Monday, July 12, 2010

Things to Avoid When Selling Your Business

You have run your business for a number of years and it is now time to sell. There are a lot of potholes you need to avoid when selling your business.


Asking Too Much Money with No Reasonable Rationale for the Price

Typically, the business has been the seller's life for years and the seller thinks it is a diamond in the rough. However, the price boils down to the the business valued as an investment. The business is simply a machine that makes money. The more money that it makes now, (not into the future, that is the buyer's responsibility), the more it is worth to another party.

The price of your business business is not what you owe, what you think the possible profitability will be in the distant future, or how much money you need for a comfortable retirement. The price is what the open market says it is worth today.

Not Seeing the Business Through the Eyes of the Buyer

Although it is tempting to look at one's own business in only the most favorable light, it is very important to recognize the deficiencies of the business, and address them, in order to alleviate any buyer concerns.

Insisting on an All Cash Deal

Unless you have been living under a rock, you know that banks have been very reluctant to lend to small businesses lately. In the current environment, if the business is to sell at all, the seller will probably have to finance a portion of the deal.

Giving Up Running the Business After the Business is Put Up For Sale

During the sales process, you need to run your business as if you were never going to sell it. It may take months to sell and in the meantime if you fall asleep at the wheel, your business could end up in the ditch. This inattention could result in a lower price or keep your business from selling at all.

Waiting Too Long to Sell

Too may owners wait until the last minute to decide to sell their business. Owners wait until the business is down, or they are completely burned out, or their partnership has soured completely. The time to sell is BEFORE emergencies happen - when the business is still good. The old adage is: a business owner should think about and plan the eventual sale immediately after the business is started or purchased.

Seller Not Pre-qualifying a Potential Buyer

Dealing with 'tire kickers' who have no ability to purchase your business is a complete waste of your time. It is a good idea to know the general financial position of the potential buyer before you show them your books and enter into negotiations.

Failure to Sign a Confidentiality Agreement with the Potential Buyer

You will be opening up your books to a buyer and you don't want to have them spreading confidential information about your business all over town. This breach of confidential information could cause some of the following: your customers finding out and go somewhere else; problems with your suppliers; and key employees getting nervous and taking a job with your competitor. All of these factors could lower the price you receive for your business or keep it from selling at all.

Thursday, June 17, 2010

How to Hire a Web Designer



All right, admit it. You are not 17 years old. You may have a working knowledge of the web and have a gut feel of what your web site should look like. However, you have no clue about how to get it to the way you envision it. Does this sound like you?

If you are of a certain age, it may be down right daunting. Who do you choose to design your site: your 17 year old nephew that can do it for a couple hundred bucks; a friend that does it as a way making extra money on the side, when he can get around to it; or a team of true professionals? The correct answer is, It depends! Like any of your marketing endeavors, it boils down to who you target market is and how much you have to spend.

Like using a CPA or an attorney, this activity may be one of those things you may have to leave to the professionals. There are software packages available that allow you to do it yourself. However, the end results are generally pretty amateurish.

Your website is going to be your salesman to the world. What image do you want to send to your current and potential customers? If you want to present a professional images showing competence and implying that you are worth every dime you are going to charge, it needs to be done professionally.

Hopefully, the following links will give you some insight as to what to ask when choosing a web designer.




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Wednesday, June 2, 2010

Want to Know What Your Customers Think? Use Your Ears!

If you are like me, you are constantly bombarded by surveys of various sorts, particularly the electronic kind. At first, when this type of technology became available, they were quite handy.


However, a lot of these surveys have been overdone. They are losing their power because people are ignoring them out of 'survey fatigue.'


Some of the best marketing information you will ever get is procured by simply asking your customers "what do you like about this?' or "what don't you like about that?" Pay attention to what your customers say. These people and their preferences are keeping you in business.


For more information on how surveys should be taken and how to go through the clutter of this survey epidemic, please see the following link from Forbes: http://www.forbes.com/2010/02/08/customers-data-software-technology-business-intelligence-survey.html?feed=rss_home

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Wednesday, May 12, 2010

Cash Is King

When you are out of cash, you are out of business. It doesn't matter if your profits are great if you cannot convert those profits into cash. We regularly see businesses making a very good profit on paper go bankrupt because they do not have the cash to pay their bills.

If you can't pay your power bill or payroll today, it doesn't matter how profitable your business is or will be in the future. Unless you have the cash, you are out of business!

You must be proactive. It is your money, after all. Know how much is owed to you and don't be afraid to go after it.

The following are a couple of articles on cash flow management that you may find interesting:

http://www.inc.com/resources/finance/articles/20050601/cashcrisis.html

http://www.inc.com/resources/finance/articles/20040901/10rules.html
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Monday, May 10, 2010

What Can the Small Business Development Center Do for You and Your Business? Part 2


We have had another client put something up on YouTube and thought you would like to see it. If we can be of any assistance to you or your business, please feel free to call.


The following YouTube video is from Terry Harris, owner and founder of Rubber Wholesalers. We have been working with him and his business for years. We hope we have contributed, in a small way, to his continuing success. Thanks Terry for the nice things you said!

http://www.youtube.com/watch?v=J7rNpDwah-U

Thursday, April 8, 2010

Federal Debt and Deficit

The national debt and annual budget deficit are both exploding. Its effect on the economy on Main Street is starting to be felt by everyone of us.

I was sent this link a few weeks ago that calculates the debt and deficit figures (in real time) and thought you would like to see it.

Along with the debt and deficit, it calculates, based on Federal Reserve Data, the value of all assets owned by the citizens of the United States (Small Business, Corporate and Personal Assets). About $234,000 per citizen. It compares it to the total US governmental unfunded liabilities (Social Security, Prescription Drug and Medicare Liabilities) which comes out to about $305,000 per citizen.

If this was a client and not our Federal Government, I would advise the client to find a very good bankruptcy attorney, quickly!

It is more than a little scary!

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Thursday, April 1, 2010

What Can the Small Business Development Center Do for You and Your Business?

We at the University of Georgia's Small Business Development Center spend our time assisting businesses in Northwest Georgia and not blowing our own horn. As it turns out, we don't have to.

I ran across this from one of our clients, Scott Lavelle with Niche Graphic Flooring in Rocky Face, GA, who was kind enough to post this video on YouTube. It gives you a very good idea about what we can do for your business. Thanks Scott !!

http://www.youtube.com/watch?v=2OGguF2x9DU
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