Be Successful In Any Business?

My Friend, Kelly Schwarzbeck asks, "Can a person with an entrepreneurial mind be successful at a business they didn't envision or dream up?"

In my time as a business broker, I have found that there are 2 types of Entrepreneurs:

Start from Scratch- This person takes an idea and starts from nothing and grows from there. They do all the research, planning, forecasting and invest the money and to start something. You might see this as a passion they had while working for corporate America, or a hobby they have become good at and want to sell.

Buy an Existing Business- This person will research the history of the business they are thinking about buying. Maybe they have experience in that field or always wanted to own a business. They look at the last 3 years' financials to see what the business has done and how much money they could make.

Both of these types would invest the same amount of money and generally get the same results, based on how much time and effort they would put into it. But their reasons for being either of the types are different.

One reason is that the person buying an existing business wants to take on less risk. If a business has been performing with $x amount of profit over the last 3 years, then it stands to reason it can continue. This can "Guarantee" a certain amount of income.

Another reason for a person to buy an existing business is that the person has ideas they think would work to grow the business. Why not use an existing model for making money while trying something else.

People start business from scratch if there are no other businesses like the one they have in their head. Creating a new product or a service that does not exist right now.

Another reason to start from scratch is that they may not want to follow someone else's formula for their success.

Whether you are starting up your own from scratch or buying an existing business, you will need a bit of passion for it to work. Sometimes it is the passion for the actually industry, while for others it is the passion for trying something new and succeeding.

The reason I like Business Brokering is that I get to "Play" in so many different industries. Over the Last week, I got to work with and learn about a restaurant, a fitness center, a distribution company and a steel products company. I have a passion for helping people and learning, while being good at keeping track of information, general business finance knowledge and introducing people. Everyone has the reason they are in a particular business.

Bottom line: Passion is an important part to becoming successful. Figure out that reason (or reasons) you are doing what you are doing and remember it every time you hit a stumbling block. Yes, you can become successful if you find that passion, even if you didn't dream it up.

Please feel free to comment on this. What are your thoughts on this? How has your passion helped you become successful?

As always I also welcome your burning questions, not related to this topic.

Do I Love This Business?

My friend from High School, Holly Utter, posed questions from Facebook. The first one is; "Do you ever come across businesses that are selling that really speak to you and you would like to purchase yourself?"

When you are a Business Intermediary (Broker), you are helping buy and sell other people's businesses. When I look at a business for sale that I like, it is usually making a nice profit, while the asking price is fair and has a trend toward making even more money in the future. In order for that to happen, the new owner would have to have a passion for the business for it to succeed. So, when I see a business I like, I NEED to remember that I have Passion for helping people buy, sell and grow businesses.

As a salesperson, selling anything, you should love what you sell so much, you want to buy it. It is a good thing to like what you sell. When you love what you sell, and you have bought what you sell, your passion for the product or service comes through as you present it. Maybe the last time you went to buy a cell phone, the salesperson had a phone you liked. This person had inside knowledge of it, so you purchased that phone. Loving and having the product or service you sell could add to the credibility of it and to you as the salesperson.

However, you still wouldn't have bought from that sales person if the product did not interest you or if you felt it did not meet your needs.

"Do you market those any differently?" All of the businesses I have for sale are marketed similarly. They are posted on business for sale websites, post an email newsletter to my current buyers, and talked about while I am networking. When a buyer prospect shows more interest in a particular business, the questions lead toward making sure the business is right for them. We also want to make sure that the buyer and seller can come to terms that are good for everyone involved.

There are some businesses that I like more than others, just like salespeople have some products that they like more than others. Outstanding salespeople put the needs of their customers ahead of their own. Pushing one "product" over another without consideration of what the customer's needs are will not make the salesperson successful. The business will not get sold because I like the business. It will get sold if the person buying it can see the potential they can put into it to grow. It will grow if the potential new owner has passion for the new adventure.

Bottom line: If I do not feel I would want to buy it, it might be harder for me to be able to sell it. But it is not up to me to like it. It is up to me to find the buyer that will LOVE it!

Please feel free to comment on this. What has been your experience with this as a salesperson? What has been you experience with this as a customer?

As always I also welcome your burning questions, not related to this topic.

 

 

 

Who Do You Refer?

My first question came in through Facebook from Dawna Watson, Realtor: "You do a lot of networking and have for years. You must know 50 Realtors, 100 insurance people, carpenters and so on. When you know so many people, how do you choose who to do business with (and refer)?"

This is probably true for many people who network and now even more true with all the social media. There are many qualified expert professionals in almost every field you can think of. As a matter of fact, it may have become even more difficult to suggest referrals to someone, since many jump on a network like Facebook and type "I need to get my floors done, does anyone have a recommendation?"

Let's go back to the root of a referral. A referral is a transfer of trust. I have developed trust with my friend/ client/ prospect and I will transfer that trust to the person I refer to do the work. The work the referred person does reflect, not on their business, but me since I referred them. So the first thing I look for in someone I am referring is whether I can trust them to, not only do a good job, they will also have to exceed expectations.

One of the best ways to know if someone will do a great job is to have used them personally. However, I can honestly say I have never had my "Floors done." That is where quality testimonials come into play. If you do a lot of networking, you heard about the way people do their business. When you hear many great things about a particular "Flooring guy," you tend to be more comfortable referring them. This is a reason why groups, like BNI, allow for testimonials.

My business brings me all over Chicagoland, from the Lakefront in Downtown Chicago to out past DeKalb. Geography has a bit to do with who you refer. You may have the best "flooring guy" in DeKalb County, but the 1.5 hour drive to downtown will not allow him to do his best work. In this case, I ask this guy who he would recommend in that far away area. They usually have a good person, but if they don't, you may trust others in the area for recommendations.

The last thing I look for is their expertise. Notice I kept using the words "Flooring guy" above? Many trades' people can do many things, but you will want to refer someone that is an expert.

Dawna Watson has recently shown that she can sell a home that has been on the market with other realtors for a long time. I would consider her THE expert at that aspect of home real estate sales. When I hear of someone that has had their home on the market for 6 months or more, I would recommend they have a discussion with Dawna to see how she could help. I am sure other realtors can do the same thing.

Another realtor I know is Mary Kubalewski. I know her as being an expert in Short Sales. She would be who I would refer for that. I am sure both realtors can do both, but I have heard great things about the way they have worked on those specific aspects of real estate and would feel more comfortable referring to their expertise.

Bottom line: It comes done to trust. Every referral you give is a reflection on you and how you do business. It is better to not pass that referral, then to just give a name of someone you cannot trust.

Please feel free to comment on this. What would you do differently? How have you handled referrals that may have made you look bad?

As always I also welcome your burning questions, not related to this topic.

My First (Real) Attempt to Blog

The question keeps running through my head “Do people really want to read/ see/ hear what I have to say?”

There is so much out there. Between other’s blogs, traditional media, social media, and email newsletters, what can I add?

Who knows?! But let’s give it a try.

I have tried to do this before, but forcing a blog post does not make for a good read. So these will be irregular, when I have something to say posts.

I also plan to interview people about their business and how their information might be able to help you.

So if you have a question for me, let me know and I can answer it!