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As a business owner, you know what it’s like to lie awake at 2 a.m. Maybe it has happened when you are excited and full of new ideas for your business. More often, it’s because you are worried about issues you will face the next day. Sometimes, it’s because you just woke up with the solution to a problem. I’ve experienced all those emotions about my businesses over the years. Awake at 2 o’clock? is where I share them with you, and hopefully help with answers that will let you sleep.
John F. Dini, CExP, CEPA
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Small business owners are the Hunters of the 21st century. We are 3% of the US population, and yet we create over half of all American jobs. As Hunters, we may not be inclined to manage by the numbers or stick to systems. Are you a Hunter or a Farmer?
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How prepared are you to exit your company?
The Assessment breaks down the four major categories of exit readiness; Finance, Planning, Operations and Revenue/Profit.
Tag Archives: exit planning
What is Your Company Worth?
A business owner hires a financial planner to help him with his retirement options. They review the owner’s current assets, his house, stock portfolio and other investments. They go over his insurance coverage. Then the planner asks, “What about your company? How … Continue reading
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Ready…Set…Exit! Part II
Last week we discussed the tsunami of Baby Boomer retirement, and how we will reach a peak of nearly 500 unsold businesses a day within the next 5 years. The statistics are immutable. The birthrates of the last century are … Continue reading
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Can Franchising Survive The Baby Boomers?
As a consultant to business owners, this is a column I’ve hesitated to write for a long time. There are over 800,000 franchised businesses in the United States, and I’m not going out of my way to make that many owners mad … Continue reading
One Response to Can Franchising Survive The Baby Boomers?
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Small Business and BIG Taxes – Timing is Everything
This column typically focuses on the issues of running a business, especially those that revolve around leading employees and growing profits. When I am consulting on issues that include tax planning, I am supposed to include a “Circular 230 Disclaimer”, … Continue reading
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Business Value: Do Your Numbers Add Up?
Most small business owners don’t understand how to value their companies. For some, misunderstanding the way that buyers look at the value of your business can be very costly in the long run. The fourth of our Rights and Obligations … Continue reading
3 Responses to Business Value: Do Your Numbers Add Up?
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Jon,
Where can i find more on SDE evaluation?Jeff
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Jeff,
Pratt’s Stats, among others, will show historical and conparative valuations using SDE measures. To calculate your own SDE, I am sending a worksheet I created directly to you.
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John,
I agree that most business owners take advantage of personal perks while running the business and I think most buyers realize that. When it comes to selling the business I have business owners recast their financials to deduct their perks and add back in a salary for the new owner. It reflects the true value of the company and the buyer can make their decision based on the recast numbers without the tax burden for the owner for the previous three years.
Larry Amon
This is a WAKE UP CALL. I had never thought about the vulnerability of the franchise industry to the demise of the boomer generation. I have to sit back and think about this. My focus has been on the impact that the boomers will have on the succession plans for independent financial planners, wealth manager and insurance agents. Just like your food and hotel franchise examples, these individuals poured their lives into building profitable practices and it is unlikely that the next generation has the motivation to continue the growth of the industry. For more than a year we have been in conversations with large corporations that provide regulatory compliance and package insurance products to support these aging entrepreneurs. The companies are finally recognizing the imapact of the loss of their top producers. I will use this franchise analogy to paint the picture for them. Thank you.