fbpx

Archive Blog Archives

Podcast S3E60 – FB Live 71 Preparing your business for sale or investment, Part 4 – Valuation

If you’re a business owner, it’s easy to get caught up in the month-to-month or year-end numbers. But when it comes to putting a price tag on it, how are you supposed to figure out what your business is worth?

I’m joined by Shannon Farr, CPA of Scenic City Consulting, who’s an expert in all things business valuation.

Shannon and I talked about the three standard business valuation approaches and more:

  • How to figure out your business’s value if it owns a lot of intangible assets (like copyrights, trademarks, and trade secrets)
  • Why you might need to do your own due diligence inside your business before the valuation process
  • Why the Income approach is the most popular way to calculate a business’s value
  • What you need to do now if you may be looking to sell or take an investor in your business in the future
  • Why it’s difficult to compare your small business to other similar businesses in the market
  • Important things to discuss with your CPA if you’re preparing to sell your business
  • How getting an independent valuation is kind of like an appraisal for your business
  • Why you shouldn’t be afraid of business valuation as a small business owner

Key takeaway: Business valuation might seem like an avoidable expense, especially if you’re a small business. But placing the right value on everything you’ve worked to build can help you make sure your exit from the business is a positive one, so you don’t leave money on the table.

Visit www.awbfirm.com/podcast60 for a transcript and show notes, and sign up to get a free 5 Minute Intellectual Property Audit.  You’ll learn how you can make more money from the copyrights and trademarks in your business (you can also sign up there to be the first to know when new episodes are live and receive other legal updates and special offers from the AWB Firm).

Additional resources:

Shannon’s company Scenic City Consulting: www.sceniccityconsulting.com

Heather Pranitis, Number Nerd Bookkeeping Solutions: www.numbernerdbookkeepingsolutions.com

This podcast is information, not legal advice specific to your situation.

October 17, 2018

Podcast S3E44 – FB Live 56 with Emily Allen, business strategist

Apologies for the tech glitch around minute 3:00 — I couldn’t see or hear Emily but she was on screen the whole time. We came back around 5:40 if you want to fast forward

Virtual Chief Operating Officer (COO). business strategist, and project manager Emily Allen and I discussed how a virtual COO can help your business.  Learn how you can stop getting distracted by all those shiny objects and actually meet your goals!

We chatted about why PLANNING is so critical to growing your business to seven or eight figures, and why it’s so hard for most entrepreneurs to find the time to do it.  Emily explained how a good project manager can help you prioritize which projects are going to help you achieve your big goals, and break them down into pieces so you can actually tackle them, or delegate to team members.

And, we talked about tracking project progress and outcomes to be sure you’re actually achieving what you set out to do.

Emily shared some of the benefits clients gain from working with a virtual COO or project manager, especially making sure you have the right team members in place and are filling their plates with the right tasks.

We talked about when it makes sense to bring in a project manager or virtual COO — this is not something a new business owner needs, but is critical when moving from six to seven figures.

I gave some insight to the changes I’ve seen in my own business after just a few weeks of working with Emily, and a few of my own a-ha moments.  And Emily talked about some mistakes business owners make trying to scale rapidly on their own without bringing in an experienced business strategist.

Emily Allen is a Virtual COO (Chief Operating Officer) for small to medium-sized woman-owned companies that don’t yet require the services of a full-time COO, but have the need for more strategy, more time to work on what they do best, and more structure with systems and processes without giving up more of their time.

Her main focus is on execution. Through working together, she is able to help define/refine the business strategy and provide accountability for execution to the appropriate members of the team.

She ensures that the company’s everyday activities run smoothly and that there is a company-wide strategic plan in place to support the vision of the company. Emily brings her experience in business planning and project management from her previous corporate life.

Emily is a wife, mom of 3 kiddos, certified project management professional living in northeastern Wisconsin and loves all things planning and organizing.

 

Visit www.awbfirm.com/podcast44 to get a free 5 Minute Intellectual Property Audit. You’ll learn how you can make more money from the copyrights and trademarks in your business (you can also sign up there to be the first to know when new episodes are live and receive other legal updates and special offers from the AWB Firm).

This podcast is information, not legal advice specific to your situation.

June 27, 2018

Podcast S3E43 – FB Live 55 with Heather Pranitis – Bookkeeping

Bookkeeper and financial advisor Heather Pranitis from Number Nerd Bookkeeping Solutions and I talked about why you need to know the numbers in your business if you want to scale to seven-figures.

We talked about what numbers you should be keeping your eye on (overhead! profitability!) as you grow. Heather also explained what a bookkeeper can help with, and why it’s worth talking with one early in your business, when you’re still keeping your own books, to make sure you are set up and recording things correctly.

We also chatted about when is the right time to hire a bookkeeper, and how to find someone who understands YOUR business’s revenue streams and systems. Heather stressed how your professional advisors (attorney, CPA, bookkeeper) should work together and be able to talk to each other to support your growing business.

Heather outlined the benefits to working with a bookkeeper, including understanding what your numbers really mean, getting time back by outsourcing bookkeeping, and gaining an outsider’s perspective and analysis of your business’s finances.

Then we went down the rabbit hole of how it might cost you more in the long run to keep your own books once your revenues reach a certain point, especially if you are using Paypal or Stripe or running payroll.

Find Heather’s business workflow templates (they’re awesome) here:

http://numbernerdbookkeepingsolutions.com/business-workflow-templates/

I’ll be interviewing more of my favorite pros in these categories later this month; you don’t want to miss it!

Number Nerd Bookkeeping Solutions is a full-service virtual bookkeeping firm that helps individuals and businesses of all sizes get their numbers in order. Number Nerd offers monthly bookkeeping and payroll packages, QuickBooks file reviews, QuickBooks training, accounting software setup, accounting cleanup, and business process consulting services to their clients around the world. Owned and operated by experienced bookkeeper and accounting workflow consultant, Heather Pranitis, Number Nerd excels at delivering customized solutions to bookkeeping challenges, easy-to-read financial reports, and simple answers to tough finance-related questions. The Number Nerd team partners with their clients to improve bookkeeping processes and establish good accounting habits.

Sign up below to get a free 5 Minute Intellectual Property Audit.  You’ll learn how you can make more money from the copyrights and trademarks in your business (you can also sign up there to be the first to know when new episodes are live and receive other legal updates and special offers from the AWB Firm).

This podcast is information, not legal advice specific to your situation.  

June 20, 2018

Podcast S3E42 – FB Live 54 – Melissa Whaley – financial planning

Tax advisor and financial strategist Melissa Whaley and I talk about why having a tax pro on your team is essential as you grow your business towards seven- or eight-figures! Learn the benefits of working with a financial advisor, how a pro can save money both short-term and long-term, and some pitfalls of DIY’ing this area of your business.

Melissa also explained the tax advantages to filing taxes as an S corporation, and when a business owner should at least have a consultation with a financial advisor who can help with tax planning.

We even talked about how you can lose the liability protection an LLC or corporation provides for your personal assets if you are commingling personal and business funds (piercing the corporate veil).

You can find out more about Melissa and her services here: https://melissawhaley.com/

I’ll be interviewing more of my favorite pros in these categories later this month; you don’t want to miss it!

Melissa Whaley is a licensed Tax Professional, Financial Strategist, and California Momma of 4. Melissa works virtually with creative business women who light up over their work and freak out over their numbers. She helps you create accounting systems that flow easily and turn those tax panic attacks into plans of attack. Her favorite things are sipping a good latte at a coffee shop with friends and exploring outdoors with her family.https://melissawhaley.com

Sign up below to get a free 5 Minute Intellectual Property Audit.  You’ll learn how you can make more money from the copyrights and trademarks in your business (you can also sign up there to be the first to know when new episodes are live and receive other legal updates and special offers from the AWB Firm).

This video is information, not legal advice specific to your situation.  

June 14, 2018