Women's Business Blog

Raise your hand if you know of someone who owned a business and closed it down for one reason or another. This happens much too often. Research suggests 4 out of every 10 businesses ends up closing down rather than selling.

As a business broker, and more importantly, as a former small business owner who grew several small businesses and sold them this is how you are going to do it!

Lesson #1 - develop  a business plan – a roadmap telling you where you are going – perhaps I should say GPS system to be current – but in any case a layed out plan for where you are going – that system needs to be given a destination - an exit – letting you know where and when to get off.

There can be great variables in each step. So, it is key that you start as early as possible if you want to exit successfully.

Companies with a plan learn that there is a timeline for the business and a timeline for the sale.  Thinking about your exit strategy from the very beginning will maximize your value regardless of the business conditions at the time of sale

Lesson #2 - plan for the process to take time. You will need 3 years of P&Ls and tax returns for potential buyers. Some business owners treat their companies like an ATM machine. Taking out cash anytime, any place for anything. If your books don’t look like they support your business a buyer sees a red flag. The financials can be recast to show the true income and expenses, but this doesn’t help you make the case for your price. So keep clean books.

Even when a buyer is found it takes time for the terms to be negotiated.

Some times this can go quickly if the seller wants to change careers/retire and/or move on and the buyer wants to completely takeover. But if employee contracts, seller finance, non-competes and many other variables are in question this can take more time.You need time for due diligence to be completed.

Lesson #3 - pricing your company. Your broker will analyze your business and compare it with other sales of similar companies and perhaps evene get a third party appraisal. Remember that it is not what you ask for your business that matters it is what a buyer will pay for it.

With the appropriate valuation you will be able to get the right price for your company, but remember the terms and conditions of the sale are just as important. 

Lesson # 4 -confidentiality is the hallmark of the business brokerage business.

As they say:

“What happens in the business broker’s office stays in the business broker’s office”

But unlike Vegas, selling your business should not be a gamble. Selling your business should be a well thought out plan designed for you to win. Don't worry about word getting out that your business is for sale. In the business world - everything is for sale at the right price. You've put your blood sweat and tears into your business, so when the plan, time, price and conditions are right you are ready to cash out and then you can shout it to the rooftops.

 

There has never been a more difficult time in our history, at least since I've been around, to not only grow a business, but to sustain it. The banks have their grips tight around our money -- yes, I said our money. Whether your business has money in the bank or not, the money in the bank is taxpayer money and that is YOUR money. So if you feel angry you have every right to feel that way. But, this blog isn't about getting angry it's about getting even, or better said - finding the money you need in this economy to grow and thrive. The money is out there if you take the time to reach out to the appropriate resources. Women business owners must read Growing Your Business and carefully review each site linked there to find the source that most closely matches your current need. As I coach my clients, when looking for money you must understand not all money comes with the same obligation. You should research carefully and take your time before making a decision about accepting a grant or a loan. Some of the reasons business owners are in trouble now are because they didn't take the time to question the scope of the long term liability the last time they screamed SHOW ME THE MONEY. Nevertheless, don't wait another day to go online today to sites linked above. Some of the wonderful links included are resources such as: small business administration and count me in and more.

First, before you don that cape you must be able to juggle work and family. So, get out your cell phone and try balancing it on your shoulder while you diaper a baby. Even if you don't have children this is a great exercise for becoming a superwoman. Second, go to your closet and begin dressing in the perfect outfit that will take you from the school play, to the office boardroom, to the partner meeting, to the after work cocktail reception with potential new clients, to the dinner with a new interested boyfriend/playmate (you-know-what-I-mean-friend)-the outfit that says I am woman hear me roar. And third, find your voice. Every superwoman must find her voice and make sure that she is heard at the office, at home and everywhere in-between. She needs to speak up and make sure that her ideas are not only heard loud and clear, but often accepted and applied and executed. In my experience a superwoman is not born she is coached. Before I was able to put on my cape, I had a lot to learn. My first coach was my Dad. When I was 5 years old he told me, "Vicki, you get up there and give a speech, and I did, and I have been talking ever since. I found my voice that day. So I put on my cape and I've been out recruiting other Superwoman of the world.

Your dream is to start your own business. You have spent your entire business career working for others and in every job you feel as though you can do it better. You believe you are smarter, have a greater work ethic and can make more money if only you were your own boss. You know how to get the job done because you are the one who executes. But do you know how to run a business? Do you know what it takes to build a brand, hire and manage employees, make the day to day decisions that come with owning a company including such mundance tasks as answering the phones, responding to customers and vendors, paying the bills, keeping product in stock, executing services, finding time for marketing and delivering your stock and trade etc. etc.You guessed it - it takes more than a good idea to launch a business and keep it going. Here are 10 Success Strategies for Women Entrepreneurs that will get you thinking in the right direction. I suggest you write one down each day and focus on how it will change how you work. Finally, I would add to this list the importance of learning how to toot your own horn. Every day take some time to say something positive about yourself to co-workers, to higher-ups, to the media, if possible, and any one else you meet. If you don't promote yourself who will. And, if you truly want to be a successful entrepreneur you need to know that the number one thing you must accomplish is self promotion.

I start each year off with resolutions - particularly business resolutions. Let me share mine with you: First, multitask less and focus with more clarity at work; Second, spend time blogging and connecting with social media sites daily; Third, mentor businesswomen who reach out to me and connect them to women's organizations that can benefit them and their businesses; Fourth, speak often to younger women about their need to speak up and out about unjust gender bias at work when they see it; and finally, fifth, offer my time and talents to a nonprofit that can benefit from my experience. I believe that "when you walk with purpose, you collide with destiny".