Premiere - Franchising a Creative Driven Business with Alisa Sparks

 

New guest – Alisa Sparks

I’m joined by Alisa Sparks, Founder and CEO of Linden Creek, to talk about how she transformed a home staging and interior design business into a franchise model.

Alisa came from a finance background, not interior design. That analytical mindset helped her break a seemingly creative business into systems that could be taught, measured, and eventually replicated by franchise owners.

Tune in as we discuss how she systematized home staging, the investment required to build a franchise, managing furniture inventory for ROI, and why sales and marketing can be more important than creative talent when building the business.

We’ll also explore what makes a good franchisee, why Alisa has deliberately chosen to grow Linden Creek slowly, and the lessons business owners should consider before trying to franchise their own company.

This is a ‘must see event’ for business owners, entrepreneurs, prospective franchisees, and anyone interested in franchising a service-based or creative business.

Set yourself a reminder on YouTube here: https://youtu.be/FYOj7VXT5yg 

It will be going live Thursday August 19, 2026 at 2:30 PM Atlantic Time and 1:30 PM Eastern Time

See you there!

David C Barnett

HOW TO CHOOSE A SPEAKER FOR A SMALL BUSINESS CONFERENCE OR CHAMBER EVENT

 The wrong question is usually asked first

When an organizer begins searching for a small business speaker, the first questions are often about availability, fee and whether the person has an entertaining video. Those questions matter, but they come too early. The better starting point is: what should attendees be able to understand or do differently after the session? A speaker can be polished, amusing and well known while still leaving the audience with little they can use on Monday morning.

Start with the audience’s real decision

Small business audiences are rarely homogeneous. A chamber breakfast may include owners nearing retirement, younger entrepreneurs, bankers, accountants, franchisees and people thinking about buying a company. A useful program does not have to solve every problem for every attendee, but it should be organized around a real decision they recognize. Examples include whether to buy an existing business, how to prepare a company for sale, how buyers and lenders judge risk, or how to make a business less dependent on its owner.

Look for operating and transaction experience

Small business education is strongest when the speaker has seen decisions play out in the real world. Theory alone can make a presentation sound tidy even when small business is not. Owners deal with incomplete records, concentrated customers, informal processes, family dynamics, equipment problems, working-capital shortages and lenders who must be repaid whether the forecast was optimistic or not. A speaker with experience around owners, buyers, lenders and advisors can explain not only what should happen, but what commonly happens instead.

Ask how examples will be used

Good examples make technical ideas memorable. Ask whether the speaker uses composite cases, simple numbers, audience exercises or decision frameworks. A valuation session

becomes more useful when participants can see why the same company may look different to an owner, a lender and a buyer. An acquisition session becomes more practical when the audience must identify where cash will come from after closing.

Match the format to the outcome

A keynote can introduce a new way of thinking and create urgency. A 60- or 90-minute session can teach a framework and work through a case. A half-day workshop allows attendees to apply tools, compare alternatives and ask detailed questions. A panel works well when contrasting viewpoints are the point, but it is usually a poor substitute for structured instruction.

Evaluate usefulness, not just applause

The best evaluation question is not whether attendees liked the speaker. It is whether the session gave them a clearer model for making a decision. Entertainment helps people pay attention. Practical clarity gives the event lasting value.

Speaker resource: David C. Barnett delivers practical programs for small business owners and the professionals who serve them, covering business acquisition, exit planning, valuation, financing and deal structure. Barnett has been maintaining a blog and YouTube channel on these topics for over a decade.

Your First Business is Probably Not a Platform

 

**New Video Alert!

Thinking about building a HoldCo, executing a business roll-up, or buying multiple businesses? Buying your first company is one thing. Turning it into a platform for multiple acquisitions is something completely different.

In this video, I break down what business owners and acquisition entrepreneurs should understand before buying business #2. We cover management capacity, debt, integration, business systems, roll-ups vs. conglomerates, operational synergies, personal financial risk, and why one successful year doesn't automatically mean you've built an acquisition platform.

You'll also learn why every acquisition should make sense on its own, why spreadsheet synergies can be dangerous, and how buying more businesses can actually increase your personal financial risk.

Cheers

See you over on YouTube: https://youtu.be/nm2PS9oaac0 

David C Barnett

How to Buy a Business and Prepare for a Recession

When recession fears increase, business buyers naturally start asking whether they should wait, what industries are safest, and whether business prices will fall.

But focusing only on the broader economy can distract you from a more important reality: every small business can experience its own recession—even when the overall economy is doing well.

That's why preparing for uncertainty should be part of every acquisition strategy.

Every Business Faces Its Own Risks

A strong economy doesn't guarantee that an individual business will continue growing.

A company can suddenly lose revenue because of road construction, changing traffic patterns, a major customer leaving, new competition, or dozens of other circumstances outside the owner's control.

For a buyer, this means historical performance should never be treated as a guarantee of future results.

Don't Depend Too Heavily on Historical Averages

Looking at three years of financial performance can be useful, but averages can also hide volatility.

Even a mature business with relatively stable revenue can experience meaningful year-to-year fluctuations.

One unusually large project or customer order could create an exceptional year that isn't likely to repeat. If that strong year influences your valuation and financing assumptions, you could end up paying too much.

Be Conservative With Debt

One of the biggest dangers in a business acquisition is committing too much of the company's future cash flow to debt payments.

If everything must perform perfectly for you to pay yourself and make the loan payments, you've created a fragile deal.

A modest decline in revenue could quickly create serious cash flow problems.

Instead, buyers should leave enough financial breathing room to handle weaker-than-expected performance.

Build Risk Protection Into the Deal

Managing recession risk isn't about predicting exactly when the next economic downturn will happen.

It's about structuring the acquisition so the business can survive when something doesn't go according to plan.

That means considering conservative forecasts, comfortable debt-service margins, sufficient working capital, and deal terms that provide flexibility when circumstances change.

Don't Try to Predict the Future

No buyer knows exactly what the economy—or an individual company—will look like several years after closing.

The objective isn't to eliminate uncertainty. That's impossible.

The objective is to control the amount of risk you're accepting when you buy the business.

A well-structured acquisition should still make sense when results are less impressive than expected, not only when every assumption goes according to plan.

If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com

If you're looking to buy a business using a risk-controlled approach, visit BusinessBuyerAdvantage.com to learn more.

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Key Takeaways

Don't build a business acquisition around the assumption that historical performance will continue perfectly. Conservative forecasts, manageable debt, and flexible deal structures can help protect you whether the downturn affects the entire economy or just your business.

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

A Terrific Interview with MyMarketer Podcast Show with Host Danny Decker

 

 David C Barnett and Danny Decker break down what really makes a business sellable... and how founders should begin planning for their eventual exit far in advance.

It’s a practical conversation about business transferability, cash flow, and designing a business that’s valuable beyond the founder.

10 Reasons to be optimistic about buying a business

 

**New Video Alert!

Buying a business isn't easy but for a prepared buyer, this could be one of the most interesting times in decades to become a business owner.

In this video, I break down 10 reasons to consider buying an existing business, from acquiring proven cash flow and customers to taking advantage of new technology, retiring business owners, fragmented industries, financing options, and businesses with untapped growth potential.

You don't need to find hundreds of great businesses. You only need to find one good business at the right price with the right deal structure.

Cheers

See you over on YouTube: https://youtu.be/a744DDTYXs0 

David C Barnett

Why Some Businesses Are Almost Impossible to Sell

 A company can have customers, revenue, equipment, employees, and years of history—and still be extremely difficult to sell.

Why? Because buyers aren't simply purchasing an operating company. They're investing money with the expectation of receiving a reasonable financial return.

If the business cannot provide that return without depending heavily on the current owner, its value may be much lower than expected.

Is It Really a Business?

A healthy business should generate enough cash flow to pay the owner a fair market wage for their work and provide an additional return on the money invested.

If the owner earns roughly what they could make working for somebody else, they're essentially buying themselves a job.

If the business can't even provide a reasonable wage without the owner contributing unpaid labor, its value becomes even more questionable.

The Owner Dependency Problem

Some businesses become difficult to sell because the owner is the business.

This commonly happens with consultants, professionals, and specialists whose companies depend heavily on their:

Personal reputation

Expertise

Customer relationships

Direct involvement

When the owner leaves, customers may leave too.

That means the goodwill belongs primarily to the individual rather than the company, making it difficult for a buyer to acquire and retain that value.

Specialized Skills Can Reduce the Investment Value

Highly skilled professionals face another challenge.

Imagine someone can earn $150,000 working for another company. If buying a business requires investing hundreds of thousands of dollars but only generates another $20,000 or $30,000 beyond that fair salary, is the investment worthwhile?

A buyer must compare the additional return against the capital required to purchase the business.

Sometimes simply getting a job produces a better financial outcome.

Revenue Doesn't Automatically Create Value

Another reason businesses become unsellable is weak financial performance.

A company might own valuable equipment, inventory, or real estate while producing very little cash flow.

If the earnings don't justify the investment required to acquire those assets, a buyer may conclude that the assets are worth more than the operating business.

At that point, liquidation may become more realistic than selling the company as a going concern.

Watch for Hidden Subsidies

Business owners should also determine whether something is artificially making the company appear profitable.

Real estate is a common example.

Suppose a company owns its building outright and therefore pays no rent. The financial statements may show a healthy profit.

But what happens when you include fair market rent?

If the profit disappears, the building is effectively subsidizing an otherwise weak business.

A buyer considering the true economic cost of operating the company will recognize this immediately.

Make Your Business Transferable

Business owners who eventually want to sell should start preparing well before they reach the market.

Focus on:

Reducing owner dependency

Creating repeatable systems

Building relationships around the company rather than yourself

Improving sustainable cash flow

Accounting for realistic market costs

The ultimate goal is simple: build a business that continues producing value after you leave.

If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com

Key Takeaways

A business becomes difficult to sell when its profits depend heavily on the owner or don't justify the investment required from a buyer. Building transferable systems, sustainable cash flow, and company-owned goodwill can make the business significantly more attractive.

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

A Great Interview with the host of Self- Publishing for Professionals podcast Lynn "Elikqitie" Smargis

 

I sat down with David Barnett, an author of ten books who has spent over a decade helping entrepreneurs buy and sell small businesses. 

David shares how a simple PDF lead magnet he created in 2014 evolved into his first published book, Invest Local, and how that experience revealed the power of books to serve as a lasting business card—one that opens doors to podcast appearances, speaking engagements, and unsolicited client inquiries from strangers discovering him on Amazon. 

Business Funding Secrets: How to Raise Private Capital | Spencer Hilligoss

 

In this "best-of" interview, I sit down with Spencer Hilligoss to discuss what it really takes to raise private capital and build lasting relationships with investors.

We explore how to find the right investors, build trust before you have a deal, create compelling investment presentations, avoid common fundraising mistakes, and why transparency is the key to attracting long-term investment partners.

Whether you're raising money for a business acquisition, real estate investment, or another entrepreneurial venture, this conversation is packed with practical advice for first-time capital raisers.

Watch the video and learn how to raise private capital for your business. https://youtu.be/jUt60obI5xU 

Cheers

David C Barnett

Why Business Brokers Ask for Proof of Funds Before Showing a Business

**New Video Alert!

Why do business brokers ask for proof of funds before they'll share confidential information about a business for sale?

In this video, I explain why this practice has become much more common and how today's business acquisition market has changed. We discuss why brokers need to qualify serious buyers, how the rise of "no money down" business acquisition programs has affected sellers and intermediaries, and why many legitimate buyers are concerned about sharing sensitive financial information.

I also share a practical strategy for demonstrating financial capability without revealing your entire financial picture. Whether you're buying your first business or working with brokers regularly, understanding how proof of funds works can help you build credibility, protect your privacy, and move through the acquisition process more effectively.

Cheers

See you over on YouTube: https://youtu.be/2G_Xo-4iLEw 

David C Barnett

These Red Flags Will DESTROY Your Business If You Ignore Them

 

**New Video Alert!

The best business owners don't wait until year-end financial statements to discover something is wrong; they spot problems while there's still time to fix them.

In this video, I explain the five key performance indicator (KPI) categories every business should monitor to create an effective early warning system. We cover sales pipeline metrics, customer behavior, gross margins, operational efficiency, and cash flow, along with a simple green, yellow, and red dashboard that helps you identify problems before they become expensive.

Whether you're running a small business, preparing to sell your company, or planning to buy one, understanding these leading indicators can help you make faster, more informed decisions. A well-designed dashboard doesn't just improve day-to-day management—it can also increase the value and marketability of your business by demonstrating strong operational control.

Cheers

See you over on YouTube: https://youtu.be/IWt9Z_CPHi8 

David C Barnett

Can You Buy a Business Using Its Own Cash? Here's Why It Usually Doesn't Work

One of the more persistent claims circulating online is that you can buy a business using the business's own cash as the down payment. At first glance, the idea sounds clever. If the company already has cash sitting in its bank account, why not use that money to pay the seller?

The problem is that business acquisitions don't work that way.

While the concept makes for an attention-grabbing sales pitch, it ignores several fundamental principles of business valuation, transaction structuring, and corporate finance.

Understanding Enterprise Value

When a business is valued, buyers aren't simply purchasing the cash sitting in the company's bank account.

Most businesses are valued based on their earnings using measures such as EBITDA. That valuation reflects the value of the operating business—the assets, liabilities, and working capital required to keep the company running.

Cash that is genuinely surplus to the needs of the business is typically treated separately during negotiations.

In other words, excess cash isn't usually a "free bonus" for the buyer.

Why Sellers Remove Excess Cash

In many share transactions, sellers expect to keep excess cash before the business changes hands.

It's common for transactions to be completed on a cash-free, debt-free basis, meaning:

• Excess cash is removed before closing.

• Outstanding long-term debt is repaid.

• The buyer acquires a normalized operating business.

This creates a cleaner transaction and prevents confusion over assets that aren't necessary for day-to-day operations.

The Hidden Problem With the Strategy

For the "use the company's own cash" strategy to succeed, several highly unlikely things would all need to happen at once.

The seller would have to:

• Leave excess cash inside the company.

• Transfer ownership before receiving the down payment.

• Ignore the advice of accountants and lawyers.

• Accept less than the business is actually worth.

That's an extraordinary combination of circumstances.

In most professionally managed transactions, experienced advisors would identify these issues long before closing.

There Are Better Ways to Structure a Deal

Creative financing is absolutely possible when buying a business—but it usually involves legitimate strategies such as:

• Seller financing

• Earn-outs

• Deferred down payments

• Asset-backed lending

• Factoring receivables after acquisition

• Inventory optimization to improve cash flow

These approaches rely on sound financial planning rather than unrealistic assumptions.

Focus on Repeatable Strategies

The biggest difference between professional business buyers and internet marketing promises is repeatability.

A legitimate acquisition strategy should work consistently across many transactions—not depend on finding an uninformed seller willing to ignore professional advice.

The goal isn't to chase clever loopholes. It's to build transactions that make financial sense for both buyer and seller while protecting everyone's interests.

If you want to learn more about buying businesses using proven, risk-managed acquisition strategies, visit BusinessBuyerAdvantage.com.

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Key Takeaways

Using a company's own cash as the down payment may sound appealing, but in most real-world transactions, excess cash is already accounted for in the valuation or removed before closing. Successful business acquisitions are built on sound financial structures—not unrealistic shortcuts.

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

Great Interview with the Host of Becoming Preferred Michael Vickers

Welcome back to Becoming Preferred, the podcast for ambitious entrepreneurs and business professionals who want to level up their game and become the best version of you.

Every week, we talk about how to become preferred, but let me ask you a tough question: You might be building a brand that customers love, but are you building a business that an investor would actually buy?

Whether you’re an established entrepreneur looking for an exit strategy, an investor looking for high-yield cash flow, or a professional wanting to skip the startup phase and buy an existing company, today’s episode is your ultimate playbook.

Joining us is David C. Barnett, an international private transaction consultant, 3-time best-selling author, and the master strategist behind 11 books on business acquisitions, financing, and valuation.

Today, we are pulling back the curtain on how businesses are actually bought, sold, and valued in the real world. Join me now for my conversation with David Barnett.

Live - Avoid These Costly Business Buying Mistakes with Gautam Pardhy

 

What are the biggest mistakes people make when buying a business?

New Livestream guest – Gautam Pardhy

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

Gautam is the author of Don't Buy That Business and has spent years studying what separates successful business acquisitions from deals that end in disappointment.

Tune in as we discuss the realities of buying lower middle market businesses, common acquisition mistakes, SBA financing, private equity competition, valuation, due diligence, and why so many buyers let emotion override good investment decisions.

We'll also explore the myths surrounding entrepreneurship through acquisition (ETA), the importance of disciplined deal analysis, and how buyers can avoid overpaying for a business.

This is a ‘must see event’ for anyone interested in buying a business, 

entrepreneurship through acquisition, or making smarter investment decisions.

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

We’ll be going live Thursday at 2:35PM Atlantic Time and 1:35 PM Eastern Time

See you there!

David C Barnett

Why Smart People Buy Bad Businesses

 

**New Video Alert!

Why do intelligent people sometimes make terrible business acquisitions?

It's rarely because they can't understand the numbers. More often, it's because excitement, urgency, and social pressure cloud their judgment.

In this week's video, I explain how the famous Solomon Asch conformity experiment applies directly to buying a business. We discuss why buyers ignore red flags, how broker and market pressure influence decision-making, and what you can do to stay objective throughout the acquisition process.

If you're planning to buy a business, learning how to think independently could save you from making one of the most expensive mistakes of your career.

Cheers

See you over on YouTube: https://youtu.be/LtvZmOKTbps 

David C Barnett

The Truth About "Buy a Business With No Money" Courses: What Every Entrepreneur Should Know

 The promise of buying a profitable business with little or no money down has attracted thousands of aspiring entrepreneurs. While creative financing certainly exists, many online programs oversimplify the process and create unrealistic expectations about what it takes to acquire a business successfully.

Understanding the difference between legitimate acquisition strategies and marketing promises can save buyers significant time, money, and frustration.https://youtu.be/6Vc3ghgvOAI 

Be Skeptical of Easy Success

If someone claims you can build wealth quickly with little experience and no capital, it's worth asking more questions.

Business acquisitions are complex transactions involving financing, due diligence, negotiations, legal agreements, and ongoing management. There are no shortcuts that eliminate the need for experience, preparation, and careful planning.

Real Business Buying Requires More Than a Course

Buying a business isn't simply about finding a seller willing to accept creative terms.

Successful acquisitions depend on:

• Understanding financial statements

• Evaluating cash flow

• Securing appropriate financing

• Managing risk after closing

• Operating the business successfully

These are skills developed through education, experience, and professional guidance—not overnight.

Verify the Advice You're Receiving

Before investing in expensive coaching programs, research the background and track record of the people offering advice.

Look beyond testimonials and marketing materials. Speak with experienced business owners, accountants, attorneys, lenders, and acquisition professionals who work in real transactions every day.

The more sources you consult, the better equipped you'll be to separate practical advice from promotional claims.

Learn From Trusted Sources

There are many legitimate ways to learn about buying businesses.

Books, experienced advisors, professional training, and real-world business experience often provide a much stronger foundation than relying solely on high-priced seminars or online promises.

Taking the time to build genuine knowledge will help you make better acquisition decisions and avoid costly mistakes.

If you're interested in learning more about buying businesses the right way, visit BusinessBuyerAdvantage.com for practical education focused on reducing risk throughout the acquisition process.

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Key Takeaways

Creative financing can play an important role in business acquisitions, but there is no substitute for proper education, due diligence, and real-world experience. Before investing in any program, verify the advice and learn from trusted professionals with proven expertise.

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

Your Pricing Strategy Is Killing Your Profitability with Belinda Rosenblum

 

In this "best-of" interview, I sit down with money coach Belinda Rosenblum to discuss one of the biggest challenges facing entrepreneurs—pricing.

We explore why so many business owners undercharge, how pricing impacts profitability, the psychology behind premium pricing, common pricing mistakes, discounts and promotions, and how to build offers that create real value for customers.

Whether you're launching a new business or trying to improve the profitability of an established one, this conversation offers practical strategies to help you charge with confidence and build a healthier business.

Why Most People Never Buy a Business (The Real Reason)

 

**New Video Alert!

There are far more people looking to buy a business than there are good businesses available.

That means finding a great opportunity is only part of the challenge. The real difference is being prepared when the right business comes along.

In this video, I explain why business buyers outnumber sellers, why so many businesses never actually sell, and what successful buyers do differently. We cover competition, business valuation, due diligence, financing, and how to stand out with brokers without overpaying for a business.

If you're serious about buying a business, this video will help you understand why preparation—not excitement—is your biggest competitive advantage.

Cheers

See you over on YouTube: https://youtu.be/edpWMY7KYkE 

David C Barnett

What Happens to Shareholder Loans When You Sell a Business?

 

If you're preparing to sell a corporation, it's important to understand what happens to shareholder or director loans. Many business owners overlook these loans until the sale process begins, only to discover they can significantly affect the structure of the transaction.

The answer depends largely on whether the business is sold as an asset sale or a share sale.

What Is a Shareholder Loan?

A shareholder loan is money that an owner lends to their own corporation instead of contributing as equity.

Many owners choose this approach because it allows them to withdraw those funds later without some of the tax consequences that may apply when taking money out as dividends or selling shares. It also provides flexibility when financing a growing business.

What Happens in an Asset Sale?

In an asset sale, the buyer purchases the company's assets—not the corporation itself.

The selling corporation continues to exist after closing, which means any shareholder loans generally remain with the company. Once the assets are sold and cash is received, the owner may choose to repay the shareholder loan before winding down or restructuring the corporation.

This is one reason sellers should involve their CPA early in the sale process to understand the tax implications.

What Happens in a Share Sale?

In a share sale, the buyer purchases ownership of the corporation itself.

At closing, shareholder loans are typically handled in one of two ways:

• The loan is repaid as part of the transaction.

• The shareholder loan is transferred to the buyer as part of the overall deal structure.

Which option makes the most sense depends on financing, taxes, and how the purchase agreement is negotiated.

Why Professional Advice Matters

Every business sale is different.

Factors such as existing bank loans, personal guarantees, tax rules, and financing arrangements can all influence how shareholder loans should be treated.

Working with experienced accountants and legal advisors helps ensure the transaction is structured efficiently while avoiding unexpected tax consequences.

If you're buying or selling a corporation, understanding these details before negotiations begin can prevent costly surprises later.

If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com.

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Key Takeaways

Shareholder loans don't disappear when a business is sold—they're handled differently depending on whether the transaction is an asset sale or a share sale. Understanding these differences early can help sellers structure a more tax-efficient and successful exit.

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

Top Questions About Selling a Small Business

 

Thinking about selling your small business? The best time to prepare is long before you list it for sale.

In this video, I answer the top questions business owners ask about selling a business, including how to value a business, when to start exit planning, seller financing, business valuation, goodwill, confidentiality, due diligence, transition planning, and choosing the right buyer. 

You'll also learn why preparing your financial statements, reducing owner dependence, improving profitability, and creating a solid exit strategy can increase your business's value and make it more attractive to buyers.

Whether you're planning to retire, looking for a business exit strategy, or simply want to understand what buyers look for, this guide will help you avoid common mistakes and prepare for a successful business sale.

Watch the video here: https://youtu.be/nWG2gKbtGpg 

Cheers

See you over on YouTube

David C Barnett