Some owners focus on growing their profits, while others are obsessed with
sales goals. Have you ever considered making it your primary goal to set up your
business so that it can thrive and grow without you?
We are in an unprecedented era of specialization. These days there are people to help in our businesses with hiring, cleaning or doing the books. You can find someone to do almost anything to get your product out the door. In George Clooney’s 2009 movie Up in the Air, Clooney played the part of a man who travelled across the country just to fire employees. Remember when you used to do everything yourself? As your business matures, you will find yourself doing a cost/benefit analysis of every hour of your time. Consciously or not, you ask yourself, “If I do this, what am I not able to do?” or “What would it cost me to pay someone else to do this?” We make a quick evaluation of the value of our time vs. the task at hand and decide whether or not we are the best person for the job – for the skills and the cost.
Read More“What just happened?” Have you ever felt like the Coyote when the Roadrunner sped by and foiled the plan? Many of our clients who have tried to sell their businesses on their own come to us after a deal that they thought was a sure thing has fallen apart. These seasoned professionals have nurtured the deal and everything seems to be falling into place, and then, out of nowhere, the deal is off.
Read MoreHow many times have you said the words: ‘I’ll do it myself’? For most entrepreneurs, this statement has been their key to success through years of building a business. As we get older, and wiser, we can admit that there are some tasks we do well and enjoy and other tasks we can delegate to more experienced or skilled people.
Read MoreSince they hit the ground in the mid-1940’s, the Baby Boom generation has been so large and powerful that they’ve shaped our world. As consumers, entrepreneurs, policy makers and voters, the effects of this unprecedented generation will be seen for years. What does this mean for entrepreneurs?
Read MoreWhen we talk to entrepreneurs, they always have lots of war stories to tell. For most small businesses, there’s no ‘right’ path to success. Family situations, new opportunities, market changes and personal capacity all shape the future of a business and no one can predict when these factors will come into play. A common theme of these stories is entrepreneurs holding themselves responsible for not knowing. “If I had only known!”
In most cases, there are forces affecting their business that owners have absolutely no control over. This makes it critical for entrepreneurs to make proactive decisions about things that they can control. When we talk to people who are selling their businesses, they have loads of advice that they would give to younger business owners.
There’s nothing worse than waiting for the last minute to do something and then knowing you either missed the boat or got on the boat with the leak. Well, it’s often similar with entrepreneurs when they decide to sell their business. They either wait until a life event like illness or death forces them to make a decision, or fail to prepare far enough in advance of their desired departure from the company.
To help your entrepreneurial clients understand where they are on the road to selling their business, we’ve developed a checklist of sure signs that it’s time to start the process. Ideally, companies should be asking themselves the right questions as far out as 5 years from their hopeful date of sale. Start early, be prepared, and get ready for smooth sailing.
Read MoreBy Travis Kellett
The news we hear every day is grim. Sales are down. The real estate market is cooling. Large
companies are laying off workers. Governments are working on deficit budgets. Things are
tough, right?
Ready to sell? Be prepared to answer some important questions.
Selling a company means being prepared to answer tough questions from potential buyers. It's important to be confident, be prepared, and have all of your company's relevant information available to disclose. Assume that the truth would be uncovered during due diligence, and offer it freely. This will build trust and contribute to a speedier transaction.
Read More
Four Tips to Profit from the Sale of Your Business
by Bryan Popowich
As part of my business I've helped hundreds of entrepreneurs buy or sell businesses. If you're thinking of selling your business, there are a lot of things to be considered, planned for and implemented - months and even years prior to your intended target sale date.
1. Surround yourself with good advisors. I always remind entrepreneurs to surround themselves to do this, and to ensure everyone is looking out for your best interest. Make sure these advisors communicate with each other - this is key to ensuring that any transaction you complete will be smooth and efficient. There are costs to having advisors assist with your sale, but compared to the costs if things are not done properly, it's a very worthwhile investment.
Read MoreMuch like other things that are " unknown" we tend to put them on the back-burner because we're not sure how much effort, time and preparation will be necessary. Business owners are busy people.
it's a very manageable process when you look at it from a step-by-step perspective. Enlisting good help along the way can make it even easier.
Read MoreBusinesses with a long tenure in the marketplace commonly have surplus inventory over and above what is required to run the business. This can be especially true for distributors or retailers whose inventory is their number one asset. Surplus inventory really only becomes a problem when a business owner wants to sell the business.
Read MoreIf you’re looking to sell a business, it’s critical to look at the value of the business. But, a typical business really has two values. The academic value is the one determined by a professional business valuation. The other is the true market value. The academic value is arrived at with a formula based on the firms’ hard assets, cash flow, industry averages and multiples. Fair market value also takes those items into consideration, but then considers what buyers are really willing to pay.
Read MoreOften when people think of owning a business, they think of starting a business, from the ground up. Did you know that starting a business has a 50% chance of failing within the first 5 years, it will likely take twice as long, and cost twice as much as buying an existing business?
Read MoreYou've spent years, perhaps decades, growing your business into a successful operation. It may be that your business has been in the family for generations. In both cases, the notion of selling one's business can be highly emotional. It's no wonder that seller's remorse is a common reason for cancelling deals.
Read MoreBuying a business can be a complicated and daunting experience. For many people, it is typically a once-in-a-lifetime event, making it even more important that it is a favourable experience. To ensure success, Travis Kellett, Broker from Bridgepoint Business Brokers has compiled this important information for you to consider.
Read MoreBuying a business, and selling a business, are both highly emotional events. Consider that, during negotiations, both sides are experiencing some form of anxiety. This tension can have a significant effect on the likelihood of a successful deal.
Read MoreWe often see clients that are unsure about what their business is worth when they decide to sell. They approach this task similar to what one may do when pricing a home, by looking at market comparables. For example they may look at what other competitors or other businesses for sale are priced at online, or perhaps look at factors such as their own revenue growth or assets, trying to judge what the price would be for their business. Unfortunately, it's not quite this simple if you want to get the maximum fair value for your company.
Read MoreWe help people buy and sell businesses in Saskatoon, Saskachewan.
To download our Buyer Registration and Confidentiality Agreement as a PDF:
