Share This Info:  

When Seemingly Smart Buyers Make Fatally Not So Smart Decisions!


Buying A Business Strategies

I once closed a deal where the seller was like any other seller, wearing 6 hats at once and doing his best to survive. For any of us who have owned our own businesses that had employees, rent to pay, fussy clients to appease, books to deal with, accounts to balance, checks to write, suppliers to pay, etc, you get the picture. We learn early on that rocking the boat means having to deal with the ramifications. I'm not saying that sometimes it isn't necessary but not on the first day you take over a business.

If you are buying a business, you probably have really good ideas about changes you would like to implement and ideas to sell more, be more efficient and more organized. All great, except that I caution you to be careful about the toes you are stepping on today they will be attached to the feet that will walk out on you tomorrow.

This is exactly what happened to my buyers. On the first day they took over they were so critical of the previous owner and the way the business was set up and being run, they managed to offend almost everyone in the business on the first day. As a new owner of an existing business your primary job on day one is to observe and silently note the changes you would like to see over a reasonable period of time.

In this case, the buyer thought she was criticize the seller but in fact it was a key employee that had organized much of the front office and this employee is critical in the success of this business and well known in the industry for being very good in her field. If you take over a business and you aren't happy with one or some of the employees, please exercise some common sense! You will need to fully understand the business you just took over and find a suitable replacement, this takes time!

These buyers displayed intelligence throughout the deal but something went very wrong when they took over and they felt that they had to show everyone "who's boss". They insulted the manager who is an excellent sales person and drives most of the business, decided to change the contract of another key person who now doesn't want to be associated with them and reduced the pay of another skilled key employee who performs one of the most popular services.

The bottom line is it's very easy to criticize people from an ivory tower but until you walk a few miles in their shoes I suggest you keep your attitude friendly, your ears open and your mouth closed until your ready to deal with the ramifications.

Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business

Contributor:

Christina Lazuric, CBI
Areas Served: Orange County
Phone:  949-257-7823 Cell, 949-257-7823 Text
Premier Brokerage for Selling Orange County Service Based Businesses since 2005! C.B.B. provides a step by step approach to Business Brokerage, Mergers & Acquisitions, Business Consulting and Valuations. We work on creating the best possible presentation for your business! Call today 949-257-7823.

Comments Regarding This Blog Post


I had a similar situation with buyers who bought a cafe on the first floor of an office building. The cafe essentially had a captive audience of the occupants of the building, as little traffic from the street wandered into the cafe. The new buyers immediately raised all the prices, and even started telling customers that they would charge them extra if they took too many napkins (seriously). Anyways, I got a call from the buyers saying the business had really gone down hill, and after talking with them realized what they had done. My advice to new buyers is to keep the business as it was before, you can clean it up, but don't make too many drastic changes, and always remember customer service, because people have options, and once they leave, they are difficult to get back.






  Helpful Resources To Assist In Selling And Buying California Businesses
Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California

Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.

Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Helen Yoo, New Century Escrow - Escrow Services In Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

Joe Ranieri, Business Broker: Orange, LA County Areas

Having owned retail/restaurant businesses for over 20 years, my interest turned to listing and selling businesses rather than owning them. I specialize tend to specialize in high volume restaurants, fast food independents and chains, bars, and liquor stores. Call me direct Or Text 714-292-5448 Cell.

Elizabeth McGovern: Escrow Services - San Francisco Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.

Joanne Weber, Broker - Preschool Specialist - Southern California

The Ryan Craig Company is in its 35th year as the recognized expert in Southern California, dealing exclusively in the sale of preschools, Montessori schools, day care centers, and private schools. Our extensive list of references speaks for itself. Phone Joanne at 818-760-3684 for more info.

Jack Oh, Business Broker: LA, Orange Counties

Business broker and real estate services in the Los Angeles and Orange County areas. 10 years experience with great negotiating skills. To sell a business or buy a business in the LA or Orange County Areas phone Jack and his team at 562-787-4989.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
Deposits With Business Purchase Agreements: How Much? Structure? Refundable?

Purchase agreements when buying or selling a small business can be tricky. A top Southern CA Business Broker discusses this topic including multiple strategies regarding deposits with business purchase agreements. Lee Petsas (Orange County Business Broker) at 714-363-044 contributes this blog post

Can A Business Seller Back Out Of Escrow If They Simply Change Their Mind?

Can a seller of a small business back out of an ongoing escrow? Probably, yes, it all depends how far along the escrow is, which will dictate how messy things will get for both owner & buyer. Joe Ranieri (Southern California Business Broker) gives his feedback with others on this BizBen Discussion.

Live Workshop: How to Find Profitable Businesses For Sale Not On The Market

Live Workshop For Business Buyers: Find Small Businesses Possible For Sale Not On The Market. This Workshop Is In Southern California. Every Month On Saturdays - 1:30 PM to 4:30 PM. Call 805-428-2063 to RSVP. Willard Michlin, CPA will be presenting this workshop. Click On Link For Schedule & Times.

Buying A Business With Partners Or Family Members: Pros And Cons

Buying a business with a partner/partners, family members can make one think twice about ever doing it twice! However in this BizBen Discussion Post Joe Ranieri (Orange County Business Broker at 714-292-5448) chats about identifying roles, defining goals, attorney visits, and other relating issues.

What Steps Do I Take When Closing A Business That Doesn't Sell And I Close?

Every business broker knows that a listing taken is not a listing sold, in fact the ratio of listed vs. sold could be discouraging if you really thought about it. Joe Ranieri (Orange County Business Broker) discusses what you should do if you finally have to close the doors and call it quits.

Due Diligence Checklist: 10 Key Items To Investigate When Buying Businesses

Buying a California small business involves reviewing due diligence checklists so buyers can learn enough to determine whether to proceed with a deal. Here's a due diligence checklist. Peter Siegel, MBA (BizBen ProBuy Advisor & Business Purchase Financing Expert) at 925-785-3118 shares his views.

Business Purchase Financing Help - Expert Tips For Faster SBA Loan Approvals

Business purchase financing advisor Peter Siegel, MBA shares his views on SBA loan financing. He explains the nuances of the SBA loan process when considering business purchase financing or getting pre-qualified. Reach Peter Siegel, MBA direct at 925-785-3118 regarding SBA & Non SBA Loan Financing.

Purchase A Business With Limited Or No Cash - Financing Tips For Buyers

Purchasing a business with no money down can be difficult, but not impossible. Financing a business purchase or down payment can often be accomplished with these strategies from Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 925-785-3118.


Escrow Services From Helen Yoo New Century Escrow
BizBen Index Sales Stats
Escrow Town And Country Southern California
Willard Michlin Due Diligence Services
Facebook
Twitter
Linkedin
Vlogs and Podcasts
Advertise On BizBen
Business For Sale California Stats
New Postings Reports On BizBen Sign Up
BizBen ProBuy Program
California Educational Events Buying And Selling Businesses
Instant Email Alerts On BizBen

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Mentoring In How To Buy A Business - Tips From Expert Willard Michlin, C...
Read More News
Purchase A Business With Limited Or No Cash - Financing Tips For Buyers
Read More News