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How to successfully exit your business
Imagine, you have built a successful business over the past 10 to 20 years but when the time comes to retire, you struggle to sell your business. Often business owners fail to plan their exit, which is why statistics show c80% of businesses that go to market fail to sell.

There are several reasons for these failures including unrealistic expectation of pricing, lack of systems and information, inexperienced management teams and minimal investment in key resources.

These issues can be resolved if the sellers planned their exit further in advance. It is good practice to start considering your exit plan at least 3-5 years before your desired exit date.

So, how can you successfully plan your exit?

Resources and Management

Most buyers are not looking to ‘buy a job’ but want to invest in an ‘asset’ therefore if as the owner you are still heavily involved in your business and there is minimal cash left after you pay your dividends, then the business is a ‘lifestyle’ rather than an asset.

If you are planning your exit, then owners should look to invest in a management team and resources that allows the owner to transition from ‘working in to working on the business’, this usually happens in 3 stages:-
- Outsource activities that are not key to your business such as accounting, HR, IT etc.
- Hire key management staff that support the owner in leading business strategies.
- Hire board members or CEO that eventually replace the owner as the key decision maker.
Forecasts and Planning

For a successful exit, businesses need a robust financial and business plan. It is useful for these plans to be no shorter than 12 months, with atop level plan for 5 years. The purpose of the plan is to build the financials and cashflow required, measure risk and detail strategies required to grow.

It is best practice to bring your management team and key employees into the planning process, this is typically known as bottom up budgeting as it will bring more accountability within the culture of the organisation.

It is common for a business looking to exit, to complete their own acquisitions as it can fast track the exit plan, commonly known as a Buy, build and exit.

Reporting and Information

One of the biggest issues found within the due diligence process, is poor information from the sellers. This results in lack of faith from investors, as poor information leads to inaccurate and overstated valuations.

There is basic information required within an acquisition process including management accounts, KPI’s, sales trends and other key information that supports the business journey but also the valuation of a business.

Ideally a business will collate financial and non-financial information into a ‘Sellers pack’ which is updated every month. Acquirers have more ‘faith’ in business operations if a seller can produce a ‘professional pack’ with trusted information that can be backed up by systemised reports.

One of the biggest issues in valuations is sellers relying only on their financial statements produced by their accountants at year end, buyers will want up to date, accurate and real time information, which is not possible if there is poor month on month financials, tidied up once a year for tax purposes.

Process, systems, and controls

For a business to run free of its owner, there needs to be good processes and controls. Processes are the steps and rules that employees follow to complete tasks, where controls are built in around those processes to reduce the risk of error or fraud.

Example

A business has a sales director who speaks to clients and sends quotes to new customers. The director has autonomy to reduce quotes by 10% but if they want to go above this, they need sign off from the CEO. In this example the quoting tool is ‘the process’ and the sign off levels are the ‘controls’

So how do you track that the process is followed? The business would need reporting in place to keep track of leads, quotes and converted sales which should be compared to the ‘budgeted’ sales to keep track of discounts.

As the owner and founder of Wilkinson Accounting Solutions, I am on a mission to save the world from failed acquisitions and talk regularly about exit planning and acquisition strategies on my podcast The Build and Exit. More informationathttps://wilkinsonaccountingsolutions.co.uk/about-us/
December 13, 2023
Money Making Made Easy With the Right Methods

It is quite feasible to earn a livelihood or generate more revenue without feeling the need to hurry. We’ll discuss how to make ends meet Money Making Made Easy.

Each of us had a fantasy of becoming billionaires overnight and never having to work another day in our lives again. Unfortunately, the chances of winning the lottery are tiny, and the most profitable method to get money is still to work for it through the sweat of your brows. Fortunately, there are techniques of producing money that are really simple and do not need an enormous lot of work, particularly on the internet. We are completely transparent with you.

As a result of cashback

You’ve undoubtedly heard of iGraal, the site that allows you to get money back on purchases you’ve already made. There are an increasing number of services that provide what is known as “cashback.” The concept is straightforward: you make your purchases via a specialised platform (which will lead you to the merchant’s website), and after payment has been received, the platform will refund you for a portion of the money you spent buying. Asyou can Make money from home you can find the best choices there.

Teach over the internet

Do you have expertise in computer science, mathematics, biological sciences, or literature from the eighteenth century? What if you were able to put your abilities to good use by assisting others in need? Many platforms allow anyone to provide online courses to children, adolescents, and adults who have shown an interest in doing so. Create an outline for your course schedule, prepare your files, connect your camera, and offer your expertise for a highly variable payment that varies from site to site. It’s important to note that on certain sites, you may select your own hourly rates. If you want to fund your next trip in the sun, this is a great supplementary activity to consider!

Recycle or resell your outdated technological gadgets

Each of us has an old computer or an old phone that has accumulated due to the fact that we have changed models or the screen is a little sluggish. By getting it reconditioned by specialists, you may entirely part with it and make a new one happy. This process, which is often referred to as the “back market,” is presently at its zenith of development. You bring your corpse to a shop where it will be evaluated by a salesman with specialized knowledge. It will provide you with a buyout price based on the condition of the phone or computer in question. Your gadget will be restored to working condition, reset to erase all of the data you previously stored on it, and placed on the market at a deeply discounted price as a result of this process. The procedure is good to everyone involved: you acquire an agent in the bottom of your drawers, and someone on the other end of the process walks away with a smartphone that is half the price of a new one and still under manufacturer’s warranties.

Make money by selling your clothing on the internet

We all have clothing in our closets that we no longer wear or have never worn, and that have become mouldy due to lack of use. What if you were able to monetize them? Reselling them on the internet to those who are looking to purchase second-hand gives you the opportunity to give them a second chance at life. Keep in mind that you should only sell garments, accessories, and shoes that are still in excellent shape to prospective purchasers. Read the terms of service carefully to understand precisely what you are permitted to list and what you are not, as well as to determine if the site will take a commission on your sales or not. It is possible to save one hundred euros as a result of this technique, which is both lucrative and environmentally friendly.

Promote your home-made creations

Do you have a talent for macrame or poached painting on porcelain? Alternatively, maybe you print amusing remarks on mugs or postcards? So, what are you waiting for to start your virtual retail business? Independent designers may sell their jewelry, paintings, postcards, decorative items, and other products on sites such as Etsy, which allows them to reach a worldwide audience. You may sell your artworks and connect directly with possible purchasers in total confidence while using our service. You may choose to make it your primary activity or to dedicate some of your time to it on a part-time basis in order to generate extra cash from your art. The possibilities are endless for you to let your creativity run wild while earning money for your unique, handmade products.

Become a pet-sitting professional

It works on the same idea as a babysitter, but just for pets instead of children. Masters who are away for the weekend or on vacation often search for responsible individuals to keep an eye on their animals, feed them, and even take them out for a walk while they are away. You may either keep it at home or take it to the master’s office on a daily basis to take care of it. To get the position, all you have to do is reply to job postings on websites like as Yoopies or create your own. If you are involved in anything other than a complimentary activity and you commit several hours per week to it, you will need to submit a certificate of competence in order to participate in sports. In the same way that online courses allow you to create your own compensation, you may also accept the compensation supplied by the person.

July 23, 2023
What are some of the advantages of getting PMP certified?

PMP certification, or the Project Management Professional Certification, is a globally recognised certification that evaluates a candidate’s ability to manage projects, processes, and business operations on priority. According to the project management institute, there are more than one million PMP certification holders around the globe. The PMP certification applies to project managers in various sectors, including construction, Information technology (IT), health, and business.

Earning a PMP certification can be instrumental in helping you to climb the career ladder by benefiting your career in many ways. It can efficiently increase your salary and improve your project management skills to make you better at handling projects of all sizes. There are many advantages to getting PMP certified. In this article, we’ve listed some of the benefits of a PMP under your belt that can help you navigate your decision.

Acquire new and in-demand skills

Earning a PMP certification is not a cakewalk as it requires rigorous training and a significant amount of course. Throughout the PMP certification course, you will undergo training in five project management processes, including initiating, planning, monitoring, controlling, and final closing. In short, the PMP certification courses emphasise equipping the matriculant with the end-to-end knowledge of implementing a project for better project execution.

Industry Recognition

The PMP certification can demonstrate your skills and knowledge in managing a project. Potential employers can assess a candidate’s potential in managing a project as they have undergone the training and experience required for the project management professional. Earning the PMP certification requires time to prepare, getting specialised training from an authorised source, and having the discipline to complete practice exams and study sessions. The benefits of having a PMP certification include displaying project management skills and knowledge that are immersed in earning a passing score on the exam.

Career growth

The PMP courses are internationally accredited and recognised by the entire global business community. Moreover, leading multinational companies and tech giants look for PMP-certified project managers for their skills and knowledge acquired during the certification.

Increases your earning potential

PMP-certified project managers can earn more than their non-certified counterparts. To put that in perspective, PMP-certified project managers earn 25% more than non-certified ones.

A professional can use it in any field

As businesses and organisations across the globe have recognised the value of project managers, project managers have become the most sought-after professional in most companies. However, employers are actively looking for professionals with PMP certification to ensure that their projects are implemented with excellence.

Some leading sectors hiring PMP-certified professionals include banking, medicine, information and technology, oil and gas, insurance, manufacturing, construction, etc.

Enhances skills of project managers in handling more complex projects

PMP certifications are meant to improve project management skills. Acquiring a PMP certification involves rigorous training and requires a great deal of hard work to pass the exam. However, students drastically expand their project management knowledge level after the course and training. It can also open up opportunities for new learnings and skills that can sharpen project management skills.

These are some of the benefits of earning a PMP certification. If you wish to climb the corporate ladder and manage a big and complex project, earning a PMP certification can be worth your hard work and investment.

October 28, 2022
The Basics of Small Business

Now a day’s business is getting increased. The online business and marketing is also increasing rapidly. So it is very essential to understand the basics of business and marketing. Customer is the king in every business. Every business man should focus on the needs of their valuable customers.

Focus on your valuable customers

Business man should understand about their ideal customers. What is their requirements and products. Business owner should research the market and maintain profile for valuable customers.

Search Engine Friendly

Your business should be search engine friendly. It should be visible online on the first pages of major search engine like Google, MSN and Yahoo at the time of searching information.

Required a strong business relationship

It is found that some small kinds of people purchase the products immediately and rest of 70 percentage of people to learn and plan to purchase in future after calculating the profit and loss. If we keep good relation with the buyers, definitely we will expect something great business according to their requirements.

To get success in business, you have to satisfy your customers. so identify your best customers and share your business information to get more and more business deals so that definitely it is expected a good sales time to time because customer is the king in every business.

These are the basics of business and nothing else. Business owners should be sincere in the every station of their business while dealing with the customers.

The key to small business marketing success then is to start with the customer. With the customer defined, deliver the information they need and develop a relationship that ultimately results in a sale. It is important to make sure the message goes out via a method that is most likely to be read and engaged with. Don’t be invisible, forget the marketing hype and focus on the basics.

Customers are God in every business. If customers are happy, we as a business owner definitely get more and more business.

Marketing strategy

Marketing strategy is a vital point in every business. Business owners should follow some important points while doing the business according to the products. We have to carry out a survey according to the market and requirements of those subject products. Survey can be done both offline and online with a low budget so that we can implement the next action plan of business. These are the basics of business one must carry out before starting the business so that business will definitely run without any problem and expect a good return in future.

October 1, 2022
Your Present best Chances with the Business Without Investment

In the early stages of their businesses, many entrepreneurs confront the same challenge: how to earn a profit while avoiding the need to spend significant financial resources in their operations.

In order to assist those who wish to start a business but have limited financial means in doing so, the following are five steps they may take to help them overcome the difficulties listed above.

Try to maintain your job for as long as you possibly can if at all at all feasible

To be an entrepreneur, some individuals feel that one must devote one’s whole time and attention to one’s own commercial operation. Others, though, are not convinced. A considerable deal of effort and many hours of hard work are required to achieve success in the real world. But if you are already employed, there is no need that you stop working right away (at least for the time being). Beginning with excitement because you have a better grasp of how the company will be received, as well as the demand for its products, and how the brand will change over time as you gain more information about the market, it is an exciting experience. For business without investment you need to consider the followings.

During the second step, you should choose a specific area of study in which you are very interested

Despite the fact that you may not have the required financial means, it is feasible to start your own company. The most important thing to remember is to devote the required time and attention to the task at hand. Choosing the sector in which you wish to work is an important step before beginning your job hunt. This is, in essence, the first stage in the procedure’s progression. In this instance, the question is not “What is the best business to make money in?” but rather “What is the most profitable industry to make money in?” The issue being explored is “What is the most lucrative sector to make money in?” The inquiry states that the question is “What sectors do I already have skills and expertise in, and how can I earn money in those businesses?” The inquiry further states that the question is “What sectors do I already have talents and experience in, and how can I make money in those businesses?”

Fulfilling all of your responsibilities at your place of residence

According to the PEGN website, it is possible to identify numerous instances of entrepreneurs who started their enterprises in a small room in their own home and eventually expanded. As a result of the reduction in overhead, it will not only become more feasible, but it will also become less costly due to the savings in lighting, water, power, and renting space that will be realised as a result of the drop in overhead. Create a website on a free or low-cost platform and use social media to market your product or service after you have determined your goals and products, and after you have determined your goals and products, after you have determined your products and services. Giving a first taste of the product to a small number of close friends may be a wonderful experience, especially if it allows you to judge how the product will be accepted by a larger audience.

Using social media sites to reach out to customers (make sure you use the business account!) is a great way to build your brand and build relationships with your customers. When a consumer sees a basic list of accessible products and services selections, as well as when they get automatic responses during their initial contacts with the organization, customer acquisition is made easier.

Implement, test, and re-implement your solution as many times as necessary

Understanding what works and what doesn’t work during the first few months of operation can assist the organization in identifying areas where it may make changes to its current operating procedures. In order to determine the most lucrative road to profitability, you must first get input from customers. They will tell you whether or not your product works, what alternative items they would want you to manufacture, and what their most urgent requirements are. Following the receipt of this information, you will be better prepared to do more study and eventually choose the product or service that has the greatest likelihood of success in the marketplace. As a consequence, the creation of approaches and actions for providing items to customers as quickly and effectively as feasible would be required.

The fifth step is to design plans for the company’s future growth and development

Soon after your company has shown that it is capable of standing on its own two feet, you will realise that you have more time on your hands to think about long-term aims and strategies, and you will be able to put those plans into action. It is anticipated that the organisation will benefit from clarifying roles and responsibilities, as well as the elimination of day-to-day operations, which will free up resources to develop innovative ideas to attract new clients, launch more ambitious initiatives, and investigate additional job opportunities. Based on the fact that your firm is now successful, you may be in the position to allocate a portion of this revenue toward expansion initiatives, which will enable you to expand your product or service offerings into new market segments. Moreover, it is possible that you will attract the attention of an investor who is eager to assist financially to the development of your firm.

September 27, 2022
Decide what kind of home business is best for you

Starting a home-based company might be the most gratifying choice you ever make. If you don’t prepare ahead of time, it’s easy to get overwhelmed and intimidated. Avoid expensive blunders and assure your success by following these simple guidelines.

What sort of company you choose to start from home is crucial to your success. Small, medium, and large firms may be classified into three categories:

Mix of both the service-based company and the product-based business.

It’s critical that the firm you select is a good fit for your background, interests, and abilities. Choosing a company that has the capacity to match your financial requirements is also important. Take one of the numerous free online tests available to see whether your talents, personality characteristics, and interests are a good fit for a certain career path. For Home based business this is important.

Whether at home, at a shop, or at work?

Next, you need to make sure that working from home is the best choice for both you and your customers once you have decided on the sort of company you want to establish. The criteria to evaluate include whether the firm is service or product-oriented.

Home-based employment is often the most cost-effective and time-saving alternative for service businesses of any kind. Visiting your customer at their home for meetings is a common occurrence, and it is more convenient for them. More and more people are meeting clients at coffee shops. Service firms may now be more easily managed from a home office thanks to technological advancements.

Allow yourself the luxury of having an office or storage facility apart from your house

A product firm, on the other hand, might be more challenging to manage from home. Running a company from home isn’t always doable, depending on your product and your customers.

Before opting to sell a product outside of your house, you should take into account the quantity of inventory you need to store, the demographics of your customers, and how you want to advertise your product.

It is common for a product-focused firm to begin in one’s own home, build up a little amount of cash, and then move to a retail location.

Take a hard look at your home office and your family’s daily routine

Determine how much room you have in your house for a work area, and then set some ground rules with your family. Small businesses can’t afford to lose out on the advantages of having a dedicated professional location. A professional workplace may be necessary even if you do all of your business from home.

The most successful entrepreneurs who operate from home have a door they can lock to keep out the outside world. In addition to a great workplace, you’ll need a dedicated phone line and up-to-date office equipment. Working in the basement, in your bedroom, or at the kitchen table is a prescription for catastrophe. When you’re at the workplace, your family needs to know that you’re working.

To start a company, create a business plan

Creating a business strategy will be your next step in this process. All businesses need a business strategy. In any case, it should be a strong piece of writing, no matter how casual or thorough you want it to be. In writing, the idea becomes more solid. It’s impossible to know exactly what you’re going to do in advance if you just have an idea in your brain. Keep an eye on the progress of your company by reviewing your strategy every month.

A full- or part-time business venture

Even if the company of your dreams is a great fit for your personality, abilities, and credentials after developing your business plan, it may not make financial sense. As a result, it’s possible that you’ll only be able to work on your company part-time in the beginning. Working from home full time or part time is mostly dependent on two things: how much money you need to make and how long it’ll take to turn a profit.

Obtaining financing for your home-based company

After developing a business plan, the next stage is to figure out how to get money for your venture. Loans, grants, and personal savings are the most common sources of startup capital for small enterprises.

Obtaining a financial loan

Getting a loan might be challenging for young company owners who don’t have the funds or a track record of success to show that they can pay back the loan. As long as you have a well-thought-out company strategy, you may examine your prospects of securing a bank loan by looking at the quarterly survey results of senior loan officers.

Conclusion

Small home-based enterprises seldom get funds from the federal government, but your local government may provide you with information on the kinds of grants that could be available to you. Some areas opt to award incentives to particularly specialized companies, such as day care facilities, breakthrough technology or ecologically oriented companies. Grants for women and minorities are given by those who aim to encourage development within a certain demographic.

April 16, 2022