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See prior blog entry for parts I – V VI.  Once the listing is taken, the broker’s job is to market the business for sale.  Typically the specific business name and location is kept confidential.  Marketing  has some routine features such as the Internet and my personal network.   Other marketing components can be unique to each business, i.e. letters, phone calls, emails. VII.  Purchase prospects identified are screened for capability and true Interest.    [...]

While there are certain methodology themes with brokers, each will likely have their own nuances.  This is my typical means: When a business owner says they are considering selling, my preference is to meet with them face to face.  Though sometimes this same conversation can be over the phone or email.  At this first encounter, the owner, hopefully, will give an overview of their business.  I probe a bit to learn more and [...]

I have just watched this video about networking as a means of doing business.  For me it is a wonderful reminder of key networking traits for success. Video by Dr. Ivan Misner The key traits he mentions are these: 1.  Follow up on referrals. 2.  Have a positive attitude 3.  Enthusiasm, motivation 4.  Trustworthy 5.  Good listening skills 6.  Network always 7.  Thanks people 8.  Enjoys helping others 9.  Sincerity 10.  Work their [...]

Do you like cash flow?  Me too.  In fact, one of the critical evaluations of a business for sale is what the historic cash flow to the owner is. Preparing a cash flow to anticipate the future is important too.  (Do you remember my mantra?  "I am not an accountant.")  So, for this commentary, I will merely encourage your practicing cash flow as a method of business management.  Wikipedia defines cash flow HERE. [...]

You are getting ready to buy (you hope) a business.   With or without a broker (though you should have one) you want to make an offer.  What document should you have?  Either of the subject documents will suffice as a first step:  However, the Letter of Intent (LT) kicks the can about two feet and the Buy-Sell or Asset Purchase Agreement (APA) gets to within 20 yards of the goal post.  Why? The [...]

Your position on the headline question could result in a different answer.  Every educator I know would say, "there is never a wrong question."  What likely they mean is there is never a wrong question on topic, at this moment. In buying and selling a business, there can be wrong questions or wrong timing of questions and perspective is everything.  Usually the person asking the questions, the majority of the questions is the [...]

Two days ago I blogged about the TOMA research and advertising presentation.  One new-to-me point in the presentation was the reasonableness of SALE, price reductions and the like. If a company is selling something that has a long ownership, renewal cycle they are not served as well by having sales as is the shorter-cycle company.  The person building houses, something most people keep for many years, should be building awareness through name recognition, [...]

Yesterday I attended a presentation put on by TOMA and the New Mexican, our local newspaper.  TOMA was the presenter and must get credit for this summary, allowing for my commentary and presuming I got the salient points right.  As a business broker, it seems very good information for the business owner who some day wants to sell their business and make the most money doing so. TOMA does surveys in various cities [...]

Perhaps you know the terror:  I have so much to do! Yesterday I met with a lovely lady considering starting a business.  It could be buying a business or running a business.  It is all the same.  There is a ton to do. Break it into small pieces.  Take it one step at a time. In the case of (lets call her) Sue she has been considering this action for quite some time, [...]

When was the last time you were in a phone booth?  It has been awhile for me as well but there is business wisdom worth telecommunication in this story: Recently an article explained that if you are in a phone booth and money is being blown around, some singles and some in clumps, it is best to try and catch the singles, very deliberately, than go for the big bunches.  The latter is [...]