Selling your business is a major step many business owners take when they are ready to retire. When the question, “Are you ready to sell your business?” comes up though it can send a business owner into panic mode. The truth is no one really knows if they are ready in that sense. What am I getting at? Well most of the time, people assume being ready is making the decision to sell your business. In reality, being ready to sell isn’t the readiness of whether you want to sell it; readiness is a state of fact. In other words, do the facts and figures indicate you are ready to sell your business? It is not a state of mind. It’s important to drive this point home so that you truly understand how to answer the question when you hear it. When dealing with readiness, there are two ways to look at it. The first one deals with the owner. Are they personally ready? (Remember we are not talking about a mentality. We are dealing with a physical state.) The second way to assess readiness is to know whether the business is fiscally ready. Let’s dive in and explore each […]
If you own a business then you know how hard it can be to hire the perfect candidate for every job. So exactly how do you position your company’s team for maximum productivity? One theory is do so based on personality profiles. Recently I came across a study done by Kenneth J. Sanginario, the founder, and president of Corporate Value Matrics, LLC. In this study, he uses the DISC principle. The DISC principle is a behavioral assessment tool based on the theory of William Marston. The principle centers around four different behavioral traits: the dominant individual who loves to sit in the driver’s seat; the influencer who is an extrovert, a people person; the steady individual who is supportive to those around them; then finally compliant individual, they’re very much rule-oriented, yet non-assertive individuals. Basically what the principle tries to explain is that all individuals demonstrate certain traits. For instance, I am a dominant influencer. Those are my two main behavioral traits. On the other hand, my business partner is a compliant supporter. So, we work hand in hand together for the success of our business. My wife is also a compliant supporter, which helps us work in unison. Now, […]
If you’ve never heard of exit planning, you are probably asking, what is exit planning? Chris Schneider, the President, and CEO of Exit Planning Institute coined the definition of Exit Planning like this. In a nutshell, an exit plan asks and answers all the business, personal, financial, legal and tax questions involved in transferring or transitioning a privately owned business. So, when dealing with exit planning, we focus on moving a privately owned business from one owner to potentially another owner. You may think, why do I need an exit plan? Maybe you’re thinking of leaving your business to the next generation. Maybe you want to work until you can’t anymore. No matter how you want to do it, the fact is you won’t own your business forever. That means you need an exit plan. Here’s why. According to statistics from the Exit Planning Institute, the premier institution on exit planning, the average business owner has about 80% of their net worth tied up in their business. That’s a good chunk of net worth bound up in one asset, which could be a bad thing. A business owner is often focused on many areas. This is where an exit planner […]
Pay Yourself First No Matter What As a business owner, you’re often working hard to cover all the expenses of the business. Whatever those expenses are, don’t forget to pay yourself first no matter what!