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Growth vs Value: What Does Revenue Have to Do with It?
When you look ahead, will your growth come from selling more to your existing customers or finding new customers for your existing products and services? The answer may have a profound impact on the value of your business. Nurture Your Niche Chasing “bad” revenue by offering a wide array of products and services is…
Read MoreWould You Risk $10 Million for a Chance at $100 million?
How do you know the right time to sell your company? One answer to this age-old question is that the time to sell is when someone else is willing to invest more in your business than you are. When you start a business, nobody is willing to invest in its success more than you. You’ve…
Read MoreHow did a company with $9 million in revenue sell for $54 million?
Stephanie Breedlove started Breedlove & Associates as a way to pay her nanny. The big payroll processors weren’t interested in dealing with one person’s wages and doing it themselves was complicated and time-consuming. Breedlove saw a business opportunity and started a payroll company for parents who needed to pay their nannies. Within 10 years, Breedlove…
Read MoreGoodwill Hunting
How much goodwill do you have in your business? The term “goodwill” is often thrown around in conversation as though it is a subjective description of how much your customers like your business. In fact, when it comes to valuing your business, there is nothing subjective about the definition of goodwill. It is defined as…
Read MoreIncreasing Company Value – What’s the Math?
The value of your business comes down to a single equation: what multiple of your profit is an acquirer willing to pay for your company? profit × multiple = value Most owners believe the best way to improve the value of their company is to increase profit and that will certainly improve value. An additional…
Read MoreThe Real Organization Chart
For business owners, much of the future success they will achieve or the future pain they will feel or the results of the future exit strategy from the company will be predicated by how well they are able to manage the time of all those who work within their organization. Consequently, this graph will be…
Read MoreIndependent Contractor Or Employee
A long-standing struggle between the IRS and business taxpayers could get a bit dicier next year with the new increased Democratic majority in Congress and the Obama administration possibly set to change the law related to proper worker classification. Last year, President-elect Obama introduced a bill in the Senate (S.2044: Independent Contractor Proper Classification Act…
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