Live Buying and running a construction company. with John Hannum

 

Buying and running a construction company.

New Livestream guest- John Hannum

I’m happy to have John join me on a live broadcast.

He’s got tons of experience in the construction and trades industries as a corporate C-suite level employee and CFO.

Tune in and as we’ll be discussing buying and running construction companies.

This is a ‘must see event’ for anyone who is interested in construction or project-related businesses.

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/eSxYaoKxL9c 

We’ll be going live Monday March 31, 2025 at 1 PM Atlantic Time and 12 Noon Eastern Time

See you there!

David C Barnett

How to Handle Unresponsive Business Sellers: A Buyer’s Guide

 I had an interesting conversation with a client of mine who’s been frustrated while dealing with a business seller who isn’t giving him the necessary information. Let me break down the situation and offer insights on how buyers can handle unresponsive sellers. https://youtu.be/BwNY7cpSZhI 

Understanding the Situation

My client is interested in purchasing a business, and he has been in discussions with the seller. However, the seller isn’t represented by a broker and is handling the process independently. The buyer requested financial statements and other documents—but since then, nothing has happened. No information has been provided, and my client is left waiting. So what’s going on?

What’s on the Seller’s Mind?

It’s important to understand why someone sells a small business. In many cases, owner-managed businesses are deeply connected to their owners’ personal lives. The top reasons people sell businesses include:

• Boredom and burnout

• Divorce

• Poor health

• Relocation

• Retirement

Many of these reasons are emotionally driven. A seller may initially feel compelled to sell, but as time passes, the urgency diminishes. Additionally, if the business is profitable, delaying the sale means continued income, reducing the incentive to act quickly.

Furthermore, selling a business isn’t their primary job—running it is. This means responding to buyers often takes a backseat to daily operations. External factors like tax season or vacation schedules can also slow things down.

What Buyers Should Do in This Situation

If you’re a buyer dealing with an unresponsive seller, here are some strategies to handle the situation effectively:

1. Avoid excessive follow-ups – If you call weekly, the seller might perceive you as overly eager, weakening your negotiating position. Instead, switch to a monthly email reminder.

2. Express interest in other opportunities – Let the seller know you’re looking at multiple businesses. This creates a sense of urgency on their end without making you seem desperate.

3. Be patient – The process can take months, sometimes over a year, to get all the necessary documentation. Rushing or showing frustration won’t help.

4. Stay logical – It’s easy to get “buyer fever” and imagine yourself owning the business before you even have the financials. Take a step back and analyze everything objectively.

For Sellers: How to Avoid This Mistake

If you’re selling a business, the best way to avoid frustrating potential buyers is to be prepared before listing it. You should:

• Have financial statements and necessary documents ready.

• Be responsive to buyers’ inquiries.

• Understand that delaying responses can lead to lost opportunities.

If you need guidance on selling your business the right way, visit howtosellmyownbusiness.com.

Resources for Buyers

For buyers looking to analyze deals and negotiate effectively, check out businessbuyeradvantage.com.

Join my email list at DavidCBarnettList.com and get 7 FREE gifts! Thanks for reading, and I’ll see you next time!

12 Pricing Strategies for a Service Business

 

***New Video Alert!

A fantastic conversation with a thoughtful wedding planner prompted this video.

How can a service business maximize revenue and sell all of their capacity?

We explore the strategies in this week’s video…

Check it out right here: https://youtu.be/oh7Gd-llnRU 

Cheers

See you over on YouTube

David C Barnett

Premiere - SBA 504 Green Loans with Guest Sol Rosenbaum

 YouTube Premiere - SBA 504 Green Loans

New Premiere guest- Sol Rosenberg

I’m happy to have Sol join me on a recorded session.

Sol is an energy engineer.

Tune in and as we’ll be discussing the SBA’s 504 Green loan.

It’s a variation on the normal 504 loan for buildings and big items of machinery.

This is a ‘must see event’ for American entrepreneurs who want to access more funding as the normal limits to the 504 program just don’t apply to the green loans!

Be sure to join live so that you can ask questions.

Set yourself a reminder on YouTube here: https://youtu.be/Uakzs3xCsqw

YouTube Premiere will be going live Monday March 24, 2025 at 1:00 PM Atlantic Time and 12 Noon Eastern Time

See you there!

David C Barnett

How to Buy a Business with No Money: The Truth Behind No-Money-Down Deals

 The idea of buying a business with no money is a popular topic, especially on YouTube and various business forums. Many aspiring entrepreneurs want to know if it’s truly possible to acquire a business without any financial investment. While some claim that it’s easy, the reality is far more complex. In this blog, we will explore the actual ways a business can be purchased with little to no money and the risks involved. https://youtu.be/NVTgDT7Cc2g 

Understanding What "No Money Down" Really Means

Buying a business with no money can mean different things. Does it mean you don't pay anything upfront on closing day? Or does it mean you get the business entirely for free? In most cases, these deals involve vendor financing, where the seller finances a portion (or all) of the purchase price and the buyer repays over time.

While 100% vendor financing is possible, it usually happens under specific conditions. For instance, a seller may agree to finance the deal if they believe the business can improve under new ownership or if they are struggling to sell it in a conventional manner.

Examples of "No Money" Business Acquisitions

1. Vendor Financing (Seller Financing):

• The seller agrees to receive payments over time instead of requiring cash upfront.

• Example: A buyer takes over a motel with 100% financing from the seller, but uses personal cash to renovate the property and later refinances with a bank loan.

2. Using Personal Assets as Collateral:

• A buyer may not use cash but can leverage their home or other assets to secure a loan.

• Example: Someone uses their home as collateral to obtain a business loan.

3. Buying an Insolvent Business:

• If a business is financially struggling, an owner may be willing to give it away just to offload liabilities.

• Example: A business owner with too much debt offers the company for free if the buyer assumes the debt.

The Risks of Buying a Business with No Money

While acquiring a business with no upfront cash sounds appealing, it comes with significant risks:

• Lack of Operating Capital: Even if you don’t pay upfront, businesses need capital for inventory, payroll, and operational expenses.

• Debt Assumption: Taking over an insolvent business means assuming its financial problems. If it’s failing, can you realistically turn it around?

• Potential Scams: Some sellers may try to offload a failing business under the guise of a “no-money-down” deal.

• Personal Guarantees: If financing is involved, you may need to personally guarantee loans, putting your assets at risk.

The Right Approach to Buying a Business

If you’re serious about acquiring a business, the best approach is to build financial discipline and savings. Here are some strategies:

• Save Money: Having savings shows financial responsibility and allows you to negotiate better deals.

• Leverage Small Business Loans: Local economic development agencies often provide small loans to entrepreneurs, which can be used to secure larger financing.

• Look for Creative Financing Options: Consider partnerships, investor funding, or earn-out deals where the seller gets paid from future profits.

Final Thoughts

The reality is that successful businesses are rarely given away for free. If a seller is offering 100% financing, it’s crucial to understand why. Is the business unprofitable? Is there a hidden risk? Instead of focusing on “no money down,” aspiring entrepreneurs should focus on acquiring skills, financial discipline, and funding sources to make smart business purchases.

Be sure to join my email list for exclusive tips and receive 7 FREE gifts at https://www.DavidCBarnettList.com.

The idea of buying a business with no money is a popular topic, especially on YouTube and various business forums. Many aspiring entrepreneurs want to know if it’s truly possible to acquire a business without any financial investment. While some claim that it’s easy, the reality is far more complex. In this blog, we will explore the actual ways a business can be purchased with little to no money and the risks involved. https://youtu.be/NVTgDT7Cc2g 

Understanding What "No Money Down" Really Means

Buying a business with no money can mean different things. Does it mean you don't pay anything upfront on closing day? Or does it mean you get the business entirely for free? In most cases, these deals involve vendor financing, where the seller finances a portion (or all) of the purchase price and the buyer repays over time.

While 100% vendor financing is possible, it usually happens under specific conditions. For instance, a seller may agree to finance the deal if they believe the business can improve under new ownership or if they are struggling to sell it in a conventional manner.

Examples of "No Money" Business Acquisitions

1. Vendor Financing (Seller Financing):

• The seller agrees to receive payments over time instead of requiring cash upfront.

• Example: A buyer takes over a motel with 100% financing from the seller, but uses personal cash to renovate the property and later refinances with a bank loan.

2. Using Personal Assets as Collateral:

• A buyer may not use cash but can leverage their home or other assets to secure a loan.

• Example: Someone uses their home as collateral to obtain a business loan.

3. Buying an Insolvent Business:

• If a business is financially struggling, an owner may be willing to give it away just to offload liabilities.

• Example: A business owner with too much debt offers the company for free if the buyer assumes the debt.

The Risks of Buying a Business with No Money

While acquiring a business with no upfront cash sounds appealing, it comes with significant risks:

• Lack of Operating Capital: Even if you don’t pay upfront, businesses need capital for inventory, payroll, and operational expenses.

• Debt Assumption: Taking over an insolvent business means assuming its financial problems. If it’s failing, can you realistically turn it around?

• Potential Scams: Some sellers may try to offload a failing business under the guise of a “no-money-down” deal.

• Personal Guarantees: If financing is involved, you may need to personally guarantee loans, putting your assets at risk.

The Right Approach to Buying a Business

If you’re serious about acquiring a business, the best approach is to build financial discipline and savings. Here are some strategies:

• Save Money: Having savings shows financial responsibility and allows you to negotiate better deals.

• Leverage Small Business Loans: Local economic development agencies often provide small loans to entrepreneurs, which can be used to secure larger financing.

• Look for Creative Financing Options: Consider partnerships, investor funding, or earn-out deals where the seller gets paid from future profits.

Final Thoughts

The reality is that successful businesses are rarely given away for free. If a seller is offering 100% financing, it’s crucial to understand why. Is the business unprofitable? Is there a hidden risk? Instead of focusing on “no money down,” aspiring entrepreneurs should focus on acquiring skills, financial discipline, and funding sources to make smart business purchases.

Be sure to join my email list for exclusive tips and receive 7 FREE gifts at https://www.DavidCBarnettList.com.

Canada small business financing act loans

 

***New Video Alert!

Yes, there is a government loan program.

We explore it in detail in today’s video for people doing a business purchase in Canada.

Check it out right here: https://youtu.be/GkLikvZDFQc 

Cheers

See you over on YouTube

David C Barnett

Turning a Business Sale into a Retirement Annuity: A Win-Win Deal

When selling a business, most entrepreneurs focus on securing the highest possible price at closing. However, as one seasoned business owner demonstrated, seller financing can sometimes be the smartest financial move—benefiting both the buyer and the seller.https://youtu.be/rkdB8eLl6Xw

The Challenge: Selling a Business with Excess Land

As a business broker, I encountered a unique challenge: a business for sale that included over 100 acres of land. The problem? Only a small portion of the land was essential for business operations, meaning that the additional acreage inflated the asking price without contributing to the company's cash flow.

The seller, a 78-year-old entrepreneur, had dedicated his life to building the business but had little in the way of retirement savings. While he owned his home, he also carried some personally guaranteed business debts.

The Offer and an Unexpected Counteroffer

A potential buyer made an offer of $350,000, requesting the seller to finance half the amount ($175,000). But instead of simply accepting or declining, the seller countered with a surprising proposal: he would sell the business for $450,000, requiring only $100,000 down while financing $350,000 over 10 years at an incredibly low 2% interest rate.

This strategy was highly unconventional—typically, sellers aim to finance less, not more. However, the low interest rate made the deal irresistible to the buyer. Initially planning to cap his offer at $400,000, the buyer realized that with seller financing at just 2%, this deal was more affordable than traditional bank financing. The transaction was finalized.

The Seller’s Smart Retirement Strategy

After closing the deal, the seller explained his reasoning:

• Steady Retirement Income – Instead of receiving a lump sum that would earn less than 1% in a savings account, he secured a structured income stream over the next decade.

• Low-Risk Financing – The business’s valuable land, equipment, and buildings served as collateral, making the note relatively secure.

• A True Win-Win – The buyer gained affordable financing, while the seller effectively transformed his business sale into a reliable retirement annuity.

The Power of Creative Seller Financing

This deal highlights an important lesson: creative financing options can be mutually beneficial. If you’re considering buying or selling a business, understanding seller financing can lead to better outcomes for all parties involved.

Be sure to join my email list for exclusive tips and receive 7 FREE gifts at https://www.DavidCBarnettList.com.

How old should a business be before it is mature

 

***New Video Alert!

Would you buy a business that was one year old?

How about 10?

Where is the right age until we can be sure it’s likely going to last, especially under a new owner?

Let’s take a look in this week’s video: https://youtu.be/2GqBGLo9rrM 

Cheers

See you over on YouTube

David C Barnett

Premiere - Jed Morris Learning from Failed SMB purchase transactions

Learning from Failed SMB Acquisition Deals

New YouTube Premiere guest- Jed Morris.

I’m happy to have Jed join me on a live broadcast.

Jed went from being a searcher to a suddenly excited rollup investor.

Then, things went very bad.

AND- he can’t discuss it!

Tune in and as we’ll be discussing Jed’s new book about the common reasons why small business buyers fail and why he can’t talk about the reasons surrounding his own business closure and bankruptcy.

This is a ‘must see event’ for anyone looking to buy a business.

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

Set yourself a reminder on YouTube here:  https://youtu.be/QVt2b7Jt1PA 

YouTube Premiere We’ll be live Monday March 10, 2025 1PM Atlantic Time and 12 Noon Eastern Time

See you there!

David C Barnett