Tag Archives: Buying and Selling Businesses

Articles

Increasing Sales Through Self-Generated Leads

By Donna West

The real work of a salesperson—the work that truly increases your sales, and thus your income—happens outside of inquiry calls.

Inquiry calls can come in at any time, and you are there to respond to the leads that your company pays to generate. But sales are more than reacting to inquiries. Put that waiting time to effective use: set up accounts, complete paperwork, or do research for areas in which you want to sell. This is interruptible work that allows you to be ready to jump on an inquiry call the moment it comes in.

Increase Your Sales

You must do warm calling, cold calling, and call-backs. Don’t forget the “How are we doing for you? Who else do you know that might need our services?” calls that will feather your commissions’ nest. If you aren’t calling the people who have inquired about your services, you’re abandoning them. 

It can take more than seven touches (some say many more) before a prospect becomes your client. It’s important to consistently make those touches. Create a list and be sure you’ve made at least seven touches. Note what they were. Tracking them will show what works best for you.

  • Personal notes—handwritten, using snail mail, the old-fashioned way—still work, but few people send them anymore. When was the last time you wrote one? When did you last receive one? They get attention.
  • Send bulky packages containing swag. Few people can resist a padded envelope with a surprise lump inside.
  • Forward an email about something that pertains to a prospect’s business, something you find on the internet. Sending it to them creates a touch. It says you listened when you were chatting with them.
  • Revisit their website to discover something you might comment on or ask about the next time you talk with them.
  • Call back the day after your conversation or visit to share something you’ve thought about that might benefit their business.
  • Send a copy of your newsletter, preferably a recent one that talks about a feature your potential client asked about or that you think might fit their business needs. 
  • Create a newsletter article that speaks to a feature that might interest multiple potential clients. Then share it with those prospects.

These are all important things to do after you speak with a potential client. It shows that yours is the kind of company that nurtures and cares about their business partners.

Self-Generated Leads

A good portion of your sales should come from self-generated leads—if you are putting effort into them. This is vitally important, and your commissions hinge on it. If you aren’t making the amount of money you’d like to, put more effort into generating your own leads.

Be creative. There are more ways to find people who need your services than contacting names on a purchased list of businesses. The yellow pages were once an excellent source of business leads, but there are many modern-day equivalents, including the yellow pages online.

  • Simply go to your browser and type in plumbers, for example, and your location. You will find a whole list of ads. If they’re looking for business, they probably need your services.
  • Check local advertiser newspapers (such as the Penny Saver), which often has advertisements for local small businesses. They need their phones answered, and many use an answering machine or voicemail. 
  • After hours, call businesses that use answering services and see how their phones are handled. Make a list of those calls that don’t sound professional. Then reach out to those companies.
  • As you’re driving, notice businesses that may need your services. Pull over and snap a photo or leave yourself a message on your phone.
  • Ask friends and relatives who they use for various service needs.
  • Call your local chamber of commerce and ask for lists. Or check with Home Advisors or Angie’s List.
  • Join your local chamber of commerce and attend their meetings.
  • Scope out various service clubs (such as Rotary or Lions), attend hobby clubs (knitting clubs, book clubs, even the sportsman’s club—whatever interests you). Join the PTA, a church, or a trade association and work on a committee.
  • Get acquainted with businesses that serve the tradespeople in the types of businesses you want to bring on board. For instance, if you are seeking plumbers as new clients, target plumbing and electrical supply stores, local hardware stores, and big box stores like Home Depot and Lowe’s.

Don’t ever join a club, church, or organization for what you might get out of it. Be sure you’re genuinely interested in the group. Invest yourself in their goals and become a real part of their activities. Make this something you do for your own enjoyment; any leads that come from it are a bonus. Socially active salespeople have a greater income than those who are not. Some salespeople merely take orders as they come in, and their paychecks reflect that. Successful salespeople do far more, and their paychecks reflect the extra effort.

Always Be Seen

The rules for sales are different than for hourly workers. You can increase your income independently. Once you fulfill your agreement with your employer, you can make contacts at any time and any place.

It’s important to realize that people buy from those they trust. When you are out, you will become acquainted with more people. Eventually that facilitates sales. The sales slogan “Always be closing” is changing to “Always be seen.” You can’t make as much money if you stay home and only make calls during business hours.

A recent conversation with a top selling realtor netted the following great quote: “I’m never not selling. No matter where I go, I’m aware of sales possibilities. My livelihood depends on that.” That’s what makes a good salesperson. They recognize that they don’t know where that next lead will come from. 

When you’re in sales, you are working for your employer, but also for yourself. Be aware—but not aggressive. There is a difference between making your goal and making great money. That difference comes from the effort and imagination you’re willing to invest. Invest in yourself.

Donna West is the founder and president of Focus Telecommunications and relies on her super salespeople to build her company and their own income. Come to the Sales Symposium (rescheduled for 2021) for the telephone answering industry to learn more about the great game of sales and how you can win that game.

Articles

20 Essential Questions for B2B Lead Qualification

By Giuseppe D’Angelo

Are you frustrated when your salespeople squander your hard-earned leads? If so, you’re not alone. Reps ignore 80 percent of the leads marketing generates.

If you don’t want to waste time and money generating leads that reps push aside, ensure that those leads are so well-qualified your reps can’t wait to pursue them. Of course, this is easier said than done.

What do salespeople want? You’ve heard it before—leads that have the budget, the authority to buy, a need to solve a problem, a time frame to get it done, and are a good fit for your solution. It’s known as BANTS. While it’s a simple list of requirements, determining who meets them is not easy unless you’re armed with the right questions. Use the following as your guide.

Need: Find the Pain

Just because the acronym is BANTS, it doesn’t mean you should start with questions about the budget. First you want to uncover the individual’s pain and learn how you can help with an opportunity.

Ask these questions:

  • What are the most challenging aspects of your job?
  • How do you deal with them today?
  • What are the consequences of not dealing with these issues?
  • How do you see your business changing over the next one or two years?

These questions reveal much about the individual’s situation and their daily frustrations. They can also broaden your understanding of how your solution could help.

Solution: Is There a Fit?

To learn more about whether you might be able to offer an ideal answer to the problem, ask:

  • Ideally, what would you be able to achieve with the right solution?
  • What is your “must have” or “nice to have” solution?
  • What solutions are you currently using?

You can then ask follow-up questions related to the specifics of your product or solution. For instance, you might want to ask how critical specific benefits are to the prospect and whether they can achieve these benefits with their current product or with a competitive offering they are considering.

Budget: Show Me the Money

It’s frustrating for a salesperson to waste time pursuing a lead that will never come to fruition because the budget isn’t there and never will be. These questions can prevent that from happening.

  • How much is this problem costing your organization? Rather than starting by asking a prospect whether they have a budget for a project, set the framework by discussing how much the problem is costing them. For instance, if you have a solution that prevents computer system downtime, ask how much downtime costs their company.
  • Do you have a budget for this project? This is an easy question with a “yes” or “no” answer. If, however, you receive a “no,” you shouldn’t immediately disqualify the lead. It doesn’t mean the organization won’t come up with a budget in the future, just that it’s early in their buying cycle. If the prospect gives you a negative response, follow up with the next question.
  • Given that this problem is costing you $X a year, how much could you see investing in solving it? If they provide an answer that’s reasonable given your company’s solution, that’s good. However, because the prospect may not know how much solutions cost, they may not be able to provide an answer. If so, you’ll need to give them some cost parameters.
  • Our solution to this problem could run anywhere from $X to $Y. Would you be likely to invest that amount in it? With this extra piece of information, your prospect may feel comfortable letting you know the upper limit of what they might invest, or they might give you a budget range.
  • Who oversees the budget? It’s good to find out who is in control of the budget and whether you’ll need to convince other members of the buying team.

Authority: Who’s the Decision-Maker?

You want to find out who has the authority to buy. If the person you’re talking with has a low level of clout in the company, it doesn’t mean you’ve reached a dead end. They can help you map out the buying influencers and decision-makers within the organization. Once you know who is on the buying team, you can reach out to them.

  • How will your organization evaluate a solution to this issue? This question is intentionally broad to elicit as much information as possible about the decision-making process. Ideally, you’ll learn who the stakeholders are, what their roles are, and who has the authority to make decisions. If your contact is less forthcoming, you may have to ask some more pointed questions.
  • Who else in your company does this problem affect, and what are their roles in determining a solution? You’re starting to piece together the buying team, but you want insights straight from the individuals involved. Request permission to talk to these individuals.
  • Would it make sense for me to call (name of buying team member) to gain their perspective? The more people on the team you can talk with, the less likely it is that a last-minute objection could derail the sale.
  • Who signs off on the final decision? Don’t forget to ask this question if the prospect has not answered it in response to the previous inquiries.

Timeframe: How Urgent Is It?

Every businessperson faces many problems, only a few of which can bubble to the top of the to-do list. So ask a couple of questions to establish the level of urgency to act.

  • Ideally, when would you like to solve this problem?
  • Regarding priorities, where does solving this problem fit?

Next Steps: How Interested Are They Learning About Your Solution?

The following questions are essential in gauging a prospect’s interest in investing more time in learning about your solution. This also helps you move to the next phase of the sales process.

  • What are the steps we would need to take to make this deal happen?
  • When is the best date and time to schedule our next call or set up a meeting?

Qualifying leads is an essential ingredient in an effective, efficient sales process. If your reps aren’t jumping to follow up on your leads, review your current lead qualification questions and add in those you’re missing. By doing so, you’ll ensure that all leads qualified for your sales team meet the budget, authority, need, timing, and solution-fit criteria. Then all your salespeople will need to do is what they do best: close the deal.

Giuseppe D’Angelo graduated from I.T.I.S. Euclide with a degree in information technology. In 2003 he joined 3D2B and has become a senior project manager for the Italian and Spanish markets, responsible for generating leads and revenues.

Articles

Maximize Results with B2B Outbound Marketing

By Ryan Apodac

“What’s the secret sauce?” This is a common question new clients often ask me. But there is no simple answer. Of course, there are a multitude of variables for evaluating B2B marketing campaigns to maximize performance. However, it’s easy to overlook the small details that can make a huge impact on your overall results. Here are a few creative techniques that a great telemarketing service partner will use to maximize results on your B2B outbound marketing campaign.

 Daily Program Scheduling

One of the keys to B2B outbound marketing project success is identifying when the prospect or customer will answer the phone. In most B2B outbound marketing campaigns, the ultimate decision maker is typically in an executive or at least a mid-level management position. Knowing that, you have to ask yourself, “When would be the best time to make contact?”

It is much more productive to dial the majority of the time Monday through Thursday and half a day on Fridays. Statistically, in B2B outbound telemarketing, Friday afternoons are typically the worst time of the week to reach decision makers. While this may not apply to every B2B campaign, it could definitely be a key ingredient.

 Use a Local Caller ID

How many times have you received a call, noticed an out-of-state caller ID number, and let it go to voicemail? Conversely, I’m sure we’ve all seen an unfamiliar local number on our Caller ID and answered it out of curiosity. “Is that my spouse’s office? Maybe it’s my child’s school. Well, it’s a local number, so maybe it’s someone I know calling from a different phone.” Pushing a local caller ID can only improve results.

 Ring-to Number

What’s the best way to speak to a decision maker? Have them call you. One of the best ways to increase decision-maker contact is to create an inbound campaign. In conjunction with using a local caller ID, routing that number to an inbound campaign and ultimately a live agent, gives you another opportunity to speak with the decision maker.

A good best practice is to route to a live agent instead of voicemail. Routing to voicemail creates the additional step of calling back the customer or prospect. Whether or not you leave a voicemail message, some decision makers will return a missed call just by seeing your phone number on their Caller ID.

 Rotating Time-Zone Attempts

While Eastern Standard Time leads are the first leads to call each day, it is likely not a best practice to run through all those leads before moving on to Central Standard Time, and so forth. The same would apply to calling Pacific Standard Time leads late each afternoon. Granted, you can dial Eastern Standard Time leads earlier and Pacific Standard Time leads later each day, but that doesn’t mean it’s the best time to reach decision makers.

The key here is to rotate the times during the day you are calling these time zones. Be flexible with how you manage your time zones. Review the data, and you’ll likely find that sweet spot to maximize contact.

No More Scripts

It may seem counterintuitive to eliminate your script. After all, how can you expect an agent to call an outbound B2B marketing campaign without a script? Instead, provide outbound call agents with a call guide or a call flow that outlines all the objectives and important information to relay to the customer. Then let the agent communicate that message to the customer.

For some agents this inevitably results in them creating their own script. So be it. It can empower the agent to contribute to his or her own success. Ultimately outbound marketing agents will sound more confident in their presentations if they can speak in their own words.

Careful monitoring and coaching of agents to calibrate their thoughts of effective verbiage with your expectations is key. While there is no easy recipe to maximizing performance in B2B marketing campaigns, these are definitely ingredients to consider. Think outside the box. Little changes can make big differences.

 Ryan Apodac is an operations manager and training leader at Quality Contact Solutions, a leading B2B outsourced telemarketing organization. With a background of more than a decade in sales, Ryan is passionate about developing and delivering training that ultimately results in improved performance for client programs.

Articles

Successfully Purchasing Accounts

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By Steve Michaels

Question: I am in charge of account acquisition, but every time I try to buy some accounts, someone beats me to it. What am I doing wrong?

Answer: In today’s challenging economy, everybody wants to increase profitability. Purchasing accounts is one of the best ways to do that. But in this market, you need to be ready to move fast.

When the electronics store opens on Black Friday and only has twenty-five $100 Blu-Ray TV sets, you don’t have time to ask questions. The limited supply will be gobbled up while you are looking for a clerk.

I remember my first morning at boot camp in the Marines. The drill instructor brought us to the chow hall and said, “Ready, sit,” and then “Ready, eat.” I had just started looking for the salt and pepper when he yelled, “Get up; get up!” Breakfast was over, and I hadn’t taken a single bite.

I learned when he said, “Ready, eat,” I ate. I kept my mouth moving, gobbling as much food as possible as quickly as possible. He was trying to teach us that, in combat, you eat when you have the chance. You don’t dawdle or worry about condiments.

The same could be said for purchasing accounts. If there’s a lot of demand and little supply, you don’t have time to look for the salt and pepper. You need to ask the basic questions and be prepared to make an offer quickly if the basics look good.

In buying accounts, you need to have your preplanned set of questions readily available, set up a conference call with the seller, and be ready to make an offer if the questions are answered in a suitable manner that fit your criteria.

Remember, when the supply is limited, the time to make a buying decision is also limited. You have to adapt to the situation. If putting in your offer quickly is paramount, then make it a priority. You can complete your due diligence later – and back out if that due diligence does not meet your needs.

Steve Michaels is a business broker with TAS Marketing and can be contacted at 800-369-6126 or tas@tasmarketing.com. His website is www.tasmarketing.com.

[From Connection Magazine – Jul/Aug 2012]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
Get the latest info in the book How to Start a Telephone Answering Service.
Articles

Mind Your Business: The Due Diligence Process

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By Steve Michaels

Question: I’m selling my business, and the buyer has asked me for a long list of information. What am I supposed to give him to complete his due diligence?

Answer: Everyone has his or her list of due diligence questions. One buyer might only want three or four items answered before he makes his decision, while others present a single-spaced list covering two pages of questions. It all depends upon the buyer and how meticulous they are in their fact-finding process.

What I tell sellers is to give them everything except customer lists and DID numbers. All else is fair game.

To make this easier for the buyer, I instruct sellers to print out their customer list with the client’s start date, the number of calls and minutes received in a month, and all of the associated charges. Then I tell them to use another piece of paper to cover the name and DID number of the account; in its place put what type of businesses they are, such as medical, apartment complex, plumber, and so forth.

This will give the buyer a good idea of the pricing, call volume, and type of accounts they are considering buying. Once the purchase has been consummated, the seller can just remove the paper and hand the buyer the account list with the actual customer names and DID numbers.

If only the accounts are being sold, some sellers think that they do not have to supply the buyer with financials since they are only taking over the accounts. This is incorrect. An astute buyer will want to see what comes in and out of the business to determine what the labor costs are, if the seller is utilizing the phone to the maximum benefit, and what perks are being taken out of the business. This is an important part of any deal whether someone is selling accounts only or the complete business.

Steve Michaels is a business broker with TAS Marketing; he can be contacted at 800-369-6126 or tas@tasmarketing.com for questions. His website is www.tasmarketing.com.

[From Connection Magazine – June 2012]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
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Articles

Escrow Deposits and the Asset Purchase Agreement

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By Steve Michaels

Question: I am buying a business. In the letter of intent (LOI), the seller and I have agreed on a due diligence date with an escrow deposit. To what extent is my escrow at risk, and where does the asset purchase agreement fit in?

Answer: There are a couple of considerations, depending on whether the escrow deposit is refunded or forfeited.

A period of time is allowed in the LOI for completion of due diligence by the buyer, typically three to four weeks. When the deadline for completion of due diligence is reached, it is the buyer’s responsibility to notify the broker or seller that the requirements have been met. The deal then proceeds to the completion of the asset purchase agreement.

The completed asset purchase agreement between seller and buyer is typically not contingent on the due diligence process. If the due diligence period ends without the seller and buyer’s attorneys being able to agree on the asset purchase agreement, the escrow deposit should be refunded to the buyer and the deal considered cancelled.

If the buyer’s requirements for due diligence have not been met and the buyer chooses to back out of the deal, it’s up to the buyer to contact either the broker or seller prior to the due diligence deadline. The escrow deposit would then become refundable.

However, if the buyer decides to cancel the transaction after the due diligence deadline is over (due to a change of mind or not having completed the due diligence in a timely manner), then – according to the provisions of the signed LOI – the buyer would lose the escrow deposit to the seller.

Steve Michaels is a business broker with TAS Marketing and can be contacted at 800-369-6126 or tas@tasmarketing.com for questions. His website is www.tasmarketing.com.

[From Connection Magazine – April 2012]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
Get the latest info in the book How to Start a Telephone Answering Service.
Articles

Is There a Set Formula for Purchasing a Business?

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By Steve Michaels

Question: “I have self-listed to sell my business, and a prospective buyer has come to the table with an offer, stating that the following is a standard formula for purchasing a business. In your estimation, is this correct?

  • A confidentiality agreement is signed. This agreement also stipulates that the business be taken off the market for thirty days, during which the seller cannot talk to another potential buyer. There is no earnest money put down by the buyer during this time.
  • After completion of due diligence, the buyer submits a letter of intent.
  • At closing, the buyer provides a down payment and the purchase agreement is signed.

Answer: There is no standard formula for buying and selling a business. It basically comes down to what both parties agree to. A seasoned buyer will most likely use their formula (which they may call “standard”), and it’s bound to be one that works in their favor.

TAS Marketing sells its businesses using the following method:

  • The listing sheet, financial information, and bank deposits are furnished up front to all prospective buyers who have signed a non-disclosure.
  • A letter of intent is presented with the offer. At this point the seller can accept the offer, negotiate the offer, or reject it, thus leaving the door open for other offers.
  • If the offer is accepted, an escrow account is set up and the business is taken off the market for a period of time so that the buyer may do his or her due diligence.
  • If the due diligence process uncovers facts that were contrary to the information provided, the deal can be renegotiated or the escrow deposit completely refunded. If the due diligence is favorable, then the buyer has two options:

1) If they are purchasing the accounts, they have the option of putting down one-third of the sales price, which is nonrefundable, and thus receive all of the account information to program into their system before closing.

2) If they are buying the entire going concern, an “asset purchase agreement” is drawn up, it is signed at closing, and the funds change hands.

Ted Turner said it best: “Business is war… with rules.”

Steve Michaels is a business broker with TAS Marketing and can be contacted at 800-369-6126 or tas@tasmarketing.com for questions. His website is www.tasmarketing.com.

[From Connection Magazine – Jan/Feb 2012]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
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Articles

How to Determine the Right Buyer for Your Business

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By Steve Michaels

Q: I am trying to sell my business myself and have two offers. I really like one gentleman, but another has put in a higher-priced offer. Do I go with my gut and accept the lower offer, or should I go with the higher offer since selling a business is all about money?

A: Entertaining offers is like going to a school dance. You may be asked to dance by the most attractive person there, but that does not mean he or she is the best partner or most compatible for you. When selling your business, you are selling a part of yourself. You have to realize that you will be dancing with this person for several months, affecting you, your staff, and your customers. Sure, the money is important, but so is the lasting effect of a deal gone bad.

Have a heart-to-heart talk with each potential buyer – and really listen. How do they bill? Do they take care of their employees? Are they going to leave the business in place or move it? Do they have the necessary financing available? Will your agents be offered jobs?

Sadly, some buyers will tell you what you want to hear in the beginning. They may even offer more than the asking price so you’ll take the business off the market. They may begin to burden you with questions to wear you down. Then, as the closing date draws closer, they might lower their offer, using the data you provided them. In some cases this is relevant, but in others, it is merely a shady negotiation tactic.

Your question is difficult to answer, because there are many reasons for selling a business. Look at what is important to you to find your answer. If it is money, then go with the highest bidder.

My advice is to obtain as much information from the buyer as possible; make sure they have the funding and are a compatible fit with you and your business. If the difference is only a few thousand dollars, then you may want to go with the buyer you like best; if not, sleep on it. Hopefully, in the morning you will have a clear idea of who your buyer will be.

Steve Michaels is a business broker with TAS Marketing; he can be contacted at 800-369-6126 or at tas@tasmarketing.com. His website is www.tasmarketing.com.

[From Connection Magazine – December 2011]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
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Articles

Mind Your Business: What Is a UCC-1 and Why Should I File One?

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By Christine Michaels

  1. I sold my telemessaging service and hold a promissory note from the buyer. Should I also file a UCC-1 form?
  2. UCC-1 stands for Uniform Commercial Code financing statement. In general, it is a public notification that the sale of your accounts (and equipment, if included) have not been completely paid for. It is filed with the secretary of state and appears as a lien against the business.

Whenever a business is sold and the seller accepts “paper,” such as a promissory note, then the terms of the sale should include the filing of the UCC-1 statement. The UCC-1 form (available online) is completed by the seller and lists the name and address of the debtor (buyer) and the secured party (seller); a complete description of the collateral (assets such as customer accounts and equipment); the terms of payment for the note showing the amount due, payment schedule, and term; and where the collateral will be kept or used. There are also provisions for the secured party’s remedy if the debtor defaults on the promissory note so the secured party can reclaim the collateral. Thus, the UCC-1 form provides a lien, which is a legal right of interest in the asset that lasts until the obligation is paid.

Some sellers believe that a promissory note sufficient if a default in payment occurs, but the promissory note does not protect the seller’s claim to the assets. In many cases, the buyer can turn around and sell the assets (accounts and equipment) to someone else and still never pay the original seller in full.  However, if the seller files a UCC-1 form with the secretary of state in the state where the business was sold, then the existing lien on those assets provides protection against a fraudulent sale. Unfortunately, we have heard of this happening.

For our clients, we generate both the promissory note and UCC-1 financing statement in those cases where the seller agrees to carry a note from the buyer. However, the UCC-1 statement is useless unless the seller files it with the secretary of state.

Christine Michaels has her master’s degree in psychology from the University of Notre Dame and is an associate with TAS Marketing, Inc. She can be contacted at 800-369-6126 or tasbroker@tasmarketing.com for questions.

[From Connection Magazine – June 2011]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
Get the latest info in the book How to Start a Telephone Answering Service.
Articles

When to Walk Away

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By Steve Michaels

Q: I’m trying to purchase a business, but the seller keeps asking for more. When do I say, “Enough is enough”?

A: Once, my wife and I were trying to purchase a house in Northern California. We made a full-price offer directly with the seller who hemmed and hawed for several weeks. He then asked that we pay him for some additional items over and above the purchase price; we begrudgingly agreed. He made us wait some more. Then he said he would finalize the deal if we included our car!  That was the last straw. We walked away from the deal and learned a valuable lesson. When any deal becomes too one-sided and unreasonable, it’s time to walk away. We finally purchased a beautiful B&B with an ocean view; it was the best move we could have made.

When you first approach a potential seller to buy his or her business, you have given over some control already as they know of your intentions and desire for the purchase. There are several ways to combat this situation:

1) Hire an intermediary to act on your behalf. Simply have them contact the potential seller and ask if they may be interested in selling. Instruct them to say that they are calling businesses in the area so it doesn’t look like the owner is being specifically chosen.

2) Don’t mention a price – he who speaks first in price negotiations is usually the loser. You may offer more than what the owner thinks the business is worth.

3) If you feel the asking price is a bit high, you can always agree to a price based on the outcome of your due diligence. Let the process move forward. You can usually find items in the business that could lower the price.

In your quest to purchase a business, if there are unreasonable demands by the seller and lengthy negotiations that always seem to be one-sided and unresolved, then it is time to simply walk away.

Steve Michaels is a business broker with TAS Marketing and can be contacted at 800-369-6126 or tas@tasmarketing.com for questions.

[From Connection Magazine – March 2011]

Learn more about the Telephone Answering Service Industry.

How to Start a Telephone Answering Service, by Peter Lyle DeHaan, PdH
Get the latest info in the book How to Start a Telephone Answering Service.