Board Members that make absolute sense for Small Businesses…

Brendan Lewis, writing for Smart Company, raises very valid points in his latest piece “Killer Boards for Small Businesses“..

Forget accountants, marketers and lawyers, you can buy their services as you need. Forget industry doyens and professional directors, they are unlikely to be anything more than a distraction to a small growing business. What you want as a small business is additional directors that can help you with one or more of the following four tasks:

1. Grow revenues.
2. Raise capital.
3. Get the right people involved.
4. Exit the business.

If they can’t help you with one of the above tasks through their existing networks and assets, they’re just wasting your time.

Agreed!
Please pay attention… Being a nice person is great, but it cannot be the only basis for such important decision making.

Enjoy the rest of the article

The EXIT generation need HELP! indeed…

Don’t you just love it when the Press catch up with what you’ve been saying for some time now… Tony Featherstone has done just that in this fabulous summary on all things WHY you must start considering EXIT strategy and execution right now. Especially if you are as a BusinessOwner coming into the twilight of your care factor… Read on by clicking here

Would you consider this an Opportunity or a Threat to your business and / or that of your clients?

Could early preparation be a Strength?  Or a lack of action a Weakness?

Keep reading by clicking here

 

Success Is Easy, But So Is Neglect – Jim Rohn

Not a truer word spoken…

People often ask me how I became successful in that six-year period of time while many of the people I knew did not. The answer is simple: The things I found to be easy to do, they found to be easy not to do. I found it easy to set the goals that could change my life. They found it easy not to. I found it easy to read the books that could affect my thinking and my ideas. They found that easy not to. I found it easy to attend the classes and the seminars, and to get around other successful people. They said it probably really wouldn’t matter.

If I had to sum it up, I would say what I found to be easy to do, they found to be easy not to do.

Six years later, I’m a millionaire and they are all still blaming the economy, the government, and company policies, yet they neglected to do the basic, easy things.

In fact, the primary reason most people are not doing as well as they could and should, can be summed up in a single word: neglect.

It is not the lack of money – banks are full of money. It is not the lack of opportunity – America, and much of the free World, continues to offer the most unprecedented and abundant opportunities in the last six thousand years of recorded history.

It is not the lack of books – libraries are full of books – and they are free! It is not the schools – the classrooms are full of good teachers. We have plenty of ministers, leaders, counselors and advisors. Everything we would ever need to become rich and powerful and sophisticated is within our reach.

The major reason that so few take advantage of all that we have is simply neglect.

Neglect is like an infection. Left unchecked it will spread throughout our entire system of disciplines and eventually lead to a complete breakdown of a potentially joy-filled and prosperous human life.

Not doing the things we know we should do causes us to feel guilty and guilt leads to an erosion of self-confidence. As our self-confidence diminishes, so does the level of our activity. And as our activity diminishes, our results inevitably decline. And as our results suffer, our attitude begins to weaken. And as our attitude begins the slow shift from positive to negative, our self-confidence diminishes even more… and on and on it goes.

So my suggestion is that when giving the choice of “easy to” and “easy not to” that you do not neglect to do the simple, basic, “easy”; but potentially life-changing activities and disciplines.

To Your Success,
Jim Rohn

So what are you finding easy at the moment … success or neglect?
(excerpted from The Challenge to Succeed CD series)

 

Fear of the Exit… It subsides the closer you get!

As my ex-Lecturer Tom McKaskill notes in his column for Smart Company

It is widely acknowledged that a significant portion of private firms will be coming onto the market over the next 10 years as the baby boomer generation nears retirement.

While some have family members to pass the business onto and others will reach an arrangement with employees to buy out their interests, most will be seeking to sell their businesses. With this background, it is hard to understand why so many fail to confront the issue and fail to undertake business and personal planning to provide the best outcome from such an event.

Some founders simply don’t want to let go of their baby. They have often put the best years of their life into building a robust business and the thought that someone else will take control is impossible for them to accept. While they know that a sale is inevitable, they are simply unwilling to spend any time planning for it because it means they are acknowledging they will be selling their business….

Sound familiar? continue reading

Buyers Showing Interest Across a Range of Businesses; Hurst Partners

Today’s business sales market for small to medium size businesses can best be described in one word – “patchy”.  Not all businesses are in demand and buyers are very selective!

Based on current buyer inquiries the following are industries attracting
the most interest:

HIGH…
Accounting, IT services, aged care/personal care
Profitable businesses operating under management

AVERAGE…
Wholesale, niche manufacturing, online businesses
Generally, businesses with a profit BOS* of $100,000 – $150,000
(* Before Owner’s Salary)

LOW…
General retail, health and beauty, home and trade services
Generally, businesses with a profit BOS*of less than $80,000
A positive development is the increasing buyer interest from cashed up professional investors and corporate entities seeking quality businesses delivering a sustainable profit.

This greater level of activity has yet to translate into improved transaction multiples and higher sale prices. However, it should improve overall market confidence if sustained throughout the rest of the year.

In this “patchy” market, advise business owners to start planning ahead if they are contemplating the sale of their business. Putting in the effort to prepare and market the business for sale will increase the chances of locating the ideal buyer; allowing for the owners to exit the business on their terms.

continue reading

If EXITing your Business is the Plan, What Will Make Yours Stand Out?

As The Infinite Group’s Anne Marie Nayna points out in this article…there are a significant and atypically large number of business owners, born between 1945 and 1955, who are in the process of preparing to sell their business. Business Analysts across the globe, report that the largest transfer of business wealth and assets in history is in the process of occurring. With the average age of a business owner in Australia at 58 years, this will only gain further momentum over the next 5 – 10 years.

If you’re one of these business owners, have you considered who your buyer maybe?  Are you are planning a trade sale, a management buy-out/buy-in?  What other means are available in order to unlock your business’ accumulated worth?  Will the entire consideration be paid on day one or are you prepared to defer a portion in order to achieve a higher price?  What are the tax implications of this sale?

Read the full article

Divorce and your business: six scenarios for after the split…

Many businesses are founded and run by a husband and wife team.
What happens to the business if they divorce?

The ‘clean break’ principle

The Family Court’s position is that whenever possible, there should be a clean break between ex-spouses. This means a property settlement, with the combined asset pool being broken into two chunks. When the assets include a business, the property split can take place in a number of ways

Read the full article.

A story by Greg Parker for mybusiness.com.au

Annoucement: Farewell to aCE talentNET, it’s been a fabulous ride…

As announced in the latest aCE talentNET Professional Edge;

Well, the time has come to bid a fond farewell to all friends and colleagues of aCE.

From this day forward, Denise Hall (ie me!) will no longer be part of the aCE inner sanctum! After 15 years approx, it is time to move on and expand my horizons. Be safe in the knowledge though that Deirdre Gruiters is not going anywhere and aCE is operating business as usual. The only real difference is that I will no longer be behind the scenes.

It has been a pleasure and an honour being part of your working life over this time. Whether you’re new to the community, you’ve been there from the start or something in between, your contribution to the quality of aCE at large is in direct proportion to who you are and what you do. For that I thank you for helping us build aCE into what it is today.

A big thank you also to Karen, Rebecca and Chris, and to all the many aCE associates I have had the pleasure of working with.

A very big and special thank you goes to Deirdre Gruiters, through which much of what we’ve been able to achieve is attributable.

I invite you to stay “connected” through the various social media networks, just click on the one that tickles your fancy!

Buying and selling businesses is my new area of interest, so bear that in mind should it be what you want to do with your business, in time.

Good luck with your future endeavours
Cheers
Denise

read on

KidSpot group SELLS to News Corp for $45 million…

Now here’s a Mother of a Business Sale…

News Corp has purchased web entrepreneur Katie May’s online parenting portal Kidspot for a reported $45 million, in a move that represents a rapid rise for the six-year-old business and highlights how much media companies now value established websites with strong communities

as reported in Smart Company by Patrick Stafford, click here to read the full article.

What’s the Business You’re Selling, Exactly?

Starting a business is a BIG deal. Building it to become more than your hobby is even bigger again. In fact, building your business into an asset may result in it being possibly the largest asset you’ll ever own, or second maybe to your home, as discussed on Westpac’s Ruby Connection

If trying to sell it is what you eventually want to do, then get strategic about WHAT it is you’ve got, how it is someone else could do it and therefore who that special someone might be that will love it as much as you once did. Think about it this way, would you put your home on the market without a little thinking and TLC-driven renovation first? so…

What is the “story” of your Business?
Why did you start it? Who was involved? Are they still with you? What happened to them? How is it legally structured ie Pty Ltd, partnership, sole-trader? Why the Business name? Is it registered? Any trademarks/patents? How long has it been going? Does it look today like you envisaged when you started? Is there still a need for what your Business does? And why? Why should someone love it like you once did?
The evolutionary history, as well as its current story, is all-important.

What does your Business sell?
List everything; not just the features, but the benefits to your consumers as well. Why do your consumers buy from you? Did your Business always do what it currently does? If not, what did it start out doing? What happened? Why did you stop? Why the change of direction? Why the current choice? What other options are open in your market that you haven’t done yet? Who else does what you do?

What financial records does your Business have? (eg: Tax Returns and BAS)
Profit – that’s what a buyer wants to know about. To “prove” that requires “real” paperwork, not just what you can pull out of a financial software package. ATO tax returns and submitted BAS’s, Certificates of Currency for insurances, and reports of any forecasting done is what they’re after. This paperwork is very important to a prospective buyer because that’s what they will base a lot of their “valuation” decisions on. These records provide evidence that your Business is a worthy asset.

Starting with the end in mind TODAY, regardless of how old your business is, means you can start to, slowly but surely, gather and assemble the answers to each one of these questions, to be able to convey to a potential buyer WHAT it is they are buying…

Next… Who?