David, I’ve contacted roughly 5 different brokers about 5 diff businesses for sale, and they all refuse to talk to me at all unless I deposit $5-10k in good faith to “show them I’m serious”. Are all of these scammers, or could this just be the way they do it in America?
Well, I can tell you I talk to people all day long all over America and you’re the first person who’s told me of this kind of experience. I see you’re in Houston, I have several buying clients in your city who’ve been dealing with brokers and none have been asked for money before an accepted offer. I’d love to know more about the types and sizes of businesses you’re inquiring on, could you connect with me at dbarnett (at) alpatlantic.com
I wanted to get a gas station when I'm older and I still dont fully understand how stuff like inventory would work, since I'm the owner would I have to be the one to order new inventory and products or can someone else do it like the manager?
It all depends on whether you set up the systems to properly train those employees. Some suppliers will even order for you and stock your shelves in some cases.
There are definitely some brokerages that are focused on online businesses. Check out the Buying Online Businesses podcast with Jared Krause to learn about some of these.
I'd want to make sure it had recovered from the pandemic first, otherwise you'll need cash to finance losses over and above your investment to buy it. Financing may also be a problem right now.
Yes, keep saving until you have three months of living expenses. Then start a new, separate savings account and build it up to several tens of thousands of dollars or get some partners who believe in you enough to put down real cash. Buying a business when you're barely over broke is not realistic.
Yeah did you buy the business? how is it going so far. Would love some insight from your experience. How much did you pay for it? was it a cash purchase or SBA loan. If SBA, what % down did you put? Were the finances of the business after you took over, in line with what was shown during due diligence? Are you an absentee owner or balls deep running the business on a daily basis? Any of these questions you answer will be much appreciated. Thanks.
Thanks David. Good advice, useful information clearly explained. I am soon going to buy your 'Franchise Warnings' book as part of my continuing study of business and related topics.
He once invited me to be an affiliate to help him sell his program in exchange for a commission. I asked for access to his program and went in to see what it was all about. I declined to become his affiliate after seeing what he was teaching.
Thanks Jean. Don't forget to like and share videos you enjoy. It helps others to find them. And you may enjoy my email list. I send things out all the time www.DavidCBarnettList.com Cheers
Do I need to hire my own broker as the buyer? The seller's broker represents the seller, not the buyer, is that correct? What is the typical buying practice in the US? I'm from the Netherlands.
No, you don't need a broker. It's not like real estate. You find a business for sale and then use a team of people to help you analyze it. Lawyer, accountant, or other business advisors like me. I keep getting this question though so I'm adding it to the list.
Hey David, I've recently decided to buy a business and contacted an agent who has very very cheap listings on his website but when I decided to check his profile on Finra (Brokers check) nothing comes up for him and his firm? I am not sure if you know Finra but it's a website where people check their brokers to see if they're legit. Why do you think this is?
It's because he's likely a business broker or real estate agent and finra is for stock brokers. Try checking the state or provincial real estate licensing body to see if he's listed, if he's not, then you need to find out if there is any licensing requirement in your jurisdiction for business brokers. Some places have none.
I am looking to hire a company akin to yours to actually fully audit any business that I would like to buy. & ultimately tell me if this business is a yea or nea..
Please put your self promotion at the end of each video.....it’s torture to have to listen the same pitch on every single video, over and over again ......there is a reason you have so few views......
No. This channel is an advertising medium for my business. If I could not make a living doing this, there would be no videos as I’d be busy selling beanie babies on eBay or something. There are few views because relatively few people are interested in the topic AND because the channel is not monetized, there is no incentive for click farm fraud to inflate the statistics.
R u kidding? There are tons of people interested in the topic. try this experiment for 6 months.......make great videos filled with great content and at the END of the video say "if you would like to see the products and services that I have to offer then click the link below.....have a great day!" @@DavidCBarnett
