Failure Rates Of New Businesses Are High – But Not As High As The Failure Rates For Selling A Business

One of the most often mentioned statistics in the world of small business goes something like this: “4 out of every 5 new businesses fail in the first five years.” Sometimes that stat is followed up with the additional claim that 80% of the survivors fail in the next 5 years after that. Trying to […]

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Business Valuation Is More Art Than Science? Not Quite

Business Valuation Is More Art Than Science. I’m sure you have come across this statement before. If you have been researching how to sell your business for any period of time you have probably seen this statement lots of times. It is almost a cliche at this point. Unfortunately it is wrong. It’s misleading. I […]

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Preparing To Sell Your Small Business? This Distinction Is Key

Key Takeaway: Preparing To Sell Your Small Business Is Not The Same Thing As Building A Business. Your  selling price will be based on the business you have already built. Preparation is just the process of getting that business ready to be seen/examined by potential buyers.   Let’s imagine two different business owners. The first […]

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Selling Your Small Business: Think “Pool Of Prospects” Not “A Single Buyer”

When you are selling your small business, having one potential buyer can be a dangerous thing. It can trick you into thinking your business is as good as sold. Experience teaches us that if you only find one potential buyer you will probably fail to sell your business. Here’s why: Most prospects who inquire about […]

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Small Business Owners Beware – The Media Doesn’t Define Small Business The Same Way You Do

Last week I wrote about the fact that the Internet in general, and small business journalists in particular, don’t serve small, owner-operated businesses well. In summary: Small, owner-operated businesses that do under $1,000,000 in sales and have fewer than 20 employees have very little in common with the $5-$20 million businesses that get most of […]

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Small Business Valuation Multiples – The Type Of Business Buyer Makes All The Difference

  Last week I wrote about the fact that small business valuation multiples tend to go up as the business being sold gets bigger. I also criticized our business media for lumping all small businesses into the same category. Especially when it comes to discussing how much money a business is worth.   To summarize: Most businesses […]

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Baby Boomers Selling Their Businesses – Will It Cause A Tsunami?

Conventional wisdom says there is a coming avalanche of baby boomers selling their businesses. And this avalanche will lead to a flood and a  tsunami and another tsunami  and another tsunami  and another tsunami and another tsunami of businesses being put up for sale. When it comes to over hyping business owners and scaring them into selling […]

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The Value Of Your Business – How Size Affects The Price Of Your Business

The value of your business – or more importantly the price at which you can sell it – depends on the “Valuation Multiple” your business can demand. A new survey just published by Pepperdine University in conjunction with the International Business Broker’s Association confirms what we already know: the bigger the business the higher the […]

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Business Valuation Basics: It Is Not About EBITDA or Value It’s About Price

Business Valuation Basics: It Is Not About EBITDA or Value It’s About Price

I recently came across an interesting article on the New York Times “You’re The Boss” Blog. Like a lot of How-To articles about selling a business this one offered several suggestions on how to make your business more valuable. But more noteworthy than the article was the comments section. As with most “how to sell […]

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Selling A Small Business: 6 Surprisingly Valuable Lessons From Yogi Berra

Selling A Small Business: 6 Surprisingly Valuable Lessons From Yogi Berra

  Selling a small business is hard work — and for many entrepreneurs, the process can seem hopelessly complicated. When you’re faced with a daunting task, sometimes the best thing to do is to narrow your focus. Concentrate on just a few core ideas and actions. And no American personality has been better at trimming […]

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