Avoiding Business Buying & Selling Mistakes

With over 12 years in business acquisitions and valuations, David Barnett shares critical insights about buying and selling businesses, drawing from his experience as a business broker, banker, and advisor.

His mission: helping people avoid bad deals.

David specifically discusses some common mistakes he sees both sellers and buyers fall into and how you can avoid them.

The Reality of Small Business Sales

David shares sobering statistics about business sales: most small businesses never sell, with approximately 80% of listed businesses failing to find buyers.

This often stems from unrealistic pricing and seller expectations.

Many owners reject reasonable offers because they’ve emotionally attached to higher valuations that don’t reflect market reality.

Online Business Perspective

While online businesses might seem more straightforward than traditional ventures, David notes several crucial considerations.

The line between online and traditional business continues to blur, and online operations require significant time investment despite perceptions of passive income. He particularly warns about platform dependency risks, such as sudden changes in affiliate rates or algorithm updates that can dramatically impact revenue.

Rather than simply looking for profitable businesses, David advises buyers to seek opportunities where their expertise can add value.

This might mean finding businesses with fixable problems or platforms that enable expansion into new markets. He emphasizes considering existing cash flow over startup potential, as established revenue streams provide more predictable returns.

Connect with David

Connect with David at his website or YouTube channel at:

Website: davidcbarnett.com

YouTube: https://www.youtube.com/@DavidCBarnett

    Nick Chi spends his time writing and connecting with Flippa's audience through the Daily Newsletter, Humans of Flippa podcast, and Flippa's social channels.

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