I sat down with a prospect the other day who was looking to sell her business. When I asked her what her main reason for selling was, she told me that she has never made more money before in her life yet she still has nothing to show for it.
Translated: She had tremendous revenues and even greater expenses. Part of her problem was the unrealistic expectation that she could just start a business and treat it like a job where she was the boss. A good company has systems and processes. It also has a great deal of complecity over and above being one of the best employees and being the boss at the same time.
This business owner was so deeply involved in day to day operations that she could not have been a good manager of the business. She was working in the business and not on the business. At some point she will need to start working her way in to a management and ownership role instead of owning a job. Her mindset should be that of an individual creating an asset to sell instead of an employee looking for job flexibility.
Do you have a job or do you own a business? Define your exit strategy now so that you can leave the business as a wealthier person in the future.
Monday, March 3, 2008
Wednesday, February 27, 2008
What is my Business Worth?
Most business owners have no clue what their business is worth. I guarantee you that they have a number in mind and it is usually higher than actual value.
The answer to the question is: Your business is worth what somebody is willing to pay for it. Have you ever seen those car auctions on television? The ones where celebrities are roaming the floor and obviously arrogant rich people are exuding an aura of self grandeur? If not not then I am sure that I have accurately painted a picture for you. These are the auctions where a 1972 American muscle car will go for $90,000 and the same muscle car goes $20,000 in Auto Trader. What is the car really worth? Its obviously hard to say from this limited amount of information, but rest assured there is snowballs chance in hades that an Auto Trader reader would pay $90,000 for the car.
You don't have to subscribe to Entrepreneur Magazine or Inc. Magazine to know that a business losing money is not a good investment on the surface. There may be circumstances where a buyer would pay top dollar for a business losing money. Perhaps the company has contracts in place that would allow a new buyer access to a tough market to gain access. Once again the value is in the details. In this scenario, the buyer is in essence paying the Muscle Car Auction Premium, where as most potential buyers would be ready to pay Auto Trader Pricing.
Determining the asking price for a main street business has a lot to do with the performance of the business and not so much about the intangible benefit it might bring a buyer. Cash flow is king and you should focus on maximizing your profitability to command the highest price possible.
Request a business valuation at http://www.go4big.com/form_viewer.html?formid=41
The answer to the question is: Your business is worth what somebody is willing to pay for it. Have you ever seen those car auctions on television? The ones where celebrities are roaming the floor and obviously arrogant rich people are exuding an aura of self grandeur? If not not then I am sure that I have accurately painted a picture for you. These are the auctions where a 1972 American muscle car will go for $90,000 and the same muscle car goes $20,000 in Auto Trader. What is the car really worth? Its obviously hard to say from this limited amount of information, but rest assured there is snowballs chance in hades that an Auto Trader reader would pay $90,000 for the car.
You don't have to subscribe to Entrepreneur Magazine or Inc. Magazine to know that a business losing money is not a good investment on the surface. There may be circumstances where a buyer would pay top dollar for a business losing money. Perhaps the company has contracts in place that would allow a new buyer access to a tough market to gain access. Once again the value is in the details. In this scenario, the buyer is in essence paying the Muscle Car Auction Premium, where as most potential buyers would be ready to pay Auto Trader Pricing.
Determining the asking price for a main street business has a lot to do with the performance of the business and not so much about the intangible benefit it might bring a buyer. Cash flow is king and you should focus on maximizing your profitability to command the highest price possible.
Request a business valuation at http://www.go4big.com/form_viewer.html?formid=41
Thursday, February 21, 2008
2008 Daytona 500 - celebrate small victories
This year's Daytona 500 came down to a fantastic finish with Penske Automotive taking the top two spots. It is the first time in Roger Penske's storied racing history that he won the Daytona 500 as a car owner.
A big reason for the victory by Penske driver Ryan Newman was the support of his team mate Kurt Busch. Kurt Busch had an opportunity to try and pass Ryan Newman who was running in second place, but there was no guarantee that he would have passed him. It was also likeley that if he did try that move, neither he nor team mate Newman would have been able to pass race leader Jimmie Johnson. It was more likely that they both would have slipped back to third and fourth place.
Kurt Busch chose to push Ryan Newman in to the lead then take his chance to pass him. By doing so he finished second and his appreciative team mate won the race.
As business owners we sometimes risk a lot for the possibility of a huge success rather than give up a little for a very respectable success. Focus on achieving small victories every day and in the long run you will finish further ahead than if you always go for big wins.
What small victory did you celebrate today?
A big reason for the victory by Penske driver Ryan Newman was the support of his team mate Kurt Busch. Kurt Busch had an opportunity to try and pass Ryan Newman who was running in second place, but there was no guarantee that he would have passed him. It was also likeley that if he did try that move, neither he nor team mate Newman would have been able to pass race leader Jimmie Johnson. It was more likely that they both would have slipped back to third and fourth place.
Kurt Busch chose to push Ryan Newman in to the lead then take his chance to pass him. By doing so he finished second and his appreciative team mate won the race.
As business owners we sometimes risk a lot for the possibility of a huge success rather than give up a little for a very respectable success. Focus on achieving small victories every day and in the long run you will finish further ahead than if you always go for big wins.
What small victory did you celebrate today?
Wednesday, February 6, 2008
5 tips to succeed as an entrepreneur
Do you ever follow the links on the google ads to see what it might bring? I followed one of the ads on my blog and found this bit of info from http://www.oneyearplan.net
1. Break It Down:
If you have a large task to tackle, it is always easier when you break it down into smaller components. You'll find it easier to focus because you won't feel as overwhelmed. For example, 'Register a business name' can be broken down into: 'Think of five business name ideas', 'Find out how to register a business name', 'Get registration form' and so on.
2. Keep A 'To Do' List:
Once you've broken down major tasks into smaller ones, make and keep a 'to do' list. Always keep a note pad and pen with you so that you can jot down any new ideas as they arise.
3. Schedule Your Time:
Every evening, decide on three to five tasks on your 'to do' list that you wish to accomplish the following day. Stay focused on these tasks and only move on to the next tasks on your list once these have been completed.
4. Set Goals:
This is critical. There is nothing that will keep you more focused than setting goals and writing out your goals. Visualize exactly where you want to be in a month, six months and a year. In a month's time, do you want to have registered a business name and have a fully functional home office set up? In three months time, how many clients or team members do you want? How much revenue do you want to generate in a six month's time?
5. Say No:
Be assertive and carve out more time for your home business. Saying ‘no' to that extra demand by your boss every once in a while can get you home one hour earlier a couple of days a week.
How about cutting back on the amount of housework that you do? How about watching less TV? Thats a BIG time zapper. Imagine how you could channel that extra time into your home business enterprise...
If you put these 5 tips into practice, you'll definitely find it easier to focus and stay razor sharp so you can achieve your ultimate goal of working from home and putting more LifeStyle back in your life.
Fantastic advice from an entrepreneurial site
1. Break It Down:
If you have a large task to tackle, it is always easier when you break it down into smaller components. You'll find it easier to focus because you won't feel as overwhelmed. For example, 'Register a business name' can be broken down into: 'Think of five business name ideas', 'Find out how to register a business name', 'Get registration form' and so on.
2. Keep A 'To Do' List:
Once you've broken down major tasks into smaller ones, make and keep a 'to do' list. Always keep a note pad and pen with you so that you can jot down any new ideas as they arise.
3. Schedule Your Time:
Every evening, decide on three to five tasks on your 'to do' list that you wish to accomplish the following day. Stay focused on these tasks and only move on to the next tasks on your list once these have been completed.
4. Set Goals:
This is critical. There is nothing that will keep you more focused than setting goals and writing out your goals. Visualize exactly where you want to be in a month, six months and a year. In a month's time, do you want to have registered a business name and have a fully functional home office set up? In three months time, how many clients or team members do you want? How much revenue do you want to generate in a six month's time?
5. Say No:
Be assertive and carve out more time for your home business. Saying ‘no' to that extra demand by your boss every once in a while can get you home one hour earlier a couple of days a week.
How about cutting back on the amount of housework that you do? How about watching less TV? Thats a BIG time zapper. Imagine how you could channel that extra time into your home business enterprise...
If you put these 5 tips into practice, you'll definitely find it easier to focus and stay razor sharp so you can achieve your ultimate goal of working from home and putting more LifeStyle back in your life.
Fantastic advice from an entrepreneurial site
Monday, February 4, 2008
Be like Tom Coughlin not Bill Belichik
Several years ago Jack Welch commented on the magnificent leadership skills of Bill Belichik. I completely agree with that assessment. It was stated that .."Belichick happens to run a football team, but his job description is much the same as any leader or manager: He has to recruit talent, lay out a vision, and motivate his staff to execute on that vision."
The same skill requirements belong to all of the coaches in the NFL. It is difficult to motivate a large group of multi-millionaires to push themselves beyond the point of their self perceived physical limits. At the same time you have to deal with some extremely bloated egos.
Why then would I say be like Coughlin and not like Belichik? Adaptability. Small business owners need to be nimble and adaptable when it comes to operating in the local economy. Tom Coughlin has been labeled as a strict disciplinarian. Many of his players past and present have struggled with his bristling style. Not much different than Belichik in some respects. The difference is the fact that Coughlin did what he had to do toward the second half of this season. He became personable and approachable. He became supportive while being a disciplinarian.
Coughlin and his Giants were looked down upon when they were 0-2 after losing to the top teams in the league. He kept his team together and ultimately went 14-4 from that point forward. He had adapted his style and in each case when facing a team in the playoffs that they had lost to during the regular season, he made the adjustment and won.
Belichik has the appearance of an unwavering, uncompromising individual who in the end did not adapt to conditions and lost the opportunity to become the winningest team in NFL history.
As a small business owner, you need to be able to adapt and overcome or else you will ultimately lose in the end. Be like Coughlin not like Belichik.
The same skill requirements belong to all of the coaches in the NFL. It is difficult to motivate a large group of multi-millionaires to push themselves beyond the point of their self perceived physical limits. At the same time you have to deal with some extremely bloated egos.
Why then would I say be like Coughlin and not like Belichik? Adaptability. Small business owners need to be nimble and adaptable when it comes to operating in the local economy. Tom Coughlin has been labeled as a strict disciplinarian. Many of his players past and present have struggled with his bristling style. Not much different than Belichik in some respects. The difference is the fact that Coughlin did what he had to do toward the second half of this season. He became personable and approachable. He became supportive while being a disciplinarian.
Coughlin and his Giants were looked down upon when they were 0-2 after losing to the top teams in the league. He kept his team together and ultimately went 14-4 from that point forward. He had adapted his style and in each case when facing a team in the playoffs that they had lost to during the regular season, he made the adjustment and won.
Belichik has the appearance of an unwavering, uncompromising individual who in the end did not adapt to conditions and lost the opportunity to become the winningest team in NFL history.
As a small business owner, you need to be able to adapt and overcome or else you will ultimately lose in the end. Be like Coughlin not like Belichik.
Thursday, January 31, 2008
Market Like a Politician
These guys can be as slippery as eels at times, but you have to give them credit for one thing - Marketing.
Who is the only person to disagree with Rumsfeld's strategy?
Who has the moral authority because they were an ordained preacher?
Who wants to unite the country with a message of hope and change?
Who has 35 years of experience of fighting for people?
Who has experience in the real economy with real life business experience?
I would be willing to bet that if you have any interest in politics and have been exposed to the debates you can answer each one of these questions correctly.
What's the point? Know your target market. Clearly articulate a message why you are the best choice for that market and repeat the message consistently and often.
Who is the only person to disagree with Rumsfeld's strategy?
Who has the moral authority because they were an ordained preacher?
Who wants to unite the country with a message of hope and change?
Who has 35 years of experience of fighting for people?
Who has experience in the real economy with real life business experience?
I would be willing to bet that if you have any interest in politics and have been exposed to the debates you can answer each one of these questions correctly.
What's the point? Know your target market. Clearly articulate a message why you are the best choice for that market and repeat the message consistently and often.
Tuesday, January 29, 2008
Stand Up or Sit Down
Well once again the folks that we elect to run this country on our behalf never cease to amaze me. We had the state of the Union Address to congress last night and it looked like a bunch of kids at a sporting event.
Stand up when your cheerleader calls out the right cheer. If your cheerleader stands up quickly you stand up quickly to show the other side that you mean it more.
"We support a strong defense" , Republicans stand Democrats sit. We love and respect our troops, quickly now be first to stand. Bag of Bones Pelosi beats a weak hearted VP to her feet. The Democrats must love the troops more. The Republicans on the defensive now. The Cheerleaders and Loud Speaker start a chant Dee-Fense, Dee-Fense, Dee-Fense.
What the heck are these idiots doing? Quit with BS games of pandering and get down to business. There is a strong majority in the middle of this nation's populous that is willing to compromise on issues, but not ideals. We are not ready to Move-On to socialist policies that crush the business community and the spirit of the American entrepreneur.
If you believe in the ideals of this country, then quit trying to create a socialist debacle of a country. Get out of the way of small business. Return power to the local governments. Get your hand out of our wallets. In the end we want our politicians to make a decision. Stand up for an America of the people and for the people or sit down and shut up!
Stand up when your cheerleader calls out the right cheer. If your cheerleader stands up quickly you stand up quickly to show the other side that you mean it more.
"We support a strong defense" , Republicans stand Democrats sit. We love and respect our troops, quickly now be first to stand. Bag of Bones Pelosi beats a weak hearted VP to her feet. The Democrats must love the troops more. The Republicans on the defensive now. The Cheerleaders and Loud Speaker start a chant Dee-Fense, Dee-Fense, Dee-Fense.
What the heck are these idiots doing? Quit with BS games of pandering and get down to business. There is a strong majority in the middle of this nation's populous that is willing to compromise on issues, but not ideals. We are not ready to Move-On to socialist policies that crush the business community and the spirit of the American entrepreneur.
If you believe in the ideals of this country, then quit trying to create a socialist debacle of a country. Get out of the way of small business. Return power to the local governments. Get your hand out of our wallets. In the end we want our politicians to make a decision. Stand up for an America of the people and for the people or sit down and shut up!
Friday, January 25, 2008
Focus, Focus, Focus
With respect to marketing and growing your business, focus is the answer to many of your ills. When you think of focus what comes to mind. For most people it is related to vision. The ability to see clearly. That can be true of the lens in photography it can also be true of your eyesight and the need for corrective lenses to bring clear vision.
What is your business vision? What did you hope to achieve when you went in to business? Some people will respond "make money" and that's fine, but what was the approach? Did you expect to be the best barber in your area? If so then surely the money would follow.(everyone likes a good haircut) What if you wanted to sell baby furniture? What would be the approach?
Whatever your vision for the business, you probably have an ideal buyer of your goods and services. Focus your time, money and energy on getting a message to that group. This is your target market. Most businesses fail in marketing because they try to use a net to fish for business instead of a hook and the right bait. You will end up with a ton of people looking with very few intending to buy.
Get focused on your target market and utilize all of your time,energy and money to attract the exact customer that will use your goods and services.
What is your business vision? What did you hope to achieve when you went in to business? Some people will respond "make money" and that's fine, but what was the approach? Did you expect to be the best barber in your area? If so then surely the money would follow.(everyone likes a good haircut) What if you wanted to sell baby furniture? What would be the approach?
Whatever your vision for the business, you probably have an ideal buyer of your goods and services. Focus your time, money and energy on getting a message to that group. This is your target market. Most businesses fail in marketing because they try to use a net to fish for business instead of a hook and the right bait. You will end up with a ton of people looking with very few intending to buy.
Get focused on your target market and utilize all of your time,energy and money to attract the exact customer that will use your goods and services.
Thursday, January 24, 2008
What a Porn Site
Martin , GO4BIG sounds like some of those e-mails that are flying around the Internet. Or so I was told one time when my e-mail was blocked by a client's server. I was a little offended that anyone would think that my organization would have anything to do with pornography. I guess I can see how they would come to that conclusion. When I look through my spam blocker I see the subject lines that have been changed with symbols to replace letters such as
have better s3x for sex,
Bigger and better results with v!agra for viagra,
Call today for a bigger p3n!s for penis. Okay you get the picture. Well now I sometimes have my valuable e-mails lumped in with the porno e-mails,the Girls,Girls,Girls requests and all the other pornography e-mails.
GO4BIG is an acronym for my unbelievably long corporate name Georgia Organization for Business Improvement and Growth (GO4BIG). It seemed logical to me when I started using it to share my business wisdom with small business owners. The old cliche says that sex sells. In this case my site has nothing to do with sex and I am being blocked from selling even though it has nothing to do with the sex trade.
What I find to be obscene is an electronic system that would block my information because it may be perceived inappropriate by an algorithm, but when people read the name there is no confusion whatsoever. I hope that this post will set the record straight. I am willing to bet that somehow this post will end up on some search lists as pornography because I did use the words sex, penis, girls and pornography in the same page. I hope that I am wrong, but we'll see.
In the meantime if you came across this site because of the business content you are in the right place. Please feel free to sign-up for my newsletter "52 Weeks to a better business" in the sign-up block to the right.
have better s3x for sex,
Bigger and better results with v!agra for viagra,
Call today for a bigger p3n!s for penis. Okay you get the picture. Well now I sometimes have my valuable e-mails lumped in with the porno e-mails,the Girls,Girls,Girls requests and all the other pornography e-mails.
GO4BIG is an acronym for my unbelievably long corporate name Georgia Organization for Business Improvement and Growth (GO4BIG). It seemed logical to me when I started using it to share my business wisdom with small business owners. The old cliche says that sex sells. In this case my site has nothing to do with sex and I am being blocked from selling even though it has nothing to do with the sex trade.
What I find to be obscene is an electronic system that would block my information because it may be perceived inappropriate by an algorithm, but when people read the name there is no confusion whatsoever. I hope that this post will set the record straight. I am willing to bet that somehow this post will end up on some search lists as pornography because I did use the words sex, penis, girls and pornography in the same page. I hope that I am wrong, but we'll see.
In the meantime if you came across this site because of the business content you are in the right place. Please feel free to sign-up for my newsletter "52 Weeks to a better business" in the sign-up block to the right.
Wednesday, January 23, 2008
I'm evaluating a multi-media course on blogging from the folks at Simpleology. For a while, they're letting you snag it for free if you post about it on your blog.
It covers:
- The best blogging techniques.
- How to get traffic to your blog.
- How to turn your blog into money.
I'll let you know what I think once I've had a chance to check it out. Meanwhile, go grab yours while it's still free.
Get a Routine
One the biggest concerns that I hear from my clients and people who have attended my workshops is the inability to get themselves in to a routine. I think that this is true of most people. The benefit of working for a larger organization is the structure that has been created to make all of the moving parts work toward a common goal. Small business owners and self employed people do not have the luxury of an outside entity to create the structure for them. You should create a routine for yourself in order to be more successful. The following steps should be helpful in creating that routine.
- Determine your desired workday. (We'll soon talk about a required workday)
- Start with planning. Create a To Do List. (look at TaDaList.com for a fun tool)
- Determine what needs to be done
- Prioritize the list
- Allow for delays
- Get started
- Review results at the end of the day
- Start the to do list for the following day
This is the basis for a basic routine. I will have more detail on this in coming posts. Start today and handle the basics.
Start at the desired start time each day with the same to do list routine and you will be surprised at how you start feeling a sense of control of your day.
Sunday, January 20, 2008
Time slipping away
It is now past the halfway point in January. In most organizations, the year end results have been calculated and adjustments made to first quarter goals. Where do you stand on finalizing your results? As was mentioned in the previous blog, I believe that the failure to measure results is one of the key reasons that businesses fail.
It is counter intuitive to think that a business owner who claims to be in tune with their business so well that they don't need to formally measure their results. It is through measurement and reporting that business owners can become more intimately involved with the performance of the business.
Start today with the measurement program. Ensure that you have entered all of your 2007 cost items in your accounting software. Categorize the expenses and then run your end of year reports. Closely analyze your expenses and set a budget for the 2008 year by month.
This is usually the point where most business owners start to balk. Why do I need to do all of this they ask? Isn't that overkill for a small business they will ask? It is not overkill and no you don't have to do it. You will do it because it is good business for those that want to be successful. The choice to succeed is yours.
Time is slipping away. Run your reports, give yourself the best chanceto be successful!
It is counter intuitive to think that a business owner who claims to be in tune with their business so well that they don't need to formally measure their results. It is through measurement and reporting that business owners can become more intimately involved with the performance of the business.
Start today with the measurement program. Ensure that you have entered all of your 2007 cost items in your accounting software. Categorize the expenses and then run your end of year reports. Closely analyze your expenses and set a budget for the 2008 year by month.
This is usually the point where most business owners start to balk. Why do I need to do all of this they ask? Isn't that overkill for a small business they will ask? It is not overkill and no you don't have to do it. You will do it because it is good business for those that want to be successful. The choice to succeed is yours.
Time is slipping away. Run your reports, give yourself the best chanceto be successful!
Friday, January 18, 2008
Measure It
I attended a Sales Partners Worldwide Seminar last night and it was time well spent. Blair Singer was the featured presenter and he was a pleasure to listen to. There were many things that he discussed that are probably common knowledge within sales circles, but it is his mindset that is a differentiator.
He is a big believer in team and accountability. I appreciated hearing that message, because it is fundamentally how I live my life and coach my clients. It was probably when I first started playing sports as a youth that I learned the benefit of team work and accountability. A well coordinated team effort would out perform a group effort of more talented individuals most of the time.
That brings me to the purpose of this message. How can you determine how well you are doing if you don't measure the results? The answer is you can't determine the results if you don't measure the performance. That which you measure will improve. The assumption there being that you react to the results.
Follow this basic system to see where you stand and what you need to do.
He is a big believer in team and accountability. I appreciated hearing that message, because it is fundamentally how I live my life and coach my clients. It was probably when I first started playing sports as a youth that I learned the benefit of team work and accountability. A well coordinated team effort would out perform a group effort of more talented individuals most of the time.
That brings me to the purpose of this message. How can you determine how well you are doing if you don't measure the results? The answer is you can't determine the results if you don't measure the performance. That which you measure will improve. The assumption there being that you react to the results.
Follow this basic system to see where you stand and what you need to do.
- Pick the element: (Sales, Cost, Marketing, Service Levels, etc...)
- Baseline your current performance (Where are you today?)
- Set your goals (Where do you want to be?)
- Take action (You know what to do, just do it!)
- Measure your results. (Daily, Weekly,Monthly,Quarterly,Annually)
- Readjust your activities. (Do More, Get Help, Get Focused)
- Repeat steps 5 & 6 until you have achieve your goals.
If I learned anything from my seminar last night it was the need to measure my own activities. As a small business owner, I am constantly in need of a check-up. Most of the time it is a check-up from the neck up that I need most.
Select your issue and get started.
Thursday, January 17, 2008
Success in 2008
It is now 2008 and the election season is in full swing. What a bunch of hooey if you ask me. The media machine is running all over the free will of the American people. How is it that Rudy Guliani was once the front runner in national polls, but because he didn't go hang out in people's living rooms in Iowa, he is no longer considered a viable candidate. Don't get me wrong. I am not so much pulling for Rudy as I am someone who will shake up the system. We need someone who can create an environment that is friendly for small business. How about a ticket that has Romney for Prez with all of his business savvy and Huckabee with his fair tax philosophies.
Irregardless of the silly season of politics I wish the media would quit trying to talk us in to a recession. The small business community will carry the load for the media created slowdown. We need the American people to choose some folks that want to shake up Washington and create a fair tax that will rid the power brokers of their addiction to tax breaks for the special interest and lobbyists.
Irregardless of the silly season of politics I wish the media would quit trying to talk us in to a recession. The small business community will carry the load for the media created slowdown. We need the American people to choose some folks that want to shake up Washington and create a fair tax that will rid the power brokers of their addiction to tax breaks for the special interest and lobbyists.
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