Sunday, December 4, 2016

Why don’t business owners just hire a manager when they want to retire? How to Buy a Business



The other night I was in Halifax, NS doing one of my Business Buyer workshops.

One gentleman was interested in buying a business that he could run with a manager and not be involved in full-time.

He was concerned that most small businesses had to be owner-run and wondered why owners just didn’t hire managers when they wanted to step back into retirement.

The reason… most small business owners aren’t capable.  I made this video to explain.  Watch it here: https://youtu.be/f3NPWgkYnLc  



I also explain how one of my very remarkable business buyers was able to manage several businesses while keeping a full-time job!

If you think you would benefit from my help and guidance over the coming year to meet your business goals, you may wish to consider my 2017 mastermind.  It’s for small business owners who want to improve their business or people who want to find and buy one. E-mail me for details.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca


Thanks and I’ll see you next time. 

Sunday, November 27, 2016

Pay off your Small Business Debt to build wealth? Think Again... How to Sell a Business



A few weeks go I made a video and blog post about whether it made sense to pay off all your small business debts in order to prepare a business for sale.  Watch the video here: https://youtu.be/pOJ3B1_K9L8



I promised to make another video discussing how paying off small business debt would affect the personal wealth of the owner.

You see, most small business owners are debt-averse.   They believe that debt is bad and that it makes sense to pay off debt to increase one’s net-worth.

The reality though is that debt gives you leverage and small businesses are risky.

Watch this week’s video to see how paying off small business debt actually reduces your rate of return and increases your risk!




If you think you would benefit from my help and guidance over the coming year to meet your business goals, you may wish to consider my 2017 mastermind.  It’s for small business owners who want to improve their business or people who want to find and buy one.

If you’re thinking of selling your small business and want a whole bunch of FREE information and advice, visit www.HowToSellMyOwnBusiness.com there are free videos, reports and access to my modestly priced books and online course on the process of selling a business.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca

My November 30, 2016 Halifax workshop is being sponsored by CEED. You can register at www.CEED.ca


Thanks and I’ll see you next time. 

Sunday, November 20, 2016

Should you sell your small business with a real estate agent? How to Sell a Business?



I recently had an exchange with a fellow on the West Coast who had some questions about selling his small business.

The conversation ended with, ‘well my friend is a commercial Realtor so if I have any more questions I’ll speak to him.’ Huh?!?

What on earth does selling real estate have to do with selling businesses?

It’s not the first time I’ve run into this in my career as a business broker and as a private sale transaction advisor.  There seems to be some idea out there that links businesses to real estate.

Let’s examine the characteristics of each and see where the overlap is:

Real Estate: doors, windows, roofs, foundations, walls, insulation…
Businesses: receivables, payables, employees, inventory…

I’m stumped.  Well, not totally.  There is a big reason why I think that many small business owners somehow end up trying to sell their business using a real estate agent and it has to do with silly outdated laws.  I made this video to explain: https://youtu.be/s9HkiHiiEB0



What’s really amazing though, is that while I was a business broker, I noticed that many real estate agents who normally sold houses were willing to take on businesses to sell.

AT THE VERY SAME TIME, my biggest source of referrals were COMMERCIAL REALTORS. Funny right? Watch the video and I’ll explain to you why.

If you’re thinking of selling your small business and want a whole bunch of FREE information and advice, visit www.HowToSellMyOwnBusiness.com there are free videos, reports and access to my modestly priced books and online course on the process of selling a business.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca


Thanks and I’ll see you next time. 

Monday, November 14, 2016

November 30- Halifax, NS

Image result for CEED logo


CEED: The Centre for Entrepreneurship Education and Development in Halifax, NS, has hired me to present my 3-hour How To Buy an Existing Business workshop.

They're letting the public attend for FREE.

Register here: https://ceed.ca/event/buy-existing-business/   Seats are limited.

Sunday, November 6, 2016

Pay off debts when getting ready to sell your small business?? How to Sell a Business

A debt-free business is easier to sell; Right?



I had an online exchange the other day with a guy on the west coast who believed that paying off his business debt was a key ingredient in preparing it for sale.

WRONG.

There are all kinds of problems with this thinking but this week I simply want to discuss it from the buyer’s point of view.

(There will be another video in two weeks about how this thinking affects the seller’s wealth.)

Does small business debt have an impact on the value of the company?

Nope, just like your mortgage doesn’t have an impact on the value of your house. The value of a business is derived from its cash flow.

Do you think they care if your business owes money? 

Well, this is a little more complicated.   A buyer may actually care quite a lot and it may not be for the reasons that a seller thinks.  I made this video to explain why some kinds of debt within a business may be very interesting for a potential buyer.  Watch it here: https://youtu.be/pOJ3B1_K9L8



This business owner would certainly benefit from working with me to get his business ready for sale.  I’ve got another mastermind group starting up for 2017.  E-mail me if you’re interested in learning more.  It’s for those who plan to buy, sell, or improve their business in 2017; dbarnett@alpatlantic.com

Learn how I help people sell their business at www.HowtoSellMyOwnBusiness.com

Learn how to buy a business. Visit www.BusinessBuyerAdvantage.com

HALIFAX, NS: I’m coming on November 30, 2016.  Find out more and register at https://ceed.ca/calendar/

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 


Thanks and I’ll see you next time. 

Sunday, October 30, 2016

Expanding a Small Business via Acquisition? Watch out for this HR cash flow landmine



Expanding through acquisition?  Watch out! Make this mistake and you could be in for an unexpected cash-flow cut! - How to Buy a Business.

How can buying a business make its’ value go down?

I had a chat with Sarah Mullins from UpTree HR in Halifax.

Sarah and I discussed some of the issues relating to HR when you buy a business or merge two companies in a strategic acquisition.

She’s been through dozens of them.

She even explains how buying another company can reduce its’ profitability.  If you haven’t done the right due-diligence, you could end up with less cash flow that you had forecast.

Watch the interview here: https://youtu.be/Bstm-Pm8hbs



For a full education and help on buying a business, visit www.BusinessBuyerAdvantage.com

Learn how I help people sell their business at www.HowtoSellMyOwnBusiness.com

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 just to the left of this post.


Thanks and I’ll see you next time. 

Sunday, October 23, 2016

Buy a Business with No Money?!? Part II. How to Buy a Business


I made this video a few weeks ago to explain the different scenarios that someone might conceivably buy a business with no money and the dangers for the buyers and sellers in each. Watch: https://youtu.be/NVTgDT7Cc2g



Cody, one of my viewers, sent in this thoughtful question in reply to the video:

Hello David, thanks for all the videos. Have a question: I have heard of people buying businesses through 100% financing, but not technically no money down.

So they first go to a lender and borrow against the assets of the business to raise cash, which they then give some or all that cash to the seller, as a down payment.

Then they get the Vendor(Seller) to carry some kind of financing on the rest, the seller is in a junior position to the lender in case the business fails.

In theory this should work great, the seller will get about as much cash at closing as they would if the seller liquidated.

Have you heard of this?
Does it work?
If it does work, is it easy to put together?
If it does not work, why not?

Great questions Cody! 

The problem with this scenario lies in two places… are we actually talking about buying a business or just a collection of assets?  The reason I ask is that if a seller is happy receiving an amount which approximates a liquidation then we’re not receiving operating capital or paying for goodwill.

If there is no goodwill value, is the business a profitable money maker?

Also, if you’re buying this as your first business then what would your opening balance sheet look like?  The banker will want to see.

I must admit though, this strategy would work for a different kind of buyer.  See my video response to learn who could pull this off. Watch: https://youtu.be/xZqJTa_YZj4



For a full education and help on buying a business, visit www.BusinessBuyerAdvantage.com

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 just to the left of this post.

My fall season live events are filling up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca


Thanks and I’ll see you next time.