|Some Things to Think About”Between The Holidays”
This year I thought I would share some thoughts “between the holidays” at the end of 2012.
This time of year, many business owners take the opportunity to both look backward over the year that is coming to a close and to look forward and make plans for the coming year. There is certainly no shortage of articles in trade magazines, blog posts or webinars on various aspects of strategic planning.
One of the topics we hope you are including in your strategic planning is the subject of exit planning. While relatively few green industry business owners are currently planning the sale of their business in the near future, the reality is that all of us must recognize that our businesses will transition to new owners at some point – through a transfer to family members, a sale to employees or a third-party sale. The only alternative is to go out of business. Each alternative requires planning to achieve the objectives that you as the business owner have. While our expectations may be that the time for a transition is out there somewhere in the future – five, ten or twenty years, the reality is that for some, the time will come much more quickly than we expect – for a whole variety of reasons. So you may not have as much time to leave your exit strategy on the backburner as you currently believe.
In the event you have a little down time now, here are some things that you can do to make a positive beginning.
One – Begin to clarify your own objectives regarding business transition. In a perfect world, how long would you want to maintain your ownership and stay active in the leadership role of your business? Do you know who you would like to transition your business to? Have you discussed your plans with them? Do you understand the likely economic impact, after taxes of a transaction?
Two – Do you understand the value of your business? Many business owners have serious misconceptions about the value of their business based on what they have heard on the street. They may have heard simple rules of thumb about business value without really understanding how these rules may be applied in their own situation. Of course, what you have heard that another business owner received for his or her business may not be accurate or the whole story. It is also sometimes difficult for a business owner to understand the value drivers of his or her business and understand how they compare to another business?
Three – Do you have a plan to improve the value of your business? That is one of the bright spots of exit planning, because the same efforts that improve the value of your business will likely make it a better, stronger business even if you have no current plans for a business transition.
Four – Do you have a plan to preserve the value of your business? In most cases, a business is the business owner’s largest asset. What would happen to your business is the event of a natural disaster? (Think Hurricane Sandy) What would happen to your business if you died or became disabled or for some reason were not able to give leadership to the business for an extended period? Are there people, inside or outside of your business that could provide leadership in your absence? Have you discussed the subject with them? Developing a disaster plan may be one of the best insurance policies you could ever buy.
Also, during this time of the year, business owners may be contemplating a more immediate transition of their businesses. Others may be contemplating a business acquisition strategy.
If you are thinking about any of these things, we would welcome the opportunity to speak with you.
Call me direct at 901-351-1510
|Preparing to Sell Your Business
New E-Book Available for Download
Preparing to Sell Your Business – A Guide for Green Industry Business Owners, a new e-book by Ron Edmonds of The Principium Group has just been published. The 30 page e-book explores both preparing yourself (as a business owner) to sell your business and preparing your business to be sold.
Preparing to Sell Your Business is available for download from The Principium Group. Click here to download it.
|Upcoming Webinar:Understanding the Value of Your Business with Ron Edmonds -January 24
You are invited to participate in a webinar on Understanding the Value of Your Business on Jan 24, 2013 at 12:00 PM CST.
In this webinar, Ron Edmonds will unravel one of the most confusing topics for many small business owners. He will explain the basics of business valuation in the green industry, including the following:
Please register for Understanding the Value of Your Business on Jan 24, 2013 12:00 PM CST at:
Lessons from The Sellability Score with Ron Edmonds – January 17
You are invited to participate in a webinar on Lessons frm The Sellability Score on Jan 17, 2013 at 12:00 PM CST.
In ths webinar, Ron Edmonds will cover lessons learned over the last year through the Sellability Score program. The research team at The Sellability Score has analyzed data from over 3,000 companies to identify important trends in business sales.
The specific focus of this webinar will be increasing your odds of receiving an offer for your business.
Click on this link to register: https://attendee.gotowebinar.com/register/8347683940272289536
|Books by Ron Edmonds
Special Sale on Books by Ron Edmonds
This offer is only available for books ordered directly from The Principium Group. For a limited time, there will be a 20% discount on each book and a 30% discount if you order all three books. Prices include shipping by First Class Mail.
Order online at
Also available for Kindle, Nook and iBooks.
Also available from Amazon.com and other online retailers.