#1. Run your business as if it were for sale. I find that people will call us and say that they want to sell their business, but the business is not ready to sell. Things are not in order. Even if you have no plans to sell your business in the forseeable future, run it as if it were currently on the market.

Too often, owners a forced to sell due to an unforseen problem. One of the most common is poor health. Others include age, burnout, or losing a partner or key employee. For example, if you were selling your home, you would present it in the best possible light. You would want it to make a good first impression when the buyer prospect walked through the front door. The same is true for your business.

Don’t allow yourself to slip into being sloppy or complacent. Make sure you concentrate on increasing revenue year over year, maximizing profits, and customer service.

More to follow. Sam Naff

You, as owner, may have developed a strategic plan that will take you to the next level of success; and, your product may be well positioned in a growing industry catagory.

But, what are your employees thinking. The people you are depending on, the employees that are actually making the product, doing the work, preforming the service. One way to tell what employees are thinking is to set aside some part of the day to interact with them, where they are. Not in some employee meeting, but in a setting where they feel comfortable.

Some of the things I did included taking a coffee break when they did, sitting with a different group each time. Or, walk around where they are doing the work and asking how things are going.  It’s amazing what you can learn from them on how to improve your business.

One big red flag is when an employee tells you, “Don’t tell my supervisor that I told you so, but ………. “. It would become obvious to me that I had a problem with that supervisor’s ability to manage and I needed to spend more time concentrating on management training.  What are some of the things that are critical to your management teams success?

More to follow. Sam Naff

Too many times, I have seen owners, executives, and managers fail, not because they were not smart, but because their employees were not motivated to excel. When you hire a new employee, their first day on the job can be the best day they are working for you. On their first day, they are excited by the new challenge, motivated to do a good job, with hopes of future advancement. On their first day, they are not thinking about how little they can do, or that management isn’t listening, or that management is indifferent to my ideas. These attitudes come later, after we’ve shown them that that we really aren’t listening to them

If you feel you aren’t reaching your employees, I will be glad to discuss it with you. You can email sam@thecrownbusinessgroup.com. More to follow

When I was with Price Waterhouse, I consulted with many banking clients, both large and small. Regarding loans, the bank’s perspective was not how much money they would make in fees and interest, but whether the borrower would pay the principle back in its entirety. That should govern the seller’s perspective as well.

• Is the buyer able to pay back the principle?
• Where will the money to pay back seller financing come from?
• Will it come from the operation of the business?
• What are the risk of holding the note? For example, if the buyer defaults, what are the sellers remedies.

If the seller simply finances an office building that housed the business offices of the business, then maybe a default is not a terrible ordeal since an office building may lend itself to other tenants. However, consider financing a fast food restaurant, land and building. Fast food buildings are very specific in use and sometimes very specific to franchise specifications. Therefore, financing a fast food location is higher risk because the location may lend itself only to the operation of a fast food concept. Additionally, the operations originate from the location itself which means that the seller may have to also step back into running the business.

Other issues that may give a seller pause:

• Does the property house or use any chemicals or hazardous materials in the business?
• Could the property be subject to condemnation or a re-zoning?
• Does the buyer depend solely on the operations of the business to pay back the sellers note?
• Does the noter reflect an interest rate that rewards the seller for risk assumed?
• What term of financing is the buyer requesting?

Bottom line, seller financing can be an attractive option to both seller and buyer, however, the seller is taking on risk and risk should be carefully weighed and rewarded?

William A. Robinson III, CPA

Member – The Crown Business Group LLC

Most of us know of improvements that could be made in our operation that would enhance our operating results, but we get busy with the daily routine and get side tracked. We miss out on opportunities that are there for the taking. And most would have been so easily implemented.

But, when personal crisis hits, we have to unexpectedly find a buyer. We don’t want to, but we’re forced to. The price we would like to get for the business is going to be lower than expected because we’ve gotten bogged down in non-productive activity, like spending too much time in the office and not visiting customers or interacting with employees. We recommend that by staying focused and making improvements as the opportunity arises, you will be ready to sell if you need to.

Every business has things that can be done to improve profits…and little improvements can add up to better results. Better results means higher selling price, whether planned or unplanned.

The economy of the past few years has drained some new startups of their financial resources. Owners have built up a customer base and have really done all of the hard work of getting the business to break even.Unfortunately, they can’t hold on long enough to reap the reward. Many of these businesses can be bought for a very attractive price.

This is where a new buying opportunity is attractive and new ownership can take a business to the next level. We all know that it takes working capital to start a business. Why not take advantage of the effort and resources someone else has invested and take advantage of a business opportunity that is on the edge of being profitable.

I knew I had my work cut out for me. I explained that unlike many of our competitors, The Crown Business Group LLC did not charge any upfront lising fees and I was not going to get paid until her business sold. Crown was going to find a qualified buyer while at the same time, keeping the sale of her business confidental in the community.

One thing that I know is that our reputation is ‘the most important thing” we have. Word can get around too fast on the internet and in the community if we don’t service our clients well.

As a member of the International Business Brokers Association, I know that many of our competitors also do a good job. The Crown Business Group wants the sellers who engage our services to have a positive experience when it comes time for them to exit their business.

I asked him how he intended on financing these acquisitions. He stated he was going to use his personal savings that was earmarked for retirement. His retirement account had lost value and his strategy was to buy several profitable businesses that would yield a greater return than the investment market he was using.

I told the prospect that he was not the only person I had talked with that wanted to use this strategy. It makes sense to me that a business that yields even a 5% return is more than I am currently enjoying while invested in the market. And, these businesses have good potential for growth. Then, when retirement time comes, the owner can sell his businesses and enjoy the additional cash from the sale.

We are also in the process of launching an new effort to reach buyer prospects in other parts of the world who want to immigrate to the U.S. These buyers are qualified and have cash for the  purchase. As you know from watching the news, many countries are not business friendly. Individuals who have been successful overseas face the risk of losing their wealth due to corruption and government intervention. These entrepreneurs want to come to the U.S. but need to be a business owner to do so.

If you are in the position that you would like to sell your business and pursue something different, we may be able to help. Call us for a free consultation. We can give you an idea of what you can expect when selling, regardless of where the buyers originates.

Not so in the area of business brokerage. We are contacted weekly by private equity groups looking for businesses that have gross sales of over $5 million. We also have foreign buyer prospects looking to invest in a U.S. business with sales as small as $500,000. Many of these foreign investors want to immigrate to the U.S. and one of the prerequisites is that they buy or start a business. It’s a great opportunity for an owner considering selling.

If you would like to talk with us and get more information on how best to market your business, give me a call at 770-894-4180, or 888-770-3369.