What is a Business Broker? - part 2

Although business brokers mat be also real estate brokers, the sale of businesses is entirely different from the sale of real estate. When you purchase real estate, it is easy to see what you get. With a business, there are often intangibles that are hard to define. It takes skill and experience to put a value on these things. Often, the buyer may not want all of what is considered by the the seller to be part of the business. The broker needs to be able to negotiate these differences.
A big difference between the sale of a business from real estate is in the marketing. While a seller of real estate may want as much exposure as possible, business sales are often confidential. Business sellers may not want employees, customers or competitors to know about the potential sale until it is solidly in place. The broker will use marketing methods that respect this situation. While there are sites that list businesses for sale and some brokers publish and distribute lists, there are many businesses that a buyer will only find out about after consulting with a broker. Once the broker determines that a prospective buyer has the capacity and might be the right fit for a certain business, will he be given information on that business. A good business broker desires that every transfer of a business is a win-win situation with the seller moving on, enjoying the fruits of reward for developing a good business, and with a buyer getting into a business that will provide opportunity to succeed and provide financial return and security.

What is a Business Broker?

A business broker is a professional who assists in the sale or transfer of a business from one owner to another. Sometimes referrred to as an intermediary or facilitator, business brokers act in a manner similar to what a real estate broker might in the sale of real estate. In fact, in many states, including Florida, a real estate license is required to earn a commission for the sale of a business. While some businesses include real estate in the form of a building in which the business operates, most businesses are sold without the real estate. If the seller of the business owns the real estate, a lease may be arranged for the buyer to continue operation in the current location. Most often, the business leases space from a third party, and a transfer of lease or new lease is arranged by the broker.
The business broker works with the seller to present the business in the most positive light, maximizing the value. Successful business brokers also work with the buyer to make the chances of future success a priority. Business brokers have training and experience in valuing businesses, arranging financing and assisting in transfer documentation.

Sand Dollar Real Estate/ Business Depot has been involved in business sales in Southwest Florida since 1986.

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12 Ways to Get What You Want

The following are tips from Leigh Steinberg, an agent that has represented many athletes in their contract negotiations. It may be helpful in everyday dealings in working with buyers and sellers or suppliers.

# Align yourself with people who share your values.

# Learn all you can about the other party.

# Even if you don't have an option, convince the other party you do.

# Set limits before the negotiations begin. Be prepared to walk away.

# Establish a climate of cooperation, not conflict.

# In the face of intimidation, show no fear.

# Learn to listen.

# Be comfortable with silence.

# Don't play 'split the difference' game. Avoid wasting time arguing the validity.

# Emphasize your concessions; minimize the other party's.

# Never push a losing argument to the end.

# Develop relationships, not conquests.

9 Obstacles to Creativity

By Alexander Hiam, The Futurist, Oct. 1998

1. Failure to Ask Questions: "Why?" and "What if?"

2. Failure to Record Ideas

3. Failure to Revisit Ideas: Give old ideas a second chance.Increase your awareness.

4. Failure to Express Ideas: Most ideas are treated like weeds rather than cultivated.

5. Failure to Think in New Ways: Not so much what you think, but 'how you think'. Group sessions are good for bringing out individual mental strategies.

6. Failure to Wish for More: Creativity is nutured by optimistic speculation.

7. Failure to Try Being Creative: Lack of or little effort.

8. Failure to Keep Trying: Revisit, incubate, focus... There are no shortcuts to creativity.

9. Failure to Tolerate Creative Behavior: When creative forces emerge, behavior often seems a bit weird to others.

Manufacturing Business Available

We are currently representing a successful business that is now available for purchase, having been operated in SW Florida for over 25 years. They produce a Florida themed food product that is distributed throughout the USA and has the potential for a significant interenational market. Owner's benefits have been strong and consistent, topping out at around 500k in 2007, although off due to the economy the last two years. The facility is well organized and there is capacity to add a variety of products to the current lines. Building is owned by business owner and an attractive lease can be negotiated. This business could qualify a buyer for an E-1 Visa according to immigration attornies. It has been pre-qualified for SBA financing. It is priced at $950,000. Details are available upon completion of a non-disclosure aggreement.
Call Larry Steinborn, Broker
Sand Dollar Real Estate/
Business Depot

239-433-1343
bizdepot@aol.com

Small Business is Important

Small business accounts for 80% of all jobs in the USA. Many ideas for new products come from entreprenuers working on their own. Corporate giants may control much of the economy, but they certainly do not own it. The small business person can provide the quick response time and flexibility of management decision making not available in most large corporate structures. Opportunity is there for those willing to make the sacrifices necessary to acheive success.

Sand Dollar Real Estate/ Business Depot
239-433-1343

www.twitter.com/bizdepot