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Should You Sell Your Business?

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open-sign-1617495_640There will come a time in most cases where small business owners have to make a difficult decision. Should they sell their business or if possible, keep it within the family?

If you find yourself in such a situation, you may find yourself dealing with some restless nights.

Of most importance, making the right call can set you up for years of stability if all goes well. If you make the wrong decision, all that hard work up to this point could go away.

So, what factors should go into whether you sell your business?

What Makes for the Right Sale?

In considering selling your small business, note these thoughts:

  1. Who are they?

If you ponder selling your small business, will you find the best person available for the deal?

There is a lot that goes into such a decision, so expect to do some soul-searching and of course research.

One of the reasons why background searches can make a difference is the information.

Given all the information that is floating around the worldwide web these days, one can learn a lot of details about others. From potential business sales to whether or not the person you are dating is who they say they are, the Internet can be your best go-to information source.

For instance, what if a prospective buyer has past money issues?

Although once you sell any problems are those of the new owner, you likely don’t want a negative impact on clients. Another potential issue is what if the prospective buyer’s money issues kill the deal at the last minute?

By going online and researching, you can get a full dossier in the person who might be buying your company.

  1. Is it time to sell?

Before you look at potential buyers, there is of course the need to decide if selling now is the right decision.

Depending on your age, you may be thinking about calling it career. But, this decision to sell might be you wanting to do something else in the business world.

Among the possibilities:

  • Starting a new small business venture
  • Going to work for someone else
  • Investing your money in other businesses

No matter what path you choose, know that selling your business isn’t something you need to make a rush decision on.

Take your time to weigh the pros and cons of unloading your business. Over a period of time, you might come to the conclusion that selling now is not in your best interests.

  1. Being financially sound

In the event you do sell, will you be alright with financial stability moving forward?

Keep in mind that the age you decide to sell out can very well have an impact on financial health down the road.

If you sell later in life, the money you receive in return can likely set you up for a nice retirement. In the event you sell earlier, will that money last? Remember, you still have personal expenses to handle. You also might have the need to go out and work again or look for another business venture.

Yes, you are likely to have much to think about when deciding if selling your small business is the right call or not.

Photo credit: Pixabay

About the Author: Dave Thomas covers business topics on the web.

 

Did You Hire the Right Financial Advisor?

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Risk Reward GraphGiven the importance of your financial investments (whether you are a business owner or just a normal consumer), it should come as no surprise that having the right person oversee them is something you should never take for granted.

That said you might be surprised how many consumers leave their financial well-being up in the air.

As a result, they leave themselves vulnerable to financial calamity sooner rather than later. Even if they stave off financial problems for the foreseeable future, their idea of a perfect retirement can very easily be put in jeopardy.

So, with the idea that investing in your financial future should always be taken seriously; take stock in your current financial picture and also where you would like to be down the road.

Research and Never Settle

If you haven’t already, start by research financial experts to see who and which investment company is best suited to handle your money needs.

With many still expressing concerns about an ability to retire one day, keep in mind that you are not alone with your fears.

You want a financial pro that has the following:

  • Experience – Although it sounds like a no-brainier, be sure that you hire someone who has some real meat on their financial resume. How long have they been in this line of work? Have they stayed with the same firm over time or jump around from place to place? What do their colleagues think of them? Have they and/or their company been involved in any concerning business matters over the years, notably complaints or even lawsuits from consumers? These are all areas that you should research;
  • Customer service – Nothing is more irritating as a consumer than having to chase down the person who is supposed to be working for you, not the other way around. While that individual obviously has countless other clients, be sure they can make time for you when needed. Whether it is a simple financial investment question or you have a financial matter of urgent concern, they need to be as accessible as possible to you.

You Have a Job Too

While locating the right financial pro is necessary in advising you of the best moves with your money, you also have an important role to play.

Unlike younger investors who have some “recovery time” on their hands when they either get a late start and/or make a few financial investment mistakes here and there, older investors do not have such luxuries.

If you are an older investor, it is important that you make sure all your financial eggs are in order, including playing catch-up if you are over the age of 50. Investors over that age are allowed to invest more money (up to a limit depending on if it is an IRA, 401K etc.) than younger investors.

Another key area of importance is whether you have a family or not.

If you are on your own, you have a little more flexibility. For those with a spouse and perhaps a child or two, financial decisions become all the more important.

Individuals in these situations should also make sure that they have a sound life insurance plan in place.

With a good life insurance plan, the breadwinner of the house can rest a little easier, knowing that his loved one or ones are covered should he or she become disabled and unable to work or even pass away.

While insurance agents are typically the go-to people for life insurance and other such needs, your financial pro can help lay out the basics for you, giving you some guidance on how having such a policy can impact your financial situation now and down the road.

Finally, with April 15 (tax day) creeping closer and closer, be sure to understand how your financial decisions can and will impact your tax burdens.

If you are contributing to personal IRA’s for example, you can note those contributions as deductions for the previous calendar year, lessening your taxable income.

With all there is to know about your financial situation today, tomorrow and ultimately down the road, make sure you’ve gone about hiring the right financial advisor for all your monetary needs.

When you do, you could find yourself being one happy camper.

Photo credit: BigStockPhoto.com

About the Author: Dave Thomas covers business and financial topics on the web.

Give Yourself Credit in Finding the Right Business Credit Card

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When you run a business, you have a plethora of responsibilities that must be covered.

Hiring the right talent, keeping your company on budget, making sure your customers are happy etc. are just some of the things that can leave business owners counting sheep at night.

One area of importance that may oftentimes get overlooked is finding the right business credit card. Whether you are using a merchant card for customer transactions or one for business expenses that you and/or your team will use, means finding the right credit card provider that offers both stellar customer service and a price everyone can agree on.

Know the Numbers

First and foremost, make sure when selecting a card for your business that you do your research.

Keep in mind that not all cardholders are alike. Some may state they have great deals for you, but you will find after reading the fine print that it is not that great after all.

Ways to go about landing the right card include:

  • Research – Take to the Internet and review a half dozen or more card provider websites. Make sure the information they report jives with what you need. Also view their social media pages to see if they have courteous and prompt responses to customer inquiries;
  • Pricing – Look to see what their APR rates are (see more below). Given these numbers can and oftentimes change over time, you do not want to get locked into a card that will ultimately be bleeding you money over time;
  • Referrals – Check with others (family, friends, businesses you are on good terms with etc.) to see who they recommend. In today’s financial world, a business recommendation can go a long way.

According to Jeffrey Weber of SmartBalanceTransfers.com, for most consumers, especially those intending to use their new credit card for purchases, a 0% APR credit card for balance transfers and purchases can provide the best value. “Unfortunately, the number of credit cards offering a 0% APR on both purchases and balance transfers has become somewhat limited in recent years. However, a few credit cards still offer these deals,” Weber noted.

For the man or woman running their own business, credit cards are all but a necessity in today’s financial world.

Online Shopping Continues to Grow

Take note that many more consumers are now turning to online shopping to make product and service purchases. If you don’t have a credit card option for them, you can be missing out on a substantial revenue collection.

Secondly, there is a very good chance when running a business that your employees will either need a business credit card to make purchases (office supplies etc.) or for when meeting with current and potential clients (meals etc.). Without a credit card in hand, these transactions can be made more difficult.

If you do not already have a business credit card, take the time now to shop around and sign up with the provider that offers the best service and prices.

When you do, take credit yourself for making a good deal for your business.

Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net

About the Author: Dave Thomas writes for a variety of websites on topics such as human resources and running a small business.

 

Don’t Take Credit if Your Business Only Accepts Cash

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The smart small business owner is the man or woman who gives their customers options.

With that being said, what options do you give the customers who buy goods and services from you? Is it a cash-only policy or do you also let customers charge, perhaps even using mobile payments?

As more customers look for the most affordable and convenient shopping experience, it behooves the small business owner to let consumers buy with more than just cash.

If you stop and think about it, look at what you are missing out on if you have been a cash-only business up to this point:

* Many customers do not like carrying sizable amounts of cash on their person, so they will typically spend less with you if they can’t charge via traditional means or mobile payments;

* Many customers will shop on impulse if they have the plastic option, meaning you stand to gain more sales. As many consumers battle through tough financial times, they are less apt to spend when you only accept cash, as it is more painful to part with the green stuff from their wallets or purses;

* Many customers like the ability to buy while on the go or do online shopping in the convenience of their homes. If you only accept cash payments, you limit the amount of sales you can register.

With those three reasons for accepting more than just cash payments, will 2013 be the year you expand your customer offerings.

When it comes to standard credit card transactions, don’t let the reports of customers cutting back on their plastic scare you.

Yes, a number of surveys do indicate that customers are slicing down their credit card debt, but that doesn’t mean they won’t charge for quality products and services.

According to The Fed, consumers have cut back on using credit cards since the 2008 credit crisis. Just over four years ago, Americans had compiled $1.03 trillion in credit card debt, an all-time high. In July of 2012, it was $850.7 billion — or 17% less. One financial expert pointed out that while many Americans continue to spend, they have instead turned to using pay-as-you-go-debit cards and cash as opposed to credit.

Despite that news, the smart business owner will make sure that credit cards are an option for his or her customers. Without them, one’s sales are likely to be impacted.

Mobility Matters Going Forward

Another area to focus in on in 2013 is mobile payments.

Portio Research recently reported that more than 81 million people around the globe used their mobile devices to make purchases (including in-app payments, mobile ticketing and mobile coupons) only three years ago. Prior to 2015, that figure is projected to hit some 400 million users worldwide.

If you have yet to delve into mobile payments for your business, think about the potential sales you could be missing out on by not offering them. With more mobile technology on the way, it only stands to reason that many consumers will want the speed and ease of making purchases with such payments.

In the event you have had a cash-only policy up until now, rethink the options available to you going forward.

With credit cards and mobile payments, your company could unlock the door to substantially more business.

Photo credit: bizplanhacks.com

About the Author: Dave Thomas covers small business topics for various websites, including gold prices.

What Are You Doing to Weather the Economic Storm Clouds?

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Depending on which financial analyst or politician you listen to, the U.S. has either averted going off the financial cliff for now or is poised to run into even tougher financial roadblocks ahead.

So, what should small business owners be doing to position their companies for what appears to be slower economic growth for the remainder of this year?

First and foremost, do not panic.

Small business owners need to remember that the economy always goes through its ups and downs, so doing a major layoff or cutting back dramatically on one’s advertising and marketing budgets, those kinds of moves typically do not make good financial sense.

As one who runs a small business, think about the following:

* Manpower – Whether in good financial times or not, having the right size staff in place is very important. If you find that finances are dictating you need to cut some people, look at a few options. First, how would your business be impacted if you lost some people? Would it impact the services you provide to customers? Secondly, would those remaining employees be asked to take on added responsibilities while still receiving the same salary they are now? If so, will that create some morale issues in the office? One option before cutting is talking to those you are thinking of letting go, seeing if they would stay on at a reduced salary and possibly decreased benefits or picking up more of the tab to continue receiving benefits;

* Promotions – One of the biggest gaffes small business owners make when the economy gets challenging is cutting back on their advertising, marketing, and public relations campaigns. The thinking is oftentimes that competitors are doing the same, so it is a safe time to trim this area of business. Actually, it is probably the worst time to do it, as some competitors are doing just the opposite. While there may be times you need to trim such budgets here and there, never go into a full-scale cut, because you will likely miss out on potential sales. Instead of trimming your main promotional budgets, look to do more with free promotion vehicles such as blog posts and social media;

* Future – Undoubtedly, tough economic times will pass for many who run small businesses, so it comes down to a matter of surviving the difficult stretches, allowing you to prosper when things improve. You should always be thinking growth and not contraction as you look at the big picture. What can you do to grow more with the resources you presently have? How can your company pull itself away from the pack and give customers something no one else can? Finally, how can you as a business owner safely guide your company through some stormy financial seas, knowing that there is a light at the end of the tunnel? Always be thinking about what the next step takes to grow your business;

* Past – Finally, never forget where you started from and where you are now. In order to be a successful business owner going forward, you need to learn from your past mistakes. Whether it was some bad hires or layoffs, some bad investments, or even spending too much money for products and services needed for you to run your company, never make the same mistake twice.

As a small business owner, what are you doing to make your company as economically sound as possible in 2013?

Photo credit: mozy.com

About the Author: With 23 years’ writing experience, Dave Thomas covers small business topics for a variety of websites, including Reputation.com.

Dear American Worker, Are You Pessimistic On Your Retirement Plans?

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The last few years have brought some unwanted news for many American workers and that does not appear to be changing anytime soon.

According to a recently released report from the Employee Benefit Research Institute (EBRI), worries regarding one’s job security and mountains of debt are leaving many American more doubtful than ever when it comes to their retirement.

The recent EBRI survey (approximately 1,270 workers and retirees ages 25 and up) shows that a mere 14 percent of workers claim to be “very confident” they will have enough money to live a comfortable life during their retirement years. Meantime, 38 percent of workers claim to be “somewhat confident” and 23 percent report they are “not at all confident.”

According to many of the survey respondents, current priorities trump retirement plans at this point and time.

Job Security a Major Concern

The survey shows that approximately 42 percent of respondents claim a lack of job security is the number one issue they are facing, with only 28 percent of workers claiming to feel very confident they will be gainfully employed for as long as necessary. Lastly, 62 percent of workers report that their debt is their biggest challenge now.

Money put away for retirement is a big obstacle right now for many American workers, as approximately 60 percent of those surveyed report having total savings and investments of less than $25,000 (excluding the value for their residence and defined benefit plans). Even scarier, nearly 30 percent of these respondents claim to have less than $1,000 in their savings.

According to an EBRI spokesperson, “A lot of the people who have either lost their jobs or are worried about losing their jobs are trying to put a little money away for a rainy day and just don’t have money to put into savings right now.”

High Health Care Costs Prove a Burden

One of the major factors right now eating away at available money to put into savings are high health care costs. According to the survey, only 13 percent of respondents state they are very confident they will be able to meet medical expenses when their working days are over. Meantime, just 26 percent of workers claim to be very confident that they will even have the necessary funds to cover basic expenses.

As the American population ages, the irony of the health care issue is that advances in that very area leads to longer life expectancy for millions and millions of people. Living longer lives also means needing to put away more money in order to meet those needs.

With retirement funds scarce for many American workers, more and more are delaying retirement in order to keep a regular paycheck coming in, while increasing their Social Security benefits by waiting to ages 67 and 70 to start taking benefits.

On the down side of that idea, approximately half of current retirees report they exited the workforce unexpectedly due to health matters, a disability, or an employer that let workers go or even ceased operations.

So before gloom and doom set in from reading these numbers, the report does point out that more employers are automatically enrolling workers in retirement plans such as 401 (k)s, with many of those companies increasing contribution levels on a yearly basis.

EBRI’s spokesman pointed out that “We continue to find that employees lucky enough to be working for an employer that sponsors retirement plans — and who choose to take advantage of it — are not only much more likely to have a significantly higher amount of retirement savings, but also much higher confidence.”

As an American worker, what do you view your retirement to be like?

Are you confident today that you will have enough money for tomorrow or should you be doing A, B, and C to right your financial ship moving forward?

Photo credit: gobankingrates.com

Dave Thomas, who covers among other topics workers compensation and credit card processing, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.