The Surprising Truth About Investing in Golf Courses

 

***New Video Alert!

Ever wondered if golf courses really make money or if they’re just expensive pieces of land?

In this new video, I dig into a real question from a viewer who owns a golf course and isn’t sure whether he’s selling property or profit. 

If you’re thinking about buying, selling, or investing in a golf course, you’ll want to see this.

Watch now: https://youtu.be/aAYtEE6woA8 

See you on YouTube

Cheers

David C. Barnett

Don’t Pitch Investors Without a Plan: Why Preparation Matters More Than Enthusiasm

I remember years ago, I met with a gentleman who believed he had a promising business opportunity tied to a piece of land. He had already borrowed money against the property, and now he was hoping to attract investors to pay off his debt and help him launch his idea.

On the surface, this might sound like the beginning of a great entrepreneurial journey. But there was one big problem: he had no plan. https://youtu.be/w0pJN4QB6Jk 

The Investor’s Checklist

If you’re seeking outside capital, investors want to know four simple things:

1. How much money do you need, and what will it be used for?
   
   

2. What’s the worst-case scenario, and what’s your Plan B?
   
   

3. What kind of return or cash flow can they expect?
   
   

4. How secure and sustainable is that return?
   
   

If you can’t answer these clearly, you’re not ready to pitch.

The Danger of Going Out Too Soon

In this case, the entrepreneur couldn’t answer basic questions like:

• What equipment do you need?
  
  

• What are your expected sales and terms of payment?
  
  

• How long will it take customers to pay you?
  
  

He assumed everyone would pay in cash—yet his market (the construction industry) typically runs on progress payments and holdbacks. That means he could be waiting 90–120 days to collect. Without a sales forecast, he had no idea how much capital he would need to finance receivables.

If he rushed out to pitch with this half-baked story, he’d risk burning bridges with the very few people in his network capable of writing six-figure checks. Once you make a poor first impression, it’s much harder to come back later with a polished plan.

Build a Plan for You, Not Just the Investor

Too many entrepreneurs treat business plans like marketing documents—something designed to convince banks or investors. That’s a mistake.

The real purpose of a business plan and cash flow forecast is to show you whether the business is actually viable. If the numbers don’t make sense on paper, they certainly won’t work in real life.

Creating rosy projections without a foundation in reality isn’t planning—it’s salesmanship. At best, you’ll waste time. At worst, you’ll come across like a con artist.

The Bottom Line

Before you ever approach investors, make sure you can clearly answer the four questions above. Build a plan, test your assumptions, and stress-test your numbers.

When you finally do sit down with potential investors, you want to look prepared, professional, and credible. That way, your enthusiasm will be backed by a solid story that makes sense—not just excitement and hope.

If you’re serious about buying or selling small businesses, check out: My Business Buyer Advantage course at BusinessBuyerAdvantage.com

👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.

Why Goodwill Matters When Buying A Business

 

***New Video Alert!

Everyone loves a bit of good cheer, but what exactly is Goodwill?

This week, some basic terminology and how it’s often misused when people are talking about buying and selling businesses.

Check it out in this week’s new video: https://youtu.be/p_F_OJt-iLY 

Cheers

See you over on YouTube

David C Barnett

#smallbusiness #mergersandacquisitions #M&A 

LIVE- Yosi Amram Spiritual Alignment in Small Business

 Yosi Amram — Spiritual Alignment in Business

New Livestream guest- Yosi Amram

We’re thrilled to welcome Yosi Amram, a thought leader deeply versed in bridging purpose and profit. In our upcoming episode, Yosi will dive into the power of spiritual alignment in business — how leaders can cultivate clarity, integrity, and inner harmony while scaling their ventures.

Together, we'll explore:

• How intuition and values can guide strategic decision-making

• Practices that foster deeper connection to one’s mission

• The role of energy, authenticity, and consciousness in leadership

• Real-world examples of entrepreneurs who’ve transformed their businesses from the inside out

If you’re curious about weaving spirituality into your daily work, and building a business that feels as meaningful as it is successful — don’t miss this conversation. Stay tuned!

Be sure to join live so that you can ask questions, replay will be available.

Set yourself a reminder on YouTube here: https://youtube.com/live/tc-KZzMHdU4 

We’ll be going live October 06, 2025 at 1PM Atlantic Time and 12 Noon Eastern Time

See you there!

David C Barnett

How Many Years of Results Should You Average When Evaluating a Business?

 I got a great question from Bob the other day about evaluating businesses. Specifically:

👉 “When looking at a business, how many years of results should I average together to figure out the right numbers—three, five, or more?”

The short answer: it depends. And here’s why. https://youtu.be/2To6nl7GIuw 

Why Simple Averages Don’t Work

Many buyers want to take three or five years of sales or profits, average them, and use that as the baseline for valuation.

The problem? A company three, four, or five years ago may be very different from the company today. Markets change, customer bases shift, management evolves, and growth (or decline) can dramatically alter performance.

That’s why I prefer weighted averages, with the most weight placed on the most recent year.

1. The Growing Company Example

Imagine a business that’s been consistently growing year after year.

In this case, the most recent year tells you the most about how the business is performing today. I’d weigh it heavily—say 50% on the latest year, maybe 20% on the prior year, and smaller percentages on the earlier years. If you have a reliable forecast and you’re already into that new year, you might even give it some weight too.

Key takeaway: A company with steady growth deserves more weight on the latest results.

2. The Declining Company Example

Now, flip the script: sales and profits have been dropping year after year.

If you’re the seller, you’ll want to argue for averaging several years to make things look stronger.
If you’re the buyer, you should weigh the most recent year much more heavily—maybe 85% current year, 15% forecast—because that declining trend is the reality.

And before you even crunch numbers, ask: Why are sales falling? Is it poor management you can fix, or is the industry itself in decline (think video rental stores after streaming)?

Key takeaway: Always pay for what the business is today, not what it was in the past.

3. The Uncertain Trend Example

Some businesses bounce up and down without a clear trajectory. Maybe it’s seasonal (like a ski resort tied to snowfall) or cyclical.

Here, I’d still weight the most recent year the most (say 60%), but sprinkle in more from prior years to account for variability.

Key takeaway: The latest year still matters most, but past fluctuations give context.

4. The Rapid Growth Example

Finally, what if the business is growing explosively—30%, 50%, even 100% year-over-year—thanks to unique products or intellectual property?

In this case, the company today looks nothing like the company even two years ago. I’ve worked on deals where we weighted 80% to the latest year and 20% to the forecast, with the understanding the valuation would need to be updated frequently as the business kept changing materially.

Key takeaway: Explosive growth businesses get valued mostly on the here-and-now, and they’ll often command a premium multiple.

So, what's the Rule of Thumb?

I never simply average three or five years. Instead, I:

• Weight the most recent year most heavily,
  
  

• Consider forecasts if reliable, and
  
  

• Reduce weight as you go back in time.
  
  

Because ultimately, what matters is:

• How the business operates today,
  
  

• What it’s likely to do in the near future, and
  
  

• Whether its trajectory is up, down, or uncertain.

Learn More

If you’re serious about buying or selling small businesses, check out: My Business Buyer Advantage course at BusinessBuyerAdvantage.com

👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.

What If Your Resume Could Help You Buy a Business?

 

***New Video Alert!

Forbes magazine shares a secret that increases your odds of getting an interview by 115%.

AND- it applies directly to those looking to buy a business as well.

Check it out in this week’s new video: https://youtu.be/5Nt8QvY1hX4 

Cheers

See you over on YouTube

David C Barnett

#smallbusiness #mergersandacquisitions #M&A 

PREMIERE- Brandon & Amanda Neely Small Biz owner wealth planners

 

From Barista to Wealth Planners for Small Business Owners

New Interview guest- Brandon & Amanda Neely CFP.

I’m happy to have The Neeley’s join me for a one-on-one interview!

They’ve got experience running a small business just like yours or the one you might run one day.

Tune in and as we’ll be discussing the story of tragedy in their business, how they recovered and what they learned from my latest book.

This is a ‘must see event’ for anyone who owns or will own a business one day.

Set yourself a reminder on YouTube here: https://youtu.be/1H4uPZ9r1s0 

It will be going live Monday September 29, 2025 at 1 PM Atlantic Time 12 Noon Eastern Time

See you there!

David C Barnett

How I Became a Broker (and What Small Business Owners Need to Know About Bank Loans)

 I recently had an email exchange with Chris in California who asked me about my life before I started doing private investment deals. His question sparked some memories and stories I thought would be useful to share here. https://youtu.be/uyJP7yb70hE

From Yellow Pages to Entrepreneurship

After finishing university, I began my career in outside sales with the Yellow Pages. Eventually, I left and started a small business with a friend, which I ran for nearly two years before selling.

After that, I became a commercial debt broker. I took a training seminar in Toronto with a California company called The Loan Consultants. They taught me how to:

• Package loan applications properly,
  
  

• Structure equipment leases (both capital and operating),
  
  

• Prepare commercial mortgage applications, and
  
  

• Arrange factoring facilities (selling receivables for immediate cash).
  
  

That training gave me the technical foundation to step into the world of financing.

How I Marketed My Services

This was 2005, and while I used the internet, I didn’t leverage it the way I do today. Instead, I created a mailing list—yes, actual postal mail!—and targeted financial planners, commercial bankers, accountants, and business-focused lawyers.

Every two months, I mailed out letters highlighting deals I had completed. For example: “I helped finance kitchen equipment for a restaurant.” These success stories generated phone calls and referrals.

Why Bankers Were My Best Referral Source

Interestingly, my biggest referral source turned out to be bankers. Here’s why:

When a small business owner asked their bank for a loan and got declined, they often risked taking all their accounts—savings, mortgages, investments, business banking—to another institution.

To prevent losing the relationship, many bankers referred those clients to me. They knew I could place the deal with a leasing company or alternative lender—without threatening their other business.

A Big Misconception About Bank Loans

Most small business owners believe their banker makes the lending decision. The truth? At large national banks, loan officers are salespeople. Their job is to bring in deals, not approve them.

If a banker believes in your project, they’ll sell it “upstream” to underwriting. But if you’re disorganized, lack projections, or can’t clearly explain how the loan will improve your business, they won’t waste time fighting for your file. They have quotas to hit.

My Role as a Broker

Many clients told me they were “declined by the bank.” I’d ask, “Did you actually submit a formal application, or did the banker just say no?”

Usually, the banker had just brushed them off. In those cases, I would:

• Create a professional loan package,
  
  

• Include resumes, business history, cash flow projections,
  
  

• Show exactly how the funds would increase revenue, reduce costs, or improve capacity, and
  
  

• Demonstrate how the bank would get repaid.
  
  

About 75% of the time, I could take the same client back to the very same bank—and over half of those files ended up approved.

The difference wasn’t the business. It was a presentation.

The Lesson for Small Business Owners

Most entrepreneurs know how to run their businesses, but many don’t know how to present their case in a way that lenders can understand. That gap was my job to fill as a broker, and it taught me what lenders are really looking for.

It also gave me the confidence to later start doing my own private deals.

👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com  for early access to videos, insights, and 7 free bonus gifts.