Why Franchise

Why Franchise

Uncategorized
The following excerpt is from Rick Grossman’s book Franchise Bible. Very few people have the natural ability or expertise to be efficient at all aspects of running a successful business. That is where the franchisor’s experience comes into play. Franchise organizations offer a structure for launching, operating and growing a business. Indeed, the successful franchisor will deliver the entire framework around which the business is built. Franchisors usually create comprehensive operations manuals and training programs for their franchise owners that cover marketing, operations, accounting, technology and other areas that are specific to the particular business model. These efficiencies are designed to enable franchise owners to earn more and spend less time and effort than otherwise would be required to open and operate a similar business on their own. Collaboration The…
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Strokecast – With Bill Monroe

Strokecast – With Bill Monroe

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On January 17, 2017 I was the owner of Cape Cod's largest distribution of Free Magazines and Brochures. The business had tripled in size and we were ready to branch off into Publishing and advertising. We had just launched a successful magazine and things were going very well. That morning started like any other, 20 miles on the bike, you see I was training for Ironman. If you do not know what ironman is, it is a 140-mile race, I linked to Ironman Triathlon for you. I went to the office, sent out marketing emails, confirmed shipments for the upcoming week, roughly 30 pallets of magazines were coming in, and I went to pick up magazines, and meet some customers. All in a day's work. That night I was going…
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Carl Allen Podcast on Sales Whisperer

Carl Allen Podcast on Sales Whisperer

Business Broker Benefits and Selection, Buyer, Deal Structure, Preparing to Sell Your Business
I listened to this Podcast with Carl Allen on https://www.thesaleswhisperer.com/blog/carl-allen-entrepreneur hosted by Wes Schaeffer. As always I enjoy Podcasts and conversations about buying and selling businesses. Some of this Podcast is great, and one all business owners should listen too and the reason I am recommending is that he is going to give you some rather harsh reality of selling your business. This Podcast was telling buyers how to take advantage of people selling their business. Reference point 1 – Carl Allen quotes a statistic there are 20 million business in North America and at any point, 2 Million are for sale, he claims roughly 1 in 13 sells. Wither it is higher or lower is always debatable, I would say he is drumming home the point though, most businesses…
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Tom Hannon – Featured On Built To Sell

Tom Hannon – Featured On Built To Sell

Advisors, Buyer, Deal Book, Deal Structure, Due Diligence, Factors Affecting Business Saleability, Preparing to Sell Your Business, Sale Process, Tax Implications of Selling a Business, Transition, Valuation, Why Sell
From the Built to Sell Podcast Description of the Show - Tom Hannon started FPD to create and distribute niche publications. He grew the company to $3M in revenue over 18 months, when a family illness prompted him to reach out to acquirers. His company was valued at $2.1M and received four offers, but he ended up walking away with $1.5M. Hannon candidly shares why he left money on the table, and what he would do differently if he had a re-do. In this episode, you’ll learn: • One trick the acquirer played on Hannon that dramatically devalued his business • How Hannon used a third-party valuation to keep the price as firm as possible • When not to overplay your hand in a negotiation with an acquirer One reason…
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Quickbooks can be a game changing program

Quickbooks can be a game changing program

Financials, Increase Your Business Value, Preparing to Sell Your Business
Entrepreneurs sometimes are their own worst enemies. This is a lesson I had to learn more than once until it clicked in. I was running this small business and I used Paychex as my payroll company, a checkbook, credit cards and handwritten faxed or mailed invoices. My financial life was co-mingled between business and personal. To me as long as I had enough in the checkbook life was good. We had just left a short partnership and making payroll was almost impossible. Although I heard of QuickBooks, I have not at the point of valuing what it could do for me. After a few months, it became clear I needed to grow if I was going to sustain the business. I was making a good enough living, and I was…
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Increase the Valuation even when company stops growing 

Increase the Valuation even when company stops growing 

Strategy, Valuation
Why would two companies in the same industry, with the same financial performance, command a vastly different valuation? The answer often comes down to how much each business is likely to grow in the future. The problem is that a lot of successful businesses reach a point where their growth starts to slow as the company matures. In fact, the price of doing a great job carving out a unique niche is that the specialty that made you successful can start to hold you back. If you make the world’s greatest $5,000 wine fridge, you may have a successful, profitable business until you run out of people willing to spend $5,000 to keep their wine cool. Demonstrating how your business is likely to grow in the future is one of…
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Your birth certificate and your exit plan

Your birth certificate and your exit plan

Strategy, Why Sell
In our experience, your age has a big effect on your attitude towards your business and how you feel about one day getting out and your exit plan. Here's what we have found: Business owners between 25 and 46 years old Twenty- and thirty-something business owners grew up in an age where job security did not exist. They watched as their parents got downsized or packaged off into early retirement, and that caused a somewhat jaded attitude towards the role of a business in society. Business owners in their 20’s and 30’s generally see their companies as means to an end and most expect to sell in the next five to ten years. Similar to their employed classmates who have a new job every three to five years; business owners…
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Danger of market timing the sale of your business

Danger of market timing the sale of your business

Deal Structure, Sale Process, Strategy
The other day I was speaking with a successful CEO in his fifties who runs a heating and air conditioning company generating eight million dollars in revenue and over one million dollars in profit before tax. Even though he was tired and nearing burnout, he was planning to wait another five to seven years before selling his business because he “wanted to sell at the peak of the next economic cycle.” On the surface, his rationale seems to make sense. If you speak with mergers and acquisitions professionals, they’ll tell you that an economic cycle can impact valuations by up to “two turns,” which means that a business selling for five times earnings at the peak of an economic cycle may go for as low as three times earnings at…
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The C-word and 7 Other Words to Avoid at Work

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The majority of businesses in the U.K. started out as service companies.   If you want to own a web design firm, you don’t need a lot of money, just a technical knack. Enterprising professionals who know how to get the media’s attention can start their own public relations firms without much more than a mobile phone. No capital required.   But if you want to build a valuable company – one you can sell – you’ll want to stop presenting yourself as a service firm. Consultancies are not usually valuable businesses, because acquirers generally view them as a collection of people who peddle their time on a hamster wheel. The typical way to sell a consultancy is for the consultants themselves to trade their equity for a job, in…
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Is Now the Time To Sell Your Business?

Is Now the Time To Sell Your Business?

Deal Structure, Exit Planning and Its Benefits, Sale Process, Uncategorized
Have you been thinking about selling your business but just can’t decide if now is the best time?  Do you find yourself repeatedly analyzing the economic situation and wishing you had a crystal ball? There are positive signs and there are negative signs…. If you’re still up in the air and can’t quite decide whether or not to hit the eject button, here are five reasons you might want to consider getting out now. You’re less interested in fighting the good fight A lot of business owners took the Great Recession in the teeth. If you’ve got your business stabilized and the prospect of possibly having to fight through another recession leaves you panic-stricken, it could be time for you to get out. 2. The worst is behind you Let’s…
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