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4 Main ‘PAINS’ Experienced By A Business Owner

All Business Owners Have PAIN’s.   Which one’s do you have?

 For the past 27+ years I have worked for, with or coached business owners / leaders. I recognize that each and every business is different and unique.  The clients I have served range from the single real estate agent to the Executives of a 2000 FTE  manufacturing firm.  Often, our efforts surround finding ways to increase efficiency, reduce time investment on projects or provide new and timely information have been the focused solutions.   This is apparent that they have PAINs that they would like to have eliminated from their lives.
We have recently began a partnership with Lead Forensics, a new and innovative technology solution that can provide real time solutions to many of the challenges clients have experienced.  Lead Forensics is the software that reveals the identity of your anonymous website traffic, and turns them into actionable sales leads.   This tool, can in real-time help to address those 4 pains.
Those 4 PAIN’s are… TIME, TEAM, MONEY and EXIT
time tredmillTIME – the amount of time being invested in the business has taken the owner ‘out of balance’.  Some of the key indicators of business owners with this pain are…
  • The business owner / leader is working 60+ hours a week
  • They will say things like…”my customers come to my business because of me and what I do”; or “if I wasn’t here, my customers would go somewhere else”
  • the owner is having family relationship troubles with spouse and / or children.
  • Health issues are surfacing with the owner – lack of sleep, anxiety, head aches, etc.
  • So much time is being spent cold-calling for prospective clients, with so few results.
TEAM – as a business grows, the only way to scale and grow consistently is to add employees.  But, because you are a good (add any product/service provider here), doesn’t make the owner a good ‘leader’.  Some of things we will hear when this is the pain is…
  • No matter who they hire, no one seems willing to follow directions
  • The person interviewed seems to be different that the person hired after a few weeks
  • When the owner’s not there, nothing ever gets done
  • No one has the same work-ethic as the owner does
  • The owner struggles to find sales and marketing people that can open doors and build relationships with our prospects.
9881157_sMONEY – this can be looked at as revenue, gross profit, net profit, cash-flow or finding the money to buy equipment, expand your facility or to fund a growth plan.  The things you will hear from the owners/leaders with this pain sound like…
  • There is never enough money in the checking account at the end of the month
  • Although we’re busier than we’ve ever been, the check book doesn’t show it
  • By the time I pay all the bills and my employees, there is nothing left for me.
  • I have opportunities to grow the business, but need money to invest and cant get it from the bank.
  • Marketing and Advertising in today’s marketplace is constantly changing.  We don’t seem to be getting a ROI on our investment.
EXIT – this pain is most common for business owners that are in their 50’s+.  They are seeing the potential of retirement, but have just realized that their biggest asset is their business.  You will hear them say things like…
  • How much is my business worth?
  • Who would be interested in buying my business? and how will I make that happen?
  • I’d like to retire, but who will run the business if I’m not here?
  • How do I convert the business I’ve built into cash for my retirement?
  • Making sure that we have a proven system for generating qualified leads will increase the value of my company… now I just need to figure out how to do that.
Advanced Business Coaching offers the principals, practices, tools and techniques to our clients to address all these PAINs.  We recognize that each of our clients are unique and special.   We customize the potential solutions to meet their particular situation and  their prioritized goals.
Over the next few weeks, we will look into each of these ‘PAINs’ in depth and share some potential solutions that have worked for our clients that asked us to help them overcome and remove these “PAINs’ from their lives.
If you’d like to learn more about ways you can remove one, or all of these PAIN’s from your business, contact Michael Stelter @ Advanced Business Coaching at 262.293.3166.  or you can email Michael at Michael@ABCBizCoach.com

You Need To Know These 5 Things You Can’t Control When You Want To Sell Your Business

exitYou Don’t Have 100% Control Of All The Things

That Will Impact The Sale Of Your Business

We often hear business owners state the specific year when they will sell their business, such as “I will sell the business next year,” or “I will sell the business in the year 20XX….”

While it is good to have specific goals, when selling a business the outside world plays a surprisingly large role in determining how many potential buyers may be interested, and the price and terms you may ultimately receive. Selling your business for the maximum value involves careful timing.

There are five external factors nobody can control, but any or all of them may play a significant impact on your success at sale:

1. The Availability of Financing. When money is tight and buyers lack access to cash at attractive rates, generally this depresses business prices. For example the graphic below from the U.S. Federal Reserve Bank* shows the surge in banks tightening their commercial and industrial (C&I) lending standards in the midst of the recent US “Great Recession.”

2. The Overall Economy. When the overall economy is strong, business sales prices generally rise. In the reverse, during a weak economy business sales prices tend to fall. A rising tide lifts all boats, and a falling tide lowers all boats. The chart below shows median EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples paid for U.S. companies purchased over approximately the last ten years.** As the economy has cycled through recessions and expansions, the chart shows median multiples have changed by 25% between highs and lows. 

3. Your Geographic Region or Country. In many cases, different regions of the country (and different regions of the world if your business operates internationally) will be growing at different rates. If your area is experiencing difficult economic conditions relative to other locations, than can reduce your business sale price. Of course the reverse can be true as well, raising a business’s sale price.

4. Your Specific Industry. Industries go through hot and cool spells, where demand for businesses in that industry will rise and fall. These cycles can greatly raise or lower business sale prices and favorable terms.

5. Tax Policy. Known or anticipated changes to relevant tax rates can impact business sale prices, both gross and net. For example, several years ago in the U.S. federal long term capital gains tax rates increased by about 20% for most taxpayers, a change everybody knew was coming. We witnessed multiple business owner clients sell their businesses earlier than planned, before the tax rates increased.

All five of these external factors change with time, sometimes quickly. To sell the business for the top price, owners need to build timing flexibility into their exit planning, and carefully monitor these outside factors. Owners also must start seriously planning their exit years prior to the actual event. An owner who wishes to exit anytime within the next five years or less needs to realize that it’s crunch time.

When you sell your business is not likely to be determined by the year you choose, but rather by whenever a willing buyer shows up with a price and terms that you are willing to accept.

We’d like to offer you the NO COST opportunity for You to get your “Value Builder Score”.  This is a score from 1-100.  Your Value-Builder Score is calculated through an analysis of your businesses performance on eight attributes proven to be important to acquiring companies when evaluating a business as a potential acquisition target.

If you haven’t gotten your copy of the FREE REPORT… “12 Fatal Mistakes You Can Make When Transitioning Your Business”

If you would like learn more about how you can plan for a successful sale of your business, call Coach Michael Stelter at Advanced Business Coaching, Inc. (262) 293.3166.

Are You A “Baby-Boomer Business Owner”? If YES – You Need To Read This…

What do all these changes mean?

There is a way to successfully Exit your business and get to retirement.

If you were born between 1946 and 1964, and you currently own a business, this information is intended for you

I’m part of the Baby-Boomer generation.   Many owners of small businesses are, too.    Over the past 25 years, many of my clients have been part of this generation, and we’re now starting to think about retirement.

But, like many things in business, thinking about something and making it happen, are two completely different things.  Establishing a plan to Exit the business is one of the most important things you can do for yourself, your family, your employees and your business.

A successful plan takes time,  effort and energy.  But – it can happen and you can find the right path to your dream retirement.

Some key numbers you should know…

  • 14% of business owners plan to fund their retirement with their business
  • 19% of business owners plan to draw an income from their business
  • 59% of business owners think they will achieve most of their retirement income by saving current earnings
  • 40% of business owners don’t save at all
  • Of all the businesses that go up for sale, less than 10% ever sell.

 As the owner of your business, you need to take control and leave on your terms.  To do that, we suggest you consider the following…

  1. START NOW – Exit planning can be complicated and take time. Assemble  your team now
  2. CLARIFY YOUR GOALS – Share your dreams with your exit planning team.
  3. BUILD YOUR PLAN –Work with people that know the process There is much to consider
  4. MANAGE YOUR RISK – A strong plan should account for all the things that could derail the plan.  Protect yourself, your family and your business.
  5. VALUE YOUR BUSINESS – Find the right valuation formula for you.  Your exit planning team can help
  6. REVIEW YOUR PLAN – The only constant is change.  Review your plan yearly to identify any changes

Get your copy of the FREE REPORT… “12 Fatal Mistakes You Can Make When Transitioning Your Business”

I wish you all the insight and wisdom need to set your plans in place.  Until next week.

Health, Happiness and Abundance

Michael Stelter

Advanced Business Coaching, Inc.

“We help entrepreneurs leave their businesses with health, sanity and fair compensation for what they’ve created”

Watch the video and download your Free Report to learn how we can help!

Michael@ABCBizCoach.com

262.293.3166

Is Retirement From Your Business Really An Option?

exit-strategy

Exiting A Business Is Not Something That Happens Without A Plan

IS RETIREMENT REALLY AN OPTION?

If you’re the owner of a business with less than 50 employees, you may not be sure of the answer, but the short answer is YES. 

It will take time, it will not all be easy or simple and will take some planning, but it is absolutely possible.

You’ve built the business.  You’ve put your blood, sweat and tears into its planning and growth.   You’ve given it your all; invested in inventory, hired and trained your family and others as employees and bent over backwards to serve your customers.

There have been times that you really love the business… helping your customers, supporting your employees and growing your, then there’s the other times that left you frustrated, alone and not knowing if you could go forward.

For all the plans that you’ve made, all the ‘To-Do’s’ put on a list, all the projections and conversations asking ‘what-if…’,it was all to avoid problems, grow sales, increase your customer base and improve profitability.  Never did you take any time to plan for your EXIT or how you were going to truly transition the business to your family member or Key Employee.

Its not that planning for this part of your future wasn’t important – because you know it is, its just that there were other priorities and your time was better spent on something else that was a more important.

But now – here you are.  You have a profitable business and you’d like to know that there is really going to be an opportunity to have your business really provide you the retirement that you’ve talked about, but probably haven’t planned because you were really sure it could happen.

One of the first things you can do is allow yourself to dream.  Often our dreams take a subordinate position to other things in our lives and, for some, the process of ‘DREAMING’ can create a wide range of emotions… like fear, frustration, excitement and even embarrassment (because they don’t believe they deserve to DREAM).  Let yourself go and imagine what your life ‘could’ look like AFTER you leave the business.

Pick a date for you to retire.  Choose a specific date and year that you will be out of the business.  Make sure its at least 3 years away.  But you should know that selecting a date can create some anxiety.  Don’t worry, you can always change the date, but there is magic in the exercise of selecting a date and putting it down on paper.  If you really want to feel a rush of emotions… try sharing the date with your spouse, children and grand-children.  The most common immediate emotions experience are happiness and excitement, but then the questions start coming… How are we going to do this?, Where are we going to retire?, and many, many others.  But don’t worry – we’ll get them all answered.

Get your copy of the FREE REPORT… “12 Fatal Mistakes You Can Make When Transitioning Your Business”

I wish you all the insight and wisdom need to set your plans in place.  Until next week.

Health, Happiness and Abundance

Michael Stelter

Advanced Business Coaching, Inc.

“We help entrepreneurs leave their businesses with health, sanity and fair compensation for what they’ve created”

Watch the video and download your Free Report to learn how we can help!

Michael@ABCBizCoach.com

262.293.3166

Do you want to plan an exit from your business?

Business, Exit, Transition, Planning

Exit/ Transition Plan for Your Business

Is Exit / Transition Planning For You?

The information be shared is intended for a singular group of entrepreneurs Business Owners of companies with less than 50 employees.   There are many around us and they are a special group of people that we’ve had that privilege to work with and help through these past 25 years.

 

 

 

Do these things describe you?…

  • The owner/part-owner of a closely held business with less than 50 employees.
  • You want to exit your business over the next 3-10 years.
  • You’re part of the baby-boomer generation born between 1946 and 1964.
  • You’re not sure, but think you’d like to transition the business to a family member(s) or Key employees that have expressed interest in being ‘the owner’.
  • You know the business is worth something, but not sure how much?
  • You have no idea how to get the money out of the business and into your hands so that you can use it for your ‘golden years’
  • You’d like to business to continue to grow.  So you can leave a legacy and ensure that your employees and customers will be well cared for in the future.
  • You’d like to have a retirement that will allow you to be away from the business and have the confidence that it will be management well and continue to grow.

If the points above don’t describe you, or the situations/emotions you’ve found yourself, then the information we will be sharing is not for you.    You may be a the C-Suite executive of a bigger company, or a branch manager of a larger operation, an independent contractor, a real estate or insurance sales person, independent financial planner or a solo-entrepreneur with no employees.  All of these are wonderful accomplishments and your achievements are legitimate and should be honored, but the information we will be sharing will have very little impact on your current situation.

But, If the bullet points above resonate with you and you’ve experienced the things that create the special environment of the small business owner, then read on and we look forward to sharing this journey with you.

If you haven’t gotten your copy of the FREE REPORT… “12 Fatal Mistakes You Can Make When Transitioning Your Business”

I wish you all the insight and wisdom need to set your plans in place.  Until next week.

Health, Happiness and Abundance

Michael Stelter

Advanced Business Coaching, Inc.

“We help entrepreneurs leave their businesses with health, sanity and fair compensation for what they’ve created”

Watch the video and download your Free Report to learn how we can help!

Michael@ABCBizCoach.com

262.293.3166