Inaugural Podcast- #HarryDent Sees The Bubbles Coming...

re: An hour in the brain of Harry Dent

 

by Heath Frantzen
Delta Business Services

Are you ready for the inevitable demographic cliff that will occur as the #BabyBoomer generation heads for the exits?

Do you understand the boom/bust cycles that defy every government effort to control them and which threaten your wealth?

Is it time for you to sell your business while you can and get the most money possible for it or should you take your chances and wait a few years?

Economic trend forecaster and author Harry Dent joined me on my very first podcast to answer these and other important questions. 

You'll enjoy Harry's lively, sometimes controversial takes on investing and preserving wealth in an insane economic climate and how he uses demographics to accurately chart a course out of this mess.

Check out the archived interview here:

http://www.blogtalkradio.com/exityourbusiness/2014/09/26/business-exit-roundtable-demographic-expert-harry-dent

File under: #harrydent, #economy, #timetosellyourbusiness, business selling strategies in 2014, harry dent predicts bubble in real estate, best financial strategies in 2014, #businesspodcasts, delta business services

How to Attract Quality, Motivated Buyers for Your Business

re: attracting the right kind of quality buyer for your business

by Heath Frantzen
Delta Business Services
www.deltabusinessservices.com

If you are a baby boomer business owner considering selling your small business in the next few years, then you need to know exactly how to attract your ideal buyer.

Many baby boomers will be selling in the next decade and it will definitely be a buyer's market.  Do you know how to create value within your business to make it irresistible to potential buyers?

How do you get the attention of qualified buyers in a market overrun with cash-producing businesses?

Our free report, written from the perspective of a veteran business buyer, will give you actionable strategies for selling your profitable business, even in an unpredictable marketplace.  You can get it for free right now by going to:

http://www.mediafire.com/view/v245ljf8bpwugyq/howattractqualitybuyers3.pdf

File under: Baby boomer business owner resources, baby-boomer-businesses, how-sell-small-business, avoid-business-brokers, get-more-money-when-selling-your-business

Check out my latest radio interview with Exit Coach Radio

re: Exit Coach Radio interview..


by Heath Frantzen
Delta Business Services

Recently, I had an opportunity to sit down with "The Exit Coach," Bill Black, to discuss some of the daunting problems faced by baby boomer business owners who want or need to sell their businesses and retire.

It doesn't require an MBA to look at the data and determine that, at least for the next 20-25 years, the wave of boomers trying to sell is going to create an unparalleled buyer's market.

Bill and I looked at some of the challenges boomers will face in attracting the kinds of buyers they need for a successful sale and I offered some viable solutions.

Check out the interview and let me know what you think.

9 Mistakes Plumbing Company Owners Make When Selling Their Businesses

If you are the owner of a plumbing company, then you are probably like many other business owners.

You realize that you can't work forever. In fact, it may be that you do not WANT to work forever despite enjoying what you do.





Even the most successful plumbers eventually get to the place where they are ready to hang up the wrench and do something different.

You may be burned out from the daily stresses of running a business, have physical or family issues that demand more of their time, or they simply want to move on to a new challenge.

However, for many plumbing company owners who are thinking about selling their successful businesses, it's difficult to find the time to sit down and map out a strategy for exiting the business.

If you own a successful plumbing company, you probably don't have a plan in place that will facilitate your goals of selling your business quickly, without a lot of hassles, while creating a lifetime stream of income from the proceeds.

A significant portion of your retirement planning is likely predicated on the sale of your business. Exiting a business is truly one of life's most important transitions; a transition whose outcome can make or break your retirement future.

That's why it is so important to create an action strategy that will help you avoid making mistakes that can result in you running out of money in retirement.

But, do you know exactly what it will take to create such a sale? When the time comes to leave will you become so frustrated, overwhelmed and desperate that you make poor decisions that will cost you lots of money?

Knowing the answers to these questions is important, especially if you are nearing retirement and more than ready to start the process of selling your business. You must seek solutions that promise a better, more financially lucrative and less stressful way of achieving your selling goals.

Plumbing company owners who want to sell in the 21st Century must seek alternative systems for selling a business that address some of the common mistakes owners make when they try to sell their companies.

I say "try" because more often than not, sellers wind up either not selling at all or having their businesses sit on the market for months, even years, before they find a qualified buyer. Even if they do manage to find a good buying prospect, there are currently so many businesses on the market that they may wind up getting a lot less money than anticipated.

9 of the most common business exit planning mistakes plumbers make and how to avoid them:

It is not uncommon for plumbing company owners to have no exit blueprint at all. They usually either haven't given it much thought or they make assumptions about the future that may not be true.

1. Not planning at all
As the old saying goes, "it isn't a plan until it's written down." For a succession plan to be effective and implementable, it MUST be written down and reviewed by all parties involved. A plan must be clear, concise, and free of ambiguities that could cause problems later.

Read the rest of the article at : http://EzineArticles.com/8504903

Why crafting a mission statement in the beginning of your business is crucial to a successful ending

 by Heath Frantzen

Delta Business Services

“I believe that purpose and principle, clearly understood and articulated, and commonly shared, are the genetic code of any healthy organization. To the degree that you hold purpose and principles in common among you, you can dispense with command and control. People will know how to behave in accordance with them, and they’ll do it in thousands of unimaginable, creative ways. The organization will become a vital, living set of beliefs.” - Dee Hock

One of the most oft-repeated pieces of business advice ever was written by author and corporate trainer Stephen Covey, who admonished us to “begin with the end in mind.”

Covey believed that the critical piece of beginning at the end involved a carefully conceived and constructed mission statement.  He observed:

“If you don’t set your goals based upon your Mission Statement, you may be climbing the ladder of success only to realize, when you get to the top, you’re on the WRONG BUILDING.”

Covey posited that there is a two-step creation process for all things: a mental creation and a physical creation that follows the mental just as a building follows a blueprint.  If you fail to develop a firm visualization of who you are and what you want to get out of life, you give carte blanche to others to define you, mold you,  and impose their visions on your life.    

The default setting for having no understanding of your own uniqueness, values, and personal guidelines is to be forever at the mercy of the whims of those around you.

This is certainly true for business owners and you can see it happening all the time.

Without even realizing it, business owners who have developed no clear idea of who they are or what they want their business to become often find themselves limping along, putting out fires, and stuck in survival mode.   

They can barely get through the present; much less put any thought into the future.  Most of them have no plans in place for the day when they will want or need to leave the businesses.

Often times, the lack of business succession planning can be directly linked to the fact that the business never had a personal mission or purpose statement in place.

Many small to mid-sized business owners balk at the idea of developing a personal mission statement, believing it to be some kind of New Agey fluff or a high-minded exercise for the Fortune 500 crowd.

However, research has shown that truly successful people have clarity of thought and purpose and a well-defined sense of who they are in the world.  They tend to see themselves as a brand to be developed, nurtured and cultivated

(get the rest of this free report at http://www.deltabusinessservices.com )

What Funeral Directors Must Know Before Selling Their Business To A Competitor

by Heath Frantzen
Delta Business Services.com

 
"I have a very highly developed sense of denial"- Gwyneth Paltrow

Nearly every study done on business succession readiness indicates that 70% or more of all small and medium business owners have no written exit plan in place.
Funeral business owners are no exception even though they know, perhaps better than anyone else, the high cost of failure to plan.

As a funeral director, you are confronted daily with painful and stressful conditions that occur when your clients don't make plans and are forced to make important decisions under duress. You probably also realize that most of this failure to plan can be traced to human beings' intimate relationship with denial.

Denial is a powerful, double-edged sword. On the one hand, it helps us cope with devastating occurrences that come our way. On the other hand, it often leads us to eschew preparation and planning in favor of crossing our fingers and hoping for the best.

Funeral directors succumb to denial just like anyone else; putting off much-needed business succession planning in lieu of a "wait and see" approach.

While most funeral business owners express an intense desire to see the businesses into which they have poured so much of themselves continue after they have retired, few have a plan in place to make that happen.

Without such pre-retirement planning, owners are opening themselves up to situations which can severely compromise their ability to sell their businesses for enough money to retire.
Many of them believe that when the time comes to walk away from the business, they will be able to sell the business quickly to a competitor for a nice price.

Why Selling to A Competitor Isn't Always A Good Idea
Over the past few years, large corporations have been buying up individually owned funeral homes in record numbers. Many directors have balked at this trend and are not interested in becoming a part of a "McBurial" chain.

It's natural, then, that when the time comes for those directors to retire; they look for other independent mortuary business owners to whom they can sell their profitable business.
However, before selling your business to a competitor, be sure you understand some of the potential adverse consequences of such a sale.


1. The would-be buyer's interest may not be genuine. In many businesses such as funeral homes, it is not uncommon for another business owner to feign interest in purchasing a competitor simply in order to gain inside information. By posing as a prospective buyer, competitors may hope to get access to your trade secrets, marketing techniques, or customer lists.
You must not give way any sensitive data until you have done due diligence and are satisfied that the prospect is genuine. One way to do this might be to ask for proof that they have the funds available to make such a purchase. ALWAYS ask potential buyers to sign a non-disclosure agreement that has been reviewed by your attorney. This can serve as a deterrent to "fakers" and protect your trade secrets during the selling process. You might also want to ask others you trust in your business about the reputation and integrity of the competitor who wants to purchase your business.

2. Competitors sometimes have a "low-ball" game plan. Selling to a competitor means that you are selling to someone who ostensibly has as good an insight into the funeral industry as do you. He or she has knowledge specific to the business that allows them to justify offering you less that the most desirable price.

For instance, competitors understand all the stresses and headaches unique to the funeral home owners; they understand the "buttons" that can cause an owner to want to sell. Because they can read you and your situation, they are not as likely to want to give you your price as an equity fund or individual buyer. Additionally, because they can perform the same services as you do, they often try and carve out the "good will" part of the business valuation.

(SEE THE REST here: http://ezinearticles.com/?What-Funeral-Directors-Must-Know-Before-Selling-Their-Business-To-A-Competitor&id=8474089)

FILE Under: funeral-director-business, #selling-funeral-homes, selling-mortunary-business,  how-sell-funeral-business, baby-boomer-business-owners, how-funeral-home-owners-can-sell-their-businesses-more-money-less-stress, funeral-home-business, selling-your-funeral-business

Why 2014 Could Be a Great Year to Sell Your Business

In the entrepreneurial ecosystem, business owners looking for an exit strategy are likely to find 2014 an optimal year for selling.- Peter Lehrman, Entrepreneur Magazine

By Heath Frantzen
Delta Business Services


Timing any market is always a tricky proposition, especially in this era of diminishing returns and lowered expectations.  The market for selling a small to mid-sized business is no exception.

Anyone considering selling a business, especially boomer business owners thinking about retirement, should have a list of compelling reasons why they want to sell and a plan to help them do so.


For most business owners, the timing will never be perfect, so waiting until the ideal moment to sell could be an impractical course of action.

However, certain indicators are pointing to a better than average success rate for selling a business in 2014.  That’s why it’s a good idea to employ strategies right now that will help you get the maximum money for your business.

2014:  The “Year of The Seller?” 

Three or four years of turmoil in a struggling economy makes some business owners understandably cautious when it comes to optimistic projections for 2014.

However, there are some very good indicators pointing to the possibility of a perfect selling environment for at least the next 18 months or so. 
 
For example:

 

• The majority of businesses have experienced increased profitability for the past 2-3 years.

For numerous business owners, 2008-2010 were flat as far as profits were concerned.  Those who survived this period felt lucky to break even, much less put profits on the books.   With demand down across the country for services and solutions, business owners were unhappily treading water 

However, the recession is slowly retreating, allowing businesses to recover.  Many are now in a position to show the three or four years of solid growth that qualified buyers want to see when they build projection models.

The ability for a company to demonstrate upward trends in their financials shows prospective buyers that it is right to make positive projections for future growth.  This in turn gives owners better valuations and does wonders to make the deal viable.  Buyers want to know that a business they purchase is poised to survive even a serious economic downturn.

•     Low interest rates (for a little while longer, anyway)

You don’t have to have an advanced degree in economics to understand that the artificially maintained low interest rates we now experience will soon be a thing of the past.   
Forecasters have been fretting that the Federal Reserve will be forced to curtail its’ bond-buying program soon.  A growing number of experts now say that 2014 could be the year when that finally occurs.  

This means, naturally, that waiting too long to sell might mean an owner will see higher interest rates and a lower price for his or her business.

The reason for this is that interest rates always have a direct impact on the price of capital used to purchase a company.    Buyers who rely on loans to acquire a business will feel the sting of these rising rates since earnings are used to pay the interest on loans.  An increase in the price of capital will almost certainly lead to lower valuations for businesses.

It makes sense that the more expensive it is for buyers to get capital, the less willing they are to pay top price for a business.  As soon as rates begin to rise in 2014, there will be a negative impact on business valuations.
 

• ·         Low levels of debt and lots of positive cash flow

Credit Suisse reported in February, 2014 that 73 percent of U.S. companies and 56 percent of European companies have incredibly low levels of debt on their balance sheets compared to their total market capitalization.   Private equity companies are awash in cash, with nearly $1.1 TRILLION in cash on hand.  At the same time, levels of corporate debt are falling to new lows.  

So, what does this mean for you as a business owner who is seriously considering selling?

Well, for one thing, since all this cash needs to go someplace other than under the CEO’s mattress, private buying groups will be out en masse looking for successful businesses they can buy and from which they can see immediate cash flow.  

For another thing, there is a natural mood elevation that goes on when so many dollars are in play.  The old saying “a rising tide lifts all boats” is applicable here.  Every billion dollar mega-deal that goes down makes every smaller business deal more attractive.  Small businesses are sure to benefit from the optimism that comes with any boom.

•  Changing demographics are pushing boomers to sell.  

The first half of the “Baby Boomer bubble” (2005-2010) has passed.  During that period, older Boomers were able to sell to younger boomers, although the success rate was still a mere 3%.   

However recent research indicates that the number of boomer owners indicating they wanted to retire increased from 50,000 in 2001 to over 750,000 in 2009/

It is possible we could see over one million businesses go on the market in the next 10-15 years in a transition tsunami.

If this holds true, then it makes sense to sell ahead of the herd and reap the benefits of the current buying frenzy fueled by low debt levels and loads of cash.

Even if you think you aren’t ready to leave your business yet, you should plan as if you are. Positioning your business to sell is never a bad idea or waste of time.

By crafting a well-thought-out exit plan, you will be prepared if circumstances (either good or bad) push you to sell, or if you get an offer from a qualified buyer that you just can’t afford to pass up.

You never know, maybe 2014 will be year you make a profitable transition from your business and start enjoying everything for which you’ve worked so hard.