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Can changing your mindset really improve your business bottom line?

Most business owners start their own business based on their passion for what it is they do. Unfortunately, it takes much more than passion to build a successful business. You must have a specific vision for what it is you want your business to accomplish and the direction you want to take to produce the results you expect your business to achieve.

Thought is the most powerful force in the universe. Our thoughts are the controlling factor in what we manifest and create in our lives. Use your thoughts to create a specific vision for your business and then apply the right strategies and tactics to grow and develop that business.

What you need to know…

Creating a millionaires mindset requires action on your part. You must create a mindset that’s focused on performing your highest impact and highest income-producing activities on a daily basis.

If you’re not happy with your business’s current results, then ask yourself a question and be brutally honest as you answer it. WHY are you getting such poor results? WHY are you failing to attract clients? WHY are you attracting the wrong clients? WHY are you failing to generate the revenue and profits you expect from your business?

One of the things that we have found over the years is that people who are broke, struggling or just getting by – don’t think the same way as people who are financially abundant. They don’t believe the same things as financially challenged people do, and therefore they don’t behave the same way. In short, they take different actions.

Why you need to know this…

Small business owners have been mentally conditioned to behave a certain way. They have specific beliefs… such as “in order to make more money, I have to work harder.” “Money is the root of all evil.” “No pain, no gain.” “Money doesn’t grow on trees.” “If I don’t do it myself, it will never get done.”

These beliefs lead to specific actions such as working more hours and putting forth more effort in a vain attempt to increase revenue and profits. That leads to specific results such as feelings of overwhelm, anxiety and frustration… and a deep-seated belief that more and more effort is required, even though results seldom if ever appear.

Do you know what your current beliefs may be costing your business today? For example…

Do you succumb to mental barriers that may be sabotaging your success?

Are you laser-focused on your highest income-producing activities?

Are you hiring, assigning, delegating or bartering all of your non income-producing and less productive tasks?

Do you know the specific steps you can take to immediately create a “millionaires mindset?”

Would you like to know how you can learn to develop these critical skills?

Our E-Learning Marketing System™ does all of this… and much, much more. But don’t take our word for it. Let me show you right now how a business owner can change the way they think about their business… and do so in such a way that it creates a dramatic increase in effectiveness and revenue visit http://increaserevenueandprofits.com/guidedtour for a Test Drive.

To your success,

Tom Flowers

P.S. Please remember that at any time you feel ready and qualified to move forward and acquire the professional help that can enable you to build the business of your dreams, just click here and check out our E-Learning Marketing System™. It’s helping small business owners just like you get the answers and the help they need to build the business they have always wanted.

We created the E-Learning Marketing System™ with the perfect combination of online resources, tools and support to get you out of any financial distress you’re presently experiencing… help you get laser-focused on your highest income-producing activities… and help you develop and then apply the fundamentals that build multimillion dollar businesses. click here to see for yourself.

The 7 Cs of Business Planning Success

The 7 Cs of Business Planning Success

Success can be a nebulous concept. What one business owner considers success might only be a step on the path to success for you. What are some of the guidelines that you can use to foster the kinds of planning that achieve the success you want?

Tom Morris—a pioneer of business thinking—proposed the 7 Cs of Success. These seven Cs speak to how successful people achieve excellence, regardless of field or industry. Let’s look at these seven Cs and you can apply them when planning for your successful future.

A clear CONCEPTION of what you want, a goal clearly imagined

The very first C speaks to having defined goals. Goals are the foundation of all future success. You may have goals for your future success, and you should make those goals SMART (Specific, Measurable, Actionable, Realistic, and Time-bound). Once you’ve done that, you can adequately act.

An emotional COMMITMENT to the importance of what you’re doing

An emotional commitment to your cause is a major aspect of successful planning. Like most people, you likely make decisions and act based on your emotions and gut reactions, in tandem with logic and analytics. This can be a good thing. If you can harness the emotional side of planning, it can encourage you to move the planning process quickly and efficiently.

A strong CONFIDENCE that you can attain your goals

Laying out all the wants and needs you have might cause you to ask, “How can I possibly do all of this?” One way to accomplish even the most ambitious goals is to have a written road map of what to do, by when, and by whom. Writing goals down can make them more manageable and give you the confidence to formulate strategies to tackle them.

A focused CONCENTRATION on what it takes to reach those goals

Planning for future success is more of a marathon than a sprint. It’s normal if you’ve ever found yourself focused on fending off each day’s problems and postponing the future. This is where it can be prudent to call on expert advisors who can focus on bigger picture planning items to keep you concentrated on both your present operations and your future goals.

A stubborn CONSISTENCY in pursuing your vision

Having a consistent planning process can increase the likelihood of successfully pursing your vision of a successful future. When unexpected hurdles arise, having a consistent planning process can give you the means to keep planning moving toward achieving your vision for yourself and your company.

A good CHARACTER to guide and keep yourself on a proper course

Planning for future success hinges on trust. From the key employees in your company to any outside advisors you work with, you should be able to trust the people who play a role in achieving your goals. Ask yourself, “Are the people working for me doing everything they can to keep me on track?”

A CAPACITY TO ENJOY the process along the way

Planning for future success can be challenging. It’s possible that you’ve never engaged in this type of planning before, which can make you reluctant to move forward. To make planning enjoyable, you should set realistic, achievable, and actionable goals. Usually, these goals involve growing the business and its cash flow. You can then establish the means of achieving growth in value and cash flow. Enjoyment and satisfaction occur as you see your planning and implementation efforts bear fruit.

Conclusion

The seven Cs of success all share a common theme. They give you control: control over your present successes and control over how you pursue future success. If you’d like to discuss how you can maintain the most control over your future and implement these seven Cs in your planning, please contact us today.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

Determining the Right Time to Sell

 

Determining when it’s finally the right time to sell can be a tricky proposition.  If you are thinking about selling your business, one of the best steps you can take is to contact a business broker.  A good business broker will have years, or even decades, of proven experience under his or her belt.  He or she will be able to guide you through the process of determining what you need to do in order to get your business ready to sell.

One major reason you should contact a business broker long before you think you might want to sell is that you never know when the right time to sell may arise.  Market forces may change, unexpected events like a large competitor entering your area, or a range of other factors could all lead you to the conclusion that now, and not later, is the time to sell.

In a recent The Tokenist article, “When is the Best Time to Sell a Business?”, author Tim Fries covers a variety of factors in determining when is the best time to sell.  At the top of Fries’ list is growth.  If your company can demonstrate a consistent history of growth, that is a good thing.  Or as Fries phrases it, “What never varies, however, is the fact that growth is a key component, buyers will look for.”  Growth will be the shield by which you justify your price when you place your business on the market. 

If your business is experiencing significant growth then you have a very strong indicator that now could be the time to sell.  Fries points to a quote from Cerius Executives’, CEO, Pamela Wasley who states, “When your business has grown substantially, it might be time to consider selling it.  Running a business is risky, and the bigger you get, the bigger the risks you have to face.”  Again, growth is at the heart of determining whether or not you should sell.

Knowing the “lay of the land” is certainly a smart move.  For example, have there been a variety of businesses similar to your own that have sold or were acquired recently?  If the answer is “yes,” then that is another good indicator that there is substantial interest in your type of business. 

Reviewing similar businesses to your own that have sold recently can help you determine how much buyers are paying for comparable businesses.  This can help you spot potential trends.  In short, you should be aware of market factors.  As Fries points out, everything from relatively low taxes and low interest rates to strength in the overall economy and an upward trend of sales prices can impact the optimal times for a sale.

Now, as in this exact moment, might not be the right time for you to sell.  Getting your business ready to sell takes time and preparation.  Fries points out that smart sellers “look for a good time, not the perfect time” to sell a business.  Working with a business broker is a great way to determine if now is the right time to sell your business and what steps you have to take in order to be prepared for when the time is right.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

Copyright: Business Brokerage Press, Inc.

shurkin_son/Bigstock.com

How Do Business Performance and Health Affect Your Planning?

How Do Business Performance and Health Affect Your Planning?

Many successful business owners don’t feel any urgency to plan for the futures of their businesses. When owners are comfortable where they’re at, they may struggle to plan with a longer view of their business futures, perhaps asking, “Why change what works?”

One way to answer this question is to define what makes a business strong. Strong businesses are a marriage between performance and health. The difference between business performance and business health as follows:

• Business performance is the business’ ability to win today.

• Business health is the business’ ability to win tomorrow.

As a successful business owner, your business may perform well right now. But have you considered the shape of your business’ health? For example, many successful businesses meet or exceed various expectations based mostly on the owner’s presence. If that owner were to leave unexpectedly (via death, injury, or otherwise), the business would most likely suffer, if not fail altogether. In this example, the business may have a strong performance. But its health—its ability to win tomorrow—is in jeopardy because if anything were to go wrong with the owner, it’s likely that things will go wrong with the business.

Compounding that challenge is the fact that many owners are incredibly optimistic about themselves and their businesses. They may say, “We can worry about that when it’s time.” But the time to worry about the business’ health is now, especially if you, your family, and others rely on your business to support their lifestyles.

Let’s look at two ways you can marry business performance to business health.

Pinpoint problems in the context of how your business affects you and others

Business owners typically don’t answer to anyone. You’re likely the boss, the decision maker, the interrogator. If your business consistently turns out a strong performance, you may question why you need to plan for your business’ future.

One way to confront this (sometimes false) sense of comfort is to ask yourself, “How does this business affect me and others I care about?” Though some answers may be obvious (e.g., “The business is my nest egg”), other answers may be less apparent. For example, you may ask yourself, “Can my business run smoothly without me?” If the answer is “no,” then how might that affect your family and employees if you were ever forced out of the business by death, incapacity, or something else?

Your business is likely a vehicle to financial security, but it might also be much more than that. If you want to eventually transfer your ownership to children, you should know whether your children want to run the business, whether they’re capable of running the business, and how any differences in management styles might affect the business. Likewise, if you intend to sell to a third party, you may need to determine whether you have a management team that can continue smooth operations.

An ounce of prevention is worth a pound of cure. Diagnosing your business’ long-term health often begins when you dig into how your business affects you and the people or causes you care about most.

Calculate consequences

Knowing how your business affects yourself and others gives you a baseline to consider consequences. For example, your business may have enjoyed years of success. During those years, your business may have provided your family with a lifestyle that you could have only dreamed of when you founded the business. You may wonder why you would change what’s worked.

In this case, a question you might ask is, “Is this business that has provided my family and me with so much protected?” Even without going into vivid detail, the idea that your business might be vulnerable can get you to consider the consequences of not having a plan for future success. Perhaps there are threats or risks you’ve ignored for years, because those threats and risks haven’t yet affected the business or simply because you don’t have a solution to address them. This is fairly common among successful owners.

By calculating consequences, you can focus on what it will take you to maintain the business’ long-term health. It can also encourage you to act, because other people may be counting on you.

Marrying business performance and health is rarely a one-person show. If you’d like to talk about how your business affects yourself and others, and what the consequences of not having a plan for future business success might be, please contact us today.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

Special thanks to Chuck Hollander of Red Flag Advantage for providing the definition of a strong business.

Check Out These “Before” And “After” Websites

Over the past several weeks, we’ve been discussing the fundamentals of marketing…

• have something good to say
• say it well
• say it often

Click here to review the video that explains the important factors that led to the creation of these fundamentals.

Last week we continued our discussion about the second fundamental… say it well.

We discussed the “magic formula” that will enable you to write powerhouse marketing.

The magic formula is called the “Conversion Equation,” and it looks like this…

Interrupt, Engage, Educate and Offer

As a brief review, the Interrupt refers to a problem-based, attention-grabbing headline.

The Engage is a subheadline that promises a solution to the problem referenced in the headline.

The Educate provides the solution and backs it up with evidence and proof.

And the Offer compels the prospect to take action by providing VALUE.

It’s absolutely critical that you know and understand how to use this “Conversion Equation,” and I promised that this week I would provide you with before and after examples that will prove to you the absolute power of this amazing formula.

Click here and check out these two websites (they should look familiar to you).

Notice how the “After” site follows the Conversion Equation to the letter, and will result in this child psychologist gaining the ability to out-market and out-sell every other child psychologist hands down.

This child psychologist specializes in helping adolescents with a range of problems from emotional and behavioral issues to teen pregnancy and bullying.

In the psychologist’s “Before” site, notice how he attempts to target ALL of the prospects who may have a need for one of more of his services.

This makes it impossible to speak directly to any of them with a targeted, problem-based headline… or a subheadline promising a specific solution.

Obviously there is a BIG difference in the messaging for a parent needing help with bullying issues versus a pregnant teen (can you say “day and night”).

But in the “After” site, the psychologist is addressing only the parents with kids suffering with emotional and behavioral problems, and therefore gains the ability to speak to them directly and target their hot button, problem-based issues.

Now listen, that does NOT mean this psychologist can’t continue to treat the other conditions as well.

But to do so effectively, he MUST develop a separate site for EACH of the conditions he treats.

Then he MUST create targeted marketing that directs the right prospects to each individual site.

As an example, he could run a pay-per-click campaign on Facebook with an ad that says… Sick and Tired of Your Child’s Belligerent Attitude?

Anyone clicking on that ad would be instantly transported to the “After” site where most (if not all) would request the doctor’s informational offer… mainly because of the value it promises, coupled with the fact it is NO RISK to the prospect (they don’t have to speak directly with anyone).

Then the psychologist could run a second Facebook ad that said… Child Being Bullied – Here’s What All Parents Should Know!… and then those parents will be directed to the psychologist’s “bullying” site.

Now answer this question… how many child psychologist’s are currently doing anything like this?

Simple answer… NONE! ZERO! NADA! ZIPPO!

THIS is the great opportunity that is being handed to you right now!

99.9% of business owners have NO clue that this is the key to effective marketing, and now YOU have the knowledge to implement this in your business… and if you do, you will begin to dominate your market.

But there is a reason WHY this works this way, and next week I’ll share that secret with you!

Until then, be successful!

Tom Flowers

P.S. Also remember, to determine how likely your marketing is to convert, simply fill out my Conversion Equation Evaluator.

This evaluator has the unprecedented ability to predict the future success of any marketing collateral you develop… as well as predict whether that marketing will be profitable or not. And, it’s 100% free to use!

After calculating your marketing conversion level, I can show you exactly what to do with your website and marketing collateral that could double or triple the number of prospects who respond to your marketing.

Just schedule a complimentary meeting with me.

How Long Does Planning for Your Business’ Future Take?

How Long Does Planning for Your Business’ Future Take?

One of the first questions business owners ask about exiting their businesses is, “Just how long is all of this supposed to take?” The true answer is it depends. There are many things to consider as you shape your Exit Plan. You might have a business that’s worth $10 million but is overly reliant on you for success. You might have a strong management team to take over but only one or two huge customers. Different obstacles provide different answers to “How long does this all take?”

Fortunately, there are some general guidelines for how long planning can take. However, Exit Planning timeline guidelines are primarily dependent on you. If you and your business are ready for an exit, advisors can shape and implement an Exit Plan for you. If neither you nor the business is prepared, planning will need to include a phase for getting both you and the business ready, as well as a phase devoted to designing and implementing the actual exit.

Time It Takes to Shape the Exit Plan

Shaping the actual plan can take as little as a few months. To quickly shape Exit Plans, you must have all the appropriate data; know what you have and what you need for financial independence; and know which Exit Path you want to take and why.

However, though you may have ideas for what your ideal exit looks like, your ideas are likely loaded with questions you never considered. For instance, you may say that you want to transfer your business to your children. This raises questions such as “What if my kids don’t want it or can’t run it?” and “What if they can’t pay me for total ownership for 10 years or more?” Unless you uncover and address these questions, planning could take years (or never get done at all).

Often, delays in planning result from an owner’s uncertainty. Whether that uncertainty is about how much money they want, whom they want to transfer to, or whether they can see themselves not running a business, the owner’s uncertainty often causes delays.

Time It Takes to Fully Implement and Execute the Plan

Once you’ve shaped your plan for your business’ future, it’s time to implement and execute it. If you are ready to act, implementation and execution can begin immediately. Here are a few things to consider.

It Takes Time to Build Necessary Business Value

Building necessary business value can be the longest part of implementing an Exit Plan. Many business owners have a sizeable gap between the resources they have and the resources they need to achieve their goals. This can mean that owners must increase the value of their businesses beyond what they’re worth today.

Compounding this challenge is the fact that you and your existing management may not have the know-how to grow the business further and achieve your Exit Goals. To build necessary value, you’ll likely need a growth plan. A strong growth plan positions you and your management to implement strong Value Drivers in the business.

Different Exit Paths Have Different Timelines

Recall that you have two overarching options when you sell or transfer ownership. You can sell to a third party, like a strategic buyer, or transfer to an insider, such as a child or your employees. If you and your business are prepared for an exit, and you commit to pursuing a third-party sale, it’s possible for you to sell your business and be completely out within a year or so.

Typically, transfers to insiders take longer, even if you and your business are ready for your exit. The additional time is due primarily to incoming ownership’s financing capabilities. But the time it takes to sell a business to a third party or transfer to insiders is not primarily dependent on the nature of the Exit Path. It’s dependent on whether you are ready to exit and whether your business can support your exit.

Conclusion

In Exit Planning, time binds all decisions. As you look toward your future, whether your timeline is one year or 20 years, consider asking yourself, “Do I want to wait until I’m ready to move on to do all these things?” Experience shows that the answer is “No.”

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

Should You Sell Your Family Business?

 

When the complicating variable of family is added to the equation of selling a business, the situation can get rather messy.  Family usually complicates everything and businesses are, of course, no exception.  Ken McCracken’s recent article “Family business: to sell or not to sell?” 6 questions to help you make the right decision,” seeks to decode the complexities so often associated with family businesses. 

Consider the Market 

The foundation of determining whether or not now is the right time to sell must begin with market forces.  Determining how much your business is worth is a key variable in any decision to sell. 

The best way to determine the worth of your business is to have an outside party, such as a business broker, evaluate your business.  What you believe your business to be worth and what the market dictates could be very different.  You may discover that your business does not have the value that you hoped for.  If this is the situation, then selling simply may not be an option.

What is Next for You?

Tied to knowing your market value is understanding what you will do next after you sell your business.  For example, do you have a family member who can run the business without you?  What will you and any family members who work for the business do after the sale goes through?  You may discover that the sale could be very disruptive for you personally.  All too often, people fail to recognize the emotional and mental stress that comes along with selling a business.  Many owners begin the selling process only to discover that they are not emotionally ready to do so.  While everyone wants to be unemotional in making their business decisions, this is not always the case.

Due Diligence 

You will also need to deal with the issue of due diligence.  Working with a business broker is an excellent way to handle the due diligence process.  Business brokers usually vet prospective buyers ahead of time, which can save you a great deal of aggravation and wasted time. 

McCracken believes business owners should investigate how the prospective buyer handled previous acquisitions.  Specifically, McCracken believes that business owners should look to how well the prospective buyer honored previous commitments, as doing so is an indicator of how trustworthy a buyer may be. 

Planning for Negotiations

Finally, McCraken believes it is essential to know who will oversee negotiations.  It is key to note that many deals that could have otherwise been successful, fall apart due to poor negotiations.  A business broker can be invaluable in negotiations.  After all, who wouldn’t want someone with dozens, or even hundreds, of successful transactions advising them?

Selling a family business can be emotionally charged and can cause significant life changes for not just you, but for members of your family as well.  Often, family businesses were built up over a lifetime or even over generations, which can make the decision to sell quite emotionally charged.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

Copyright: Business Brokerage Press, Inc.

Mangostar/BigStock.com

Do You Know How To Turn Your Business Card Into A Lead Generating Machine?

 

Do You Know How To Turn Your Business Card Into A Lead Generating Machine?

Your business card is the most often overlooked form of lead generation. In fact, most business owners never even consider the possibility that their business card should be driving prospects to them in droves.

And yet, it can be one of your most versatile lead generation tools for your business’s product or service.

What you need to know…

The key is to create a business card that gets your prospects to take a specific action rather than simply provide boring contact information.

There’s a formula to follow that will help you create powerful business cards that compel your prospects to take a specific action. That formula states that you must Interrupt your prospects (usually done with an attention grabbing headline), Engage them (by promising a solution to the problem the headline presented), Educate them (by providing compelling information that highlights the value you offer) and making them an irresistible Offer (a specific call to action).

The front of the card will look like a fairly typical business card. It contains your logo if you have one, your business’s name, your name and title, and at the bottom is your address with city, state and zip code. However, the last line on the card should be in red type and say… “see opposite side for special offer.” Who can possibly resist turning that card over to find out what that special offer is?

And since most business cards were received from the individual themselves, there is already a certain rapport, relationship or trust level established that increases the likelihood that they will respond to your offer.

Why you need to know this…

Your prospects are literally bombarded with marketing messages today. They basically tune them all out. The business card just described adds a “unique” flavor to the business owner who uses them. The card with the “offer” in red effectively Interrupts them. Then when they turn it over, they see another headline that Engages them by promising to solve a major problem, frustration or concern they tend to experience when doing business with a company like yours.

Since the business card itself isn’t large enough to effectively Educate them on what you do, the Offer must do double duty by educating them about your product or service as well as compelling the prospect to take a specific action. Both of these can be easily accomplished by making the offer an informational offer such as a report, a CD, a DVD, a teleconference call or possibly a webinar.

But consider one additional suggestion. What if a prospect COULD become educated from your business card? With the popularity and easy access to YouTube, try this. Video yourself being “interviewed” about your area of expertise. Just a short two to three minute clip is fine.

On the front of your business card, just below your contact information, insert this wording… “Check out my expertise for yourself!” Then add the video URL for them to enter into their browser. This video should be someone interviewing you “Larry King” style and automatically positions you as an “industry expert.”

But don’t stop there. Create a second video of approximately the same length, and just below the previous wording, insert this phrase… “Here’s how I can help you now!” Add the video URL for this video, and it should be you looking directly into the camera and offering them a compelling reason to take a specific action.

The cost to you if you fail to act…

When your clients can receive compelling information about what you do in a non-threatening way, they are much more likely to respond to your offer and eventually become a client.

So are you using your business card to generate leads?

Do you know how to structure the message on the card so it generates results?

Are you aware that every marketing piece, including your business cards, should always contain what is referred to as “persuasion architecture?”

Do you have the knowledge and skills to effectively create all of this?

All of these suggestions can turn your business card into a lead generation machine.

To take a Test Drive on our system visit http://increaserevenueandprofits.com/guidedtour

To your success,

Tom Flowers

P.S. Please remember that at any time you feel ready and qualified to move forward and acquire the professional help that can enable you to build the business of your dreams, just click here and check out our E-Learning Marketing System™. It’s helping small business owners just like you get the answers and the help they need to build the business they have always wanted.

We created the E-Learning Marketing System™ with the perfect combination of online resources, tools and support to get you out of any financial distress you’re presently experiencing… help you get laser-focused on your highest income-producing activities… and help you develop and then apply the fundamentals that build multimillion dollar businesses. click here to see for yourself.

Why You Should Focus on Proper Exit Planning

 

If you are like many business owners, you are primarily focusing on building your business.  Yet, as we’ve covered here many times before, you should start thinking about what you’ll need to do to sell your business before you even officially launch.  Many businesses can take years to sell or even fail to sell all together.  For this and many other reasons, it is important to invest some time and energy into thinking about proper exit planning and strategies. 

Walker Deibel’s recent Forbes article, “How Proper Exit Planning Benefits the Buyer and Seller,” Deibel discusses his interview with Exit Planning: The Definitive Guide, author John H. Brown. Brown and Deibel both agreed that, when properly handled, exit planning can help both the seller and the buyer. 

Exit planning can make a business more transferable.  As Deibel points out, when buyers are evaluating businesses, transferability is a key factor.  A buyer must feel that he or she can walk into a business, take it over, keep it running effectively and even grow the business in the future. 

A key aspect of being able to buy a business and having that business be successful is that all relationships from vendors to customers are transferable.  A good management team, one that can step in and help a new owner thrive, is a must.  Building that team in advance is a savvy move for any business owner looking to sell his or her business.  Concerns on any of these fronts can spell doom for a seller.  If a buyer doesn’t feel that they can operate a business, then they probably shouldn’t be buying it.

Great exit planning most definitely benefits the seller as well.  As Deibel notes, when sellers engage in exit planning, they realize how much money they need in order to exit.  In turn, this forces sellers to become very focused and goal-oriented.  Sellers will take proactive steps to ensure that their business is as appealing to a potential buyer as possible.

Ultimately, proper exit planning is a win-win, one that benefits both buyer and seller.  Exit planning can provide sellers with much-needed clarity while simultaneously lowering the overall risk that sellers face.

Buying or selling a business is a multifaceted, and often quite complex, process.  The sooner you begin working with a professional, like a business broker, the better off you’ll be in finding the right business for you and your particular needs.  For most people, buying or selling a business is the financial decision of a lifetime.  Having a proven trusted partner, one that knows the lay of the land, is simply invaluable.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.

 

Copyright: Business Brokerage Press, Inc.

ismagilov/BigStock.com

 

If You Love What You Do, Why Should You Make Plans to Leave?

If You Love What You Do, Why Should You Make Plans to Leave?

Many business owners love the companies they’ve founded, whether it’s because of the work they do, the changes they effect, the money their companies provide, or something else. When you carve out a comfort zone within your business, you might question why you would want to plan for your business exit. Today, we’ll look at a few reasons why owners who love their companies should still make plans to leave.

Post-business life usually doesn’t get cheaper

For many business owners who intend to leave their businesses before they die, financial security is an absolute must. While you run the business, you pull a salary. You might use perks like company vehicles, insurance, and travel. Perhaps you take advantage of your personal clout as a successful business owner. Once you exit the business—by choice, death, or otherwise—those things tend to go away.

A strange but relatively common mind-set for business owners is the idea that they can cut back on their spending once they’ve exited. This is almost never the case. If you exit by choice, you’ll likely spend at least 75–90% of what you spent when you owned the business. You may want to travel, or lavish your family with gifts, or set your grandchildren up for college: all without the safety net of a steady income provided by the business.

In short, post-business life is usually as costly as life before the exit. Even if you don’t intend to exit for 5–10 years (which is what many owners say they intend to do), you’ll likely need to know whether you can maintain your current lifestyle once you do leave.

You can begin to determine your financial situation in a few ways. You can establish your goals and estimate what it will cost to achieve those goals. You can determine the gap between the money you have and the money you need to achieve those goals. You can also compare that gap to the company’s current value, then begin installing Value Drivers that allow you to sell or transfer the business for the amount you want and need

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All of this requires time. So, even if you love your company and don’t see yourself leaving for several years, or even decades, it’s likely in your interest to start planning for that eventuality. Because post-business life usually doesn’t get cheaper.

Planning lets you focus primarily on what you love

Many business owners often find themselves doing things they never imagined doing within their businesses. Some of those unexpected activities are things they’d rather not be doing. For example, an introverted owner might find that she needs to be the face of the company. A key focus of planning is finding the best people for the right job so that you don’t have to be everything to everyone.

A common way to do this is to find or train next-level managers. Next-level managers take on many of the responsibilities you likely find yourself stuck with. Oftentimes, those next-level managers can handle those responsibilities better than you can, if for no other reason than you simply aren’t too passionate about those responsibilities.

The flip side of this coin is that with proper planning, you can position yourself to do only the things you truly want to do: the things you likely started the business to do in the first place. This can make ownership even more fulfilling and can let you focus on the things you enjoy as you begin to wind down your ownership.

Life goes on

About 10% of owners say that they want to die at their desks. Surely, planning is unnecessary for them, right?

That’s usually not true. Even owners who plan to die at their desks often have people or causes they care about that the business directly affects. You may have family members who rely on the business to maintain their lifestyles. Without proper planning, what happens to them? You may want to assure that after you die, your employees still have jobs (or a safety net that gives them time to find new ones). What happens to them without proper planning?

Even if you plan to die at your desk, planning for future success can still be valuable to you. You can install business continuity plans that can give people you care about direction regarding what happens to the business once you die. You can install next-level managers whose goals and managing styles line up with your values-based goals. You can even help your family continue to maintain their lifestyles without the business.

If you’d like to discuss specific strategies you can use to address these issues, please contact us today.

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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, value your business, or are personally interested in owning or building value in your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.