Exit Stategy

EXIT STATEGY



Planning the sale of your business should take place long before the time comes to actually sell the business. Ideally, even before you start or buy a business, you should have a goal and concept of what you will do when you want to move on. The goal should always be to maximize the value of the business. Many business owners only visualize that their children will someday take it over. Unfortunately, most children don't want the business and the failure rate for second generation business is almost as high as new businesses. So, even if it does take place, you should operate the business with the intention of selling it for the maximum value. I generally like to talk to business owners a year or two before they actually want to sell. It is important to have records in order and "honest" financial statements. The old saying, "you can pay me now or you can pay me later." applies to business sales. If you have been making income "off the books", that will not be considered by a buyer in determining value, because if it is being financed banks and other involved parties such as SBA or INS will not include it in their analysis. Several months before your sale, you should start disposing of clutter. Unnecessary files and inoperable equipment should be gone before any buyer crosses your doorway. You should also take a look at your personal situation and what your needs will be after the sale of your business. Chances are you can maximize the value of your business by offering financing, and with today's market it may be the only way you will sell at all. Generally, it is well worth talking to your accountant and a broker about these issues on a regular basis throughout the time you are operating your business.

Keys to Success in Business- #7

Keys To Success in Business #7
Outsource jobs others can do better- printing, payroll services, information technology. It is often said that the little things get in the way of big things. This can be very true in operating a business. You need to remember the real purpose of your business and concentrate on that. If designing menus or brochures takes time from business then it costs more than it saves. If you spend hours of your family time preparing payroll, you must be aware of the true cost of that. Spending several days in early April preparing tax returns can damage your business. You need to concentrate on the business and have things that can be done by others more efficiently and cost effective done by those that do it best. For example, a restaurant owner would need to meet with the vegetable vendor to make his selection rather than letting them just leave the order, because successful restaurateurs know that is when you get the vegetables that were rejected by the restaurant down the street. Plan your time to be the most efficient

Entrepreneurial Spirit

Economic downturns always bring out the best and the worst of people. Some will complain and find excuses, while other get up early in the day and do their best to do something to improve their situation. Of course, we have people like disgraced county managers, that despite being given $150K in severance to "tide them over", run to the unemployment office to suck more public money fom those with real need. then we have people the man that went around the offices in our plaza yesterday passing out flyers for his mobile car wash business. He will wash your car while you are working for $20.00. He is back today and it looks like he has about 5 cars to wash. There are many businesses that can be started with very little capital, but a little sweat and preparation. If you have a particular talent there might be a business that can be made of it. If you know how to work on small engines, perhaps going to people home to repair and service lawnmowers would be attractive to those of us not as handy, but unable to take the mower to a shop. The same might be for screen repairs, or installation of mailboxes. Pressure washing for small jobs is always in need. Growing season is still a couple months away in Florida, but many people would want their gardens tilled. If you have tools and equipment great, but otherwise, Craigslist.com may have what you need. Flyers don't have to be fancy and can be copied for a few dollars at office stores. The key is getting off the sofa. I was listening to friend complain about not finding a job. I suggested that she go to K-mart and for about $30.00, she buy cleaning supplies and since she lives in an apartment complex with almost 300 apartments, that surely, some would pay her $20.00 to clean their bathrooms every week or two. Her reply was that she didn't have $30.00. This after, she had spent at least $30.00 on cigarettes earlier in the day. PRIORITIES, PRIORITIES!!!

Business as Personal Phoenix

Sometimes opportunity presents itself when things seem at their worst. Unfortunate circumstances can happen to anyone. With all the jobs being cut in the public sector as tax revenues are depleted, The best option may be to start or buy a business. Our office sold two businesses last year to county employees taking a buy out settlement that they were able to invest in businesses that excited them as they had not been in years. Since the job prospects are still dim in many respects, this can be the opportunity you have waited for to try the idea that you have wanted to in the past but were too comfortable where you were. Going into business is always a challenge, but being unemployed is frustrating for anyone with self-motivation. Sometimes, there are situations in a persons background that make finding employment more or a challenge when the competition for existing jobs is fierce. Being out of the workforce for an extended period of time whether it was for raising a family or just being unavailable to work. I was engaged in a discussion recently about the reluctance of employers to hire anyone that had spent time in prison. The best option for those people may be to go into business so that they don't have to deal with that. Decide what talent you have that, with some training, perhaps at the local tech center, can be converted into a viable business. Of course, be sure to check the licensing requirements to see if that can be a problem. So, no matter how bleak things seem when surprises and drastic changes first take place, those with a positive approach to life will find a way to success.

15 Keys to Success in Business

15 Keys to Success in Business...

Key #1- Select a business that fits your personality and value system.
Key #2- Determine the need for the business and potential for growth.
Key #3- Develop a viable but flexible business plan.
Key #4- Put your team of advisors together. Attorney, accountant, insurance agent, computer consultant.
Key #5- Know your financial capacity and plan accordingly.
Key #6- Develop an affordable marketing plan.
Key #7- Outsource jobs others can do better; printing, payroll services.
Key #8- Respect your customers - listen to their needs.
Key #9- Network with the business community.
Key #10- Never stop learning. Take advantage of education and information opportunities available.
Key #11- Keep yourself healthy.
Key #12- Keep your personal life in balance; don't forget family.
Key #13- Plan diversion; everyone needs to get away to maintain balance.
Key #14- Give back to the community.
Key #15- Believe in yourself.

Buying a business has always been a dream for many people and it can be easier that most people think. The entrepreneural spirit is still alive and America is still one of the best places in the world to start and be in business.