exit strategy Archives - Page 2 of 6 - Sell A Business Florida

8 Biggest Reasons I want to Sell My Business or Buy a Business

By Scott | June 13, 2012 - 8:41 am |February 24, 2014 business broker florida, buy a business, entrepreneur, Florida business broker, Florida Businesses For Sale, Jacksonville Florida businesses for sale, Main, sell a business florida, selling my business, small business owner

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8 Biggest Reasons I really want to Own My Own Business Can look very much like the 8 Biggest Reasons I really want to Sell My Business.

Reasons to buy sell a business

Why does someone buy a business, and what does drive a business owner to the decision to sell their either long term ownership of a business or short term ownership of a business? As Former and current business Owner I have owned a couple businesses, I have started businesses, I have bought multiple businesses, and I did sell my business. As a Florida Business broker I have both represented Buyers and Sellers of businesses.

So much goes into the decision of buying a business or into the thought process of selling a business, but often it can be similar criteria that just sits on the opposite side of the ledger….

Owning your own business can be one of the most satisfying processes in ones life. Why does someone want to own a business. Very often it becomes the same reasons one wants to sell his or her own business.

Reasons For Owning Your Own Business: “I want to Buy a Business because” –

1)MONEY– want to make lots

2)PASSION– I love making widgets- I love helping people with my products/ services
3)ACCOMPLISHMENT– It just feels good and a feeling of success
4)OBLIGATION– It is my best means to support myself and or family.
5)EXCITEMENT– I love working 24/7
6)CONTROL– I control my own destiny. I am the boss, I wont have to report to anybody. I can do whatever I want!
7)OPPORTUNITY– I’m young-limitless full of health, energy, optimism
8) TIMING – “I’m Ready” to buy own my own business

Reasons For Selling A Business: “I want to sell my Business because “-

1)MONEY-Not making enough, money is less important. Or Ive done well and ready to cash in on my efforts.
2)PASSION– I used to love making widgets, now I’d rather collect shells, golf, work for someone else or do anything but make another widget. of ” If I have to deal with another customer I’ ll scream”.
3)ACCOMPLISHMENT– The feeling of accomplishment is gone and or less significant, or Ive accomplished all Ive wanted in this business.
4)OBLIGATION– My family is no longer around, Im not going to pass business on to my kids
5)EXCITEMENT– after working 24/7 I am now burned out and I get excited about the idea of not having to deal with it anymore
6)CONTROL-Insurance Companies,employees,IRS,State, Federal policy control my destiny, and run my business more than I do!
7)OPPORTUNITY– I feel old, have health issues, tired- lack the energy this company needs- exceeded my limit
8) TIMING– “I’m Ready” to sell my business and move on…

While the list could go on and on, Contrary to common belief—– Its not always just about the money

When do I think it is a good time to buy a business? When YOU are “ready”

When is a good time to sell my business – When YOU are “ready”

Fear-Unspoken Emotion when Buying or Selling a Business

By Scott | April 26, 2012 - 7:15 am |July 13, 2013 business broker florida, buy a business, Florida business broker, Florida Businesses For Sale, Jacksonville Florida businesses for sale, Main, sell a business florida

Should You Ignore Emotions When Buying Or Selling A Business?

The money is a very important component that cant be minimized, but the emotional side should not be minimized as well. What emotions did I experience as I personally was the buyer and seller of a business?

Concern,
Trepidation
Joy
Satisfaction
Worry
Relief
Uncertainty
Fear

Is there a book written that states these are the emotions one should realize when going thru the thought process of buying a business, selling a business or starting a business? If so I am not aware of it. Is it ok to worry 24/7, to have some fear when making the substantial investment of buying a business?

Is it ok to have a certain level fear when evaluating the decision to sell a business that you may have started and or been owning running for 10, 20, or 30 or more years. I personally think all these emotions are both acceptable and normal. I feel if there isn’t a certain level of fear then possibly the enormity of the situation may not be fully understood.

When working with business buyers and those selling a business, and also in consulting for several starting a business, I do not attempt to advise that certain emotions are right, wrong, or indifferent. My approach is to share my experiences and suggest that these emotions may be realized in the process of buying or selling a business. I have many conversation with business owners that may want to be selling their Business.

Photo (c) profitguide.com

The Fear Of Selling Your Business

They want to sell their business but the uncertainty that is so intertwined with the process can create fear, fear can create in- action. Business owners may want to sell or exit their business, but their business is a known entity. The business owner knows what to expect with running his business-relatively. Selling ones business can create so many unknowns that uncertainty,trepidation, concern worry and fear can result in just taking the path of least resistance which may mean to just keep running your business- even though you may not want to.

But a properly analyzed and thought out approach to buying or selling a business can produce some very desired emotions like relief, joy, and satisfaction. In my opinion emotions are a big part of the process of buying or selling a business. But you should not let your emotions get in the way of pursuing your desired goals.

Selling My Business Next Year

By Scott | March 28, 2012 - 9:28 am |July 13, 2013 business broker florida, Florida business broker, Jacksonville Florida businesses for sale, Main, sell a business, selling my business, small business owner

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Getting a business ready for sale is both advisable and prudent. Waking up one day and deciding you want to sell your business tomorrow may not be a good idea. Deciding that you would like to sell your business as an exit strategy and putting together a plan is likely to maximize your gain from the sale of your business.

You could easily Google Preparing your business for sale and find many many articles/list and sources of information. I had written a related article in the past as well. But beyond the list- what of these methods are most important? Are all of these measures necessary or are they just guidelines?

I had sold my own business of 20 years, I had entertained several offers over the years, I went thru various stages of decisions as to how I would exit my business. At some point I realized that my exit strategy would be to sell my business if I could find the right situation. But from my perspective the most important part of my approach was to commit to running my business as if I would own it perpetually.

Photo (c) smallbiztrends.com/

So many businesses that try to sell- don’t sell. A business owner needs to realize this and allow this fact to influence their thought process. Currently I am a business broker in Florida and work with Florida small business owners with the process of buying and selling a business.

Be Realistic When Deciding On Selling Your Business

Many components and aspects of your business should be looked at from a realistic standpoint, critiqued, and adjusted as needed when preparing your business for an eventual sale. Some important areas to address when looking to sell your business include:

Either develop, establish, or refine your business operational procedures, practices, and methodologies and have them documented
Does your business rely on you the business owner? If so, make changes to reduce that reliance.
Clean financials- Does your Income statement and Balance Sheet make sense ?

But the question to pose is what of these measures is most important or essential as it relates to preparing for the sale of my business?

In my opinion it is accurate , sensible, reliable Financial records.

The Importance Of Reliable Financial Records

Photo (c) bristoltn.org

Typical financials involved with the sale of you business can include Profit/Loss or Income Statements, Balance Sheets and Tax Records. Further into the due diligence process of your business good Sales Journals, Customer Information, Inventory Info, all can go a long way to maximizing the value of your business.

Clean financial records are so essential to all parties involved with the acquisition of a business. And all involved includes the Seller, the buyer, and possibly a bank, lender or third party investor.

So when looking to Sell your business-

If you have a great business that is producing great margins, produces a great bottom line, and a very high owner benefit- but the financial records do not support this – what do you have?

If you have a business that you own and run it semi-absentee, great systems, increasing sales, good industry but poor financial records- what do you have?

If you have the nicest looking, shiniest looking store, website, equipment, office or vehicles, but your financial records don’t make sense- what do you have?

Looking to sell your business next year? Start working on your financial records today.

7 Ways to Exit Your Business-Choose One

By Scott | December 8, 2011 - 7:31 am |July 13, 2013 Florida Businesses For Sale, Main, sell a business, sell a business florida, selling my business, small business owner

Ways To Exit Your Business

There are several ways one may exit their business. Business Owners may want to exit a business they have owned for decades just because they just no longer have an interest. Or a small business owner may “get out of their business” after a short period of time of just owning it a year or 2.

Most all entrepreneurs and small business owners think long and hard before they decided to buy a business or start a business. So often so little thought goes into an exit strategy. A small business may be the result ones passion or burning desire to provide a certain service or product.

A small business can also be and usually is one of the largest asset a small business may own. It can be a passion but it also is an investment. A significant investment. Most investments one enters into an exit strategy should exist before the investment is made.

Photo (c) advantagebusinessltd.com

You buy a commercial property to rent out with the intention to rent it for 10 years, hope for market appreciation and plan to sell in 10 years.

You buy a stock. You buy at $10 a share and plan to sell if stock goes to $15 (unless the company fundamentals change).

You decide to start or buy a business, it gets going and does well- is your plan just to run it forever? Well you cant, because none of us are here forever.

Emphasize On Making Plans For Your Business

If your plan is to start a business grow and run the business until you are 65 and then sell it- you have a plan and are ahead of most. It is so easy to start and buy a business and spend a lot of time preparing for that acquisition or start up, then get wrapped up in the transition or start-up, then get wrapped up in the day to day, and then one day you get real sick, and you have no one in your business that knows how to run your business, and laying in bed decide that you may need a plan- it may be to late then.

I am currently a business broker based in Florida and find my role of meeting with small business owners brings awareness to the need for an exit strategy. I had owned my own small business for 20 years and realized how ensconced with the day to day one can get with their small business. There are several ways to exit ones business- I primarily work with small business owners looking to sell their Florida business, but observe some of the other exit mechanism and have been personally involved with several of these methods.

These are a few methods a small business owner may utilize to exit a business. Some are good, some not so good.

The Good, the Bad and Ugly Ways to Exit Your Business:

Sell at profit- can include “merger with other companies
Sell at Loss
Close your doors-bankruptcy, long term negative cash flow.
Poor Health, Significant Injury, Death
LBO (Leveraged Buy Out)
Successfully grow it to such a size and take it public
leave to children

Or some combination of the above- one could die and leave the business to the children

But when you look at the above list you recognize that some of the exit strategies you choose on your schedule and others are “chosen for you” and you have less control over the time frame. Your plans can change and often do, but I suggest you plan to have a plan

Website & SEO Before You Sell Your Business

By Scott | October 19, 2011 - 10:27 am |July 13, 2013 business broker florida, buy a business, Florida Businesses For Sale, how to sell a business, sell a business florida, selling my business, small business owner

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Selling your business requires you to prepare your business for sale. One of the important steps in preparing your business for sale is a well designed web site that produces results. Below is information from the perspective of an SEO Web Design firm.

Tampa SEO is a full service web design and SEO agency in Tampa, FL. Here’s an article they wrote regarding web design and SEO prior to selling your business.

Why You Need SEO & a New Website Before Selling Your Business

So you have decided to sell your business and are making moves to get top dollar for your baby. Being a good business owner you understand that although your business means the world to you in the business world it is about proving the dollar amount from both an appraisal and sales perspective.

Whatever your business may be, the prospective buyers want to see the purchase and new ownership process go as seamlessly as possible. This means all your records are in order, the permits or licenses are all up to date, and most importantly the business will continue to be as or more successful than it was with new owners. Tampa SEO highly recommends that a new website and SEO campaign can help you with the latter.

Your business website represents your professionalism

When it comes to business success most owners will agree that the online market is one of the most important. Your website is the representation of your products and services, your image, your authority in your industry, and a way to provide potential customers information in a day and age where the Internet is the first place people look. Basically, having a well-designed website will help build business, retain business and represents everything you have worked so hard for when you yourself can’t make a live impression.

Tampa SEO knows that a modern website helps businesses before, during, and at the end of their operation so that they can showcase their professionalism and utilize their website as an additional marketing tool. Although having a great website will help with conversions your business will still need a way to attract customers and PROVE that it is a great marketing tool before its sale. This is where search engine optimization (SEO) comes into play.

Photo (c) topseopicks.com

SEO is simple, easy, and fast way to get increased market share prior to selling

While a website can be the source and reason you convert leads, SEO is the reason these leads are finding you. A new website and SEO campaign helps customers or clients who are already looking for your products or services find you quickly and easily. When a customer goes on to Google and searches for a generic phrase related to your business SEO makes your website come up high in the rankings and improves the chances that that customer will make a purchase from you.

This relates to the sale of your business because with SEO all the website activity is quantifiable. When you can prove to potential buyers that you have X amount of traffic and X amount of conversions you have proved your market share and ability to sustain business in the future. This is a great selling point as most other marketing campaigns- TV, radio, Yellowpages, etc. are difficult if not impossible to measure.

Shows new buyer you have continued to improve the business while selling

Every business buyer wants to know that the risk they are taking by purchasing your business is justified. What better way than showcasing to them through your new website and SEO analytics that your business is sustainable and can continue to grow through attracting new customers online. You have showcased the effort to improve marketing before you sell your business and have begun the process of attracting a bigger clientele through SEO.

It seems that websites and Internet marketing are a piece of every business plan these days. When selling your business make the decision easy for the buyer. Showcase to them that you care about the success of the business even after ownership has been transferred by investing in a website and SEO campaign that will continue to be successful even after you are gone. It is a huge buying factor and can improve the bottom line you can charge for your business as it is all justifiable.

Scott M Messinger is a business broker based in Florida. I work with both business owners and individuals in the process of buying and selling businesses. I normally write my views and perspectives from a small business owners standpoint. The above article is helpful information provided from the perspective of an SEO Web Design Company.

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