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EFFECTIVE NETWORKING - Sep 12, 2008

Posted by: Steve Sundberg in Articles

More Effective Networking

Try These Four Tips

Networking is always a challenge to all small business owners. It can be especially challenging to people who want to do business with the small business owner. Many times, the small business owner does not show up at network events because they feel like the bait in a sea of sharks. Most networking events are about people who want to make connections with the small business owner. Many times the only result of these meetings is a pocket full of business cards from people looking for the same leads for which you are looking. But always remember, these people know the people you seek in business. Make good referral contacts, and you will work your way to the person with whom you want to make contact.

So how do you make these meetings work to your advantage? First, take a look at your attitude when approaching these meetings. Here are a few changes you can make that will allow you to view networking from a different prospective. Consider changing you "From" attitude to a "To" attitude, and you will find that more productive connections will start to happen.

Networking Attitude Shift
From:	To:
Handing everyone a business card	Selectively giving out business cards
Leading first all about you	Leading first about others
Focus on my small business	Focusing on the bigger possibilities
Old School Selling	Abundance and creativity
Waiting for a referral before referring	Referring others first
Being reactive	Being proactive
Going to events looking for "prospects"	Going to events to look for interesting folks
Thinking small	Thinking bigger & thinking BIG
Randomly following up	Using a process to follow up regularly
Having a narrow group of contacts	Creating a wide net of referral partners
Hard work, little fun	Fun, amazing connections always

There is a new concept in networking called Netweaving (look it up on the Interent). Basically its philosophy is to ask what you can do for other people first. Go to networking and leads events and ask, "What can I do for you?" People remember others who want to help them.

Second, be sure you follow up with people you meet. When you take a few minutes to jot an e-mail, or leave a voice message, you are saying, "I value you and what you do and what you have to say." People will remember those they meet who value them.

Third, try to keep your name and face in front of these people. Offer to deliver a talk at their industry group; make sure you say "hi" the next time you see them; follow up on suggestions you made to them and people you said you would connect with them. This will go a long way to helping them remember you. When they remember you, they will remember what you do.

Fourth, invest some time to get to know them. Ask them to meet you for a cup of coffee or a meal. Ask them questions about their business, how they got to where they are, and what their goals are and what the future holds. Anyone who pays attention to them or takes an interest in them will be remembered.

Following these simple tips will ensure that you make an impression and are remembered. Next time one of these contacts needs services or products you provide, your name will be on top of the list. Try giving before you get. It works!!

BUSINESS VALUATION-ART OR SCIENCE? - Sep 12, 2008

Posted by: Steve Sundberg in Articles

Business Valuation

Art or Science?

If a business owner has an exit plan - which every business owner should have - the primary question on his/her mind is "how much is it worth?" Unless the entrepreneur wants to leave the business to the children or other family member, the goal should be to sell it and make a profit. Business owners should start thinking about this the day they start the business. But how do business valuations work? Who does them? And what do you need to do ahead of the valuation date to assure your business will sell for top dollar?

Business valuation is an industry within business services. There are firms that specialize in business valuation. They will either represent the owner trying to sell or, sometimes, the buyer who wants to make sure they are paying a fair price. Business valuation is an expertise that takes years to develop. Many of these experts come from the accounting or finance side of business services. So how do they do it?

Business valuation is both an art and a science. There are many factors that go into developing the value of a business. They fall into two main groups, tangible factors and intangible factors. Each value is weighed based on how it affects the business performance, and what can be expected of the subject business going forward. Remember, a buyer is buying the ability to make money from the existing business.

Tangible factors are easier to value. This is where the science of the valuation takes place. Tangible factors can be looked up or calculated. They include cash in the bank (if that is part of the deal), accounts receivable (assuming they are collectable) and inventory (assuming it is saleable). Other tangible factors include revenue produced over time, buildings owned by the business that are included in the sale, cash flow, obligations to employees (such as retirement plans, etc). Also included in this value are items that would decrease value such as losses, poor margins, or debt that will be assumed in the transaction.

The discussion of intangible factors is where the art of business valuation becomes part of the equation. These factors include efficiency of the operations systems. Will the buyer have to come in and make an investment in the company to get it running more efficiently? Competition and product will also play a part in the value. If the product or service a company sells is changing due to technology, or is something that is no longer popular to own, the projected sales may be assumed to be decreasing, which would affect the value. Remember the pet rock? The experience of the management team will also affect the value. After the owners of the company depart, does the existing management know how to take the company forward? And, there are factors such as customer base and satisfaction, competition, market share, industry position, vendor relations and location.

So, what's a business owner to do? If the goal is to sell the business (verses leave it to children or family members) you want the value to be as high as possible. Start looking at the business as a buyer would. Assume the buyer wants to buy a business that is running very well and has room to grow. Consult an expert who can guide you regarding the factors you need to be considering.

It is never too early to start to plan for the business valuation. Position your business from the very beginning to meet the high standards needed for a sale and you will be pleased with your valuation when the day comes.

Make it a great week!

HOW DO YOU WANT TO EXIT YOUR BUSINESS? - Sep 12, 2008

Posted by: Steve Sundberg in Articles

STRATEGIES August 2007

Benjamin Franklin is credited with the adage, "In this world nothing is certain but death and taxes." That statement is as true today as it was when he wrote it more than 200 years ago. We can add another truism for today's business owners: You will exit your company one day in the future.

Your exit from your company may be planned or unplanned. The exit may bring satisfaction or dissatisfaction to you and your family. It may be to the benefit or detriment of your employees or associates. It may bring great financial reward, or it may bring financial devastation.

The exit may bring fame or shame to your family and friends. It may be the continuance or discontinuance of the company you have worked so hard to create and build. The exit may be to the benefit or detriment of your competitors. Regardless of the consequences, you will some day exit your company in one form or another.

"Begin with the End in Mind," is a saying made popular by Stephen R. Covey. This is wise advice and should be adhered to by every business owner.

One of the attributes of entrepreneurs is that of being a visionary. Keeping that in mind, it is prudent to begin with a vision of a successful exit strategy from your company, since that end is inevitable.

I started my business in 1987. Like many entrepreneurs, in the beginning, "the End" was a tremendous effort to make enough money to feed my family. The End for me was to try to convince future customers they should pay me a fair price for what I was trying to sell.

The End was struggling through the frustrations of being a pioneer in a new industry and the frustration of learning new skills to explain my vision to people whom I felt needed my services. In the beginning, there were many times that I felt the End might be the failure of my business, my vision and my aspirations. I know that many entrepreneurs feel the same way at the outset of their business endeavors.

It is no longer a struggle to meet the financial needs of my family. A business concept that was new and revolutionary in 1987, is now well-accepted in our business society and is easy to explain.

It is now time to follow the advice of others and join my fellow entrepreneurs with a new vision of the End, one with a successful exit strategy that is planned, effective and beneficial to everyone.

Well, beneficial to everyone, except the competition!

What are our options for an exit strategy? Fortunately, the options are few and easy to comprehend. The central exit strategy themes are as follows:

o Sell the business to a third party
o Sell the business to family members or to employees
o Stop the business altogether, and convert the assets to cash
o Enter bankruptcy or forced liquidation
o Plan for an untimely death

Planning for an untimely death is easy to accomplish through the purchase of adequate life insurance with specific instructions on using the money.

Personal or family representatives, insurance agents and attorneys can all help create a plan that will most likely help you accomplish your key goals. This type of exit strategy should begin now and should not be delayed.

Think Like a Buyer

If your exit strategy is to sell the business - whether to a third party, family members or employees - planning how to maximize your income by the sale of your business is essential. Let's assume you wish to sell the company in the future at a fair market value, regardless of who might purchase your business. What, then, are some of the things you can start planning to make this a reality?

Discussing the sale of an entrepreneur's business is an interesting exercise. Most business owners are adamant about the amount of money they want for their business. They're usually reluctant to accept any outside critique that might conflict with their dollar amount.

Regardless of your feelings about the value of your business, it will most likely be sold using a factor times your company's EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) averaged over a period of time. The information on this subject is easy to obtain and won't be discussed here. Rather, I prefer to try to help you take a step back and look at the big picture regarding the future value of your company.

I'd like to share with you some ideas about the future value of your company in a way that perhaps nobody has suggested. The easiest way for me to help you with this subject is to have you assume that you are going to buy a business. Let's forget about selling your business for a moment, as you consider the following scenario, which will ultimately lead you to a better picture of how to improve the value of your own company.

Pretend that you are the buyer and are interested ....

DISPLAY MULTIPLE WINDOWS ON YOUR COMPUTER SCREEN - Sep 12, 2008

Posted by: Steve Sundberg in Articles

Quick Way to Arrange Multiple Windows on Your Screen

(Reproduced from an article in the Journal of Accountancy September, 2008)

If you often work with more than one application open at a time, and wish you could see multiple windows on your screen at the same time, this may be the solution for your problem.

There is a way that works in both Windows XP and Vista. The method works with Excel, Word, screens of other applications and even websites. Begin by initially loading the files you want displayed and then minimizing them so the icons are in the taskbar. Then, when you want to open some of them, hold down the Ctrl key and click on their icons in the taskbar. You'll notice the icon borders will darken, as in a 3-D effect. Then right-click on one of the icons and a Windows-arrangement menu will appear, giving you a display choice. You will be able to show the windows stacked, side-by-side, or in a cascade arrangement.

If you change your mind after you select the file you wanted to open, a second click will deselect it.

MANUFACTURING COMPANY WICHITA,KS - Sep 12, 2008

Posted by: Steve Sundberg in Testimonials

Steve has been an inspiration to us in many ways. He has provided us with insight into our overall business operation that we were simply too close to and far too busy to grasp. Steve brings a plethora of experience and industry knowledge which has already brought us huge strides in the short time we've been working together (since October of 2007). You are a valuable asset to us and we are blessed to have you as part of our team! Candace C.

MOVING COMPANY KANSAS CITY, KS - Sep 12, 2008

Posted by: Steve Sundberg in Testimonials

We have found our B2B CFO Partner - Steve Sundberg - to be an extremely valuable resource for our organization. Somewhat skeptical of the CFO B2B concept at first, we have come to greatly appreciate the high degree of expertise and professionalism that our "part-time CFO" lends to our small businesses. We are extremely satisfied... and absolutely endorse the concept! Gary B.

RETAIL FURNITURE COMPANY INDIANAPOLIS, IN - Sep 12, 2008

Posted by: Steve Sundberg in Testimonials

Steve came in and helped me during a very difficult time in my business. My business was in complete chaos, especially financially, and I wasn't sure where to turn. I contacted B2B and was referred to Steve. Steve dove right in and provided both direction and leadership during a very difficult time. He was instrumental in getting my company back on its feet as I don't know where I'd be today without his help. Thanks again! James S.

TRUCKING COMPANY KANSAS CITY, KS - Sep 12, 2008

Posted by: Steve Sundberg in Testimonials

Steve was a tremendous asset to our team. He helped us with managing each of our trucks revenue and expenses within Quick Books so that it provided valuable information in order to make good business decisions. In addition, he taught me and our staff so much. He was awesome at ensuring there was training and a handoff. It was good to have someone from the outside to give input on situations that we are sometimes too close to. Linda G.