Depending on how motivated the buyer is, you can move around within that range before closing day.

Have analytics ready to go:

These days, sales and traffic analytics mean a lot, especially if your business is mostly an “online” affair. Google Analytics is a free service, but most business owners use multiple services to keep track of their financial health. It makes sense to have at least 6 months of analytics on hand to show prospective buyers.

Keep working even after you decide to sell:

One of the most common pitfalls for sellers is apathy. Once they list their business for sale, either through a broker or on their own, they stop working. Smart sellers continue to operate their businesses “full blast” even after listing. This keeps financials looking healthy and maintains cash flow. No seller wants to buy a business that has been slacking off for the past few months.

Make a super-detailed transition checklist:

Write down every conceivable thing that a new owner might want to know. Think about things like website login information, passwords, analytics logs, customer lists, seasonal promotion details, local vendors, and other relevant data they will want to have on hand the first day of operation.

Know how to qualify a buyer:

You’ll need to come up with some methods to make sure buyers are truly interested and aren’t just kicking the tires. Maybe a good-faith deposit is the answer. An experienced broker can help with this part of the process even if you have no idea how to whittle down a list of prospects.

Talk with a professional broker:

Even if you don’t intend to list your business with a broker, it helps to consult with one and find out the lay of the land. In most cases, a broker will agree to work with you on a non-contract basis for a flat fee. In any case, it’s almost always a smart move to at least speak with an experienced broker before you decide to go it alone.

Understand what buyers are looking for:

Put yourself in a buyer’s shoes and brainstorm about what it might be like to be on the other side of the deal. Consider that many buyers are retirees who want a steady stream of income, while others are young entrepreneurs looking for something they can turn into a hands-on career or family business. Ask yourself what kinds of buyers will be interested in your particular entity.

Understand what a good broker can bring to the table:

Like a seasoned real estate agent, an experience business broker can take care of large chunks of a transaction. Whether that means qualifying prospective buyers, structuring a complex deal, negotiating with potential buyers, establishing a precise valuation of the business, or conducting a powerful marketing effort, an effective broker can do the lion’s share of the work once you decide to list.

A business broker, when used properly, can take care of the heavy lifting when it comes time to sell a business. One of the first steps is determining the business valuation and deciding on a realistic selling price. But there’s really much more to it than that. Most people would never dream of selling a large home without the assistance of an experienced real estate agent. So, why not do the same when selling a business? Brokers can deal with forms, filings, marketing, valuation, buyer qualification, setting a smart price, and all the minutiae of closing.

Avoid the common pitfalls by teaming up with a competent broker. There’s no reason to go it alone when an experienced professional can handle the details and close the deal at a fair price.

The Six Figure business Broker

Florida business broker teaches proven method to land six-figure incomes

Wellington, Florida, July 22, 2018—After building a multi-million-dollar business broker agency from the ground up, attorney and broker William “Bill” Thomas has taken his proven strategies for buying and selling businesses and developed a step-by-step guide to closing business deals. His book, The Six-Figure Business Broker, will be released August 03, 2018 .

“As an attorney, I have done hundreds of commercial and business closings for business brokers. That prompted me to form a procedural system for brokers to follow to make sure they were doing things accurately and completely,” Thomas says.

His sales model starts with due diligence for his sellers prior to making a strategic decision to sell and prior to creating a pricing model for the merger. His preparedness allows him to maintain a closing ratio above 83 percent, compared to the industry average of 22 percent for business brokers.

This system has been taught within his agency, Florida Business Brokers, since its founding. The company has grown to a network of more than 30 top performing business broker agents throughout Florida.

“I try to transfer a complete understanding of business brokering, so when the reader begins selling businesses, their new experiences correlate with the knowledge they gain from my book to promote the highest level of understanding in the industry,” Thomas says. “The book is not an ABC guide, it’s an A-to-Z guide.”

In addition to his work as a commercial real estate attorney and business broker, Thomas has been a longtime aviation instructor and brings his teaching and coaching background to help real estate agents break into business brokering, as well as helping existing business brokers improve their careers.

For more information on The Six-Figure Business Broker, or to contact Bill Thomas for interview or speaking requests, please contact him directly at William@FloridaBizMLS.com or 561-914-1182.

About William “Bill” Thomas
Bill Thomas is an attorney in both New York and Florida. He specializes in selling businesses in South Florida. For the first 12 years of his legal career, he handled thousands of real estate and business closings. Over the last 15 years, he has handled many multi-million-dollar business and commercial sales for South Florida business owners as a business intermediary. Bill runs Florida Business Brokers, a company where 25 operating agents throughout Florida have gone through his training program and have become successful business broker agents.