News
It’s the Christmas season – which for a lot of us is a busy time of gift buying, wrapping, and quality time with your in-laws. However, if you have the job of Programming Manager for the Freeform Channel (what a sweet gig) – this is when you book that trip to Maui. It’s basically an auto-shuffle of “Elf”, National Lampoon’s Christmas Vacation, The Polar Express, and of course The Santa Clause franchise.
I found myself scrolling the channels last night and stumbling upon Tim Allen’s version of Saint Nick. The bowl game that was on didn’t look very interesting, so somehow I zoned out on The Santa Clause – Part 1 (which should have been the only one made in my humble opinion) But... Read More
When planning business exits, many owners overlook the possibility that they will die or become permanently incapacitated before they complete their exits. In such tragic cases, owners’ families are often left responsible for the business, whether they want it or not. This newsletter presents strategies that can help families of deceased owners handle business matters in the most difficult times.
As owners approach their business exits, one topic that’s often overlooked is unexpected death or permanent incapacitation. One reason owners gloss over this topic is because it injects an uncontrollable element into a controlled process. Many successful business owners take pride in th... Read More
You can now buy a subscription for everything from dog treats to razor blades. Music subscription services are booming as our appetite to buy tracks is replaced by our willingness to rent access to them. Starbucks now even offers coffee on subscription.
Why are so many companies leveraging the subscription business model? The obvious reason is that recurring revenue boosts your company’s value, but there are some hidden benefits to augmenting your business with a subscription offering.
Free Market Research
Finding out what your customers want is expen... Read More
For some business owners, a third-party sale is their best option for a successful business exit. Third-party sales are popular because owners often believe they can get the most money from their businesses in as little time as possible from a third-party buyer. They might be right. But what they may not consider is how little control they have over their businesses, their schedules, and even their futures once the third-party sale process begins. Consider the following case study:
After 35 years of building a successful manufacturing company, which employed about 100 people, Lemont Lemieux was ready to retire. Always a do-it-... Read More
GREENE - Dennis Hobson has owned and served as president for American Tool & Engineering Inc. in Greene for 25 years. A few years ago, he decided he'd like to someday retire.
Hobson attended a business seminar with his daughter, Sonja - who is transitioning to own the business with her brother, Matt - that started them on the path to pass the plastic molding company onto his kids.
"What you hope for is you go to one of these, and every question you have is answered. 'Oh, I've got a plan now," Hobson explains. "Well, what you do is you go to one of those and you put up this idea and this idea, and then you maybe go to another one, and..." READ MORE
It’s likely that few people, if any, have ever told you, “You need to make yourself less important,” regarding your business. But sophisticated buyers look for businesses that can operate without their owners. Unless your goal is to sell or transfer your business, and then stay with the business as a subordinate to assure a smooth transition, you’ll need to train a management staff that can run the business without you. This is the most important Value Driver you’ll install, and for many owners, it’s the hardest, because they aren’t prepared to expend the emotional and mental energy required to remove themselves from their businesses.
There are countless technical strategies to m... Read More
Many owners and advisors talk about the importance of growing business value, and there are nearly unlimited options to help business owners do just that. Wouldn’t you agree that growing business value is pointless if you don’t know how to reduce the threats to that growth? As you prepare for an eventual exit from your business, there are several threats to business value that you need to be aware of:
Key employees leaving the company and competing by taking customers, employees, and/or trade secrets. Key employees dying or otherwise leaving without a replacement. Data security breaches. Uninsured casualty loss. Fraud and embezzlement. Losses from high-risk operations. Any nu... Read MoreA fundamental aspect of a successful business exit is assuring that your business has enough value to allow you to exit with financial security. This, coupled with wisely invested non-business assets, gives you the best chance to pursue the Exit Path you want on the timeline you want. Obtaining a proper, professional business valuation is the first step in determining how much your company is worth, but what happens if the valuation shows that your business isn’t worth enough to allow you to exit your business with financial security? How can you increase your business’ value if everything that’s made it successful thus far isn’t enough?
The answer lies in installing Value Driver... Read More
Setting goals is critically important to owners who begin Exit Planning. Without goals, even the strongest processes fail, because they have no purpose to work toward. Your goals are what guide your process toward a successful exit, and without them, you’ll find yourself spinning your wheels in the mud of indecision.
While setting goals is the most important thing you do as you begin your business exit journey, it doesn’t mean that you have to know exactly where you’ll end up after you exit your business. Goals can and often must change to give you the best chance to exit your business on your terms. Business exits are rarely all-or-nothing propositions. Having the foresight to s... Read More
You know how things work in terms of starting and running a successful business. You’ve hired the right people, offered a useful product or service, and developed high-quality relationships with your customers and vendors. None of these things magically appeared out of thin air: You most likely followed a proven process, mixed in with your own creative problem solving, to build a successful business. The same adherence to process that applies to starting and running a successful business applies to a successful business exit.
Whether you’re looking to exit your business in 10 months, 10 years, or never, one fact governs them all: All business owners—even the hardest working, most... Read More