Baby boom entrepreneurs are beginning to think about retirement. Many worry about being able to sell their businesses for enough to make a significant contribution to their retirement lifestyles. Some are finding that befuddled business practices have bewitched the value of their business. This article offers sage advice, telling business owners how NOT to cast a curse upon themselves.
(PRWEB) September 25, 2004 - A vast number of baby boomer business owners will be retiring within the next eleven years.
Unfortunately, most will NOT be properly prepared to sell their business for the best and highest price. In fact, some will not be able to sell their business at all. This impending tragedy can be averted if the owners know what to do--and how to do it.
It has been said that business buyers purchase future cash flows. While that is correct in theory, there is really much more to the story. Individual business purchasers are really purchasing a "dream" that is owned by the seller.
The purchaser really expects to buy:
1) A good job
2) Security with reduced risks
3) Respect as a business owner
4) Cash Flow and a good return on investment
5) An operating/functioning system that will provide items 1 through 4.
In reality, business owners have no clue as to how to fulfill the buyer's expectations. That's because business owners normally don't think in terms of "the value" of their businesses. Rather, they think in terms of "the bottom line." The bottom line is only one side of the coin. The other side of the coin is value.
Value can be defined as "the amount of money in cash equivalents, that a buyer will pay you to willingly part with your business."
The most important part of value deals with the potential buyer's perception of the worth of your business. As with many things, perception IS reality. What perception would an investor (purchaser) have of YOUR business?
Perceptions of businesses are often fogged by Tax-Saving "mania" that grips business owners. Some business owners believe that the most important thing in business is--TO AVOID TAXES. Many small businesses even keep their books on the "income tax basis" of accounting. When this happens, profits from the business may look very low--adversly impacting a potential buyer's perception of value associated with the business.
While the business owner has saved income taxes--without proper long term strategies and tactics to offset the implied damage caused by low profits--the business owner will actually suffer financial loss due to decreased business value.
I do not advocate paying more income tax than is legally necessary. However, without effective "counter measures" to offset the numerous "tax advantages" enjoyed by the business--business value can suffer terribly. And this is a terrible "curse" when it comes time to sell a business.
Some business owners understand that they should "do things differently" a few years before they plan to sell. These owners think that they "have time" before they need to get their business ready for sale. The truth is, that we all live on borrowed time. Life events such as divorce, disability and death (the three BIG D's) may find business owners caught with their pants down, regarding the salability and values of their businesses.
So, how does one go about saving income taxes while making (and keeping)a business valuable and marketable?
A newly released book provides "straight talk" to business owners so they can learn very quickly HOW to increase and maintain their business values!
Your Business IS Your Goldmine! is written by a CPA who is also an Accredited Business Valuator, Certified Valuation Analyst and a Certified Business Broker. Grover Rutter knows HOW to communicate with business owners the most important message--that most business owners NEVER hear! HOW TO GET THE MOST FROM YOUR BUSINESS! This powerful(and easy to use) message will help business owners put their business financial well-being into perspective.
This tax deductible investment is less than $20, and should be read by every business owner. Here are a just a few of the rave reviews given to this new business guide:
"I found the book to be a veritable "heat seeking missle", it immediately homed in on the salient and most important issues facing business owners and the often times missed opportunities. I can easily say that I would recommend this book and the sage advice given. In short it was most helpful, even to an old hand like me."
Michael E. Mason, CPA,CFP,CVA,CFFA -
Forensic CPAs,LLC
"Grover Rutter has a must read for the busy entrepreneur. He has taken a "common sense" approach to showing any business person how to maximize the profitability of their business."
Corey Poitier
"I found the book easy to read and understand and full of useful information. I am recommeding it to my clients." Frank Rosillo, CPA
"As the co-owner of a family run computer consulting business, this book will teach us what we need to know to grow the value of our business for our children. Grover Rutter not only knows of what he speaks, but his message and wisdom are sound." Jody Noble
Grover Rutter is an interesting public speaker and also available for interviews on talk radio and television talk shows. At home in front of an audience, Grover Rutter can teach business owners how to prevent "The Great American Dream" of owning one's own business--from becoming a nightmare.
Mr. Rutter's sound business tactics can be accessed by clicking on www.Lulu.com/businessadvisor
Additional free information can also be found at www.gruttercpas.com.
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