Pandemic
Supply chains and labor shortages are the chief topics among the 40 or so business owners I currently work with. Their anecdotes are widespread and widely varied. I wanted to know why, so I did some research on behalf of you, my business-owner readers. Supply Chains A broken foot was diagnosed at an urgent care center. “You are lucky,” said the nurse as she handed over a pair of crutches. “This is our last pair, and all five of our medical supply houses are sold out.” A technology supplier is simultaneously dealing with the largest order backlog and lowest percentage of order delivery in the company’s history. As much as I can see reasons why the supply chains will eventually correct through market forces, my look at the numbers in the labor market convinces me of the opposite. The Feds haven’t published any statistics on how much supplemental unemployment was paid in 2020, but those programs have expired. Employers who are complaining that “The government is paying people not to work,” are barking up the wrong tree. I don’t think that is the problem. Quite frankly, one “problem” is the Internet. Advances in telecommunications have enabled a lot of people to choose alternative approaches to earning a living. ETSY grew from 2.6 million sellers to 7.5 million sellers in the last 18 months. Those 5 million additional sellers may not be online full-time, but it is a component of their income strategy. Amazon has lots of programs for home-based businesses. You can even set up a store selling other products that are already listed elsewhere on Amazon. I presume you would send your friends to such a store to support you. I see it is an updated equivalent of Amway, except that Amazon lets you control your entire operation, from marketing to financial statements, on your cell phone. Then there are the gig jobs. According to
After a powerful advance last year, the stock market has started 2022 on a down note. Between elevated inflation, heightened volatility and the Federal Reserve’s more hawkish stance, where could markets go from here? If we can’t expect another 20%-plus gain, what can we look forward to? And what kinds of businesses have the right set of traits to help them prosper in today’s environment? Please join me for a strategic discussion covering the markets and some of Capital Group Private Client Services’ perspectives for long-term investors. Click the link below to learn more and register.
Program produced by Martin Anderson is a Senior Vice President in Webster Bank’s Middle Market Banking Group where he is focused on building relationships with family owned businesses, family offices and private equity sponsors. He has spent the last 12 years of his 28 year career with Webster Bank. Previously, he was a Senior Relationship Manager at People’s United Bank and his experience includes roles with The Bank of New York, Merrill Lynch and Fleet Financial Group. Martin earned an MBA from the University of Connecticut and received his B.A. from Connecticut College. He lives in Bethel, CT with his wife and son. Carrie L. DiLauro, Hamilton Robinson Capital Partners Jeff Swiggett founded VR Business Sales New Haven to bring professional intermediary services to owners of businesses located in Connecticut and Rhode Island through the VR network of 45 offices across North America. The firm represents businesses valued between $1 and $25 million. Jeff has over thirty years of experience with positions in engineering, manufacturing, and marketing, and as co-owner of a manufacturing company, sold in 2007. He holds the Certified Business Intermediary (CBI) and the Mergers & Acquisition Master Intermediary (M&AMI) designations. Jeff graduated from Colgate University with a degree in Physics and Thayer School of Engineering at Dartmouth College with a degree in Mechanical Engineering. Mark S. Campbell, Scout Valuations, LLC
This program was produced by
Popular
What's Trending
What is your goal for your business? As fractional CFOs, when we first meet with our clients, this is among the first questions we ask. Your goals will inform much of our work supporting your company – whether we focus on preparing you for a near-future exit or growing and building the value of your business over time. This is what makes our fractional CFOs – many of whom are also CEPAs – a vital (and often missing) piece of the exit planning puzzle. Many business owners enlist exit planning experts as they approach the exit process, bringing in an army of resources to make the most out of what has already been built. A fractional CFO, however, becomes embedded in your business over time and, in the process, comes to serve as a value growth advisor – a financial expert who can help you
There is a common misconception that what an employee does outside the workplace, particularly on social media, is not the employer’s responsibility.
ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business. In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile? First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital. In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan. Accessing Business Capital Through ROBS Here are some points to remember about how the flow of money works when using a ROBS strategy: The new business entity to be funded must specifically be established as a C-Corp. After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com.
As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot. Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success. Do you need to get in your Owner Sweet Spot?
GAAP traps often occur when a business owner sells a company to a third party. The transaction is commonly memorialized by a Purchase Agreement. That agreement contains certain representations (or “reps”) and warranties. Some of these are common sense and should pose no problem to someone who has operated a good business. The Accounts Receivable represent money that is actually owed to the company. Taxes have been filed on a timely basis. The seller doesn’t know of any pending litigation. The owner has the right and authority to enter into a sale agreement. There is one, however, that is frequently required by attorneys who don’t understand privately held business, and agreed to by owners and their attorneys who don’t understand what they are guaranteeing. They are Generally Accepted Accounting Principles, or GAAP. What is GAAP? To start, the term “Generally Accepted” is misleading. It could easily be interpreted as “what everyone typically does.” Nothing could be further from the truth. GAAP is determined by two organizations, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). Per I
Previous
Next
Explore the Knowledge Exchange
Make XPX Part of Your Business Plans
Explore
Learn
Account
Connect
Help & Support
© 2024 XPX Global LLC. Privacy Policy Norms & Principles Site Map Terms of Use
© 2024 XPX Global LLC. All Rights Reserved.