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Publication: SoHo News and Tips
Buying a Business

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                   SoHo NEWS & TIPS
Helping You Make the Most of Your Small Office/Home Office


When buying a business promoting oneself to companies that 
want to sell can be challenging. Here is an article that 
will benefit you small business hopefuls on where to look 
for a business to buy and tips to help you get the feedback 
that will make this process easier.


P.S. You can discuss this issue or any other topic in the 
new SoHo News & Tips forum. Check it out here...
SoHo News & Tips Forum



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- General Motors Corp. and Ford Motor Co.'s US sales each fell 
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- Sirius Satellite Radio shares jumped Wednesday following the 
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- Crude oil prices kicked off 2007 with a plunge below $59 a 
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- Manufacturing in the US unexpectedly expanded and 
construction spending fell less than forecast, signaling 
the worst of the economic slowdown is over.


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Many business-acquisition opportunities aren't widely 
known about, even by investment bankers, because sellers 
fear roiling employees and customers by taping a for-
sale sign in the window. Instead, they wait patiently 
for the right buyer to knock. There are many businesses 
today "owned by 70-plus-year-olds that don't know what
they're going to do with it," says Ray Lampner, head of 
mergers and acquisitions for an Akron, Ohio, accounting firm.

Ken Thompson, an Akron entrepreneur who has bought nearly 20 
businesses, uses a strategy he dubs "call-mail-call." Start by 
calling a few business owners in the industry and ask if they 
know someone who may be interested in selling. Don't request 
an immediate answer, but say you'll follow up. Two weeks 
later, send a letter with your business card reminding them 
about your desire to find prospective sellers and that you'll 
call again soon. Finally, call back to inquire if they've come 
up with any possibilities.

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This strategy works, Mr. Thompson says, because it shows 
you're a serious buyer and allays the owner's fear that 
"you're the secretary's boyfriend calling to figure out 
whether she's going to be laid off." Moreover, even if 
business owners you contact aren't looking to sell, they 
likely know another who is.

Other resources are trade-group newsletters with classified 
ads, and accountants, who often know interested sellers before 
they're officially hunting for buyers.

Another option is asking venture capitalists in the industry, 
who may be looking to divest businesses from their portfolios.



Because potential customers must see your message 
numerous times before taking action to buy from 
you, don't change your message too quickly or too 
frequently. If you do, customers get confused 
about who your company is and why they should do 
business with you. On average, people have to see 
your message seven times before they recognize 
they need to buy what you're offering.

So what did you think about this issue? Drop me a line and let 
me know at mailto:mandi@gophercentral.com 

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