The Holy Grail Of Business Success.

5 Critical Points You Must Look Into Before Taking The Plunge

The Holy Grail Of Business Success – 

5 star engine picture

5 Cylinder Airplane Engine with 5 Business Points

The sale price of any business is based on a multiple of trailing net profits, (or losses).
All you need to do to locate a great deal when you go to buy a business is find one with a good product and poor controls.

When you find it, (and there are plenty of them) you found a deal because every single business in the world, no matter how big or small operates the same exact way. They all need FIVE points to operate.

  • Lose One, and the business will be shaky.
  • Lose Two and the business is about to fail.
  • Lose Three, and failure is imminent.

There Are No Exceptions To This Rule … None What-So-Ever.

Let me paint you a picture before we get into it, so you can easily understand it:

Think of a 5 cylinder airplane engine. It is shaped like a star, and when all 5 pistons are firing, the engine runs smooth as silk.

As long as the engine is firing on all 5 cylinders, the engine is balanced, operates smoothly, produces power and pulls the airplane at a speed where it can fly high into the air. (and in some instances, do lots of tricks)

  • If it loses a cylinder, the engine is off balance, it vibrates and begins to lose power. It might continue climbing, but not at the rate and speed it was.
  • If it loses a second cylinder, all hell breaks lose and the plane is going to have a hard time maintaining altitude.
  • If it loses a third, it’s all over – the plane is all of a sudden on a one-way-trip to the ground. The pilot help in determining the force of the landing, but make no mistake. The plane is going to STOP flying.

The same exact thing happens to all businesses, except the pistons are different.
They have a name and a function.

They are:

  1. Vision
  2. Customer Identification
  3. Marketing
  4. Front End / Customer Service
  5. Back End / Product Fulfillment and Delivery.

Like an engine, all cylinders are created equal, and all are of equal importance.

The exact same thing holds true for a business.

  • Lose 1, the going gets tough …
  • Lose 2, It’s difficult to maintain …
  • Lose a third, Game-Over. It’s just a matter of time before the business STOPS operating.

 

Here Are The 5 Critical Points That Every Business Needs to Operate, And What is Critically Important For You To Identify Before You Buy.

1. Vision:
Every business needs someone driving the bus! Vision for a business is key –
Vision comes from the person in charge looking at the business from a 30,000ft view. Looking at the big picture and identifying competition and opportunities.

Further the direction of the company and coming up with a strategy to get there. Many business owners simply lose their vision for one reason or another and the business begins to falter.
When it comes to business Vision, you need to know where the business is now,
What is it and what does it stand for, where do you want the business to be and when, and of course, what are you willing to do to get the business to where you want it to be.

Look at the business greats …. John D Rockefeller, JP Getty, Henry Ford, Steve Jobs, Jack Welch, Michael Dell, Bill Gates and Donald Trump. They all had or have vision.

 

2. Customer Identification:
The amount of business owners who have no clue as to who their customer is, or who they want them to be is stunning. It is so vitally important for you to know who your customers are.

Lets take a quick look at a restaurant for example. If you owned a high-end steak or seafood restaurant, you wouldn’t be advertising in the projects would you? Of course not.

If you owned a fried food restaurant, you wouldn’t be wasting advertising dollars in the high-end neighborhoods either.

If you don’t know who your customer is, how in the world can you go out and reach them?
When you own a business, you also want to identify the exact type of customer you want and then go after them.

Just look at the business Donald Trump built. He knew early on that he wanted to attract the wealthiest people in the world, so he developed some of the highest end and most expensive real estate in the world.

You absolutely need to know who your customer is – so you can market to them appropriately.

Most businesses fail because they lack the understanding of exactly who their customer is and what they want. (Yes, it is really that simple)

 

3. Marketing:
Here is the rub …. If the business doesn’t have vision, and doesn’t know who their customer is, they have no idea and even less of a chance of getting the marketing message out to their prospective customers!
Small business cannot afford to advertise on a blimp like Good-Year tires. Brand marketing is way to expensive for the small business owner.

Unfortunately, most business owners are clueless as to who their target customer is and know even less about marketing.
This gives you, the new owner an enormous opportunity to increase revenue and profit almost overnight because you will have the knowledge to “look” into the already developed customer database and identify almost scientifically the main customer type and begin to craft the appropriate marketing message to them.

Marketing is key to any business, and there are hundred of ways to get the word out …. but you need to know the “Who” before you can market the “What”.

I am constantly bombarded by advertising executives who are completely clueless of what they are selling and are only interested in making sales commissions. I hate those guys!

If your target customer is in their 60’s you wouldn’t want to spend advertising dollars on social media marketing as much as you would on direct mail or other print advertising because it wouldn’t reach them. If, on the other hand your customer were the millennial generation, you would be wise to invest your advertising and marketing dollars on social media and other internet forms of marketing because they rarely if ever read print media.

 

4. Front End / Sales:
Welcome to McDonalds, may I take your order? Would you like to super-size that?
Front-end sales are ever so important.

When a customer calls or visits, your front-end sales better be operating the right way.

Nothing will destroy a sale or a customer relationship faster than crappy front end sales.

Think about it yourself –

  • Do you go back to the restaurant where the hostess was rude?
  • Do you frequent the hardware store that ignores you?
  • How do you remember your last visit to the Post Office or DMV?

McDonalds has a script book all front end people must follow.

My dad had a script book on exactly how the phone was to be answered in the family business, and I have always had a written out script on the exact words a person must use when answering a phone.

If you operate a company’s front end like the Post Office or DMV, you’ll be liquidating the business so fast it will make your head spin!

 

5. Back End / Product Delivery:
Product delivery is key here. Once you’ve identified the customer, gotten to word out and received a phone call or visit and taken the order, the next step in the process is delivering the product.

No matter what that product is, it must be delivered timely, professionally, and in good working order. Miss out on this and you can kiss your ass(ets) goodbye.

Have you ever gone to a restaurant, been greeted properly, seated quickly, ordered quickly, and then waited forever for your food and when it finally came it was uncooked or cold?
That’s because the back end / product deliver part of the business sucks.

Obviously no system, or a really bad one at that. Have that happen more than once to you in a restaurant and I can pretty much guarantee you won’t be going back …. That is, if you even give them a second chance.

One of the main reasons franchise restaurants do so well is because they have systems in place for everyone to follow and the food comes out consistently the same no matter where you are in the state, country or world.

Back end systems and product delivery is of enormous importance.

I remember last year I wanted a MAC monitor. The Friday day before Christmas Eve, I ordered it online figuring with the Christmas rush, it might be delivered sometime before the new year. It was delivered the very next day!

Guess what ….. EVERYTHING I order from Apple comes within 48 hours without any extra delivery charges. Needless to say, I switched my entire office over to Apple products because whenever I need something I can get it within 48 hours.

I am perfectly wiling to pay a premium for a superior product with superior service and delivery – especially when I know I’ll be treated with appreciation and respect when I need to speak with customer service.

How about you?

 

For the business buyer, when looking for an opportunity, it is critical for you to look at the 5 most important points of a business.

Identify what is working and what isn’t and then come up with a strategy to correct the wrongs and get the business firing on all 5.

Do that, and you can pretty much guarantee success in any business you get involved in.

 

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Business Life Cycle

7 Stages of the Business Life Cycle

The Business Life Cycle

Every business goes through a number of changes during the course of its lifetime, and business owners should make sure they understand exactly where they are in the cycle so they can prepare for the next stage.

In this brief report, I’m going to do my best to identify each stage of the business lifecycle from a 30,000ft view so business owners can identify where they arena the cycle and take action, and people interested in buying a business will have a better idea of where to look and why.

The 7 Stages of the business Life Cycle

  1.  Start-Up
  2. Growth
  3. Growth Slowdown
  4. Sustaining
  5. Decline
  6. Decay
  7. Failure

All Business’s have a life cycle commonly referred to as the Business Stage.

1. Start Up
The seed stage of your business life cycle is when your business is just a thought or an idea. This is the very conception or birth of a new business.

There are numerous challenges for a business start-up.

  • Money is tight and resources are thin
  • Marketing is new and not established
  • Customers  have not yet been identified
  • Front end customer service systems are not yet established
  • Back end product delivery systems might be a bit hap-hazard

At this stage of the business the owner is way over-worked and under-paid.

You need to really watch your pennies because this is where most start-ups fail, and the number one reason is they run out of money to operate.

2. Growth Stage
Your business is born and the doors are open. You’re selling your products and services to customers.

The phone is ringing, you are having fun and are very excited about the future.

Money is tight because you are building inventory and hiring employees, but you don’t mind because you are doing what you set out to do and are living the dream!

The Future Looks Bright!

3. Growth Slowdown Stage
Your business has made it through the infancy stage.
Revenues and customers are increasing as well as other opportunities.

You’re making money and find yourself somewhat mired in the mud of day to day operations. Dealing with employees and customers.

The fun and exciting part is beginning to wain because you are busy working “in” the business more and more.

You begin to realize this thing you created is growing bigger than you can effectively handle and you realize you can’t do it all.

This is the optimum time for a business owner to sell – This where the business will sell for the most amount of money because it has a solid growth record. It is also at the point that it isn’t fun anymore foe the owner.

If nothing else, it at this stage of the business cycle that the owner should begin planning an exit strategy.

4. Sustaining Stage
Your business has now matured into a thriving company with a place in the market and loyal customers. Sales growth is not explosive but manageable. Business life has become more routine.

This is where you begin to rest on your laurels and begin to back off a bit. You feel you have worked hard to get where you are and deserve a bit of time to coast. Most business owners at this stage begin to get bored and neglect to pay attention to the competition.

This is where most business should begin thinking of selling – right when the begin to get bored with the business. The owner has reached their peter principal  and stop growing.

This is where the business owner should do one of two things –

SELL: This is the big opportunity for your business to cash in on all the effort and years of hard work. before its too late, or

Begin expanding through acquiring the competition – especially the competitors that have entered stage 6 or 7.

5. Decline Stage
This where the business owner has mentally checked out.
They might be bored to tears with the business and lost interest, turned it over to management, or simply lost focus.

Competition might have taken a bite out of the business, or changes in the economy or market conditions. All of which can decrease sales and profits.

Unfortunately for most companies, this is where the owner has to take immediate and drastic action to get the business back on track, but they do the exact opposite.

Instead of investing in the business and taking back the reigns, they make cuts to marketing and advertising, they stop investing in the business and begin cutting back on everything.
Unfortunately for the owner, they are in denial about just about everything pertaining to the business and they tend to look the other way.

They are unknowingly becoming “Don’t-Wanters” in the business.

(This is where I teach my students and clients to begin looking for business to buy so they can get a good deal and turn things around quickly before its too late.)

6. Decay Stage
Denial has set in completely and it shows – the more revenue drops, the more the cutbacks.

This is about the time when most business owners snap out of it and decide to sell the business and get out.

Unfortunately, it is way late in the game for them to get a good price for the business because previous sales show a negative trend and buyers are quite hesitant to buy a declining business.

This is the last chance for the business owner to get honest with themselves and face reality. It is the last chance for them to either get with it and grow revenue, or get out.
If they don’t, Stage 7 of the business life cycle is imminent.

It is also the best time for a sophisticated business buyer to buy a business at a fire-sale price and get the seller to finance the purchase.

This is where I like to look for business’s because they can be easily turned around because they still have a good book of what I call ** “Off-Balance-Sheet Assets”, which in my mind are perhaps the most overlooked and valuable part of any business, and nobody knows about them!

“In all my years as an entrepreneur, I never knew about them until about 5 years ago, and I have only met one other person who knows what they are. This person happens to be a good friend of mine who bought a company out of Bankruptcy for pennies on the dollar because if the “off-ballance-sheet asset list and sold the company 10 years later for tens of millions of dollars!”

7. Failure Stage
Game over – the business owner puts a lock on the door and liquidates inventory is a going to of business sale. All those years of hard work and sacrifice are down the drain. Dreams shattered, employees lives turned upside down, jobs lost, etc.

According to business broker statistics, only 24% of business sell, leaving about 76% of business listed for sale that end up closing their doors with a going out of business sale with shattered dreams.

Understanding where your business fits on the life cycle will help you foresee upcoming challenges and make the best business decisions. Whether your business is a glowing success or a dismal failure depends on your ability to adapt to its changing life cycles.

There you have it ….. the 7 stages of a business lifecycle.

I hope you found it interesting reading and you can use some or all of it in you entrepreneurial quest.

** Want to learn more about this little secret? Good luck finding it because even Google, Wikipedia or investopedia know the true meaning of them never mind the value!

######

Paul Forsberg is a Business Consultant and provides Intermediary Services in Florida.

He also coaches and teaches people how to buy businesses and become entrepreneurs so they can experience the personal freedoms and satisfactions of being in business for themselves. Even if you have zero experience and no idea how, or where to start.

To learn more about buying a business contact me here.

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Business Partner Solutions

Business Partner Solutions and How They Can Help

Very few businesses ever made it to the “Big-Time” without a business partner.Business Partner Solutions

In fact, Business Partner Solutions and arrangements have been around for a very long time.

All of the “Big” name great companies such as Microsoft, HP, Oracle, Bank of America and just about every other nationally known business uses one of many Business Partner Solutions.

If you have ever been in a partnership before, the hair on the back of your neck might be standing on end right now because many partnerships, in fact, MOST partnerships go down in flames.

At the end of this article, I will share with you one of the best business partner solutions I know of, and coincidentally, we use it all of the time because it works so well. Before skipping to the last paragraph for one o the best business partnership solutions on the planet, read this article in its entirety so you can begin to identify with the issues you might face in the future.

Even the best of business partnerships go through rough times. Here are some of the most common problems business partnerships face and ideas for how to deal with them.

One partner feels like he’s carrying the bulk of the workload.
This may have happened because there wasn’t “Spelled-Out” in an agreement identifying job roles, responsibilities and accountability. This needs to be discussed and put down in writing ahead of time.

Expectations are not being met.
Expectations may be quite different for each partner. When expectations aren’t met, it’s a set up for negative feelings. It’s important that each partner knows what to expect from the others.

Partner has lost interest in the business or changed thinking.
Over time, new attractions and options will continue to present themselves to everyone involved. When a partner becomes disenchanted with how the partnership is going, he or she are likely to begin losing interest over time.

Can’t talk to each other.
Communication is so critical to maintaining a viable partnership. When partners get so busy doing their own thing that they can’t find time to sit down with the other(s), they will likely start to feel less engaged. An unresolved issue can also lead to partners being unable to talk about certain things.

It’s a wrong partnership.
Sometimes the partnership has been a bad match from the beginning, but it was maintained for a variety of reasons. When the primary reason for the partnership was based on personal needs more than on business needs, if those needs aren’t fulfilled, the partnership will flounder.

Be proactive.
If you want things to change, it’s up to you to change them. Make the decision you’re going to break the status quo, but you’re going to do it strategically.

Schedule time to talk business.
Once you have thought things through it’s time to schedule a time to talk business. Give your partner plenty of lead time and full disclosure about what the meeting is about. Let him get prepared for the meeting, but don’t let it be put off “MAKE THE TIME!”

Discuss actions you’re each willing to take.
Be prepared with actions you are willing to take. You can request or suggest actions from your partner, but leave the topic open for discussion and agreement.

Write a PLAN for agreed upon changes.
Once you reach an agreement, write it down.  Set Goals and a timeframe to keep things moving in the right direction. Schedule follow-up meetings to iron out details.

If your evaluation tells you there is no hope, it may be time to make that very difficult decision to end the relationship. If you can’t come to agreement or you’re clearly going in different directions, it’s probably time to part ways. Why waste any more time on a losing proposition?

Now for One of The Best and Most Effective Business Partner Solutions on The Planet.

 

The Joint Venture JV
Arrangement!

Here’s why:
A joint venture takes place when two parties come together to take on one project. In a joint venture, both parties are equally invested in the project in terms of money, time, and effort to build on the original concept.

Major corporations use Joint Ventures because it allows them to remain who they are, yet diversify and participate in other business ventures.

A joint venture can ensure the success of smaller businesses that are just starting out with a lot less risk than a partnership arrangement.

If the Joint Venture doesn’t work out, it is easier for both parties to go their separate ways and remain friends.

Personally, I abhor partnerships because every one I have ever been involved in has created some sort of angst and ended up in a disappointment. Therefore, I simply avoid them.

However, almost every Joint Venture I’ve ever been involved in has worked out.

 

 

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Buy a Business with 401k

How You Can Buy A Business With 401k or IRA Funds

For Those of You People Out There Who Have a Few Bucks In Your 401K or IRA, and Want To Buy A Business with 401k funds, this Article Is Exactly What You Have Been Looking For.

Buy A Business with 401k

Bald Helpless and Broker is How You Come Into This World – It’s NOT How You Are Supposed To Live Out Your Later Years.


Over thirty years ago the ERISA Act created IRAs and 401(k) plans to allow investors to control their retirement savings, in contrast to traditional pension plans.

Besides investing in stocks, bonds and mutual funds, tax payers can also use these savings – which are excluded from taxes – toward financing their own business.

Using retirement funds to start up or purchase a business has become more popular since 2001, when the dot-com bubble burst and made stocks less attractive and sent hundreds of downsized executives out looking for something else to do.

Today, more and more taxpayers are cashing in their retirement accounts and placing these funds into a very specific type of trust that provides the beneficiary with the ability to use this money to make an equity contribution in a business in exchange for the trust holding a relatively high percentage of ownership in that business.

These people feel that they can get a greater return on their life savings by investing in their own business and adding in some sweat equity, and end up with a larger nest egg upon retirement.

These trusts are being organized so they can comply with the rules of the Employee Retirement Income Security Act (ERISA) and be classified as a Qualified Trust so they can receive certain benefits under the rules of the Internal Revenue Service.

One of these benefits is that the individual who withdraws his or her retirement money from a recognized tax-exempt retirement plan, like a 401(k), will not be subject to any IRS penalties for early withdrawals.

Another benefit is the opportunity to start a business debt-free by not having to borrowing start up capital and having the burden of note and interest payments.

When startup companies are financed with equity from outside sources it can be the most expensive avenue of financing because the company is worth so little.

Let a Business Broker help you. Would you like to buy a Florida Business? View our 3000+ Florida Business listings at: http://corpbizbroker.com/portfolio/custom-florida-business-search/

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How To Buy a Business With Other Peoples Money

How To Buy a Business With Other People’s Money –

how to buy a business using other people's money [pic]

If You Find A Business You’d Like To Buy, But Are Short of Cash,  Invent It by Using “Other People’s Money.”

The following information is from Entrepreneur.com
• Use the seller’s assets. As soon as you buy the business, you’ll own the assets–so why not use them to get financing now?

Buy through co-op. If you can’t afford the business yourself, buying with a partner or co-op.

Use an Employee Stock Ownership Plan (ESOP). ESOPs offer you a way to get capital immediately by selling stock in the business to employees.

• Lease with an option to buy. Just like in buying a home, some sellers will let you lease a business with an option to buy.

• Assume liabilities or decline receivables. Reduce the sales price by either assuming the business’s liabilities or having the seller keep the receivables for a specific time.

There is no limit to the amount of strategies you can come up with on how to buy a business with other people’s money.

This link to the article titled “How To Buy a Business” in Entrepreneur Magazine touches on a few of them – you can read the article in its entirety by clicking the link: http://www.entrepreneur.com/article/79638

If you’d like to explore options and discuss strategies on other ways you can learn how to buy businesses with other people’s money, feel free to contact me via email.

How about you …. please share an idea of your own in the comments section.

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Flipping Businesses Instead of Houses

Flipping Businesses Instead of Houses

Flipping Businesses is More Profitable Than Flipping Houses
…. Here’s Why …..Flipping Businesses Instead of Houses

Fixing or flipping a small business is much easier than
flipping houses for a variety of reasons, and in this brief article I am going to outline and touch on a few of them.

Below is a list of 5 advantages in dealing with businesses instead of houses:

  1. Very little competition: You are not competing with every Tom, Dick and Harry that owns a hammer and a paint brush that stays up late at night watching HGTV shows, buys a “Get Rich Quick” Real Estate course on the internet, or attends a seminar at a hotel somewhere and plunks down a bunch of money for a course and “how to” coaching.
  2. Seller Financing: Statistically, 84% of owners will carry back some or all of the financing, so locating money for the deal is right there at your fingertips.
  3. Immediate Cash Flow: If you pick the right deal you get cash flow the very next day.
  4. Fast Turn Around: Most businesses that are currently operating at a loss can be made profitable within in 60 to 90 days
  5. You Control The Outcome: In a business, you control about 85% of what happens. Your results are not dictated by government housing regulations or bank loan rates.

A business is totally under Your control. You pull the strings and You control it.

You also get cash flow, tax write-offs, incentives, and a whole host of other immediate benefits.

You can’t say that about real estate market. Not in Land, Not in Houses, and not in Commercial Properties either.

No other investment in the world gives you so much power and control over the outcome.

In the business of business flipping you are the master of your destiny.

The opportunities are everywhere. The biggest problem when it comes to investing in businesses is this:
How-To Information is hard to come by. It is a closely guarded secret because those doing it are making so much money, they don’t want to train the competition.

How To Information about real estate investing is easy to come by because many of the people selling information don’t have a clue how to make money in the real estate business and need to sell how to information to pay the bills.

Every year, according to the U.S. Census Bureau:

  • There are approximately 2,000,000 businesses in America

  • Every year, 470,000 of them close their doors for one reason or another.

About 60% of the businesses out there are not worth looking at, but the remaining 40% equals an enormous amount of businesses available for purchase with little or no competition!

Imagine how it would feel playing a sport and you are the only one on the field. The ball comes into play and you are the only one on the field to pick it up! That is how it is for those of us dealing in businesses.

AND…Get This:
According to several studies, roughly 1/3 of all US companies are owned by people over 55 years old, and 76% of them are expected to sell and retire, or close within the next 10 – 15 years.
When you get right down to is, the numbers are staggering and opportunities are abundant!

In a recent study performed by BizBuySell, the largest business buying and selling website in the world:

  • 97% of business owners 65 and over plan on selling within the next 5 years.

When asked for an expected timeline,

    • 57% of them plan on selling within 6 months
    • 81% of them plan on selling within the next 12 months.

That means an enormous amount of businesses are about to come on the market.
One of the most common mistakes a business owner does when they begin thinking of getting out is they lose interest in the business and management begins to slip. When this happens revenue begins to decrease, and the business begins in a downward spiral.

This creates an enormous opportunity for people like you and me because, when a company is established, has a customer base and is managed poorly, it can be turned around rapidly with minimal work.

Business opportunities like this are all over the place. Owners working in their business who lose interest and clueless to what they are doing wrong, or could care less and just want out.
All you need to do is step in there, make a few changes, increase revenue and profits, put a bunch of money in your pocket, and then decide of you want to keep and take it to the next level, or sell it for a big payday and go get another one.

Have you ever watched any of the cooking shows such as Robert Irvine’sRestaurant Impossible,” or Chef Ramsey’s “Hells Kitchen?” There are a couple others as well – “Hotel Impossible,” “Bar Rescue”, and Marcus Lemonis’s The Profit.”

They all share the same theme – the business owner is working their butt off. They all made money in the beginning, and over a period of time, let things slide a little at a time, and now cannot recognize or identify the changes that need to be made.

All business is the same. They all operate the same way – the only difference is the product you deliver. No matter what business it is. The only difference between a manufacturing business in Detroit, a restaurant in Florida, and a Tug Boat operation in the Gulf of Mexico is the product they produce and deliver. They all need customers, they all need marketing, they all need competent management, they all need systems, and they all need customer follow up.

Which leads me to this: You don’t need to be a Robert Irvine a Chef Ramsey, or a Marcus Lemonis to turn a business around.

All you need is a methodical process to identify the obvious and a checklist to Identify Deficiencies, Uncover Hidden Assets, Capitalize on Opportunities, and then immediately take action.

There are 5 very specific areas of any business, and like spokes on a wheel a business needs all of them to support operations.

Spokes on a Wheel

The picture here gives you a visual of what I mean by spokes on a wheel:

it has been my experience that every business I come across that is suffering and is ripe for a Business-Flip is missing one or more “spokes” of the wheel.

All you need to do is identify the missing part, fix it, and the rest takes care of itself.

Will you get rich?

I will not promise you that you’ll make millions over night or something foolish like that.
But I do believe (and have proven in my own experiences) that this is an amazing opportunity for any entrepreneur, business owner, professional or sales person to generate real wealth and set yourself up for your lifetime.

Yes, you can make millions if that is where you want to go, but will not happen overnight.
However, you will be in control of your destiny, not someone else, and I must tell you this …..
Not only is it patriotic, but it there is a very rewarding feeling knowing you are helping your local economy and the country by helping people save their jobs and supporting their families by saving their company.

Buying and flipping businesses delivers a much better return on your investment, can provide immediate cash flow and return, gives you more control over circumstances and outcomes, are easier to finance, much easier to come by, and there is no competition!

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About The Author: Paul is a Business Consultant and provides Intermediary services in Florida.
He is in and out of businesses all of the time. Consulting, arranging succession plans, mergers & acquisitions, business valuations, and providing intermediary services for those who want to buy or sell.

If you’ve read this report this far and are reading this paragraph, then you are obviously very interested to learn more. I congratulate you for that.

You have also unknowingly pre-qualified yourself as a person I would be wiling to work with.

Which leads me to this ……. If you would like to learn how to Buy-Fix-and-Flip” Businesses, shoot me an email at Paul@BizBuyerBroker.com. We can set up a brief 10-12 minute phone call and see if there is positive energy for us to begin working together.

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Business For Sale Classified Ads a Humorous Take on The True Meaning

Business For Sale Classified Ads and Their True Meaning. A Humorous Take.

 

Business For Sale Classified Ads. Advertising Puffery that can make a buyers dream turn into a nightmare.
pufferyAlmost every Sunday, I read the classified ads in a number of papers instead of the comics. I guess you could call it my twisted way of getting a chuckle – but it never ceases to amaze amuse me when it comes to classified ads.

By far, the most entertaining are business opportunities and businesses for sale, and over time, I have copied down some of the most creative and then added my translation to them.

A Comical Translation to “Business For Sale Classified Ads” and “Business Opportunity” Ads

If you’re in the market to buy a business, you might enjoy the translations I put together while reading the advertising.

WARNING ….. You should not be drinking any liquids while reading this because you run the risk of spitting the liquid out of your mouth and all over whatever you are reading it on. Laptop keyboards are extremely susceptible to liquid.

Besides a few chuckles, the translations might very well save your ass-ets too.

HOW MANY WAYS ARE THERE POSSIBLE TO CAMOUFLAGE A LOUSY BUSINESS?

Below are the headlines – please leave a comment on the bottom with feedback – I would appreciate hearing from you.

 

“Multi-Billion Dollar Industry” translates into field saturated with competitors.

“Must Sell” is another way of saying: Looking for a greater fool.

“Call To See If You Qualify.” If you call, you’re qualified.

“Earn Huge Income Immediately.” Believe in the tooth fairy.

“Serious Buyers Only” Means don’t call if you expect answers to tough questions.

“Excellent History” suggests trouble around the corner.

“Well Maintained” or “Great Lifestyle” is another way of saying unprofitable.

“Make Your Own Hours” is work like a slave or starve.

“Excellent Opportunity” is a nice way to say assume our mess.

“Dream business” is a nightmare.

“Easy” means you and everyone else the promoter can sell will compete with each other.

“Illness Forces Sale” could be we’re sick of this lousy business— that’s why we don’t hire a manager to run it and send us the profits.

“Owner Moving, Anxious To Sell” means about to go out of business.

“Call For Details” equals call for sales pitch.

“Divorce Forces Sale” The business is so time consuming your spouse will want to divorce you too in a few months after buying this turkey.

“Absentee Owner” raises the question: If the owner doesn’t need to be there to make money, why is he selling?

“Premium locations!” Franchisors are selling concepts that they refuse to admit are not good enough for them to invest their own money.

“Priced To Sell” usually means not worth owning.

“Owner Makes $150K, Employs Wife and Kids” is better than “work is our only activity, business can’t afford to employ others.”

“Anxious To Sell” hints that it won’t be long and you will be anxious to sell too.

“Tavern: Fun Lifestyle” by an owner who is tired of being robbed, smelling beer breath and coping with thieving bartenders.

“As-Is Condition” invites the fool born today.

“Turnkey Business” might convey we can’t wait to lock the door behind

“Mature Company” has seen its best days.

“Built-in Clientele” should say we’ve got all the customers there are to get.

“Huge Value” = worthless.

“Will Pay For Itself In One Season” should come with its own warning label: “If not, you’ll lose money for the next nine months. Make sure you have lots of savings so you can get a second chance next year.”

“Established Business With Living Quarters” so you can work 24 hours a day, seven days a week.

“Distributors Wanted” suggests the territory too risky for us to staff.

“Low Rent” surely means terrible location.

“Growing Population” sounds better than we’re still not making any money.

“Liquidating All Assets” at exorbitant prices the pros won’t pay.

“Major Shopping Center Location” becomes landlord will lease to your competitors.

“Free Long Term Support” promises that the seller will treat you like @$#&!, so you don’t call again.

“Owner Financing” means the deal is too dumb for a bank or other source of capital to finance.

“Low Down Payment” almost always means the owner is thinking of shutting down but prefers to attract an unsuspecting buyer who will make payments until he too goes broke.

“Free video.” This is as good as it gets. Rent a movie, instead.

“Real Estate Included” means you don’t collect rent when your business can’t pay it.

“Fun Business.” Ask: If it’s so much fun, why are you selling? Maybe I’d prefer that kind of fun, too.

“50% profit” sounds good until you remember the best firms (i.e., Microsoft) don’t earn anywhere near this.

“Rated #1.” Thanks, mom.

“One of a kind.” You can say that, again.

“Relieve Stress.” Whose?

“Tired of Corporate Politics?” It’s your turn to try to manage our band of incompetent, demanding employees.

“No Selling.” Turn iron into gold.

“Tired of The 9-5 Grind?” Imagine working until dawn.

“Principals Only.” We don’t want to talk to your knowledgeable professional advisors, only whoever can write us a check.

“Realistic Top Dollar Income Potential.” Putting “realistic” and “potential” into the same sentence is like putting a cat and dog together in a dark closet.

“Short Hours” means there is not much demand for the company’s product.

“Millionaire’s Secret!” Run ads, sell pamphlet containing secret: Run ads, sell pamphlet…

“You Won’t Believe This Until You See It,” means you will not believe this when you see it.

“Riches From MLM.” How to lose all your friends and family and cause your significant other to sleep on the couch.

“Surround Yourself With Beautiful Women, Earn Thousands.” Okay, you got me there …… I’m curious.

Whew!

In closing, here is the best ad headline I have ever seen and have used myself. It out-performs all others by an average of a 10 to 1 margin.

“Profitable – Fair Price, Will Train New Owner”

 

What about you? Do you have any ad headline translations?

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Published with permission from © 1999-2006 Ted J. Leverette, The Original Business Buyer Advocate ®, partneroncall.com.

 

 

 

 

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Only Morons Start a Business With a Loan

“Only Morons Start a Business with a Loan”

“If you Start a Business With a Loan, You’re a Moron.” says Mark Cuban.

There are too many uncertainties when starting a business from scratch and the bank or your lenders don’t care about your business.

Most small business don’t fail because of lack of capital, they fail because of lack of effort, or the owner fails to work smart.

If you’re starting a business from scratch, you better have intimate knowledge of your industry sector because the competition is not going to sit there and let you come in and compete.

This is one of the main reason you are much better off buying an existing business with existing customers and sales.

Buy it at a fair and reasonable price and make it better.

Here is a Video of Billionaire Mark Cuban in his own words:

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How To Get Rich Flipping Businesses

How To Get Rich Flipping Businesses

I wrote an article and posted it on TheSelfEmployed.com website a while back and have been getting slammed with phone inquiries and email requests for more information. Below is a copy/paste of the article with a few grammatical corrections.

Well worth the read ….. to see the original article and go to The Self Employed website, click the link:  http://theselfemployed.com/start_ups/get-rich-flipping-businesses/

how to get rich flipping businesses photoBy: Paul Forsberg (Originally Published 10.27.2014 on http://theselfemployed.com/start_ups/get-rich-flipping-businesses/)

Flipping Businesses is much easier than real estate for a variety of reasons, and in this brief article I am going to outline and touch on a few of them.

Below is a list of 5 advantages in dealing with businesses instead of real estate:

  1.  Very little competition:You are not competing with every Tom, Dick and Harry who watches Flip This House, or a late night TV Infomercial guaranteeing instant overnight success in real estate.
  2.  Seller Financing: Statistically, 84% of owners will carry back some or all of the financing, so locating money for the deal is right there at your fingertips.
  3.  Immediate Cash Flow:If you pick the right deal you get cash flow the very next day.
  4.  Fast Turn Around: Most businesses that are currently operating at a loss can be made profitable within in 60 to 90 days
  5.  You Control The Outcome:In a business, you control about 85% of what happens. Your results are not dictated by government housing regulations or bank loan rates.

A business is totally under Your control. You pull the strings and You control it.
You also get cash flow, tax write-offs, incentives, and a whole host of other immediate benefits.

You can’t say that about real estate market. Not in Land, Not in Houses, and not in Commercial Real Estate either.

No other investment in the world gives you so much power and control over the outcome.
In the business of business flipping you are the master of your destiny. The opportunities are everywhere.

The biggest problem when it comes to investing in businesses is this:

How-To Information about Flipping Businesses is Hard To Come By. It is a closely guarded secret because those doing it are making so much money, they don’t want to train the competition. How To Information about real estate investing is easy to come by because many of the people selling information don’t have a clue how to make money in the real estate business and need to sell how to information to pay the bills.

According to the U.S. Census Bureau – Every year,

  •  There are approximately 2,000,000 businesses in America
  • Every year, 470,000 of them close their doors for one reason or another.

About 60% of the businesses out there are not worth looking at, but the remaining 40% equals an enormous amount of businesses available for purchase with little or no competition!

AND…Get This:

According to several studies, roughly 1/3 of all US companies are owned by people over 55 years old, and 76% of them are expected to sell and retire, or close within the next 10 – 15 years. When you get right down to is, the numbers are staggering and opportunities are abundant. In a recent study performed by the largest business for sale websites in the world:

  • 97% of business owners 65 and over plan on selling within the next 5 years. When asked for an expected timeline,
  • 57% of them plan on selling within 6 months
  • 81% of them plan on selling within the next 12 months.

That means an enormous amount of businesses are about to come on the market.

One of the most common mistakes a business owner does when they begin thinking of getting out is they lose interest in the business and management begins to slip. When this happens revenue begins to decrease, and the business begins in a downward spiral.

This creates an enormous opportunity for people like you and me because, when a company is established, has a customer base and is managed poorly, it can be turned around rapidly with minimal work. Business opportunities like this are all over the place. Owners working in their business who lose interest and just want out.

All you need to do is step in there, make a few changes, and increase revenue and profits. Then you get to decide if you want to keep it for cash flow, or sell it for a big payday and go get another one.

All business is the same. They all operate the same way – the only difference is the product you deliver. No matter what business it is. The only difference between a manufacturing business in Detroit, a restaurant in Florida, and a Tug Boat operation in the Gulf of Mexico is the product they produce and deliver. They all need customers, they all need marketing, they all need competent management, they all need systems, and they all need customer follow up.

All you need is a methodical process to identify the obvious and a checklist to Identify Deficiencies, Uncover Hidden Assets, Capitalize on Opportunities, and then immediately take action.

Will Flipping Businesses Make You Rich?

I will not promise you that you’ll make millions over night or something foolish like that.
But I do know that buying and flipping businesses delivers a much better return on your investment, can provide immediate cash flow and return, gives you more control over circumstances and outcomes, are easier to finance, much easier to come by, and there is no competition!

###

Paul Forsberg is a Business Consultant and provides Intermediary Services in Florida. 
He is in and out of businesses all of the time. Buying, Selling, Consulting, arranging succession plans, mergers & acquisitions, business valuations, and providing intermediary services for those who want to buy a business.

If you like this article and would like to learn more about buying and flipping businesses, >>Contact Him Here<<
or send him an email at paul@bizbuyerbroker.com  or call his office at 321-255-6022.

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