Commitment

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committmentOwning a business takes commitment. As any successful business owner would tell you, it takes focus and effort  to get through rough patches, employee problems, customer complaints, short cash positions, excessive receivables, government regulation, etc.  However, much like running a marathon, owning a business is for the long haul, and getting to the finish line is amazingly rewarding.

The successful entrepreneurs see those rough patches as just challenges along the way and opportunities to improve the business and beat their competition. Others may see these events as impossible obstacles to their success, so they emotionally, physically, and financially quit.

Individuals interested in the dream of business ownership need to be prepared for the process of finding a business to buy, negotiating, financing the acquisition, and completing good due diligence of the targeted business. This is the beginning of overcoming obstacles and working odd hours to get the deal done. All businesses have some level of blemishes.

It’s how a buyer deals with those blemishes that will determine if the buyer will be a committed and successful entrepreneur.  Contact Apex Business Advisors for more information about Buying or Selling a business.

Taking Your Business to Market in 2013

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Key to SuccessIf you didn’t sell your business prior to 2008 you may actually be fortunate. It may be hard to believe, but what if you had your big event (sold your business) and invested your gains in the booming market at the time? You probably would have lost 30% or more between 2008 and 2010.

If you left the money in the market, you may have made it all back if you let it ride, but most likely you would have been spending it on your retirement.

If you didn’t sell your business prior to 2008 and kept your business through the recession, you probably suffered some and had to work harder, but you may actually have a stronger business now. You may have fewer competitors.

Things may be looking up!  So is now the right time to sell? The market for sellers is strong right now with many buyers looking for quality businesses. Also, Bankers are now aggressively seeking deals to fund. Businesses that have been successful through the recession will be attractive targets for buyers.

However, there is still a tendency to try to sell a business for what one needs for retirement rather than understanding true value. Robert Palmer, of Insurance Designers in Overland Park, sent me this recent article from the Financial Advisor Magazine that gives a great overview to the selling marketplace from the financial advisor point of view.

The deals still have to make sense financially for the buyers and banks. This is a topic that we talk about continuously. Understanding what drives business value is critical to the ongoing success of the business and for creating wealth.  For more information contact an Apex Business Advisor.