3 Reasons It’s Important to Have a Succession Plan, in Writing

As a business owner, you should start thinking about succession planning long before you actually need it. Said this way, when you need, it’s likely too late. What will be your business’s legacy? Who will take over for you? Will it still be the same company? Is selling an option for you? Writing down your answers will help you focus on the reality of the process. Going through this exercise before you are ready to Read More

Cash is King, and Queen

I am always amazed when I meet with a business owner who does not maintain and regularly update a cash flow projection for their business. It’s like driving a car with no gas gauge. It will work for a while, but not for long. I’ll say it this way, I’ve never met with the owner of a good business who does not maintain and regularly update a cash flow projection. Here are a few tips to consider when starting Read More

Business Valuation = Tangible Assets + Goodwill

Valuation of a business (large or small) comes down to forecasting its future cash flow. When the business is sold, the seller and buyer have to agree to how to allocate the valuation between tangible asset value and goodwill (intangible asset value).   Since goodwill is subjective, there is a risk of overvaluing or even undervaluing a company’s goodwill. Therefore, it is a mistake to try to value goodwill. Read More

Selling Your Business, Part 3: Getting a Head Start on the Due Diligence Process

Due diligence is the process a potential buyer goes through prior to closing on an acquisition. The process might uncover problems or challenges in the business, but at the very least it helps the potential buyer know that all representations made by the seller during the selling process are accurate. The Importance of Due Diligence The seller of a business can improve his chances of a deal going through if he Read More

Selling Your Business, Part 2: Understand Your Business’s Market Before Selling It

Understanding your market is absolutely vital to developing a successful business. Knowing what your customers want will help you create products and tailor services that align closely with your sales strategies and inventory. Knowing your market is also helpful for selling your business. Being able to explain to potential buyers the characteristics of the customers you serve and their potential for growth will be Read More

Selling Your Business, Part 1: Understand Your Competition

The number of owners interested in selling their business has increased significantly in recent years. As baby boomers near retirement, more and more are considering options to transition out of their companies. A sale is often the best option, but it can be a confusing and seemingly daunting process to someone who for years has had their head down focused on their business. If you are considering selling your Read More

Four Qualities of a Serious Buyer for Your Business

When you are in the market to sell your business, you want to be working with potential buyers that are financially capable and trustworthy. Here are some clues you should watch for: Financial considerations are lined up Serious buyers have funding in place. They are willing to share their financial status to verify their funding capacity. Serious buyers also understand the business will likely need an Read More

Three Keys to Effective Succession Planning

Whether you plan to sell the business or pass it on to a family member, you want to be proactive to ensure the business will survive and thrive in your absence. This calls for thoughtful and intentional planning. What is Business Succession Planning? Succession planning is a simple concept, though it has many moving parts. The essence of the idea is deciding who you want to leave in charge of the business and Read More

Considering Selling Your Business? Four Questions to Ask Yourself First

For most owners, their business is a huge part of their life. They have put their blood, sweat, and tears into making the company work. They are passionate about what they do and will go to extensive lengths to ensure that their business succeeds. So it comes as no surprise that when it’s time to move on from the company (whether for retirement, health, or financial reasons), the separation process can be Read More

5 Things You Can Do Right Now to Boost the Future Value of Your Business

Imagine you are selling your car. After receiving estimates of the current worth, you take small steps to increase the resell value—change the tires, get a new paint job, have a professional do a full tune-up—and these small steps result in a significant boost to the value of your car, allowing you to receive more money for the sale. The same idea applies to boosting the future value of your business. By taking Read More