Category Archives: entrepreneur

Relocating Your Business and Your Life for Business Owners

By | | , , , , , , ,
Leave a comment

Small business Owners may face the prospects of relocating their business.  Sometimes moving a business may be a matter of moving your 1 person internet business, or may involve moving your brick and mortar, 25 employee business.  But usually when you are relocating your business you are also  relocating your life.    Ten years ago my family and I moved 1500 miles away from my business.  Subsequently I ran that business for 7 years remotely with the significant help of a qualified management staff and eventually sold that business.  My current status as a Dad and as a business broker in Florida has me and my family involved with another relocation.

Reasons For Relocating Your Business

People move for various reasons, and many aspects surrounding the decision and process relocating your business are surprisingly shared with share the decision process of buying or selling a business.  I have said in the past that there are many reasons one may want to sell their business or exit their business, but all those reasons can get reduce to 2 overall reasons. (reasons that your chose, or reasons that “choose you”)  You may choose to sell your business or circumstances make that choice for you (health, death, divorce, bankruptcy etc).  When you look to relocate yourself or your business, it may be a personal choice or situations around you may force/require such a move.

And like buying or selling a business you have a significant effect on your personal life, when you are relocating your business, your business activities, or your job, you are also relocating your life. A decision to move or relocate usually involves family, friends, significant others involvement. A decision to buy a business, sell a business, start a business directly affect your significant others.  You are not just relocating your business activities you are relocating the life that you are experiencing and significantly affecting the lives of those closest to you.

Relocating Your Business

Photo (c) multicube.com

I have always felt the decision to buy or sell a business can be a harder part than the actual implementation.  “Measure twice, cut once”.    In my previous business that I had owned we made several acquisitions.  I had spent many hours evaluating the accreted cash flow of an acquisition, how to afford the capital outlay, what assets we would keep or dispose of, what involvement if any we would have with the seller of the business after the sale, how we would integrate our billing, servicing, and support of the additional customer base that would come along with the acquisition.  

At some point the decision is made and now it becomes a matter of implementing the mechanics of integrating the acquisition. I believe the implementation was the easier part of the process.    If the decision to acquire was thought out the integration should be a fairly known process. Ten years ago when we made a decision to move our family 1500 away from our business and running it remotely, a tremendous amount of  thought and time  went into the decision, and the move worked out well for the business and my family.

About 2 years ago we contemplated moving due to a combination of personal reasons, and my business activities also entered into the decision.  The decision was more based on personal preference and family goals (my daughters education and school)  than business.   Approximately 1 1/2 year ago we made the decision to move 300 miles away to Northern Florida, from the Southwest barrier island we currently live on.  Subsequently, we have sold our home, found a new home, and the movers are loading up our life belongings in 3 weeks. 1 1/2 years ago I started preparing for the move as it relates to my  business activities.  Here  are some of the highlights and:

6 Measures to Take When Relocating Your Business

1. Planning – yes the process of an effective move or relocation does share similarities with the process of effectively buying or selling a business.  Planning is so important in both matters.  When buying or selling a business I have always felt that if you are looking to buy a business or sell  a business or start a business in a year you should start planning yesterday.  Like Selling or buying a business, moving or relocating has so many moving parts and is a very involved process.  Dont really know how you can do too much planning for either.

2. Have that very important discussion and or  discussion regarding the pending move with your significant other early on.  Sort thru the personal, emotional, and logistics up front.  If it is a “voluntary” move make sure you both are on the same page.  If it is a move that is being brought upon you, make sure that is known to your significant other, as you should share a common goal to make the best of it.

3. Try to pre-emptively build develop or expand a client base prior to your move.  To me this was one of the more important steps I made in preparing.   Over a year ago I would travel about every other month to prospect, network and begin developing a presence in the new area.  As I developed clients I started travelling to the new area monthly and currently I go there every 2-3 weeks. I chose this route over moving to a new area and starting at square one to build a client base.  I now am moving into a new area  working with business owners looking to sell their Florida  businesses in this new location.  It is a smaller but developing existing client base.

4.  Make sure your email can follow you–  Back in the old day (and yeah my teenage kids eyes gloss over when I begin a statement in this way), but back in the old day, when you move you go to the Post office to have your mail forwarded or notify them of a change of address.  While that is still one of the items on the moving to do list, moving your digital address for your business can be  so much more important.  I have several emails, and one of my main emails is tied to the local cable provider in the area.  Make sure your email is portable, if not get a portable email address and start using it prior to the move.

5. Update Modify your website.  Does your website reflect your new contact information, your new business locations, your new geographic area of focus, if that has changed.

6. Out with the old and in with the new.  When relocating this is a good time to review old records to see what can be securely disposed of.  Why move all these records only to throw them out at the new location.  Storage and space is a valuable commodity no  matter where one is located.  Using the space around your efficiently is enhanced when unnded paperwork files are gotten rid of.  And it makes organizing at the new location that much easier.

Along with all the above business matters, we had to sell a house (in Florida, not so easy now adays), find a new house, find new location to operate business from, register for school for daughter, hire professional movers, help pack, etc. When you are relocating your business or your business profession you are also relocating your life. When buying or selling a business so many people think about the finanical and business side of the process.  But Buying or selling a business, like moving, has as much to do about the personal, family matters and lifestyle as it has to do about the business itself. Again, if you are thinking about buying or selling a business, or relocating your business next year, start planning yesterday.

You Want to Sell Your Business Someday How to Prepare Today

By | | , , , , , , , ,
1 Comment

Every Business Needs an Exit Strategy.  Do you want to Run Your Business Forever?  Do you Want to Sell your business?  Do you want to leave your business to your children?  Do you want to sell your business to Your Employees?  Do you Just want to close your doors and Move on?  How do you want to exit your business ?- And when?

Recently a good friend of mine that is a successful business owner contacted me about the prospect of selling his business in a few years. He asked me to contact him regarding what he may want to be doing now to prepare his business for sale.  He has a successful growing business, he has grown his number of employees from 10 to 75 over the last 18 months.  He is effective at gaining new contracts and growing revenue, but like so many  businessmen, he has never attempted to sell his business.

Devising An Exit Strategy For Selling Your Business

Normally during the startup of a new business the thought of an exit strategy is not even a consideration.  Then small business owners get so involved with the day-today operation of their businesses that again an exit strategy is either not even thought of or possibly just put on the back burner.  Taking some time to put some thought into your exit strategy can go a long way to increasing your odds of exiting your business the way you desire to.

Planning, gaining knowledge, and preparing  may be the 3 most important measures you can take when considering an effective exit strategy.

If your exit strategy involves an interest in trying to successfully sell your business in several years, what sort of measures or actions should a business owner take to make this successful:

  1. Make sure your financials are in order. Clean understandable Income Statements and Balance  Sheets will add value to your business.
  2. Systematize and document your operations and procedures.  Well documented policies, procedures and practices are a sign of a well run company and  probably would help your company run better, and add value. If you got hit by a truck tomorrow could someone use your documented practices to help continue run your business?
  3. Move your business towards a business that does not rely on you.  Do your customers do business with your company or do customers do business with you.  When you go to sell your business are you selling a business that is dependent on you the owner or a self-sustaining business based on a solid philosophy, solid customer service and reliable employees and practices. Or when you go away, does your business go away?
  4. Speak to your trusted advisers- let them know your intentions see if  they have any input suggestions that could help move you towards this goal.  Trusted advisers may include your attorney, CPA, financial advisor, business brokers.
  5. Learn by speaking to your trusted advisers what are the most important aspects that affect your business value.  How does one value your business? What is most important to business buyers?-  Your Assets, your cash flow, your sales, your number of customers, your patents, trademarks, your competitive advantage.  Learn what the real driving factors are behind raising the value of your business and work on them. Understand that not all businesses that attempt to sell actually do find a business buyer and sell.
  6. Running your business and concurrently, preparing your business for sale is a viable  approach towards business transition. It is not a” one or the other approach”.  Preparing your business for sale does not need to get in the way of running your business, and most measures improve your business. If you make needed improvements to your business and or operations and decide not to sell your business or exit your business, you still most likely will have a better business on your hands.
exit strategy

 

 

 

For planning purposes try to learn what the potential value of your business may be. Also educate yourself on the business buying or selling marketplace.  It is not always the same.  Selling a business during the 90’s was different than selling a business in 2006, and is significantly different than selling a business in 2010… and different than 2015 or 2020.

If you think you want to sell your business in 5 years for $1M, attempt to understand what realistically your approximate value may be today.  If your business may realistically only be worth $250,000- change your expectations, change your time frame, or maybe more importantly get to work on making necessary changes to your business.

7 Ways to Improve Your Business that Cost No Money

By | | , , , , , , ,
Leave a comment

It is the norm for Small businesses, startup, new ventures to struggle due to limited financial resources.  There are so many efforts that can improve your business and produce results that are little or no cost.  We all want results, but at what cost ?  Did that $1000 investment or expense produce $10 results?

Part of my profession as a business broker involves consulting with both buyers and seller of business.  I also provide consulting services to businesses outside my role as a business broker in Florida.  Rarely do I experience a discussion based upon “I have too much cash flow to deal with”.  Small business owner  and entrepreneurs are constantly seeking ways to improve thier businesses with limited resources.  Below are a list of several tactics and efforts a small business owner may take that cost little or no money and therefore the Return on Investment ( ROI)  is extremely high.  There are many other practices and efforts that can be utilized outside of the below short list, hopefully this list can change the line of thinking of a business owner from “I wish I could do something but I don’t have the money” to:

What Can I Do To Improve My Business With Limited Or No Money

1.Look at your company from the perspective of a customer.   Can you do that?, can you pretend you are a customer trying to do business with your company.  You send an inquiry via email, you place a call into your company- what happens?.  We all have dealt with companies that customer service seems more like “How to effectively get a customer off the phone”  instead of ” I wont let you hang up the phone until I know I have completely helped you to fulfillment”  IS it a pleasant experience to do business with your business?

2. Attempt to surround yourself with more beneficial  synergistic strategic partners-

As a business broker I have various strategic partners that allow me to best assist my clients.  These professionals include, Attorneys, Accountants, bankers and Financial people.  Not so long ago I relocated to a city 5 hours away.  Among other things, I needed to develop a new “team” that I could rely on that help me help my clients.  I researched banks that do a lot of SBA loans to small business, migrated thru the company website, found a point of contact that I had an interest in meeting with, sent an email, and got an email back saying “going on vacation back in 2 weeks, call me then”.  I proceeded to pursue a relationship with someone that would call me back., passed over this prospective strategic partner and found someone that I feel may develop into a mutually beneficial business relationship. My clients will benefit from my valued strategic partners.

3. Use the Internet more

Improve Your Business

Photo (c) highachievingwomen.biz

  • post a blog- how much does that cost?
  • post a tweet about  a sale, a special or event- We’ve all heard/read that this can be a good idea- just do it.
  • check out a site such as Fiverr.com and see if someone can do something for you for $5.  Are there other sites that facilitate low cost solutions? Can you afford to make a $5 error?
  • Try something you haven’t tried- a video, guest blogging, join more related forums or user groups, start a group.

4. Educate yourself– take some time out of your day to read other related blogs info on your industry or specific area of focus. Commit yourself to learn your own financials better than you presently do.  Again the ROI on your time invested in this can be quite high.

5. Go to a network meeting– there are several available in most communities that are either free or cost a couple bucks.  How much could you benefit from making that “right contact”.

6. Consider a Freelancer–  Are there some functions/task that you currently are having performed that may be done more cost effectively thru an outside source such as a free lancer.  Open your mind to it.

7. Treat all customers, prospects, employees, vendors with respect and integrity– The ROI on this no cost effort is immense

Dont ever stop trying something different.  I have utilized the above items in my various business ventures throughout the years and still utilize them on a regular basis.  If you are running a business, buying a business, or growing a business these low and no cost business practices will result in very good return on investment and usually all it takes to get these returns is to consider them and just do them.

Most Important Step to Starting,Running, Buying, or Selling a Business

By | | , , , , , , ,
1 Comment

You are looking to Start a Business.  You are Running a Business.  You are Buying a Business.  You are Selling a Business.  What is the most important step in any one of these ventures, And no the answer is not having unlimited deep pockets. To start, run, sell,or buy a business you need to understand that business.  You need to understand not only the operational side of your business, you need to understand the financial side of your business.

I am a business broker in Florida and I help people buy and sell businesses. (and current and former business owner)   This last week I completed a very busy week of helping an out of town business buyer visit several different businesses.  Our intent of visiting these multiple businesses was an effort to understand the businesses. To buy a business you have to understand the business.  A small business owner truly needs to understand the financial health of their business.

Running Your Business Successfully

Many, Many Many small business owners DO NOT understand the financial side of their business.  Do you feel as an entrepreneur you need to understand the difference between a debit and credit or if you buy something if it should be a capital purchase or an operating expense.  So many small business owners and entrepreneurs run their business using their gut as their guide, they can feel if their business is going good or bad.

Other small business owners look at their checkbook- if there is money in that things are ok. On the other side you may have a very successful business, you buy several new truck and new equipment with cash every year, you have very little money in the checkbook and “feel” you have an unsuccessful business. You could be very wrong.   And yes it is also very easy to hire a CPA and or accountant and send all the monthly records to them, count on them to sort thru them and have them generate a report for you to maybe glance at and file away.

Hire An Accountant

Photo (c) freelancefolder.com

Your CPA or accountant is a great place to start the learning process. The more you know, the more effective they can be to you.   Your  Balance sheet and your Income statement tell your companies story.  You may feel your company is healthy, or improving, or getting better, or getting worse- your balances sheet or Income statement (Profit/Loss Statement) will tell you in a factual manner.

You need money for your business- you go to a banker or financial institution to get money, do you think they will listen to you tell them about your business and loan you money based on that.  they will use your company financials to make that business decision.  A few years ago banks I had worked with strongly considered your balances sheet to make loan decision.  Now-a- days both Balance Sheets and income Statement both are a strong part of that evaluation.  Why is that?.  Understanding the “whys” about your business is important to your business.

In the preceding scenario a business may have a strong balance sheet due to significant assets like real estate owned or equipment owned by the company.  But in current economic conditions the companies Income statement show  that the business sales are down 25% and and shows losses for the last year- lending may not occur.  The banks may not be all that excited about the fact that you own real estate thru your company.

The business buyer I was working with flew in town for 3 days for him and I to visit businesses.  Most of the small business owners we visited had good businesses.  Without divulging any confidential information, they all showed cash flow in excess of $200,000 per year.  They (the respective business owners)  all said they didn’t really understand the financial side of the business, but “here our our records for your review”. (after confidentiality agreements were signed) They could speak for hours about their customers, employees, procedures and ideas.  Questions regarding financial information were usually answered with  1 or 2  brief sentences.

Buying A Business – The Right Way

The buyer I was working with was a very educated buyer, a President of a publicly held $40 Million company , and 30+ years of experience.  He had looked thru maybe 30 businesses to narrow down visits to less than a handful.  He and I both knew that to buy a business, he had to understand the business. We spent hours discussing the financials of the businesses.  

You as an entrepreneur that is starting a business or running a business may someday want to sell your business.  Understanding the true financial condition of your business is the 1st step to improving the financial condition of your business.

Buying a business is a very effective way to expand your customer base and Revenues. knowing how to read and understand the financial statements of others could be the difference of a business acquisition that is a success or a failure.

And when an educated buyer approaches you about buying your business, you provide the business buyer your Balance Sheet, your Income Statement, and your explanation and understanding of the true financial condition of your business may be the difference in someone buying your business at a good price or passing your business over to pursue other businesses to buy.

Running Your Business when Disaster Strikes

By | | , , , ,
Leave a comment

Running a small business is full of daily challenges.  The problems small business incur are both large and small.  Businesses are not run within a vacuum.  Sometime as business owner we create our own problems.  Other times problems immerse themselves upon the business at no apparent doing of the business.

Dealing With Problems

A business owner needs to be able to deal with problem no matter the source of these problems if they wish to sustain. Disasters such as Hurricanes, Tornadoes, Cyclones, Tsunami. Mudslides, Monsoons, Terrorism, Floods, Fires occur.  They always seem to affect someone else.  “I really dont need to plan for a disaster because it always happens to someone else”.

I was that small business owner that was that someone else.

My business was struck by an arsonist…twice …  that caused almost $1,000,000 in damages… while I was bedside in the emergency room of my 10 year old son that was injured in a bike accident… while my wife was 7 months pregnant.

There are percentages and statistics available that speak to how many businesses never survive a major fire and those numbers go from 50%-80%.   We had 2 major fires withing 3 months of each other. I have not seen any numbers on those that survive 2 major fires.

I, with the help of so many managed the company thru those difficult times, ran the company for another 10 years, sold the business, the business continues to operate and I further my profession as a Business Broker.

The Impact Of A Disaster To Your Business

I would like to point out a few of my observations as I went thru this very difficult time that ultimately ended with the trial and conviction of a repeat arsonist… that ended up being a key employee.

1. You do not work thru a major disaster by yourself.  I was assisted by my wife, my family, my employees, my friends, my community, my competitors.  (One competitor allowed us to operate out of their facility during the middle of the night when their plant was normally un-occupied).- Others want to help, let them help.

2.  You think you currently multi-task as a business owner, and then you find out what you are really capable of.  Normally you are dealing with your customers, employees, vendors, facility, agencies, financial all at the same time.  Now add in restoration contractors, Media, insurance agencies, fire Marshall’s, investigators,lawyers,police chief.  Everything very fast,gets very busy, and you thought you had been busy before.  Somehow our situation became a rather big story in the media.  While dealing with the immediacy of the fire, calls were coming in from local TV, radio, Associated Press and Newspapers, and to find  5 minutes to speak with them became impossible.

I originally considered the media request s very low priority, but after getting home that nite at 10pm I had about 50 messages on my home phone of friends/acquaintances that had seen the fire on TV.  These people were part of our customer base, and had me worried that our customers assumed we were out of business. I felt it was important to get the word out that the company is not done.

Business Media Coverage

I got on the phone and did a couple phone interviews with Associated Press, and scheduled time for the local TV crews to come out with cameras and interview.  The focus of the TV news piece was on our intent to continue our business and continue serving our customers. After watching that report on the 6pm news, I think that report was instrumental in allowing our customers to see our intentions. I think its normal to seem overwhelming.

3. Look pass the disaster. Visualize your business not as it is during the disaster, but where it will be in one year.  This can be easier said than done.  may well wishers would tell me things like “that that doesn’t kill you will make you stronger”  at the moment of hearing that, during a crisis, sounds somewhat hollow, but years removed from the crisis you can see some merit.

4.  When you have a business and a disaster strikes, the line between business and personal becomes very blurred.  We are all people first and businessmen second.  Families are affected by disasters, people are affected by disasters, lives are affected by disasters- businesses get caught in the fallout of a disaster, but the importance of the business in a disaster is really a very distant second.

I am a Business Broker in Florida USA.  My 8 year old son (then) is now in college, and while he once layed in the hospital for 8 weeks with tubes, and needles stuck throughout his body , he now is bigger, faster, stronger than I (andbeing a teenager, I know he will never read some of Dads boring blog stating such), My daughter that was born 2 weeks after the 2nd major fire is  a healthy beautiful teenager.

I help people buy and sell businesses.  Buying and selling a business is SO much more than financials and industries.  It can be a life changing event.  The emotional and the personal side of buying a business is very very real.  I enjoy the financial analysis side of a business acquisition,  but I know, I really know its the other stuff that is so much more important.  I feel I understand the mechanics to a life changing event.