Buy a Small Business Smallbiz SME

Manage a Small Business SME Management

I tackle the question, "should my business own the building its located in?"  the answer is surprising to many small business owners and wantrepreneurs.

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[OLDIE] Should Businesses Own Real Estate? Or Is It Better To Lease?

I tell a story of how a young woman is growing her business to death by letting receivables grow faster than payables.  Cautionary tale for any small business owner.

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[OLDIE] Growing A Business To DEATH! Successfully Managing Cash Flow In A Small Business

I discuss the difference between loans and leases when getting equipment in a small business.  The pros and cons of each and why I prefer leases.  Not a discussion about taxes.

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Why would a business want to lease a piece of equipment instead of borrowing money to buy it?
For me the answer is quite simple, cash (capital) is scarce.
When you lease instead of borrowing, you can usually get the equipment with a far lower or no down payment.
Why? In a leasing arrangement the lease company retains title to the goods and can more easily repossess it if you default on your payments.  Because they’re more ‘secure’ they are usually willing to extend more credit.
A bank may have to go through a more difficult process to seize its collateral in a similar situation.
Leasing companies may also have better expertise in the specific equipment that they finance. This means they are better able to manage losses.  Again, another reason to extend more credit than a lender might.
Another great reason why leasing makes sense is because it forces a business to recognize the cost of using the equipment as they are ‘using it up’ to generate cash flow.
I’ve seen too many situations where people have bought equipment outright with no debt.  Or, they made a big down payment and amortized the loan over a period greater than the useful life of the equipment.
They end up using and retiring the equipment before they have finished paying for it!
In the case where there is no debt, companies use their better cash flow position to undercut competitors and trick themselves into believing they are making a lot of money.   
What they’re actually doing is converting their invested capital in the equipment into cash without setting aside the money to replace the equipment!  When it wears out they end up in trouble!
I’ve seen this particularly in trucking businesses where people with no payment make lots of profit and live a great lifestyle but end up in trouble when that truck finally needs to be replaced.
Leasing forces you to recognize the true capital cost of the equipment as you’re using it to make money.
Sometimes you can even finance soft costs such as installation with leasing.
Sometimes leases are only in the company name and don’t require a personal guarantee.  This doesn’t happen with loans from the bank.
With lots of advantages, leases sometimes do cost more than traditional loans but sometimes the terms are more important than the price.  
I’ve never heard of a lease getting ‘called,’ but it happens all the time with business loans and lines of credit.


[OLDIE] Leases Vs. Loans When Getting Equipment In A Business

#BuyingABusiness #ProprietarySearch #Entrepreneurship #SmallBusiness #BusinessAcquisition

***New Video Alert!

Forbes magazine shares a secret that increases your odds of getting an interview by 115%.

AND- it applies directly to those looking to buy a business as well.

Check it out in this week’s new video: https://youtu.be/5Nt8QvY1hX4 

Cheers

See you over on YouTube

David C Barnett

#smallbusiness #mergersandacquisitions #M&A 

Get a job in a business you want to buy: https://youtu.be/oTObbWYtkl0 

*
CHAPTERS
00:00 Introduction
01:20 Why Buying a Business is Like Job Hunting  
03:30 The Forbes Article | Tailored Resumes & ATS Filters  
06:10 Parallels Between Job Search & Proprietary Business Search  
08:00 First Impressions & The Buyer Resume  
11:00 Gatekeepers, Brokers & Getting Ghosted  
13:00 Clarity and Focus in Your Business Search  
16:30 Why “Spray and Pray” Doesn’t Work  
20:00 Standing Out in a Crowded Buyer’s Market  
22:30 Defining Your Ideal Business Profile  
25:00 Building Credibility with Sellers & Lenders  
28:30 Avoiding Common Pitfalls in Outreach  
31:00 Case Study | Hiring My Own Analyst  
34:00 Tailored Outreach vs. Mass Emails  
37:00 Lessons from John Bly & CPA Firm Acquisitions  
40:00 Practical Steps for Proprietary Search Success  
44:00 Building Sales & Business Experience Before Buying  
47:00 How to Customize Your Buyer Pitch to Sellers  
50:00 Why You Must Impress Business Owners First  
53:00 Wrapping Up | Job Search Lessons for Business Buyers  
56:00 Resources for Buyers & Sellers | BusinessBuyerAdvantage.com 

#BuyingABusiness #Entrepreneurship #BusinessAcquisition #SmallBusiness #ProprietarySearch #BusinessBuyerAdvantage #EntrepreneurshipTips #DealMaking #BusinessGrowth #ExitStrategy #businessstrategy 
**
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- David's Blog where you can find hundreds of free videos and articles, https://www.DavidCBarnett.com

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- Learn how to buy a successful and profitable business in a risk-controlled way https://www.BusinessBuyerAdvantage.com

- Get help selling your business, https://www.HowToSellMyOwnBusiness.com

- Get better organized in your business, https://www.EasySmallBizSystems.com

- Learn to make better cash flow forecasts and write incredibly effective business plans from scratch!, https://www.BizPlanSchool.com

- Learn to build an equity asset with insurance! visit https://www.NewBankingSolution.com

-Did you sign up for an expensive Merchant Cash Advance for your business and now struggle to make the payments? Find out how you can negotiate your way out at https://www.EndMyMCA.com

What If Your Resume Could Help You Buy a Business?

Robert asks: How do you form and manage a mastermind group?

Watch the video: https://youtu.be/Zj0Yn5YGD0A

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★How to do Small Local Investing Deals from A-Z. All the tools you need to make loans and leases to people and small businesses in your community: www.LocalInvestingCourse.com
★Learn to buy a business with my full-day course done at your leisure!: www.BusinessBuyerAdvantage.com
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The Invest Local Book blog is all about small business, local investing, home economics, franchises, small business systems and borrowing money for your business. It's full of great content and I look forward to seeing your feedback.

[OLDIE]  How To Form And Manage A Mastermind Group

Watch the video here: https://youtu.be/1EjKjSAd1F8
Learn to buy a business: http://www.BusinessBuyerAdvantage.com
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Join my email list/ see my blog: http://www.InvestLocalBook.com

Related article:
Should my Small Business have 100 or 1,000,000 Shares? How do Shares work?
Over the last two weeks I’ve had two different clients who were somewhat confused about how shares work in a corporation.  Both were small business owners.
One owner was trying to pass the family business on to their children.  They asked me how to ‘transfer their shares’ from the established corporation to the new corporations of their children. Hmmmm…
The other client was a pair of entrepreneurs who wanted to bring on a third partner and have his investment go into the company.  They weren’t sure how to accomplish this.  
I taught them how they could achieve their goals by splitting their existing shares and have the corporation issue new shares to the new partner.
Not sure what I’m talking about?  Learn how to use a corporation’s shares to make your deals in this video: https://youtu.be/1EjKjSAd1F8 
Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.
If you would like to hear from me weekly before anyone else, you can sign yourself up at www.DavidCBarnett.com  
I’m coming to Charlottetown, Prince Edward Island in January 2017.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca 
Thanks and I’ll see you next time.

Buy a Business

Should Your Business Have 100 Or 1000000 Shares- How To Buy A Small Business

Learn to buy a business: http://www.BusinessBuyerAdvantage.com
Learn more: http://www.DavidCBarnett.com

Related Article:
------------------------

Hey there,

This week I tackle a question from Ben who is concerned that he has to reveal too much information to business brokers before learning enough details about the business they have for sale.

What is a buyer to do?  Obviously, if the seller has all the details of your financial life then they can use this to negotiate a better deal for themselves.

What have I seen others do to protect themselves and what can happen if you reveal too much.

Watch, learn and hear the story of the buyer who revealed too much.

Watch here: https://youtu.be/lIX3sDlIsKE

Last Saturday in Las Vegas, I spoke about business promissory notes from the point of view of an investor who may wish to buy one.

I made a bootleg recording and for the month of May only it is included as a special bonus in my online exit-planning course.  

Enroll here: www.HowToSellMyOwnBusiness.com

Learn how to buy a business: Sign up here: www.BusinessBuyerAdvantage.com 

---Stop missing my videos and other news. Get on my mailing list and choose what interests you. http://eepurl.com/brqqjb

Buy a Biz

Loose Lips Sink Bank Accounts- Buyer Disclosures- How To Buy A Business

Learn to buy a business: http://www.BusinessBuyerAdvantage.com
Learn to sell a business: http://www.HowToSellMyOwnBusiness.com
Learn more at http://www.DavidCBarnett.com

Related Article:

Hey there,

This week I answer a question from a viewer about ways to pay for a business purchase based on the future performance of the business.

Sometimes called an earnout or a royalty.  These deals are for risky businesses and usually are a strategy for managing businesses with a lot of personal goodwill which may not transfer to a buyer.

How much is a business worth if the customers leave?  Let me show you what others have done to spread that risk back to the sellers.

If you’re a seller of this type of business, contact me to work on ways you can avoid having to accept an earnout offer.
Watch here: https://youtu.be/Itlab5o7AZk 

Two weeks ago in Las Vegas, I spoke about business promissory notes from the point of view of an investor who may wish to buy one.

I made a bootleg recording and for the month of May only it is included as a special bonus in my online exit-planning course.  
Enroll here: www.HowToSellMyOwnBusiness.com

Learn how to buy a business: Sign up here: www.BusinessBuyerAdvantage.com 

---Stop missing my videos and other news. Get on my mailing list and choose what interests you. http://eepurl.com/brqqjb 

May 28th I’m in Toronto- Get your tickets today for a live or virtual attendance- Eventbrite.com

Paying For Businesses With Future Performance- How To Buy A Small Business

Learn to buy a business: www.BusinessBuyerAdvantage.com
Get on my email list: www.DavidCBarnett.com
Adventure Launch Deal: https://gum.co/BizBuyerAdventure/Launchdeal

Hi there,
Would you like to own a business where the seller only visits occasionally or checks in via phone from his Florida condo?
I bet we all would.
Do you know what you don’t see though?  
That owner has something you may not and without a careful inspection, your dream of being an absent owner can become a nightmare especially if something happens to that manager.
I’ve had several people reach out to me about ‘absentee owner opportunities’ and I wanted to share a few thoughts about how some businesses are able to operate with managers.
Watch and see: https://youtu.be/GszdyDQulEI 
Learn how to buy a business: Sign up here: www.BusinessBuyerAdvantage.com 
The new Business Buyer Adventure group coaching program is up and running. Take advantage of this special founder’s deal in the first two weeks of enrollment: https://gum.co/BizBuyerAdventure/Launchdeal 
---Stop missing my videos and other news. Get on my mailing list and choose what interests you. http://eepurl.com/brqqjb

Buy Biz Group Deal

Absentee Owner Dream Or Illusion How To Buy A Small Business

Sorry about the sound, busy fingers shut off the filters...again!
Learn business systems here: http://www.EasySmallBizSystems.com
Learn to buy a biz here: http://www.BusinessBuyerAdvantage.com 

Hi there,
I received this question via email…
Running your own business brings added stresses, frustrations and anxieties.  what are the pluses you get from handling those negatives- John

Well, John, if your idea of running a business is all about bad stuff, then I don’t think you’re doing it right.
This week I recount all the reasons why I love to be in business for myself and talk about the most common thing I see that brings people anxiety and stress.
Watch and see: 
Learn how to buy a business: Sign up here: www.BusinessBuyerAdvantage.com 
The new Business Buyer Adventure group coaching program is up and running. Take advantage of this special founder’s deal in the first two weeks of enrollment: https://gum.co/BizBuyerAdventure/Launchdeal 
---Stop missing my videos and other news. Get on my mailing list and choose what interests you. http://eepurl.com/brqqjb

Does Business Cause Anxiety Stress And Frustration - How To Buy A Small Business

Watch the video here:https://youtu.be/POqWMh27QzcLearn to buy a business at http://www.BusinessBuyerAdvantage.com
Learn more at http://www.DavidCBarnett.com 

Related Article:
What the heck is mezzanine financing and how can you use it to buy a business?
This week Joe asked me about mezzanine financing.
I’ll take you through a sample balance sheet, bore you with details about debt to equity ratios then excite you with the fun details of how these deals work.
Mezzanine financing is the quirky joke-telling offspring of debt and equity that people like to have around because he’s often confused for equity.  
The problem is he can be quite the joker and often has a nasty temper.
Confused yet?  That’s the point.  Let me show you how this financial sleight of hand is used to help make other lenders make loans.
Watch and see: https://youtu.be/POqWMh27Qzc 
Learn how to buy a business: Sign up here: www.BusinessBuyerAdvantage.com 
The new Business Buyer Adventure group coaching program is up and running. Take advantage of the special founder’s deal.  There are only 4 discounts left!!: https://gum.co/BizBuyerAdventure/Launchdeal 
---Stop missing my videos and other news. Get on my mailing list and choose what interests you. http://eepurl.com/brqqjb

Mezzanine Financing -How to Buy a Business

I discuss buying, selling, financing and managing small and medium sized businesses either alone or with guests.  
I've started, bought, sold and closed businesses. 
Author of three best-selling business books; 'Invest Local: a guide to superior investment returns in your own community,' 'Franchise Warnings: What you really need to know before you buy' and 'How To Sell My Own Business: A guide to selling your own business without paying a broker's commission.' all available as well as 5 other books on Amazon or from www.DavidCBarnett.com

What If Your Resume Could Help You Buy a Business?

DBarnettMoncton