Every business owner wants to increase their revenue and grow their business. Unfortunately, most of them assume there’s only one way to do this: Get more customers. It’s true that a larger number of customers might increase sales and revenue, but getting those customers usually means expensive advertising and marketing campaigns, which can have uncertain […]
Two Ways to Create Exponential Growth for Your Business Read More »
In 1789, Benjamin Franklin famously wrote in a letter to his friend that “in this world nothing can be said to be certain, expect death and taxes.” This adage is profound, but I would politely disagree with Mr. Franklin. I believe there is a third certainty: You will leave your business one day. Now, you
Is Your Buy-Sell Agreement Fatally Flawed? Read More »
When I consult with small business owners, there is one question I always ask: Are you working in the business or on the business? At the beginning of the typical entrepreneurial cycle, the entrepreneur is a jack of all trades—bookkeeper, computer technician, customer service representative. He does everything and anything to make the start-up viable.
How Much Is Your Time Worth? Read More »
From 2008 until 2012, the door was closed for almost all small closely held business exits. Especially in ’08, ’09 and ’10, very few people (and no lenders) were willing to take on the risk of a business purchase. Beginning in 2012, the market began to show signs of life. Since then the market has
How the Wrong Asking Price Can Kill Business Salability Read More »
There are many ways to estimate the value of a closely held business, and they all seem complicated. But, in reality, the process isn’t much different than pricing a used car. Figuring out a price for a car is fairly simple. First, keeping in mind the price that was originally paid for the car and
3 Ways to Assess the Value of Your Business Read More »
After you’ve estimated the value of your business, settled on a reasonable price range, and put the sale process in motion, there are proactive steps you can take to make sure that the sale is as successful as possible. From an objective point of view success means simply closing the sale. But from a subjective
How to Leverage the Type of Buyer to Maximize Business Value Read More »
Business owners generally understand that their business needs to have contracts and agreements in order to protect itself from being sued and having to pay lawyers to defend the company in court. What is less understood is how business contracts impact business value. Well-written contracts can enhance overall business value, and poorly written contracts can
Surprising Ways the Lease Affects the Value of Your Business Read More »
A business’ value is a function of many hard and soft factors. Of course, revenue and cash flow are vital to determining value, but the likelihood that the cash flow will continue in the future—or rather the risk that it will stop—is another vital component of business value. Business owners often overlook the role that
Protecting Business Value with Employment Agreements Read More »
Customers are the sine qua non of business. They are the difference between a booming Blockbuster Video store in the 90s and that strange building your kids ask you about sometimes. Customers bring revenue and, hopefully, profit. However, even though it may sound paradoxical, businesses outside of the mass-retail or related industries, don’t want every
Customer Agreements as Tools to Increase and Protect Business Value Read More »
