The Entrepreneur

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Entreprenuer WillThe toughest part about buying a business is the follow through.  Will you get to the finish line? Will you write the check from your investment account? Will you put your house up as collateral? Do you think that the 10 to 20 year old business you are interested in will collapse as soon as you take it over?

The odds are very much in your favor if you are buying an existing business. It may take you some time to find the right business for your personality or the right sized business for your investment, but when found will you jump? Some soul searching with your partner and/or spouse will be critical before entering the realm of a business search.  Is this the right time? What are your other options?

I was recently involved in a brainstorming session with a bunch of entrepreneurs from many different industries. The topic: “What are the typical characteristics of an Entrepreneur?” Take a look at this list to determine if you fit a few. This is not the entire list we came up with, but these are my favorites.

Risk Taker       Visionary Optimistic
DecisiveIndependent Creative
Multi-taskerLeaderEnergetic
PassionateFearlessPersistent
DriverCommittedOpportunistic
AmbitiousTenaciousWelcomes Change

If you have a few of these traits there is a good chance you are or will soon be an entrepreneur. If you have all these traits, you might just annoy your fellow entrepreneurs (out of jealousy). If you don’t see a fit with any of these characteristics, you might want to avoid business ownership. Either way, we would love to talk to you and give you some insight into business ownership. Contact any one of us.

Apex Business Advisors would like to congratulate the 5 new entrepreneurs who accomplished their dream of business ownership this month!

Wished-For-Pricing

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Business Valuation 1-15-14When selling your house, would you research the market, check neighborhood listings on the MLS, verify that your Realtor is educated on the marketplace, then analyze all of this information to determine an asking price? Or would you just list your home at the Wished-for-Price?

When selling a car, would you check want ads and online to compare your vehicle to others on the market to determine a price that makes sense? Or would you just put a For Sale sign on your car and list it on Craig’s List at a Want-to-Have price?

I’ll bet that you would put some research and effort into selling either your house or car, perhaps even seeking the advice of a professional to ensure that you are neither leaving money on the table nor pricing too high to create interest. Why, then, would you not want to do the same when pricing your business? It is probably the largest asset of your portfolio, so you do not want to make it guesswork!

I recently sold a business for about 15% more than what the seller expected because an independent appraisal determined and substantiated a higher enterprise value. Both the buyer and the bank were able to confirm the financial history and were comfortable proceeding with the transaction. This is just one of many such examples.

Too many people have the impression that an independent business appraisal is an expensive and painful process.  It is not.  The basic process requires the business owner to complete a questionnaire and supply three years’ tax returns.

Your Apex advisor will assist you to ensure that the information is accurate, complete, and presents the business in the best possible light. If you want to make sure that you receive full value for your business, see our Business Valuation page.

Doug Hubler
President