Most people aren’t sure how to go about buying a business. Because of this they will either start a business of their own, or if they already own their own business they will look to add one customer at a time or launch a new product or service and grow it from the ground up. We contend buying a business is the best way to either become a first-time business owner or to grow your existing business more quickly or diversify your current business. We have coached dozens of clients on how to buy a business right.
As small business owners themselves, Jack Mencini and Adam Sonnhalter have coached hundreds of small business owners by being co-partners of Maximum Value Partners www.maximummvp.com. They celebrate a 15+year collaboration with a tremendous amount of experience when it comes to offering insights on buying businesses and helping small business owners on their road to success.
In this week’s segment of Dirty Secrets of Small Business, as cohosts, they share with their listeners real Intel on how to go after buying a business in an way that is efficient and cost effective.
If you are looking to be a business owner for the first time, how about approaching the owner of the business you work for currently? Many small private companies have no succession plan in place and you’d be surprised how many owners would welcome this type of inquiry from a good employee. I know what you’re thinking, “I can’t afford to buy this business!” Oh yeah, how do you know? Most companies aren’t purchased with a pile of cash at the consummation of the deal. In fact, most small private companies use what’s known as “seller financing” where the seller acts like the bank in the deal allowing the new owner to pay for the purchase over time with the profits of the business.
Learning how to go about researching and finding that company to buy is a talent that Jack and Adam coach their clients on in every situation. Jack says that it is not difficult to buy a company and if you have enough business savvy to buy a competitor or diversify your business operations by purchasing another small business in a somewhat related area of your current business.
When you buy a company, you are adding more customers and super charging your growth through this acquisition. Buying an existing company with a portfolio of customers rather than beating the bushes to look for new clients is a great strategy to help you successfully grow your business if you follow the advice of Maximum Value Partners.
In their years of coaching small businesses, Jack and Adam have a stellar record of providing insight, direction and good counsel which includes helping business owners prepare for the day that they shake hands with a business owner whose company they are acquiring to add to the growth and profitability of their own company.
If you are itching to buy a business to start your first journey of owning a company or you are on the path to increase your profitability by acquiring a company, listen to the entire podcast of Dirty Secrets of Small Business and the January 30th podcast. Access all the Dirty Secrets of Small Business podcasts on iTunes or at http://maximumvp.com/dirty-secrets-small-business-radio-show-podcast/
Do you have any How Questions of your own to email to Jack and Adam? Do it by sending your questions to firstname.lastname@example.org or submit a question on their website at http://maximumvp.com/how/.
If you have a success story or a question you would like to share, email or call (email@example.com or 877-849-0670). You can also call in during the show each week at noon (EST) – 1:00 pm on WINT 1330 AM, call 440-946-9468 to ask your question to the Maximum Value Partners’ coaches!