First the dreaded statistic: 80% of all buyers looking to buy a small to mid-sized business in California never end up doing so! A shocking statistic to most buyers of businesses. Below are some helpful hints so that you are become a successful buyer and not become a participant of the 80% statistic listed above.
Many of the helpful hints I chat about in my book Buying A California Business - The Ultimate Guide For Savvy Business Buyers! - I will cover for you below. If you follow all of these tips you will be a successful buyer of a small to mid-sized business.
WHAT MOST BUSINESS BUYERS DON'T KNOW - BUT SHOULD ABOUT THE BUYING PROCESS
1. Most buyers of California small to mid-sized businesses don't realize that 70% or more of business brokers and agents don't cooperate on their listings - meaning they don't share their information with other brokers and agents either intentionally or unintenionally by not advertising or promoting their listing(s) to other California business brokers, agents, and intermediaries.
2. Most buyers call only a few brokers or agents thinking/hoping the broker will "find" or "search" for them and find the ideal business to purchase. Most business brokers and agents are so busy trying to sell their own set of listings that they rarely have the spare time to do non-paid searches for a buyer who may not end up buying.
3. 60% of all California businesses for sale are not advertised or marketed - they are "pocket listings", "unadvertised listings" - these are listings that business brokers and agents don't have listed but know about because of their daily dealings with small business owners in California who want to sell but will not give a contract or written listing to a broker or an agent. They will sell if the broker or agent brings them a "serious buyer". What this means to you as a serious business buyer is that you have to get the word out to as many California business brokers and agents as possible to widen your "comprehensive search process".
4. In all business brokers directories only the main broker is listed - in most instances there are more (sometimes up to 10-100+ agents) that aren't listed but have great "pocket" or "unadvertised listings" that others in the office don't know about - you need to reach all these agents directly because of #3 listed above.
STEPS ALL SERIOUS BUSINESS BUYERS SHOULD DO TO BE SUCCESSFUL:
1. If you know what types or locations of businesses you are searching for you need to post and keep posted at all times a Business Wanted To Buy announcement and get the word out to as many California business brokers, agents, intermediaries, and owners as possible - you need to be highly visable - this step provides that!
2. You need to scan the new business for sale BizBen listings posted everyday at BizBen. Over 150 new listings are posted and in many instances offers and letters of intent come quick on the more popular new listings - don't miss out on these - check the new listings daily!
3. Sign up for the BizBen Email Report of New Listings of all the New Listing Reports that match your criteria. Make sure you put @bizben.com in your "Safe List" in your email program so these reports don't end up in your spam filter - you do not want to miss out on any great new listings advertised.
4. Get all new listings immediately as they are posted in our RSS Feeds of New Listings - this is a great way to get new listings right to your browser as they are listed.
5. Contact as many of the brokers and agents listed in the BizBen California Business Broker Directory with your request - what types, locations, prices, adjusted net income - what you want in your ideal business you are searching for. Make sure you get them a Buyer Profile, and a Non-Disclosure on any of their listings they may be selling. Stay in touch will all of these brokers on a consistant basis - see step #1 above - post a Business Wanted Announcement - the buyers who are more active and visable tend to be the ones who get the better businesses that are sold!
If you follow the above steps - and I mean all of them you will be successful in buying the best business that match your personal needs and search criteria! |
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Peter Siegel, MBA - BizBen Founder, Author, ConsultantPeter Siegel, MBA is the founder and President of BizBen.com. A nationally recognized author (3 books and a syndicated small business blog) and expert consultant (national SBA small business specialist) on selling and buying businesses, he provides professional assistance to business brokers, agents, and business owners in getting maximum response in their advertising & marketing efforts in regards to selling small to mid-sized businesses. If you are selling a business and need professional assistance utilizing high performance advertising, marketing, and highly effective strategies, or individual customization with your BizBen Power Search options in buying a California business, you can reach him at 866-270-6278. |
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