Successfully Navigating Seller Financing
Only a small percentage of the population is able to go through life without using some form of financing at some point. Most people have little choice but to finance everything from their home and car purchases to their college education. Now, with that stated, most business owners would love to receive an all-cash offer for their business. But the reality of the situation is quite different. The facts are that owner financing is very common, and it is sometimes the only way to put a deal together.
Sellers have to be ready and willing to entertain the idea that they may, ultimately, be called upon to handle some aspect of financing if they want to sell their business. It surprises many to learn that if a seller is not willing to finance the sale, then buyers begin to worry and may even see this as something of a “red flag.” The reason for this is that many buyers feel that if a business is a solid investment, then the business will be profitable and repaying the seller should be no problem.
Buyers may worry that if a seller isn’t willing to help with financing there could be a “hidden” problem with the business. It might occur to them that sellers are “jumping from a sinking ship.” It is important that sellers keep this important aspect of buyer psychology in mind when addressing whether or not they are willing to finance.
Buyer psychology plays a major role in another aspect of seller financing and that comes in the form of collateral. Sellers may want to have some form of outside collateral to secure the loan on their business. While this may seem perfectly understandable to the seller, buyers can have something of a nervous response to this issue as well. As much as buyers worry that a seller’s refusal to provide financing is a red flag, the same holds true for sellers who seek collateral. Once again, the concern is that if the business was healthy and thriving there should be no need for collateral. The buyer is left wondering, “What is going on here? How worried should I be? Why do they need collateral if this business is so great?”
Typically, buyers are “maxed out” when buying a main street business. They are allocating most of their available funds to the down payment on the business. That means they will be unlikely to “push all their chips in” and gamble everything by also putting up the home, retirement funds or other collateral in the process. Sellers need to see the situation from the buyer’s perspective and remember that a collateral requirement could mean that if the business fails, the buyer could be left with nothing.
Navigating the complex interaction between buyers and sellers is no easy feat. It requires a careful balancing of several different skills, ranging from understanding finance to psychology. Working with an experienced business broker can help buyers and sellers connect and find workable agreements so deals can get made.
Copyright: Business Brokerage Press, Inc.
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Four Common Seller Mistakes
Sellers are just like everyone else in that they can make mistakes. In this article, we’ll explore some of the most common mistakes that we see along with some of the repercussions.
1. Not Seeing the Buyer’s Point of View
The first major mistake that sellers make is that they simply fail to look at the situation from the buyer’s perspective. One of the smartest moves any seller can make is to step back and ask themselves two key questions.
“What information would I expect to see if I was thinking about buying this business?
“Would I trust the information being presented to me if I was the buyer?”
While there are many other questions sellers can ask to help reframe their thinking, these two simple questions can orient a seller’s thinking towards a buyer’s perspective. Additionally, investing the time to understand the buyer’s position can help avoid a range of problems and help smooth out the negotiation process.
2. Neglecting the Business During the Sales Process
Another seller mistake we see is that the seller neglects the business during the sales process. This can have significant negative long-term consequences. Sellers must understand that they must maintain the day-to-day operations as though the business is still theirs. The old saying, “Don’t count your chickens before they’ve hatched,” most definitely applies to selling any business. Business deals fall apart all the time. This is true from small deals to corporate acquisitions.
3. Overall Lack of Preparation
Any seller who is truly serious about selling his or her business will have all of their documentation available and well organized. This list would include financial records, environmental studies, business forecasts and more. It is important to make a good impression and convey to prospective buyers that a business is well organized and ready to be sold. Disorganization on any level could make prospective buyers worry that the business isn’t being operated in a professional manner.
4. Holding Misconceptions Around a Business’ Value
Finally, a real “deal killer” can be when sellers don’t understand (or have a mental block) concerning the real value of their business. This issue can lead many business owners to set a price that is simply too high or even completely unrealistic. Many sellers have put years of blood, sweat and tears into a business. Learning that their business isn’t as valuable as they had hoped can be an emotional, psychological and financial blow all in one. But sellers also have to adjust to the realities of what the market will bear.
Avoiding seller pitfalls is incredibly important. Working with a skilled and proven business broker or M&A advisor is a way for buyers and sellers alike to avoid an array of significant problems that could otherwise arise.
Copyright: Business Brokerage Press, Inc.
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Best Business Opportunities in Houston
Houston is the 4th most populous city of the US and has always been brimming with enthusiasm and energy. It’s a dynamic city with talent, imagination, and breathtaking attractions that make it a renowned international destination.
Houston has an established industrial base in aeronautics and energy supply and may be called a global city with strengths in research, medicine, education, technology, sports, science, fashion, media, culture, entertainment, international trade, and business. With populations from various religious and ethnic backgrounds, it’s a prospering international community.
The economy in Houston is vibrant and has the potential for business in all aspects. According to experts, if Houston were an independent nation, it would rank as the world’s 30th largest economy. All you need to do is develop a feasible, interesting idea that promises to deliver outstanding profits. While Houston offers a business opportunity in various aspects, we’ve brought you some of the best potential ideas. Read on to find out!
Cab Service
Houston has three airports that are spread over an area of approximately 1600 km sq. These airports deal with thousands of passengers carrying a lot of luggage daily. Offering a cab service to and from the airport can be quite advantageous for the city. While the one-time investment may be a little bit high, it can allow you to earn a lot of profit. Certainly, one of the best business opportunities Houston can offer.
Career Guidance
Houston is one of the American cities where the youth is booming. With a lot of career options at their helm, the students definitely need the best advice. If you have expertise in this matter and links with professionals, you’ll do a good job catering to this scenario. When you have such a large population to target, a good business can be made out of these services.
Translation/Transcription Services
In Houston, over 90 languages are spoken. If you’re well-versed with multiple languages, you’ll be able to do well in this industry. Plus, the best part is, it doesn’t require any investment.
Mobile Auto Workshop
A workshop is a great need in an area where there are a lot of cars. Undoubtedly, there are a plethora of workshops, but no one is willing to go there. Imagine a car stopping in the middle of the road due to an unforeseen problem. A lot of similar cases happen frequently, some in parking, and some on highways. A mobile auto workshop that sets off for these places on a single call can be a great help, and people will be willing to pay more for services like these.
Virtual Assistant
If you have top-notch time-management and organizational skills and spend a good portion of your time staying online, you can make some good bucks. It involves everything from maintaining databases to making contacts. All it needs is a decent computer system, fast internet connection, and of course, your time.
Nanny Services
In metropolitan areas of Houston, where mostly both parents work, this business prospers significantly. With a huge population, this city is the place for this business idea. If you’re good at looking after infants, get your work started by finding such couples who need your services.
Lawn and Landscaping Business
The city houses a lot of parks. This opens up an opportunity for individuals who want to do business close to nature. If your aesthetic sense and gardening skills are anywhere near good, you just need to invest in some equipment, and you’ll be ready to offer your services.
Messenger Services
Your time and your bike are the only prerequisites to get started with this business. There are a lot of offices that need to send their parcels within the city. In fact, you can also charge extra for swift delivery.
Web Design and Development
As the business is spreading, firms want them to be promoted on the internet, too, through effortlessly responsive and compatible websites. Web development and design are among the most lucrative business opportunities in Houston that can allow you to stand out among others. However, good marketing, expertise, and an aesthetic sense are required to initiate this Houston business opportunity and make it prosper.
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Options to Buy And Sell Business in Houston | Truview Business
Having difficulty finding the best place to sell or buy business in Houston? Congrats! You are in the right place. Contact us if you are interested in buying or selling your business.
Buying & Selling Your Business Houston
If you live in Houston and are looking for a business listing or business for sale, you’ve come to the right place. Texas is the Lone Star State and is famous for heatwaves, oil, and George W. Bush. However, Texas is also a decent place to start a business. In particular, the ground of Houston is quite fertile when it comes to opening up small businesses.
So, if you’re living in Houston and looking to initiate a business that will run for years to come, there are plenty of options to choose from both small and big.
Here are some cool ones you can tap into:
Online Marketing
A lot of businesses are now realizing the need for online marketing strategies. These strategies comprise social media marketing, content marketing, etc. In fact, Houston businesses are also willing to establish their brands in Houston and beyond by using such strategies. So, the demand for local SEOs, social media marketers, online marketing strategists, and other professionals has been surging. Therefore, setting up your own online marketing agency may be an excellent option for you, especially if you’ve good knowledge of this field.
Artsy Boutique
Artsy clothing is something that a lot of people in Houston prefer. So, the demand for these special wears is substantial. By starting a business that sells clothing for children, men, and women along with accessories like cufflinks, ties, and jewelry designed by artists, you make plenty of money. You can also include custom-designed pieces in your offerings.
Real Estate
Buy business in Houston without any hesitation. Why? Because the demand for every type of property in Houston is great. Specifically, property leasing and real estate development are quite lucrative. So, if you have both the know-how and the startup capital required to venture into this business, you’ll be made within a short period.
Chocolate Store
The addiction to chocolates is not match able in Houston. So, chocolate sales alone can make you a lot of money in Houston. You can open a store that provides everything from chocolate pizza to chocolate-dipped fruit to chocolate truffles. By turning them into various shapes like cars, animals, computers, etc., you can make them even more compelling.
Pet Care
Numerous residents in Houston have dogs and other pets. So, the demand for pet care services is undoubtedly huge. If you adore animals and can take good care of them, starting a pet care business is advisable. You can start a pet food processing business, a boarding facility for pets, a pet-sitting service, and a lot more. You’re sure to make good cash irrespective of the aspect of pet care you decide to venture into. Already own this business? Call TruView Business Advisors if you’re interested in selling your pet care business in Houston.
Car Wash Service
Many people in Houston own cars, which means the demand for car wash services is already huge. Who doesn’t like to cruise around in a shiny car? Well, that’s why car owners won’t hesitate to pay you for a car wash service. This is a great business opportunity for you if you like getting your hands dirty. However, you can also appoint someone else to do the dirty work for you and keep your commission.
Laundry Service
If you’re searching for a lucrative business that doesn’t require much expertise or startup cost, this is it. All you need to do is collect the required equipment and find a good location. Spread the word of your business all across the neighborhood of Houston, and you’ll soon have clients coming to your osmosis – provided you offer top-notch services.
Copy-writing Service
With the growing use of the internet for income generation and business promotion comes a booming demand for online copy-writing services. There are numerous businesses and individuals in Houston who are setting up new blogs and websites frequently for a plethora of purposes. So, by offering web content like social media updates, eBooks, press releases, articles, blog posts, and so on, you can make a lot of cash!
Whether you’re looking to buy a business in Houston or interested in selling your business in Houston, TruView Business Advisors is here to assist. Give us a call now if you’re in Houston and search for a business listing or business for sale.
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Best Real Estate Advisors in Houston
Looking for the best real estate business advisors in Houston? Here’s our handpicked list of the best brokers you can find in Houston:
Jason Ward
Jason Ward has more than 20 years of business experience, spread over a large number of companies and different industries. These include oil and gas, dealer services, gas stations, construction, manufacturing, private schools, e-commerce, convenience stores, distribution, public accounting, etc.
With the first-hand experience from the buying side, Jason Ward is a discreet Houston business broker. From consultant to internal auditor to external auditor to the controller to CFO, Jason has been called numerous things in his career with billion-dollar corporations and startup companies alike.
Jason completed his Bachelor’s from the University of Connecticut in accounting and completed his Master’s degree from the University of Hartford. He’s a CPA, an ABI (or Accredited Business Intermediary), and an active member of three firms: ABBA (American Business Brokers Association), TABB (Texas Association of Business Brokers), and IBBA (International Business Brokers).
Alfonso Parodi
Alfonso Parodi is the Parodi Team’s realtor, representing clients in Houston, Texas. With over ten years of experience, he specializes in both single and multi-family residential sales, vacation homes, foreclosures, and relocation services.
Alfonso Parodi earned his Bachelor’s degree in Business Administration and uses his communication, marketing, and knowledge of area communities to assist buyers in finding the right neighborhood and of course the right home.
Ces Guerra
Being a realtor with the Guerra Group for the Tanglewood Luxury Real Estate, Ces Guerra assists buyers and sellers in Houston, Texas.
He has over six years of experience and specializes in single and multi-family, luxury residential properties in the River Oaks, Tanglewood, and Memorial neighborhoods. Ces Guerra is also an accredited buyer and seller’s representative specialist.
Charlie Kriegel
Charlie Kriegel is the founder and realtor of Winhill Advisors, who assists buyers and sellers in Houston, Texas. Being one of the leading real estate business advisors in Houston, he specializes in condo sales, townhouses, and luxury residential houses for current and new homeowners looking to move up.
Charlie Kriegel also deals with relocation, property management, investment properties, short sales, and foreclosures. He helps his clients from the first listing and pre-market preparations for sellers to closing paperwork.
Christy Buck
Christy Buck has over 19 years of experience in assisting real estate buyers and sellers in the area of Houston, Texas. She is currently a realtor at Infinity Real Estate’ Christy Buck Team and an accredited buyer’s specialist as well as a certified luxury home specialist who speaks both Spanish and English.
Christy Buck also focuses on investment properties, first-time home buyers, and new construction. She works with a large staff who deals with all steps, from financing to closing.
David Edgerton
David Edgerton is a representative of buyers and sellers throughout Houston, Texas, and is a realtor for Edgerton Real Estate with All City Real Estate.
He specializes in property management, investment properties, and residential homes, and offers business development, local market forecasting, marketing strategies, and real estate financing services.
He has a Bachelor’s degree in Business Administration and uses experience, education, and contract negotiation skills to assist first-time home buyers and sellers.
Ige Johnson
With over 13 years of experience handling real estate transactions throughout the Houston, Texas area, she is a renowned Houston business broker for RE/MAX Generation.
She’s an accredited home specialist who also focuses on relocation, real estate development, short sales, and foreclosures. Ige Johnson is a senior real estate specialist, a certified negotiations expert, and an accredited buyer’s representative.
She works with a complete team, who offer VIP and concierge real estate services.
James Krueger
Representing buyers and sellers in the Houston, Texas area, James Krueger is a broker and Krueger Real Estate, owner. His expertise lies in rental properties, relocation, short sales, and foreclosures in the Tomball, Sugar Land, Spring, Missouri City, Richmond, Houston, Katy, Cypress, and Bellaire areas. James Krueger works with a full-fledged team that handles home staging, marketing, and relocation services to offer his full attention to his clients.
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