***New Video Alert!
Your lawyer, accountant and other professionals work for you to get the best deal and protect your interests.
Right?
But, are you sure?
The very dangerous world of conflicted interests in this week’s video: https://youtu.be/MwJWD52Byjw
Cheers
See you over on YouTube
David C Barnett
This week’s question comes from a buyer who was trying to get financing for a business purchase. But the banker came back with two tough comments:
“The business is overpriced, and your Debt Service Coverage Ratio (DSCR) doesn’t work.”
Naturally, the buyer wants to know: Should I try another bank?
Let’s unpack what the banker really means and how to make your next move a smart one. https://youtu.be/Q1yOzL73zCoThis is one of the smartest strategies in the business acquisition world. Here’s why:
When a business gets listed with a broker, two things happen:
Competition surges — multiple buyers show up, and
Prices rise — often beyond what a savvy buyer wants to pay.
That’s great for sellers. But for buyers? It’s an uphill battle.
Instead, what if you could build relationships with owners before they ever consider selling? That’s where the real opportunity lies.
If you want to find quality businesses at fair valuations, you need to show up before the “For Sale” sign goes up. Here’s how to do it right:
Before you approach anyone, you need to be clear about what you want.
Ask yourself:
What industries interest me?
What skills and experience do I bring?
What’s my ideal role as an owner?
Do I want something owner-operator or hands-off?
This self-assessment helps narrow your focus and makes your outreach much more credible.
Next, define your buying power:
How much capital do you have?
What kind of financing can you secure?
What’s the minimum income you need from the business?
This determines the size and structure of the businesses you should pursue.
With your filters in place, start researching businesses that:
Fit your chosen industry and size
Operate in your geographic area (unless you're open to relocation)
Have owners who may be nearing retirement or looking to slow down
Appear stable but may lack clear succession planning
This is where tools like LinkedIn, Google Maps, local trade associations, and business directories come in handy.
This is not a sales pitch.
It’s an introduction.
Reach out by email, letter, or even an old-fashioned phone call. Say something like:
“Hi, my name is [Your Name]. I’ve been researching businesses in [industry], and I came across yours. I admire what you’ve built. I’m exploring business acquisition as my next career move, and if you’re ever open to a conversation—now or in the future—I’d love to connect.”
Keep it low-pressure. You’re building rapport, not making an offer.
Most business owners won’t reply with:
“Funny you should ask, I've been dying to sell!”
But here’s what can happen:
They remember you
Time passes
Life events occur (health issues, burnout, family needs, etc.)
You become the person they reach out to first
No broker. No bidding war. Just you and the seller, having an open, private conversation.
This approach isn’t about quick wins. It’s about building a pipeline of future opportunities. When others are chasing listings, you’re building relationships.
That’s why in my 12-step coaching program, we teach exactly this process:
How to define your criteria
How to assess your buying power
How to find and qualify target businesses
How to craft outreach messages
How to follow up and stay top-of-mind
It’s a discipline but it works.
If you want to be taken seriously by a business owner before they’ve even considered selling, you need to:
Show up early
Show genuine interest
Stay in touch without pressure
This is how the best deals are found not on websites or broker listings, but in private, well-timed conversations that you created.
Explore free tools, guides at www.BusinessBuyerAdvantage.com
Don’t forget—join my email list for early access to my latest videos and insights at DavidCBarnettList.com. You’ll even receive 7 FREE gifts when you sign up.
– David C. Barnett
***New Video Alert!
Today, how business buyers are NOT consumers.
Don’t be naĆÆve and expect government rules to apply to you.
Here’s how you protect yourself and how some have been had.
I’ll tell you what I really think in this week’s video: https://youtu.be/MosMaS9eBTQ
Cheers
See you over on YouTube
David C Barnett
Avoid Investment Fraud
New Livestream guest- Timothy L. Smith
I’m happy to have Tim join me on a live broadcast.
Tim has decades of experience helping people with their investments.
Tune in as we’ll be discussing fraud, bad investments and really dumb investment choices.
This is a ‘must see event’ for anyone who doesn’t want to get ripped off or robbed.
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/lgalgxSAJi0
We’ll be going live Monday July 21, 2025 at 1 PM Atlantic Time and 12 Noon Eastern Time
See you there!
David C Barnett
…And why the real problem wasn’t the zoning.
Today, I want to share a horrifying story that starts with a sneaky zoning change… but ends with a hard truth about business ownership that way too many entrepreneurs ignore. https://youtu.be/lwORvoJ_xeY
I got a call from a guy who owns a small manufacturing business. He’s been at the same location for over 30 years. Back then? His shop was in the country.
Today? Residential neighborhoods have grown all around him.
One day, he finds out the city quietly changed the zoning on his property—from industrial to residential—without ever notifying him.
Now that he needs a mortgage to unlock capital from his building, the bank refuses. Why? Because if anything happens—like he sells or the bank forecloses—the property can’t legally be used for industrial purposes anymore.
He’s furious. He calls me to vent.
As always, I ask:
“Why do you need the loan?”
To buy inventory in bulk and improve margins.
“What were your sales last year?”
“I don’t know.”
“How much do you take out of the business?”
“Well, I will reinvest everything.”
š©Red flags everywhere.
Let me be blunt: Business owners who don’t know their numbers are usually avoiding them. And in my experience, that avoidance is almost always masking a bigger issue.
I dig deeper. His business sells only to governments.
Every job is awarded by tender. It’s always about being the lowest bidder.
He’s trapped in a race to the bottom.
And he thinks he’s “building his business” by leaving all the money in… except the business now can’t afford to pay him, and it’s not worth anything to anyone else either.
When I asked what made the business valuable, his answer?
“I own the building.”
Guess what? That building just lost its core utility. And no, it's not valuable if it can’t legally support the use it was built for.
It’s not about zoning.
It’s about running a business that can’t pay its owner.
And here’s the brutal truth I gave him:
“They actually did you a favor. If your business made real money, you’d move it or sell the land. But you can’t—because the business doesn’t work.”
He thought he was building wealth.
In reality, he’d created a job that didn’t pay, while the city and taxpayers got cheap products on his dime.
A business is not a piggy bank.
It's not a retirement plan.
It's not a hobby disguised as hard work.
It’s a system to combine people + place + capital into one thing:
š Cash flow for you.
If it’s not producing cash for you today?
It’s time to fix it—or kill it.
✅ Just because you own a building doesn’t mean you own value.
✅ Your business must pay you today—or it’s a hobby.
✅ Avoiding your numbers is a warning sign.
✅ Leverage cheap money, don’t worship being debt-free.
✅ "I'm reinvesting everything" is often code for "I'm afraid to look at the truth."
Don’t forget—join my email list for early access to my latest videos and insights at DavidCBarnettList.com. You’ll even receive 7 FREE gifts when you sign up.
– David C. Barnett
***New Video Alert!
Today, I address simplistic advice from an article likely written by an AI.
Should you run from these common deal problems?
-Lack of documentation
-Excessive add-backs
-Uncooperative sellers
I’ll tell you what I really think in this week’s video: https://youtu.be/E5AqdO2C3Ew
Cheers
See you over on YouTube
David C Barnett
