entreprenuer Archives - The NegotiationThe Negotiation

12 Fatal Mistakes When Selling Your Business (Pt 2)

December 1, 2013

Selling a business is not easy. Each deal has its challenges and nuances. That is why I love what I do, and know how valuable our service is at Transworld. Do you think you place an advertisement somewhere and the perfect buyer will call? I wish it was that simple.

While many entrepreneurs build a successful business through vision, excellent management skills and sheer hard work, most do not have a thorough understanding of the complexities and factors that are present in the deal structuring and business selling process. Plainly said, “It’s a jungle out there, and you need a professional tour guide”!
Here are more of the most common pitfalls when trying to sell your own
business continued…………..

7) FAILURE TO PROPERLY STRUCTURE THE DEAL
When the seller has limited knowledge about the available alternatives for structuring the deal, he is at a definite disadvantage and probably a costly one. Items such as leverage buy-outs, leases, royalties, earn-outs, consulting agreements, non-compete contracts can add immeasurable value and security to both buyer and seller alike. At the same time, terms unfavorable to you could be a fatal mistake or make your head ache trying to figure out if
something is a scam.

8) FAILURE TO PREPARE FOR PROPER DUE DILIGENCE
Due diligence issues are very important to the selling process. It is imperative to be prepared and organized. You must be able to defend and substantiate
representations made during the selling process. We can guide you through the due diligence jungle. If your records are still in the shoebox, you will probably not get the deal done!

9) FAILURE TO MARKET THE SALE
If your business sale is being handled by a small brokerage or by you with limited advertising resources you will never find the best buyer at the highest selling price. With our large network, we are able to interview hundreds of buyers and get the best ready to purchase your business. Transworld’s approach creates a mini trading floor and auction like atmosphere that will
produce buyers that know the value of your business.

10) FAILURE TO SEEK THE RIGHT PROFESSIONAL ASSISTANCE AND CONSULTATION
There are legal, financial, marketing and other vital considerations that must be addressed in the selling process. Many decisions in the selling process should not be made without the advice of the right professionals. The wrong professional can lead you to make bad decisions. You need the right team.

11) FAILURE TO PROPERLY PACKAGE YOUR BUSINESS
A potential buyer will want information about your customer base, competition, financial history and industry characteristics, such as size, growth potential and areas of opportunity. This information must be provided in a salable format and in a way to ensure your confidentiality. Your financials
must also be recasted to show your business in the proper light. Most financials are prepared to minimize taxes; we work with you and your accounting professional to recast them in a format that maximizes your
businesses value.

12) FAILURE TO CONTROL THE DEAL
We have sold thousands of businesses. We know when to let buyers look at customer lists, when to talk with employees (if ever), when to start and end due diligence, when to hire the right professionals, when to call the landlord and more importantly we know when to refuse access to your business and its records.

There are many opinions on how to sell and buy a business. You need a strong brokerage company in your corner. Again, this is a complicated process with many pitfalls. But with the right team, your goal of selling your business for the right price is just a phone call away.

Andy Cagnetta owns and operates Transworld Business Advisors. He joined the company as a sales associate and later purchased it. Transworld is an international franchise business and franchise brokerage, with thousands of businesses for sale and franchisees in the United States and Internationally.

ANDREW CAGNETTA

Certified Business Intermediary
CEO, Transworld Business Advisors
Offices Nationwide
954-772-1122
www.tworld.com

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What are the Successful Traits of Serial Entrepreneurs

November 17, 2013

Ever wonder why some people seem to always do well in businesses while others fail? I have met many serial entrepreneurs that are perennial winners when buying or starting businesses. We often ask are there worse businesses or worse business owners? Most reply the latter, there are worse business owners.

Here are ten of the traits that each of these serial successful entrepreneurs has:

1. They work hard. Sometimes they are the hardest working person in their company. Many times I have seen people outwork others that are smarter.

2. They know how to treat their employees and customers. I have not seen many mean people last in business. At award ceremonies you always see the winner thank their people and clients. You cannot build a big business alone; believe me it helps to be nice first.

3. They personally deal with issues. And they are often not very nice about it. Hard on problems, soft on people.
Often they are obsessive about customer service.

4. They are not afraid to get dirty. They are not afraid to work alongside their employees when the bad stuff hits the fan. Roll up your sleeve kind of people win!

5. They know how to lose. They know when to call it quits, take the loss, admit they’re wrong, and move on from a bad idea or decision.

6. They are never satisfied and often have a tough time acknowledging a win. There is never an end to the game. Constantly pursuing a better
way, efficiencies, and not afraid to tweak and experiment.

7. They trust their employees. They delegate well and don’t micromanage. They promote from within and invest in people. They can handle and manage imperfection in performance.

8. They have resources. Sorry to say, it is nearly impossible to start with no money and make it. Most of the time it takes money to make money!

9. They give back and share their wealth and knowledge. They never forget where they came from, and keep grounded and usually are humble.

10. Finally, they take risk!! You must take risks to win in business. The key to success is to understand your odds and minimize the downside of any endeavor or decision.

Of course there are exceptions to these rules. Steve Jobs is an example. However, I can name many of our local entrepreneurs do have the above traits. Wayne Huizenga, Mike Jackson, Mike Maroone, Jim Moran, John Offerdahl, Terry Stiles, Peggy Nordeen, Keith Koenig, and Howard Dvorkin to name a few you might know.

In the end, if you want to be successful in business, you need to have many of the above traits. it’s never too late to practice and learn them!