Profit Answer Man: Scaling with Profit First & Beyond Ep 240 Buying VS Starting A Small Business with David Barnett
Buying VS Starting A Small Business with David Barnett
In this episode of The Profit Answer Man, David C. Barnett, a seasoned expert in buying and selling small businesses shares his insights into the world of business acquisition versus starting a new business. We dive into what makes a business "sell-ready" and explore how preparing your business for sale can improve not only its value but also its profitability and enjoyment. If you're considering growth, David offers invaluable advice on leveraging acquisitions as a path to expansion.
In this episode, you will learn:
- The key differences between buying an existing business and starting a new one.
- Why having a "sell-ready" business can make it more profitable—even if you don't sell it.
- Strategies for preparing your business to attract the right buyer.
- How to use acquisitions to grow and scale your business quickly and effectively.
Key Takeaways:
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Sell-Ready Businesses are More Fun David emphasizes that businesses designed with a potential sale in mind often run smoother, making them more enjoyable to operate. Owners of sell-ready businesses tend to focus on systems, profitability, and efficiency, which naturally lead to better financial outcomes and less day-to-day stress.
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Buy vs. Start: Understanding the Mindset of a Buyer If you're planning to sell, understanding the buyer's mindset is crucial. Buyers are looking for businesses that are stable, profitable, and well-documented. By focusing on what potential buyers want, you can make your business more attractive and profitable.
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Growth Through Acquisition For business owners looking to expand, acquiring similar businesses can be a faster and often less risky way to grow. By purchasing businesses in other markets or regions, you can take advantage of your existing knowledge and systems, mitigating the risk that comes with starting from scratch.
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Make It Sell-Ready, Even if You Don’t Sell Preparing your business as if you were going to sell it can have surprising benefits. When systems are in place and the business runs efficiently, owners often find themselves less eager to sell because the business is more fun and profitable to run.
Bio:
David C. Barnett is a former business broker who sold dozens of businesses before transitioning into consulting. His consulting practice helps business buyers and sellers navigate transactions without the chaos of the traditional commission-based brokerage model. He’s the author of multiple books, including Buying Versus Starting a Small Business, and hosts a popular YouTube channel offering advice on business transactions and management. Although based in Canada, David works with clients worldwide, with a majority located in the U.S. Learn more about David at www.davidcbarnett.com.
Conclusion:
David’s expertise offers invaluable insights for entrepreneurs, whether you're looking to sell, buy, or grow your business. Focusing on making your business sell-ready, even if you're not planning to sell, can lead to higher profitability, more enjoyment, and a business that’s more attractive to potential buyers. If you’re considering growth through acquisition, this episode provides a roadmap for scaling without the risks of starting from scratch.
Links:
Blog: www.DavidCBarnett.com
Linkedin: http://ca.linkedin.com/in/davidbarnettmoncton
FaceBook: https://www.facebook.com/DBarnettMoncton/
YouTube: https://www.SmallBusinessAndDealMakingPodcast.com
Soundcloud: https://soundcloud.com/dbarnettmoncton
Instagram: https://www.instagram.com/dbarnettmoncton/
Twitter: https://twitter.com/DBarnettMoncton
Email List Signup: https://www.DavidCBarnettList.com
Hi, I'm the Profit Answer Man Rocky Lalvani! I help small business owners simplify their financial reports to make more informed business decisions with fewer hassles. We utilize the Profit First system created by Mike Michalowicz
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