This bookkeeping shortcut will cost a seller five-figures on closing day - How To Sell a Business

This mistake will cost a business seller ‘five-figures’ on closing day.

I remember when I started running my first ‘real business.’  I call it that because I had sales everyday and had to keep up on deposits, etc.

I wanted to use accounting software to simplify the process.  This was back in 2005.

I hired a woman to come over to my office and teach me how to use Simply Accounting, she taught me why it was important to ‘track reality’ in my books.

For example, if I didn’t accurately record payables, I could end up with lots of money in my bank account and mistakenly believe that the money was mine, when it may actually have been my suppliers’.

Watch me tell the story and of how a seemingly innocent bookkeeping shortcut will cost one business seller over $10,000 on closing day: https://youtu.be/cOCB26GOzwk

As a business owner, you need to know your numbers.  Every line of them and make sure they make sense every year.

If you want to learn more about how I help business owners sell their own business and avoid paying a commission, check out www.HowToSellMyOwnBusiness.com

There are plenty of FREE resources there to help you begin planning your transition out of your business.

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

If you would like to hear from me weekly before anyone else, you can sign yourself up at www.DavidCBarnett.com  

Improve your business each and every day, download my FREE daily cheat sheet and hang it in your work area to keep yourself focused. https://gum.co/15Questions/FREE 

Do you live in Toronto?  I’ve got three workshops coming up for Toronto in September.  Book now to get summer special ticket pricing.  http://davidbarnett.eventbrite.ca Some sessions have fewer than 20 seats left.

Thanks and I’ll see you next time.

How to push your business' 'self-destruct' button... You can ruin everything really fast! David C Barnett

How to Sell a Business – Keeping it a secret

One of the most distinct aspects of the market for small businesses is that it is a secret one.  The worst thing that a business owner can do is publicize the fact that their business is for sale.

Telling people that you want to sell your business is like pushing the ‘business self-destruct’ button.

If any of the following stakeholder groups finds out that a business is for sale, the business could be ruined and all that an owner has worked for could be destroyed:

• ·         Employees
• ·         Customers
• ·         Suppliers
• ·         Lenders
• ·         Competitors

I explain why secrecy is so important for each group in this NEW video: https://youtu.be/m0wWErgtlM0

I also explain what business for sale really means to 95% of the population.

Let me give you a little info on each one:

Employees: If they think change is coming, they may bail.  The best employees always have available opportunities with competitors.

Customers: If you deliver in the future or people rely on a warranty, they won`t have any faith in your future if they find out you’re for sale.

Suppliers: If these guys think there`s something wrong say `goodbye` to your trade credit.

Lenders: I’ve had more than one client have their credit line cut when their banker found out they were for sale.  I explain why in the video.

Competitors:  These guys will use anything they can to steal business.  News that a business is for sale will help them sew doubt in the minds of prospects.

If you want to learn how I help my clients advertise their business for sale confidentially, check out www.HowToSellMyOwnBusiness.com

There are plenty of FREE resources there to help you begin planning your transition out of your business.

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

If you would like to hear from me weekly before anyone else, you can sign yourself up at www.DavidCBarnett.com 

Do you live in Toronto?  I’ve got three workshops coming up for Toronto in September.  Book now to get summer special ticket pricing.  http://davidbarnett.eventbrite.ca Some sessions have fewer than 20 seats left. Learn more about these workshops in this video: https://youtu.be/l2T3pwr9lkw

Thanks and I’ll see you next time.

This one change earned a business seller $250,000 more! - David C Barnett

A few years ago I put out a video on YouTube about a guy who sold his business for more than I thought he could by offering financing terms to a buyer that were better than the bank’s. Watch that video here: https://youtu.be/rkdB8eLl6Xw

Just this week I had the opportunity to coach a seller along the same lines.  In fact, it worked out so well that his words to me were, ‘the money I’ve invested with you is the best money I’ve spent in my entire life.’

Those were very kind words.

Watch the story of the negotiation here: https://youtu.be/iqo5EngtGa8

This seller was properly prepared and he and his spouse were going to be able to benefit from tax-free gains because they were doing a share sale of their business.

He had come to me for advice on the negotiation and I showed him a way to get the buyer to agree to a price that was $250,000 higher than what they had previously agreed to by offering to change the terms of payment.

Having the correct advisors working with you in a complex transaction like this is worth every penny.  When it comes time for you to buy or sell a business, give me a call for help.

If you want to learn more about how I help business owners sell their own business and avoid paying a commission, check out www.HowToSellMyOwnBusiness.com

There are plenty of FREE resources there to help you begin planning your transition out of your business.

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Improve your business each and every day, download my FREE daily cheat sheet and hang it in your work area to keep yourself focused. https://gum.co/15Questions/FREE 

Do you live in Toronto?  I’ve got three workshops coming up for Toronto in September.  Book now to get summer special ticket pricing.  http://davidbarnett.eventbrite.ca Some sessions have fewer than 20 seats left.

Thanks and I’ll see you next time.