When it comes to owning a business, it’s been stated that 80-90% of our net worth is tied up in our business. Many times business owners will go out and hire an investment advisor and pay them 1% to manage small portion. Yet, we’ll look all around trying to figure out how to grow the value of your business.
We’ve all heard the old adage about assumptions. It makes an—well you get the point. Recently I was part of a meeting that included a client and his employee. While I sat back and watched the two of them dispute of minute details, I could see both of their sides. They, however could not. Which lead me to ponder assumptions and the employee’s worth.
I hear from clients every day, and many of them ask me, “Hey, Justin. Should my investment strategies change if…..” And the “if” at the end of their question could be “if I’m retiring soon.” It may be “if I’m spending a fortune on my kids’ college education.” Or more importantly in my line of business, I hear, “if I’m selling my business soon.” Well, that all depends on you, friend. It all depends…
With the volatility in today’s small-business marketplace, you may be looking at how to sell your business. You hope the transition is a smooth and profitable process. Under an ideal circumstance, selling a business is not an easy task. Lack of sale preparation, deficient or misaligned expectations can and often do conflict with market realities. No matter the industry and sector, the key to achieving your desired outcome is an efficient pre-sale planning. The most successful sellers are extremely careful. They ensure they get the pre-sale preparation right. Here are the common mistakes and how you can avoid them.
As a business owner, personal financial planning is key to getting to the next stage of life, whether that’s retirement or just a change in direction for your own personal gain. This is where you reach the point where you ask yourself, “Is my business WORTH the amount of money that I need to transition to the next phase?” Here’s the thing, when it comes to entrepreneurs, we’re audacious. We see the mountain and we start climbing. Failure just isn’t an option. We might stumble, but eventually, we will reach the peak or die trying. But when we are near leaving, this determination before we put our business up for sale can backfire on us. Cost-cutting measures to make our business look better on paper can ultimately hurt its sell-ability. How it is possible that streamlining a business could be bad?