LIVE Small Team Leadership: From Corporate to Entrepreneur with Lisa Even

 

What happens when you leave corporate and suddenly have to do everything yourself?

New Livestream guest- Lisa Even

I’m happy to have Lisa join me on a live broadcast.

Lisa works with business leaders and teams, helping them navigate leadership challenges, build strong cultures, and manage the realities of running small teams.

Tune in as we discuss the transition from corporate to small business, what it really takes to manage a team where everyone wears multiple hats, and how to handle common challenges like family dynamics, promotions, and team culture.

This is a ‘must see event’ for anyone managing a small team or growing a business.

Find Lisa online at https://www.linkedin.com/in/lisa-even-have-good-ripple-effect-0778b112/

or https://www.LisaEven.com 

LOI vs Offer vs Term Sheet: How to Buy Business the Right Way

**New Video Alert!

What’s the difference between an LOI, a term sheet, and an offer when buying a business?

If you’re trying to buy a small business, understanding how to structure your offer is critical.

In this video, I break down the key differences between these documents, what should be included, and how to avoid costly mistakes that can kill deals before they even get started.

Watch the video here: https://youtu.be/UAefk3FMTU8 

Cheers

See you over on YouTube

David C Barnett

 

Why Working Capital Mistakes Kill Business Sales

One of the biggest reasons business sales fail has nothing to do with profit—it’s a misunderstanding of working capital.

Many business owners believe that if their company is valued at a multiple of earnings, that number represents what they’ll walk away with. It doesn’t.

That number is enterprise value—the value of the cash flow assuming everything needed to run the business is included. https://youtu.be/on4RmO0egMM 

The Missing Piece: Working Capital

Working capital includes cash, receivables, and inventory required to operate the business.

If a buyer has to inject additional money after the purchase to keep things running, their total investment increases—and the deal quickly stops making sense.

For example, a business priced at $900,000 may actually require $1.1M+ when working capital is added. Buyers will either lower their offer or walk away.

Why Deals Fall Apart

From a buyer’s perspective, working capital is no different than equipment. If a key asset is missing, they must replace it—and adjust the price accordingly.

This is where many sellers go wrong. They assume:

• Cash is “theirs”

• Receivables belong to them

• Working capital is separate from the sale

In reality, it’s part of what makes the business function.

The Real Fix: Prepare Early

The root issue is often poor balance sheet management—too much inventory, slow collections, or excess cash tied up in operations.

To fix this:

• Streamline inventory

• Improve receivables collection

• Reduce unnecessary capital needs

Most importantly, start early. Buyers rely on historical data, so improvements should be made well before going to market.

A Smarter Way to Think About Value

If you want to sell successfully, think like a buyer.

Ask yourself:
Would I pay this price and still earn a reasonable return after funding the business?

If the answer is no, the deal won’t work—no matter what a broker says.

Key Takeaways

Working capital is essential to business operations and must be included in the value buyers are paying for. If not properly managed, it will reduce offers or prevent a sale entirely.

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A Terrific Interview with the host of Above The Business Bradley Hamner

 

Most business owners think about growth. Far fewer think seriously about what makes a business sellable.

In this episode of Above The Business, Bradley Hamner sits down with David Barnett to talk about how buyers evaluate small businesses, what makes a company attractive in a sale, and why systems, delegation, and structure matter far more than most owners realize. They also break down the difference between SDE and EBITDA, why multiples are only a starting point, and how terms can matter as much as price in a deal.

David also shares why so many owners unknowingly build businesses that only a younger version of themselves could buy, and what has to change if they want a broader pool of buyers and a more valuable company.

Burnt Out After 12 Years… Should You Sell Your Business?

 

**New Video Alert!

Have you ever felt burned out running your business?

On this video the owner built a $3M/year company… and still wants out. 

Would you sell and walk away with $800K? 

Or try to fix the business and keep going?

Watch the video here: https://youtu.be/vHkMDaBWPxw  

Cheers

See you over on YouTube

David C Barnett

Buying a Piece of a Business: What's Different?

When you're buying a part of a business, the numbers you get—financials, revenues, expenses—reflect the entire operation, not just the segment you're interested in. https://youtu.be/zrKQWzxN58w 

So:

1. You don’t have clean, ready-made financials for the slice you're buying.
   
   

2. You need to reconstruct what that slice would look like if it stood on its own.
   
   

Steps to Evaluate a Partial Acquisition

1. Start with Sales
Pull out the revenue attributable to the part of the business you're considering buying.

2. Estimate Cost of Goods Sold (COGS)
Determine whether you can get the same supplier discounts as the full business currently does. If the existing business got volume discounts, your COGS might actually be higher.

3. Forecast Overheads
This is where synergies get lost. Admin costs like payroll, accounting, or purchasing may have been shared. Now you’ll need your own setup, so costs go up.

4. Build a New, Hypothetical Income Statement
Using all the info above, you create a “what-if” income statement as if this were a standalone business.

5. Apply Valuation Techniques
Once you've got projected net income or cash flow, you:

• Use a capitalization rate (e.g. 3x earnings), or
  
  

• Use discounted cash flow (DCF) by projecting future cash flows and discounting them.
  
  

Friction with the Seller

Here’s the kicker:
 

What it's worth to you may not match what the seller thinks it's worth.

Why? Because:

• You may lose efficiency (higher overheads).
  
  

• You might not be able to access the same discounts or resources.
  
  

• You’re probably taking on more risk.
  
  

So your version of the business will likely be less profitable, which should lower its valuation from your point of view.

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Cheers, and see you next time!

David C. Barnett

Insightful Discussions with Founder to Founder Interview Host Natacha Dugas

 In this conversation, I sit down with David C. Barnett — author, consultant, and one of the most trusted voices in buying and selling small businesses.

We unpack the realities behind acquisitions, exits, and the myths entrepreneurs believe about valuation, risk, and “cashing out.” David shares why most businesses never sell, what buyers are actually paying for, and how deal structure matters more than price. We also explore how automation and AI fit into business value — and why, despite all the technology, small business is still deeply human. If you're thinking about buying, selling, or building a business designed to last, this episode will change how you see ownership.