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Cash Flow Normalization

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
1 month ago

Cash flow normalization is done with the intention of identifying Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). These differing measures are not interchangeable, but are used by different classes of buyers for different categories of acquisition. Free cash flow is an important measure when calculating the value and price for any business. It is the amount theoretically available for servicing acquisition debt, working capital, return on investment for any cash outlay in the acquisition, and future expansion. Cash Flow Measures EBITDA establishes free cash flow as a measurement for most mid-market businesses. It evens out the differences in earnings caused by various tax jurisdictions. In the United States, there is federal income tax at the corporate level, but many states have additional income taxes, and in some cases, even smaller jurisdictions like cities may have their own income tax. These obviously impact the profitability of a company and could distort a buyer’s impression of its profitability. EBITDA calculations do not include the owner’s earnings, since the companies being examined are more likely to be acquired by investors who would replace the owner with a management executive. SDE is the measurement used to illustrate the sum total of financial benefits available to the owner-operator of a business. It assumes that the owner is running the company on a day-to-day basis. SDE encompasses not only salary, bonuses, and distributions, but includes insurance and other benefits such as a company-paid vehicle. A simple way to put it is that EBITDA is the cash flow available for a return on investment. SDE is the cash flow available for a return on the owner’s labor. Making  Adjustments In the SDE calculations, there are two places where there is often an adjustment of expenses to market. The first is for a family member employed in the business or partners who intend to leave simultaneously with the principal owner. In many instances, family members are paid according to their needs or the needs of the business instead of at a market rate for the position. With family members who are “underpaid” adjusting to the market rate will have the effect of reducing the cash flow available in the business. This reflects the fact that the family member or partner will have to be replaced by someone who is unlikely to work for a below-market salary. The opposite is of course true for family members or partners who are overpaid. Reducing their compensation to a fair market rate will add to the discretionary cash flow of the business. A second area of adjustment is when the owner of the company also owns the real estate that the company operates in. Again, the rents paid on the real estate often reflect the owner’s objectives more than they do the practical reality of the local real estate market. A company that is underpaying rent is having its bottom line shored up by the reduced income to the real estate entity. Overpayment of rent requires the owner to make a decision. If they expect the same rent from a new tenant, the profitability of the business as presented to a prospective buyer will be lower. Considering that most transactions involve a multiple of cash flows, you can usually point out to the owner that trying to maintain a higher rent is not in their interest as the seller of the company. Adjusting the rent to a market rate increases the cash flow of the company and presumably the basis for an evaluation multiple. Which Cash Flow is “Right?” The decision of whether to use EBITDA or SDE when calculating cash flow is dependent largely on the size of the client’s business. If the company has cash flow in excess of $1 million annually or is large enough to be a likely target for professional buyers, EBITDA is the appropriate measurement for cash flow. If the company is going to be purchased by family members, employees, or another entrepreneur and has a cash flow of less than $700,000, SDE is almost always a more appropriate measurement. Which cash flow is used is a situational decision and may change if different classes of buyers are being engaged.   This article was originally published by John F. Dini, CBEC, CExP, CEPA on

Private Equity Leverage

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
3 months ago

Private equity leverage can dramatically increase ROI, but it can also be a trap. In our previous article, we discussed the general structure of Private Equity, how it works, and the types of Private Equity Groups (PEGs). They have grown rapidly as an alternative investment that produces far better returns than Treasury Bills or publicly traded equities. The Power of OPM (Other People’s Money) How do they provide these enviable 18% to 25% returns on an investment? The simple answer is leverage. An example most business owners can easily comprehend is a real estate mortgage. You put down $100,000 on a $500,000 building. The mortgage, especially in the first few years, is largely interest expense. You lease the building for a rental rate that covers your mortgage payment and expenses. Two years later you sell the building for $700,000. How much did you make? The obvious answer is $200,000, but what is your Return on Investment (ROI)? If you said 40% you’d technically be correct. You made a $200,000 profit on a $500,000 investment. But what was your cash-on-cash return? That is 200%. You actually invested $100,000 of your own money and used the building to secure a loan for the rest. Your profit was $200,000 on a $100,000 investment. Private Equity Leverage Extend this example to buying a business. The business makes about $2,000,000 a year. (For the sake of simplicity, we won’t discuss here the differences between cash flow and profit.) The agreed-upon acquisition price is $10,000,000, or five times the profits. The PEG contributes $2,000,000 as a downpayment and finances the remaining $8,000,000. The cash flow of the business must cover the loan payments and leave enough working capital for operations. A 5% loan amortized over 20 years requires a payment of about $53,000 a month or $636,000 a year. The remaining cash flow ($1,364,000) produces a return of 68% annually on the purchase. Of course, the Limited Partner investors don’t get all 68%. Some must be kept as working capital for expanding operations. The PEG receives substantial fees for creating the deal and overseeing the investment. In fact, the 25% return to the investors is only part of the story. If the PEG can double the company to a $4,000,000 profit level, even the exact same 5x multiple on exit could produce a $20,000,000 sale, or an $18,000,000 return on the original $2,000,000 cash outlay. That’s a 900% ROI. Leveraging the Leverage Buying a middle-market business with the structure outlined above would be lucrative enough, but of course, as professionals, the PEG would like to maximize their return. They frequently cut expenses dramatically upon acquisition (more on this in the next article.) Often, they will line up a secondary loan, using the company’s cash flow to reduce or eliminate their downpayment exposure. During the low-interest environment of the last decade, PEGs could negotiate even more favorable terms. If you replace the 5% loan with a 2.5% loan, the annual cost is reduced to $509,000 annually, leaving a 75% return to work with. Traditionally, most of the loan terms in private equity purchases reset after a few years. Refinancing at 9% raises the loan cost to about $865,000. Still, a 57% ROI is acceptable, if the business is thriving and the other expenses are kept under control. If the cash flow is covering a secondary loan at an even higher rate to replace the downpayment, or it’s been pledged to cover other debt outside the business, the picture might not be as rosy.   This article was originally published by John F. Dini, CBEC, CExP, CEPA on

ERA // Manufacturing Consumables & Packaging News

Ken Nixon of Expense Reduction Analysts is a member of XPX Tri-State
Ken Nixon
Expense Reduction Analysts
1 year ago

There is significant evidence that supply chains have “normalized.” Delivery times are fast and overall demand is low. Many companies are now looking at “longer-term” supply chain planning and changes. Some of these changes include multi-sourcing and digitizing supply chain operations. Geopolitical events and resulting tariffs/sanctions could quickly change the supply chain landscape, however, so it is more important than ever to be nimble with respect to strategic and tactical planning.

10 Ways to Reduce Freight Costs

Ken Nixon of Expense Reduction Analysts is a member of XPX Tri-State
Ken Nixon
Expense Reduction Analysts
1 year ago

Expense Reduction Analysts (ERA) are looking at numerous ways to help companies save money and improve processes in an inflationary environment. One of ERA’s most successful verticals in assisting companies with their freight costs. Need: Business leaders are looking at unique ways to combat inflation and reduce freight costs. Solution: ERA’s freight specialists put forward 10 unique ideas to combat rising freight costs as a catalyst to initiate a conversation with decision-makers and promote our expertise. Value: Decision makers who utilize ERA’s group of experts will save more than with their internal teams alone. Please take a look a the attached PDF. Reach out if you have any questions or if I can be of help.

High Revenue, No Cash? – Top 7 Reasons to Get an Annual Forecast

Gershon Morgulis of Imperial Advisory - Fractional CFOs and Advisors is a member of XPX Long Island
Gershon Morgulis
Imperial Advisory - Fractional CFOs and Advisors
1 year ago

Shelby Jackson – Marketing Associate   Revenue is up! But you have less cash than ever. Why is that? We’ll be covering the top 7 reasons why, like many other businesses, you might have no cash despite revenue being up. Then we’ll discuss important things to consider as you build your annual forecast.   Reason 1: Delivering Before Getting Paid Revenue is up, but you have 3 types of revenue and the biggest one is net 30 (or net 60 or net 90). Sales are up, but you have no cash because you let your customers wait to pay. Being flexible with your customers is great, but do you know how it is impacting your business? If you have revenue growth but you get paid after 30 or more days, you need to pay your staff and probably your suppliers. That could cause a cash crunch in a rapidly growing company.   Reason 2: Accounts Receivable Problems, You are Selling but Not Getting Paid for all your Sales Not all revenue is created equal! If you’re selling but not getting paid for all your sales, you could have Accounts Receivable (A/R) Problems and you will be short on cash. Some clients never pay! If you get stiffed by your customers, you still put time, money, and effort into supporting the sale. Make sure you’re selling to people who will pay!   Do you know what type of customers you are adding?   Reason 3: Returns! Clients return things and you refund the revenue If your customers buy more stuff and return it in a way you can’t resell it, you have all the expenses of producing the high sales, but not all the revenue you thought you’d get. Your sales are lower (because returns are not sales) but your expenses are higher!  Are you looking at the right sales figures?   Reason 4: Inventory Are you sitting on too much inventory? Even if everything you’re selling is highly profitable, a warehouse full of inventory costs money to contain and the inventory will eventually become ruined or obsolete.  Do you know how much inventory you need to grow your business, and do you know how much cash you’ll need to support your future inventory needs?   Reasons 5: Unprofitable Business You are selling but losing money! Here’s a case scenario. You have 5 products that make sense in a specific mix, but some of those products may actually not be profitable. You choose to keep them as loss leaders, to fill in gaps, or as a way to use extra scrap material. But what if your sales increases are from products like that?  Is that where your money is going?   Reasons 6: Inflation You are selling more but costs are higher, so it is actually less profitable! Inflation rapidly increased in 2022. According to BLS.gov, the United States saw the annual inflation rate increase by 7.1% as a result of the lingering effects of COVID shutdowns, supply-chain disruptions, and more. Even if revenue is up, income may be down due to higher expenses. Are you selling more units or just the same number of units (or fewer!) at higher prices? Are your expenses going up faster than your revenue?    Reasons 7: You are selling more but debt and other overhead are eating all your profits You are making profitable sales, but your overhead is costing you way too much. This could include debt used to finance inventory, expansion, or even prior losses.  Do you know how much your overhead is? How much do you need to sell to pay for your overhead? Will your overhead change as your revenue increases?   How do I avoid this happening in the future? Our Answer: Build an Annual Forecast   If you know how much you will really sell, how much profit that will really produce, how much inventory, financing, and overhead you’ll need to make this all work, you’ll have a better plan and lots of advanced notice on cash flow issues – well ahead of time and before they become problems.   You’ll be empowered to pick products that will make you more money. Reject customers that will cause you hassles, and plan for your overhead needs so that you have the necessary resources (human, financial, marketing, and more) to take your business to the next level.  There are multiple factors that can lead to no cash despite revenue being up, and sometimes it can be difficult to pinpoint exactly how to move forward! An annual forecast is a great way to plan the next steps for your business to make measurable and intentional decisions for increasing cash flow.    About Us Our team of seasoned CFO’s at Imperial Advisory have over 150 years of collective experience giving valuable corporate finance insights that can help you put your best foot forward in 2023! For more information, reach out to www.bls.gov/news.release/cpi.nr0.htm

Helping SMB’s increase their chance of success

Eric Harrison of 4Impact Data is a member of XPX Dallas
Eric Harrison
4Impact Data
2 years ago

A recent report says that businesses who utilize a mentor(s) have a 70% greater chance of surviving beyond 5 years than those who don’t. This seems intuitive, yet why do so many entrepreneurial owners not employ this strategy? All of us when we started in business didn’t know what we didn’t know but today it is much easier to identify knowledge gaps and to use Codified Wisdom to answer critical questions to business survival. Our Knowledge as a Service-based software company gives SMBs affordable access to impactful data and increases their ability to not just survive but thrive. It also tees up information for Coaches and Consultants to come in and save a lot of time by having clear, understandable information that can be implemented immediately. Not only that but without knowing it and by making data-based decisions versus running by gut, owners are preparing themselves and their business for a more smooth and profitable exit whenever the time is right.

How a less-than-appreciated employee became a successful entrepreneur and saved the environment

Dominick Wallace of Wallace Capital Funding is a member of XPX Atlanta
Dominick Wallace
Wallace Capital Funding
2 years ago

Starting a business can be hard. From managing your supply chain to hiring staff, it is not cheap or easy. And it’s important for small business owners to have the support they need. Wallace Capital Funding, LLC serves this role as we ensure businesses get the support they need through financing and guidance. This is the story of one client named Steve and how Wallace Capital Funding, LLC provided him with the invaluable foundation his company needed. Steve is an entrepreneur whose past venture was with an employer, who did not appreciate his ideas or pay him as much as he deserved. After one disagreement, Steve believed he could do a similar job by himself and so he left. Steve’s product was a de-icing product that removes snow and ice. The difference between his product and popular remedies such as salt or cat litter is the environmental impact. Road salt and cat litter both have chloride-based properties that when melted, they wash into soil, lakes and streams. According to the Environmental Protection Agency, road salt ends up killing or endangering wildlife as high chloride levels are toxic to fish, bugs and amphibians. Even outside of the environmental concerns, Steve’s product proved to melt ice so it does not re-freezes. How did Wallace Capital Funding, LLC help? Steve came to Wallace Capital Funding, LLC to get support in manufacturing his product. He already had a contract with a retailer but he needed about $500,000 worth of equipment to manufacture his product himself. Wallace Capital Funding, LLC suggested he get a contract manufacturer to make the product for him so he would not have to worry about getting equipment or hiring staff. It would also allow him to focus more on promoting his product and getting more business. This also allowed him to save his profits and build his cash reserve. This is an important priority for less-established businesses with little to no credit profile. Now, Steve is looking to expand other products by attending business conferences and association conferences across the country. And his company will quadruple in profits this year alone. This was all possible using purchase order funding, which gives younger and less-established companies the chance to receive money through purchase orders like invoices to pay their suppliers. Things like personal or business credit is less important than ensuring your customers will pay their invoice. We knew Steve’s customers would pay so we funded his equipment and materials needs and sure enough, they did pay. With the help of Wallace Capital Funding, LLC, we find flexible funding options for start-up companies and well-established businesses alike. Work with our experts today to get the process started! You can also join WCF’s mailing list found on our website or call us at 1-800-809-5629. For all of your business financing needs, Wallace Capital Funding, LLC can help. Whether you need funding for new equipment, financing commercial real estate, or to cover staff expenses before your contract payment comes through, Wallace Capital Funding, LLC can create a custom funding solution that’s right for you.

Are all finance lenders the same?

Dominick Wallace of Wallace Capital Funding is a member of XPX Atlanta
Dominick Wallace
Wallace Capital Funding
2 years ago

With so many options to choose, what sets Wallace Capital Funding, LLC apart? With an estimated 5,500 financial institutions in the United States, there are lots of options for you to choose from. Whether you need a rehab loan or you need financing on the purchase of an investment property, it is important to trust your lender. This was the case for one Wallace Capital Funding, LLC client who felt overwhelmed with so many options and wanted to know what makes us different from everyone else. The biggest difference? Our membership with the Small Business Financial Exchange (SBFE). SBFE is a trade association of business lenders and merchant acquirers that advocates “for the safe and secure growth of small businesses.” SBFE has a group of certified lenders that help small businesses get an accurate look of their credit history and Wallace Capital Funding, LLC is the only real estate lender that is a member. Who else are members of SBFE? Large financial institutions such as American Express, Bank of America, PNC Bank, Wells Fargo and more just to name a few. It’s no coincidence that Wallace Capital Funding is on the same stage as these multibillion dollar banks and other financial institutions. And oftentimes, they are not conducting the same services as WCF including the Business Fund Analysis and getting them various lines of credit. Well, that’s impressive but what else makes Wallace Capital Funding, LLC different? It’s our ability to report on business credit profiles. Reporting on business credit profiles allows us to have more lines of credit (i.e. more money) for our clients than traditional institutions. The same institutions that are known to corner their clients into continuously working with them in an expensive and never-ending cycle. They don’t want their clients to end in better places. We do. One WCF client had several investment properties but for one of them, he needed money to fix it up. He was looking for good terms in funding like a thirty-year mortgage rate. He had decent income in that property but wanted to transition into a different stage in life and take advantage of other opportunities. To do this, he needed access to additional funds. He also wanted the opportunity to not be in the same position by getting a line of credit from the bank. Working with Wallace Capital Funding gave him the chance to not only get him funding to fix his properties but reporting on his credit profile allowed him to get multiple lines of credit. Now, he has flexibility to cash out on his properties and invest in others. If you too would like flexibility in your investment properties, Wallace Capital Funding, LLC can help. Whether you need funding for new equipment, financing commercial real estate, or to cover staff expenses before your contract payment comes through, Wallace Capital Funding, LLC can create a custom funding solution that’s right for you. Our consultants will report on your business credit profile to help ensure you can get the cash your business needs. You can also join WCF’s mailing list, which can be found on our website or give us a call at 1-800-809-5629 to learn more.

Can you cash out using an SBA Loan?

Dominick Wallace of Wallace Capital Funding is a member of XPX Atlanta
Dominick Wallace
Wallace Capital Funding
2 years ago

Loans from the U.S. Small Business Administration can help businesses “start, build, and grow” but can they also be used to cash out? If you are a small business owner, chances are you have heard of SBA loans. If you haven’t, SBA loans are a means of funding for small businesses through the U.S.’s Small Business Administration. These loans give small business owners the chance to get financing with the backing of the federal government. The federal government guarantees the loan so if something happens, they will pay back the bank if the loan defaults. Say you invested $500,000 in the constructing and building of your business and you wanted to cash out. Could you actually cash out using an SBA loan? One couple came to Wallace Capital Funding, LLC with the same question. The couple had a long history of coaching local kids in basketball and wanted to have a basketball facility of their own as a way to give back to their community. But not just any basketball facility, they wanted to have a world-class basketball gymnasium for kids to come and train. Without taking out any loans, the couple invested $3 million of their own money and brought this multi-million dollar facility to their community. The facility turned out to be a large success and amassed millions of dollars in value. The couple wanted to see if they could cash out their investment through an SBA loan. The answer is it depends. Currently, we are looking into the method of how they invested into their business. Under SBA guidelines, there are regulations on ways and how much you cash out? Every transaction is different, and unique rules apply to your specific opportunity. The benefit of working with Wallace Capital Funding, LLC instead of a bank is that we will work with you to ensure the structure of your loan application under SBA guidelines from a business owner point of view. WCF consultants will use the Business Funding Analysis to help structure the deal properly so you can get the cash your business needs. You can also join WCF’s mailing list, which can be found on our website or give us a call at 1-800-809-5629 to learn more. For all of your business financing needs, Wallace Capital Funding, LLC can help. Whether you need funding for new equipment, financing commercial real estate, or to cover staff expenses before your contract payment comes through, Wallace Capital Funding, LLC can create a custom funding solution that’s right for you.

Now is the time to sell a building BEFORE the exit strategy comes to market!

Russell Hughes
Hughes Realty Advisors
2 years ago

The commercial real estate market has never been this hot. Consider a sale leaseback instead of hoping that the business buyer wants to own a building too. I can’t count the number of times I have been called in with 24-72 hours left to close to “clean up” the real estate aspects of a transaction. Why wait till then. Business owners looking to exit in the next 12-48 months should take advantage of these amazing market conditions.

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Exit Strategy – Harvest or Grow?

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
4 days ago

  In every internal transfer, whether to family or employees, the owner/seller has to make the harvest or grow decision. We’ll presume that your business has already reached a point where its value meets or exceeds your financial objectives as the owner. If growth is required in order for you to afford your next act, then that decision is less strategic than it is driven by your lifestyle requirements. If the company has already reached a substantial level of success, however, you may still be tempted to maximize cash flow until your departure. Deliberately reducing your cash flow by starting a process of equity transfer may not sound very appealing. The obvious question is “Why would I sacrifice my personal income in order to finance their acquisition of my company?” Why not harvest? The answer to that question revolves around the strength of your desire to control the process. Although staged internal transfers of equity almost inevitably require that the owners surrender some personal income at the outset, there is considerable psychological value in dictating the timing, method, and eventual proceeds of your exit. When compared to the listing and sale process of presenting the company to third-party buyers, an internal transfer allows the maximum of owner control. There is no exposing the finances of the company to strangers. It doesn’t require negotiating, sometimes against professional negotiators, or against low-bid opening offers. Since internal buyers are already familiar with the organization, it can circumvent the often excruciating process of due diligence. IAs a seller, you can look at your up-front funding of initial equity purchases as a sort of insurance policy. No lender will fund 100% of an employee purchase, and family purchases are rarely financeable. Transferring equity to the buyers, whether it is fully paid for or via a subordinated note, allows them to finance the balance of the purchase. The “insurance” factor is usually understood. In return for sacrificing some cash flow now, an owner can leave on a chosen departure date with 70% or more of the proceeds in hand. The longer you wait, the higher the probability that you will have to owner-finance the entire transaction. Why not grow? There are also a few arguments against a growth strategy. The chief one among these is time. If you are pressed for time due to the influence of one of the 

What is an Exit Plan?

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
1 week ago

“What is an Exit Plan” is an article I wrote ten years ago. It was just brought to my attention and I realized I never posted it to Awake for some reason. Here, with some updating, we celebrate its 10th anniversary. Exit planning is the buzzword for those who consult to Baby Boomer business owners. Business brokers, wealth managers and other professionals are adding “exit planning” to their marketing messages. It’s a logical reaction when over 5,000,000 Baby Boomers (about 3,000,000 in 2024) are preparing to leave their businesses. Not surprisingly, when a business broker creates an “exit plan,” it usually involves listing the business for sale to a third party. An attorney’s planning focuses on the legal documents that allow the transition of the assets of a company to new ownership. An accountant or financial planner will look closely at tax and inheritance issues, and an insurance broker offers products that reduce the risk of interruption or disaster. All these are important to the successful implementation of a plan, but each professional focuses on his or her specific skill set. If your shoulder hurts, you could go to an orthopedic surgeon, a neurologist, a general internist, a chiropractor, or a physical therapist. Each will have a treatment approach for a painful shoulder. Each will be different, based on his or her specialty. Each will reduce the pain at least somewhat, although some of them may or may not address the underlying cause. Similarly, there are many professionals who claim competence in exit planning. Each has a different area of expertise, and what they term exit planning tends to focus on those areas. A comprehensive exit strategy encompasses legal, tax, and risk management issues, but it also examines the operational issues of the company whose value is the underlying driver for everything else. Why do an Exit Plan? Before drafting the first document or embarking on a plan to spend the money from a sale, the business must first realize the proceeds of a transaction. That means it must find a buyer who will pay for it. That buyer could be a third party, but it might also be an employee, an employee group, or family members. Any third party considering the purchase of a business will do extensive due diligence. Their willingness to pay a premium for a company will depend on its track record of revenue growth, the stability of its margins, and how well-established its systems and customers are. If the company is larger than about twenty employees, they will look for supervisory and management talent who will stay after the sale. Regardless of size, a business that is highly dependent on the owner for revenue or making all key decisions will be deeply discounted or even impossible to sell. An exit plan should look at these factors and help to make the adjustments needed to realize full value. Selling to employees or family is often an attractive option because it allows the ownerto choose a retirement date, and price is less of an issue than financing terms. Unless you are willing to accept a promissory note for most of the price and feel secure that your successors can maintain payments over a long period, a plan for this kind of exit should begin at least three, and preferably five to eight years before the planned transfer date. What is an Exit Planner? An exit plan needs legal, tax, risk and wealth management expertise to be successful, but it also requires a practical examination of the operational strengths of your business. Selecting one professional to manage the efforts of everyone, and to help keep you on track, is a wise investment. In America, the average small business owner has nearly 75% of his or her net worth in the company (still true in 2024). The single biggest financial transaction of your life deserves special attention. ==================== This article was originally published by John F. Dini, CBEC, CExP, CEPA on

NLRB General Counsel Campaigns Against Non-Competes

Robert Brody of Brody and Associates, LLC is a member of XPX Tri-State
Robert G. Brody
Brody and Associates, LLC
1 week ago

Jennifer Abruzzo, the National Labor Relations Board’s (NLRB) General Counsel, is continuing her campaign against non-compete agreements. She just issued a memo announcing her office will seek more remedies for employees who are required to sign non-compete agreements. This follows previous statements in which she said non-compete agreements, which affect about 20% of US workers (30 million people), are unlawful. She has expanded her argument to include “stay-or- pay” provisions, stating they restrict workers’ job opportunities which (somehow) discourages unionizing. Non-Compete Agreements The NLRB is currently considering the legality of non-compete agreements under the National Labor Relations Act (NLRA) in a case involving an Indiana HVAC company. In a 2023 memo, Abruzzo explained why overbroad non-compete agreements are unlawful. She explained they hinder an employee’s ability to exercise their rights under Section 7 of the NLRA, which protects employees’ rights to take collective action including unionization. Abruzzo’s agenda has faced setbacks. In April 2024, the Federal Trade Commission (FTC) largely noncompete agreements, with some exceptions, however the ban was subsequently

A Time To Remember You Have A Seat At The Table

Maria Forbes of FIREPOWER Business Catalyst, LLC. is a member of XPX Atlanta
Maria C Forbes
FIREPOWER Business Catalyst, LLC.
3 weeks ago

As small business owners and leaders, we’re no strangers to the daily grind of comparison and competition. It’s easy to look at the success of others and wonder if we measure up. But this Thanksgiving, we’re taking a page out of Heather Holleman’s novel1, “Seated with Christ: Living Freely in a Culture of Comparison,” and the transformative words of Ephesians 2:6: “God raised us up with Christ and seated us with Him in the heavenly places in Christ Jesus.” In the hustle to prove our worth and carve out a place in the market, realizing that your seat at the table is already secured is revolutionary. This isn’t about your turnover, your team size, or the number of followers on social media. It’s about recognizing the value you bring to the table just by being you, backed by the firepower of your determination, creativity, and the unique vision only you possess for your business. The Overlooked Seats Comparison is the thief of joy in business, and it’s also the thief of innovation and growth. The environment of inauthentic seats fuels comparison, the moment you and your team stop eyeing the lane beside you is the moment you turbocharge your path forward. Your business isn’t like anyone else’s—for a reason. The individual strengths and talents within your team are your biggest asset, waiting to be unleashed. Recognize and harness the power of these unique capabilities to drive people-powered change. A Secure Seat on The Team Your team—the one you’ve built, trained, and grown—holds untapped potential. Just as we are seated with Christ in a place of honor and security, so too should our team members feel valued and vital to our mission. This Thanksgiving, let’s take a moment to express genuine gratitude for the diverse skill set each member brings to the table. When people feel valued, they’re more engaged, productive, and innovative. And that’s how a small business not only survives but thrives. The Power of People-Powered Change FIREPOWER Teams is founded on the belief that the power of a small business lies in its people. “Fuel your people power” isn’t just a motto; it’s a mission statement and a call to action. Reflect on how you can empower each team member to contribute their best this holiday season, fully aware that their seat at the table is as non-negotiable as yours. Thanksgiving is a time of gratitude, reflection, and community. As business owners, it’s a prime opportunity to reassess what we’re thankful for and how we express that gratitude through our actions and leadership. Let’s enter this season with a renewed commitment to value ourselves, our team, and all our unique contributions. Let’s reject the ceaseless comparison and instead focus on fostering an environment where everyone feels seated at the table—secure, valued, and ready to make a difference. The entrepreneurship journey is rarely easy, but with a team that genuinely feels like their efforts matter, there’s untold strength to be garnered. Your business, team, and vision have a secured seat at the table. Let’s give thanks for that incredible opportunity and the journey ahead. Conclusion Remember, the most sustainable growth comes from within. Thanksgiving is a time to rekindle our appreciation for the value we each bring to the table, reminding us that when we work together, there’s nothing we can’t achieve.

Exiting a “Time and Place” Business

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
1 month ago

“The purpose of middlemen in the marketplace is to provide time and place utility.” I remember the light bulb going on in Economics 101 when my professor said that.  Suddenly, I understood the concept of added value. Someone had to get the product to the customer. “After all,” the professor continued, “The footwear manufacturer in Massachusetts can’t sell a pair of shoes directly to someone in California. They can’t manufacture and handle thousands of customers. It would be a nightmare, and completely unprofitable.” The fact that Massachusetts was still known for shoe manufacturing gives you some idea of how long ago this took place. So long ago, in fact, that Zappos wasn’t even a word yet. The independent shoe retailer gave way to the department stores. In turn their shoe business was decimated by the specialty chain retailers. In fact, most shoe departments in Macy’s and others are actually chain operations within the store. Shoe sales moved into sporting goods stores and discounters. While the industry shifted multiple times, they all still provided time and place utility. Then came the Internet. Now the manufacturer can sell directly to consumers. In fact, they can eliminate several layers of middlemen, along with the mark-ups. Lately my area has been swamped with billboards saying “Mattress Dealers are Greedy. TN.com.” TN.com turns out to be My friends at Digital Pro has survived (and thrives) by their differentiation and service. The large, bright showroom is full of computers where they can show customers the effect of adjusting color balance or editing. They can print your lifetime memories on almost anything, from a key chain to a large metal panel. They can still give you prints made with permanent liquid ink, not the water soluble powder used by most printers. In addition, they can do all of this online because they’ve invested in the technology necessary to keep up with the “convenience-based” competitors. As the cost of digital printers fell, professional photographers invested in their own machines. Digital Pro Lab has replaced their business with consumers who want to discuss their special moments, choose how to preserve them, and hold the results in their hands before they pay. In an industry where the number of time and place based outlets has fallen by over 90% in the last decade, Digital Pro Lab has beaten the big boys with product differentiation and service. When the time comes for planning an exit, they will have options.       This article was originally published by John F. Dini, CBEC, CExP, CEPA on

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