Licenses and Permits when buying a business. How to Buy a small business.

If I can’t get the liquor license in time, should I delay the closing?

Well, I would.

Licenses and permits are your key to enter the weird world of government bureaucracy.

Sometimes it’s quick and easy.

Sometimes you have to wait 30 days and tell all the neighbours.

The thing to know though is that these rules change depending on which city, state, province or country you’re in.

Let me share some of my experiences when it comes to licenses and permits when buying small businesses.

Watch the video here: https://youtu.be/M8UH6Y2LrBM

Learn how to buy an already-successful and profitable business: https://www.BusinessBuyerAdvantage.com   

Book a call with me at https://www.clarity.fm/davidbarnett  

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#entrepreneurship #smallbiz #license #permit #foodhandling #kitchen #bar

Deliciously Juicy Seller Financing Insight from a Wonderful Waterfront Steakhouse

--> November 23, I’ll be in Toronto.  Come See Me.

Hi there,

I talk a lot in my videos and articles about seller financing when buying a business.  Rarely do we get to hear of actual stories of deal structure because of the secrecy that surrounds most deals.

Today, I’m looking at the fallout of a restaurant sale that went bad.

Too bad for the steakhouse, but now we get to learn some of the details of how this business was transferred.

There’s an especially juicy morsel here about personal guarantees too.  It’s a medium-rare learning opportunity.

Also, if you don’t live in the Maritimes, you’ll get to learn what a donair is.  It’s delicious.

Watch the video here: https://youtu.be/2he-2rU4JIQ

Learn how to buy your own business at https://www.businessbuyeradvantage.com/

Get an Audible subscription and listen to my book Franchise Warnings: What you really need to know before you buy for FREE.

Book a call with me at www.clarity.fm/davidbarnett

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What's better for an absent owner? A C-Store or a Restaurant? How To Buy a Business

This viewer has one simple question-

David, if I have to choose between a restaurant and a convenience store to buy as an absentee owner, which one makes the most sense?

Well, for this one we’re going to have to take a look at what the Big Boys do and try to understand why.

Watch here: https://youtu.be/EL2l2Jres3w

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Want to meet me in person?  In the next few months I’ll be coming to Toronto, and Las Vegas Baby.

[VIDEO] Franchise Buying Frustration

I was doing some work to help evaluate a business for sale.  I discuss the value of the business and how the fact that it is a franchise complicates the sale.  The real victim is the seller who won't be able to get a good price for the business because of the franchisor's rules.  Learn more about the problems with franchises by reading Franchise Warnings.  Buy it here: https://gumroad.com/l/VdRG



The Invest Local Book blog is all about small business, franchises, local investing, home economics, small business systems and borrowing money for your business. It's full of great content and I look forward to seeing your feedback.

Properly Structured Business Purchase deals can close quickly, even with Bankers involved

I came across this story about a bar/restaurant deal in California.  What strikes me is that the price was right, the buyer had experience and an adequate down-payment.  The deal came together quickly because the banker also saw that the deal made sense.  

Unfortunately what I see so often here locally is that sellers want unrealistic prices and so the businesses stay on the market forever and scare off the serious and qualified buyers.

Mel Jones

CEO & President , Paramount Restaurant Brokers, Inc. DBA SellingRestaurants

SBA Loan funded in 45 Days for a Restaurant seems impossible, particularly in California where the state is over regulated with delays in liquor license transfers, fictitious name filings, health inspections, fire inspections, entertainment licenses and the list goes on and on.
But there are rare instances as in the case of Pirates Grub N Grog in Channel Islands California, where there are motivated parties on all sides of the deal, buyer, seller, banker and broker.
I entered into contract with Pirates Grub N Grog representing the Buyer. I knew the business well and I knew the owner just as well. I had already prepared the valuation analysis using the tax returns. Sales price $525,000. Knowing I was getting into contract, I contacted my banker to have him review the restaurant's financials. I knew we had a strong business with an adjusted net in the $240,000 range. Bingo on the value.
Then I sized-up the buyer. Solid experience! About $110,000 cash. A FICO in the 750 range. Owned real estate without debt worth $350,000. We went for a loan of $400,000 including $40,000 of working capital. We had the seller carry $75,000. The buyer would be out of pocket when escrow closed about $69,000. I polished his resume.
We had loan approval in 8 business days. But before that I had gotten the lease negotiations and liquor, license transfer process underway only because I knew the deal was solid on all sides.
This started June 20th. We are funding the loan this week July 30.
The banker said he has never seen a deal fund so fast and particularly for a restaurant with all the regulations in California. But it is all in preparing the business and buyer as well as having motivated parties to the deal. read more

To learn more about how to properly find and buy a business with or without a broker, consider enrolling in my 16 week business buyer course which begins this fall  Click for more info

[VIDEO STORY] The money-losing pizzeria

I tell the story of a money-losing pizzeria that wanted to find a buyer.

I talk about how hard it is to sell a money-losing business and the type of buyer who is looking for one.

I discuss 'conversion' value and share how deeply discounted a price can get, even with seller-financing.

enjoy

Is it the economy or you?

My good friend Rick recently had a blog post about 'the economy' and how business people like to blame it for the shortcomings of their business.  It resonated so much with me that I had to respond and wanted to share it with my readers.  My comment is below...

Is the economy the real problem?

There isn't a day that goes by that someone doesn't complain about our crappy economy.

I was in the restaurant industry for seven years. In those seven years I became accustomed to my colleagues complaining a sucky environment. I used to nod but I have never supported that position. I can testify that in my time of being in the restaurant industry I never had one declining year in combined sales. Why was my business growing when others were failing? Is that indicative a failing economy?

Granted there are times when there's an economic slowdown and many companies and industries suffer from the economic slowdown.  Although 2008 was tough on communities that had huge layoffs, mine was not one of them. The economy is our scapegoat. And that's not just.

Here are some of my experience over the last four weeks:

I called a roofer to fix my roof. He showed up the same day to assess the damages. I called three times to get a price quote. He never returned any of my calls.  After four weeks, I had to call someone else.

I needed some drywall done. My drywall guy took 5 months to show up. When he finally did show up he told me it was one week job. One week turned into three weeks. The quality was ok but the inconvenience of living in dust for three weeks was too much. I'm sure he'll blame the economy as less people use his services.

I had a plumbing problem. Plumber told me he was really busy for two days, but promised to assess the problem on day three. That was three weeks ago. Where is my plumber? I'm sure the economy has something to do with his declining sales.

I had to call an electrician four times in order to get him to install the wiring required for my hot tub. I haven't received his invoice yet. Maybe he'll have to call me four times to get paid. Would that be acceptable? And now I have to call him back because he didn't finish the work that he promised he would. Again I'm sure the economy will be the blame for any downsizing of his business.

I wanted a hot tub. So I visited two local companies and asked for a quote. One company took three weeks to respond to my request. They were too late, I already made my decision. Again the damn economy will be the downfall of another local company.

If you're in business, do yourself a favor. Blame the things you can control and stop worrying about the things you can't. Unless you're in the shoe business and everybody stops growing feet, the economy is probably not your problem. Newsflash you're the problem!

Face the music.  Put on your big girl panties. Stop blaming everyone but yourself, and get to work. The economy should be blaming you for defamation. You're hurting the economy by giving crappy service.

David BarnettJune 19, 2014 at 10:29 PM

I spoke to a local restaurant owner today. I asked him if he accepted American Express because I had to bring someone out for lunch next week and our company uses AMEX for entertainment expenses. He said, 'no, we don't take Amex.' I asked, 'why don't you sign up? I could go there for business and you would probably get more clients. Its the most popular corporate card in the world.' He said, 'Yeah, sorry for the inconvenience, we don't accept it.'

I just don't understand why people don't try to please their customers.