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
Wednesday, February 27, 2008
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.
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