Tip #54 – Does Your Business Look Good On Paper?
With few exceptions, buyers are looking for businesses that make money.
Sure, there are other factors that can make a difference such as equipment, client list, location, key employees, etc., but it is still all about the cash flow of the company.
Business owners have to constantly look at the company financials and make the tough decisions to increase margins, cut expenses, or even head in a different direction. Showing good, solid cash flow will ultimately determine the value of the company.
Tip #43 – We Know What To Do, We Just Don’t Do What We Know!
We all hear a lot about what we SHOULD BE DOING from consultants, advisors, business coaches — even our spouses. But for whatever reason, we don’t always do what is best for us.
Business owners’ careful planning for leaving their business is crucial to getting top dollar or smoothly passing it on to a relative. The Exit Planning process can take years and it is wise to seek professional advice in identifying the important issues and taking the right steps.
Read the article on “Why […]
Tip #42 – Maintaining Good Cash Flow Can Mean Lots Of Offers.
The best way to receive top dollar for a business is by showing good cash flow over the years preceding placing the company on the market.
That means business owners have to be good planners, smart managers and pay attention to details. They need to have ongoing marketing plans in place to keep sales growing and to keep control of expenses.
It is often a good idea for business owners to work with advisors such as business brokers, financial planners and accountants in the planning process to […]
Tip #33 – Minimizing Income Taxes – Short Term Strategy Or Long Term Mistake?
Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income. But this can be misguided planning for trying to get top dollar when selling the company.
Business owners need to realize that valuation is usually determined by a multiple of profits, or identifiable cash flow, and that banks make acquisition loans based on tax return results.
Reducing taxes can be a good short term strategy, but it might not pay off at the end!