Sunday, February 26, 2017

What’s better? An Original Startup or a Franchise? How About an Existing Franchise Location? How To Buy a Business



Bruce and Sara want to know about whether I think its smarter to buy a new franchise or an old one and how this compares to a startup.

Wow, there is so much to cover on this topic that I wrote a book about it in 2015.  Franchise Warnings is available as a .pdf at www.FranchiseWarnings.com or from Amazon.com or Amazon.ca.

The big message I try to get across to people is that starting a new franchise is just as risky as a new startup because you’re still relying on being able to draw customers away from established competitors.

Some franchisors like to say that the success rates of franchises are better than those of startups.  For example: 90% of startups are closed within 5 years while far more franchises are still operating. 

There are some big reasons why those franchises would still be operating even if they were losing money.  I explore several of these in my book and a big one in this video: https://youtu.be/Fi6f2fknDR0



My advice though is always the same; buy something that already has sales and profits.  This way there is no question that people will buy from the business... they already are.

Learn how to buy a business at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s so awesome that people all over the world buy it even if their local currency makes it seem expensive.  (The course works out to about $20/hr. and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

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.

Look just to the left, you can sign up for my e-mail list and get videos before they're released publicly as well as notices of deals or new live events.

I’m coming to Saint John, NB on March 1st, Moncton, NB on March 30 and Toronto on May 10.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.


Thanks and I’ll see you next time.

Thursday, February 23, 2017

I had a lot of fun appearing on The Entrepreneur Way with Host Neil Ball

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I had a blast speaking to host Neil Ball on The Entrepreneur Way.  He's an experienced entrepreneur and knows how to ask relevant questions.

Tuesday, February 21, 2017

I had a great time on Success Hackers with Scott Hansen

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I was invited to do a quick chat with Scott Hansen for his audience.  I had a great time and we covered a lot of essentials in about half an hour.  Check it out.


Listen to the Podcast here:

Sunday, February 19, 2017

Would people really want to pay money to buy the life of a busy entrepreneur? How To Sell A Small Business



Today I’m cleaning up from the second blizzard in five days.  Canada is awesome.

I still wanted to take the time to write my weekly e-mail though because being stuck inside has give me the chance to do more work on my latest project.

You know, most small business owners spend all day working in their business managing staff and serving customers.  They don’t get many chances for a break.  If these people suddenly had to sell their business, do you think anyone would be willing to pay money for the privilege of being tied down to a business that required non-stop attention? I’ve seen it too many times.

You see, I've been helping people for years to sell their companies and oftentimes I need to work with them first to make it sellable. This usually means fixing broken business practices, implementing organizational structures, job descriptions and workflow management.

It’s impossible for a business to grow and for the owner to step away if the basic framework of the business as a money-making machine is not built.

That stuff sounds hard and time consuming, but it doesn't have to be.

Over the years I've actually developed a 13-step process to make it easy to systematize a business - even while continuing to manage the day-to-day operations.

It doesn't take a special consultant or a team of professionals. It just requires a plan.

Right now I’ve started recording the modules for my new online course called Build a Business That People Will Want To Buy.  See the introduction module here: https://youtu.be/j2I7dhXp7eo



This program will be helpful to business owners and to new entrepreneurs starting up or those who wish to buy a business some day. 

Right now you can pre-order and get a savings before the course goes live.  Click here to sign up: https://gum.co/smallbizsystems/widereleaseoffer

If you’re really looking forward to this information and you’d like to join me and others in a live session you can sign yourself up for my March 30th event in Moncton, NB here: https://www.eventbrite.ca/e/build-a-business-that-people-will-want-to-buy-live-moncton-nb-tickets-31835795722

Look to the left of this blog post... sign yourself up so you get my new videos and posts each week before everyone else!

I’m coming to Saint John, NB on March 1st and April 10 in Mississauga, ON.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .   

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit https://ceed.ca/calendar/ for more info.


Thanks and I’ll see you next time.

Sunday, February 12, 2017

27-Year-Old Want to Buy a Business from a Baby Boomer- How To Buy a Business.



I received an e-mail from Vincent, a 27-year-old go-getter who wants to know what he needs to do to buy a business from a retiring baby boomer.

Some of my advice isn’t very sexy…

Live below your means and save money.  Most first-time buyers need down payments and have to pay closing costs and this money almost always comes from savings.

Build your credit.  Learn to use credit wisely and qualify for larger and larger facilities personally.  You may need to use the credit when you make your deal.  Perhaps buy a house if it makes sense for you.

Choose the right industry.  You need to pick an industry with a many potential target companies.
I’ve got these and a few more points in this video I recorded the other day.  Watch it here: https://youtu.be/SAIiek5ZQz4 



Most importantly though for Vincent, learn what you’re doing before you go looking for a deal!
Learn how to buy a business at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s such a great value that it really should be shipped in one of those Wal-Mart ‘Great Value’ packages.  (The course works out to about $20/hr. and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

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.

Go to www.DavidCBarnett.com and sign up for my weekly e-mail to receive my videos three days before they go public as well as other exclusive offers. Easy unsubscribe at any time as I use MailChimp.

I’m coming to Saint John, NB on March 1st.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit www.CEEED.ca for more info.

Thanks and I’ll see you next time.

Sunday, February 5, 2017

Top 5 Tips for Small Business Success- Small Business Management



Top 5 Tips for Small Business Success

I’ve served as a small business finance broker, a business broker and have been working for years as a small business consultant.

I’ve seen a lot of financial statements and seen and a lot of people be successful and have spectacular failures in their businesses.

I was recently asked by Fundera.com to summarize what I thought were 5 keys to small business success.  Fundera is a marketplace where all kinds of different small business finance sources come together to help finance small businesses.  Here they are:




1.      Know your gross margin and make sure it’s right.  Too often small business people don’t know what their margin should be.  This leads to a failure to increase prices when costs go up and a failure to build in all the costs of doing business. 

2.      Have a good record keeping system and reconcile quickly each month.  Even if you know what your margins should be, if you’re waiting for your accountant to prepare financial statements months after your year-end, you’re too late.  You need to be able to know for certain if you’re hitting your margins each month.  If your business has a lot of inventory, this can mean counting inventory EVERY MONTH.  Otherwise, you won’t know your cost of goods sold and you won’t know your margin.

3.      Understanding the difference between debt and equity on your INCOME STATEMENT.  Debt and equity are usually found on your balance sheet but they can also be hiding on your income statement.  Hire a new worker and you need to pay them each and every hour whether or not they’re productive.  It’s like borrowing from a bank, you need to pay them back.  Commissioned salespeople only get paid when they produce.  That’s like having a partner in the business without actually making them a partner.

4.      Getting the most return with the least investment. It always amazes me how small business people will get themselves into debt to purchase vehicles, machinery, buildings, etc.  Big businesses know that you deploy your capital where it gets the biggest rate of return and use leverage as much as possible.  Leverage doesn’t have to be debt!  When you lease property, you’re leveraging the landlord’s capital.  When you rent a truck, you’re leveraging the rental company’s capital.  If you can’t make money serving clients with leased and rented gear, what makes you think you can deliver those things yourself to your own business at a lower cost? 

5.      Understand your customer journey. Many small business people fail to appreciate the ‘journey’ their customers go through from the time they decide they need a product or service until the time they’re finished shopping.  When I was a corporate employee, I didn’t eat at restaurants who wouldn’t accept AMEX.  Why? Because my employer had given me an AMEX to pay expenses.  If a fantastic restauranteur didn’t accept the card, it meant that I had to pay with my own money, submit an expense claim with receipts, mail it in, wait for weeks for a cheque to come in the mail, then stop by an ATM to deposit the cheque.  Alternatively, a restaurant who took my AMEX didn’t cause me any grief.  Too many chefs are worried about the food and forget that they may actually be selling relief from hunger and paperwork.

My biggest tip for success though in small business is not to start one. Get a profitable business with customers and staff on your first day by buying an already successful company.

Learn how to buy a business at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s such a great value I may increase the price again shortly.  (The course works out to about $20/hr. and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

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.

Sign up to my mailing list.  There should be a form to the left or click here: http://eepurl.com/brqqjb

I’m coming to Saint John, NB on March 1st.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time.