The Business of Business Finance
Remember when Blockbuster was the new threat? I remember when video rental was the new technology destined to doom the movie industry...
Many entrepreneurs are proud of how hard they work, of the long hours they have invested into building a strong business. Anyone who has built a company knows the hours are long, but when selling a business, it's much better to be tan.
I think I've come to realize we essentially walk through life backwards.
Over lunch with Kevin and Kyle the other day (Kevin ordered the meatloaf), we realized that a decision they made before they even started their business, was now going to cost them almost $850,000 ... each! That may seem like an expensive lunch, but it could get even more expensive for these two entrepreneurs if they continue to ignore the problem while increasing the value of their company. Let's take a look at the problem, which is actually alphabetical.
It's that time of year again when business owners get frustrated by our complicated tax code and their constantly growing tax bill. But, did you know that Warren Buffett doesn't think you are paying a "fair share" of taxes?
I consume a lot of business books and can usually tell an academic from an entrepreneur in just a couple of pages — even without knowing the bio. This week I came across Built to Sell, which I can strongly recommend as an accurate and realistic guide from a successful entrepreneur who has "been there, done that."
Timing will be friend or foe to any small business owner engaged in exit planning or considering a business sale. But, a recent Wall Street Journal report reminded me that timing for a business sale is a challenge for the big guys as well...
Forward-looking business owners who engage in exit planning 1-5 years before they actually sell their business realize these new SBA loan changes will create a new and potentially large pool of executives, key employees and first-time entrepreneurs who are now viable candidates to buy a business, even without substantial personal net worth.
There are critical employees in your business who have the ability to impact your sale and the value of your company. Here are some guidelines to keep in mind while managing your company sale process:
One of the great challenges for entrepreneurs who build a valuable business is recognizing a good opportunity to sell their business. The hard truth about unloading a business is that the most lucrative time to sell is seldom dependent on a personal timetable. More often there's a "window of opportunity" created by market forces.