If you are considering listing your business, you may have thoughts about how you think the process is going to go.

The version of your business sale that exists in your mind, however, is likely to be more fantasy than fact. You probably imagine that shortly after listing for what you consider a more than reasonable price multiple offers from motivated sellers will come pouring in – and a fierce bidding war will ensue. Within a month of this imaginary listing scenario you are drinking margaritas on the beach with the proceeds of your highly successful business transaction in hand.

Reality, unfortunately, will be nothing like this fantasy business sale.

If you are considering selling your business, one of the most important things you can do to have a successful transaction is to manage your expectations. Going into the selling process with a realistic attitude will mean that you are able to deal with issues as they arise and will be better equipped to negotiate with buyers. In this first article of our “Why No One Is Buying Your Business” series we will look at the biggest expectation hurdle for sellers – price.

Your business is your baby, and we get that. We’ve owned businesses too. You invest countless hours, what feels like endless streams of money and tons of energy into this enterprise – and then you have to put a number on all of that investment.

Most sellers who set their own price set it way too high. The reality of business sales is you aren’t going to get back every penny and every hour you’ve ever put in. Your business is going to sell for what a buyer is willing to pay for it – and that number will be related to the market, your current cash flow, the value of your inventory, etc.

If you are unfortunate enough to get an inexperienced broker or a broker who wants your listing with no intention of ever trying to sell it, you will likely be allowed to list your business for whatever you want. This is a huge mistake.

A business priced too high will languish on the market, and any buyer who takes a look will wonder about the credibility of a seller who would ask for such an unrealistic number.

Someone who is serious about selling their business will instead look for a broker who will help them put a realistic listing price in place – a price that can be backed up by the market and the numbers in the books. A fair listing price will bring the serious buyers in the door and give you a far better chance at reaching a closing table.

If you are serious about selling or are curious about what you might be able to get for your business, contact us and we can discuss a realistic listing price.

Join us for the second article in this series where we will discuss another big sales hurdle – purchase contract terms.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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Unless you own an accounting firm, it’s likely that the record keeping and accounting parts of your business aren’t necessarily your daily top priority. You have a business to operate, employees to manage and inventory to sell.

However, if you are thinking about selling your business in the future – those record keeping and accounting skills will be paramount in getting you the biggest bang for your business investment.

How? Think about this point from a buyer’s perspective.

You are looking at two nearly identical businesses. They are in the same industry, in similar markets and locations and they generate the same amount of cash flow. The first business has immaculate records that stretch all the way back to the day they opened the doors – tax returns, P&L statements, inventory records, payroll records, the list goes on. When you as a buyer request records for this first business, they are already complete and organized and are handed over almost immediately.

For the second business, a request during due diligence for records gets you a poorly copied set of two years of tax returns and a box of receipts.

Remembering that these businesses are essentially the same in terms of cash flow, which one are you going to be willing to buy and which one will you pay more money for? The first business, right?

Why? You know what you’re getting. The history of the business, the current numbers, the contracts and leases – everything is right there for you to look at. There’s no guessing or lack of transparency. It’s all there on paper in black and white.

If this scenario has you instantly picturing the dusty box of receipts shoved under your desk – all is not lost. Getting your books in order may be challenging, but the return on the investment of time will likely be substantial. You want buyers to be looking at how well your business is doing, not wondering how someone so disorganized keeps the doors open.

If you need help, help is available. Your business broker can guide you and refer you to a CPA who specializes in making records useful during a business transaction. All you need to do is ask and be up-front about the condition your records are actually in.

Are you panicking about the box of disaster under your desk? Would you like to know what types of records business buyers are going to want to see? Please contact us at Infinity Business Brokers today and we would be happy to help.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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By Guest Contributor Jessica Trippler – www.BrinkResults.com

As we celebrate our nation’s independence, many working professionals wish they could muster the courage of our forefathers to make their own Declaration of Independence. Poorly managed employees have a valid list of grievances. Could your management style be stifling your company’s productivity?

Consider these common workplace grievances and learn how to foster independence which will strengthen employee morale while boosting your bottom line.

1. “I don’t know what’s expected.” Lazy management is not independence. You might think you are giving your employees freedom, but an approach which is too “hands off” will make them feel anxious. Give clear direction. Employees can’t hit a moving target and will grow weary of poorly defined or frequently changing goals. Don’t leave your people guessing about whether they’re meeting expectations.

2. “I’m sick of being micromanaged.” Mentor, don’t hover. Just like “helicopter parents,” managers who hover too closely will stifle creativity. Make yourself available to answer questions and check in regularly, but don’t breathe down your employees’ necks. Give them space to brainstorm and experiment. Employees will grow more confident and competent when they are given the freedom to explore. Demonstrate trust and expect failures. It’s all part of the innovation process.

3. “I don’t feel appreciated.” People need to feel a sense of purpose. This may be lacking in a workplace atmosphere so “free” that progress is never measured or rewarded. A lack of manager awareness means poor work and productivity alike will go unnoticed. Your employees will begin to wonder if their accomplishments even matter. Be deliberate about recognizing achievements.

4. “My ideas aren’t valued.” Don’t override your team’s decisions without proper consideration. The reason you hired these professionals is because they bring a diverse and valuable collection of competencies. If decisions are routinely vetoed by management, employees will stop innovating. Listen to and carefully evaluate new ideas. If you must veto, offer solid reasoning. You lose your employees’ respect when you presumptively dismiss their proposals.

5. “I’m always the last to know.” The workplace is a fast-changing environment. If managers don’t prioritize communication, they will cultivate disgruntled workers. Share information as quickly and authentically as possible. Schedule regular meetings so communication isn’t shoved aside by deadlines. Nothing is more frustrating than feeling you’ve wasted time and energy pursuing a defunct goal. Managers who are candid and communicative will reap their employees’ respect.

6. “I’m treated like a number.” Get to know your employees as individuals. Call them by name. Find out what makes them tick. You never want to overstep personal boundaries, but a little interest goes a long way in building trust. Share your own relevant career experiences and listen to employees’ ideas on how to improve the workplace. By establishing a safe environment for personal expression, you will strengthen employee satisfaction.

Managing right is the key to fostering workplace independence. Brink Results can help through targeted training, workshops and behavioral assessments like ProScan® , which empowers management to capitalize on employees’ strengths and motivations. This creates an environment which reduces stress while increasing morale.

Your employees will thrive in a secure, communicative workplace where independence is supported through clear direction, regular feedback and recognition of achievements.

Jessica Trippler

Director of Sales
Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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By Guest Contributor Mark Welker – www.bpinsights.com

Some people believe that it is the events that control your life, but in reality it is your belief about the events that is the controlling factor. Beliefs are the acceptance of a perception being true and a conviction that this belief fits reality. Beliefs are the building blocks of values. They combine both a cognitive choice and an emotional response to certain triggering events that produce a consistent response. These beliefs when clustered together produce a value.

A value is a single belief concerning an ends or a means. Ends might be you being rich or the world at peace, while a means might include being honest or having ethical behavior. Values provide the motivation through which we achieve personal fulfillment or a feeling of self-worth. The motivation is released as focused behavior on a desired end. Much like the motivation to start a business, the motivations of each might be different. Some owners are concerned about the money, some want to achieve independence and some simply believe that they could take better care of the customer or make a better widget and the money will be secondary. The functional policies used in small businesses are sometimes very unique. The policies are generally controlled and affected by the owner in a very pragmatic way. Remember, these are the policies that provide the guidelines for decision-making and converting plans into actions.

The owner’s personal leadership style has a significant impact on the way the company addresses problems, because to a large degree, the style creates the norms and values used to control and operate the business. The degree to which the owner has developed self-awareness of their values and behaviors can be a determining factor in business success. Business owners must take the leadership role in mobilizing the people to adapt their work to changing realities. Business owners behave in certain ways and have different values. They do not always understand their core motivations or actions. Business owners should understand their strengths and weaknesses as well as their guiding values.

The culture of a company is the reflection of the owner’s values. The culture begins when the owner imposes their own values on the company. If the company is successful and the assumptions, based on owner values, prove useful – these values are taken for granted and used in decision-making. When the company or business encounters changes in the environment the assumptions are questioned. An extreme example of this might be the stated values of the Marine Corp., Honor, Courage, and Commitment. These are the core values that guide each Marine’s decision making, or said another way “who he/she acts like in the dark.” Yes, I understand that there are failures, for example, in a cover up, but in most situations they work. The powerful proof is that they have been able to take people from all walks of life and align them with the Marine Corps core values.

What are the controlling values when you are not there? This model could be used to develop guiding values for a company. An example of the values used in a company might be Ethics, Responsiveness, and Profitability for example. Owners have a responsibility to clarify the guiding values of the company, because that is the basis used to make the judgments and decisions that affect all stakeholders. (Many people have a need to be part of something bigger than they are).

Please request a complimentary DISC and Motivators Assessment at
http://www.businessperformanceinsights.com/contact-1.html

 
Business Performance Insights
4575 Via Royale
Suite 218
Ft. Myers, FL 33919
www.bpinsights.com
jessica@bpinsights.com
201.563.2243
mark@bpinsights.com
239.872.4555

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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By Guest Contributor Jessica Trippler – www.bpinsights.com

Most small businesses rely on sales people to sell a particular product. I like to say, “Sales people keep businesses in business.”

Did you know;

• 20% of all salespeople make 80% of all sales, which means 80% of a sales force fights over the remaining 20% of business (Greenberg & Greenberg, 1983)
• 55% of salespeople have no ability to sell, and 25% have sales ability but are selling the wrong product or service (Greenberg and Greenberg, 1983)

Finding the right people to keep you in business and keep you profitable can be difficult. During the hiring process business owners may ask themselves;

• Can I trust this person to represent my company and product?
• Can they really sell?
• Do they understand the sales process?

When a business finally finds someone that can sell a product effectively, and lots of it, everything is great. The sales person is “on a roll” and it seems like nothing can stop them. Then a few months or years go by, and suddenly, that same person is not bringing in the numbers they used to. It is a huge concern when a small business or manager comes to the realization that their top performer is in what I like to call, a “Sales Slump.”

In order to understand exactly what happens during a “Sales Slump” and how to overcome it, we first have to understand what characteristics a top sales performer possesses. What types of behaviors and values are needed to be a top sales person?

A recent study by the Harvard Business School found that highly successful salespeople do not take “no” or objection personally; they take 100 percent responsibility for the results they deliver; possess empathy; have above average ambition, willpower and determination; are intensely goal-oriented; and can easily approach strangers (BASIS International, 2002). I believe sales people are often times high energy and have an uncanny ability to influence others to their point of view. Target Training International’s study into motivators and values confirm the importance of the utilitarian value. Utilitarianism indicates that top sales performers are motivated by practical results, rewards and a return on investment.

What causes the “Sales Slump” and how can we overcome it? Sales professionals would claim that customers are not willing to buy because of timing, the client was not serious, the economy is poor or the leads or opportunities that have been given to them are lacking. Or they may place blame on, my favorite objection, pricing. I think it is important for sales staff to learn how to become more self-aware. The better you understand yourself, the better you will understand others. Ultimately, all the strengths that make up a top performer can often times become their greatest weaknesses. Over time, these behaviors and values become overextended and cause stress. A “Sales Slump” can simply be a case of losing sight of the behavior it took in order to be successful. Just recognizing how a person’s behavior may have changed, may just be enough to overcome the slump. Overcoming a “Sales Slump” is truly about educating yourself or your staff and learning to be more self-aware.

Please request a complimentary DISC and Motivators Assessment at
http://www.businessperformanceinsights.com/contact-1.html

Business Performance Insights
4575 Via Royale
Suite 218
Ft. Myers, FL 33919
www.bpinsights.com
jessica@bpinsights.com
201.563.2243
mark@bpinsights.com
239.872.4555

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

No Comments »

By Guest Contributor Krystal Burroughs – www.reviewdriver.com

“80% of consumers will choose a 4 star business, but only 14% will choose a 3 star business” (Pepperdine School of Business)

Online reviews play a major roll in your company being found and chosen. Do you know what your customers are saying about your business?

Review Driver is an automated software solution that will help you gather customer feedback and increase positive online reviews. With as little as 15 minutes a week you can gain valuable feedback from your customer’s experience and easily gain positive online reviews on public review sites like Google, Yelp, Facebook and Angie’s List. Taking ownership of your review profiles, monitoring the sites that matter most to your business and building positive online reviews will strengthen your SEO, improve your online image and attract new customers.

Who better to explain than one of our clients, Greg McAfee, President of McAfee Heating & Air in Dayton, Ohio:

More and more people today are turning to social media and online services to find out more about companies prior to doing business with them.

Because of this, in order for us to stay ahead of the competition, we wanted to encourage our customers to leave reviews. Review Driver provided us a way to easily reach out to our customers on a daily basis and request they leave honest feedback about their most recent service with our company. We have benefited from Review Driver in the following ways:

1.      We can request that any positive reviews be shared publicly; thus increasing the number of positive reviews seen on line.
2.      We are given an opportunity to respond to any negative reviews, which improves our overall customer satisfaction.
3.      Our customers are provided an easy opportunity to “vent”, which many times prevents them from taking their complaint to another online public forum.

I highly recommend Review Driver to help manage and drive public online reviews

Gone are the days of feeling too small or powerless to control your online reputation. Take control of your customer surveys and online reviews, call today.

Krystal F. Burroughs
krystal@reviewdriver.com
Director of Client Happiness
(727) 218-9218

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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