Most businesses will lose a certain amount of customers over time. This attrition can be caused by anything from customers who are unhappy to customers moving away. The value of a business has a lot to do with the expectations of a buyer being able to maintain the current revenue levels (in… Read More »Tip #050 Marketing programs to replace normal attrition.
Buyers are always interested to know if there are well-trained key employees that will stay with a new owner of the business. That expertise within the company’s operations can be very important in the transaction and future performance. Key employees can include top managers, department heads and other long-time employees… Read More »Tip #049 Key employees in place can be very important in the sale of a business!
“Due Diligence” or the “Right of Inspection” gives the buyer the full rights to inspect all items in a business — financials, equipment, inventory, premises and anything else. And if the buyer finds any material discrepancies, he or she usually has the legal option of backing out. Some transactions fall… Read More »Tip #047 Sellers must prepare their business for due diligence!
No matter what price a business owner wants for his or her company, the market is the true indicator of what buyers are willing to pay. Selling a business can be very emotional – all the hard work over the years, attachment and loyalty to employees, the profitability in the… Read More »Tip #046 Business owners and the “Writing on the Wall”!
Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors… Read More »Tip #045 – How did you come up with that number?
Successful business owners are always learning and finding new ways to improve their operations. But business owners who “draw a line in the sand” and close the door to new methods, new technology and updated equipment can see a drop in market position, revenues and profitability. As a result, buyers… Read More »Tip #044Business owners who “Draw a Line in the Sand” and refuse to update their operations
We all hear a lot about what we SHOULD BE DOING from consultants, advisors, business coaches — even our spouses. But for whatever reason, we don’t always do what is best for us. Business owners’ careful planning for leaving their business is crucial to getting top dollar or smoothly passing… Read More »Tip #043 – “We know what to do, we just don’t do what we know!”
The best way to receive top dollar for a business is by showing good cash flow over the years preceding placing the company on the market. That means business owners have to be good planners, smart managers and pay attention to details. They need to have ongoing marketing plans in… Read More »Tip #042 Maintaining strong cash flow can mean lots of offers!
They just never want to retire! For business owners, it can be difficult and certainly understandable — losing the prestige of owning a business, control over their own destiny, caring for and respect from their employees. But by delaying the inevitable, there are too many stories of lost opportunity, lost… Read More »Tip #041 Football Players and Business Owners have in common?”
Believe it or not, there are many companies who are doing just fine out there, thank you very much. Business owners can’t dwell on troubling headlines or negative news coming out of Washington. They need to focus on their own business, on their products and services, on their market. They… Read More »Tip #040 Why don’t you “Mind Your Own Business!”