RSSGet small business ideas
By RSS | By email
SMALL BUSINESS TV - OPEN PLAYER · CLOSE PLAYER
Want to meet via email, phone or person to discuss selling your business in Florida?
Visit: www.sellabusinessflorida.com

Small Business Owners (Most All) Affected by Real Estate Downturn

Real estate downturn

Real estate downturn

The real estate downturn is affecting most all business owners.

The real estate downturn is far reaching. Very often we hear about the impact on Realtors, construction trades, mortgage companies etc… But what about the small business owner that is a Printer, a Restaurateur, or growing Web-Based company. Most all businesses are affected by the overall slow down of goods and services, but the real estate downturn has affected business owners in possibly a more significant way.

Many small business owners own real estate. They own the businesses building, they own their private residence, or they own real estate investment property. These business will have financial needs, loans, line of credits, etc.. The bank regularly needs/requires personal guaranty and a personal financial statement from the small business owner. A significant part of that small business owners financial wealth is tied to those real estate holdings and the bank determines this small business to not qualify for a loan or L.O.C., because of depressed value of his/hers real estate holdings.

So often in the business world it is said that “it doesn’t matter what an employee or a business does when he/she is on personal time or outside the business”. I find this approach to be flawed. What happens to an employee or small business owner outside the business does matter. The small business owner will find it more difficult to convince the banker of adequate security.

It used to be that you knew you had a lot of money if you lived in a nice neighborhood and had a nicer house/car than your neighbors, now you know you have a lot of money if the bank is willing to loan you money. What happens to a small business owners money outside of his business DOES affect his business.

As of today, September 18, 2009, it is hard, but certainly not impossible for a small business owner to get money from a bank. But you better look good and have “layers” of security for the bank. In the past, I have experienced bank loans for business acquisitions that the bank appeared to have the value of the deal as security, but ultimately tied up the valuable real estate that was associated with the business. The sooner the real estate market turns around, the sooner small business owners will realize the benefits of that turn-around, and use those benefits to help/grow and or sustain their business.

Image by respres.

  • RSS
  • LinkedIn
  • Twitter
  • StumbleUpon
  • Digg
  • del.icio.us
  • Technorati
  • Reddit
  • Mixx
  • Diigo
  • Yahoo! Buzz
  • Ping.fm
  • Propeller
  • Facebook
  • Google Bookmarks
  • Faves
  • BlinkList
  • PDF
  • Print
  • email

About the Author

Author profile pictureScott M. Messinger is a former and current business owner that has directly purchased multiple businesses to support organic growth. Former owner of successful production/manufacturing/distribution business of 20 years that was successfully sold and transitioned. Member of International Business Brokerage (IBBR) that is based out of Miami Fl, and member of the Business Broker of Florida Assn. Background experiences includes the fields of management,water, energy savings, marketing. For a FREE current listing of Businesses FOR sale see: www.sellabusinessflorida.com | www.energreenusa.com | Phone: 239.770.2421

Visit Scott Messinger's profile and other posts.

Need Quality Assistance in Buying or Selling a Business?
Contact Scott at www.sellabusinessflorida.com
NOOBPRENEUR.COM SMALL BUSINESS ARTICLE

Brought to you by...

2 Responses to “Small Business Owners (Most All) Affected by Real Estate Downturn”

Leave a Reply

Search Noobpreneur.com:
Search opportunities:
Featured Business Partners
Top Business Resources
Categories
Recent Comments
  • Noobpreneur: Cheers, Julie!
  • Julie Kazabi: Pretty cool post – raises some interesting points for debate. I just stumbled upon your blog this...
  • Noobpreneur: Hi, Thanks for suggesting some business opps – I particularly am interested with the home travel...
  • virtual office: Debt collectors do very well in a recession Aministrators. Lots of businesses go under so they get...
  • Noobpreneur: Hi, Email marketing is not outdated, IMO – Twitter is, to me, just a new way to socialise and do...
  • GetYourBizSavvy: Its crazy how just putting my cell phone to the side can change my focus so much. Its like that with...
  • Mila Odonell: Many thanks for discussing such an informative article with all of us. I’ve bookmarked your blog will...
  • The Pollet Group: This article really inspired me to get a Twitter account. I already was trying to think of creative...
  • Noobpreneur: Tome, You could try my franchise blog, FranchiseNote.com ;) Thanks!
  • Noobpreneur: Cheers, Russell!
Business Printing Resources
Archives
Business Resources

Host your business websites with a reliable and environmentally-friendly web hosting company, HostGator.

Ready to make money online? I recommend you Namecheap.com for a one-stop shopping for your online business needs - Domain names, web hosting, and many more.

Secure your PDF documents and let yours becoming viral with Viral PDF - Silver Edition.

Business Branding Tools
Business Tools
Do you really know your employees?
Miscellaneous


Creative Commons Attribution-No Derivative Works 3.0 Unported License Page copy protected against web site content infringement by Copyscape

Noobpreneur.com Featured Business Authors

» Blog for us

Business Resources

ResourceNation

Download Hundreds of Complimentary Industry Resources
Get hundreds of popular Industry magazines, white papers, webinars, podcasts, and more; all available at no cost to you. With more than 600 complimentary offers, you'll find plenty of titles to suit your professional interests and needs. Click Here and Sign up today!

Entrepreneurship Blogs - BlogCatalog Blog Directory Business Business blogs

Top 50 Blogs

Invesp - Small business category Invesp - Startups category Invesp - Business category