New Stimulus Package for Businesses...
By: John Kielich, Managing Director, Kolb + Co.
LeAnne Foster, Business Analyst, Kolb + Co.
No, you did not miss an eight million dollar first-time-business-buyer tax incentive or a sales tax break. However, there currently is a window of opportunity for businesses in regard to Federal Capital Gains Tax. The current Federal Capital Gains Tax rate of 15 percent is due to sunset at the end of 2010. How high it goes starting in 2011 is anyone's guess at this time, but as discussed and illustrated below, even an increase to 25 percent should provide a business owner the needed stimulus to strongly consider a sale or partial sale in 2010.
To read the rest of this article, and see an example spelled out in dollars... click here.
Wednesday, May 12, 2010
Wednesday, May 5, 2010
Personal Goodwill: Who Owns It?
Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even larger companies. How is personal goodwill developed? An individual starts a business and, during the process, builds one or more of the following:
• A positive personal reputation
• A personal relationship with many of the largest customers and/or suppliers
• Company products, publications, etc., as the sole author, designer, or inventor
The creation of personal goodwill occurs far beyond just customers and suppliers. Over the years, personal goodwill has been established through relationships with tax advisors, doctors, dentists, attorneys, and other personal service providers. While these relationships are wonderful benefits, they are, unfortunately, non-transferable. There is an old saying: In businesses built around personal goodwill, the goodwill goes home at night.
It can be difficult to sell a business, regardless of size, where personal goodwill plays an integral role in the business’ success. The larger the business, the less likely that one person holds the key to its profitability. In small to medium-sized businesses, personal goodwill can be a crucial ingredient...
to read the full article... click here.
• A positive personal reputation
• A personal relationship with many of the largest customers and/or suppliers
• Company products, publications, etc., as the sole author, designer, or inventor
The creation of personal goodwill occurs far beyond just customers and suppliers. Over the years, personal goodwill has been established through relationships with tax advisors, doctors, dentists, attorneys, and other personal service providers. While these relationships are wonderful benefits, they are, unfortunately, non-transferable. There is an old saying: In businesses built around personal goodwill, the goodwill goes home at night.
It can be difficult to sell a business, regardless of size, where personal goodwill plays an integral role in the business’ success. The larger the business, the less likely that one person holds the key to its profitability. In small to medium-sized businesses, personal goodwill can be a crucial ingredient...
to read the full article... click here.
Friday, April 23, 2010
4 Keys to Selling In a Buyer's Market
Don't leave money on the table that could have been in your pocket.
By Mike Handelsman
Entrepreneur.com, April 13, 2010
"This is a great article for anyone considering selling their business in this economy. It is possible to sell, but the better prepared you are...the less chance you will leave cash at the table... and that's where we come in." says Ralana D. Shelley, Certified Business Intermediary at Sunbelt Indiana Business Resource.
The business-for-sale market has been slowly recovering for the past few quarters, and the first quarter of 2010 was no different. According to industry data, the number of closed business-for-sale transactions rose slightly last quarter, by 0.3 percent, as compared to the first quarter of 2009.
Although this is a relatively small increase, it's a positive sign, especially given the deep declines in closed deals in the past two years. And evidence of a turnaround is more apparent when comparing Q1 2010 data to the prior quarter, which shows a healthy 6.3 percent increase in transaction volume.
While deal volume is up, there's still downward pressure on the business-for-sale listing prices... the data suggests that it's still a buyer's market out there. This is the result of a few factors, most notalby weaker financials for selling companies, a lack of confidence from buyers that the economy will improve quickly, and a dearth of capital available to those who want to buy a business.
For business owners looking to sell in this market, there are things you can do to improve the odds of closing the deal and to ensure you receive a good price for your business. These tips will get you started.
By Mike Handelsman
Entrepreneur.com, April 13, 2010
"This is a great article for anyone considering selling their business in this economy. It is possible to sell, but the better prepared you are...the less chance you will leave cash at the table... and that's where we come in." says Ralana D. Shelley, Certified Business Intermediary at Sunbelt Indiana Business Resource.
The business-for-sale market has been slowly recovering for the past few quarters, and the first quarter of 2010 was no different. According to industry data, the number of closed business-for-sale transactions rose slightly last quarter, by 0.3 percent, as compared to the first quarter of 2009.
Although this is a relatively small increase, it's a positive sign, especially given the deep declines in closed deals in the past two years. And evidence of a turnaround is more apparent when comparing Q1 2010 data to the prior quarter, which shows a healthy 6.3 percent increase in transaction volume.
While deal volume is up, there's still downward pressure on the business-for-sale listing prices... the data suggests that it's still a buyer's market out there. This is the result of a few factors, most notalby weaker financials for selling companies, a lack of confidence from buyers that the economy will improve quickly, and a dearth of capital available to those who want to buy a business.
For business owners looking to sell in this market, there are things you can do to improve the odds of closing the deal and to ensure you receive a good price for your business. These tips will get you started.
- Price your business right.
- Remember you're still running a business.
- Be willing to share some of the buyer's burden.
- Offer a roadmap to success.
It's a buyer's market out there, but that's not necessarily a reason to hold off on selling. Business owners who get it right are still closing deals at prices that can satisfy all of the parties involved in the transaction.
* This is a synopsis...to read the full article... click here.
Monday, March 29, 2010
Wednesday, March 24, 2010
Life Plan Before Business Plan
This blog post kicks off a three part series on Start-up Success for Small Business Trends. Great advice for anyone looking for success in their entrepreneurial path.
By Melinda Emerson, Smallbiztrends.com
Many people dream about owning a small business. You may be one of those people who have had a “notion” for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream into reality is an evolutionary process. It involves not only having a solid business idea but also knowing the “business of running a business.” You will need to get your arms around stuff like accounting, marketing, and operations, but before you dive into crunching numbers for your business plan, consider this:
It is my strong belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan. Why, you ask?
Because entrepreneurs who don’t get clear about what they want from life run the risk of starting a business that might not be a good business for them.
To read the full article... click here.
By Melinda Emerson, Smallbiztrends.com
Many people dream about owning a small business. You may be one of those people who have had a “notion” for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream into reality is an evolutionary process. It involves not only having a solid business idea but also knowing the “business of running a business.” You will need to get your arms around stuff like accounting, marketing, and operations, but before you dive into crunching numbers for your business plan, consider this:
It is my strong belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan. Why, you ask?
Because entrepreneurs who don’t get clear about what they want from life run the risk of starting a business that might not be a good business for them.
To read the full article... click here.
Friday, March 5, 2010
Subscribe to:
Posts (Atom)
Posts
