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Once I ran medical office businesses.  Some were urgent care facilities.  After several years, it became clear that there was no rhyme or reason to the revenue flow.  The only thing that was clear was on the days I would visit any specific location, there were no patients.  They had either come the hour or day before or would after my visit.  This period of  my professional life was when [...]

Many entrepreneurs dream of developing their business to a point where they can add staff and other assets, relieve the pressure of doing everything, and focus on managing. Then the point comes when just one more customer has arrived and it makes sense  (perhaps) to take the next expansion step.  Judging the time for this is difficult…not too soon and not too late.  Following are considerations for operational/cost expansion as [...]

Business Owner:  My business is starting to recover after the economic downturn. There is no single answer to this question “Do I sell now.”  Many business brokers are reporting that their sales are up this year.  This swing from low sales to higher sales is not necessarily based on greatly improved business-for-sale values.  Instead the brokers report that the improved sales are because owners are deciding to reduce the sale [...]

Recently one owner of a business died, the father.  He and his wife had started and operated the business together.  He became ill and after a long health crises, one with ebbs and flows, he died.  His role with the business also ebbed and flowed as his health demanded.  The wife was increasingly responsible. Knowing he was ill, they took steps to put a will in place.  His share of [...]

Recently, at lunch with business owners, I was asked what are a couple of must dos for business owners that eventually want to sell. The first thing that slid off my tongue was “don’t be sloppy.” You know what a sloppy business looks like.  It could have one or more of these characteristics: Records are messy. Taxes are not filed. The facility is not neat. The attire is not attractive. [...]

Thank you to Jacqueline for her guest entry. Most articles I have read tell the business owner considering the sale of his or her business to focus on tax, accounting, income, and legal aspects of preparing for a sale. The value of the company, customer data, and assets and real estate are all equally important.  Key to success is involving a business broker, CPA and lawyer. But when determining the [...]

  It is not true that declining businesses never sell. They do.  But, key is whether there is opportunity for recovery. A buyer needs to evaluate the business for opportunities to improve, change the model, enhance the product, etc.  Counter to improvement is whether the industry has reached its peak and recovery is possible.  Is it merely the economy that is dragging this business down. The seller needs to understand [...]

In a recent business activity there was discussion of whether to yell at the landlord for being an obstructionist to the planned sale or whether to be cooperative.  I took the high road, that of seducing with honey.  For two months the problem was not resolved.  Then the deal began to crumble.  The further one gets from the original agreement the more time both sides begin to think about what [...]

Years ago, a sailor friend was always just a member of the crew.  He, like I, would sail for pleasure and sometimes for a race.  He was quite often left immobilized by the motion of the boat.  In other words, he was sea sick a lot, leaving others to sometimes critical tasks.  Then he bought his own boat. At the time, I was stunned.  How could he make himself responsible [...]

» Only buy a business from someone who is willing to sign a non-compete. Without their non-compete, the selling business owner can totally eradicate your newly purchased livelihood. Have your legal advisor ensure this is a part of the agreements you sign. Length of non-complete, business scope, and geography are all critical components of non-competes.

» Buying assets, not liabilities, at least those you can not support, is a best position. Most recommend asset-only purchases. Sometimes this is not possible. Therefore using your advisors will help to keep you from assuming the liabilities that are not appropriate for you to assume, e.g. unpaid taxes.