6. Going Alone Syndrome
Below is a summary of some of the potential hazards of handling the sale of your own business:

• Limiting the buyer universe: An owner will tend to focus on only one or two possible types of buyers, usually direct competitors or customers. Unfortunately, such an approach could very likely leave out many potential buyers not readily known by management.
• Creating bad blood: Negotiations can be a very turbulent process, causing bad feelings and bruised egos. An advisor is able to act as a buffer between the buyer and seller, playing the ‘bad guy’ or being the scapegoat, if necessary.
• Being caught off-guard: By limiting the direct contact between you and the buyer, an advisor can protect you from the pressure to respond without proper consideration. Additionally, an advisor can offer a compromise during negotiations without being committed to it, to gauge the buyer’s reaction. By negotiating directly, you would forego this advantage.
• Lacking credibility: The involvement of a business broker in managing a professional sale process sends a clear message to potential buyers that there will be competition; that delay, or similar tactics will be ineffective; and that pertinent information will be carefully prepared and presented.

7. Favoring The Fast Track
Letting one attractive buyer get on the ‘fast track’, far ahead of the buyer pack, will cause you to lose your greatest weapon: competition from other bidders. The key is to build competition, to force buyers along your schedule and not theirs. A good advisor will know when the time is right to sit down and hammer out a deal with the buyer.

8. Sparing The Bad News
No one likes to be the bearer of bad news – particularly when the news contains potentially damaging information about a company that is for sale, or reports about the company’s key players. Unfortunately, the later bad news becomes public, the greater the threat of derailing the entire deal. By addressing bad news up front, you can establish a strong case and avoid potentially damaging innuendo. Negative reports can certainly influence overall valuation, but cover-ups or omissions, which will undoubtedly be discovered during buyer due diligence, could easily result in a broken deal that no price adjustment can repair.

9. Information Leaks
More than likely, you are not going to be able to keep the fact that you are selling the business a secret. It is best to avoid conflicts and protect your credibility by being direct with employees and key customers about the news, on your own terms.
​
10. Rushing To Market
If you are looking to maximize your company’s value, overcome the disruptive effects of a sale, and cash-in when it is all over, don’t expect it to happen as an overnight event. In addition, strong financial reporting systems and historical statements (preferably audited) are essential. They must support the financial data presented to potential buyers, and ensure that all the required documentation is available when it is required.
 
In Summary, selling your business is a difficult, complex and stressful process and not something you should undertake lightly. You should make every effort to prepare your business to ensure it is sold successfully the first time. Preparation and planning are the critical success factors in all business sales.

While this list is not exhaustive, just remembering these ten pitfalls will move you a long way toward achieving a successful transfer of ownership.

1. Not Minding The Store
More often than not in a sale scenario, the owner becomes preoccupied with the sale process and loses sight of the critical, day-to- day management issues. A sale can take anywhere from two months to two years. Hence, distraction from your business can be fatal to a deal - particularly during the latter stages. Late in the negotiation process, a buyer’s adverse reaction to negative reports of even a relatively minor problem could undermine the entire transaction.

2. The Unfocused Effort
Significant unfocused problems are more likely to arise the longer a transaction takes to be completed. The sale process will usually take some unexpected twists and turns, but for most situations, a good team of advisors and management will have contingency plans. The key is to be well prepared, confident and decisive, and to have clearly defined objectives.

3. Standing Up On The Roller Coaster
Selling your company can be one of life’s most stressful experiences. Besides dealing with the prospect of retirement, and with separation from a much-cared-for business, you must also face the inevitable scrutiny that your company and business activities will receive from every potential buyer. The key here is to keep your emotions in check. Being over-emotional is likely to lead to rash decisions, based on the heat of the moment, rather than on a rational agreement process.

4. ‘But-Your-Man-Got-More’ Syndrome
What another entrepreneur got for his company three years earlier, or what one large company paid for another, is irrelevant to your transaction. The market will dictate what your company is worth today. Ensure that your advisors do their homework to arrive at a preliminary valuation range, and then let the market do its work. Unrealistic price expectations are the quickest way to dampen buyer enthusiasm and ensure your disappointment. Inflated valuation expectations will impede you from recognizing reasonable bids.

5. Going With The Highest Bidder
When it comes to ownership transfer, the highest price bid may not be the best deal for you. A number of critical issues could override a decisive price difference among competing bids:

• Financial ability of the bidder to close the deal.
• Contingent liabilities that you must accept for some period after the sale, such as those related to environmental problems, pending litigation and the salability of stocks.
• Contingencies or ‘outs’ in the buyer’s offer, such as due diligence, environmental audits, financing, board or parent company approvals.
• Employment agreements for the seller and key employees, including length and level of compensation.
• Form and timing of consideration to be paid if other than cash, such as loan notes, shares and earn-out.

​Stay tuned for the rest next week!

it is said doing the same thing over and over and expecting different results is the definition of insanity. Yet business owners continue to do business as usual year after year.

Business planning is very important to help change the status quo. Putting together a business plan is a big part of making those changes.

It starts with asking yourself some questions.

Where are you now? Actually writing it out what the situation you are in currently helps you to see and read the situation better. It is easy to keep the information in your head and know where you are however, once you write it, you can realize where you are. You can also share it, so you can get help from others.

Where are you 5 years from Now? Go crazy and dream big with this. When someone has trouble thinking about this, I ask them to imagine they are at a banquet in their honor 5 years from now and someone is introducing them as “Person of the Year.” What are they saying?

What are your strategic objectives? This is more specific then the above question. They can be financial or growth goals. It could also be specific strategies you want to have implemented in your business or life.

What are your Strengths? This is what you are currently good at doing well. Maybe you are good at getting appointments with prospects. It could be you are great with financial analysis. List them and write about them.

How can you build on those Strengths? We are already strong enough to overcome any obstacle by working on improving what is already strong. It is easier and more fun to become better at something you are already good at doing. If you wake up in the morning dreading what your weaknesses are and working on improving that, you tend to not work as hard. If you wake up in the morning and know you are already good at something and you just want to get better, you tend to do it with more enthusiasm.

This is just the beginning of can become a great workable business plan.

Speaking is the most powerful marketing strategy to generate leads, make sales and grow a business! Speaking is your fastest path to build your authority, credibility and visibility and make a bigger impact in the world.

Engaging Speakers exists to help entrepreneurs, small business owners, speakers, authors, and non-profit leaders speak their way to more business. Engaging Speakers are experts in helping you create a 30-second introduction so you can ditch your elevator pitch and have people say, “Wow, I would love to connect with you!” Engaging Speakers also are experts in helping you develop a signature talk that will highlight your expertise and attract your ideal clients.

Engaging Speakers don’t just teach you how to speak in front of an audience, Engaging Speakers teach you how to generate leads with speaking so speaking becomes a cash/lead-generating machine for your business.

Engaging Speakers offers Monthly In-Person Events in Schaumburg, Naperville, Libertyville, Madison, WI and more added every week! Click here to learn More

Engaging Speakers offers Regular Virtual Events where ever you can connect! Click here to learn More

The biggest event is coming up September 16th through the 18th: The Annual Conference called Master the Stage 2021! To REGISTER and Learn more click Here: 
http://www.MasterTheStageEvent.com

​What Can "Master the Stage" Do For You?

LEARN HOW TO EFFECTIVELY… 

✓ Schedule MORE SPEAKING GIGS
✓ Build A WAITLIST OF LEADS
✓ SALES & CASHFLOW From New Clients

THROUGH VIRTUAL SPEAKING!

Learn from Industry Leaders that have SOLD MILLIONS Through In-Person AND Virtual Speaking.

Federal and state agencies, as well as private companies, offer small-business grants. Here's a list of resources. From Nerd Wallet: https://www.nerdwallet.com/article/small-business/small-business-grants?trk_location=ssrp&trk_query=business%20grants&trk_page=1&trk_position=2
 
The Paycheck Protection Program officially ended May 31, 2021.
 
Small-business grants provide free money for startups and existing businesses, including those impacted by the coronavirus pandemic.
 
It can take time and effort to research and apply for funding. To help you start, here’s a list of federal, state and private small-business grants and resources.
 
Coronavirus small-business grants
The U.S. Small Business Administration introduced new coronavirus small-business grant programs as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act:
 

• Shuttered Venue Operators
• Targeted Economic Injury Disaster Loan Advance
• Restaurant Revitalization Fund
  
• MORE: Coronavirus relief for small-businesses: https://www.nerdwallet.com/blog/small-business/coronavirus-relief/

 
Federal small-business grants
Government agencies are among the biggest distributors of business grants, supporting a range of enterprises from environmental conservation to child care services. Applying may seem intimidating, but federal grants are great opportunities for small-business owners looking to grow.
 

• Grants.gov
• Small Business Innovation Research and Small Business Technology Transfer programs

State and regional small-business grants
Economic Development Administration: This U.S. Department of Commerce agency provides grants, resources and technical assistance to communities to support economic growth and encourage entrepreneurship and innovation.
 
Each state’s agency helps businesses find financing (including state or regional grants), secure locations and recruit employees. You can search the economic development directory for regional offices and local resources.
 
Small Business Development Centers: Your local SBDC provides support for small businesses and aspiring entrepreneurs. They’re often associated with local universities or the state’s economic development agency, and many can help connect business owners with financing opportunities, as well as counseling, training and technical assistance.
 
Corporate small-business grants
Many corporations and large companies have a philanthropic component that includes small-business grants. While some provide grants only to nonprofits servicing specific industries, some give to for-profit companies.
 

• FedEx Small Business Grant Contest
• National Association for the Self-Employed

 
Specialty small-business grants
To help spread entrepreneurial success across demographics, many organizations focus their funding efforts on specific communities.
 
Visit www.Nerdwallet.com for more lists of:

• Small-business grants for women.
• Small-business grants for veterans.
• Small-business grants for minorities.

Typical Situation: Our client is complaining their location does not have enough space. They may wish to change their location. They may want to explore buying their own building and want some comparisons.
When you hear a business owner say:
·        “There is just not enough space here anymore.”
·        “The building owner has been neglecting maintenance”
·        “I think it is time explore buying my own building and need some comparisons.”
 
Commercial Real Estate Broker works with businesses that are looking to lease or buy office, industrial, or retail space in the Chicago area. Our process is geared to reduce the pain involved in the business relocation process.

How they Work: Starts with meeting with the client to better understand what his/her real estate needs are. They do an extensive property search to generate a list tailored to our client’s specific needs. Then a tour of the properties that have been further vetted.  Once a property is selected the broker will advise our client during the negotiation process.

Matching Ideas with Resources:

GLM can provide an Opinion of Value of your business. This is based on information provided in your last three years Financial Statement, we can then estimate the Value of Your business.

There are a number of different methods that can be used to place an estimated value on a business. Different methods can yield different results. In fact, even the same method can yield varied results because different appraisers will make different assumptions.

In valuing Your business, our GLM’s Valuation used a modified version of the classic excess earnings method of valuation. We know from experience that this method offers a good estimate of value for small businesses.
In its simplest form, the method for excess earnings method of valuation makes use of the following items:

• Fair market value of the assets owned by the business less any debts owed by the business
• REAL income being earned by the owner(s) of the business (including items such as excess salary, profit, dividends, and business paid expenses that are not essential to business operations). 
• An earnings multiplier- The methods used for calculating the real owner income and for the appropriate earnings multiplier are detailed within the report.

This method, when used properly, is able to predict the range of prices at which a business is likely to be sold. 
 
GLM’s Valuation uses the following elements in arriving at our estimate:

• 2020 profitability
• Company assets
• Type of business
• Business longevity
• Competitive environment
• Customer concentration
• Vendor concentration
• Geographic location
• Profitability trend
• Revenue trend
• Estimated value of plant and equipment owned by Your business
• Working-capital requirements

If you are interested in learn more about how much your business is worth, Contact us:
​
Tom Gosche
630-675-8971
tomg@goglm.com
Schedule a 30 Minute Online Meeting: https://tomgosche-goglm.zohobookings.com/#/customer/30minuteonlinemeeting

Courtesy of Adrian W. Hollander, C.P.A., CISA, CIA, CBA, CFSA,
President of COMPLUS Inc. – Professional Controllers
(773) 233-0306 AHollan700@aol.com
  
A business owner should write his/her own business plan.  A ghost-written plan is virtually valueless because the ideas are usually those of the writer not those of the business owner.  There are some computer programs to guide plan construction.  They may produce a more literate result, but may also hide the true character of the business and its owner.  Be careful with their use.  There should be more thought applied than just fill-in-the-blanks.  There are numerous classes offered through various business groups and local colleges and universities on “How to Prepare a Business Plan.”  Many are free.  Attend one if you need to.  “Old” prospectuses (business plan material prepared by companies for selling securities to the public) may be available from stock brokers and other investment advisors.  These will provide examples of how the “big boys” do it.  Full disclosure is critical.
 
A business plan is the blueprint for the future development of a business.  It expresses the vision of its leadership.  It describes the resources that are available and those that are needed.  It describes the competitive advantages, and threats.  A business plan should be a process, not just a product.  Write one; think about it; discuss it with your key business allies; and then revise it at reasonable intervals.  Below is a “sample” table of contents for a business plan.  It’s just a good place to start.  Please revise it and flesh out the content to suit your specific circumstances.  Best wishes for much success.
 
 SAMPLE BUSINESS PLAN CONTENTS

1. Executive Summary

2. Current Situation

3. Vision

• Mission Statement
• Goals (long range)
• Objectives (short/medium range)

4. Management

5. Product / Service Description

6. Market Analysis

• Customers
• Competition
• Opportunities
• Risks

7. Marketing Strategy

• Personnel
• Facilities / Equipment
• Pricing & Profitability
• Advertising & Promotion
• Public Relations
• Selling Tactics
• Distribution Channels
• Business Relationships

8. Production / Manufacturing Strategy

• Personnel
• Facilities / Equipment
• Intellectual Property
• Regulation / Compliance
• Supply Chain
• Business Relationships

9. Administrative Strategy

• Personnel
• Facilities / Equipment
• Management Information
• Worker Administration & Benefits
• Regulation / Compliance
• Business/Professional Relationships

10. Financial Information  

• Pro Forma Balance Sheets (for 5 years into the future)
• Pro Forma Income Statement (for 5 years into the future)
• Detailed Budget (for next 12 to 24 months into the future)
• Cash Flow Projection (for next 12 to 24 months into the future)
• Break Even Analysis (show growth steps, if applicable)
• Summary of Existing Resources (people and money)
• Potential Sources of Funding