Wednesday, July 23, 2025

Business Buyers are Legally Naked

 


***New Video Alert!

Today, how business buyers are NOT consumers.

Don’t be naïve 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


Monday, July 21, 2025

LIVE Timothy L Smith- Avoid Investment Fraud

 


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


Saturday, July 19, 2025

When the City Rezones Your Business Out from Under You

 …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 



The Zoning Nightmare

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.

But Then the Questions Start…

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.”

🚩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.

The Sad Truth Unfolds

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.

The Real Problem Wasn’t the City…

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.

Lesson: Know What You’re Building

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:
👉 Cash flow for you.

If it’s not producing cash for you today?
It’s time to fix it—or kill it.

💥 Key Takeaways

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 Be That Guy

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


Wednesday, July 16, 2025

3 Red Flags to Run- David says differently_

 


***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




Monday, July 14, 2025

2025 LIVE Ed Patton Financial Fundamentals

 


Financial Fundamentals Are not on your Financial Statements!

New Livestream guest- Ed Patton from Patton systems in Texas.

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

Ed has had a long career in management and knows that business owners don’t like to read financials. 

He has a different set of tools.

Tune in and as we’ll be discussing financial fundamentals.

It’s a way of breaking down a business’ financial position into a series of ‘scores.’

This is a ‘must see event’ for people who want to learn how to better run 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://youtube.com/live/663lJ_Jw-bQ 

We’ll be going live Monday July 14, 2025 at 1 PM Atlantic Time and 12 Noon Eastern Time

See you there!

David C Barnett


Saturday, July 12, 2025

How Do You Know If Someone’s Ready to Be an Entrepreneur?

 Sean asked a great question recently:

"How can I tell if someone’s truly ready for the challenges of owning a business?" https://youtu.be/tJuCAlwidRE 



If you work with aspiring entrepreneurs whether they’re thinking about starting or buying a business this is one of the most important things to figure out early on. The hard truth is: not everyone is cut out for entrepreneurship, and diving in unprepared can lead to costly mistakes.

When I was a business broker, I saw this all the time. People would come to me with the dream of buying a business often leaving behind secure jobs with pensions and perks without fully grasping what they were walking into.

So how do you test their readiness?

Here are two simple but powerful filters I’ve used over the years to separate dreamers from doers:

1. The “Late-Night Credit Card Terror” Test 😱

Running a small business isn’t always glamorous. Sometimes, it's 3:30 a.m. and you’re lying awake trying to figure out how to make payroll because a client payment fell through and rent just cleared your account.

This happened to me. I realized at that moment that my only option was to take a cash advance on my personal credit card to pay my receptionist.

It felt awful — but it worked. That’s the gritty reality of small business ownership. It’s not just about vision boards and product launches. It’s about resilience, resourcefulness, and doing what it takes.

I now ask aspiring business owners:

“Have you ever had to take a cash advance to cover payroll?”

You’d be surprised how many seasoned owners nod their heads. If someone can’t even imagine that scenario or is clearly horrified by it it may be a sign they’re not mentally prepared.

2. Can They Sell? 

Sales is the oxygen of a business. No matter what kind of company you run, if the sales don’t happen, the business doesn’t survive.

Even if you hire salespeople, you are still the chief salesperson as the owner. That’s why I always ask:

“Have you ever worked in a commission-only sales role?”

If they say yes, great. They’ve already had to survive on performance. They know the pressure of “eat what you kill.” They’ve learned how to handle rejection, stay composed, and deliver value without coming off as desperate (what I call “commission breath”).

If they say no? That’s a yellow flag.

I often recommend:

  • Try door-to-door fundraising for a nonprofit

  • Do cold calls for a charity or community cause

  • Practice telemarketing for something meaningful

The idea is to test their comfort with selling, especially when there’s no safety net. If they won’t try it even when their job and mortgage are safe, how will they perform when their livelihood is on the line?

Bottom Line

Entrepreneurship isn’t just about skills, it's about mindset, stress tolerance, and grit. Before someone takes the leap, they need to understand the true nature of the journey ahead.

✅ Are they ready to make tough calls in tough times?
✅ Can they sell without fear or desperation?
✅ Do they know what it’s like to live without a safety net?

If the answer is yes, they might just be ready.
If not better to find out now than 6 months (and $60,000) too late.

Got more questions like Sean’s? Keep them coming.
And if you’re looking to dig deeper into buying or selling a business, check out the free resources and videos at DavidCBarnett.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.


Wednesday, July 9, 2025

Your Small Business Banker's Point of View

 


***New Video Alert!

Today, I discuss the four levels of assurance that lenders rely upon and the six stages of small business failure and how this keeps your banker up at night.

Watch this week’s video here: https://youtu.be/9Xl43oe58JA 

Cheers


See you over on YouTube

David C Barnett



Send Voicemail