Is there a difference between entrepreneurs and business owners?
The terms entrepreneur and business owner are often used interchangeably. At a recent XPX-D.C. Metro breakfast, the two panelists were introduced as serial entrepreneurs and, it is true, each had founded four unique businesses. And although this was an Exit Planning Exchange event, these entrepreneurs did not talk much at all about how they transferred [...]
Moneyball – Trekking post
I saw the movie Moneyball on the weekend it came out. I had read the book shortly after Michael Lewis wrote it in 2005. Both the book and movie are terrific, although Michael Lewis admitted recently that he thought it would make a terrible movie, because of too much statistical stuff. Moneyball follows Billy Beane (Brad Pitt [...]
What if you knew?
“What would you do if you, as the business owner, had six months’ notice that you had to sell immediately (maybe because you were going to die?)?” What a great perspective! (aside from the dying part…)
a different approach – hiring by network
The importance of hiring well came to mind this month at a two-day company meeting with a client of ours, a software company in the health care space. The owner/founder started the business ten years ago, has always hired strong individuals and given incentives that have kept his entire team intact through the past three years.
the trouble with banks – a different approach
So what’s the answer for SME businesses? Up your game if you need to borrow. We are finding good reception with bankers for specific, data-driven descriptions of intangibles. 80% of the value of the average company today is intangible. Most bankers and businesspeople understand this intuitively but they often don’t have the information to tie value and intangibles together.
If not the IC-IQ quiz, here’s another quiz
The Intangible Capital quiz IC.IQ can be powerful and a great way to quickly get at what’s going on in a business. It tells you what the financials and all the “hard” data have ignored.
Vibrators, lean, and a future for American business
In today’s highly competitive environment of low cost labor overseas, VIBCO has found a way to thrive in their segment without moving production off shore. A number of years ago, the company embraced lean manufacturing whole-heartedly, seeking operating efficiencies at every level of the company.
family business – a different approach
Part of what makes a family businesses unique could be that they simply have a different set of priorities. While many companies place ahigh value on growth and current profits, family businesses consider other values of high importance. For example, many family businesses consider the value of the family business to the fiber of the family. This business can serve as a source of employment for family members andit can serve as a means of keeping the family connected.
A Different Approach
In anticipation of the turnaround, and corresponding increases in confidence and risk-taking (and it is starting to happen), baby boomer owners should know their exit options and be ready. They need to ask themselves these questions:
Is my company salable?
If so, what are the ownership transfer options?
Is my family OK with the decision to sell?
What will I do after I sell?
Have I built the value in my company so the sale proceeds will finance my lifestyle? If not, what can I do to improve its value?
Do I have the right advisors for the process?
Is my company ready for a thorough (and exhaustive) due diligence process?
Hulu’s Hidden Value – A Different Approach
In our book Intangible Capital, we suggest companies begin tracking their “i-capex”, or their investment, in intangible capital expenditures. They should do this in management accounting reports–it won’t change what they do for tax purposes or GAAP. In Hulu’s case (and in the case of other companies that want to get compensated for their full value), this kind of report would give a clear indication of the investment made to build the company to where it is today–one that merits consideration for an IPO.
