How to set up a business|for busness people
Casey Gollan asked:
As a business coach I often observe that the challenge with growing a business for most business owners is that they can be scared of ‘letting go’.
You see, most business owners start off in their business doing everything… and as the business grows they try and take on more and more to keep ‘in control’.
Yet the time comes in the growth of the business where they HAVE to let go…
They can’t physically keep up!
Sometimes the business owner does their best to keep up. They work more, longer and harder but despite all of their efforts the business starts to ’stagnate’.
And the owner becomes tired.
There are no more hours in the day.
They begin to realize that they can’t possibly keep their fingers in ‘all the pies’.
They have to let go.
Now most business owners are proud of the fact that they ‘know what’s going on’ in every area of their business…
And some dread losing this ‘contact’ or ‘control’
You see by being ‘in’ the business the business owner gets a feel for how the business is traveling.
If they keep on the ‘floor’ they can see customers coming in, what stock is selling, what stock is being delivered.
Now the big step (for them) is moving away from being involved to overseeing. Because they are scared that they’ll lose the ‘feel’ of the business.
And it’s at this point that some business owners panic.
What’s the answer?
The best business owners learn how to keep a ‘feel’ of their business without having to be there.
How can they do that, you may ask, if they’re not involved every day?
How can the best business owners know if it’s busy?
How can they know what stock is needed?
How can they know if customers aren’t happy?
How can they know which staff are being productive and which ones aren’t?
How can they keep their eye on the registers and the petty cash?
How can they do all this?
They can do it by setting up and monitoring their measuring and reporting systems.
I call them ‘dashboards’ or ’scoreboards’.
You see the best business owners set up ‘dashboards’ so that they can ’see’ how their business is going.
It’s like a dashboard in a car, or a cockpit of an airplane.
When you’re driving you don’t need to put your head out the window to ‘feel’ how fast you’re traveling. You just look at your speedo.
And you don’t need to look in your petrol tank to see how much petrol you have used. You just look at your fuel indicator on your dashboard.
If you set up Key Performance indicators in your business you can see how different areas of your business are performing.
All the best businesses do it. And you should too.
And you should start now… before you put on more people…
I get all my clients to start measuring critical areas of their business. And there’s a certain process to do it, and a certain way to measure it so that it works.
And when you get it working it can help liberate you from your business.
When you have your own ‘dashboard’ or ’scoreboard’ you will need to look at some key things daily, whilst others are better to look at weekly, monthly and even quarterly…
And when you have them you can step out of your business. Because the ‘dashboard’ will tell you what’s going on when you’re not there.
It’s magic.
Even if you’re not in the business you’ll be able to gauge how things are going and how your people are going. Who’s doing things and who’s not… so you can step in and take action to improve the situation immediately.
With the right systems, people and training like I have outlined, works like a charm and it’s one of the most powerful things that you can do to take your business into the multi-millions of turnover.
I use these with my clients with extraordinary success.
We look at them every week to assess how the business, and how the team in the business are performing and based on the accurate and timely information take action to correct anything that ‘off-track’ and caress anything that is on track.
For example.
One of my client’s critical areas dropped from 37% to 22% then 21%. Now to you that may just be a percentage figure but to the business owner and I it meant we were losing $2,000 profit per week every week that it stayed at the new lower level. That’s $100,000 profit in a year.
So we jumped into action. After a certain process that I stepped him through we drove it back up to 44% and kept it there. That one thing alone made him tens of thousands of dollars in just a matter of weeks let alone what it made him over a year.
Another step that I take my clients through is setting up their ‘dashboard’ whilst they are still ‘involved’ in the business then the next step is to send the ‘dashboard’ to their home for them to look at in their own time
This steps them from having a ‘feel’ of the business to looking at the ‘dashboard’ so that they can transfer their ‘feel’ of the business into assessing the numbers that are on their ‘dashboard’.
As we step through that we determine ’standards’ that each of the critical areas should be reaching each day, week, month for the business to be dong ‘nicely’.
Then armed with the standards and the dashboard the business owner can comfortably step out knowing what the dashboard has to show for him/her to stay in control of the business.
We then work on getting the business owner out of the day to day running of the business. For example if the owner is working 5 days in the business… the first step is to move him to 4 days in, and one day out. Then 3 days in, 2 days out… then 2 days in 3 days out and so it goes until the owner is able to choose their work hours because the business runs without them having to be there.
Then when you choose to come into the business you can do the work you want to do, and focus on the building your team to run your business for you.
Remember when your business is working it means that you don’t have to.
Your life may never be the same.
Join me when the timing is right for you and together we can grow your business and help you ‘let go’ of your business and stay in control.
Set up your business so you can let go and stay in control.
Copyright © 2006 by Casey Gollan. All Rights Reserved
Business Coach, Mentor And Growth Specialist
Casey Gollan, Business Coach, Mentor And Growth Specialist. Grows $1 Million p.a. Small Businesses Into $2 to $5 Million p.a. Businesses Over a 2 to 3 Year Period.
Virginie
As a business coach I often observe that the challenge with growing a business for most business owners is that they can be scared of ‘letting go’.
You see, most business owners start off in their business doing everything… and as the business grows they try and take on more and more to keep ‘in control’.
Yet the time comes in the growth of the business where they HAVE to let go…
They can’t physically keep up!
Sometimes the business owner does their best to keep up. They work more, longer and harder but despite all of their efforts the business starts to ’stagnate’.
And the owner becomes tired.
There are no more hours in the day.
They begin to realize that they can’t possibly keep their fingers in ‘all the pies’.
They have to let go.
Now most business owners are proud of the fact that they ‘know what’s going on’ in every area of their business…
And some dread losing this ‘contact’ or ‘control’
You see by being ‘in’ the business the business owner gets a feel for how the business is traveling.
If they keep on the ‘floor’ they can see customers coming in, what stock is selling, what stock is being delivered.
Now the big step (for them) is moving away from being involved to overseeing. Because they are scared that they’ll lose the ‘feel’ of the business.
And it’s at this point that some business owners panic.
What’s the answer?
The best business owners learn how to keep a ‘feel’ of their business without having to be there.
How can they do that, you may ask, if they’re not involved every day?
How can the best business owners know if it’s busy?
How can they know what stock is needed?
How can they know if customers aren’t happy?
How can they know which staff are being productive and which ones aren’t?
How can they keep their eye on the registers and the petty cash?
How can they do all this?
They can do it by setting up and monitoring their measuring and reporting systems.
I call them ‘dashboards’ or ’scoreboards’.
You see the best business owners set up ‘dashboards’ so that they can ’see’ how their business is going.
It’s like a dashboard in a car, or a cockpit of an airplane.
When you’re driving you don’t need to put your head out the window to ‘feel’ how fast you’re traveling. You just look at your speedo.
And you don’t need to look in your petrol tank to see how much petrol you have used. You just look at your fuel indicator on your dashboard.
If you set up Key Performance indicators in your business you can see how different areas of your business are performing.
All the best businesses do it. And you should too.
And you should start now… before you put on more people…
I get all my clients to start measuring critical areas of their business. And there’s a certain process to do it, and a certain way to measure it so that it works.
And when you get it working it can help liberate you from your business.
When you have your own ‘dashboard’ or ’scoreboard’ you will need to look at some key things daily, whilst others are better to look at weekly, monthly and even quarterly…
And when you have them you can step out of your business. Because the ‘dashboard’ will tell you what’s going on when you’re not there.
It’s magic.
Even if you’re not in the business you’ll be able to gauge how things are going and how your people are going. Who’s doing things and who’s not… so you can step in and take action to improve the situation immediately.
With the right systems, people and training like I have outlined, works like a charm and it’s one of the most powerful things that you can do to take your business into the multi-millions of turnover.
I use these with my clients with extraordinary success.
We look at them every week to assess how the business, and how the team in the business are performing and based on the accurate and timely information take action to correct anything that ‘off-track’ and caress anything that is on track.
For example.
One of my client’s critical areas dropped from 37% to 22% then 21%. Now to you that may just be a percentage figure but to the business owner and I it meant we were losing $2,000 profit per week every week that it stayed at the new lower level. That’s $100,000 profit in a year.
So we jumped into action. After a certain process that I stepped him through we drove it back up to 44% and kept it there. That one thing alone made him tens of thousands of dollars in just a matter of weeks let alone what it made him over a year.
Another step that I take my clients through is setting up their ‘dashboard’ whilst they are still ‘involved’ in the business then the next step is to send the ‘dashboard’ to their home for them to look at in their own time
This steps them from having a ‘feel’ of the business to looking at the ‘dashboard’ so that they can transfer their ‘feel’ of the business into assessing the numbers that are on their ‘dashboard’.
As we step through that we determine ’standards’ that each of the critical areas should be reaching each day, week, month for the business to be dong ‘nicely’.
Then armed with the standards and the dashboard the business owner can comfortably step out knowing what the dashboard has to show for him/her to stay in control of the business.
We then work on getting the business owner out of the day to day running of the business. For example if the owner is working 5 days in the business… the first step is to move him to 4 days in, and one day out. Then 3 days in, 2 days out… then 2 days in 3 days out and so it goes until the owner is able to choose their work hours because the business runs without them having to be there.
Then when you choose to come into the business you can do the work you want to do, and focus on the building your team to run your business for you.
Remember when your business is working it means that you don’t have to.
Your life may never be the same.
Join me when the timing is right for you and together we can grow your business and help you ‘let go’ of your business and stay in control.
Set up your business so you can let go and stay in control.
Copyright © 2006 by Casey Gollan. All Rights Reserved
Business Coach, Mentor And Growth Specialist
Casey Gollan, Business Coach, Mentor And Growth Specialist. Grows $1 Million p.a. Small Businesses Into $2 to $5 Million p.a. Businesses Over a 2 to 3 Year Period.
Virginie
Comments Off
Nov
13
Filed Under (Make Money) by
Casey Gollan asked:
Let me ask you this… What makes a successful business owner?
Well for me, a successful business owner is someone that earns well into six figures or more each year from their business, working around 3 to 4 days (or less) per week.
I call this ’successful’ because if they can make a few hundred thousand a year from their business, and only work a few days per week they have to have a lot of great things in place…
Not just in their business but in their personal life.
It tells me that in their business they have fabulous systems and staff members that are willing and able to work even when the owner isn’t there.
And the business would have great information systems so that the business owner would know everything that’s going on (even though they’re not there) so they can still ‘control’ the business.
They’d have excellent marketing and sales systems that day in day out draw in ‘ideal’ customers that willingly buy from the business, at full price.
Plus because of the level of service and quality in the business the customers are loyal and enthusiastically refer other people to the business.
The business owner would also have a high level of trust in their staff to run the business which shows me a couple of things.
Number 1, they’d have excellent staff recruitment and training programs to build their staff into competent team members.
And Number 2 They’d have a high level emotional maturity to allow this to happen.
In their personal life, I’d consider these business owners successful because they would have enough free time during the week to spend on their own doing exercise or their favourite hobbies.
This recharges their ‘batteries’ and keeps them fresh. Thus they always seem to be ‘on-the-ball’.
Plus, they spend good quality time with their partner at home and their family.
And that’s crucial.
Just ask anyone whose business has caused a marriage break up, and/or illness through stress.
You see, growing a business that overtakes your life is very, very easy. Most business owners achieve this within the first couple of weeks of starting!
Growing a business that also enhances your lifestyle is a lot more difficult.
But it is possible.
And that’s what I do with the business owners I work with.
We create profitable business growth that enhance their lifestyles
For me it’s about Business and Life Harmony.
So what’s the underlying secret to achieving it?
Commit to becoming a better business person.
Every successful business owner will tell you this…
It’s not one single thing that will make the difference to your business growth.
It’s a lot of things.
You see most business owners are waiting for the ‘one big’ order or the ‘one great year’ or the ‘one great staff member’ that will make all the difference.
The successful business owners know differently.
The successful business owners know that to have an extraordinary business they must be an extraordinary business person.
They know that if they want to grow to $2 Million… they have to learn how to become a $2 Million business owner. And this requires improving their business skills.
There are many skills to learn.
You’ve got to know how to make the product or deliver the service.
You’ve got to know how to market your business
How to sell, how to find suppliers, how to negotiate, how to hire people, how to train people, how to read and understand financial statements the list goes on and on.
Yet it can be, and is simple… when you learn how to do it simply.
And that’s my role with you.
You see as a business coach my skill is making your business growth predictable, controllable and a hell of a lot easier.
All of my clients will tell you that.
So back to you.
If you want to grow your business you may realize that you need to learn some new information and skills.
And that’s what Super successful business owners have done before you.
They realize that to really grow their business they MUST become a better business person.
Most ‘unsuccessful’ business owners believe that the way to grow their business is by making a better product, or providing a better service.
They feel that if they have the ‘best’ product the market will come to them.
Well the product or service is only one part of your business. It’s not enough.
Super successful business owners initially build their business on a good product or service. Then when it comes time to grow… they focus on areas that will grow their business.
Super successful business owners focus on areas that most unsuccessful business owner’s neglect or are too busy to focus on.
Areas like…
- Creating Vision, Mission and Values Statements
- Marketing
- Sales
- Customer Care
- Operations
- People
- Team building
- Financial statement
- Financial analysis
- Taxation
- Law
- Technology
- Key Performance Indicators
- Business/life balance
-And building their wealth through
All of these areas sound separate yet they are extremely interconnected and dependant on each other. And as we travel through each session you’ll hear how each topic is linked to, and how much each topic relies on the other topics for its success.
That’s what makes a great business person using all the areas.
It may seem like a long list. If it does or doesn’t don’t worry. It’s a list that I’m absolutely passionate about helping you with.
Because that’s the first step to growing your business.
Become a better business person by working on your business, rather than just working in it.
It’s what I do with clients that I work with one-on-one over a couple of years in my Business Coaching Program.
Copyright © 2006 by Casey Gollan. All Rights Reserved
Danielle
Let me ask you this… What makes a successful business owner?
Well for me, a successful business owner is someone that earns well into six figures or more each year from their business, working around 3 to 4 days (or less) per week.
I call this ’successful’ because if they can make a few hundred thousand a year from their business, and only work a few days per week they have to have a lot of great things in place…
Not just in their business but in their personal life.
It tells me that in their business they have fabulous systems and staff members that are willing and able to work even when the owner isn’t there.
And the business would have great information systems so that the business owner would know everything that’s going on (even though they’re not there) so they can still ‘control’ the business.
They’d have excellent marketing and sales systems that day in day out draw in ‘ideal’ customers that willingly buy from the business, at full price.
Plus because of the level of service and quality in the business the customers are loyal and enthusiastically refer other people to the business.
The business owner would also have a high level of trust in their staff to run the business which shows me a couple of things.
Number 1, they’d have excellent staff recruitment and training programs to build their staff into competent team members.
And Number 2 They’d have a high level emotional maturity to allow this to happen.
In their personal life, I’d consider these business owners successful because they would have enough free time during the week to spend on their own doing exercise or their favourite hobbies.
This recharges their ‘batteries’ and keeps them fresh. Thus they always seem to be ‘on-the-ball’.
Plus, they spend good quality time with their partner at home and their family.
And that’s crucial.
Just ask anyone whose business has caused a marriage break up, and/or illness through stress.
You see, growing a business that overtakes your life is very, very easy. Most business owners achieve this within the first couple of weeks of starting!
Growing a business that also enhances your lifestyle is a lot more difficult.
But it is possible.
And that’s what I do with the business owners I work with.
We create profitable business growth that enhance their lifestyles
For me it’s about Business and Life Harmony.
So what’s the underlying secret to achieving it?
Commit to becoming a better business person.
Every successful business owner will tell you this…
It’s not one single thing that will make the difference to your business growth.
It’s a lot of things.
You see most business owners are waiting for the ‘one big’ order or the ‘one great year’ or the ‘one great staff member’ that will make all the difference.
The successful business owners know differently.
The successful business owners know that to have an extraordinary business they must be an extraordinary business person.
They know that if they want to grow to $2 Million… they have to learn how to become a $2 Million business owner. And this requires improving their business skills.
There are many skills to learn.
You’ve got to know how to make the product or deliver the service.
You’ve got to know how to market your business
How to sell, how to find suppliers, how to negotiate, how to hire people, how to train people, how to read and understand financial statements the list goes on and on.
Yet it can be, and is simple… when you learn how to do it simply.
And that’s my role with you.
You see as a business coach my skill is making your business growth predictable, controllable and a hell of a lot easier.
All of my clients will tell you that.
So back to you.
If you want to grow your business you may realize that you need to learn some new information and skills.
And that’s what Super successful business owners have done before you.
They realize that to really grow their business they MUST become a better business person.
Most ‘unsuccessful’ business owners believe that the way to grow their business is by making a better product, or providing a better service.
They feel that if they have the ‘best’ product the market will come to them.
Well the product or service is only one part of your business. It’s not enough.
Super successful business owners initially build their business on a good product or service. Then when it comes time to grow… they focus on areas that will grow their business.
Super successful business owners focus on areas that most unsuccessful business owner’s neglect or are too busy to focus on.
Areas like…
- Creating Vision, Mission and Values Statements
- Marketing
- Sales
- Customer Care
- Operations
- People
- Team building
- Financial statement
- Financial analysis
- Taxation
- Law
- Technology
- Key Performance Indicators
- Business/life balance
-And building their wealth through
All of these areas sound separate yet they are extremely interconnected and dependant on each other. And as we travel through each session you’ll hear how each topic is linked to, and how much each topic relies on the other topics for its success.
That’s what makes a great business person using all the areas.
It may seem like a long list. If it does or doesn’t don’t worry. It’s a list that I’m absolutely passionate about helping you with.
Because that’s the first step to growing your business.
Become a better business person by working on your business, rather than just working in it.
It’s what I do with clients that I work with one-on-one over a couple of years in my Business Coaching Program.
Copyright © 2006 by Casey Gollan. All Rights Reserved
Danielle
Comments Off
Aug
24
Filed Under (Make Money) by
Grover Rutter asked:
Sooner or later you are going to exit your business. The question isn’t whether or not you will be ready. The sixty four thousand dollar question is whether or not your business will be ready. It is estimated that seven out of ten privately held businesses have no succession plan to transfer the business to the next generation of owners. What does that mean to you? It means that if you do not currently have a plan in place to transfer your business to family members, existing partners, management or employees, someday you will think about selling your business.
That day might come sooner than you anticipate. Don’t make the mistake of thinking that just because you are not currently ready to retire that you have plenty of time to prepare your business for sale.
As a business broker, I have been involved in a number of transactions (and potential transactions) where the business owner wanted to sell, or in some instances, was forced to exit the business earlier than expected. In fact, retirement is NOT the number one reason why businesses sell.
Here is a list of the most common reasons why owners sell (or otherwise discontinue) their businesses: Burn-out (the number one reason for selling) Health issues Personal diversification Retirement/semi-retirement Death Divorce/partner disputes Business growing too fast Second generation not up to the task Loss of market share
TAKE GOOD CARE The sad truth is that many business owners do not take good care of their most valuable asset: the business. They don’t groom someone to continue the business in their absence, and do not keep the business in salable shape during the time they operate the business.
Business owners tend to get too bogged down in the day to day business operations to worry about–or plan for an event that they perceive won’t occur until sometime in the distant future; selling the business.
Unfortunately, fate sometimes dictates circumstances beyond your control, and tough decisions must be made. If your business isn’t ready to sell when the time comes, what are your alternatives?
1. Liquidation of business assets—may be a solution, but one that usually returns very little money to the business owner. If the business had been an operating business, the underlying assets (except for real estate) may be outdated and of little use to anyone. At auction, the assets will bring only what the attending bidders are willing to pay. In some instances, underlying assets are sold to liquidators (or scrap) for only pennies on the dollar. Liquidation of a going business often occurs where the owners have become ill or disabled, or need to retire and have not planned adequately for their exit from the business. 2. Closing the business—is even less attractive than liquidation. That is because many who find themselves in this situation have a tendency to “put off” liquidating the underlying assets in hope that maybe someone will come along to buy this business. This almost never happens. BUILD WEALTH NOW BY PLANNING FOR THE SALE OF YOUR BUSINESS Okay, so you think you have enough to do without throwing more onto the pile. Am I right? That is why I have written this article for you. It provides a “down and dirty” overview of things that you ought to begin thinking about and planning for right now. Doing so will provide you with an additional safety net that will help safeguard your valuable business asset.
Here are just a few of the benefits of planning now: A planned sale allows for your goals and objectives on your timetable You may begin to identify potential buyers You may be able to create an attractive acquisition candidate You can begin to understand why a buyer may want to buy You might learn why buyers would not want to buy—and be able to fix the problems You may begin to realize the worth of your business now, and learn how to increase the value as part of your retirement planning
BUSINESS VALUE HOUSEKEEPING CHECKLIST
Record All Sales Business owners often invent remarkable ways to beat the tax collector. But the taxman can be a business owner’s best friend when it comes to selling one’s business. Income taxes are a great investment in the years immediately preceding an anticipated sale of the business.
Paying income tax proves to the buyer AND the banker that your business operations have been profitable. Nobody wants to pay more income tax. But consider this example: Ronald Bunk systematically underreported business income by an average of $20,000 per year. Assuming a combined tax rate of 40%, Mr. Bunk saved $8,000 in taxes per year. But, the underreported income also reduced the company’s earnings base by $20,000 per year. If, for example, the business could be sold for a multiple of 5x the company’s reported earning base—the company would sell for $100,000 less ($20,000 average earning base not reported times the price multiple of 5) than it is really worth!
Without considering the time value of money, it would take in excess of twelve years of (illegal) tax savings to make up for the loss of $100,000 in business value. The lesson: In trying to screw the government, business owners often find themselves on the short end of the stick; often in more ways than one.
Eliminate co-mingling of business and non business assets A common practice among closely held companies is to co-mingle non business assets and expenses with business assets and expenses. I have seen businesses owning motor coaches, boats and airplanes; all reported as business assets. The costs of maintaining and operating the assets were expensed as regular business operating expenses.
It is true that those businesses (not audited by the IRS) are saving a certain amount of income tax, and providing an extra “fringe” benefit for the owners of the company. Wise business owners should endeavor to separate non business assets from the business in the three to five years before a planned sale of the company. Doing so will make it much easier to accurately measure and reflect the true earning power of the business, as it will be unfettered by the capital investment in non business assets and the associated costs. Buyers of your business are generally purchasing future income and benefit streams that will be produced by your business. The leaner and more productive your business is—the more it is worth. It is never too early to begin segregating non business assets from your business, as it may take some planning and time. Do your own due diligence
Some executives of both public and private firms get a physical check-up once a year. Many of these same executives think nothing of having their personal investments reviewed at least once a year, if not more often. Yet, these same prudent executives never consider giving their company an annual physical, unless they are required to by company rules, regulations or some other necessary reason. Anyone interested in purchasing your business will perform “due diligence” procedures on your business before closing on the purchase. All too often, sellers are surprised at the skeletons purchasers can find in the closet. These skeletons can reduce the value of your company, and in some cases, kill any chance at closing a sale. What skeletons are your company’s closets?
Why not give your business a periodic physical? In essence, I am suggesting you would do well to treat your business as if someone else owned it—and you were the potential purchaser. What problems would you discover that could cause you and your advisors to reduce or withdraw your offer?
Spending the time and money to discover and fix your company’s problems now will pay huge dividends in the form of increased company value—which is exactly what you want when it’s time to sell.
Compliance with taxing and regulatory authorities Mountains of regulation often seem to impede a company’s growth and profitability. Some regulations might seem rather easy to “slight” or ignore.
Take for example one of my recent sellers who swore to me that the business had no regulatory violations of any type. I reminded the seller that anything “hidden in the closet” would most likely be discovered in a buyer’s due diligence (investigatory) process. “Nope—no problems of any kind” I was assured. Well, guess what the buyer’s due diligence turned up? Seems the seller had a couple of shipping/storage containers sitting behind the building—which the sellers KNEW were in violation of local zoning ordinances. How did they know? They had received four previous “reminders” from the trustees about the containers, and the need to remove them. “Why didn’t you mention that to me, or disclose that fact on your disclosure statement?” I asked. “Gee, nothing ever happened and the township never did anything—so we just figured it was no big deal.” Was the seller’s reasoning.
No big deal, except when the purchaser turned up the non compliance issue, it threw a few extra wrinkles into the mix. In that case, the issue was easily resolved (yet, much to the additional cost and chagrin of the sellers). But, sometimes known violations are not so easily remedied. In those instances, a seller runs the risk of blowing a good deal.
What’s the bottom line?
Clean up any tax, industry, OSHA, EPA or zoning issues with which your company does not comply.
Organize and keep records available. One never knows when opportunity might knock. If and when it does knock, will you be ready to strike while the iron is hot? How many times have you heard someone say something like, “I’d sell anything, including my business for the right price?”
Maybe you have even said it yourself. But would you know what paperwork and documents a serious buyer will immediately need in order to pursue the purchase? When a qualified buyer is ready to begin serious due diligence, they will need a variety of company documents.
Following is a partial list of things a buyer will ask for: • Three to five years income tax returns • Copies of one to three years quarterly payroll reports • Three to five years CPA prepared financial statements • Current year to date financial statements • Detailed depreciation schedules listing each fixed asset owned by your company • Corporate Minute Book with updated minutes • Recent aged accounts receivable trial balance • Recent aged accounts payable trial balance • Company organization chart • Copy of the Summary of Insurance Coverage (provided by your carrier) • Information about Employee Benefits provided by the company • Information about Employee Retirement Plans • Copies of labor contracts • Copies of other contracts to which the company is a party • Copies of licenses, registrations for patents, copyrights, trademarks, etc.
The foregoing list is an example of the types of records your company should have up to date and on hand at all times. These records are extremely important to speed the sales process along. Though this advice sounds basic, I often encounter companies whose records are not complete and up to date. This situation can dramatically affect a potential sale.
I suggest using a three ring binder to keep the basic updated records available at all times. This also makes other business needs for the documents much more manageable.
CONCLUSION
You can increase your wealth by knowing a few simple ground rules for successfully selling your business. Just like other owners of closely-held businesses, you know how to operate your business on a day to day, month to month and year to year basis. But your experience in running the business has not prepared you to know how to sell your business.
While the information I provided in this article is not all inclusive, it should help you get started in preparing your business for a successful sale—no mater when the business might be sold.
York
Sooner or later you are going to exit your business. The question isn’t whether or not you will be ready. The sixty four thousand dollar question is whether or not your business will be ready. It is estimated that seven out of ten privately held businesses have no succession plan to transfer the business to the next generation of owners. What does that mean to you? It means that if you do not currently have a plan in place to transfer your business to family members, existing partners, management or employees, someday you will think about selling your business.
That day might come sooner than you anticipate. Don’t make the mistake of thinking that just because you are not currently ready to retire that you have plenty of time to prepare your business for sale.
As a business broker, I have been involved in a number of transactions (and potential transactions) where the business owner wanted to sell, or in some instances, was forced to exit the business earlier than expected. In fact, retirement is NOT the number one reason why businesses sell.
Here is a list of the most common reasons why owners sell (or otherwise discontinue) their businesses: Burn-out (the number one reason for selling) Health issues Personal diversification Retirement/semi-retirement Death Divorce/partner disputes Business growing too fast Second generation not up to the task Loss of market share
TAKE GOOD CARE The sad truth is that many business owners do not take good care of their most valuable asset: the business. They don’t groom someone to continue the business in their absence, and do not keep the business in salable shape during the time they operate the business.
Business owners tend to get too bogged down in the day to day business operations to worry about–or plan for an event that they perceive won’t occur until sometime in the distant future; selling the business.
Unfortunately, fate sometimes dictates circumstances beyond your control, and tough decisions must be made. If your business isn’t ready to sell when the time comes, what are your alternatives?
1. Liquidation of business assets—may be a solution, but one that usually returns very little money to the business owner. If the business had been an operating business, the underlying assets (except for real estate) may be outdated and of little use to anyone. At auction, the assets will bring only what the attending bidders are willing to pay. In some instances, underlying assets are sold to liquidators (or scrap) for only pennies on the dollar. Liquidation of a going business often occurs where the owners have become ill or disabled, or need to retire and have not planned adequately for their exit from the business. 2. Closing the business—is even less attractive than liquidation. That is because many who find themselves in this situation have a tendency to “put off” liquidating the underlying assets in hope that maybe someone will come along to buy this business. This almost never happens. BUILD WEALTH NOW BY PLANNING FOR THE SALE OF YOUR BUSINESS Okay, so you think you have enough to do without throwing more onto the pile. Am I right? That is why I have written this article for you. It provides a “down and dirty” overview of things that you ought to begin thinking about and planning for right now. Doing so will provide you with an additional safety net that will help safeguard your valuable business asset.
Here are just a few of the benefits of planning now: A planned sale allows for your goals and objectives on your timetable You may begin to identify potential buyers You may be able to create an attractive acquisition candidate You can begin to understand why a buyer may want to buy You might learn why buyers would not want to buy—and be able to fix the problems You may begin to realize the worth of your business now, and learn how to increase the value as part of your retirement planning
BUSINESS VALUE HOUSEKEEPING CHECKLIST
Record All Sales Business owners often invent remarkable ways to beat the tax collector. But the taxman can be a business owner’s best friend when it comes to selling one’s business. Income taxes are a great investment in the years immediately preceding an anticipated sale of the business.
Paying income tax proves to the buyer AND the banker that your business operations have been profitable. Nobody wants to pay more income tax. But consider this example: Ronald Bunk systematically underreported business income by an average of $20,000 per year. Assuming a combined tax rate of 40%, Mr. Bunk saved $8,000 in taxes per year. But, the underreported income also reduced the company’s earnings base by $20,000 per year. If, for example, the business could be sold for a multiple of 5x the company’s reported earning base—the company would sell for $100,000 less ($20,000 average earning base not reported times the price multiple of 5) than it is really worth!
Without considering the time value of money, it would take in excess of twelve years of (illegal) tax savings to make up for the loss of $100,000 in business value. The lesson: In trying to screw the government, business owners often find themselves on the short end of the stick; often in more ways than one.
Eliminate co-mingling of business and non business assets A common practice among closely held companies is to co-mingle non business assets and expenses with business assets and expenses. I have seen businesses owning motor coaches, boats and airplanes; all reported as business assets. The costs of maintaining and operating the assets were expensed as regular business operating expenses.
It is true that those businesses (not audited by the IRS) are saving a certain amount of income tax, and providing an extra “fringe” benefit for the owners of the company. Wise business owners should endeavor to separate non business assets from the business in the three to five years before a planned sale of the company. Doing so will make it much easier to accurately measure and reflect the true earning power of the business, as it will be unfettered by the capital investment in non business assets and the associated costs. Buyers of your business are generally purchasing future income and benefit streams that will be produced by your business. The leaner and more productive your business is—the more it is worth. It is never too early to begin segregating non business assets from your business, as it may take some planning and time. Do your own due diligence
Some executives of both public and private firms get a physical check-up once a year. Many of these same executives think nothing of having their personal investments reviewed at least once a year, if not more often. Yet, these same prudent executives never consider giving their company an annual physical, unless they are required to by company rules, regulations or some other necessary reason. Anyone interested in purchasing your business will perform “due diligence” procedures on your business before closing on the purchase. All too often, sellers are surprised at the skeletons purchasers can find in the closet. These skeletons can reduce the value of your company, and in some cases, kill any chance at closing a sale. What skeletons are your company’s closets?
Why not give your business a periodic physical? In essence, I am suggesting you would do well to treat your business as if someone else owned it—and you were the potential purchaser. What problems would you discover that could cause you and your advisors to reduce or withdraw your offer?
Spending the time and money to discover and fix your company’s problems now will pay huge dividends in the form of increased company value—which is exactly what you want when it’s time to sell.
Compliance with taxing and regulatory authorities Mountains of regulation often seem to impede a company’s growth and profitability. Some regulations might seem rather easy to “slight” or ignore.
Take for example one of my recent sellers who swore to me that the business had no regulatory violations of any type. I reminded the seller that anything “hidden in the closet” would most likely be discovered in a buyer’s due diligence (investigatory) process. “Nope—no problems of any kind” I was assured. Well, guess what the buyer’s due diligence turned up? Seems the seller had a couple of shipping/storage containers sitting behind the building—which the sellers KNEW were in violation of local zoning ordinances. How did they know? They had received four previous “reminders” from the trustees about the containers, and the need to remove them. “Why didn’t you mention that to me, or disclose that fact on your disclosure statement?” I asked. “Gee, nothing ever happened and the township never did anything—so we just figured it was no big deal.” Was the seller’s reasoning.
No big deal, except when the purchaser turned up the non compliance issue, it threw a few extra wrinkles into the mix. In that case, the issue was easily resolved (yet, much to the additional cost and chagrin of the sellers). But, sometimes known violations are not so easily remedied. In those instances, a seller runs the risk of blowing a good deal.
What’s the bottom line?
Clean up any tax, industry, OSHA, EPA or zoning issues with which your company does not comply.
Organize and keep records available. One never knows when opportunity might knock. If and when it does knock, will you be ready to strike while the iron is hot? How many times have you heard someone say something like, “I’d sell anything, including my business for the right price?”
Maybe you have even said it yourself. But would you know what paperwork and documents a serious buyer will immediately need in order to pursue the purchase? When a qualified buyer is ready to begin serious due diligence, they will need a variety of company documents.
Following is a partial list of things a buyer will ask for: • Three to five years income tax returns • Copies of one to three years quarterly payroll reports • Three to five years CPA prepared financial statements • Current year to date financial statements • Detailed depreciation schedules listing each fixed asset owned by your company • Corporate Minute Book with updated minutes • Recent aged accounts receivable trial balance • Recent aged accounts payable trial balance • Company organization chart • Copy of the Summary of Insurance Coverage (provided by your carrier) • Information about Employee Benefits provided by the company • Information about Employee Retirement Plans • Copies of labor contracts • Copies of other contracts to which the company is a party • Copies of licenses, registrations for patents, copyrights, trademarks, etc.
The foregoing list is an example of the types of records your company should have up to date and on hand at all times. These records are extremely important to speed the sales process along. Though this advice sounds basic, I often encounter companies whose records are not complete and up to date. This situation can dramatically affect a potential sale.
I suggest using a three ring binder to keep the basic updated records available at all times. This also makes other business needs for the documents much more manageable.
CONCLUSION
You can increase your wealth by knowing a few simple ground rules for successfully selling your business. Just like other owners of closely-held businesses, you know how to operate your business on a day to day, month to month and year to year basis. But your experience in running the business has not prepared you to know how to sell your business.
While the information I provided in this article is not all inclusive, it should help you get started in preparing your business for a successful sale—no mater when the business might be sold.
York
Comments Off
May
12
Kia25 asked:
I am starting my own home-based business. I hope I can expand it outside of the home in a couple of years, but until then I just need to know how to start it. Like tax wise how do I go about registering and do I have to get a Tax id?
Lester
I am starting my own home-based business. I hope I can expand it outside of the home in a couple of years, but until then I just need to know how to start it. Like tax wise how do I go about registering and do I have to get a Tax id?
Lester
Apr
15
Filed Under (Make Money) by
We Buy Your Business asked:
We Buy Your Business
For some, planning a business exit can be a predictable, methodical process. We know the competition; we understand market demands, know when we want to sell and might even know the actual date. But for far too many business owners, the business exit comes as a harsh reality and often unplanned event.
Protecting your business and assets against the dreaded six D’s of an unplanned business exit can give whole new meaning to the term “Disaster Management”. While every business may experience unexpected pitfalls, careful planning to ensure risk exposure is minimized can assist in keeping you in the driver’s seat when it comes to managing your company. Familiarize yourself with the six D’s of an unplanned business exit: debt, death, disability, divorce, departure and disaster. Know the enemy and look to address all six D’s in your operating and buy / sell agreements.
The Six D’s of an Unplanned Business Exit
Debt:No one goes into business and plans on it not succeeding, but 40,000 businesses fail every month in the United States. When debt exceeds revenue, it is critical to exit timely in order to minimize loses. Understanding limitations and protecting critical assets are key to successful divesture.
Death:Many businesses are solely dependant on their owner’s abilities, relationships, and passion to drive success, and when there is a death of an owner or partner of a business, it can have significant impact to a business almost immediately. While no one wants to consider their own demise, the strength and longevity of a business relies on being able to plan for such a critical loss even if it means downsizing or reorganization. The survival of a business in relation to key individuals needs to be evaluated and exit strategies planned accordingly.
Disability:Unbelievably, death is not as likely to end the business as a disability. A disability to a business partner can put a significant drain on cash flow, daily workloads, and excess down time, all of which can be devastating. Insurance and financial planning towards alleviating such an impact needs to be carefully evaluated especially when dealing with small business start ups where funding and resources are limited.
Divorce:No one wants to plan for a business or personal divorce, yet while Pre-nuptial agreements may be gaining in popularity many people never look to manage such impact to their businesses. What happens when the partners cannot get along? Or worse, you inherit another partner due to a personal divorce settlement? Exiting the business might be the only alternative you are provided.
Departure:It does not sound as bad as death, but it can wreak the same results. A partner, key employees, or other resources decide to go to the competition, retire, burn out, or win the lotto. When they leave, how does this impact your business going forward?
Disaster:If the five D’s above where not enough to impact your business, there are no limit to the other disasters that may occur that were never planned on: robbery, sickness, employee theft, employee turnover, natural devastating events, etc. In today’s post Katrina, 911 world the impact of the chaos theory is enough to keep even the best business minds awake at night. Plan for the worst; strive for the best and know when to get out if need be.
For the typical business owner, each one of the six D’s has special demands on the family, income, taxes, and control of assets. An agreement, commonly called buy/sell agreements, can be used to plan for the impact associated with the dreaded six D’s. A successful sustaining business exists as a separate entity from personal concerns and risk can be reduced by developing mutually fair and equitable agreements prior to these events occurring.
Business is an evolution and travels a diverse path. While some may look on an unplanned exit as a failure others may see an opportunity for growth and freedom.
www.WeBuyYourBusiness.com
Whitney
We Buy Your Business
For some, planning a business exit can be a predictable, methodical process. We know the competition; we understand market demands, know when we want to sell and might even know the actual date. But for far too many business owners, the business exit comes as a harsh reality and often unplanned event.
Protecting your business and assets against the dreaded six D’s of an unplanned business exit can give whole new meaning to the term “Disaster Management”. While every business may experience unexpected pitfalls, careful planning to ensure risk exposure is minimized can assist in keeping you in the driver’s seat when it comes to managing your company. Familiarize yourself with the six D’s of an unplanned business exit: debt, death, disability, divorce, departure and disaster. Know the enemy and look to address all six D’s in your operating and buy / sell agreements.
The Six D’s of an Unplanned Business Exit
Debt:No one goes into business and plans on it not succeeding, but 40,000 businesses fail every month in the United States. When debt exceeds revenue, it is critical to exit timely in order to minimize loses. Understanding limitations and protecting critical assets are key to successful divesture.
Death:Many businesses are solely dependant on their owner’s abilities, relationships, and passion to drive success, and when there is a death of an owner or partner of a business, it can have significant impact to a business almost immediately. While no one wants to consider their own demise, the strength and longevity of a business relies on being able to plan for such a critical loss even if it means downsizing or reorganization. The survival of a business in relation to key individuals needs to be evaluated and exit strategies planned accordingly.
Disability:Unbelievably, death is not as likely to end the business as a disability. A disability to a business partner can put a significant drain on cash flow, daily workloads, and excess down time, all of which can be devastating. Insurance and financial planning towards alleviating such an impact needs to be carefully evaluated especially when dealing with small business start ups where funding and resources are limited.
Divorce:No one wants to plan for a business or personal divorce, yet while Pre-nuptial agreements may be gaining in popularity many people never look to manage such impact to their businesses. What happens when the partners cannot get along? Or worse, you inherit another partner due to a personal divorce settlement? Exiting the business might be the only alternative you are provided.
Departure:It does not sound as bad as death, but it can wreak the same results. A partner, key employees, or other resources decide to go to the competition, retire, burn out, or win the lotto. When they leave, how does this impact your business going forward?
Disaster:If the five D’s above where not enough to impact your business, there are no limit to the other disasters that may occur that were never planned on: robbery, sickness, employee theft, employee turnover, natural devastating events, etc. In today’s post Katrina, 911 world the impact of the chaos theory is enough to keep even the best business minds awake at night. Plan for the worst; strive for the best and know when to get out if need be.
For the typical business owner, each one of the six D’s has special demands on the family, income, taxes, and control of assets. An agreement, commonly called buy/sell agreements, can be used to plan for the impact associated with the dreaded six D’s. A successful sustaining business exists as a separate entity from personal concerns and risk can be reduced by developing mutually fair and equitable agreements prior to these events occurring.
Business is an evolution and travels a diverse path. While some may look on an unplanned exit as a failure others may see an opportunity for growth and freedom.
www.WeBuyYourBusiness.com
Whitney
Comments Off
Mar
28
Casey Gollan asked:
Picture this…
The typical business owner starts a business. Usually it’s just them by themselves or maybe one or two other people.
They do a great job. As the number of staff is small everyone is working together and they are getting things done.
They become successful and it’s time to employ some more people.
A couple more people are employed – but some cracks start to appear.
As the business employs some more staff – the cracks become wider and wider.
Soon the business owner notices that there’s not much money being made by the business.
There’s staff problems.
There may be some customers complaining. Some customers may even be lost.
Things just aren’t working anymore.
The business ‘plateaus’ and the owner becomes stressed, tired and overwhelmed.
The business owner starts to ask whether it’s all worth it.
Should they downsize and just go back to the way things were… Or do they grow.
They want to grow the business – they know that’s there’s heaps of potential in the business – yet they keep hitting ‘a brick wall’.
They are trying to make it to the next level, but they keep getting sucked back in to the business to ‘put out fires’… and it’s wearing the owner down.
Sound familiar?
I see this all the time. It’s at this point that my clients seek me out.
I specialise in helping business owners through this point in their business growth.
And it’s easy; I do this day in day out.
Let me describe how the previous situation happens.
In the initial growth of the business, when a business only has a few people – everyone has an idea of what everyone else is doing – so they can work effectively together.
Yet when you get to about 3 to 7 people or more, things need to change.
Because around that number of people, some of the people can ‘bludge’, they can hide. So they do.
After all – at this size, the business owner is usually still ‘doing’ things in the business at this stage, so they have their hands full.
And they want to grow so they know they need staff to help them. But because most business owners don’t have much training in how to hire, train and motivate staff – they tend to ‘put up’ with staff that JUST do enough to stay employed.
But what happens is that the business owner ends up ‘finishing things off’ that their people have started or can’t do.
The business owner tends to ‘save’ the day.
They know it, and so does their staff!
So their staff let the owners come in to save the day – and they do it often. After all, most people have a lazy streak in them. So why not wait for someone else to do it, “after all it’s their business” – the employee thinks.
It’s at this point that the business can often start to wander off track, the business owner can become stressed, overwhelmed and questions whether it’s all worth it.
It is worth it, and if you’re at this point in your business – don’t give up – because with a little guidance from me, it’s easy for you to fix.
And the rewards can almost immediately start flooding in.
If you’re at this point you’ve done most of the hard work in business. You’re turning over good money, you have customers, you have a place in the market, and you have employees.
Now it’s a process of getting IT all to work for you.
Rather than YOU having to do all the work – to make it work.
Because when you get your business working – you won’t have to work.
The reason why most business owners work so many hours – is because their business doesn’t work.
All successful business owners have stepped through this phase in business growth.
It’s a phase where your staff have to step up and do what you are employing them to do – without you having to ‘look-over-their-shoulder’ to make sure it’s getting done.
There are 3 Crucial things that you must have in place for you to make it through this phase successfully.
On my 1-on-1 business coaching program I take you though these 3 crucial things so that you have them specifically and especially designed and implemented for your business.
That way it’s unique for you and your situation.
When you have these 3 crucial things in place here are the benefits you’ll enjoy…
When you have first Crucial element in place – you’ll find that your staff will individually take ownership and responsibility for their roles and responsibilities in your business. They will willingly want to work at their optimal in your business, and make it happen.
It’s at that time that they’ll do what’s required of them – willingly.
When you have the 2nd crucial element in place you’ll find that Your staff will regularly review, plan and improve areas in your business to help the business grow.
Everyone in the business will willingly work together and will be aware of what is going on in the business. Everyone will work efficiently and effectively so that their individual roles work harmoniously with each other thus creating the power of synergy in your business.
They’ll also have the initiative to find out what they have to do and when they have to do things by.
And finally, when the 3rd crucial element is in place you’ll benefit because your staff will naturally start to follow you. And they’ll willingly want to perform at higher levels.
They’ll be aware that for everyone to benefit from the business, everyone must work together like a team. And they’ll all know that there’ll be consequences for anyone that lets the others down. So they’ll work extra hard to make sure no-one lets the team down.
This sounds like a dream to most business owners. And sadly – for some – it is.
Despite being readily able to achieve this in their business – for some odd reason they think it could never happen. So they never try to find out how to do it.
And it’s disappointing. Because it can happen.
I’ve been doing it with business owners just like you and with businesses just like yours – for years now. Successfully. Go to my testimonial pages http://www.caseygollan.com.au/businessgrowthtestimonials1.htm and listen to the long interviews – you’ll hear success after success.
Wouldn’t any passionate, determined business owner want to at least try to achieve this level of success?
Happily some business owners do. And with great success.
In essence, the secret is to get everything else working ‘together’ in your business – that way you (the business owner) don’t have to work.
And these 3 crucial areas will allow you to make it happen.
How fast could you do it? Well that depends on you, your business structure and your situation.
But rest assured you can do it.
All the best business owners use these 3 crucial areas. Learn what they are – put them into place and you can reap the rewards.
Copyright © 2007 by Casey Gollan. All Rights Reserved
Selma
Picture this…
The typical business owner starts a business. Usually it’s just them by themselves or maybe one or two other people.
They do a great job. As the number of staff is small everyone is working together and they are getting things done.
They become successful and it’s time to employ some more people.
A couple more people are employed – but some cracks start to appear.
As the business employs some more staff – the cracks become wider and wider.
Soon the business owner notices that there’s not much money being made by the business.
There’s staff problems.
There may be some customers complaining. Some customers may even be lost.
Things just aren’t working anymore.
The business ‘plateaus’ and the owner becomes stressed, tired and overwhelmed.
The business owner starts to ask whether it’s all worth it.
Should they downsize and just go back to the way things were… Or do they grow.
They want to grow the business – they know that’s there’s heaps of potential in the business – yet they keep hitting ‘a brick wall’.
They are trying to make it to the next level, but they keep getting sucked back in to the business to ‘put out fires’… and it’s wearing the owner down.
Sound familiar?
I see this all the time. It’s at this point that my clients seek me out.
I specialise in helping business owners through this point in their business growth.
And it’s easy; I do this day in day out.
Let me describe how the previous situation happens.
In the initial growth of the business, when a business only has a few people – everyone has an idea of what everyone else is doing – so they can work effectively together.
Yet when you get to about 3 to 7 people or more, things need to change.
Because around that number of people, some of the people can ‘bludge’, they can hide. So they do.
After all – at this size, the business owner is usually still ‘doing’ things in the business at this stage, so they have their hands full.
And they want to grow so they know they need staff to help them. But because most business owners don’t have much training in how to hire, train and motivate staff – they tend to ‘put up’ with staff that JUST do enough to stay employed.
But what happens is that the business owner ends up ‘finishing things off’ that their people have started or can’t do.
The business owner tends to ‘save’ the day.
They know it, and so does their staff!
So their staff let the owners come in to save the day – and they do it often. After all, most people have a lazy streak in them. So why not wait for someone else to do it, “after all it’s their business” – the employee thinks.
It’s at this point that the business can often start to wander off track, the business owner can become stressed, overwhelmed and questions whether it’s all worth it.
It is worth it, and if you’re at this point in your business – don’t give up – because with a little guidance from me, it’s easy for you to fix.
And the rewards can almost immediately start flooding in.
If you’re at this point you’ve done most of the hard work in business. You’re turning over good money, you have customers, you have a place in the market, and you have employees.
Now it’s a process of getting IT all to work for you.
Rather than YOU having to do all the work – to make it work.
Because when you get your business working – you won’t have to work.
The reason why most business owners work so many hours – is because their business doesn’t work.
All successful business owners have stepped through this phase in business growth.
It’s a phase where your staff have to step up and do what you are employing them to do – without you having to ‘look-over-their-shoulder’ to make sure it’s getting done.
There are 3 Crucial things that you must have in place for you to make it through this phase successfully.
On my 1-on-1 business coaching program I take you though these 3 crucial things so that you have them specifically and especially designed and implemented for your business.
That way it’s unique for you and your situation.
When you have these 3 crucial things in place here are the benefits you’ll enjoy…
When you have first Crucial element in place – you’ll find that your staff will individually take ownership and responsibility for their roles and responsibilities in your business. They will willingly want to work at their optimal in your business, and make it happen.
It’s at that time that they’ll do what’s required of them – willingly.
When you have the 2nd crucial element in place you’ll find that Your staff will regularly review, plan and improve areas in your business to help the business grow.
Everyone in the business will willingly work together and will be aware of what is going on in the business. Everyone will work efficiently and effectively so that their individual roles work harmoniously with each other thus creating the power of synergy in your business.
They’ll also have the initiative to find out what they have to do and when they have to do things by.
And finally, when the 3rd crucial element is in place you’ll benefit because your staff will naturally start to follow you. And they’ll willingly want to perform at higher levels.
They’ll be aware that for everyone to benefit from the business, everyone must work together like a team. And they’ll all know that there’ll be consequences for anyone that lets the others down. So they’ll work extra hard to make sure no-one lets the team down.
This sounds like a dream to most business owners. And sadly – for some – it is.
Despite being readily able to achieve this in their business – for some odd reason they think it could never happen. So they never try to find out how to do it.
And it’s disappointing. Because it can happen.
I’ve been doing it with business owners just like you and with businesses just like yours – for years now. Successfully. Go to my testimonial pages http://www.caseygollan.com.au/businessgrowthtestimonials1.htm and listen to the long interviews – you’ll hear success after success.
Wouldn’t any passionate, determined business owner want to at least try to achieve this level of success?
Happily some business owners do. And with great success.
In essence, the secret is to get everything else working ‘together’ in your business – that way you (the business owner) don’t have to work.
And these 3 crucial areas will allow you to make it happen.
How fast could you do it? Well that depends on you, your business structure and your situation.
But rest assured you can do it.
All the best business owners use these 3 crucial areas. Learn what they are – put them into place and you can reap the rewards.
Copyright © 2007 by Casey Gollan. All Rights Reserved
Selma
Comments Off
Nick P asked:
I’ve been thinking about opening a business mowing lawns in the summer and plowing snow in the winter now for the last 2 years now, except I’ve never actually worked in the industry. I was just wondering if anyone could give me any information about the way that these business owners contract their business. Do they get a year or two contract with each business or is it by the job? Also, in either of the two scenarios how much money would be considered going rate to their customers? Thanks in advance for the information.
Bill
I’ve been thinking about opening a business mowing lawns in the summer and plowing snow in the winter now for the last 2 years now, except I’ve never actually worked in the industry. I was just wondering if anyone could give me any information about the way that these business owners contract their business. Do they get a year or two contract with each business or is it by the job? Also, in either of the two scenarios how much money would be considered going rate to their customers? Thanks in advance for the information.
Bill
Jan
04
John Leonetti, Esq., M.S. Finance, CM&A.A asked:
Most business owners believe that an ‘external’ sale of their business is their only (or at least best) Exit Alternative. Typically this is because business owners know that their employees and/or fellow family members don’t have the type of money required to secure a successful exit plan for them. So often times, business owners approach (view or see) the topic of Exiting a business as meaning that they need to sell their business to an outside buyer with enough money to pay them what they want.
So while an ‘external’ sale is intuitively appealing, it’s my experience that an understanding of ‘internal’ transfers will help open up a very good dialogue with a business owner so that they can understand all their options and make a well informed decision. In fact, analysis of an ‘internal’ transfer of the business can be a powerful alternative to a business owner looking for an Exit Strategy. And, depending upon the business owner’s motives, it may be the best alternative available.
‘Internal’ transfers of ownership in a business are often times overlooked because they are not intuitively understood by the business owner and/or the business owner’s advisors. So let’s examine some of the ‘internal’ transfer methods that are available to a business owner to illustrate the benefit of a well-conceived Exit Strategy.
‘Internal’ transfer methods include Employee Stock Ownership Plans (ESOP) Transfers, Management Buyouts (Sales to Family and Management), Gifting Strategies, Private Annuities, Family Limited Partnerships, and Charitable Transfer Strategies. The three (3) primary differences between these ‘internal’ transfer alternatives versus (and the) ‘external’ transfer alternatives are:
(i) the corporate assets, including future cash flows, are leveraged to achieve these strategies;
(ii) the driving force behind these ‘engineered’ strategies is a business owner’s motive of passing the business to someone other than an outside buyer, and;
(iii) the business owners will frequently be considering tax planning and estate planning along with their Exit Strategies. ‘Internal’ transfers, as a general rule, allow for more flexibility in these areas than ‘external’ transfers.
A business owner considering an ‘internal’ transfer can set the price and terms for the transfer and say to their family and/or management team, “Here is what I want/need for my business”. For this reason, ‘internal’ transfers are often referred to as ‘controlled’ transactions because the business owner is working with ‘assets’ that they already possess in structuring their Exit from the business. So if those ‘assets’ are sufficient to achieve that business owners’ goals (based on their motives), then it is worthwhile to examine an ‘internal’ transfer.
This is in sharp contrast to a business owner attempting an ‘external’ transfer because they are often subject to a process that includes outsiders investigating their potential investment in the ‘Target Company’ and then telling the business owners, “Here is what we are willing to give you for your business”. So, the Exiting business owner can expect to lose quite a bit of control over the process. And, because many business owners possess a unique psychological mix of independence, intelligence and control orientation, losing control to an outside buyer often leads to ‘choppiness’ in a deal.
Mergers and Acquisitions professionals will often advise business owners that if the business owner wants to set the price for the deal, then the outside buyer will be setting the terms for the deal. A deal is struck when each party is ‘equally happy’. Or, as one dealmaker said, every successful ‘external’ deal is a “little miracle”.
So, one will naturally ask, “What’s the downside of an ‘internal’ transfer versus an ‘external’ transfer”? Quite simply, negotiating with family members and key employees can be inherently dangerous. These individuals (and their advisors) will require detailed and confidential information from the business owner in order to fully understand all the risks inherent in owning the business – really no different than the ‘external’ buyer. And of course, most business owners are not anxious to share all their information with their employees; it goes against the nature of the relationship amongst workers and owners.
So then, how does one go about negotiating an ‘internal’ transfer? The answer is “very carefully”. And, the most cautious first step that a business owner can take is to engage an intermediary – which can be any one of the existing advisors to that business – to assist with the transaction. Having trusted advisors involved in the process raises the level of objectivity and lowers the level of emotions when negotiating the transfer.
Because, after all, if the ‘internal’ transfer does not work out, it will not add a lot of Value to the business to have [further] frustrated employees due to that business owner’s own doing. It’s easier to place blame for a failed transaction with a third party advisor so that all parties involved can amicably return to the business of running [and not transferring] the business.
Yet another downside to an ‘internal’ transfer is the loss of potential for extraordinary gain on the transfer. As a general rule, ‘external’ buyers for businesses include ‘Strategic’ (or industry) buyers and ‘Financial’ (such as Private Equity Groups) buyers.
A Strategic Buyer of a business stands to offer the selling business owner the highest total Value in buying the business because that buyer can apply ‘synergies’ to the valuation of the deal. In other words, a buyer who is already in the same business as the seller, can eliminate duplicate expenses and acquire new customers for their existing products. These ‘synergies’ help raise the Value of the transaction to the Industry buyer, and a good M&A intermediary will argue for the sharing of those synergies with the selling business owner. This synergistic value is likely not available with an ‘internal’ transfer.
So to summarize my original point, a business owner who wants to Exit their business should be aware of the various methods by which an Exit can be directed. Thereafter, consideration should be given to that business owner’s motives. In other words, what is most important to that Exiting business owner and how can it best be accomplished?
An Exit Strategy is defined as ‘The written goals for the succession of a businesses’ ownership and control, derived from a well thought out and properly timed plan that considers all factors, all interested parties, and the personal goals of the owners in a manner and time period that is accommodative to the business, its shareholders, and potential buyers.’ Accordingly, knowing the pros and cons of ‘internal’ and ‘external’ transfers is a critical step in establishing an Exit Strategy.
Exit Strategies are hard to design and even harder to properly execute. I am pleased that you are pursuing a pro-active interest in Exit Strategies because a pro-active approach to an Exit Strategy is the only approach to a successful Exit Strategy.
© 2007 John M. Leonetti
Beryl
Most business owners believe that an ‘external’ sale of their business is their only (or at least best) Exit Alternative. Typically this is because business owners know that their employees and/or fellow family members don’t have the type of money required to secure a successful exit plan for them. So often times, business owners approach (view or see) the topic of Exiting a business as meaning that they need to sell their business to an outside buyer with enough money to pay them what they want.
So while an ‘external’ sale is intuitively appealing, it’s my experience that an understanding of ‘internal’ transfers will help open up a very good dialogue with a business owner so that they can understand all their options and make a well informed decision. In fact, analysis of an ‘internal’ transfer of the business can be a powerful alternative to a business owner looking for an Exit Strategy. And, depending upon the business owner’s motives, it may be the best alternative available.
‘Internal’ transfers of ownership in a business are often times overlooked because they are not intuitively understood by the business owner and/or the business owner’s advisors. So let’s examine some of the ‘internal’ transfer methods that are available to a business owner to illustrate the benefit of a well-conceived Exit Strategy.
‘Internal’ transfer methods include Employee Stock Ownership Plans (ESOP) Transfers, Management Buyouts (Sales to Family and Management), Gifting Strategies, Private Annuities, Family Limited Partnerships, and Charitable Transfer Strategies. The three (3) primary differences between these ‘internal’ transfer alternatives versus (and the) ‘external’ transfer alternatives are:
(i) the corporate assets, including future cash flows, are leveraged to achieve these strategies;
(ii) the driving force behind these ‘engineered’ strategies is a business owner’s motive of passing the business to someone other than an outside buyer, and;
(iii) the business owners will frequently be considering tax planning and estate planning along with their Exit Strategies. ‘Internal’ transfers, as a general rule, allow for more flexibility in these areas than ‘external’ transfers.
A business owner considering an ‘internal’ transfer can set the price and terms for the transfer and say to their family and/or management team, “Here is what I want/need for my business”. For this reason, ‘internal’ transfers are often referred to as ‘controlled’ transactions because the business owner is working with ‘assets’ that they already possess in structuring their Exit from the business. So if those ‘assets’ are sufficient to achieve that business owners’ goals (based on their motives), then it is worthwhile to examine an ‘internal’ transfer.
This is in sharp contrast to a business owner attempting an ‘external’ transfer because they are often subject to a process that includes outsiders investigating their potential investment in the ‘Target Company’ and then telling the business owners, “Here is what we are willing to give you for your business”. So, the Exiting business owner can expect to lose quite a bit of control over the process. And, because many business owners possess a unique psychological mix of independence, intelligence and control orientation, losing control to an outside buyer often leads to ‘choppiness’ in a deal.
Mergers and Acquisitions professionals will often advise business owners that if the business owner wants to set the price for the deal, then the outside buyer will be setting the terms for the deal. A deal is struck when each party is ‘equally happy’. Or, as one dealmaker said, every successful ‘external’ deal is a “little miracle”.
So, one will naturally ask, “What’s the downside of an ‘internal’ transfer versus an ‘external’ transfer”? Quite simply, negotiating with family members and key employees can be inherently dangerous. These individuals (and their advisors) will require detailed and confidential information from the business owner in order to fully understand all the risks inherent in owning the business – really no different than the ‘external’ buyer. And of course, most business owners are not anxious to share all their information with their employees; it goes against the nature of the relationship amongst workers and owners.
So then, how does one go about negotiating an ‘internal’ transfer? The answer is “very carefully”. And, the most cautious first step that a business owner can take is to engage an intermediary – which can be any one of the existing advisors to that business – to assist with the transaction. Having trusted advisors involved in the process raises the level of objectivity and lowers the level of emotions when negotiating the transfer.
Because, after all, if the ‘internal’ transfer does not work out, it will not add a lot of Value to the business to have [further] frustrated employees due to that business owner’s own doing. It’s easier to place blame for a failed transaction with a third party advisor so that all parties involved can amicably return to the business of running [and not transferring] the business.
Yet another downside to an ‘internal’ transfer is the loss of potential for extraordinary gain on the transfer. As a general rule, ‘external’ buyers for businesses include ‘Strategic’ (or industry) buyers and ‘Financial’ (such as Private Equity Groups) buyers.
A Strategic Buyer of a business stands to offer the selling business owner the highest total Value in buying the business because that buyer can apply ‘synergies’ to the valuation of the deal. In other words, a buyer who is already in the same business as the seller, can eliminate duplicate expenses and acquire new customers for their existing products. These ‘synergies’ help raise the Value of the transaction to the Industry buyer, and a good M&A intermediary will argue for the sharing of those synergies with the selling business owner. This synergistic value is likely not available with an ‘internal’ transfer.
So to summarize my original point, a business owner who wants to Exit their business should be aware of the various methods by which an Exit can be directed. Thereafter, consideration should be given to that business owner’s motives. In other words, what is most important to that Exiting business owner and how can it best be accomplished?
An Exit Strategy is defined as ‘The written goals for the succession of a businesses’ ownership and control, derived from a well thought out and properly timed plan that considers all factors, all interested parties, and the personal goals of the owners in a manner and time period that is accommodative to the business, its shareholders, and potential buyers.’ Accordingly, knowing the pros and cons of ‘internal’ and ‘external’ transfers is a critical step in establishing an Exit Strategy.
Exit Strategies are hard to design and even harder to properly execute. I am pleased that you are pursuing a pro-active interest in Exit Strategies because a pro-active approach to an Exit Strategy is the only approach to a successful Exit Strategy.
© 2007 John M. Leonetti
Beryl
Comments Off
Nov
25
Filed Under (Make Money) by
Casey Gollan asked:
When it comes to successful business growth – one of the key differences that separates the successful business owners from the average ones…
Is what the business owner ‘works’ on – when they have employees.
I have noticed that the best business owners work on improving their employees…
Why? Well, so that the employees learn and then do certain tasks that the business owner used to do.
By doing this, the owner can remove themselves from the ‘day-to-day’ running of the business so that they can work on areas that can grow the business – and/or do the things they enjoy doing.
Like playing golf, going on holidays, spending time with their families.
On the other hand, the average business owner continues to work ‘in’ the business despite having employees. For a number of reasons the average business owner says that they don’t have the ‘time’ to improve their employees.
As a result, the employees lack the skills and/or the freedom to do the tasks that would free up the business owner from the day-to-day running of the business.
So guess what happens? The business remains dependent on the Business owner.
So the Business owner has to continue working.
Despite having employees, the business owner is still working a million hours… but the business never seems to grow to the levels that the business owner is hoping for – even though they’re working harder than they ever have.
Does this sound familiar?
Let’s explore how this happens.
The average business owner that wants to grow their business – but find it very hard to grow successfully… tends to do the following.
They have a business – and it’s growing. Early in the business it’s just the owner and maybe a few others. The business is growing, and the owner is working a million hours.
The average business owner knows that they should employ staff, but they put it off and put it off, until they can’t possibly cope with the workload anymore.
So they hire new staff at the last minute.
Usually the new person is employed in such a hurry that the business owner doesn’t have the time to train them. Because the business is so busy.
After all, the business owner has been working a million hours, so they’re probably feeling a bit stressed and overwhelmed.
They’re typically not feeling in control and calm – that’s for sure.
And the business owner usually doesn’t have a system to hire appropriately skilled or passionate people.
Because they don’t have a proven hiring system, the staff that are employed can often lie their way through interviews telling the owner that they do have skills – when they actually don’t.
You know how the story goes…
Anyway, a new person is hired.
But because the business is busy, and the business has no real induction or training system to get the new employees up to speed – the business owner continues to focus on doing the work themselves.
When the owner checks to see how the new employee is performing, they get disappointed because the new person doesn’t have the ‘skills’ or the initiative to do things properly.
So the business owner steps in to ‘do it themselves’ because they think that they can ‘save time’ by doing it themselves.
It’s at this time the business owner starts proving to themselves that ‘no-one can do it as good as me’.
And they are correct. Of course no-one can do it as good as them – because no one has taught the new employees properly.
So the average business owner continues to do the ‘day-to-day’ things, and take over from their staff when the staff aren’t doing the right things…
By continuing to do the work that the employees are suppose to do, the staff very quickly realize that the business owner will always ‘save the day’.
So they back off on their productivity, and their passion.
The staff quickly learn how to ‘hide’ in the business so that they just get by.
They become ‘clock watches’. They turn up to work, to watch the clock and as soon as it turns 5pm – they’re out of there.
And this hurts your customers. Because the customers of the business receive inconsistent levels of service.
The customers quickly begin to realize that if the business owner serves them – they may get extraordinary service.
And if the staff serves them – they’ll get inadequate service.
If the service is poor and inconsistent the customers will start to get annoyed. They’ll literally ask for the owner every time they come into the business. Because they know they’ll get the service they want.
And that’s a sign of a poorly trained team.
As a result the customers end up going somewhere else, the business suffers, the sales and profits dwindle – and the business owner blames it on the ‘staff’.
The business owner may then go into “see I told you I can’t find the right people’.
The average business owner has tried to grow the business, yet misses a few crucial things that makes them miss out on the rewards of a successful business.
The result is unhappy staff, unhappy customers, a business that barely makes any money – and an owner that works around the clock, stressed and overwhelmed for little or no return.
Well it doesn’t have to be that way!
You can quickly and easily turn this around, if you’re in this position, or even better you can completely avoid it by following my guidance.
Every great business owner that I know, that has successful business growth follow a number of specific steps to get them out of the situation I’ve just outlined.
And it’s crucial for the growth of your business too.
It’s wonderfully easy when you learn how to do it for your situation.
Let’s look at what the best business owners achieve by following these specific steps – and what you could possibly achieve by following my guidance.
Firstly – your staff will have the right skill sets and attitude to work in your business. Plus they’ll improve and grow rapidly (faster than you may think). This means that you can comfortably rely on them to get the ‘job-done’.
By focusing on getting the team up to the standard you can be assured that in a few weeks or months they’ll be at the point where you can depend on them.
They’ll be doing a great job and delivering consistent levels of service.
As a result you can now forget about having to ‘look over their shoulder’, or forget about having to ‘save the day’ like other average business owners.
Because your staff are now producing – you have freed yourself up from the day to day running of the business – so you can focus on ways to grow and improve your business.
And you can even spoil yourself with reduced work hours, time off and even holidays.
Imagine that?
Now, back to your staff.
Because they’re learning, growing and producing you’ll be happy with them and they’ll be happy with themselves – and of course they’ll be happy working for you.
And it’ll rub off on your customers.
Why?
Because your customers will get great consistent service from your entire business.
So what will this mean to your business?
For a start, your customers won’t always be asking for you, because they know your staff are consistent – so you won’t feel trapped.
Because of this consistency your customers will reward your business with their repeatable profitable custom, positive word of mouth and ongoing referrals to your business.
Now you’ll have a business where the team are growing and happy, your customers are happy and raving about you, and your financials are healthy and very profitable.
That’s right, your business will be profitable which means you’ll be making great money – and remember, your staff will be doing most of the work… so you’ll not only be making great money – you’ll also have ample free time.
Can you see, hear and feel what’s happening to your business?
Multi-millionaire business owners always tell me that the most important part of their growth – is good people. They’ll always hire people that know more and perform better than them on the certains task they are employed for.
People are one of your greatest assets as a business owner. And like any asset you need to invest in it to get returns.
Invest your time and your focus on growing your people to do better than you. That way you’ll have the time to grow your business.
On my one-on-one business coaching program I take my clients through this process step by step so that they can fast track their growth – with the safety and peace of mind knowing that they are following a process that has worked time and time again.
Copyright © 2007 by Casey Gollan. All Rights Reserved
Kyle
When it comes to successful business growth – one of the key differences that separates the successful business owners from the average ones…
Is what the business owner ‘works’ on – when they have employees.
I have noticed that the best business owners work on improving their employees…
Why? Well, so that the employees learn and then do certain tasks that the business owner used to do.
By doing this, the owner can remove themselves from the ‘day-to-day’ running of the business so that they can work on areas that can grow the business – and/or do the things they enjoy doing.
Like playing golf, going on holidays, spending time with their families.
On the other hand, the average business owner continues to work ‘in’ the business despite having employees. For a number of reasons the average business owner says that they don’t have the ‘time’ to improve their employees.
As a result, the employees lack the skills and/or the freedom to do the tasks that would free up the business owner from the day-to-day running of the business.
So guess what happens? The business remains dependent on the Business owner.
So the Business owner has to continue working.
Despite having employees, the business owner is still working a million hours… but the business never seems to grow to the levels that the business owner is hoping for – even though they’re working harder than they ever have.
Does this sound familiar?
Let’s explore how this happens.
The average business owner that wants to grow their business – but find it very hard to grow successfully… tends to do the following.
They have a business – and it’s growing. Early in the business it’s just the owner and maybe a few others. The business is growing, and the owner is working a million hours.
The average business owner knows that they should employ staff, but they put it off and put it off, until they can’t possibly cope with the workload anymore.
So they hire new staff at the last minute.
Usually the new person is employed in such a hurry that the business owner doesn’t have the time to train them. Because the business is so busy.
After all, the business owner has been working a million hours, so they’re probably feeling a bit stressed and overwhelmed.
They’re typically not feeling in control and calm – that’s for sure.
And the business owner usually doesn’t have a system to hire appropriately skilled or passionate people.
Because they don’t have a proven hiring system, the staff that are employed can often lie their way through interviews telling the owner that they do have skills – when they actually don’t.
You know how the story goes…
Anyway, a new person is hired.
But because the business is busy, and the business has no real induction or training system to get the new employees up to speed – the business owner continues to focus on doing the work themselves.
When the owner checks to see how the new employee is performing, they get disappointed because the new person doesn’t have the ‘skills’ or the initiative to do things properly.
So the business owner steps in to ‘do it themselves’ because they think that they can ‘save time’ by doing it themselves.
It’s at this time the business owner starts proving to themselves that ‘no-one can do it as good as me’.
And they are correct. Of course no-one can do it as good as them – because no one has taught the new employees properly.
So the average business owner continues to do the ‘day-to-day’ things, and take over from their staff when the staff aren’t doing the right things…
By continuing to do the work that the employees are suppose to do, the staff very quickly realize that the business owner will always ‘save the day’.
So they back off on their productivity, and their passion.
The staff quickly learn how to ‘hide’ in the business so that they just get by.
They become ‘clock watches’. They turn up to work, to watch the clock and as soon as it turns 5pm – they’re out of there.
And this hurts your customers. Because the customers of the business receive inconsistent levels of service.
The customers quickly begin to realize that if the business owner serves them – they may get extraordinary service.
And if the staff serves them – they’ll get inadequate service.
If the service is poor and inconsistent the customers will start to get annoyed. They’ll literally ask for the owner every time they come into the business. Because they know they’ll get the service they want.
And that’s a sign of a poorly trained team.
As a result the customers end up going somewhere else, the business suffers, the sales and profits dwindle – and the business owner blames it on the ‘staff’.
The business owner may then go into “see I told you I can’t find the right people’.
The average business owner has tried to grow the business, yet misses a few crucial things that makes them miss out on the rewards of a successful business.
The result is unhappy staff, unhappy customers, a business that barely makes any money – and an owner that works around the clock, stressed and overwhelmed for little or no return.
Well it doesn’t have to be that way!
You can quickly and easily turn this around, if you’re in this position, or even better you can completely avoid it by following my guidance.
Every great business owner that I know, that has successful business growth follow a number of specific steps to get them out of the situation I’ve just outlined.
And it’s crucial for the growth of your business too.
It’s wonderfully easy when you learn how to do it for your situation.
Let’s look at what the best business owners achieve by following these specific steps – and what you could possibly achieve by following my guidance.
Firstly – your staff will have the right skill sets and attitude to work in your business. Plus they’ll improve and grow rapidly (faster than you may think). This means that you can comfortably rely on them to get the ‘job-done’.
By focusing on getting the team up to the standard you can be assured that in a few weeks or months they’ll be at the point where you can depend on them.
They’ll be doing a great job and delivering consistent levels of service.
As a result you can now forget about having to ‘look over their shoulder’, or forget about having to ‘save the day’ like other average business owners.
Because your staff are now producing – you have freed yourself up from the day to day running of the business – so you can focus on ways to grow and improve your business.
And you can even spoil yourself with reduced work hours, time off and even holidays.
Imagine that?
Now, back to your staff.
Because they’re learning, growing and producing you’ll be happy with them and they’ll be happy with themselves – and of course they’ll be happy working for you.
And it’ll rub off on your customers.
Why?
Because your customers will get great consistent service from your entire business.
So what will this mean to your business?
For a start, your customers won’t always be asking for you, because they know your staff are consistent – so you won’t feel trapped.
Because of this consistency your customers will reward your business with their repeatable profitable custom, positive word of mouth and ongoing referrals to your business.
Now you’ll have a business where the team are growing and happy, your customers are happy and raving about you, and your financials are healthy and very profitable.
That’s right, your business will be profitable which means you’ll be making great money – and remember, your staff will be doing most of the work… so you’ll not only be making great money – you’ll also have ample free time.
Can you see, hear and feel what’s happening to your business?
Multi-millionaire business owners always tell me that the most important part of their growth – is good people. They’ll always hire people that know more and perform better than them on the certains task they are employed for.
People are one of your greatest assets as a business owner. And like any asset you need to invest in it to get returns.
Invest your time and your focus on growing your people to do better than you. That way you’ll have the time to grow your business.
On my one-on-one business coaching program I take my clients through this process step by step so that they can fast track their growth – with the safety and peace of mind knowing that they are following a process that has worked time and time again.
Copyright © 2007 by Casey Gollan. All Rights Reserved
Kyle
Comments Off
Sep
06
Filed Under (Make Money) by
Tanny Lahav asked:
For any internet marketer, there is only one important reason to advertise your internet home business and it is to build and grow your online business, make it a profitable business and finally become financially free. This is the reason why many of the business owners are promoting their businesses. Have you ever asked yourself why do you need to promote an internet home business?
When it comes to promoting your internet home business you do it for 3 reasons that have one big reason behind them. Without those 3 reasons you won’t be able to build and grow your business.
These 3 reasons are your planted seeds, and if these seed will grow, you will see you home business growing too.
The first and most important reason is to let people know about you and your online business. It is like opening a new store, which nobody knows about, if people don’t know it’s there, they will never enter, if they never enter, there will be no sales and no profit. Imagine a store in a deserted street with no sign to guide the people from the high street. This is equal with an online business; people need to know it’s there, and your job is to show them the way into your new store.
This is called traffic, you want the traffic to your website or blog to grow everyday on a regular basis. Promoting your internet home business using internet marketing methods is what you need to do.
The second reason, and as important as the first one, is to grow your list. Some of internet marketing gurus will tell you that the money is in the list. They know what they are saying, a large list means you have access to more people who might be interested in your products, or services you have to offer. To grow your list you need the traffic from the previous reason. When people visit your website or blog, some of them will sign up to your newsletter as your list, this is why offering a valuable information on you newsletter will help you grow your list.
The third and last reason and the first reason you probably started an online business is to make money online. This is the bottom line, you entered this business to make money and if you want to make money, you will have to promote your internet home business, all the actions you will make to promote your business will drive traffic to your online business and end up with you selling products and services to your online costumers and making money online.
To make money you need both traffic and a large list, one marketing method is not enough, the wider your range is the more visitors you will have, ending wither more profits.
To attain your main goal, you will have to accomplish these 3 goals first. You will have to promote your internet home business, you will have to work hard, master and implement all the internet marketing methods to the benefit of growing a strong internet home business. This is not a difficult task, it is only a matter of hard work and determination and how much you desire to achieve your goals and become financially free.
Damrey
For any internet marketer, there is only one important reason to advertise your internet home business and it is to build and grow your online business, make it a profitable business and finally become financially free. This is the reason why many of the business owners are promoting their businesses. Have you ever asked yourself why do you need to promote an internet home business?
When it comes to promoting your internet home business you do it for 3 reasons that have one big reason behind them. Without those 3 reasons you won’t be able to build and grow your business.
These 3 reasons are your planted seeds, and if these seed will grow, you will see you home business growing too.
The first and most important reason is to let people know about you and your online business. It is like opening a new store, which nobody knows about, if people don’t know it’s there, they will never enter, if they never enter, there will be no sales and no profit. Imagine a store in a deserted street with no sign to guide the people from the high street. This is equal with an online business; people need to know it’s there, and your job is to show them the way into your new store.
This is called traffic, you want the traffic to your website or blog to grow everyday on a regular basis. Promoting your internet home business using internet marketing methods is what you need to do.
The second reason, and as important as the first one, is to grow your list. Some of internet marketing gurus will tell you that the money is in the list. They know what they are saying, a large list means you have access to more people who might be interested in your products, or services you have to offer. To grow your list you need the traffic from the previous reason. When people visit your website or blog, some of them will sign up to your newsletter as your list, this is why offering a valuable information on you newsletter will help you grow your list.
The third and last reason and the first reason you probably started an online business is to make money online. This is the bottom line, you entered this business to make money and if you want to make money, you will have to promote your internet home business, all the actions you will make to promote your business will drive traffic to your online business and end up with you selling products and services to your online costumers and making money online.
To make money you need both traffic and a large list, one marketing method is not enough, the wider your range is the more visitors you will have, ending wither more profits.
To attain your main goal, you will have to accomplish these 3 goals first. You will have to promote your internet home business, you will have to work hard, master and implement all the internet marketing methods to the benefit of growing a strong internet home business. This is not a difficult task, it is only a matter of hard work and determination and how much you desire to achieve your goals and become financially free.
Damrey
Comments Off
