The pitch is a crucial time for small businesses. It's stressful, sometimes adrenaline fueled, sometimes smooth. Make sure YOURS is with these great tips from Entrepreneur.com
Why do great startups fail to get funding? Often, it’s not because of a
business shortcoming or how the entrepreneur presents the company. A
wrinkled shirt or a poorly received joke make subliminal impressions.
Sometimes, a minor flaw can derail the most well-rehearsed pitch.
To avoid killing your pitch and your growing enterprise, make sure you’re not committing these seven fatal errors:
Not Making Eye Contact. Most entrepreneurs spend a lot
of time rehearsing what they’re going to say but don’t actually look at
investors when they say it. Make direct eye contact to project
confidence, openness, and credibility. When do you stop looking? When
the investor acknowledges your gaze.
Fostering the entrepreneurial spirit!
Showing posts with label selling a business. Show all posts
Showing posts with label selling a business. Show all posts
Monday, December 23, 2013
Wednesday, December 21, 2011
Can Family Members Continue as Employees Post-Sale?
Family businesses form a large segment of the small business sector. Transitions can often be difficult when new ownership takes over. OED Certified Advisor Laurie Russelberg provides great insight into the concern of the transition on family members who seek to remain with a company.
Q. Our nephews each work for us, along with our kids. Is it true they’ll be looked at as “old wood” by new ownership? How do we ensure buyers know they are critical, not just family pulling paychecks?
A. This is central concern for family businesses considering a sale. Depending upon the situation and buyer, some or all positions may be in jeopardy. Is the potential buyer an existing business that has its own workforce? Or is the potential buyer an individual who will need to depend upon the current workforce?
Each situation is unique, but the best protection for future employment is to ensure the new buyer sees the family members as vital, contributing members of the company. A few suggestions to consider:
Ensure that each family member has a detailed job description. Can business performance be linked back to each employee and their respective job descriptions?
Can this be effectively communicated to the potential buyer? Don’t be shy about promoting the family members as vital to the wellbeing of the company.
After a sale, will the family members be able to adjust to the new ownership and a changed work environment?
Laurie Russelburg is an OED Certified Advisor and founder of Bridge Business Consultants, Orlando, FL. Contact Laurie via LinkedIn to help your business grow, prosper and transition.
Q. Our nephews each work for us, along with our kids. Is it true they’ll be looked at as “old wood” by new ownership? How do we ensure buyers know they are critical, not just family pulling paychecks?
A. This is central concern for family businesses considering a sale. Depending upon the situation and buyer, some or all positions may be in jeopardy. Is the potential buyer an existing business that has its own workforce? Or is the potential buyer an individual who will need to depend upon the current workforce?
Each situation is unique, but the best protection for future employment is to ensure the new buyer sees the family members as vital, contributing members of the company. A few suggestions to consider:
Ensure that each family member has a detailed job description. Can business performance be linked back to each employee and their respective job descriptions?
Can this be effectively communicated to the potential buyer? Don’t be shy about promoting the family members as vital to the wellbeing of the company.
After a sale, will the family members be able to adjust to the new ownership and a changed work environment?
Laurie Russelburg is an OED Certified Advisor and founder of Bridge Business Consultants, Orlando, FL. Contact Laurie via LinkedIn to help your business grow, prosper and transition.
Wednesday, September 8, 2010
A Question for the Small Business Owner
If you decided to walk away from your business, could you sell it or are you “the business?”
This vexing question is posed by John Walters, OED Certified Advisor, and founder of 1-2-1 Business Consulting LLC. His insight below is eye opening for many a business owner!
Recently I visited two small businesses where the owners informed me that it was their intention to operate the businesses for another four to five years, sell off the businesses and retire on the proceeds.
However, upon further examination, it became apparent that the businesses could not operate for more than a few days without their owners; the businesses did not have the required processes in place to make them self sustaining. Without the owners, there will only be assets to sell when the owners come to retire.
Both businesses were probably worth between $150-200,000. Since the owners were thinking more in terms of $2million each, based on a multiple of 4, they are facing a huge gap and a bit of a wake up call.
When we began to discuss this issue further, it became apparent that the owners were spending significant time in the business. As such, they thought it only natural that they should make all the decisions.
This behavior in reality intensifies the problem – employees realize that there is little point in second-guessing what the owner may be thinking – they stop thinking for themselves and rely entirely on the owner. The opportunity for delegation is lost.
While it may be difficult to delegate tasks within a small business for any number of reasons, including cost, this must be done if the business is to become sustainable without the owner.
As a Business Owner ask yourself the following:
1. Do I really need to make every decision?
2. What can I delegate now?
3. What could I delegate if I give a little training to my employees?
4. What procedures can I put in place so that I do not lose control?
5. What are the vital few things that I must do personally?
6. At what stage should I bring in a manger to take over my responsibilities so that I may sell the business as a going-concern?
7. Do I really need to take every decision?
How you address these issues will ultimately decide if you have a business to sell as a going concern or simply a few assets to sell off. The value creation / destruction potential can be substantial. Think back to the two businesses that I referred to earlier that at looking at $150-200,000 vs. $2 million.
Please give careful consideration to investing in your future by making sure that you have sound Operational Planning, Succession Planning and Exit Strategies in place. The risk of not doing so is too great.
And, please remember that “121″ is there for you should you need any help.
This vexing question is posed by John Walters, OED Certified Advisor, and founder of 1-2-1 Business Consulting LLC. His insight below is eye opening for many a business owner!
Recently I visited two small businesses where the owners informed me that it was their intention to operate the businesses for another four to five years, sell off the businesses and retire on the proceeds.
However, upon further examination, it became apparent that the businesses could not operate for more than a few days without their owners; the businesses did not have the required processes in place to make them self sustaining. Without the owners, there will only be assets to sell when the owners come to retire.
Both businesses were probably worth between $150-200,000. Since the owners were thinking more in terms of $2million each, based on a multiple of 4, they are facing a huge gap and a bit of a wake up call.
When we began to discuss this issue further, it became apparent that the owners were spending significant time in the business. As such, they thought it only natural that they should make all the decisions.
This behavior in reality intensifies the problem – employees realize that there is little point in second-guessing what the owner may be thinking – they stop thinking for themselves and rely entirely on the owner. The opportunity for delegation is lost.
While it may be difficult to delegate tasks within a small business for any number of reasons, including cost, this must be done if the business is to become sustainable without the owner.
As a Business Owner ask yourself the following:
1. Do I really need to make every decision?
2. What can I delegate now?
3. What could I delegate if I give a little training to my employees?
4. What procedures can I put in place so that I do not lose control?
5. What are the vital few things that I must do personally?
6. At what stage should I bring in a manger to take over my responsibilities so that I may sell the business as a going-concern?
7. Do I really need to take every decision?
How you address these issues will ultimately decide if you have a business to sell as a going concern or simply a few assets to sell off. The value creation / destruction potential can be substantial. Think back to the two businesses that I referred to earlier that at looking at $150-200,000 vs. $2 million.
Please give careful consideration to investing in your future by making sure that you have sound Operational Planning, Succession Planning and Exit Strategies in place. The risk of not doing so is too great.
And, please remember that “121″ is there for you should you need any help.
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