tag:blogger.com,1999:blog-77308914961331771732024-03-18T12:45:33.183-03:00The Invest Local Book Blog.<center><b>Small Business, Local Investing, Private Lending, Borrowing, Business Buy/Sell, Franchise Issues, Being Heroic </b></center>Unknownnoreply@blogger.comBlogger982125tag:blogger.com,1999:blog-7730891496133177173.post-49739812550348968582024-03-18T12:45:00.000-03:002024-03-18T12:45:00.137-03:00Live - Quickest way to find a business in the UK with Alfie Lambert- Bizcrunch.co<div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/b5VMMhT_Szo?si=QArpB_P9cZ7FTEA3" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-9c9e4d34-7fff-9ede-1c1c-1ae2918106f1"><span style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;">Quickest way to find a business in the UK.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">New Livestream guest-> Alfie Lambert.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">I’m happy to have Alfie join me on a live broadcast.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">He’s the co-founder of BizCrunch.co, an online tool that makes it easy to find exactly the business you’re looking to buy in the UK.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Tune in and as we’ll be discussing the hows and whys of his new BizCrunch tool.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">This is a ‘must see event’ for searchers in the UK.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Be sure to join live so that you can ask questions, replay will be available.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Also, Alfie has set up a special offer for any of you who want to try out the service.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Tune in and get the link/discount code.</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Set yourself a reminder on YouTube here: </span><a href="https://youtube.com/live/b5VMMhT_Szo" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtube.com/live/b5VMMhT_Szo</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">We’ll be going live Monday March 18, 2024 1PM Atlantic, 12 Noon Eastern Time</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">See you there!</span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">David C Barnett</span></p><div><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></span></div><p><span style="font-family: inherit; font-size: medium;"> </span></p>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-81385080083882993062024-03-16T10:00:00.004-03:002024-03-16T10:00:00.171-03:00The ABCs of Factoring in Business<p><span face="Calibri, sans-serif" style="font-family: inherit; font-size: medium; white-space-collapse: preserve;">Today, let's dive into the world of factoring – a financial tool that can be a game-changer for businesses dealing with accounts receivable. Watch the full video here: </span></p><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/kF4stTpkU08?si=wMtIfks71hPUFbux" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-4b4f7033-7fff-cb21-45c4-96bb9f657cc7"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">So, what exactly is factoring? In simple terms, it's a financial process that allows companies to transform their accounts receivable into immediate cash. If you're in a business-to-business environment, offering trade credit is common – you provide goods or services, issue an invoice, and then patiently await payment, typically within 30 days.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Now, trade credit is industry-dependent. While fast-food businesses may receive instant payments at the counter, others, like those selling hard goods to retailers, might extend credit to clients. This credit allows retailers to sell goods, generate revenue, and pay the supplier within an agreed timeframe.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">However, this seemingly normal practice can lead to a cash flow crunch for growing businesses. Imagine having to wait for 30 days or more to receive payment for each sale while still covering operational costs. This scenario can be detrimental, especially for businesses experiencing rapid growth.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This is where factoring companies step in. They address the liquidity crisis by purchasing accounts receivable. Let's break it down:</span></span></p><ol style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">The Asset: When you make a sale and issue an invoice, the resulting accounts receivable is essentially your asset. It represents the money your customer owes you.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Factoring Agreement: A factoring company enters into an agreement with you to purchase these receivables. In exchange, they provide you with an advance amount – let's say $80 for a $100 debt.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Payment Shift: Once the agreement is in place, your customer now owes the money to the factoring company, not you. You instruct your customer to pay the factoring company directly.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: decimal; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Final Settlement: When the customer pays the factoring company, they deduct their fee (let's say 3%) and remit the remaining amount to you. In our example, you'd receive the remaining $17.</span></span></p></li></ol><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">On the surface, it might seem like a fee, but the benefits are substantial. Factoring accelerates your cash flow, providing immediate working capital to cover costs and fuel growth. The fee incurred is comparable to credit card processing charges but can offer a significantly higher return on investment.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">If you haven’t already, be sure to sign up for my email list at </span><a href="http://www.davidcbarnettlist.com" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">www.DavidCBarnettList.com</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-28396973129086586692024-03-13T09:00:00.001-03:002024-03-13T09:00:00.129-03:00The changing Value of your time<p><span style="font-family: inherit; font-size: medium;"> </span></p><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/KwNwBaZA1WA?si=kkdbE71gcuYjyIzX" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-4a75de4e-7fff-a450-bc47-7032b74e868b"><span style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;">***New Video Alert!</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">What’s more important to you?</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Money or time for personal pursuits and relationships?</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">This week, I take a stab at how to value your time and some very important considerations you need to make before you get into business.</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/KwNwBaZA1WA" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/KwNwBaZA1WA</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></p><br /><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Cheers</span></p><br /><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">See you over on YouTube</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">David C Barnett</span></p><br /><br /></span></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-16717469079225007282024-03-09T10:00:00.002-04:002024-03-12T10:14:38.426-03:00Unveiling the Franchise Reality: A Freshii Perspective on Business Ownership<p><span style="background-color: white; color: #0d0d0d; font-family: inherit; font-size: medium; white-space-collapse: preserve;">Today, I've got an eye-opening video to share about franchises, sparked by a recent news article. </span></p> <div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/reCX_ny5qqk?si=VB3pHuGPnh_gLThX" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Now, let's shift our focus to the pressing issue of franchises. As you may know, back in 2015, I penned a book called Franchise Warnings, shedding light on the pitfalls and risks associated with the franchise business model. Fast forward to today, and we're confronted with a recent news article about a Canadian franchise giant, Freshii, whose ambitious growth plans took a hit, leading to a 50% drop in stock value.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Freshii's CEO, Matthew Corrin, aimed to almost double their store count in 2019, but the reality was a far cry from expectations. The blame game began, with Corrin pointing fingers at underperforming franchisees and slower-than-anticipated growth in the UK and US markets. This situation raised eyebrows, prompting me to explore the deeper issues within the franchise model.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The franchise business model often relies on rapid expansion to attract investors and drive stock prices up. However, the consequences can be dire for individual franchisees who find themselves caught in the crossfire. Corrin's insistence on closing the bottom 10% of stores demonstrates a stark truth: franchisees don't truly own their businesses; they are merely extensions of the franchisor's larger enterprise.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This brings me to a cautionary tale from the past. The Great Canadian Bagel, once hailed as a success story with over 200 stores globally, now stands with only 20 locations, highlighting the transient nature of franchise success.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">When considering a franchise, it's crucial to align your goals with the franchisor's and understand the potential risks. Franchise ownership may not grant you the autonomy and control you envision, as the franchisor's priorities may clash with your individual business aspirations.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In conclusion, as you navigate the world of business ownership, stay informed and consider all aspects before jumping into a franchise opportunity. And if you're hungry for more insights, head to davidcbarnett.com and sign up for my email list to gain access to exclusive content, including my holiday chat videos.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Thanks for tuning in, and remember, true success comes from informed decisions and strategic planning. </span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Until next time.</span></p><p style="--tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-ring-color: rgba(69,89,164,.5); --tw-ring-offset-color: #fff; --tw-ring-offset-shadow: 0 0 transparent; --tw-ring-offset-width: 0px; --tw-ring-shadow: 0 0 transparent; --tw-rotate: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-shadow-colored: 0 0 transparent; --tw-shadow: 0 0 transparent; --tw-skew-x: 0; --tw-skew-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; background-color: white; border: 0px solid rgb(227, 227, 227); box-sizing: border-box; color: #0d0d0d; margin: 1.25em 0px 0px; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Dave Barnett.</span></p></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-46831260292232698682024-03-06T11:00:00.001-04:002024-03-06T11:00:00.251-04:00<p><span style="font-size: medium;"> </span></p><div style="text-align: center;"><span style="font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/S4Ts-jyQxh4?si=hWY_ADvOMD2cvEie" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-039b1f04-7fff-bc4d-3b70-cde260b31cf9"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Trace wants to know the difference between online businesses and real-world ones.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Finance, operations and will there be a buyer for his business when he’s ready to sell?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Which one has the greater potential for trouble?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-size: medium;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/S4Ts-jyQxh4" style="text-decoration-line: none;"><span style="color: blue; font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/S4Ts-jyQxh4</span></a><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Cheers</span></span></p><span style="font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-49577013173393640132024-03-06T09:00:00.001-04:002024-03-06T09:00:00.130-04:00Online vs real world businesses<p style="text-align: center;"> </p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/S4Ts-jyQxh4?si=JyF5rqZTnvkCgzgn" title="YouTube video player" width="560"></iframe><div><br /></div><div><span id="docs-internal-guid-3241048a-7fff-7a14-74cf-1c897d693d28"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;">***New Video Alert!</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Trace wants to know the difference between online businesses and real-world ones.</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Finance, operations and will there be a buyer for his business when he’s ready to sell?</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Which one has the greater potential for trouble?</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/S4Ts-jyQxh4" style="text-decoration-line: none;"><span style="color: blue; font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/S4Ts-jyQxh4</span></a><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></p><br /><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Cheers</span></p><br /><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">See you over on YouTube</span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">David C Barnett</span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-75624255467935031722024-03-02T11:38:00.002-04:002024-03-03T16:27:09.798-04:00 The Hidden Pitfalls of Business Growth: <p><span style="font-family: inherit; font-size: medium;"> </span></p><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/__x9-zpQb68?si=051pugNbbh0zLMd-" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-bda7e248-7fff-5124-189c-52856fc21bfd"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This individual runs a thriving therapy business in the southern US, and her rapid growth presented a financial challenge that many businesses face without even realizing it.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Story Unfolds:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This therapist, talented in her field but lacking extensive business experience, sought a business loan to address what she perceived as a need for additional operating capital. Intrigued, I had a conversation with her to delve into the intricacies of her financial situation.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Quandary:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">On the surface, her business seemed healthy. Charging $139 per therapy session and paying her assistants $50, she appeared to have a robust gross margin. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">However, she consistently found herself without enough money to pay herself, despite what seemed like a successful practice.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Issue: Growing Pains and Cash Flow Timing:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Upon closer examination, it became evident that her growing business was facing a common challenge—cash flow timing. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">She was adding multiple new clients each week, but the insurance companies she worked with took 30 to 45 days to process payments. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Meanwhile, she paid her assistants every two weeks. The result? A significant gap between the money going out and the money coming in.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Danger of Financing the Value Chain:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This situation highlighted a crucial point: when your receivables (what you're owed) grow faster than your payables (what you owe), you find yourself in a perpetual need for higher operating capital to finance your customers.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;"> Essentially, you're inadvertently financing the value chain of your business.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Illusion of a Loan Solution:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The initial inclination was to seek a business loan to alleviate the short-term pressure. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">However, I cautioned against this approach. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">While a loan might provide temporary relief, it wouldn't address the underlying issue. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">If the business continued growing at the same pace, the borrowed capital would ultimately be consumed by the need to finance the insurance companies' delayed payments.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The True Solution: Matching Receivables with Payables:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The key to resolving her financial challenge was to extend her payables. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">By changing the payment terms for her assistants to align with the typical payment cycle from insurance companies, she could match the money she's owed with the money she owes to others.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;"> This would prevent her from unintentionally financing the activities of the insurance companies.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">A Valuable Lesson: Financing Wisely:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This scenario highlights the importance of keeping a close eye on your payables and receivables. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Businesses should be cautious about taking on debt unless it's to acquire assets that will generate profit over time. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Borrowing to meet short-term financing needs, especially when it involves financing customers' activities, can lead to a cycle of interest payments without significant benefit.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Closing Thoughts:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">It's a reminder that businesses should strive to match receivables and payables, ensuring a healthy cash flow.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Whether it's through credit terms with customers or strategic payment schedules, businesses can navigate growth more effectively by managing their cash flow wisely.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Never miss any of my content by signing up for my email list at </span><a href="https://www.davidcbarnettlist.com" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://www.DavidCBarnettList.com</span></a></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-65362100494285563392024-03-01T10:00:00.001-04:002024-03-04T12:57:09.399-04:00A great Interview with Jay Schwedelson Host of Small Business Quick WINS Presented By Thryv<p> </p><div style="text-align: center;"><iframe allow="autoplay *; encrypted-media *; fullscreen *; clipboard-write" frameborder="0" height="175" sandbox="allow-forms allow-popups allow-same-origin allow-scripts allow-storage-access-by-user-activation allow-top-navigation-by-user-activation" src="https://embed.podcasts.apple.com/us/podcast/stop-trying-to-sell-a-business-without-value-w/id1727325023?i=1000647506226" style="border-radius: 10px; max-width: 660px; overflow: hidden; width: 100%;"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span style="background-color: white; color: #1d1d1f; letter-spacing: -0.065px;"><span style="font-family: inherit; font-size: medium;">In this episode of Small Business Quick Wins, host Jay interviews David Barnett, an expert on buying and selling small businesses. They discuss how to determine the value of a business, what makes a business attractive to potential buyers, common mistakes sellers make, and tips for successfully exiting a business.</span></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-71567657914200647932024-02-28T09:09:00.005-04:002024-02-29T13:27:02.829-04:00Is Entrepreneurship for the priviledged?<p> </p><div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/TrTx1gxCWAM?si=ppbnY8nAB6eUNRrs" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-0b1ee99b-7fff-4cbc-fd5e-5193d52d35c7"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Rob says that only the ‘privileged’ will survive in entrepreneurship.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Let’s read his story and I’ll share with you what I think and analyze the clues that he leaves behind which reveal his business acumen.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Or, lack thereof.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/TrTx1gxCWAM" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/TrTx1gxCWAM</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-85147804356719201012024-02-26T15:46:00.000-04:002024-02-26T15:46:53.893-04:00Lessons from the auto repair industry.<p><span style="font-family: Calibri, sans-serif; white-space-collapse: preserve;"><span style="font-size: medium;"><br /></span></span></p><p><span style="white-space-collapse: preserve;"><span style="font-size: medium;"></span></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-size: medium;"><span style="font-family: inherit;"><iframe allowfullscreen="" class="BLOG_video_class" height="298" src="https://www.youtube.com/embed/4vJGl8pHD54" width="359" youtube-src-id="4vJGl8pHD54"></iframe></span></span></div><span style="font-size: medium;"><span style="font-family: Calibri, sans-serif;"><br />New Livestream guest-> Murray Voth- RPM Training.</span></span><p></p><span id="docs-internal-guid-6357a4ab-7fff-b0a5-ddfb-a6eb72b23f02"><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">I’m happy to have Murray join me on a live broadcast.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">He’s been in and around the automotive industry for his entire career and now he works with auto shop owners helping them make their businesses better.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Tune in and as we’ll be discussing service, pricing and setting customer expectations.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">This is a ‘must see event’ for anyone who owns or will own a business that caters to the public.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Yes- I will ask him for tips on how to impress sellers in this industry. </span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">It’s a target-rich subgroup of owners.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">Be sure to join live so that you can ask questions, replay will be available.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-size: medium;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Set yourself a reminder on YouTube here: </span><a href="https://youtube.com/live/4vJGl8pHD54" style="text-decoration-line: none;"><span style="color: #1155cc; font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtube.com/live/4vJGl8pHD54</span></a><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">We’ll be going live Monday February 26, 2024 at 1:00 PM Atlantic Time and 12 Noon Eastern Time</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">See you there!</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: Calibri, sans-serif; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-17557274837817083212024-02-24T09:00:00.000-04:002024-02-24T09:00:00.128-04:00The Hidden Dangers of Businesses with No Asking Price<p><span face="Calibri, sans-serif" style="font-family: inherit; font-size: medium; white-space-collapse: preserve;">I have an interest in discussing a topic that I received years ago – “businesses without specified asking prices”. </span></p><span id="docs-internal-guid-3a693745-7fff-14ad-5367-4ee654924ef5" style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Calibri, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Inspired by a question from one of our viewers, I'm eager to provide some illuminating insights into this intriguing subject.</span></p><div><span face="Calibri, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/tBLUQ8nI9tQ?si=W3enNIB7kTWBwA8p" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-da83d402-7fff-b721-c2c3-e0621e4ca4f7"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Dead Capital and the Real Issue:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I've encountered situations where businesses are presented for sale with no asking price, and upon closer inspection, I found a common issue—dead capital. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">What's dead capital, you ask? It's when business owners have invested in machinery, inventory, and other assets that aren't generating a sufficient rate of return. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In simpler terms, the business isn't justifying the capital invested in it.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Cash Flow Conundrum:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In the two instances where I was brought in to assess such businesses, the cash flow didn't align with the tangible products and assets involved. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Whether it's machinery, inventory, or infrastructure, the return on investment wasn't up to par.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;"> This mismatch between the value of the assets and the actual cash flow is a red flag.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Warren Buffett's Perspective:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">It brings to mind a quote from Warren Buffett, who once mentioned that if you want him to consider buying something, you need to put a price on it. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The idea is simple—transparency in pricing is crucial for making informed decisions.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Auctioneer Dilemma:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Traditionally, businesses facing dead capital would head straight to an auctioneer, liquidating assets to recoup some value.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;"> However, a growing trend involves attempting to sell these businesses as going concerns, hoping to find a buyer willing to pay more than the sum of its parts.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Buyer's Dilemma:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">For prospective buyers, it's essential to be cautious. Businesses with no asking price may be concealing a deeper issue. </span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The real challenge is distinguishing between a genuine opportunity (perhaps with a redevelopment angle) and a business burdened by dead capital.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Navigate the World of Business Buying:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">If you're intrigued by the prospect of buying a business and want to avoid costly mistakes, consider enrolling in my online course, </span><a href="https://www.businessbuyeradvantage.com" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">Business Buyer Advantage. </span></a></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">It's a comprehensive program that guides you through the nuances of acquiring small and medium-sized businesses.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Visit to explore the course, watch an informative video, and take control of your journey in the world of business acquisitions.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Be sure to never miss any of my great content or special offers by being on my email list at </span><a href="https://www.davidcbarnettlist.com" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://www.DavidCBarnettList.com</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers,</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 10pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-30104190020627247362024-02-21T09:00:00.000-04:002024-02-23T09:27:11.177-04:00Raise your Prices<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/t_FpX1zr_7k?si=cvHOPsT7RmAHRlry" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-cf95a245-7fff-55a3-fa41-67f8e3000351"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I had a meal the other day with a small business owner.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">He has a very popular service that doesn’t make him any money.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">What can he do?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Why is pricing review so important?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I will get into it this week and give some advice about how to do it.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/t_FpX1zr_7k" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/t_FpX1zr_7k</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div><p> </p>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-37601328307713503732024-02-17T10:00:00.001-04:002024-02-17T10:00:00.133-04:00A Lesson from Ryan Duffy's Franchise Dispute<p><span style="font-family: inherit; font-size: medium;"> <span face="Calibri, sans-serif" style="font-weight: 700; white-space-collapse: preserve;">A Lesson from Ryan Duffy's Franchise Dispute</span></span></p><p><span face="Calibri, sans-serif" style="font-family: inherit; font-size: medium; white-space-collapse: preserve;">Hello Everyone,</span></p><span id="docs-internal-guid-84a29808-7fff-a11f-c56b-256aef4e7087" style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Calibri, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Today, I stumbled upon an intriguing newspaper article that sheds light on the complexities of a small business deal. Let's dive in.</span></p><div><span face="Calibri, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/2he-2rU4JIQ?si=k43z5y7t06BZG6PE" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-3eda918d-7fff-ba9e-aec9-47a71a718343"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Unseen Opportunities in Newspapers:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Being an avid newspaper reader, I often discover unique business opportunities and insights that aren't readily available elsewhere. Years ago, I came across a headline involving a dispute related to the Donair dynasty, and while it might seem like a family matter, it unveils the intricacies of a real small business deal.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Donair Dynasty Background:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The article delves into the history of the Donair, tracing its roots to an immigrant from Greece who created a sweet-sauce version of the traditional gyro sandwich. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This innovative twist led to the establishment of the King of Donair chain, becoming a thriving business. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Fast forward, and a family dispute over a small business deal surfaces, bringing the details into mainstream media.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Ryan Duffy's Franchise and Financing Dynamics:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The focus of our interest lies in a franchise deal involving Ryan Duffy's, a well-known steak and seafood house in Halifax. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Two parties, Bern and Costain, sold their Ryan Duffy's franchise to Gamalakos, the son of the Donair inventor. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The purchase price was $400,000, structured as a financing agreement.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">100% Seller Financing and Promissory Notes:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Here's the intriguing part — the entire $400,000 was financed by the sellers through two promissory notes. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Yes, you read that right, 100% seller financing. The agreement required monthly payments with a 4.5% interest rate. The transaction details are somewhat unusual, as it was a share deal for a restaurant, not the typical asset sale.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">My guess is that the sellers were only willing to do this because they believed the buyer had the experience and expertise to successfully execute on the project.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Defaults, Guarantees, and Legal Consequences:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Unfortunately, the buyer, Gamalakos, defaulted on the payments just under a year after the deal in December 2017. What's notable is that the sellers, instead of reclaiming the restaurant, pursued legal action to recoup the money.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;"> The article mentions an interesting negotiation point — Gamalakos offered a 50% personal guarantee, reducing his potential liability.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Insights into Real Business Deals:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This real-life scenario offers a glimpse into the dynamics of small business transactions.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">It dispels the myth that deals are always done with full cash payments and explores the intricacies of seller financing, defaults, and negotiations around personal guarantees.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Learn to Navigate Business Deals:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">For those aspiring to buy a business one day, it's crucial to understand these deal dynamics. I've crafted a comprehensive program on how to buy a business, encompassing video tutorials, online courses, and group coaching. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Whether you're a seasoned entrepreneur or new to the business world, there's something valuable for everyone.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Remember, negotiating personal guarantees is not set in stone. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">It's a skill, and as showcased in this real example, negotiations are possible.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers to unveiling the secrets of business transactions!</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">If you want to learn more and see my latest videos, be sure to subscribe to my email list at </span><a href="https://www.davidcbarnettlist.com" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://www.DavidCBarnettList.com</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 10pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-16793217407401632062024-02-14T09:05:00.002-04:002024-02-14T09:05:42.577-04:00<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/3_Ejjrdo-cU?si=9wovrox2oNlkArTU" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-fb9bb2fb-7fff-54e8-4baa-f9e3d7718846"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I get frequent questions about choosing an industry or type of business.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In today’s video, I explore Michael Porter’s ‘5 Forces’ within the lens of small business.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/3_Ejjrdo-cU" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/3_Ejjrdo-cU</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div><p> </p>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-35144020334215250392024-02-14T09:00:00.000-04:002024-02-14T09:00:00.238-04:00<p><span style="font-family: inherit; font-size: medium;"> </span></p><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/3_Ejjrdo-cU?si=MwENelGg9NyfP6Aa" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-31c37608-7fff-f0db-dcca-5ae14feb08f1"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I get frequent questions about choosing an industry or type of business.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In today’s video, I explore Michael Porter’s ‘5 Forces’ within the lens of small business.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/3_Ejjrdo-cU" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/3_Ejjrdo-cU</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="background-color: white; line-height: 1.2; margin-bottom: 0pt; margin-top: 0pt;"><br /></p><div><span style="background-color: transparent; font-family: "Helvetica Neue", sans-serif; font-size: 10pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-21108311605759186422024-02-10T10:19:00.000-04:002024-02-10T10:19:49.527-04:00Navigating the Nuances of the Small Business Market<p><span style="font-family: inherit; font-size: medium;"> <span face="Arial, sans-serif" style="white-space-collapse: preserve;">Today, let's dive into the complex world of the small business market, addressing a question I received a few years ago about market conditions.</span></span></p><span id="docs-internal-guid-e2bd33d6-7fff-2ea5-799f-9f30aa1151e0" style="font-family: inherit; font-size: medium;"><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;">Understanding the Unique Dynamics:</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">The notion of a singular market for small businesses is a common but misleading concept. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">In reality, every category and even each individual small business has its own distinct market. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Drawing parallels with real estate, where markets for three-bedroom homes can vary by city, the small business landscape is similarly intricate.</span></p><div><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/aOFhyYjFoYc?si=dhwcX5vHXda_a-1W" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-ac309ff2-7fff-aef9-3eee-e34b1904c8da"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Secretive Nature of the Small Business Market:</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Unlike real estate, the small business market is shrouded in secrecy. The lack of transparent data makes it challenging to gauge market conditions accurately. While real estate transactions and prices are publicly available, no such comprehensive database exists for small businesses. This opacity further complicates the understanding of small business market dynamics.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Buyer-Specific Markets:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Buyers in the small business arena are diverse, each seeking unique opportunities aligned with their preferences and backgrounds. For instance, a buyer with an engineering background might be in the market for a manufacturing facility, excluding businesses like flower shops, regardless of their profitability.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Market Filters and Conditions:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Buyers often apply filters such as industry focus, geographic location, or personal considerations when navigating the small business market. These filters contribute to the complexity of defining a specific market, as the ideal business for one buyer might not align with the criteria of another.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Government Policies and Market Impact:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Observing market trends over the past few years, I've noticed the influence of government policies on specific small business segments. In my local context in New Brunswick, Canada, government programs aimed at boosting immigration have led to an influx of demand in businesses that are relatively simple to operate. The provincial nominee program, for instance, fast-tracks citizenship for immigrants investing in businesses.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Impact on Pricing and Overpaying:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This government intervention has inadvertently led to an oversupply of demand in certain market segments, causing newcomers to overpay for businesses. Businesses like gas stations, convenience stores, and small franchises have witnessed significant price hikes due to the pressure created by the provincial nominee program.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Join my email list at </span><a href="http://www.davidcbarnettlist.com" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">www.DavidCBarnettList.com</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I share weekly videos touching on various aspects of small businesses, investing, and more. Your journey into the world of local investing and small business success begins here.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers,</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Dave Barnett</span></span></p><div><span style="font-family: Arial, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-37186730744067434112024-02-07T09:00:00.003-04:002024-02-08T08:32:54.404-04:00Confidence to buy a business<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/xGQJMnmEPsQ?si=cRVAc8eBRdY_XKA3" title="YouTube video player" width="560"></iframe></div><div><span class="yt-core-attributed-string--link-inherit-color" face="Roboto, Arial, sans-serif" style="background: rgba(0, 0, 0, 0.05); border: 0px; color: #131313; font-size: 14px; margin: 0px; padding: 0px; white-space-collapse: preserve;"><br /></span></div><span style="background-color: white; font-family: inherit; font-size: medium;"><span class="yt-core-attributed-string--link-inherit-color" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; white-space-collapse: preserve;">***New Video Alert!
Liam has an MBA, industry experience and a desire to own a business.
So, why does he suffer from fear and a lack of confidence to do a deal?
I’m no psychologist, but I do have some advice based on my observations over the years that might help him out.
Watch this week’s video here: </span><span class="yt-core-attributed-string--link-inherit-color" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; white-space-collapse: preserve;"><span class="yt-core-attributed-string--highlight-text-decorator" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-radius: 8px; border: 0px; margin: 0px; padding: 0px 0px 1px;"><a aria-label="YouTube Channel Link: Confidence to buy a business" class="yt-core-attributed-string__link yt-core-attributed-string__link--display-type yt-core-attributed-string__link--call-to-action-color" force-new-state="true" href="https://www.youtube.com/watch?v=xGQJMnmEPsQ&t=0s" rel="nofollow" style="align-items: center; display: inline-flex; text-decoration-line: none;" tabindex="0" target=""> <span class="yt-core-attributed-string--inline-flex-mod" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; display: inline-flex; height: 1.4em; margin: 0.5px 0px 0px; padding: 0px; vertical-align: middle;"><img alt="" class="yt-core-image yt-core-attributed-string__image-element yt-core-attributed-string__image-element--image-alignment-vertical-center yt-core-image--content-mode-scale-to-fill yt-core-image--loaded" src="https://www.gstatic.com/youtube/img/watch/yt_favicon.png" style="align-self: center; background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; display: inline-block; height: 10px; margin: 0px; min-height: 1px; min-width: 1px; object-fit: fill; padding: 0px; visibility: inherit; width: 14px;" /></span> • Confidence to buy a business </a></span></span><span class="yt-core-attributed-string--link-inherit-color" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; white-space-collapse: preserve;">
Cheers
See you over on YouTube
David C Barnett</span></span>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-25931288700622272442024-02-05T12:45:00.000-04:002024-02-05T12:45:00.149-04:00Live- Jon Matzner and the Boomer Bummer SmallBiz!<p> </p><div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/HkBKkXj7_4g?si=i5deauaCJbYd0qRs" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Jon Matzner and the Boomer Bummer SmallBiz!</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
New Livestream guest- Jon Matzner</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
I’m happy to have Jon join me on a live broadcast.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
Jon has bought a business, grown it to over 25 locations.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
He’s got a big social media following and speaks often about entrepreneurship through acquisition.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
Tune in and we'll be discussing The Boomer Bummer!</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
AKA- What happens when you do a dumb deal in the SMB world.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
This is a ‘must see event’ for anyone who lacks real world business experience but still wants to pursue a highly-leveraged acquisition transaction.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
Be sure to join live so that you can ask questions, replay will be available.</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
We’ll be going live Monday February 05, 2024</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
See you there!</span></span></div><div style="text-align: left;"><span style="background-color: white; color: #0d0d0d; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">
David C Barnett</span></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-23480457385151100592024-02-03T10:15:00.005-04:002024-02-12T09:42:16.730-04:00 Unveiling the Blueprint for Successful Franchise Selection<p><span style="font-family: inherit; font-size: medium;"><span face="Arial, sans-serif" style="white-space-collapse: preserve;">Today, let's delve into a topic that often sparks curiosity—what to look for in a franchise business.</span></span></p><span id="docs-internal-guid-8ce44399-7fff-db46-cdf8-4c1f985779c0" style="font-family: inherit; font-size: medium;"><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Addressing Reader Feedback:</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Recently, I received thoughtful feedback from Ed, who delved into my book, "Franchise Warnings." Ed resonated with the emphasis on doing thorough research but sought additional insights into the key criteria for evaluating franchise opportunities.</span></p><div><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div><div><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/JUItDU5cn-E?si=bdIV_CCPKFfzvJvo" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-c0b5c182-7fff-d644-f29b-5bba878beba6"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">First off, I want to clarify that the primary message in "Franchise Warnings" isn't merely about doing homework but rather highlighting that buying a new franchise carries comparable risks to launching an independent startup. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Both ventures entail the challenge of attracting customers away from established options.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Top Three Criteria for Evaluating Franchise Opportunities:</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">If I were to embark on the journey of choosing a franchise business, here are the three paramount criteria that would top my list:</span></span></p><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Fee-Based Structure:</span></span></p></li><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Many franchises operate on a royalty or percentage model, limiting your success by increasing payments to the franchisor as your business grows.</span></span></p></li><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Opt for franchises with a fee-based structure, where a flat monthly fee remains constant, allowing you to reap the rewards of your business growth without an escalating payment burden.</span></span></p></li></ul><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Effective and Proven Systems:</span></span></p></li><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Franchises often tout their systems as a selling point. However, some fall short in delivering comprehensive operations manuals.</span></span></p></li><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">To assess the efficacy of systems, talk to existing franchisees. Their real-world experiences provide invaluable insights into whether the promised systems are tangible and effective.</span></span></p></li></ul><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Industry with Growth Potential:</span></span></p></li><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Avoid oversaturated industries, as competition can dilute the market and hinder your ability to capture a substantial share.</span></span></p></li><li aria-level="2" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Seek franchises in industries where you can be a pioneer or one of the first entrants, ensuring ample room for growth and market capture.</span></span></p></li></ul></ul><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Perils of Oversaturation:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I shared an example of the frozen yogurt industry to illustrate the risks of oversaturation. Initial enthusiasm can wane as more franchises enter the scene, impacting individual unit profitability. Royalties, based on sales rather than profits, intensify the risks borne by franchisees.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In the concluding sections of "Franchise Warnings," I advocate a strategic approach:</span></span></p><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">If you desire the support and systems provided by a franchisor.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">If you prefer focusing on day-to-day operations while someone else manages promotions.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Instead of starting a new franchise, consider purchasing an existing, successful, and profitable franchise location.</span></span></p></li></ul><div style="text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhe7Y6Gn1ZU_AKk_0ElegdvYSiZlMrS2h_f4OEHPAZFYDJEe3vbejGY1BzMdE6vhvl1M0-0wUvw_r0JMYXik3Aa7kTE75TfJc4XElEJ1BGy_gfrK6R_9rr4pt-CnwdfVhC6ftNPgvSg2wzuEItNG8pYCvgZL1QlSEyByt34YuZzIrs1ZMh3Fn3GfI5DDKA/s4456/pdf%20download%20img.jpeg" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: inherit; font-size: medium;"><img border="0" data-original-height="4456" data-original-width="3366" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhe7Y6Gn1ZU_AKk_0ElegdvYSiZlMrS2h_f4OEHPAZFYDJEe3vbejGY1BzMdE6vhvl1M0-0wUvw_r0JMYXik3Aa7kTE75TfJc4XElEJ1BGy_gfrK6R_9rr4pt-CnwdfVhC6ftNPgvSg2wzuEItNG8pYCvgZL1QlSEyByt34YuZzIrs1ZMh3Fn3GfI5DDKA/w154-h204/pdf%20download%20img.jpeg" width="154" /></span></a></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><span id="docs-internal-guid-dbefdb3b-7fff-4dd3-5df7-adb678f3ee2c"><span style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><i><a href="https://drive.google.com/file/d/1IUO4m5fgB-Ssshqs0brLvffoSEzvmaII/view?usp=drive_link">Click here to download my Franchise Selection Criteria Guide.</a></i></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Here's to informed decisions and successful ventures!</span></p><div style="text-align: left;"><br /></div><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Cheer!</span></p><div style="text-align: left;"><br /></div><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Dave Barnett</span></p><div><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></span></div><span style="font-family: inherit; font-size: medium;"><br /></span><span face="Arial, sans-serif" style="font-size: 14.6667px; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-76196823381969568022024-01-31T09:00:00.003-04:002024-01-31T09:00:00.162-04:00The Million dollar income with only 300K down<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/cf1g0sxzyTM?si=6V_rFpP5-PcgmTrQ" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-9e04448b-7fff-00c4-9cb1-738f6d085a1a"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This high-income viewer is excited. </span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">He’s got a complex financial background but shares some of the same misconceptions as others who are new to the SMB marketplace.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Let’s explore his questions because there is a lot that we can learn from them.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/cf1g0sxzyTM" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/cf1g0sxzyTM</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-19540972493476319162024-01-27T09:00:00.006-04:002024-01-27T09:00:00.417-04:00Decoding Business Valuation: Cash Flow, Inventory, and More<p><span style="font-family: inherit; font-size: medium;"><span face="Arial, sans-serif" style="white-space-collapse: preserve;">Hey there,</span></span></p><span id="docs-internal-guid-b813ca89-7fff-fb5f-c696-19a2274b14f3" style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Today, I want to dive into a great question I received from Anton about evaluating a business and how inventory fits into the equation. </span><span face="Arial, sans-serif" style="white-space-collapse: preserve;">Let's dive into it!</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="white-space-collapse: preserve;"><br /></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Question:</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span face="Arial, sans-serif" style="white-space-collapse: preserve;"><span id="docs-internal-guid-75b553f9-7fff-7c39-4bcb-428235bf34df"></span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When assessing a business, should the value of inventory be added on top of the multiple of cash flow in determining its overall worth?</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/X6L_dS2gRYs?si=5Ow0dX3RrH4PvGEe" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span id="docs-internal-guid-2f831a58-7fff-e568-3433-974ce1f22a71"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Understanding Enterprise Value:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">When we calculate cash flow multiples, we arrive at what's known as enterprise value. Enterprise value encompasses everything necessary to make the business operate efficiently, from machinery to equipment and more.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Role of Inventory:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Inventory is a vital part of a business's operating capital, alongside assets like cash and receivables. However, how inventory is treated by lenders for collateral purposes depends on its nature.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Fungible vs. Non-Fungible Inventory:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Fungible Inventory (e.g., Lumber): Banks are more likely to lend against this type of inventory, considering it as security. It can be liquidated if needed.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Non-Fungible Inventory (e.g., Fashion): More challenging to finance due to its perishable or seasonal nature. Banks might be less willing to use it as collateral.</span></span></p></li></ul><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Net Normal Position in Working Capital:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The enterprise value already includes the net normal position in working capital. This refers to the amount of equity an owner typically needs to support working capital. It considers factors like inventory, receivables, payables, and the owner's cash.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Businesses that have been successful for a long time are often over-capitalized with working capital. What the current owner has done may be very different from how you’ll need to operate.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Asset Sale vs. Share Sale:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Asset Sale: The buyer acquires equipment, machinery, leaseholds, and inventory. The buyer must secure their line of credit to support the inventory since debts and lines of credit aren't transferred.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Share Sale: Inventory, payables, and receivables usually come with the company. Working capital adjustments are made during the transaction.</span></span></p></li></ul><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Implications for Buyers:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Fungible Inventory: In businesses with highly fungible inventory, a significant portion is likely added to the cash flow multiplier.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Non-Fungible Inventory: For businesses like produce stands or fashion boutiques, the entire inventory may be factored into the cash flow multiplier, as it can't stand as collateral for lenders.</span></span></p></li></ul><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Understanding the dynamics of inventory in business valuation is crucial. It impacts the negotiation process and the overall financial strategy for the buyer.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">If you found this explanation helpful, you'll appreciate the in-depth case studies and insights in my online course. </span></span></p><div style="text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://drive.google.com/file/d/1zrpM9mOVmtppgu192JBGtLfu1s5HMjNz/view?usp=drive_link" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: inherit; font-size: medium;"><img border="0" data-original-height="4456" data-original-width="3366" height="162" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3WPeHXa_e1WT2SpTwxi1-IbSwkRw4XyEc6KNSRujPgG7SIQl1qj3o1IQ7Qis8OgRFROZOx8O2EeqqlnfayBG97PDkf6_SeLXAe_qfJbLaaEnhtBGIcXvc25HQcy6Z9V0CrmJts4-KJQYnCJ4VmssA84-aecJ1QxmUEQyE_rM4cPz7vI5fC60CQ_9yqNU/w123-h162/pdf%20download%20img.jpeg" width="123" /></span></a></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://drive.google.com/file/d/1zrpM9mOVmtppgu192JBGtLfu1s5HMjNz/view?usp=drive_link"><span style="font-family: inherit; font-size: medium;">Download the free resource here: https://drive.google.com/file/d/1zrpM9mOVmtppgu192JBGtLfu1s5HMjNz/view?usp=drive_link </span></a></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Don’t forget to like the video!</span></span></p><span style="font-family: inherit; font-size: medium; text-align: left;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Those old ones need more love.</span></span></p><span style="font-family: inherit; font-size: medium; text-align: left;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers! 🥂</span></span></p><span style="font-family: inherit; font-size: medium; text-align: left;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David Barnett</span></span></p></div><span style="font-family: inherit; font-size: medium;"><br /></span><span style="font-family: Arial, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-79126510893576275822024-01-24T09:00:00.001-04:002024-01-24T09:00:00.145-04:00Businesses that ARE real estate<p> </p><div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/a-nFc0riJZc?si=ZuvS0J65F-BISylE" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-004ad2c2-7fff-753d-2731-987e6fc22ebd"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In the world of small business investing, we try to separate operating businesses from real estate because the assets are different and are valued in different ways.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">But what if the business IS Real Estate?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Marinas, campgrounds, Bed & Breakfasts, motels, etc?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">What different considerations are in place and how do we know we’re making an offer that makes sense?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video here: </span><a href="https://youtu.be/a-nFc0riJZc" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/a-nFc0riJZc</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-39794905782668281122024-01-22T13:00:00.011-04:002024-01-22T13:00:00.128-04:00Live Big Brand Output- Small Business Budget with Jaci Russo<div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/ld7aqigjpNM?si=LtCizlcOg3A37GNY" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-dd90f25e-7fff-00ce-9f26-a650a80ee78a"><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Big Brand Output- Small Business Budget</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">New Livestream guest-> Jaci Russo</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">I’m happy to have Jaci join me on a live broadcast.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Jaci has decades of experience working with companies to craft the right branding and implement strategic plans to make sure this brand works its way into every level of the organization.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">In particular, she’s worked with many small businesses through the Brand State U project.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Tune in and as we’ll be discussing rebranding after an acquisition, Strategic Branding Plans and Rebranding a Holdco.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">This is a ‘must see event’ for small business owners and those with aspirations to become one.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Be sure to join live so that you can ask questions, replay will be available.</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Set yourself a reminder on YouTube here:</span><a href="https://youtube.com/live/ld7aqigjpNM" style="text-decoration-line: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtube.com/live/ld7aqigjpNM</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">We’ll be going live Monday January 22, 2024 at 12 Noon EST and 1pm Atlantic Time</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you there!</span></span></p><p dir="ltr" style="line-height: 1.295; margin-bottom: 8pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: Calibri, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-45133546023891058272024-01-20T09:00:00.001-04:002024-01-20T09:00:00.133-04:00Navigating Private Investment Opportunities: A Real-Life Scenario<p><span style="font-family: inherit; font-size: medium;"> <span style="white-space-collapse: preserve;">Hey everyone,</span></span></p><span id="docs-internal-guid-b4e4c238-7fff-b40f-9e41-6e6c5d843639" style="font-family: inherit; font-size: medium;"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span>I remember a few years ago I had an interesting exchange with a viewer about a potential investment scenario that I believe could benefit many of you. Let's dive into it!</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p></span><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/74hZZk8be2k?si=F7RPwwZ0eX_TCKYV" title="YouTube video player" width="560"></iframe></span></div><div style="text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></div><div style="text-align: left;"><span style="background-color: white; text-align: center;"><span style="font-family: inherit; font-size: medium;">If you watch the video on YouTube, please hit the LIKE button. Old videos need new LOVE!</span></span></div><div style="text-align: left;"><span style="background-color: white; text-align: center;"><span style="font-family: inherit; font-size: medium;"><br /></span></span></div><div style="text-align: left;"><span id="docs-internal-guid-42a0d7c9-7fff-7c18-7022-919803df75b8"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Situation:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">A viewer on the West Coast shared a unique opportunity. A friend is launching a startup, armed with a solid business plan and approval for a loan from a bank. The catch? The friend needs a certain amount of cash as equity to secure the loan.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Option A: Invest the Money</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The startup entrepreneur approached the viewer with two options:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Loan $15,00 or-</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Invest $15,000 in the business.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><span style="font-family: inherit; font-size: medium;"><br /></span></li></ul><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The Dilemma:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The viewer sought advice on the pros and cons of each option and how to secure returns.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Why I'm Not a Fan of Being a Minority Shareholder:</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Business owners can manage finances in a way that leaves no net income for dividends, leaving minority shareholders with little return on investment.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The only way this might work is if the shares had some kind of defined preferred rate of return and without collateral, these are still risky.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Option B: Lend the Money:</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Considerations:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Collateral: Does the entrepreneur have any collateral to secure the loan?</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">Interest Rate: Without collateral, think of yourself as a credit card. Be cautious and consider a higher interest rate.</span></span></p></li></ul><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">My Advice on Interest Rates when putting your money into these kinds of deals:</span></span></p><ul style="margin-bottom: 0; margin-top: 0; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">For secured loans: Prime plus a few points.</span></span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-wrap: wrap; vertical-align: baseline;"><span style="font-family: inherit; font-size: medium;">For unsecured loans: Consider the risk and go for higher rates, similar to credit card rates.</span></span></p></li></ul><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Risk Mitigation: </span></span><span style="font-family: inherit; font-size: large; white-space-collapse: preserve;">If possible, secure collateral for a Plan B in case the business doesn't succeed.</span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">A Personal Touch: </span></span><span style="font-family: inherit; font-size: large; white-space-collapse: preserve;">For more significant amounts, consider involving multiple investors to share the risk and responsibility.</span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Investing or lending to startups involves risk, and understanding your position is crucial. </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Remember, the success of a startup depends on various factors, and having a backup plan is wise.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">If you’d like to watch the video I made about this or download a </span><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;">10 step checklist</span><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> here: </span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: inherit; font-size: medium;"><a href="https://drive.google.com/file/d/18BwQC1hgRq7o0AjEdtiixSojtT_VW8-Z/view?usp=drive_link" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="4456" data-original-width="3366" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj17zSlYciZgtWyoeXG4NdvZf_qJkdu4PfI9sH1foHkTgQrLc8o8VERogJun0rNmkzeYwDuvdh9aNO_Aq4Wa-wUE-Yz7rmZaM-NBTpAXmyWrvL3Bzpv6yxCqva5P1c_iv7udpTb6Tezn0lp6Yt2QTDw0zLEkmVY1JmApS2e6HXhjPiVeZDDdnSOygC59q4/w133-h176/pdf%20download%20img.jpeg" width="133" /></a></span></div><span style="color: #2288bb; font-family: Trebuchet MS, Trebuchet, Verdana, sans-serif;"><a href="https://drive.google.com/file/d/18BwQC1hgRq7o0AjEdtiixSojtT_VW8-Z/view?usp=sharing"><span style="background-color: white; font-size: 14.6667px; white-space-collapse: preserve;">Download free resources here: </span><span style="font-size: 14.6667px; white-space-collapse: preserve;"><b><i>Navigating Investment Decisions - Loan vs. Equity Check list</i></b></span></a></span><p></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Don’t forget to like the video!</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Those old ones need more love.</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers! 🥂</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David Barnett</span></span></p><div><span style="font-family: Arial, sans-serif; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0tag:blogger.com,1999:blog-7730891496133177173.post-76625788400796453522024-01-17T09:00:00.001-04:002024-01-17T09:00:00.131-04:00Profit Splits to Pay back an Investor<p> </p><div style="text-align: center;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/wt3pPN915GA?si=qCaz725yHPSscy8k" title="YouTube video player" width="560"></iframe></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span id="docs-internal-guid-62b7e0cf-7fff-2bb8-a420-c66bcc288711"><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">***New Video Alert!</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Charan wants to bring in an investor to help buy a business.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">The investor wants their money back in 2 years.</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">So, how much of the profits should he commit to repayment of this investment?</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-family: inherit; font-size: medium;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;">Watch this week’s video to see all the red flags this question seems to reveal: </span><a href="https://youtu.be/wt3pPN915GA" style="text-decoration-line: none;"><span style="color: blue; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space-collapse: preserve;">https://youtu.be/wt3pPN915GA</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"> </span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">Cheers</span></span></p><span style="font-family: inherit; font-size: medium;"><br /></span><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">See you over on YouTube</span></span></p><p dir="ltr" style="line-height: 1.3800000000000001; margin-bottom: 10pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><span style="font-family: inherit; font-size: medium;">David C Barnett</span></span></p><div><span style="font-family: "Times New Roman", serif; font-size: 12pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></span></div></span></div>Erica Pariñashttp://www.blogger.com/profile/08244576505761405282noreply@blogger.com0