Quantcast
Jump to content

Recommended Posts

Exit Strategy-Step 2

Have Clean and Accurate Financial Statements

The value of your business will be determined by your net profit, cash flow and a strong balance sheet.  Having clean and accurate numbers will be more attractive to a potential buyer, especially if your business shows growth over time. While you may value your loyal customer list, and your tools and equipment, it's the profitability of your business that will be used to determine how much someone will pay for your business.  

As an added benefit, having clean and accurate financials will also help you through tough economic times, and if you ever need a bank loan. 

Get your books in order and work hard on your business to show a profit.  

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By bantar
      In another forum someone noted the backlog of containers at the Savannah, GA port.  Where's Waldo.  Zoom in to find your back-ordered parts.

      Waldo is much easier to locate for you tire guys: 

       
      Brace yourselves, this isn't on a path to correction.  However, Savannah has a better chance of catching up than any of ports in California. Word is that the CA ports are going to start 24/7 operation, but this doesn't address the real problem: Truckers and Trucks. 
      Here's a Savannah article on Trucker Shortage.  Also, who knows how many truckers will be displaced due to the vaccine mandates?  I'm sure that they would just switch to a new role somewhere else with such demand, if it's not a statewide mandate that prevents that.

      It's even worse in CA. CA has banned any trucks older than 2011 from operating on their roads.   Wonder what the average age of the fleet is?    Further, CA's AB5 law bans Owner/Operators from operating in CA (but order stayed, in Supreme Court now). Lastly, even if they had truckers to haul containers at night, from the port, the distribution warehouses aren't running night shifts to accommodate. It is a supply chain with many links. Here's a good article that many factors causing the disruption . Sal Mercogliano has a surprisingly interesting YouTube series about container shipping.

      And when there's a shortage of truckers, a hike in gas prices and other inflation (tires, etc), then there will be stranded containers because they are offering bargain rates for expensive hauls. Who's going to haul at a loss? There was a recent video that I saw detailing a stuck cargo container, for many months... that may still be there... in Galveston that the owners could not move to Pennsylvania because they didn't allocate/have enough funds to/for the transportation costs. I wonder if the ports hold Auction Wars?
      All of these increased shipping costs will be hitting us soon.   Offshore manufacturing may get bested by shipping costs... bringing some manufacturing jobs back to the US.
      Last point to ponder.... How many very necessary repair parts for these trucking rigs are stuck in these shipping containers?
    • By Joe Marconi
      Exit Strategy-Step 3: Establish Your Goals
       It's no secret that having clearly defined, written goals, sets you apart from other business people.  You will achieve greater success, have less stress and build greater wealth for you, and for your family.  
      Start today; create your 5 year, 10 year, 20 year plan.  Be specific about what you want to accomplish. And commit to these goals each and every day.  Don't worry about life's obstacles and challenges that may throw you a curve ball. Having goals is far better than not having goals, and those goals can be adjusted along the way.
      With regard to your retirement, give a lot of thought to your future, and what that looks like. And create a goal for that too. It may seem far in the future for many of you reading this, but trust me, time goes by fast and preparing now for the sale of your business or succession will pay off. 
      Remember, build your business as if you are selling it tomorrow, and you be more successful while you own it, have more options in the future, and your business will be worth more when the right time arrives. 
      Stay tuned for Step 4!  
    • By ASOG Podcast
      Yay or nay on the water park?
    • By ASOG Podcast
      ASOG Podcast LIVE at the TOOLS Conference 2021
    • By ASOG Podcast
      ASOG Podcast LIVE at the TOOLS Conference 2021


  • Similar Tagged Content

    • By Joe Marconi
      Exit Strategy-Step 3: Establish Your Goals
       It's no secret that having clearly defined, written goals, sets you apart from other business people.  You will achieve greater success, have less stress and build greater wealth for you, and for your family.  
      Start today; create your 5 year, 10 year, 20 year plan.  Be specific about what you want to accomplish. And commit to these goals each and every day.  Don't worry about life's obstacles and challenges that may throw you a curve ball. Having goals is far better than not having goals, and those goals can be adjusted along the way.
      With regard to your retirement, give a lot of thought to your future, and what that looks like. And create a goal for that too. It may seem far in the future for many of you reading this, but trust me, time goes by fast and preparing now for the sale of your business or succession will pay off. 
      Remember, build your business as if you are selling it tomorrow, and you be more successful while you own it, have more options in the future, and your business will be worth more when the right time arrives. 
      Stay tuned for Step 4!  
    • By Joe Marconi
      This forum will outline the steps that I took the past three and half years, working toward my exit strategy.  I will outline each step, each week, to give you information that I know you will find informative and useful. Please note, these steps are the ones that I took, and your situation may differ. However, you will find so many similarities, that I am sure you will obtain a ton of great information.   Ok, here we go...
      STEP 1 - Get Your Business Ready to Sell Today
      You are never to young to begin thinking about your retirement or sale of your business. Work hard on your business to get it to run on its own.  For quality of life, and to grow a sucessful business, requires having the right people, the right systems, a knowledge of the numbers, and a plan.  Also, the more you are removed from the day to day operations, the more sucessful you will be and the more your business will be worth to a potential buyer. 
      Here's another important reason to get your business to run on its own: A health crisis may leave you sidelined for months or longer, or may even leave you disabled to a point where you cannot perform the necessary duties as a shop owner.  We all have heard of shop owners that either became seriously ill, were in a bad accident or passed away, leaving the business in a state that it cannot run by itself.  Or, not worth much because the shop owner did not take the necessary steps to build the business correctly and not having clean and accurate financials.  
      Begin today to start thinking about your business and when you want to sell, have family take over the business, or other options. Start getting all your financials in order, set your long-term goals, work on your business plan, review and refine all your systems and procedures, and talk to your family about your long-term plans. 
      With each step, you may need help from either an accoutant, broker, attorney, or a business coach. Please don't make the mistake of thinking you can everything on your own. 
      That's it for today- Next week I will discuss The Importance of Having Clean Financials and Showing a Profit
      Thank you and Stay Tuned! 
       
       
       
    • By Joe Marconi
      I cannot reveal all the details yet, but I am in contract to sell my last location. The deal is set to take place by the end of the year. I will use this forum to outline my journey the last 41 years in business and the steps I took to exit out of the business.
      My objective is to share my experience so that others can learn from my ups and downs and also to learn about the importance of an exit plan, no matter how old or young you are. 
      I will give details on how I prepared my business for sale, how I negotiated with different companies, and different people, and how you can get the most for your business when the time comes.  Plus many behind the curtain details on how to sell a business- the good, the bad and the ugly. 
      Please feel free to contact me with questions. 
      So stay tuned for more details, week by week! 
      Oh, by the way, I am not going anywhere. I will still be active in the industry, invloved with Auto Shop Owner, continue to work with Bob Cooper and all the great people at Elite as a business coach and trainer, writing articles for Ratchet and Wrench, remain invloved with the Service Stations Dealers of Greater New York and more.  
    • By Joe Marconi
      Think you're too young to start planning for retirement? Think again! 
      How many times have we heard about a shop owner that had an unfortunate accident, serious illness or even worse, death?
      Make it one of your goals to starting planning for your exit, and for life after auto repair, no matter how young you are. Create your exit strategy. Speak with an attorney, a financial advisor, a business coach.  Make sure that not only you, but your family, will be taken care of should something catastrophic happens. 
      Life sometimes throughs us a curve ball. Be prepared! 
       
    • By Joe Marconi
      Last October the doctors found a large infection and abscess in my large intestine that perforated into my abdomen. I required emergency surgery to remove the abscess; removing about six inches of my large intestine.  That was step one: This past January, I needed an additional surgery to remove another 4 inches, and repair other areas of my intestines.  Thankfully, I am fine, with no lasting issues.  It will take about a year to fully recover, but all is well.
      I am telling you this for one reason: What if something were to happen to you?  Will your shop survive? What about your family?  These were the things I thought about when I was laid up in the hospital.
      Create a continuity plan to prepare for a crisis. Make sure you have a will and enough life insurance. Build a business where it can be run by the systems and procedures you out into place.  
      Lastly, ENJOY the fruits of your labor! When I woke up after the surgery with tubes inside me and in my arms, It became clear that the things we worry about in business are really not that important. 
      Take care of yourself ! 
       
  • Our Sponsors


Tire Rack: Revolutionizing tire buying since 1979.
Fast Free Shipping on All Orders Over $50

Fast Free Shipping on All Orders Over $50
×
×
  • Create New...