Wednesday, April 23, 2014

10 Reasons To Have an Exit Strategy For Your Business


10 Reasons to Have an Exit Strategy for Your Business. 

Plan to profit when you exit your business.  It just did not seem right that a successful business would not be worth anything when it was time for the owners to exit. An enormously successful client planed to just dissolve their enormously successful business when the time came for them to stop working and enjoy the beach life. They reasoned that since they are the business that no one would buy it from them. 

A business broker explained to me the value of the business and why others would be eager to purchase it.  Yes, while in a way they are the business, others would jump at the opportunity to purchase the business and would profit from this business too. The broker explained that the purchaser in these type of situations would typically want a one year consulting agreement with the current owners to receive the proper training. So yes others would pay to take over your business and keep it going.  So you can see you need to have a strategy to exit and profit from the business you built and know what your options are.  

Below are 10 reasons to have an exit strategy for your business:


  1. Plan to succeed and then cash out at some point
  2. Plan to retire/move on
  3. Create a business that is sustainable and salable 
  4. Have a succession plan for your heirs and/or key employees
  5. Know what the market will give you for your business
  6. Don't leave money on the table
  7. Investors want to know there is a way to cash out
  8. Have a plan in the event you become disabled
  9. Enable yourself to get away from day to day operations to pursue other opportunities
  10. Know how to get out if the business fails


Most people plan their retirement. Entrepreneurs too should plan their retirement and/or how they will move on to the next business idea.  What is your exit strategy?

The CPA Superhero wants you to succeed. If you want the CPA Superhero to help you feel free to contact me using my information below. New potential clients can have a free half hour initial consultation.  Tax planning for your retirement involves a consultation fee.


Jeff Haywood, CPA
The CPA Superhero
972-439-1955
jeff.jhtaxes@gmail.com

Follow the CPA Superhero on Twitter:


These posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the world and IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.

Monday, April 21, 2014

Things That Will Make You Money - Number 5 - Be a Friend




Successful people do things others will not do. One of the things others don't do is to be a genuine friend. I know this goes against what many so called "successful people" teach but it is the way to reach the goal of long-term sustained success. 

Think about this, most of us do business with people we like and trust and who create a positive feeling for us. We like people who are genuine and who help us. So getting to know people and what they want and then helping them get what they want will make you money. By doing this you will find that people will want to do business with you and/or send others to you. 

The second law in the book "The Go-Giver" is the Law of Compensation which states:


"Your income is determined by
how many people you serve
and how well you serve them."

As you can imagine, this takes time to develop but the time factor works for you in the other direction too. When you help others get what they want you develop fans that will stick with you and send others to you. This is playing big. In other words, this is a long-sighted way to the goal of long-term sustained success.  

The thing that others don't do that will make you money is to focus on helping others get what they want. "The Go-Giver" explains "if you want more success, find a way to serve more people." If you need more money fast - find a fast way to serve more people.

The CPA Superhero wants you to succeed. If you want the CPA Superhero to help you feel free to contact me using my information below. New potential clients can have a free half hour initial consultation.  Tax planning for your retirement involves a consultation fee.


Jeff Haywood, CPA
The CPA Superhero
972-439-1955
jeff.jhtaxes@gmail.com

Follow the CPA Superhero on Twitter too at:
twitter.com/jeffhaywoodCPA


These posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the world and IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.

Thursday, April 17, 2014

Things That Will Make You Money - Number 4 - Be Prepared



Successful people do things others will not do. One of the things others don't do is preparing to succeed.  You have probably heard the expression "failing to prepare is preparing to fail".  Yes, it takes work, planning and preparation followed by action to succeed. You may be brilliant and you may have a brilliant idea and capital but if you do not properly prepare you are bound to fail.  

When Starting a business to be prepared you need enough capital, resources, and experience.  It is OK to start a business in an industry in which you personally have no experience but it is best to hire someone that does and thoroughly discuss the plan with them.  They should help you modify the plan based on their knowledge of how things really work. 

An alternative to hiring someone with experience in that industry is to get the experience yourself. To do that requires time and effort on your part. This is where the line between success and failure is drawn.  It is like the two airline pilots that bought a bar but their own experience with bars was limited to drinking in one. They were bound to fail before they even began. Why did the previous owners of the bar fail?  What will make your plan succeed?  I know you want to save a buck and do things the easy way but that is not a recipe for success.

Wouldn't it be a good idea to know about the cost structure of a business, to have a marketing plan in place, and to know about the details of the day to day operations in addition to having sufficient capital and enthusiasm for the idea?  Although your personality, excitement and cash will help you succeed, preparation is also an important key. 

Do this, ask yourself if you were being asked to invest it this business, and you took the emotion out of the equation, would you be interested?  What reasons do you have for believing it will succeed?  Having experience or someone with experience who can clearly explain how things work and how the plan will work is a huge factor for achieving success.

The CPA Superhero wants you to succeed. If you want the CPA Superhero to help you feel free to contact me using my information below. New potential clients can have a free half hour initial consultation.  Tax planning for your retirement involves a consultation fee.


Jeff Haywood, CPA
The CPA Superhero
972-439-1955
jeff.jhtaxes@gmail.com

Follow the CPA Superhero on Twitter too at:
twitter.com/jeffhaywoodCPA


These posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the world and IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.