***New Video Alert!
You’re buying a business?
Spend some time investigating these three things.
If there’s something being hidden from you, these will likely reveal clues to help you track down real problems.
Watch this week’s video here: https://youtu.be/Kga6ighe8oE
Cheers
See you over on YouTube
David C Barnett
Borrowing if your business is unbankable.
New Livestream guest- Marshall Lebovitz
I’m happy to have Marshall join me on a live broadcast.
He’s got a decade of experience getting loans for businesses that are not welcome by banks!
Tune in and as we’ll be discussing financing fixed assets and operating capital.
This is not acquisition financing typically, but borrowing for cash-starved companies that can’t qualify with banks.
This is a ‘must see event’ for anyone in a small business who might be feeling a credit squeeze or who can’t get a call returned by a lender.
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/XpFjLqyOfE8
We’ll be going live June 23, 2025 at 1PM Atlantic Time and 12 Noon Eastern Time
See you there!
David C Barnett
Chris works in the construction trade and recently reached out with a timely question.
He's been talking with the owner of the company he works for about potentially buying the business. They’ve agreed to wait until February—when things slow down in the construction season—to really dig into the conversation. In the meantime, Chris wants to know:
“What kind of prep work can I be doing now to get ready?”
Great question, Chris—and it’s one I hear often. https://youtu.be/wowZG3yFqLkChris mentioned that he’s already been brainstorming ways to expand the business—new services, product lines, or work types. This instinct is natural (and exciting). But here’s a big caution flag I need to wave:
Be careful not to get “buyer fever.”
When you start imagining all the amazing things you’ll do after you buy the business, it’s easy to become emotionally attached to the idea of ownership. This can cloud your judgment, reduce your willingness to negotiate, or make you overlook red flags.
Before you fantasize about growth strategies or operational tweaks, your energy is much better spent learning the process of buying a business—the mechanics, the risks, the legal pitfalls, and the financial analysis skills you'll need.
You already know construction. But how much do you know about:
Negotiating a deal structure?
Doing proper due diligence?
Evaluating working capital and cash flow?
Managing post-sale liability?
If your answer is “not much,” that’s exactly where your focus should be.
There’s another danger in going too deep on growth planning before you’ve bought the business.
You may start thinking, “Why don’t I just start something from scratch?”
Big mistake.
One of the biggest reasons to buy a business is to avoid the risk of start-ups.
Established businesses come with revenue, staff, systems, and—importantly—customers. Don’t trade that for a dream that might not get off the ground.
Here are a few smarter ways to spend your prep time:
Take a course (like my Business Buyer Advantage) or read up on real-world acquisition stories.
Reach out to others who’ve bought construction businesses. Learn what they wish they knew beforehand.
Construction businesses often come with long-tail risks:
Workplace safety claims
Warranties on past work
Workers' comp exposure
Environmental or permit issues
If you’re considering a share purchase, you need to understand what liabilities might follow you post-sale. A good lawyer and accountant are crucial here.
One tricky balance in construction is that a business’s history can be both an asset and a liability.
It may help with bonding eligibility and access to government contracts.
But it can also mean you inherit risks you didn’t create.
Chris, you're already ahead by asking the right question. The key now is to use your time wisely and stay grounded in the real purpose of buying a business:
To acquire something that works today—not just something with future potential.
If you’re in Chris’s position—or thinking about buying any kind of business—head over to www.BusinessBuyerAdvantage.com to check out the Business Buyer Advantage online course. It’s the same material I cover in my live seminars, condensed into nine hours of actionable, real-world instruction.
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.
Thanks for reading—and if you’ve got your own question about buying or selling a business, send it my way!
– David Barnett
***New Video Alert!
I met with a fantastic group of young professional women who were interested in building wealth.
Their big question- Can you invest in small businesses and produce a passive income like real estate or a stock portfolio?
Big question!
I dig into it this week and let you know what I think and also what considerations you would need to make if you ever thought you wanted to try this.
Watch this week’s video here: https://youtu.be/kQCfKa-GKA4
Cheers
See you over on YouTube
David C Barnett
Business Systems Pro Shares her 8-step framework.
New Livestream guest-> Avi Klevit
I’m happy to have Avi join me on a live broadcast.
She has spent the last 15 years as the leader of the Business Success Consulting Group.
Tune in and as we’ll be discussing building systems and freedom in your small business.
This is a ‘must see event’ for anyone who owns a business or will one day.
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/0MM0EQOu7TQ
We’ll be going live Monday June 16, 2025 at 1 PM Atlantic Time and 12 Noon Eastern Time
See you there!
David C Barnett
Stefan recently asked a fantastic question:
“What can I do to prepare for the questions a banker will ask when I seek financing to buy a business?”
It’s a smart question—and an essential one. Whether you're new to business acquisitions or already searching for the right deal, preparation can make or break your ability to secure funding. https://youtu.be/RZt7rOhLrWo
Like any sport, success in financing comes down to practice and preparation.
You need to know two things cold:
The business you’re trying to buy.
Your plan for that business after the purchase.
This includes being ready to discuss:
Sales forecasts
Gross margin assumptions
Operational changes you plan to make
How you’ll manage cash flow and debt service
For example, if a banker asks, “Why do you think the gross margin will improve over the next two years?” you should have a clear, confident answer like:
“I plan to renegotiate supplier contracts and reduce waste, bringing my cost of sales down from 40% to 38%, which will enhance gross margin.”
The better you know these numbers—and the logic behind them—the more credible and prepared you’ll appear.
If your current circle isn’t made up of business-savvy people, it’s time to expand your network.
As Jim Rohn famously said, “You are the average of the five people you spend the most time with.”
Start connecting with like-minded individuals by joining:
Kiwanis Club or Rotary
Entrepreneurial Meetup groups
Professional organizations or church business groups
Once you've surrounded yourself with smart business minds, role-play the banker meeting. Ask a trusted peer to play the banker and challenge you on your plan.
Here’s a trick I’ve used with clients that works incredibly well:
Make a list of banks that are unlikely to fund your deal.
Book meetings with them—yes, the ones who will almost certainly say “no.”
Present your plan, answer their questions, and let them turn you down.
This is invaluable practice. Just don’t allow them to run a credit check.
You’re not looking for approval—you’re training under real conditions.
By the time you reach the bank that might actually say yes, you’ll have refined your pitch, prepared for hard questions, and developed real confidence.
When it comes to getting financing to buy a business, you can’t wing it. You have to show up prepared, polished, and practiced. This process will not only improve your chances of approval but also help you better understand the deal you're about to take on.
If you're thinking about buying a small business, head over to www.BusinessBuyerAdvantage.com where I share free resources and a step-by-step program to help buyers succeed.
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.
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Stefan recently asked a fantastic question:
“What can I do to prepare for the questions a banker will ask when I seek financing to buy a business?”
It’s a smart question—and an essential one. Whether you're new to business acquisitions or already searching for the right deal, preparation can make or break your ability to secure funding. (BLOG LINK)
#BusinessAcquisition #AcquisitionFinance #SmallBusinessLoans #BuyABusiness #BusinessFinancing #BankMeetingTips #StartupFinancing #BusinessCoaching #EntrepreneurTips
Stefan recently asked a great question:
“What can I do to prepare for the questions a banker will ask when I seek financing to buy a business?”
Whether you’re at the early stages of deal searching or ready to pull the trigger on a purchase, preparation is absolutely essential when it comes to getting a lender on board.
🎥 Watch the full video: https://youtu.be/RZt7rOhLrWo
You must walk into the meeting with crystal clarity on two things:
The business you’re buying
Your operational plan post-acquisition
Expect detailed questions around:
Revenue projections
Gross margin assumptions
Operational efficiencies
Staffing and leadership
How you’ll manage cash flow and debt repayment
If a banker asks,
“Why do you think gross margin will improve?”
Don’t guess. Say something like:
“I’ve identified supplier contracts that I plan to renegotiate, and I’ll implement inventory controls to reduce waste. That should reduce the cost of sales from 40% to 38%, lifting our gross margin.”
This level of detail builds credibility and shows you’re not just dreaming—you’ve done the math.
You are, as Jim Rohn said, “the average of the five people you spend the most time with.” So if your circle doesn’t include financially literate businesspeople, it’s time to upgrade your environment.
Kiwanis, Lions, or Rotary Clubs
Local entrepreneur meetups
Industry-specific associations
Church or alumni business groups
Once you’ve connected with like-minded peers, role-play your banker meeting. Have someone grill you on your plan. You’ll discover holes in your thinking and practice giving confident, numbers-based answers.
Here’s a surprisingly effective technique:
Make a list of lenders who are unlikely to finance your deal.
Book meetings with them anyway.
Present your deal as if you were serious.
Get feedback and practice fielding real-world objections.
Don’t allow credit checks—you’re only there to learn.
These meetings are practice, not pitches. By the time you talk to your actual target lender, you’ll be sharp, ready, and battle-tested.
This process isn’t just about getting approved. It helps you:
Spot weaknesses in your deal or assumptions
Develop a tighter business strategy
Gain the confidence to negotiate from strength
If you’re planning to buy a small business and want to reduce your risk and increase your chances of success, check out my Business Buyer Advantage program at www.BusinessBuyerAdvantage.com. It’s full of step-by-step training, checklists, and real-world insights.
📬 And don’t forget—join my email list at DavidCBarnettList.com for early access to my videos and articles. You’ll even get 7 FREE gifts just for signing up.
Remember: Banks don’t just fund dreams—they finance solid, well-reasoned plans. So go in prepared, and you’ll walk out empowered.
Cheers,