Andrew Rogerson's Blog, page 36

Tech That Helps You Get More Done

Are you using your tech tools to their full potential? From virtual hangouts and social media scheduling tools to file sharing and the latest in smartphones, these are the tech tools that can help you get more done on the job.

Schedule Social Media in a Snap

Whether you’re posting articles to your blog, updating LinkedIn or sending out 140-character messages via your agency’s Twitter handle, you can benefit from using a social media scheduling tool. Hootsuite is great for both businesses and individuals. According to data reported by the scheduling platform, more than 10 million professionals use its services. In addition to making social scheduling both fast and simple, Hootsuite offers valuable insight into areas of your businesses, such as capturing important analytics and measuring your social ROI. Not only can this tool help you get more done, it can make your business better, too.

Collaborate Effectively

The modern workplace allows for its employees to work remotely, whether it’s from home or while traveling. It’s not always easy to manage everyone’s work, especially if they’re not in the same working space. That’s why the collaborative tool Asana is so valuable. Built for the modern workplace, Asana enables teams to track their work and get more done. Users can track projects from the start to the finish with a clear look at responsibilities and next steps. Asana’s dashboards and inboxes allow for quick and clear communication, so there’s no clicking through emails to find an important note. Asana also can keep track of your files, including Dropbox and Google Docs.

Access Files Anywhere

With the influx of availability of remote work, it’s important to have access to documents and files on the go. Not too long ago, work-related files and critical documents were all stored in filing cabinets at the workspace. While you still may use some forms of old-fashioned pen and paper documents, storing files in the cloud is becoming a popular choice among companies and individuals. SugarSync, a cloud-based storage and file-sharing platform, gives its users access to files and previous versions of the document. It’s easy to navigate because of its simplistic design, and it can be accessed virtually anywhere from any type of device, allowing you to get more done on the go.

Stay Connected

Staying connected is key. From taking client calls to interviewing prospective candidates, you never want to miss an important call or message. The most efficient and powerful model to date, Apple’s iPhone 6 offers an A8 chip with a 64-bit architecture, a 4.7-inch retina display, Wi-Fi calling and Siri, the iPhone’s intelligent assistant. Having a reliable smartphone like the iPhone 6 makes your job easier. Plus, smartphones can be used to access files, send emails and conduct quick web searches in a hurry with just the tap of a screen.

Go Digital

Online interviews are growing in popularity. Not only are they more convenient, they are cost-efficient as well. HR professionals can use apps or programs like Google Hangouts or Skype to conduct interviews with potential candidates who can’t make it into the office due to their location. These types of apps make collaboration easy, too. In just seconds you can be connected to a business partner or client who’s on the other side of the county, chatting face-to-face (well, sort of).

What’s the value of your tech business?

If you would like more information about selling a business, selling a medical practice or valuing a business, please visit my website Rogerson Business Services.

If you would like more information about selling a business or medical practice or valuing a business, please visit my website www.rogersonbusinessservices.com/serv....

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Time is Right to Buy a Business

How do you know if the time is right to buy a business? This might just be the perfect time for you to start or expand your entrepreneurial ways by purchasing an existing business.

Statistics show that purchases of small businesses are at very high levels, and you’ll be able to leverage a loyal customer base, an experienced work force, and the opportunity for increasing cash flow. Experts say that it’s still very much a buyer’s market, but there are signs that it’s starting to move towards an even split. So get going!

Whether you are looking at becoming a first-time business owner or buying another business entity to expand your company’s footprint in the Sacramento area or elsewhere in California, you should think about these issues and discuss them with an experienced business broker.

What’s the current and anticipated demand for this business’ products and services?

Some buyers will purchase companies based on their own personal interests instead of looking at whether the concern is successful and thriving. Just because you’re a coffee connoisseur doesn’t mean that you can make a new coffee shop thrive when there are similar businesses up and down the street. Think through the logistics, competition, and what your business provides in the way of a competitive advantage.

How are the financials?

You and your business broker need to ask for bank statements, profit and loss statements, vendor contracts, leases, and the seller’s tax returns in their due diligence process. Ask for revenues with detailed numbers separated out by key product areas and customer groups. Look at possible trends over time and inquire about existing prepaid services and memberships, because as the new owner you’d have to honor those without seeing any cash. You might be brewing a lot of coffee before a customer actually hands over some money for a cup of joe.

Can you do this all day?

It’s hard to find a business that works only for investment purposes. Most businesses can’t run themselves like a passive investment can—think real estate. Even with experienced employees and managers, you’ll need to be around to pitch in. Consider observing your potential acquisition firsthand to see if you can commit the hours that it will require.

Do I know why the seller is selling?

Ask the seller what they would do differently if they were still running the place. This might give you some indication of their view of the business’ future and the impact of their brand. Along the same lines, find out if the current owner is critical to the success of the business and whether he or she will open up another coffee shop across the street?

Get the assistance you need, ask questions, and be prepared by working with experienced business broker and valuation expert Andrew Rogerson. Andrew would enjoy speaking to you about buying a business in the Sacramento area. Feel free to visit our website Services and choose from the drop down menu the information you would like.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

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Building assets in your business

Building assets in your business is good business. For example, although buying and driving behaviors for personal cars can be relatively predicted, this is not always true for company cars and their various users. Research into company car drivers found there is no such thing as the typical corporate car user.

Instead, there are different company needs and how they match with the employee driving the car. Car value, tax implications and the business model all govern the use and purpose of a company car.

Matching Value to Need

You get what you pay for. The most important part of auto value, when it comes to a business, is its usefulness. A Corvette being used by a construction company offers nothing to your business since it cannot move drywall. Thus, it’s important to be able to search a car by features and price. Popular Mechanics offers a solid list of car-buying and car-selling websites, with TrueCar, AutoTempest.com and Cars.com topping the list. They each include search features, allowing you to match your company’s need, while drilling down on price and MSRP.

How Assets Affect Your Business

A vehicle is an asset; and assets have an important effect on your financial statements. If an investor is looking at your company, you will need to provide them a complete set of financial statements with financial ratios that act as a metric for your company’s health. The most common ratios are liquidity ratios that compare your assets to your liabilities.

Most small businesses only have cash in the bank as an asset, but many bills as liabilities. This makes the ratios less than favorable. The addition of a big-ticket asset, like a company vehicle, can push your ratios into the good column, as the assets increase at a rate greater than the debt.

When Expenses are a Good Thing

For most small-business owners, there is no difference between business income and personal income. It’s not like you have another job outside your business. For tax purposes, it’s best to let the company incur the expense of purchasing and maintaining the vehicle. This way, all the expenses are deducted from your business’s income to give you the lowest taxable income. The IRS allows for auto deductions and depreciation expenses under Section 179 of the tax code. In general, the maximum first-year deduction for a company vehicle is $11,160, with the available deduction dropping in price over the following three years.

The Liability of a Company Car

Make sure your employees can pass a driving test, because everything that happens within the confines of that vehicle is your responsibility. Even if an employee is making a quick coffee run, the company is on the hook for any accident that takes place. Upon insuring the vehicle, the underwriting company will assume anyone in your company has access to the vehicle. Your employees’ inability to drive safely and prudently may end up costing your company.

Have an Exit Strategy

Every entrepreneur should have an idea what their company will look like in five years. Since a vehicle is a large asset, you will need to know how and when you will get rid of it. Most companies will trade in an old vehicle for a new one. If so, predict how much the car will be worth. It may be better to start a fleet and purchase a new car (or two) without disposing the old one.

Perhaps looking ahead 5 years is not where you want to be? Are you thinking about selling your business? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Building assets in your business appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Understanding Business Legal Structures

One of the most important decisions a small business owner will make when starting a business or purchasing an existing one is the business structure. Many small business owners opt for an LLC or limited liability company, which has some personal protection but not as much paperwork and regulation as other types of legal business structures.

One of the keys in this decision is an operating agreement. An operating agreement is an important document for an LLC—it details the business’ financial arrangements and operating decisions in the form of rules and other provisions. An operating agreement is designed to govern the internal operations of the business in a manner that is tailored to the specific needs of the business owners. Think of it as the operator’s manual for your company that acts as an official contract for the members of the LLC. When each member signs the agreement, they’re signing to be onboard for the terms on how things will work.

The agreement can discuss specific company functions, such as the percentage of each members’ ownership, voting rights and responsibilities, the authority and obligations of members and managers, and the buyout and buy-sell rules for transferring interests when the ownership changes.

In addition, an operating agreement can protect the business’ limited liability status. This will give members protection from personal liability to the LLC. Without this, your LLC may look more like a sole proprietorship or partnership, which could mean trouble and expose you to personal liability. The operating agreement also settles any oral agreements. We all know that important stuff should be in writing. Otherwise, there’s room for misunderstanding or miscommunication. Again, this owner’s manual can spell it all out.

You should also note that it’s not uncommon for third parties to ask for proof as to who owns your California LLC. The only way to prove the ownership of a California limited liability company is to review its operating agreement signed by all of its members. The names and addresses of members and managers of a California LLC that must be in its Statement of Information are unavailable to the public, and the California Secretary of State will send any requests for this type of information back to the business entity.

You should speak with an experienced business broker about your operating agreement. It’s not the best idea to operate without one… think twice before forgetting about this important document.

Your operating agreement should be kept safe along with all of your important business records. They don’t need to be filed, and the Secretary of State won’t keep a copy for you.

For more information on operating agreements and managing your business, as well as valuable tips on buying and selling a business in the Sacramento area or throughout California , please visit our website Services and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew Rogerson or call our office at (916) 570-2674.

The post Understanding Business Legal Structures appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Learn the Financial Aspects of Franchising

For many of us, undertaking a new franchise is a major life change. And when it comes to setting off you should be aware of and learn some important financial concepts prior to launching ahead.

Working Capital

Understand your working capital needs to get the business profitable. You need to financially have a grasp of the total cost beyond line items. Examine the amount of working capital you have and what it will take to break even. If it takes longer to break even because of low working capital, your initial investment is going to be considerably higher. Partnering with an experienced business broker can help you to research this thoroughly. The franchisor should have an idea as to when the typical break-even point will come. Franchisors usually will explain that a new franchisee will require additional funds for those first few months. In the event that they are unable to supply an answer, talk with other franchisees to get a sound understanding of how much capital you need to get you through to profitability. You should ask this during your due diligence period, and your business broker can seek out other franchisees to gain a better idea of the financial performance of individual locations.

Working with Banks

Experts are quick to point out that if you’re going to the bank for a loan, you will find out fast that some of them really don’t understand what you’re trying to do.

Banks initially examine the borrower’s background and financial standing, and they quickly see that a new franchise isn’t something you’ve tackled in the past. As a result, they just might deny your loan. The lenders that don’t typically work with franchising aren’t in a position to be aware of the franchisor/franchisee relationship. While they plug in numbers, they may not see that there’s more to this. That’s why a franchisee financing their investment for the first time needs to find a lender that understands the franchising model. Your business broker will have relationships with local lenders in Sacramento that will be able to help with a loan for your franchise. Avoid this major headache and work with a bank that understands franchising.

EBIDTA

This is Earnings Before Interest, Taxes, Depreciation and Amortization, which is a key barometer of a company’s financial performance. It’s calculated as revenue minus expenses (excluding tax, interest, depreciation and amortization). That’s net income with interest, taxes, depreciation, and amortization added back in. EBIDTA is used to analyze profitability between companies and industries, as it eliminates the effects of financing and accounting decisions. A company’s EBIDTA at 10 percent is good, but the higher, the better. You and your business broker will be looking at this when you consider a franchise purchase.

Why not get some advice from an expert?

You can ask questions and be better prepared.

Your franchise will be that much farther ahead. Andrew Rogerson is happy to help. He can prepare an analysis on similar businesses competitive in your space.

To discuss franchise financing issues and to explore franchise opportunities in the Sacramento area and throughout California, please visit our website Services and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Learn the Financial Aspects of Franchising appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Tips on Selling a Medical Practice

Most of physicians two decades ago worked in small medical practices with ownership in the practice. Now days, more physicians are selling their small or individual practices, or merging to fight problems like declining reimbursements, questions about the Affordable Care Act, rising costs, and a shortage of available physicians. Those physicians in smaller practices looking to make a change to improve their future typically have four options: a hospital take-over, practice merger, getting their practices ready to sell, or diversifying with ancillary services. Let’s look at the last two.

Tips on Selling a Medical Practice

Experience shows that there are generally three scenarios that precipitate the sale of a medical practice: an independent physician is closing in on retirement age; the medical practice is forced to address issues that aren’t easily overcome through other available options; and the physician(s) would like to free themselves from the administrative duties of operating a business.

A physician needs to be aware of several things prior to moving forward with a sale. Here are just a few:

Improve your financial records.

This important task includes effort to maintain or increase profits for several years prior to a sale. Physicians also need to remove their personal expenses from their practice, make sure their financial statements in order, and engage an experienced business valuable expert and business broker to help them identify the strengths and weaknesses of their overall financial position. Look at your profit margins, too.

Consider your involvement with the practice post-sale.

Physicians must decide if they want to continue working with the practice. If they do, they need to think about what that would look like, meaning hours, responsibilities, pay structure, and authority.

Be sure to set a realistic price.

Like many of us when trying to sell our homes, some physicians will price their practices way to high. Remember that some of the medical equipment can’t be sold, and the value of intangible assets may be hard to ascertain. The physician may see a higher value in good will and client relationships than potential buyers. Your business broker will have experience with this element of the calculation and can assist in setting a wise asking price for the Sacramento metro area.

Ancillary Services to help sell a Medical Practice

Even with the many hospital take-overs and mergers happening in the past few years, some independent physicians are enjoying success in establishing or taking over practices where services are needed in markets where hospitals can’t fill. Some physician practices are looking into diversifying by adding ancillary services. These are services such as concierge care, lab testing, rehab centers, nutraceuticals, and other approaches to disease treatment and prevention. This can be a strong selling point or opportunity for a buyer, as service expansion improves patient care and at the same time increases revenue, while restricting out-of-practice referrals.

Many independent physicians are now facing critical issues that may impact the future of their practices. Prior to making any sudden decisions, physicians should work with a business valuation expert and business broker to devise a strategic plan that pinpoints issues and opportunities in the sale of the practice. Only then should they consider their options to address their practice issues and act on opportunities.

Don’t be afraid to ask for help, to ask questions, and be prepared.  Your medical practice will sell for much more with help, which Andrew Rogerson is happy to provide. To discuss issues with selling a medical practice in the Sacramento area and throughout California, please visit our website Services and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Tips on Selling a Medical Practice appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

US Marine, Terry Watts now owns Fair Game, Sacramento, CA.

On April 19, 2016 I received an email from someone I never met before saying they had an interest in a business I had for sale they saw on one of the websites I used to advertise businesses for sale. Because I help those that want to buy and sell a business this was part of what I do every day. The email said the buyer’s name was Terry Watts and came with just the normal buyer request for more information.

After sending my normal information which is a one page executive summary of the business and a request for their information and their signature on a Non-Disclosure Agreement agreeing he would keep all information shared with him confidential, I spoke with Terry on the phone and he shared something that I found interesting. Terry was a US Marine and had left the service and been working locally at a fitness club in the Sacramento area helping them grow and improve their operation.

For valid reasons, Terry had decided to leave his job and was now looking to buy his own business. Terry had never owned and operated a business before but had his MBA (as well as other credentials) and so had come to a decision that now was the right time for him to make this big personal step.

Part of the reason this was a big personal step for Terry is that he has three young children, all under 6 years in age, plus his wife has her own business. That is, it is pretty intimidating to have one entrepreneur in the same family let alone two. Plus, much more intimidating when you have 3 young children.

Terry and his wife decided he was up to the challenge and so together, Terry and I worked through his many questions. That is, Terry knew what he wanted to know and so I either provided the answer to that question or would go away get an answer so he could decide “should I keep going and take the next step … or not.” Needless to say, Terry took each “next step” and did so with great precision as he would stop and clarify until he was clear, then Terry would move forward…what turned out being fairly quickly.

By early May or about two weeks after Terry’s initial inquiry he was ready to make an offer on the business.

One of the pieces of the puzzle that was of great help to Terry was getting finance to help him buy a business. Unbeknown to Terry, when he first called and we first met, Terry didn’t have a lot of downpayment to buy a business. However, what Terry had going for him and he didn’t know until we talked through his background, was that Terry was a US Marine and the SBA have a special program for retired Military Veteran’s that Terry was able to qualify.

In Terry’s case, the program is managed by Main Street Launch in Oakland, CA. They have a local contact here in Sacramento called Mike McGrane and so Terry was able to call and talk to Mike (who is also a Military Veteran) and Terry was able to quickly and easily move through their SBA loan process to the point he was qualified and now able to make an offer as his finance was in place.

On May 03, 2016 or two weeks after Terry’s initial inquiry to me, we sat down and put an offer together which I presented to the sellers; which they accepted with some minor tweaks.

With the buyer and seller coming together to do a deal, Terry now moved into the due diligence process and the necessary steps to navigate the escrow process.

By June 07, everything was in place and Terry and the sellers sat down and signed the escrow papers. That was an exciting day for Terry but what was more exciting was the next day when he was able to walk into the business and meet the employees and decide “this is the business where I would like to be.”

As the business broker in Sacramento assisting Terry, it has been an absolute pleasure helping him. Terry’s military training provides him with great discipline and clear thinking. He also has a natural ability to think through issues he’s never had to address before and gets to a common sense solution very quickly. In my opinion, Terry will be incredibly successful and the help he’s received from the SBA and their loan program for a Military Veteran is able to give him a wonderful start to owning and operating his own business.

Terry is now the proud owner of Fair Game in Carmichael, CA on Fair Oaks Boulevard. Fair Game provides a trip down memory lane for those that used to play video games in their early days and would like to trade in the game or buy something new they have not played before. Fair Game even gets the video game controller operating if it’s no longer working or the disk needs repairing.

If you have a video game or a related question, give Fair Game a call. You are welcome to talk to Terry but the business also has three employees that are continuing with Terry and they have plenty of knowledge to help you out. The phone number at Fair Game is 916 944-4263 or you can visit their website – Fair Game.

If you are thinking of owning your own business you have three options. You can start your own from scratch, you can buy an existing business like Terry did or you can buy the rights to a local franchise concept. If you think buying a franchise is right for you, please visit my webpage Buy a franchise or buy a copy of my book – Successfully buy your franchise.

For more immediate help with buying an existing business or franchise, send an email to Andrew Rogerson or give me a call on 916 570-2674.

If you are a Military Vet and need some finance like Terry to buy a business or buy a franchise, you can borrow up to $250,000 and Mike McGrane from Main Street Launch can help you. Mike’s phone number is 916 300-3470.

The post US Marine, Terry Watts now owns Fair Game, Sacramento, CA. appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Lessons From These Manufacturing Success Stories

The manufacturing industry has experienced tremendous growth over the last few decades, with more companies adopting lean methodology and successfully competing in a global marketplace, according to the National Association of Manufacturers.  Productivity also hasn’t shown any signs of slowing down.

Overall, the hourly output for all workers in the manufacturing sector increased over 2.5 times since 1987. That spike in growth and productivity has led to some of the era’s greatest manufacturing success stories.

Here’s a look at lessons from these manufacturing success stories and takeaways you use to add to your success.

Respond to Societal Trends

“Are you allergic to Latex?” is a question just about every medical professional asks patients when treating cuts, abrasions or performing surgery. In the 1980s, Neil Tillitson and Luc DeBecker invented a replacement that effectively alleviated worries of allergic reactions.

The inventors realized there was a market need for safe and efficient gloves without the adverse side effects. As the AIDS epidemic gained national headlines, nitrile gloves were primed for mass manufacturing and distribution. The result was a safer way to help critically ill patients without infecting their caregivers and medical team.

Believe in Your Product

Spanx disrupted the undergarment industry when it created a category all its own. After Sara Blakely cut off the feet of a pair of pantyhose to create a slimming look, she realized she was onto something.  Blakely took her life savings of $5,000 and spent two years researching hosiery patents and visiting craft stores to source fabrics for her secret invention.

But when she started calling manufacturers to produce her line, they all said no. After visiting a manufacturer in person, the manager said no before changing his mind and calling her. His daughters insisted it would be a monumental business venture — and they were right.  Today, Spanx is a billion-dollar company.

Master the Art of Efficient Passion

Italian car manufacturer Maserati is no stranger to its market’s passion for sophisticated sports cars. So, the manufacturer decided to release a business sedan that embodied the passion of a sports car with the practical day-to-day need of a business car.

To release its business sedan in time for its 100th birthday, Maserati relied on manufacturing digitalization to quickly bring its ideas to the market. Specifically, Maserati relied on the SIMATIC IT MES software to take the manufacturing process from planning states to monitoring the production. The end result was an efficient, fast and reliable process that produced the elegant cars its market desired.

Stay Agile and Lean

Family-owned and operated Vitamix enjoys a problem most manufacturers would love to have — demand for their products has soared more than 50 percent year-over-year for five years running. According to the National Institute of Standards and Technology, Vitamix was experiencing long customer lead times and couldn’t scale quickly enough to take advantage of an eager market.

But after tapping the Partnership for Regional Innovation Services to Manufacturers, the company instituted a lean steering committee and trained leaders in the company.  Thanks to careful preparation, readiness and a desire to grow agilely, Vitamix was able to quickly rent a 175,000 square foot warehouse to accommodate its urgent need for a bigger space.

Time to sell your manufacturing business?

Are you thinking about selling your manufacturing business but not sure where to start? Would you like to know the value of your manufacturing business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Lessons From These Manufacturing Success Stories appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Exit Successfully Selling Your Business

It’s not common for business owners to have an exit strategy for their businesses, whether it’s when they retire or in the event of their disability or death. To exit successfully selling your business you still need to concentrate on keeping your business thriving and growing. One of the reasons is that the buyer may require you staying on after ‘retirement’ — and so a business exit strategy is critical for a smooth succession or sale.

Of course, your exit will have a tremendous impact on your employees, your business structure, company assets, and your tax liabilities. Prior to trying to create your exit strategy on your own, speak with a business evaluation expert. A business broker is an expert on business transitions who can help you explore all the options that you have available.

Create an Exit Plan and stick to it.

However, one problem that even the savviest and best-prepared business owners may experience when transitioning their businesses is going back and undoing their exit plan. This frequently occurs with Baby Boomer owners who become anxious or have doubts about the sale. These folks need some closure in order to say goodbye to a business in which they’ve sweated for many years.

To help these reluctant owners feel better about the transition and to help them move on to the next stage in their lives, they need a strong sense of closing one door and opening another. Some experts suggest a simple transition tool for these boomer owners: a letter to the new owner in which they can relate their feelings and concerns. The thought behind this is that writing down your thoughts and reflections can be a cleansing and liberating way to achieve closure. In addition, it can help the new owner to have a better understanding of your efforts and to more fully appreciate the historical context of the business that he or she will be operating.

As opposed to a handwritten or typed letter, some folks now are using their smartphone to make a video communication to the new owner.

Here are some ideas for organizing this message—hard copy or electronic—to the new owner:

State the reason for the letter or video, as well as your thoughts and concerns, and why this will bring some closure;
Present the big picture to the new owner in order for him or her to fully appreciate the significance of the business from the founder’s point of view;
Provide specific encouragement to the new owner;
Give him or her your insights and rationales as to what’s made this a successful business;
Offer advice on any key issues with a positive spin; and
Try to do this in a personable and sincere manner.

This letter can be a part of your exit plan now that you’re thinking about selling, or you can even start the outline of this letter some time before—like when you know that you’re thinking about retiring.

Andrew Rogerson is happy to help you sell your business in the Sacramento area and throughout California. To learn more, visit this web page Successfully Sell Your Business.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Exit Successfully Selling Your Business appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Who will Own a Business in the Future

On Sunday May 22, 2016, Fareed Zakaria, in one of his segments on his show on CNN called GPS or Global Public Square asked the question why the number of new companies in the last 6 years is declining.

Fareed’s observations included too much regulation stifling innovation, credit being hard to get, the movement of jobs to lower cost countries (which you would think paradoxically would encourage new innovations) or the generations after the Baby Boomers being more focused on college and university education to get a job than an interest in starting or running their own company.

Fareed also touched on the question of the younger generations being more risk adverse, which I personally think is much of the root cause. The younger generations choose to get a degree or spend years at college and university, unlike the Baby Boomer generation that said we are anti-establishment and we’d work it out; that is, we didn’t need anyone to tell us what to do or how to think.

Demographics of US Small Business Buyers and Sellers.

At the beginning of May, 2016, BizBuySell published an article called “The Demographics of US Small Business Buyers and Sellers.”

The study surveyed more than 3,000 current business owners and prospective buyers to compare demographics, motivations and more.

The study found that while small business owners getting ready to sell are still mostly white men over 50 years old (Baby Boomers), the next generation of owners are an increasingly young, more diverse group.

The findings also uncovered:

Small business ownership runs in the family. 55% of sellers have a parent or grandparent that owned a small business.
Buyers want to get out of corporate America. The number one motivation for purchasing a small business is the chance to be your own boss, cited by 63% of all buyers.
About 49 percent of 18 to 29 year-old millennial buyers identify as a minority, compared to just 19 percent of buyers 50 or older.
Veterans show interest in small business ownership. 12% of sellers and almost 10% of buyers are veterans. More than one-third (39%) of veteran buyers intend to use military loans to make their small business dreams a reality. In fact, I’m currently working with a Military Vet that is able to buy a business with a downpayment of 5%, a seller’s note of 5% and the balance funded by an SBA Military Vets loan. (If you are a Military Vet and want more details, give me a call or send me an email.)
Few female business owners. Just 22% of current business owners, and potential business buyers are women.

If you would like to see the full report from BizBuySell, simply click this link.. It’s full of data, graphics, charts and analysis.

Do you see yourself as a future business owner?

For additional information, please visit my website Business valuation.

For more immediate help, please send me an email to Andrew Rogerson or give me a call at (916) 570-2674.

The post Who will Own a Business in the Future appeared first on Rogerson Business Services by Andrew Rogerson.