Business owners must never stop learning how to improve the sales, profitability and value of their businesses. Smart owners oftentimes find solutions to their problems by using search engines such as Google, Yahoo and Bing. And the increasingly popular YouTube has thousands of videos with tutorials and webinars on a… Read More »Tip #038 Internet Search Engines Can Be a Business Owner’s Best Friend!
The hard truth is, many businesses will sell at a low price or not sell at all. Why? Because those business owners don’t understand how to create value and minimize risk for a new owner. Or they don’t understand how a business is sold. Business owners need to learn how… Read More »Tip #37 Business owners need to know what it takes to sell a business!
Oftentimes, sellers want to go to market with a very high price, hoping buyers will see what the seller perceives is a great value. Sellers figure that buyers will at least check it out. Unfortunately, there are many qualified buyers who won’t even look at a company if they think… Read More »Tip #036 Pricing a business too high can be a risky strategy!
If a company is on a downward trend, many business owners think they can bring their companies back from a valuation that doesn’t meet their expectations. But it takes energy that many business owners no longer have. Very few companies can make that leap back to new heights without a… Read More »Tip #35 Low Owner Energy, Low Company Performance
Many business owners aren’t familiar with the principles of accounting. They need to understand their profit and loss statements and balance sheets so they can make good management decisions. They also need to understand their financials when dealing with banks, taxes and negotiating for the sale of their company. If… Read More »Tip #034 Business owners need to understand accounting!
Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income. But this can be misguided planning for trying to get top dollar when selling the company. Business owners need to realize valuation is usually determined by a multiple of identifiable cash flow and that… Read More »Tip #33 Minimizing income taxes – short term strategy or long term mistake?
Yes, it’s overwhelming. There is so much new technology invading our world it can be hard to understand and realize it’s impact. Business owners have to figure out what might help their businesses grow. Whether it be email campaigns, social media, e-commerce, more functional websites, cloud computing or new equipment,… Read More »Tip #32 Business owners must take advantage of the new technologies!
Most business owners think their business should be priced more than it’s worth — mainly because of all of their hard work over the years. But they have to realize there are certain economics and realities that dictate the price. Besides the various methods of business valuation, the cash flow… Read More »Tip #031 Buyers and Sellers usually have a very different view of the value of a business.
The days of the 5 and 10 year business plan are long over – everything is changing at such a fast pace. Business owners need to review their plan to determine what has already changed and forecast what could change – competition, technology, demand for the product or services of… Read More »Tip #30 Time to revise the business plan….. again!
Whether applying for a loan or selling the company, business owners must be prepared to disclose EVERYTHING. The business needs to look good — in all areas. To not be disappointed, business owners must plan, address weaknesses, and be realistic in their expectations if they don’t have solutions.