Direct Mail Secrets For Business Brokers – Part 1

Video Series - part 1 of 3

Direct Mail Secrets For Business Brokers

If you’re anything like most business brokers you tried attracting business with direct mail and got disappointing results, or worse.

It this video, I’m going to reveal one of 3 Direct Mail Secrets For Business Brokers that I’ve discovered by hard-headded determination.

 

I hope you like part 1 of this mini video series where I’m going to reveal a few of the Direct Mail Secrets For Business Brokers.

If you like what you see on the video and want me to send you a few other videos, leave your information in the area provided below.

 

 

Marketing Minute

In today’s day and age, many of us tend to run to the office, jump behind the desk and begin pecking away – working our fingers to the bone pecking at a keyboard, or have the phone stuck to our ear for hours on end.

I’m just as guilty and anyone when it comes to working like a dog …. We all do it.

Finding the time to watch and educational video is difficult to say the least.

Well – except this one – I have been watching this guy Andrew Lock from www.HelpMyBusiness.com for about 6 years. The guy is fantastic.

He does a masterful job of sharing valuable and useful information, and at the same time is very entertaining.

His English Accent is Hilarious!

My wife and I had the unique opportunity to attend one of his workshops back in 2011 at the cost of $10,000 for 3 days, (I never laughed so hard and learned so much in my life!).

I’ve been watching his videos ever since.

I encourage you to click on the link and watch the video – Please comment back and let me know what you thought of it and what you got out of it.

#224: Local Business Marketing, Chris Farrell Explains How to Write Emails That Get Read, and a BIG Marketing Lesson from Disney

Buying a Professional Practice Business

Tips for Buying a Professional Practice Business

Every month receive a few requests from Financial Planners, Money Managers, CPAs a few Insurance companies interested in buying a Professional Practice Business
… otherwise known as a “Book of Business.”

Unfortunately it’s a very difficult task because there are a lot more people interested in buying a professional practice business than there are sellers. Furthermore, just an off-the-record mention of a person thinking of selling their book of business  brings buyers out of the woodwork.

Long story short, they’re hard to come by.biz-practice

So what’s the point in writing this article?

The point is, there is MILLIONS to be made by people who build up a practice business, sell the book and do it again.

As the GURU’s say in the House Flipping business – “Rinse and Repeat”

That being said, if you have the opportunity to buy one, here are 5 things you need to watch out for so the purchase happens in a positive way instead of a nightmare:

1. Make sure there is a retention clause in the agreement.
A retention clause in a purchase agreement allows the buyer to withhold a portion of the purchase price until it is determined that the project, goods, or contracts meet the specifications of what is being sold.
In another words, the seller can’t collect all the money and leave on the next plane out of the country and vanish.    >> Dictionary Explanation of Retention Clause <<<

2. Transition of the practice to the new owner, (you) is critical and must be done in a way that the clients don’t disappear into the night. The best way to accomplish this is to make the sale look like a merger. Again, if the seller is going to jump on a plane the day after closing and fly off someplace, i’d be suer cautious and make sure there is a LARGE holdback of funds retained for release sometime on the future.

3. Thorough review of all paperwork is essential!   You must have absolute clarity on what you’re buying! Leave no stone unturned, and let no question go unanswered!

4. Complete a background check on the seller.
Google the owner and the business name and see what pops up. Check to make sure any business license or credentials are in good standing and no ethic violations have occurred against the owner or any partners. With the internet now-a-days, there are no secrets. If you don’t want to do the background check, hire someone to do it for you.

DON’T skip this step – regardless how well you know the person, or what you’ve heard about them. Their social profile will tell you a lot about their character. Do Your Homework on the Seller.

My Grandfather used to say , “You can whitewash the stripes of a Zebra, put a saddle on it’s back and call it a horse, but all you really have is a zebra with a saddle on its back and the stripes will come back after a good rain.”

5. Make sure all employees are under a non-compete and non-disclosure. The last thing you want to have happen is you invest a bunch of money into a company only to have the top employees  walk out behind the seller, taking their clients with them and going into business of themselves.

There you have it …. 5 Tips for Buying a “Practice Business.”

I wrote a book on the 5 Fundamental Elements of Every Successful and Sellable Business.
It is loaded with very good information, and if you build your business around the 5 Fundamental Elements, you can easily scale your business up quickly.
To get you copy, go to Amazon.com and type in my name Paul Forsberg.
Get the book – you’ll be glad you did.

McDonalds Is Going Broke – They Should Read My Book

The world’s biggest fast-food chain is facing its fourth year of U.S. sales declines.

The Most Successful Restaurant in The Word … McDonalds Is Going Broke – They Should Read My Book and Learn What They’re Doing Wrong McDonalds Is Going Broke

According a recent Bloomberg article written by Leslie Patton titled:

McDonald’s Turnaround Fails to Get More Customers in Door

https://www.bloomberg.com/news/articles/2016-10-26/mcdonald-s-turnaround-fails-to-get-more-customers-in-the-doorhttps://www.bloomberg.com/news/articles/2016-10-26/mcdonald-s-turnaround-fails-to-get-more-customers-in-the-door

They’re blaming the competition and everything else for their sluggish and shrinking sales. When all they need to do is look in the mirror and take personal responsibility.

Personally, I love their fish sandwiches and happen to thing they make the best fish sandwiches in the world. However, that being said. over the past five or so years, every time I visited a McDonalds, I would mutter under my breath “It look like McDonalds is Going Broke,” on my way out.  The reason being, is I felt my business was not appreciated when at the counter, was forced to wait a LONG TIME for my meal, and to be honest, I felt like the people working there didn’t care one way or the other!

I don’t go to McDonalds any longer – Taco Bell is faster and they appreciate their customers.

I wonder when the last time leadership has actually walked into any one of the thousands of them in existence and tried to get a meal.

If they did, they would get a VERY-RUDE awakening.

It used to be you could go into McDonalds and be greeted with a smile, and hear “Welcome to McDonalds, May I Take You Order?” You immediately felt welcomed and appreciated.

Now, while you might hear the “Welcome to McDonalds” pitch, it comes from someone who is obviously not happy to be there, they say it with contempt in their voice, and  what was once a smile has been replaced with a scowl.

Add to it the fact that no longer can you get your order delivered rapidly – it is taking longer and longer.

In my opinion, it is a classic case of lack of Leadership and loss of Focus.

I delve into this in my book “The 5 Fundamental Elements of Every Successful and Sellable Business.Business Growth
The unfortunate thing is, I actually used McDonalds as one of the success stories on the importance of Front End Sales. However, that being said, historically, regardless of the business or location, if a business looses 3 of the 5 Fundamentals, the business will fail.

According to this article, it is obvious McDonalds is missing TWO, and quite possibly THREE of them.

ONE: Leadership.
TWO: Front End Sales
THREE: Back End Sales and Product Fulfillment.

Watch McDonalds – if they don’t take a “Cold-Hard-Look” in the mirror, they will get run over by the competition and be nothing more than another fast food drive through with terrible service.

I tell you one thing …. If I had money in the Stock Market, I’d Short McDonalds stock! McDonalds is Going Broke if they don’t go back to basics soon.

96b0494afa4a1908ab2cf6726e816149470ae14e450d0de351

The Twenty Hour Work Week

And What It Means To Your Business

Over the past 35 years I’ve built or bought 15 different businesses. All but one of them was a successful venture. However, those successes came at a steep cost. I’m on my 3rd marriage, and up until 4 years ago, my kids didn’t have much use for me, among other things. Why am I telling you this? Because I know, first hand, the sacrifices we owners make, weather we knew that going in or not!

4 years ago, I bought this business brokerage office and it changed my life.
How it happened is this: The guy I bought the business form had been a business broker for a very long time. He was somewhat of a pack-rat.
He had files dating way back into the 1990’s and I had the unique opportunity to review hundreds of old business files.

While Undertaking The Process of Culling Records, Very Distinct and Indisputable Patterns Began to Emerge!

I Share Them With You, Because They Are Vitally Important!!

This may, or may not come as a shock to you, but here it is …

In Every Instance: If the business owner worked in the business for More than 20 hours per week, the business suffered in one way or another, and in the end, the overwhelming majority of them end up closing their doors for one reason or another.

The business went BUST, or the owner just closed the doors in defeat! They may have tried to sell the business, but no buyers showed up. If they tried to hand it down to the future generation, well, I’m not willing go there in this blog.

In “Stark Contrast”

In Every Instance: If the business owner worked in the business for Less than 20 hours per week, the exact opposite happened! The business flourished and operated smoothly and profitably. The business was valuable and easily sold quickly and at the full asking price or slightly higher.

Needless to say, after noticing the pattern I immediately began working on changing the way I did my own business and within 6 months, I got my workweek down to 20 hours or less!

Now:

  • The business operates without me
  • My 3rd wife (yes 3rd!) loves me
  • My kids like me again
  • The grandchildren know who I am!

Long Story Short …… The Purpose of a Business Is To Give The Business Owner More Time and A Better Life.
If you’ve been working like a dog in your business and your life isn’t what you believe it should be …

There is a way out, and I know how to get you there.

I Create a Free Report and detailed my findings and you can get a copy of it for FREE and without obligation by clicking the report title below.

The Twenty Hour Work Week and What It Means To You And Your Business.

 

The 5 Fundamental Elements of Every Successful and Sellable Business

Business Exit Timing

It Doesn’t Matter How Big or Small The Business. It Doesn’t Matter What Product or Service You Deliver.
Every Successful Business In The World Has All 5 Fundamental Elements Working Together, and Every Failed Business in History Does Not!

A message from the author-

The business failure rate in this world is staggering, and the sad truth about the businesses that do make it, only a few can be sold for Top Dollar!
“Entrepreneurs work hard – sacrificing their time, family, friends, and lord knows what else. I mean, we really work our tails off and the last thing any of us want to do after all of our hard work and sacrifice is end up being forced to close the doors in a liquidation sale, or when the time comes, end up selling the business for pennies on the dollar. None of us can afford the pain and anguish of being forced to clip coupons to get by in retirement because we failed to plan ahead of time.

You owe it to yourself to get the best help and advise you possibly can so you’re not taken advantage of and embarrassed – READ THIS BOOK – and Discover What You Need To Do Starting Tomorrow So You Can Sell Your Business In 2-5 Years And Walk Away Wealthy.”

Business Exit Timing

Are You Thinking of Selling Your Business?

Business Exit Timing is of Paramount Importance if You’re Thinking of Selling Your Business at Anytime Within the Next 3-5 Years.

…. And Here’s Why ….

The odds are very difficult and they are stacked against you!

If you take any 100 businesses and put them up for sale, you will find only 20% of them will ever sell, and the remaining 80 will end up closing their doors in liquidation sale.
Leaving a trail of broken promises, shattered dreams, and jobs lost.

Get The Business Exit Timing Right.

The biggest mistake most business sellers make is that they don’t have an exit strategy.

Unfortunately most business owners wait until a random catastrophic event occurs, and unfortunately, Murphy’s Law shows up, and it happens at the worst time. It happens when there is a downward trend in business for one reason or another and the business isn’t making as much money as it should be.

So what do you do to correct this? “Business Exit Timing” is Critical and that requires you to have a Business Exit Plan.  

Here’ How To Get Started: 

Get The Books in Order.

You need to have your books in order – STOP living out of the business!

Most business owners live out of their business so they can decrease their tax

liability. They run auto expenses, travel and entertainment, cell phone bills, and other expenses through the business.

This strategy is legal, ethical, encouraged by the IRS, and of course, edified by the CPA’s.

The problem with doing this is, these expenses need to be added back to the business bottom line profits, and the more you add back, the more doubt comes into the picture from the buyer.

A much better way of doing this is, pay the expenses out of your personal account and take an owner draw from the business. This keeps the books clean and concise. Yes, you might have to pay a little more tax, but the payoff will dwarf the amount of tax you pay when you sell.

It’s CRITICAL to know the numbers and have your books in order.

B.S. Books will only get you B.S. offers when you sell – period.

Build Your Brand

About 95 percent of business owners have no idea what their brand is or what it means. While branding isn’t everything, it certainly has a lot to do with business value when it comes to “Good-Will.”

Here are 5 Brand Fundamentals:

  1. Brand Absence: customers aren’t familiar with your company, or only use it because it’s convenient to their location.
  2. Brand Awareness: customers know who you are and are familiar with you and your company.
  3. Brand Preference: customer prefer your company’s products and services over the competitors.
  4. Brand Insistence: customers are loyal to your brand and they refuse to use competing products and services.
  5. Brand Advocacy: customers become raving fans and recommend your products and services to others.

Each and every one of these are major contributors to the value of “Good-Will” and when you get to the level to where people are referring your business and service to others instead of you selling to them, the money begins to come in droves.

Know What Makes Your Business Valuable.

In order for your company to look attractive to a buyer, you need multiple

sources of income, a healthy customer base, and a solid management team in

place.

5 Fundamental Elements of Every Successful and Sellable Business

I wrote a book titled “The 5 Fundamental Elements of Every Successful and Sellable Business.” It is available on Amazon in print and Kindle version.
(I’m humbled and super proud to say it made the Amazon Best Seller List the day it was released!)

Buyers are buying the future income stream of the business, so they look for a large customer base, brand awareness, systems in place and upside potential.

Buyers will readily buy a business that has management and employees in place because they don’t want to buy a job.

Keep It Quiet.

Selling a business is somewhat of a “Clandestine” operation and the fastest way to ruin a business is to let the world know the business is up for sale! 

Employees will go elsewhere, vendors will become concerned about getting paid and about the new owner, and customers will miraculously vanish. 

The only people who are happy to hear that you’re selling the business is the competition and you can bet your bottom dollar they will be shouting it from the rooftops for everyone to hear.

Selling businesses is very different than selling houses.

Many people think it’s similar, but they are two completely different animals.

The real estate model is the more people you tell, the more houses you sell. In the business brokerage industry, the more people you tell, the more businesses you kill.

Hire a Professional Business Broker.

As I mentioned earlier in this article – Selling a Business is somewhat of a “Clandestine” operation, and this is where a Professional Business Broker comes in.

Not all Business Brokers are Created Equal – because, as in all professions, there is competence and professionalism, and there is incompetence and unprofessionalism.

therefore, as you would do in any situation that you need to hire a professional, you need to do you homework, and you need to ask questions and qualify them.

In my business, I have a database of over 2,000 qualified business buyers and am associated with another 1,400 Professional Business Brokers who have their own list of buyers.

In every instance, buyers must sign a “Non-Disclosure” agreement before any information about the business is released.

A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement (SA), is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties will not share or distribute and information shared.

CAREFUL! Not All Business Brokers Are Created Equal:

Many business brokers have about the same rate of success as business owners do in selling their own companies. The key, to your success is finding a business broker with a proven track record.

Here are 9 questions you need to ask BEFORE you hire a Business Broker:

  1. Do you own the firm?
  2. What is your closing ratio?
  3. How many listings do you have now?
  4. What businesses have you sold and in what industries?
  5. Do you have a database of buyers and how many are on it?
  6. Who decides how much money is spent on marketing my business for sale?
  7. On average how much more can you sell my business for?
  8. Do you have any testimonials you can give? (“If they can’t give you any testimonials …. run”)
  9. What are your list of buyers looking for?

Ask yourself the following questions to determine if you should sell your

business and when should you sell:

  • Do you still love what you do?
  • How long have you been in business?
  • Do you truly feel like you have a business?
  • Are you still passionate about your business?
  • Do you still have a burning desire to succeed and lead?
  • Are you still creative and able to continue to grow your business to the next level?
  • Do you still work IN the business or can you work ON your business?
  • Are you growing market share?
  • Is your business trending up?
  • Are you making a profit?

If you answered “yes” to most of these questions, then your business is still in the positive phase and it is a GOOD time to sell, or at the very least, come up with an exit strategy.

You might be asking yourself, “What do you mean?
If I still love my business and it is doing well, then why in the world would I want to sell it now?

The answer is because this is the best time to do so.

Business buyers want to buy a business that is thriving not dying and the biggest The mistake sellers make is they wait too long before selling their business.

Here are some additional questions you should consider in order to determine if

your business is in a positive phase or a negative phase:

  • Do you dread going to work?
  • Are you working in your business?
  • Do you feel like you don’t own a business, but the business owns you?
  • Do you lack the passion for your business that you once had?
  • Are you burned out?
  • Do you feel your customers and employee are becoming a hinderance to you
  • Do you find yourself snapping and arguing with your employees, or customers?
  • Are you having a difficult time making decisions?
  • Is your business trending down or has it become stagnant?
  • Are you losing money or just breaking even?
  • Is the business or are you personally in debt?
  • Are you worrying about your business 24/7?

If you said “yes” to more than just a few of these questions, your business is in the negative phase and it’s time for you to get out before it’s too late.

Business Exit Timing is important for you to sell your business for Top Dollar.

Do you have a “Business Exit Timing” Strategy of Business Exit Strategy in place?
Please share

Business Rule # 20

The Less You Work, The More You’ll Make!

Business Rule Number #20.

The Less You Work, The More You’ll Make!

How to Significantly Increase Business Profits and Value – By Working Less Than You Do Now.

Many small business owners focus on growing their profits, while others are obsessed with sales goals. Business Rule #20 is the key.

Both of them work their butts off – sacrificing their time, time away from family, friends and Lord knows what else.

They mistakenly believe that the only thing that matters is bottom line profits when the time comes to sell their business.

While bottom line profits are important, there is a lot more that goes into the value of a business than just bottom line.

I have found Business Rule #20 is the secret sauce.

Yep – if a business owner works more than 20 hours per week in the business, the value goes down – the more hours, the lesser the value.

And, the exact opposite is true. Every hour less than 20, the company value increases by tens of thousands and thousands of dollars.

An important goal for an entrepreneur to set for themselves is to set the business up in a way that it runs itself without their constant and direct daily involvement.

A business that is not dependent on its owner is worth a whole lot more money than one that is – period.

It allows you complete control over your time so that you can choose the projects you get involved in and the vacations you take. When it comes to getting out, a business independent of its owner is worth a lot more than an owner-dependent company.

Below is a list of 5 simple steps you can take to begin increasing the value of your business.

  1. Give The Employees A Stake In The Outcome

Give then a piece of the profits. Spell it out in simple terms, and let them participate.
It will give them an “ownership” mentality and their outlook will change dramatically.

If you’re wondering how to figure out an amount, this is what I did for one of my companies –and it worked like a charm: Figure out how much the business needs to operate including your pay as the owner and set it as the benchmark. All profits over the benchmark, I took 60% and divided up the remaining 40% per the revenue percentage generated by each employee.

  1. Get Them To Walk In Your Shoes

Here is a simple management technique that will get your employees to begin “thinking” like an owner: Every time they ask you a question, answer their question with a question: “If you owned the company, what would you do?” By forcing your employees to walk in your shoes, you get them thinking about their question as you would and it teaches them the habit of thinking like an owner. Soon, they will begin solving their own problems.

  1. Delegate Your Responsibilities.

One of my coaches used to say, “If you can’t change the outcome, delegate it.”

Identify the products and services which require your personal involvement. Make a list of everything you do and score them on 1 to 10 scale.

Assign a 1 for easy to teach and a 10 for anything that requires your personal attention.

Start with the smallest numbers first, and begin teaching and delegating. Your employees will feel empowered and thank you for it, and your workload will shrink significantly.

  1. Create Automatic Customers

Are you the company’s best salesperson? If so, you need to fire yourself as soon as you can.

Think about how you can create a recurring revenue business model where customers buy from you automatically. Service contracts and monthly memberships are two ideas that come to mind for this article.

Businesses with recurring revenue are worth a LOT more than those that don’t have them and the difference is significant.

Once you delegate most of your daily activities, you’ll have plenty of time to think of how to create automatic customers.

  1. Write An Instruction Manual For Your Business

Finally, write a Policies and Procedures manual.

These are a set of rules employees can follow for repetitive tasks in your company.

This will ensure employees have a rule-book they can follow when you’re not around, and, when an employee leaves, you can quickly swap them out with a replacement to take on duties of the job.

You-proofing your business has enormous benefits. It will allow you to create a company and have a life.

Your business will be free to scale up because it is no longer dependent on you holding it back, and best of all, it will be worth a lot more to a buyer when you get ready to sell.

 

Why Most Businesses Cannot Be Sold

and What You Can Do About It

Why Most Businesses Cannot Be Sold and What You Can Do About It ….

Most businesses cannot be sold because they never get out of the Storming stage.
There are 4 distinct phases in business, and the Storming stage is phase 2.
There was a well known professor named Bruce Tuckman, who identified four distinct phases of team development: forming, storming, norming, and performing. … Tuckman proposed that all are inevitable and even necessary parts of a successful team’s evolution. 
These phases also exist in business, and unfortunately, most businesses cannot be sold because they never get out of the Storming stage.
 I explain it in the video and tie it in with The 5 Fundamental Elements of Every Successful and Sellable Business.

“Entrepreneurs work hard – sacrificing their time, family, friends, and lord knows what else.
I mean, we really work our tails off and the last thing any of us want to do after all of our hard work and sacrifice is end up being forced to close the doors in a liquidation sale. Or worse,  when the time comes, end up selling the business for pennies on the dollar.

This video reveals why most businesses cannot be sold and what you can do about it.

I hope you enjoy it – if you have questions, you can Contact Me By Clicking This Link.

 

How To Sell Your Business

Walk Away Wealthy

How To Sell Your Business & Walk Away Wealthy

So many people think selling a business is like selling a house and they have it completely wrong! A house sells itself. All real estate agent has to do is listen to a prospective buyer and show them what they are looking for. Realtors don’t sell houses -they show them. The house sells itself. How To Sell Your Business

The video you are about to watch shows you the exact process you need to know if you want to know how to sell your business.

Once you understand the process, you’ll know exactly how to sell your business and you will then be able to plan ahead so when you do sell, you might just walk away wealthy.

 

 I hope this video helps you understand the business sale process a little better than before you watched it.

You worked hard for a long time in your business – sacrificing your time, your family, your friends, and Lord knows what else – The LAST thing you want to do after all those years of sacrifice is to sell your business for less than it’s worth.

You simply can’t afford the pain and embarrassment that would go along with being forced to pinch pennies and clip coupons for the rest of your days after working so hard for so long.

A little business exit planning goes a long – long way.

I’m putting together a weekend workshop for business owners wanting to learn how to sell their business themselves for top dollar.

Please feel free to contact me if you’d like to learn more about the workshop.