Hopefully you will make a New Year’s resolution which includes building a business plan and in it, your personal and business goals.  You will also do a budget to make sure you can afford to execute what is in your plans.  Hopefully you are rested and as they say, “all dressed up and ready to go.”  You are also saying “Bring it on.”  My question is therefore, you know WHAT you want to do but HOW are you going to do it?

Chances are you have a list of projects and tasks you want and need to do.  It probably does not include answering phones, sending and receiving emails, reading articles and newsletters, attending conferences, staying on top of compliance items that affect your industry but numerous day to day activities that lead most entrepreneurs at the end of the day to say “Where did the day go?”  That’s the point of a Productivity plan.

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As a business owner, and part of the baby boomer generation, you’ve seen your share of ups and downs in the business world.

If you are considering the sale of your business there are a growing number of brokers and mergers and acquisition specialists available to offer professional assistance to help you determine the value of your business and how the market might respond.
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As baby boomers begin to hit retirement age, many who are business owners are ready to sell. It’s created a market that has many businesses for sale.

At the same time, concerns about the economy had made it tough to get financing for many potential deals. Seller financing is one option that could be the solution to get many deals done.

Seller financing involves a seller helping to finance the sale of the business by taking back a second note on the business. It differs from a traditional Small Business Administration (SBA) loan because the seller essentially extends credit to the buyer against the purchase price of the business. However, seller financing is misunderstood by many, even though it may be the best way to sell a business during a stagnant economy.
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Selling a business and walking away can be very difficult. But in many cases, there’s a transition (“training” and/or “consulting”) period dependent on the size of the company and the role of the owner. Transitions may be as short as a month or two or as long as a year. In most situations, the buyer wants the seller to remain on board to shorten the learning curve and help with the smooth transfer of key relationships.

In the typical business sale, a transition period of four to eight weeks is included, and sometimes a “telephone consulting period” is added (e.g., 6 months of telephone consulting not to exceed 5 hours per month). Also, the seller may additionally be retained as a consultant at a negotiated rate. In some instances, a long-term employment contract is negotiated and the seller maintains daily involvement for a much longer period of time. READ MORE

As you prepare to put your house on the market, you get the word out to as many people as possible. The “For Sale” sign is placed in the front yard, you invite people into your home during an open house and you put ads in the newspaper and online. You want everyone to know your house is for sale.

However, that’s not the case when selling a business. Place an ad that your business is on the market and people start to wonder. It creates an air of uncertainty that can be detrimental to your bottom line and put the company in jeopardy.

To increase the likelihood of a successful sale of a business at an optimum price, keep it confidential!

What’s likely to happen if people find out the business is up for sale?
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Do thoughts of selling your business ever cross your mind? As a business owner you certainly know that the day will come when you will walk away from your company’s operations. Selling your business will likely be one of the biggest decisions of your business life.

No doubt you have a good idea of what your business is worth. But there are many factors to consider when putting your company on the market. Is now the best time to sell? Should I look for a cash deal or should I consider certain terms? What about confidentiality? 

Working with a professional business intermediary will provide the expertise to help you make those decisions. Consider teaming with a Certified Business Intermediary (CBI), a professional who fully understands what it takes to successfully sell a business. A CBI can bring significant value to the complex process and help you complete a sale that will include the best possible value and some peace of mind. 
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There are more than 15 million family businesses in the United States, ranging from giants like Wrigley and Marriott to the local corner grocery store. Yet, history tells us that less than one-third of family owned companies will make it to a second generation. 

One reason for the disheartening statistic may be that business owners tend to forget about succession planning. It’s often not a priority and it definitely can be an emotional issue. Many owners just can’t imagine the business succeeding if they aren’t involved or they may be too busy with day-to-day operations to take the time to adequately plan for someone else to take the reins when it’s time to step aside. 

But as more and more baby boomers approach retirement age, the time for succession planning is today. Tomorrow may bring a serious illness, disability or even death. Having a well thought out plan is critical to the continuation of a business, particularly for a small, family-run operation.

Plan early.
Developing a succession plan early will help to smooth the transition. You may think the plan won’t be implemented for years, but unexpected factors may move up the timeline. 
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If you are thinking of selling your business, its critical to prepare your business for sale. It will likely be the biggest financial deal you’ll ever make, so it’s vitally important to be sure you are properly prepared when selling your business. Taking the proper steps to get your business ready for sale can significantly improve the likelihood of a successful sale.

For many business owners, the prospect of selling the business after years of pouring every effort into growing the company can be emotional and difficult. That’s a major reason why it pays to structure a plan to prepare for the sale. Remember, it’s crucial to use the same care and patience that is used to grow and sustain a business.
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As a business owner, and part of the baby boomer generation, you’ve seen your share of ups and downs in the business world. The time is coming to step back and take life in a different direction. You’ve decided it’s time to seriously consider selling your business. Where do you turn? 

Many business owners in similar circumstances look first to their accountant or their business attorney, people they’ve worked with and have developed a relationship with. But the fact of the matter is they aren’t experienced in selling a business, just as you probably would not ask them to sell your home for you (which is much easier). No doubt, you’ll consult with them as you prepare to sell your business. But an initial step should be to enlist the help of a professional business broker or intermediary. 
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Ready to buy a business and need some finance options? A recent survey of members of the International Business Brokers Association (IBBA) found that business brokers expect the next few years to be a busy year for buying a business or selling businesses. Finance to buy a business is difficult but most transactions will require some level of finance. With a busy time ahead for small business transactions, there are a number of finance options to consider. 

1. Seller Finance -
Increasingly, buyers and lenders are looking to the seller for financing as they try to put a transaction together. In such a scenario, the seller will hold a note at an agreed upon interest rate for a specific term or amortization – generally ranging from five to 10 years.
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Are you thinking of selling your business? Perhaps you are thinking of selling your business or hiring a business broker? Any business owner who has sold a business on his of her own will tell you it’s a long, tedious and stressful process. It consumes time and distracts you from the day to day operation of the business. When your focus should be on maintaining or increasing the value of your business, all of your time and energy is directed to the sale process.

That’s where an experienced business broker can pay huge dividends. There are many areas where the business broker expertise pays off:
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Buying a business is a process that takes time. It can sometimes take years to find the right opportunity. Although this blog is about selling a business, if a seller understands the buyer process, it will make it easier for the seller during a transaction. Hence my Golden Rule – Put your feet in the shoes of the other party.

Unfortunately, many buyers want to look at all available options, thinking they’ll recognize what they’re looking for when they see it. That approach is actually a waste valuable time and energy and can lead to frustration and an end to the search. Or the potential buyer may miss out on great opportunities because they weren’t found early enough or they weren’t ready to move forward with a purchase.

There are some key steps to follow in the business search process:
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A management buyout is an option for some business owners to consider. For a business owner approaching retirement age, a buyout by the core management team in certainly an option. But with any business sale it’s important to proceed with caution.

Selling the business that you’ve poured your heart and soul into for many years to managers you’ve work with side-by side can be very rewarding. If the sale is set up properly, it gives them a chance to own their own business. It also helps protect your legacy since these are people who believe in your vision and understand the company culture.

But if the sale is not structured properly, a management buyout can be extremely detrimental. A company’s strong, positive culture can quickly turn negative with a rift between the owner and management team.
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How do you find a good business broker? These days, even a recommendation from a friend isn’t enough to trust a business broker with your future.

If you plan on working with a business broker, here are some important factors to consider.

1. Credentials
Obvious, right? But some people don’t ask. You MUST check out your business broker’s credentials before signing him or her on to represent you. The best way to do this is by perusing their other listings and asking for references. You may also want to ask other local business brokers about their experiences with your business broker.

2. Experience
It’s essential to make sure your business broker has experience in your specific industry. Either way, you are going to pay your broker 10-15% (standard rate) of the sale price. You’ll rest a lot easier knowing that he/she has the industry-specific knowledge necessary to make the best possible deal on your behalf.
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Many buyers and sellers of businesses will use a business broker to assist with the business-for-sale transaction. In simple terms, business brokers act as middlemen between business buyers and sellers.

One means by which business brokers assist in the buying process is by offering insight into valuing a business. Business brokers have extensive knowledge of what businesses are worth and can usually derive a value that is accurate. Without a broker, it is tough for sellers to precisely place a realistic valuation on their business.

Business brokers also provide help in presenting the business. They are adept at packaging and marketing a business to show it in its best light. Without a broker, a seller may not be able to market their business in a way that is attractive to buyers.

Business brokers also know how to attract buyers. In many cases, they have a database of buyers and send out business-for-sale alerts to their database whenever they have a new business listing. At the same time, they work in a confidential manner, keeping the sale of the business quiet so that competitors, employees, suppliers and others are not informed that the business is for sale.

Reproduced with permission from the website of the International Business Brokers Association (http://www.ibba.org