We sat down at the conference table across from two first time business buyers. They were eager to hear what we had to say and excited about the business opportunity that was before them.
But they weren't sure how to structure the purchase, how to form a business entity, or how to create a partnership that would survive the inevitable ups and downs of business cycles.
And so, we gave them a few very powerful pointers that I am going to also share with you in today's post.
I was in the back row of the conference hall on the 21st floor of a skyscraper in downtown San Antonio. I had to bob and weave between the heads that blocked my view to the stage where the presenter said,
"The purpose of selling a business is different from the purpose of starting one."
And I was fascinated because he is so right! And today I want to walk through a few reasons small business owners are motivated to do each. I hope you'll join me!
Selling or buying a profitable business can be a tough process. We know that less than 2% of all buyers buy and less than 30% of small business owners successfully sell.
It is for those reasons and a few more that the process to buy or sell is delicate and occasionally difficult. Although it would be impossible to list all the potential road blocks in one blog post, I'll try and illuminate 3 things you should know if you're interested in selling a profitable Texas business.
If this is your first time buying or selling a small business you might not know what an LOI is -- it stands for Letter of Intent and is a document that we use to help a small business buyer make a non binding offer to a seller of a business that specifies their intent to purchase the business after certain contingencies and due diligence items are met.
And if you really knew me, you’d know that helping profitable Texas small business owners sell their companies for top dollar is a career pivot that I made in November of 2018.
In addition to being a 4th generation entrepreneur and purchasing my first business in 2010, I spent 2013-2018 building a private coaching practice
while acquiring the coaching credentials necessary to help entrepreneurs and small business owners maximize life and business potential.
All of this to say, since my career pivot last November, I’ve spent several months deep in business brokerage research and study in order to better help those looking to buy or sell. And today, I came across a really helpful article from Inc.com that I’d like to share with you because it highlights some foundational tips — for both small business buyers and small business sellers — that I think you’ll enjoy.
Katie is coach, entrepreneur, and deal-maker that partners with business leaders in creative ways to maximize potential. She understand the complicated lives of entrepreneurs and believes the world would be a better place with even more successful small businesses. A fourth-generation entrepreneur, Katie purchased her first business in 2010 and has partnered with hundreds of business leaders to accomplish their goals, challenges, and visions for a bigger future. Katie is certified in Conversational Intelligence® — the neuroscience of leadership, and holds a B.A. in Business Management from Luther College in Decorah, Iowa.