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Answer Upon - For Business Owners Only - You Can't Be Fired But Neither Can You Quit
For those engaged in sales management and trying to control a group of self-starter type sales people you can just imagine how hard it is. In all the commotion, chaos and controversy they have to manage in shear terror of handling all that is coming at them.Indeed sales management is not for everyone and managing sales is certainly not as easy as it looks, nor is it suppose to be really. Managing on-going sales efforts for a fast moving company, which is fully engaged takes a lot of savvy, strategic planning and a love of the never ending fast-paced game.It is not for the weak and you certainly do not want to put anyone in that position in your company who is of low self-esteem or without a strong sense of personal character. Quite frankly a team of sales people would eat them for lunch and spit out the bones and they would be running your sales department and eventually be serving their own self-interests rather than the forward progression and profitability of the company.The go between we call sales management and manages sales is a special type of person and they are an instrumental part of any company. Sales Management folks who manage sales for your company must be of the highest integrity and must work for the company, the sales people and the sale. Consider all this in 2006.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US ec
You’ve got your business ideas, you know what you want to sell and to whom. You’ve even got enough money to survive for six months. The next bit is easy then. Sorry no it’s not – now the hard grind starts. Here are some business myths that you should be careful not to believe.Starting a new business is easy: Well you have done a lot of the hard work if you’ve done your planning but now you are working for yourself and need to be your own boss. You will need to set clear objectives, work towards them and keep yourself motivated.I won’t have to work so hard: Sorry but entrepreneurs generally work harder and longer hours, particularly at the start of their business life. The difference is that they generally enjoy it and get rewarded for their effort.I’ll be the boss: To a certain extent you will be BUT please remember that your “customer is king”. Look after them and, apart from your bank manager – you are in total charge of your business!If I need more money – I just put up my prices: Should be true, but unfortunately the economic laws say that as prices go up usually the amount of items you sell goes down. There is a limit to what people will pay for an item before they start looking at alternative products or alternative suppliers. You are better to do one or more of the following:1. Make your company more efficient so that your profits go up. 2. Increase your sales by up selling. 3. Sell again to existing custome
Facing the issue of succession or continuation of one’s business is very much akin to addressing the need for life insurance. Neither subject is addressed with much enthusiasm by the average person. The prudent address the inevitable and prepare. Although only one eventuality exists for us as individuals, three exist for our business: Transfer to family, sell to outsider, or close down.
As with the purchase of life insurance, the decision to sell or plan a viable business’ succession can be continually postponed. Unfortunately, when a business must be sold it usually is too late. Few people are willing to buy a business that has to be sold. Of the hundreds of business transfers we have facilitated, less than a handful could be classified as sales for “desperate sellers.”
How have other business owners addressed the continuation of their business? Actually very little is known or documented regarding the succession of private and family businesses. The information available usually pertains to very large companies. Data regarding smaller business transfers and succession is generally not available.
What are business owners’ expectations regarding succession or the continuation of their businesses?
Massachusetts Mutual Insurance Company sponsored a telephone survey of 614 owners of family businesses grossing two million or more in annual revenues. The survey, conducted by the Gallop Organization and designed by Mathew Greenwald & Associates was completed in September 1994. Although the majority of private companies are considerably smaller than the sample (the companies had an average of 50 employees) the opinions of those surveyed should be representative of most business owners.
Questions related to succession expectations revealed: 65% plan to pass the business on to family members or other relatives, 24% do not plan to pass to family members, and 11% are undecided. Only 7% plan to sell or liquidate and 1% plan to pass the business to someone outside the family. Seventy-five percent do not have a written succession plan. MassMutual reports that their survey is the largest of its kind ever undertaken and, since the report’s release it has been hailed as “the most comprehensive piece of information on family business ever produced.” What really happens?
Franchisors are perhaps the best source of information on many issues relating to small business operations as they are intimately and contractually involved in the franchisees’ affairs. The franchisor is therefore an excellent source of information on what happens when a franchisee decides to “move on.” Do their franchisees go in and out of business happily?
Data compiled by Quick Printing (a magazine for commercial print shops and copy shops) may provide insight as to what is actually occurring, not only with franchised print shops, but also private and family businesses in general.
More than 5,000 print shops were represented in the survey. Of that number 302 closed their doors and 93 sold. Three businesses closed for every one that sold! Of the 395 franchisees that “moved on” (eight percent of the total) 76.5% went out of business whereas only 23.5% transferred to someone else.
John H. Brown, author of “How to Run Your Business so you can Leave it in Style” illustrates the conflict between business owners’ expectations for the continuation of their businesses, and the reality of what actually happens.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US eco
Nowadays, everything seems to revolve around plastics. That is, more and more people are finding credit cards as the most convenient way to shopping, whether it is online or not.Hence, with the arrival of credit cards in the market today, most businesses have found its feasible ways when engaging into online business. It has continuously provided online businesses to accept their customer’s payment online. What’s more it makes them accept payments even through phone or fax.But there are still many businesses who kept on wondering what credit card merchant accounts is all about. They even kept on asking how other businesses get to accept credit card payments.There are only two ways how to accept credit cards. These are:1. Establish a merchant account with the credit card companies.It is a must for every business who wants to accept credit card online is to build a merchant account, especially to the credit card companies that the business will be receive credit card payments. The application for this one will vary from one bank to another. That is why it is a must that the company must first learn the primary services of a bank before committing to such service.Also, most banks do not allow new businesses and home businesses to get a new merchant account for fear of some frauds. And so, the best way to gain the bank’s trust is for the company to establish strong relationship with the bank and to maintain a good credit history.2. Third Party MerchantThis third
How have other business owners addressed the continuation of their business? Actually very little is known or documented regarding the succession of private and family businesses. The information available usually pertains to very large companies. Data regarding smaller business transfers and succession is generally not available.
What are business owners’ expectations regarding succession or the continuation of their businesses?
Massachusetts Mutual Insurance Company sponsored a telephone survey of 614 owners of family businesses grossing two million or more in annual revenues. The survey, conducted by the Gallop Organization and designed by Mathew Greenwald & Associates was completed in September 1994. Although the majority of private companies are considerably smaller than the sample (the companies had an average of 50 employees) the opinions of those surveyed should be representative of most business owners.
Questions related to succession expectations revealed: 65% plan to pass the business on to family members or other relatives, 24% do not plan to pass to family members, and 11% are undecided. Only 7% plan to sell or liquidate and 1% plan to pass the business to someone outside the family. Seventy-five percent do not have a written succession plan. MassMutual reports that their survey is the largest of its kind ever undertaken and, since the report’s release it has been hailed as “the most comprehensive piece of information on family business ever produced.” What really happens?
Franchisors are perhaps the best source of information on many issues relating to small business operations as they are intimately and contractually involved in the franchisees’ affairs. The franchisor is therefore an excellent source of information on what happens when a franchisee decides to “move on.” Do their franchisees go in and out of business happily?
Data compiled by Quick Printing (a magazine for commercial print shops and copy shops) may provide insight as to what is actually occurring, not only with franchised print shops, but also private and family businesses in general.
More than 5,000 print shops were represented in the survey. Of that number 302 closed their doors and 93 sold. Three businesses closed for every one that sold! Of the 395 franchisees that “moved on” (eight percent of the total) 76.5% went out of business whereas only 23.5% transferred to someone else.
John H. Brown, author of “How to Run Your Business so you can Leave it in Style” illustrates the conflict between business owners’ expectations for the continuation of their businesses, and the reality of what actually happens.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US ec
An entrepreneur is someone with an uncanny ability to spot hidden opportunity in a business, assume full risk in financing and running it so as to reap inherent profits, thereafter. Entrepreneurship also involve snooping around for profitable opportunities in an existing business, whether it's buoyant or in a state of ailment.Buying over an existing businessThe benefit for investing in an existing business is not only because it may guarantee 'ready-made' customers, but possessing existing infrastructures and credibility and run low-cost investment outlay. However, before this good news can take you to the bank, consider these four factors to point you to the right direction.Do you have a prior knowledge or interest in the business?Having some level of knowledge or interest to learn the intricacies of the business you desire to acquire will put you in a powerful position to run it. For example, if you'd worked for a city-wide restaurant, then buying a similar business will definitely give you edge than a furniture company. On the other hand, there're many smart entrepreneurs known to successfully bought and run businesses vastly different from their primary domain. However, don't take this route until you have garnered enough experience.Why do the existing owners want to sell?This crucial question must be settled even if you discover you will able to launch it into a new profits stratosphere. With diligence, find out if the existing owner decides to 'run away' over credibi
Questions related to succession expectations revealed: 65% plan to pass the business on to family members or other relatives, 24% do not plan to pass to family members, and 11% are undecided. Only 7% plan to sell or liquidate and 1% plan to pass the business to someone outside the family. Seventy-five percent do not have a written succession plan. MassMutual reports that their survey is the largest of its kind ever undertaken and, since the report’s release it has been hailed as “the most comprehensive piece of information on family business ever produced.” What really happens?
Franchisors are perhaps the best source of information on many issues relating to small business operations as they are intimately and contractually involved in the franchisees’ affairs. The franchisor is therefore an excellent source of information on what happens when a franchisee decides to “move on.” Do their franchisees go in and out of business happily?
Data compiled by Quick Printing (a magazine for commercial print shops and copy shops) may provide insight as to what is actually occurring, not only with franchised print shops, but also private and family businesses in general.
More than 5,000 print shops were represented in the survey. Of that number 302 closed their doors and 93 sold. Three businesses closed for every one that sold! Of the 395 franchisees that “moved on” (eight percent of the total) 76.5% went out of business whereas only 23.5% transferred to someone else.
John H. Brown, author of “How to Run Your Business so you can Leave it in Style” illustrates the conflict between business owners’ expectations for the continuation of their businesses, and the reality of what actually happens.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US ec
Change is a fact of life, but that doesn't always mean that we are happy with the change, or that change is necessarily right. For instance, it is often the case that Changes introduced in one part of an organisation with the intention of improving matters, create problems elsewhere. Unchecked, the likely results of this are divisiveness, internal competition and distrust. Again unchecked, a blame culture takes root and empire building develops, and the combination of a blame culture and empire-building takes the entire organisation further and further away from the customer and their requirements. Some people "get lucky"; others are blamed for problems over which they have no control. Management see tends where there are no tends, and miss trends where they exist. Management introduces numerous ‘initiatives’. Changes are made without learning from the past. Any little improvement that results is short lived. Problems remain unsolved. The business suffers.A truthful business analysis will reveal the following. However a traditional management consultant would not consider himself wise to be honest. He needs to please his paymasters.1. Lack of constancy of purpose or ever-changing goals • There is no planning for the long-term future, because the goal posts are repeatedly being moved. Toyota have a 100¬year Business Plan! 2. Emphasis on short-term profits or goals • Everything is focused on achieving the best quarterly results. • Or staying within the budget and meeti
Data compiled by Quick Printing (a magazine for commercial print shops and copy shops) may provide insight as to what is actually occurring, not only with franchised print shops, but also private and family businesses in general.
More than 5,000 print shops were represented in the survey. Of that number 302 closed their doors and 93 sold. Three businesses closed for every one that sold! Of the 395 franchisees that “moved on” (eight percent of the total) 76.5% went out of business whereas only 23.5% transferred to someone else.
John H. Brown, author of “How to Run Your Business so you can Leave it in Style” illustrates the conflict between business owners’ expectations for the continuation of their businesses, and the reality of what actually happens.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US ec
As a business owner, you’ve likely created a hurricane plan for your business and your family, but did you overlook your construction project? Don’t worry, you’re not alone. Most people don’t even think about preparing their construction site because it’s not written into their "construction timeline." But when a hurricane threatens, general contractors usually get panicked phone calls asking about potential damage, delays and cost.You can save time and frustration by contacting your general contractor to discuss their plan before a hurricane strikes. You’ve invested a lot of resources into your construction project, so insist that your contractor safeguard it the same way that you safeguard your home. Here is a guide on what to expect from your general contractor’s hurricane preparation plan:1. Preparation Timing – A construction site has infinitely more hazards than a completed building, so it is reasonable to assume that the site won’t be properly secured in one day. Depending on the size of the project, your general contractor should start preparing your site three to five days in advance of the storm.2. Actual Building Preparation – Your general contractor should complete a structural analysis of your building to assess its weaknesses in the days prior to the storm. Is the roof up? Are any of the frames or trusses exposed? Are the exterior openings exposed? Any work that will help the structural integrity of the building should continue if it can be completed in time (this m
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down.
Small business is continually credited with providing most new jobs, more than half of our gross domestic product, and perhaps 65% of all wages. Small business is the backbone of the US economy. A mortality rate of 75% among this most important group is a national tragedy. Why Don’t Businesses Business Owners Sell?
The largest single reason that most businesses are not sold or transferred seems to be that the owners never made the decision to do so. If you do not make the decision to sell or select a successor, outside forces will eventually combine to determine the ultimate fate of your business. In defense of those who have not been able to come to a decision regarding business succession, we offer the following:
1. Business owners know they are missing important information in connection with selling.
2. To take action without a full understanding of “the rules of the road” would be foolhardy.
Most Businesses can be Sold
Our experience, gained in assisting more than 2,000 business owners with succession decisions and business transfers, indicates that essentially every business can be sold if:
1. Ownership fully understands the unique environment in which businesses are sold, and therefore avoids the costly mistakes of employing traditional sales methods to sell their business.
2. Ownership recognizes the natural cycle of business ownership (a time to grow and a time to go) and makes a timely decision and preparations to sell.
3. Those involved in the decision understand that the motivations to sell are personal and not purely financial.
4. The company is properly prepared for sale before marketing efforts begin.
5. The “right buyer” and the optimum price are identified before going to market.
A timely decision to sell, coupled with proper preparation and a comprehensive understanding of the unique rules and selling environment, is required for a business to transfer successfully. Obtain Necessary Information “I am considering the sale of my business” is the initial phrase we hear most often from business owners. Very few will tell us they have decided to sell. This is understandable as information is required before an informed decision can be made. Those that do proclaim to have decided to sell, generally have waited too long, and have nothing left to sell. Life insurance agents are not enthusiastic when someone calls out of the blue to buy life insurance. Ninety-nine times in one hundred that person has just left his doctor’s office with the bad news. You cannot buy insurance on a burning building. You cannot sell a business for an optimum price when you are compelled to sell. You can, of course, always liquidate or give the enterprise away. Is that what you would choose to do? Information Needed The following are the questions most commonly asked when selling is considered:
• What is my business really worth?
• How can I find the right buyer and still maintain confidentiality?
• Are there steps I can take to increase my company’s value?
• How long does it take to sell a business?
• Are there buyers out there with the money I want?
• Will I have to finance part of the sale? If so, how much?
• If I do, how can I be assured that I receive my money?
• What will I do after I sell?
• How much money would I have after the sale?
• What is an ESOP? Is it something I should consider?
• What would I do if I could not get my price?
• Perhaps a big company would buy my business. Would I have to stay on for long? Would they keep my employees?
• What expenses are involved in selling?
• What kind of investigation will a buyer want to perform?
We have developed a “Sell Your Business Tool Kit” that may be found at www.howtosellasmallbusiness.com to help business owners address t
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