BusinessBroker.net Blog

Welcome to BusinessBroker.net's Blog! Our goal with the Blog is to provide informative and insightful articles that will help you buy or sell a business or franchise. Our blog writers are seasoned and knowledgeable business brokers and industry professionals with many years of experience and expertise.


If there are specific topics you would like more information on or questions you would like answered, please contact us directly using BBN's Contact Form. We would love to hear from you! Thanks and have fun educating yourself.


December 1, 2016
A large percentage of businesses are owned by women.  Through a combination of societal and political change, women have entered the workforce in record numbers since the 1970's.  Legislation aimed at curbing discrimination on the basis of race and sex has enabled women to move ahead in ma…
November 28, 2016
I Think I Want to Buy a Business.  Where do I start? If you are reading this, you are starting in the right place!  Knowledge is power, and you are getting more educated about the marketplace, the process, and the risks and rewards of owning your own business. This website is a place where…
November 17, 2016
When buying or selling a business, negotiation should lead to a win-win situation for the purchaser and the seller.  A win-win situation allows both parties to leave victorious, getting something they want.  This is the optimum situation, as both the purchaser and seller want the business …
November 3, 2016
1. The person “guarantees” you that he or she can sell your business for “whatever you want.” They tell you what you “want” to hear instead of  what you “need” to hear. 2. They tell you that they can sell your business “in a matter of days&…
October 27, 2016
We've all been in a "the customer is always right" type of situation. Whether you were the customer and something went wrong, or you were the very frustrated business owner, a power play came to light. The thing about customers, however, is that they're very often wrong. Especially the ones who are …
October 20, 2016
Along with owning a business comes power.  That is a major reason for wanting to purchase a business and be able to make the decisions. You are a risk taker, which allows you to work hard and become successful.  What makes a powerful person successful? The people we deal with expect a ce…
October 13, 2016
If you are a seller, it’s lonely at the top.  Normally, you have your spouse, your partner and possibly your CPA and attorney to assist you in making major decisions.  But in reality, it falls upon your shoulders to determine whether you should or should not sell.  Many times, a…
October 6, 2016
Many purchasers of businesses know very little about finances and records necessary for a business.  If you do, you probably feel more comfortable; but a little knowledge is all you really have to know.  It is important to select a business accountant and a business attorney to assist you …
September 29, 2016
During the many years I have sold businesses, I have worked with many individuals in corporate positions in the purchase of a business. Common among most of them was that they were tired of working so hard for the corporation and wanted to do that work for themselves and earn the profits. Many peopl…
September 22, 2016
When buying a franchise, you can enter into a franchise agreement with a franchisor and start a business as a franchisee or you can purchase an on-going business that is a franchise.  You would still enter into a franchise agreement with a franchisor but would have a business with a financial h…
September 15, 2016
Reasons to Sell:   1. With millions of unemployed workers living off of their savings and retirement plans, there is a high demand for good businesses. And due to the unprecedented demand, multiples of Owner’s Discretionary Cash Flow can sometimes exceed 3 where in the past the multiples…
September 8, 2016
If you ask me what my favorite companies are to sell, I would have to say distribution and light manufacturing.  The reasons are quite simple.  A distribution company is typically not complicated.  You order merchandise from the manufacturer.  You receive the merchandise. You rep…
August 31, 2016
For those of you buyers who are looking for a business to own, I would suggest that you consider an online or Internet or eCommerce business. These all essentially mean the same thing, but there are some differences that I would like to illustrate. All these businesses use the Internet to generate…
August 25, 2016
Although an attorney will prepare the closing documents for closing, it is important to be prepared and understand what to expect.  This article is a guide for you when considering what expenses will be divided, which are called standard prorations.  When buying an ongoing business, a big …
August 18, 2016
One of the reasons business owners give for deciding to sell their businesses is burnout.  The purpose of this article is to help you avoid getting to that point.  However, once you get burned out, it is best to sell and move on, as you have probably lost interest in your business.   …
August 11, 2016
Listening skills are essential to leadership that’s responsive, attentive and empathetic.  Everyone deserves to be heard and understood. There is a huge difference in hearing someone speak and really listening to that person.  There are many reasons people don’t listen, but it …
August 9, 2016
6 Traits That Make a Great Entrepreneur So… you think you've got what it takes to be an entrepreneur? Or, maybe you're scared that you don't. Either way, it's worth looking at the career as a whole and pairing it against your own skills. It's a step that can determine if you do have the neces…
August 4, 2016
Are you a risk taker?  That is a question commonly asked of people wanting to be business owners.  Without risk, no one finds true love, develops real power, gains prestige, or acquires great wealth.  Accepting risk is central to everything worthwhile in life, and there is simply no w…
July 28, 2016
You have gone through the process of selecting a business and have met with the owner.  After reviewing the information you have obtained from the owner through your business broker, you are ready to make an offer.  This article will prepare you for some of the items you will want to inclu…
July 21, 2016
The first business I sold as a business broker was a small car wash.  It operated out of a commercial location garage, large enough for one vehicle.  The only assets were a hose, a bucket, and other needed washing supplies like you would use if you were washing your own vehicle.  What…
July 14, 2016
Number 1.  Make sure you really “want” to sell.  Ask yourself if you are bored, burned out, ill, have a new child, have aging parents that need your assistance, etc. Or are you simply unhappy with how much money you are making?  If this is the case, you do not “need&…
June 29, 2016
There are several ways for me to answer this question.  1)  I can simply say that the price should be somewhere between 2 to 3 times Seller’s Discretionary Earnings (also known as Owner’s Discretionary Cash Flow) plus inventory at cost for a Main Street Business or somewh…
June 22, 2016
1. When sales and profits have been increasing.  Nothing speaks louder than success.  When buyers see an upward pattern, they are inclined to believe all is well with the world and will pay a premium price for the business.   2. When your employee base is stable with as many long-ter…
June 16, 2016
The largest percentage of businesses sold lease a building or space in which to operate.  Because that can sometimes take longer than expected, it is important to start the process of obtaining a lease immediately after a Letter of Intent or Offer to Purchase is agreed upon by the buyer and sel…
June 9, 2016
Confidentiality places restrictions on certain types of information.  A common question asked of business brokers is, “Why are business listings confidential?”  Most people are familiar with realtors listing houses and attempting to get information about the listings to as many…
June 2, 2016
THE JOY OF NETWORKING Customers or clients are important in any business, as they purchase your goods or services. In business, you have a goal to provide quality goods or services that will meet the needs and wants of these customers or clients. There are many ways to market a business and get your…
May 26, 2016
When you decide to sell your business, you have thoughts about the buyer you would like to find.  After years of blood, sweat and tears put into a business, it is normal to want someone to purchase it who appreciates what has been done and who can maintain the same quality of goods and service …
May 19, 2016
A good marketing package provided to you by the Business Broker will cover the history of the business, products or services offered, the number of employees and their longevity with the company, the hours and days the business is open, the competition, the client base, and areas of possible future …
May 12, 2016
If this is your first experience considering the purchase of a business, Due Diligence may be a new term to you.  Basically, it is confirming all the information you receive from the seller is accurate and that it matches the tax returns of the business you are purchasing.  Also, in additi…
May 5, 2016
When you purchase a business, you will immediately begin to deal with the employees.  The type and size of business will determine the number of employees needed.  A profitable business will usually have long-term employees who will want to continue to work for you when you purchase the bu…
April 28, 2016
When you have a successful business, it is sometimes difficult to make the decision to sell.  You have devoted your time, money, and energy to building, running, and operating your business.  People become attached to businesses and love them like they are their children or family.  T…
April 21, 2016
1. Do you have the courage to take the entrepreneurial leap? Forget about the cozy comfort of the corporate environment where you can have someone else take out the trash, clean the bathroom, get you coffee, pick up your dry cleaning, etc. The buck stops with you, and you need to take 100% responsi…
April 14, 2016
Once you have found the business of your dreams, you need to figure out a way to purchase it. One way is if you have the proverbial “rich Uncle” who can write a check for the entire purchase amount. The probability of this happening is less than 1%. Or you can go to your parents, sibling…
April 7, 2016
There is a great deal of confusion concerning the calculation and significance of ODCF.  First, it is not taxable income as shown on the tax return.  Second, it is not net income as shown on the income statement.  Rather, it is a calculated figure that helps a buyer determine how much…
March 31, 2016
If you see two businesses side by side, with one successful and the other not, chances are great that management is the difference. A well-written business plan, with goals and pro forma financials to follow, and a good policies and procedures manual help you be a successful business manager.  …
March 24, 2016
In order to know where your business is going, you must have a business plan.  Without one, it would be like attempting to drive to a location with no knowledge of how to get there.  Besides being a guide, it must get the attention immediately of Venture Capitalists, Angel Investors or Ban…
March 17, 2016
In our post “I Think I Want to Buy a Business.  Where Do I start?” we noted that you may want to start with lining up professional assistance to help you avoid the pitfalls of doing it yourself.  That’s what experts are for, after all:  to fill in the gaps in our per…
March 10, 2016
When buying a business, what are some basic questions you should ask? One of your key objectives is to become educated about the business and the process, so that you can make an informed decision. This will minimize the risk, risk which is inherent in purchasing a business, starting a business, or …
March 3, 2016
So you want to buy a business!  That is the American dream. However, there are several things you need to think about before you take that big step. I will discuss some of the practical considerations in running a small business in a later blog but for now let's discuss your decision and some o…
February 25, 2016
If you are reading this, you are starting in the right place!  Knowledge is power, and you are getting more educated about the marketplace, the process, and the risks and rewards of owning your own business. BusinessBroker.net is a place where you can see businesses for sale in a marketplace-li…
February 18, 2016
The three components of a successful business are location, product/service, and management.  As a prospective buyer, you have a vision of being your own boss and calling your own shots.  People go into business for various reasons, including but not limited to, financial independence, job…
February 11, 2016
When considering the purchase of a business, one of the most common concerns is how to get a picture of the true value of the business.  Of course, this is a huge consideration in a for-profit business, as the amount of the purchase price must give a good return for the buyer’s investment…
May 11, 2014
Why would your search for the perfect business be any different? Sure, you probably know what type of industry you want to enter: Maybe you’re a wonderful cook, so you’d like to start a restaurant; or you were once a teacher so you know you’d be a good fit for a tutoring business. …
November 14, 2013
The type of business for which you've been waiting has just come up for sale. You'd like to make an offer, but are you certain that the asking price resembles its actual value? Just as some parents overestimate the talents of their offspring, the emotional attachment of an owner to his organization …
September 23, 2013
The decision to branch out on your own and buy your own business is a big one and needs careful thought and planning.   To help you, we’ve outlined some top tips to remember when buying a business. How much time are you willing to devote to running the business?  It is import…
September 16, 2013
Are you thinking about making your dreams of owning a restaurant a reality? Purchasing an existing restaurant can be a lot easier than starting one from scratch, but you need to take a measured and careful approach to the situation to increase your odds of success. It's true that many restaurants fa…
September 6, 2013
If you're looking to buy a business, you have no doubt heard from concerned friends and family that the only reason it's easy to find a business for sale is because small businesses fail so often.  While it is true that many business ventures fall flat long before they have a chance to grow, kn…
August 22, 2013
If you've been struggling with career ideas and are looking for a fresh start, you might want to consider business ownership.  Instead of embarking on a new business venture from scratch, purchasing an existing business could provide a number of benefits.  With a bit of hard work and some …
July 29, 2013
Everyone wants to be their own boss, but success in the business world depends on an individual's ability to adapt to a changing professional climate that demands a lot from entrepreneurs.  Understanding the personality traits of a successful business owner can help an individual pinpoint their…
November 19, 2012
This article will provide you with step by step instructions to get your business ranked on page one of Google.  I am going to focus on Google Map Listings. Google Maps is also known as Google Places and Google + Local.  Google Maps results often appear when a person performs a search for …
October 19, 2012
So, you have decided that you want to sell your business or you are moving in the other direction and you want to buy a business.    In many cases, hiring a professional business broker is a smart thing to do.   Business brokers can help you navigate the often complex process of buyin…
October 4, 2012
  Here is a super cool site I bumped into just today.   It's called Foldable.me.     This site allows you to create your own "mini-me" - cardboard cutout.     Don't really want to attend that meeting but feel like you should -- no problem!  Just send your lit…
October 3, 2012
For those of you looking to buy a franchise, you will want to understand the two main legal documents that pertain to the franchise buying process -- the Franchise Disclosure Document (FDD). Let's first cover the FDD.   The FDD was originally known as the Uniform Franchise Offering Circular (U…
September 7, 2012
Do you desire to be a business owner but not sure how to finance the acquisition of a business or franchise? If so, you are not alone. In this tough economic climate, financing is often the most challenging hurdle to buying a business. BusinessBroker.net currently has partnered with two companies th…
August 22, 2012
This purpose of this article is to point out 3 key steps in researching a franchise before making the decision to buy. As I've said before in older posts, the old adage "measure twice and cut once" certainly applies when you are considering buying a franchise or business. It pays to be very thorough…
August 17, 2012
Seeking Professional Guidance when Buying a Business is a Smart Move Written By:   Mark Trail, Principal Intermediary for Crown Business Solutions Buying a Business is a Big Decision – Be Careful! I routinely read articles offering advice to potential business buyers on things t…
July 3, 2012
BusinessBroker.net (BBN) is pleased to offer a free new service to those serious about buying a franchise.  BBN's Franchise Guidance Service provides assistance in selecting a franchise to buy that aligns with a person's experience, skills, desires, and financial/investment level. There are a …
June 27, 2012
  While making money should be at the very top of your list of goals when starting a business or franchise, it should not be the only thing you consider.     You certainly want to thoroughly research all of your options before selecting a particular business or franchise to purchase.…
May 25, 2012
I am reading a great book by Ed Pendarvis entitled - Secrets of Buying The Right Business (for you) Right.  Ed is one of the world's most experienced and well known "Main Street" brokers - he is founder of Sunbelt Business Brokers and his career spans more than 30 years helping buyers and selle…
May 10, 2012
When you are looking to own your own business, there are many choices.   One of these choices is whether to buy a franchise or an independent business.    There is no right or wrong answer here.    It depends on numerous factors -- you will have to evaluate all of these fact…
May 2, 2012
This article was contributed by Renee Walkup | SalesPEAK, Inc. There I was, driving home from a speaking engagement and waiting for the traffic report when a voice came over the radio. that made me shudder. Remember the Seinfeld episode where Kramer has seizures whenever he heard Mary Hart's voice …
April 26, 2012
If you are someone who is unfamiliar with the buying and selling of businesses, the term "business broker" might be perplexing.   This short blog post will hopefully help you out. A business broker is professional who has specific training and experience in helping people buy and sell business…
February 1, 2012
  Buying a franchise or a business for sale is one of the biggest decisions you will make in your lifetime.    To help you ensure the decision, buying, and ownership phases go smoothly, here are 5 tips for your consideration.   This is certainly not an exhaustive list, but one t…
January 12, 2012
Whether you are working with a professional business broker or trying to sell your business on your own, one of the most basic and important first steps is to take time and care when writing your business-for-sale advertisement.    Here are 5 simple tips on how you can make your busin…
November 9, 2011
Would you like to sell your business?  Looking for some simple tips?  If you are then we can help.  Here are some quick tips for selling your business. First, make sure your accounting books are in good order - most buyers are going to want clean, understandable, and organized financ…