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As a business owner, you know what it’s like to lie awake at 2 a.m. Maybe it has happened when you are excited and full of new ideas for your business. More often, it’s because you are worried about issues you will face the next day. Sometimes, it’s because you just woke up with the solution to a problem. I’ve experienced all those emotions about my businesses over the years. Awake at 2 o’clock? is where I share them with you, and hopefully help with answers that will let you sleep.
John F. Dini, CExP, CEPA
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Small business owners are the Hunters of the 21st century. We are 3% of the US population, and yet we create over half of all American jobs. As Hunters, we may not be inclined to manage by the numbers or stick to systems. Are you a Hunter or a Farmer?
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How prepared are you to exit your company?
The Assessment breaks down the four major categories of exit readiness; Finance, Planning, Operations and Revenue/Profit.
Tag Archives: selling a business
Boomer Business Owners’ Retirement Accelerates
Pepperdine University, in cooperation with the International Business Brokers Association and the M&A Source, publishes a quarterly Market Pulse Survey on the sale of small businesses in the United States. The most recent report, covering the fourth quarter of 2012, … Continue reading
3 Responses to Boomer Business Owners’ Retirement Accelerates
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Small Business and BIG Taxes – Timing is Everything
This column typically focuses on the issues of running a business, especially those that revolve around leading employees and growing profits. When I am consulting on issues that include tax planning, I am supposed to include a “Circular 230 Disclaimer”, … Continue reading
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Business Value: Do Your Numbers Add Up?
Most small business owners don’t understand how to value their companies. For some, misunderstanding the way that buyers look at the value of your business can be very costly in the long run. The fourth of our Rights and Obligations … Continue reading
3 Responses to Business Value: Do Your Numbers Add Up?
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Jon,
Where can i find more on SDE evaluation?Jeff
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Jeff,
Pratt’s Stats, among others, will show historical and conparative valuations using SDE measures. To calculate your own SDE, I am sending a worksheet I created directly to you.
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John,
I agree that most business owners take advantage of personal perks while running the business and I think most buyers realize that. When it comes to selling the business I have business owners recast their financials to deduct their perks and add back in a salary for the new owner. It reflects the true value of the company and the buyer can make their decision based on the recast numbers without the tax burden for the owner for the previous three years.
Larry Amon
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When is the Right Time to Sell?
In the last few weeks I’ve had several conversations with owners about selling their companies. In one case a professional firm with whom I’ve worked for the last 4 years completed a merger with a large national company. That was … Continue reading
One Response to When is the Right Time to Sell?
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The right time is NOT when you are down because the business is down. Case in point: a few years ago Mr. X was suffering through a low point in the business because of poor market conditions. He was so affected by it that was seriously thinking about selling (obviously at a very low price because of the down turn in the business). I knew the business had a lot of potential and that the down cycle would be reversed, so I wanted to change his mind. Rather than trying to convince him I decided to talk with his wife who was also very active in the business. I asked her: “What would you and Mr. X do after you sell?” She replied: “I guess we would start another business”. So I asked her: “Tell me, how were the beginnings of this company?” She said: “Oh my God, they were terribly challenging and not much fun”. I said: “So, do you really want to go through all that again?”. She looked at me with puzzled eyes and said: “I never thought about it that way; you are right I don’t want us to have to go through that again”. So they decided to keep the company and work to return it to its rightful place. Today the company is four times the size and they get unsolicited offers for many times the price they would have had to sell at the low point. The moral of the story then is: sell when business is doing well, never when it is down.
I cover this subject in detail in my book “Its Lonely at the Top”; “A Practical Guide to Help You Become a Better Leader of Your Small Company”.
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Freedom Isn’t Free
When asked what they like most about owning their own business, the majority of entrepreneurs put “freedom” at the top of the list. They describe it in a number of ways, working for myself, being my own boss, making my … Continue reading
I don’t stay in the usa but I agree with you on the matter their is a big differ from.genx and the land wil provide a harder operation to the genx than before or ever
Great post — as per normal — thanks John.
I am intrigued by your “Woodstock” password. Is this a reference to Snoopy’s indefatigable secretary? Or to your misty memories of a certain festival in the ’60s?
I think we should be told…….
Since the little birdie was named after the festival, it is one and the same!