Small Business Talk

The Podcast to Grow your Business Faster

Building A Business That People Want To Buy With David Barnett

Show Notes

Background

David has been working with small and medium sized businesses for over 20 years. He has helped entrepreneurs buy and sell them. He has helped them grow. He has helped people finance them. David is the author of 8 books about small business transactions and local investing. He is the host of a YouTube channel with hundreds of videos about buying, selling, financing and managing small and medium sized businesses and can be found anytime at his blog site at www.DavidCBarnett.com.

The Value of Business

In this episode of Small Business Talk, my guest is David Barnett, who has over 20 years of experience working with small and medium-sized businesses and has been helping people buy and sell businesses since 2008. We discuss the topic of building a business that people want to buy. David explains that the value of a business is related to the cash flow it creates, and that this is multiplied by a factor depending on the risks involved in the industry. In order to build a business that people want to buy, you should focus on identifying and understanding the needs and wants of your target market.

He emphasises that having systems, policies, procedures, and checklists in place is important so when someone wants to buy it, they can actually learn how to operate the business by themselves.

The Importance of Having an Organised System

Your business should not be key person dependent in order for the business to run smoothly. What if that certain key people leave or pass away? If a business didn’t have an accessible organised system in place, the business and the people left will struggle how to function. The importance of having an organised system in place is that other people can take over the business seamless in case there of any unexpected events.

The Role of A Private Transaction Advisor

David is also a private transaction advisor and he helps his clients through the process of buying or selling a business without taking an agency role. He acts as a coach or consultant and helps his clients navigate complex financial transactions and other types of financial deals. He provides expert advice and guidance on the financial, legal, and strategic aspects of a transaction, helping to ensure that the deal is structured in a way that maximizes benefits and minimizes risks

Overall, Barnett emphasizes the importance of having a well-organized and systematic business to make it more attractive to potential buyers, and to ensure that the business can run smoothly even in unexpected situations.