Tip #91 – Does The Company Have A Customer Concentration Issue?

Losing Our Biggest CustomerIn many types of businesses, “customer concentration” can be a real concern, with a few big customers that make up a substantial portion of the company’s revenues.

Buyers, of course, are concerned that if any of those big customers leave after the sale closes, the Buyer is not getting the company’s present value.

If a company has too much customer concentration, business Seller needs to try to diversify the customer base or be willing to accept a flexible method of payment […]

2017-01-10T15:28:42-07:00January 10th, 2017|Maximizing Business Value|

Tip #90 – Clean Up The Financials!

Clean FinancialsBusiness owners can manage their financials as they wish – within standard accounting principles. But when it comes time to sell their company, it becomes a whole new ball game.

Buyers and lenders will scrutinize everything, especially questionable items on the financials. If there are items that do not make sense to outsiders, it can affect the value and the pricing of the business.

It is a good idea to have a professional such as a mergers & acquisitions advisor or a business […]

2016-11-08T08:52:11-07:00November 8th, 2016|Maximizing Business Value|

Tip #89 – The Owner Of The Business May Not Be Ready To Retire

Business Needs A New OwnerMany older business owners, for whatever reason, aren’t willing to sell their companies.

But businesses can go into decline without new ideas, new direction, and new energy. Not selling the company can be risky. Too many things can go wrong as the owner continues to age — health issues, health issues of spouse, or the business can’t keep up with the times.

It can be a tough decision, but timing is everything, and waiting too long to sell may have […]

2016-11-08T08:49:04-07:00November 8th, 2016|Maximizing Business Value|

Tip #88 – Explore New Worlds To Increase Revenues Of The Business

Exploring New OpportunitiesA company that is growing will get greater attention from buyers and show higher value.

Business owners have to be creative in finding new ways to increase their sales. That could mean researching on the internet, going to trade shows or conferences or traveling to other markets to find what is working out there.

Options can include new products or services, new ways of marketing, new technologies, new locations or even acquiring other companies.


2016-09-08T10:10:19-07:00September 8th, 2016|Maximizing Business Value|

Tip #56 – Health Issues Can’t Be Ignored!

Health Issues Can't Be Ignored!One of the saddest and most difficult situations for a business is when the owner becomes too ill to effectively manage the business.

Unfortunately, because many owners haven’t done proper planning, they try to continue to run their business while coping with their illness.  The owner suffers and the business suffers.

If a business owner becomes aware of a serious illness, he or she must not ignore the fact that every day that the business hasn’t been sold can drive the value down.


2013-07-30T10:08:26-07:00July 30th, 2013|Maximizing Business Value|

Tip #55 – Is The Business Really Marketable?

I miss the old days when we had customers.Marketability of a business these days can be a big question.  Is the business still relevant and profitable?  Does it have appeal and potential for future growth and cash flow?

Business owners need to take a hard look at their business to understand what makes it marketable and determine what steps to take.  They need to create a plan – which may take months or even years.

It is recommended to contact an advisor, such as an exit planner or […]

2013-06-18T09:56:21-07:00June 18th, 2013|Maximizing Business Value|

Tip #54 – Does Your Business Look Good On Paper?

54_good_on_paperWith 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.


2013-05-14T09:46:41-07:00May 14th, 2013|Maximizing Business Value|

Tip #38 – Internet Search Engines Can Be A Business Owner’s Best Friend!

38_googleBusiness owners must never stop learning how to improve the sales, profitability and value of their businesses.

Smart owners oftentimes find solutions to their problems by using search engines such as Google, Yahoo and Bing.  And the increasingly popular YouTube has thousands of videos with tutorials and webinars on a huge variety of subjects such as “How to Use QuickBooks”.

Just type in “how to ______ ” and see what information is available.  Yes, there can be many distractions, but if you stay focused, there is some very […]

2011-10-31T00:01:28-07:00October 31st, 2011|Maximizing Business Value|

Tip #37 – Business Owners Need To Know What It Takes To Sell A Business!

37_selling_101The hard truth is, many businesses will sell at a low price or not sell at all.  Why?  Because those business owners don’t understand how to create value and minimize risk for a new owner.  Or they don’t understand how a business is sold.

Business owners need to learn how buyers will view their business – their financials, location, key employees, equipment, technology and many other critical items.  And they need to recognize how the market will react to the price of their business.

Contacting a professional and […]

2011-10-04T00:01:00-07:00October 4th, 2011|Maximizing Business Value|

Tip #22 – So, Where Is That Pot of Gold At The End Of The Rainbow?

22_pot_of_goldThat Pot of Gold will only be there for businesses that have been structured to sell – easy to read financials, profitable bottom line, key employees in place, growing market, quality products and services – a whole host of issues.

Business owners who are too aggressive on minimizing taxes and fail to show profits might be very disappointed in the value of their business when it comes time to sell.

Business owners need to understand what buyers are looking for and need to put plans in place to […]

2010-05-04T00:01:25-07:00May 4th, 2010|Maximizing Business Value|
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