Private Business Owners have the advantage of maneuverability. They can make decisions rapidly, deploy solutions quickly, add new lines at any time, and control their finances as the needs of business and personal life allows and demands. The questions you should ask yourself about your business are: Is my business growing? Is it serving my needs and the needs of the family and estate? Do I treat my business or practice like an investment (which it is) or as a personal reflection of myself (which it shouldn't be)? Am I ready to increase the value of my investment? Do I have a plan of change and direction which will allow my investment of time and personal equity to maximize returns? Am I stalled or plateaued at my current business level? What should I be doing to move forward? Yes, there are a lot of questions to ask but the reality is when you stop asking, you stop growing and your business investment ceases to produce good results and meet expectations. This is often when many business owners, professional practices, and entrepreneurs begin to fail. Why should you allow failure? There is so much more you can do and it doesn't matter what line of business you have chosen to be in. Let me give you an example of failure in the face of opportunity:
the business to become mired in debt. The debt was about equal to the business value and the overall equity picture was about 50% business assets and 50% debt. That can happen easily and shouldn't be a problem as long as you have revenue to support the notes. In this particular case the owner also lost the desire and drive to run the operation. That's when it becomes difficult to maintain revenue and overcome the costs of business. The owner wanted to sell but who would buy a no- growth business owing as much as it is worth, and which the owner is depressed about? Practically no one would want this. The opportunity in this situation is to revitalize the business effort by focusing on desired expectations of the rewards of doing so, converting the debt to a positive by overcoming it, expanding the business where possible, raising efficiencies, and looking for opportunities to increase the overall business equity. If all these things are happening and a growth trend is in place, then two things start to work in the owner's favor. First the debt to equity ratio begins to drop and second the growth trend-line causes opportunity for financing and buyer interest. In this particular case the owner chose to do nothing and is still suffering from a lack of growth. There is more to this story than you read above, such as the cause for lack of interest in the business as well as personal issues which must be overcome as well. We are not interested in those particulars in this article but I do deal with them when working with clients and you should also be aware that many unexpected things in life can cause a business owner to lose interest in the operation. Now here is an opposite example of addressing opportunity:
and years in business was slowly failing, mainly from a lack of good business planning. Instead of continuing on the same path to failure the owner happened across someone enthusiastic about business who was looking for an opportunity to participate in growth potential. After speaking about it the two decided to work together to rebuild and revitalize the business over a planned period of time. The infusion of belief in growth from the new partner as well as the new partner's skills in accounting and business management allowed the owner to begin to focus on the part of business most enjoyed, solving customer problems, fixing electrical issues, and running a good crew of electricians. The whole problem was how much the business had been bogged down by the typical bottlenecks of administration, paperwork, bookkeeping, and the other things which are important but business owners often don't enjoy. In the end the combination of business talent and infusion of growth resulted in a business growing from nearly worthless to several million dollars in value in just a few years! The owner gave up a portion of ownership and revenue for a return way beyond his expectations. The new partner was bought out and the original owner continues on with a huge increase in revenue, asset value, and hope. All the systems needed for success are now in place. I cannot help but believe that another advantage of the partnership was the ability of the new partner to see the business as only an investment! The point of the two stories is to get you to think about what you are doing and where you are going with your opportunities. Are you sidelined, distracted, or just need help in the areas you don't enjoy about the business? What do you enjoy the most? If your business were ideal, what would it be like right now? What would it become in the future? There are few things in our non-personal lives as rewarding as ownership of a good business. You must believe it is true, just as it was when you went into business. Now you have the opportunity, as you do every day, to revitalize your business, focus on it and your own future with the full faith and force of independence and high expectations of success! Begin to Review Your Situation Now - Click Here |
| Increase the Value of your Business and Net Worth This Year! |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Join the ranks of
excellent entrepreneurs
by becoming a member
of Entrepreneurdex.
Membership is by
invitation only. Contact
Ecspex to become
qualified! Click HERE
excellent entrepreneurs
by becoming a member
of Entrepreneurdex.
Membership is by
invitation only. Contact
Ecspex to become
qualified! Click HERE
Copyright ©
2008 - Ecspex
2008 - Ecspex
