12 Days of Small Business Mis-Management. Don't make these small business mistakes

I met Heer Pasha on LinkedIn and we had a fun exchange about why small businesses often fail.  It soon developed into a list and so we’re happy to present:

12 Days of Christmas Small Business MIS-Management

1. Managing by cash and not seeing accruing liabilities
2. Not understanding cash flow
3. Not charting the workflow of their business function
4. Lack of attention to administrative tasks
5. Acting like a Princess or Prince… workers are not subjects
6. No job descriptions. Who is accountable for what?

….and 6 more that will make you shake your head, but you’ll have to watch the video here: https://youtu.be/A9KhBUfBhx4

The video is a little longer than my usual, but hey, what were you going to do after you open all your gifts anyways?

Happy Holidays

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I’m coming to Charlottetown, Prince Edward Island in January 2017.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time.

Should my business have 100 or 1,000,000 shares? How do Shares work?

Over the last two weeks I’ve had two different clients who were somewhat confused about how shares work in a corporation.  Both were small business owners.

One owner was trying to pass the family business on to their children.  They asked me how to ‘transfer their shares’ from the established corporation to the new corporations of their children.  Can one do this?

The other client was a pair of entrepreneurs who wanted to bring on a third partner and have his investment go into the company.  They weren’t sure how to accomplish this. 

I taught them how they could achieve their goals by splitting their existing shares and have the corporation issue new shares to the new partner.

Not sure what I’m talking about?  Learn how to use a corporation’s shares to make your deals in this video: https://youtu.be/1EjKjSAd1F8

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 

I’m coming to Charlottetown, Prince Edward Island in January 2017.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time. 

Stoopid Rules of Thumb. The Story of the 5X Accountant. How To Sell a Business

Yes, I know how to spell ‘stupid,’ please don’t e-mail me.

I’m cranky and sore and upset.  I’ve got a cold and an ear infection. 

What makes me more cranky and upset is when I hear the same poor advice about rules of thumb for pricing small businesses being passed around again and again and again.

This week I tell the story of the old accountant who told me once in a workshop, ‘Businesses sell for 5 times their cash flow.  Those with real estate sell, those without don’t.’

Simplistic rules of thumb like this one guarantee only one thing… mistakes are being made and it’s costing someone dearly.

I explain why those with real estate sell, those without don’t in this video and the answer will make you sick to your stomach if you happen to be a business owner who could have fallen victim to this kind of advice.  Watch it here: https://youtu.be/ck_AmnOIzDE

If you own a business and will want to sell one day, you need to educate yourself about how this process works and give yourself time to get ready.

Learn what’s involved in selling your small business.  Take my 3 hour online course at www.HowToGetOutOfMyBusiness.com or buy my Amazon best-selling book; How To Sell My Own Business.  Available from Amazon.com or Amazon.ca  

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 

I’m coming to Charlottetown, Prince Edward Island in January 2017.  My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time. 

Why don’t business owners just hire a manager when they want to retire? How to Buy a Business

The other night I was in Halifax, NS doing one of my Business Buyer workshops.

One gentleman was interested in buying a business that he could run with a manager and not be involved in full-time.

He was concerned that most small businesses had to be owner-run and wondered why owners just didn’t hire managers when they wanted to step back into retirement.

The reason… most small business owners aren’t capable.  I made this video to explain.  Watch it here: https://youtu.be/f3NPWgkYnLc  

I also explain how one of my very remarkable business buyers was able to manage several businesses while keeping a full-time job!

If you think you would benefit from my help and guidance over the coming year to meet your business goals, you may wish to consider my 2017 mastermind.  It’s for small business owners who want to improve their business or people who want to find and buy one. E-mail me for details.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time. 

Pay off your Small Business Debt to build wealth? Think Again... How to Sell a Business

A few weeks go I made a video and blog post about whether it made sense to pay off all your small business debts in order to prepare a business for sale.  Watch the video here: https://youtu.be/pOJ3B1_K9L8

I promised to make another video discussing how paying off small business debt would affect the personal wealth of the owner.

You see, most small business owners are debt-averse.   They believe that debt is bad and that it makes sense to pay off debt to increase one’s net-worth.

The reality though is that debt gives you leverage and small businesses are risky.

Watch this week’s video to see how paying off small business debt actually reduces your rate of return and increases your risk!

Watch it here: https://youtu.be/VuwdlTu3BEI

If you think you would benefit from my help and guidance over the coming year to meet your business goals, you may wish to consider my 2017 mastermind.  It’s for small business owners who want to improve their business or people who want to find and buy one.

If you’re thinking of selling your small business and want a whole bunch of FREE information and advice, visit www.HowToSellMyOwnBusiness.com there are free videos, reports and access to my modestly priced books and online course on the process of selling a business.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca

My November 30, 2016 Halifax workshop is being sponsored by CEED. You can register at www.CEED.ca

Thanks and I’ll see you next time. 

Should you sell your small business with a real estate agent? How to Sell a Business?

I recently had an exchange with a fellow on the West Coast who had some questions about selling his small business.

The conversation ended with, ‘well my friend is a commercial Realtor so if I have any more questions I’ll speak to him.’ Huh?!?

What on earth does selling real estate have to do with selling businesses?

It’s not the first time I’ve run into this in my career as a business broker and as a private sale transaction advisor.  There seems to be some idea out there that links businesses to real estate.

Let’s examine the characteristics of each and see where the overlap is:

Real Estate: doors, windows, roofs, foundations, walls, insulation…

Businesses: receivables, payables, employees, inventory…

I’m stumped.  Well, not totally.  There is a big reason why I think that many small business owners somehow end up trying to sell their business using a real estate agent and it has to do with silly outdated laws.  I made this video to explain: https://youtu.be/s9HkiHiiEB0

What’s really amazing though, is that while I was a business broker, I noticed that many real estate agents who normally sold houses were willing to take on businesses to sell.

AT THE VERY SAME TIME, my biggest source of referrals were COMMERCIAL REALTORS. Funny right? Watch the video and I’ll explain to you why.

If you’re thinking of selling your small business and want a whole bunch of FREE information and advice, visit www.HowToSellMyOwnBusiness.com there are free videos, reports and access to my modestly priced books and online course on the process of selling a business.

For help on buying a business, visit www.BusinessBuyerAdvantage.com

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 

My live events always fill up fast.  Find all my live events here: http://davidbarnett.eventbrite.ca

Thanks and I’ll see you next time. 

Pay off debts when getting ready to sell your small business?? How to Sell a Business

A debt-free business is easier to sell; Right?

I had an online exchange the other day with a guy on the west coast who believed that paying off his business debt was a key ingredient in preparing it for sale.

WRONG.

There are all kinds of problems with this thinking but this week I simply want to discuss it from the buyer’s point of view.

(There will be another video in two weeks about how this thinking affects the seller’s wealth.)

Does small business debt have an impact on the value of the company?

Nope, just like your mortgage doesn’t have an impact on the value of your house. The value of a business is derived from its cash flow.

Do you think they care if your business owes money? 

Well, this is a little more complicated.   A buyer may actually care quite a lot and it may not be for the reasons that a seller thinks.  I made this video to explain why some kinds of debt within a business may be very interesting for a potential buyer.  Watch it here: https://youtu.be/pOJ3B1_K9L8

This business owner would certainly benefit from working with me to get his business ready for sale.  I’ve got another mastermind group starting up for 2017.  E-mail me if you’re interested in learning more.  It’s for those who plan to buy, sell, or improve their business in 2017; dbarnett@alpatlantic.com

Learn how I help people sell their business at www.HowtoSellMyOwnBusiness.com

Learn how to buy a business. Visit www.BusinessBuyerAdvantage.com

HALIFAX, NS: I’m coming on November 30, 2016.  Find out more and register at https://ceed.ca/calendar/

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 

Thanks and I’ll see you next time.