One thing is certain when you start a business--you will exit it. Your exit may be voluntary or involuntarily, well-planned and executed or a fire-sale to try and avoid disaster. This implies that if you follow a proper path, you might be able to make it a very successful exit for yourself and everyone involved. It also implies that it could go miserably wrong.
Most Popular Blog Posts of 2010
Succession planning can be a little overwhelming to the business owner. "No one can do it as good as me", is often the mindset of entrepreneurs and getting past that mindset can be difficult. But as your business grows, you have to be able to continue to delegate responsibilities to capable team members and let them grow and develop, even if you could do it better yourself. One of the first things a business owner must learn how to do for succession purposes is to delegate.
I remember a discussion with a business owner that I worked with and he said, "When the company was small, I could
In every one of my initial meetings with potential clients, I always ask the question, “Do you have an exit strategy?” Sometimes business owners do, and other times, they have never even thought about the possibility of exiting the business. Regardless of the business, there will be an exit. Some of the potential exits are: Selling the company, passing the company on to your children, closing down the company, or the unthinkable, death of the owner.
I recently read John Warrillow's book Built to Sell: Turn Your Business Into One You Can Sell. It is a great resource for anyone that is building a business that they plan to exit by selling it. The book focuses on 8 steps for helping business owners maximize the value of their businesses when they sell.
Business partnerships are one of the most unique and trying relationships we will ever enter. Some work, but most fail. I did a quick test. I searched Google for "business partner problems" and found about 169 million results. Compared to only 143 million results for what I assumed would be the more common term of "business partner," I think it is clear that many struggl
The following is a real situation with names and details altered for anonymity.
The business is struggling and the owner, who is not actively involved in the day-to-day management of the business, wants to get out of the business. He would like to sell the business, but valuations have come down and he wonders if he can get more cash from just closing the business and pocketing whatever cash is left.
Although some of t
Here is a real situation that has a partnership of four up-in-arms:
Each partner owns 25% of the business. Three of the four partners have stellar credit and decent net worth. The fourth partner had a bankruptcy 4 years ago and does not have much net worth, other than the value of the business, to speak of.
The company has a customer present an opportunity to them to double their business in 12 months. The catch - they will need to buy over $1,000,000 of equipment to capitalize on the lucrative opportunity. Even though the credit markets are tough, this company is able to s
If you want to sell your business, seller-financing has become an even more common requirement.
Discounted Cash Flow? But what multiple or discount rate should we use? Inc.com wrote about a new website aimed at removing some of the mystery from this age-old question. The topic of the article is a company called You Noodle, Inc, and their website. They offer a Start-Up Predictor that guesses the value of your start-up three years into the future. I took the test and got a valuation much higher than I expected.