James Price | JPAbusiness

James Price has over 30 years’ experience in providing strategic, commercial and financial advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.
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Recent Posts

3 tasks before you interview [video]

Posted by James Price | JPAbusiness on 23-Sep-2020 02:00:00

When hiring new staff there are a number of issues that need to be dealt with by a business owner or senior manager before a recruitment interview process begins. It’s much harder to retrofit this important information into a recruitment process after the fact.

In the following video I list 3 key tasks you should undertake before you begin the interview process.

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Topics: infographic, Video, staff management, business advice, Business advisor, staff recruitment, hiring staff, James Price, JPAbusiness, Parramatta, Central West NSW

How long will it take to buy a business? [Video]

Posted by James Price | JPAbusiness on 16-Sep-2020 02:00:00

We have helped some clients find the right business within six months while, for other clients, it has taken over three years.

The key phrase is ‘the right business’; I’m sure we could speed up the process if our aim was just to help our clients buy ‘a’ business, but that’s not our job.

In this video I explain why it's important not to rush into buying a business, and share four tips for managing risk during the business buying process.

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Topics: Buying a business, infographic, Video, business advice, Business valuation, Business advisor, business broker, vendor due diligence, business buying funnel, JPAbusiness, Parramatta, Central West NSW, business buyer, business transaction advisor

When should I tell my team I'm selling? [Video]

Posted by James Price | JPAbusiness on 09-Sep-2020 02:00:00

Our guiding principle is that open and transparent communication with your staff is always a positive thing.

However, this is complicated by the fact selling a business is a sensitive issue and disclosing the fact it’s for sale can be detrimental to a business’ operations.

A pending sale can unsettle your team and, if it gets out in the market, it can cause difficulty with clients or suppliers.

In this video I share some strategies for sharing business sale plans with key staff:

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Topics: Selling your business, Video, staff management, business advice, selling a business, Business advisor, James Price, JPAbusiness, business basics, Parramatta, Central West NSW

How do earnouts and contingency payments work? [video]

Posted by James Price | JPAbusiness on 02-Sep-2020 02:00:00

If you are considering selling a business at the larger end of the SME market, with a longevity of orders and forward earnings, it’s important to consider the concept of earnouts and contingency payments, because it will come up from interested parties.

It’s also important to recognise that earnouts as part of the purchase price have capital gains tax implications, so expert advice is essential.

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Topics: Buying a business, Capital gains tax, business advice, selling a business, Business advisor, James Price, seller earnouts, JPAbusiness, Parramatta, contingency payment, Central West NSW, transaction advice, business sale transaction advisor

Do I need a valuation before selling a business? [video]

Posted by James Price | JPAbusiness on 26-Aug-2020 02:00:00

The simple answer is ‘no’, you don’t need a valuation to sell a business.

However, in terms of engaging JPAbusiness to sell your business, the answer is ‘yes’: we always recommend clients have their businesses independently and professionally valued before they invest time and money in a sale process.

In this video I explain how our first experience of helping a client sell their business – combined with our many years of subsequent experience – has shaped this philosophy regarding valuation and its role in a successful sale process.

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Topics: Business Value, Video, business advice, selling a business, Business valuation, Business advisor, Business selling, JPAbusiness, Parramatta, client case studies, Central West NSW

How to prepare your business for sale [eBook]

Posted by James Price | JPAbusiness on 19-Aug-2020 02:00:00

In a perfect world, business owners would be preparing their businesses for sale from the moment they established or purchased them. For example:

  • important business structures, systems and processes would be carefully devised and executed from day one;
  • succession plans would be in place and understood by senior members of the team;
  • clearly worded partnership agreements would reduce the chance of misunderstandings on exit, and so on…
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Topics: Selling your business, Free download, business advice, eBook, selling a business, Business advisor, Business selling, vendor due diligence, JPAbusiness, Central West NSW, business sale

How to create a shareholders’ agreement [template]

Posted by James Price | JPAbusiness on 12-Aug-2020 02:00:00

If you’re a business owner considering taking on an investing party or shareholder, some form of written shareholders’ or partners’ agreement is vital.

Use the agreement to make clear all parties’ investment and partnership intentions and responsibilities from the outset.

Remember, this is your business, so you can cover whatever you think important, from business relationships, ethics and cultural issues, to insurances, taxation and debt obligations; it’s your blank canvas.

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Topics: Advice, Partners, Business Structures, Shareholders, Template, Checklist, business advice, Business advisor, shareholders agreement, Parramatta, COVID-19, coronavirus, Central West NSW

How to protect your business during the pandemic [infographic]

Posted by James Price | JPAbusiness on 05-Aug-2020 02:00:00

 

 

In mid-April we published an infographic detailing our expectations around the business activities we would all need to engage in following the initial impact of the COVID-19 crisis.

The three phases of activity we expected to follow the initial impact were: survival, protection and emergence.

Our take was that if you want to stand a chance of getting out of crisis mode and through to the other side, intact and ready for a viable future, you need to explicitly understand each phase and work your business, strategies and decisions within their constraints and conditions. 

For most of our clients and other businesses, with the exception of those significantly impacted by the ‘Stage 4’ lockdown announced this week for metropolitan Melbourne, we’re currently in the ‘protection' phase of our predicted timeline. We thought this might be a useful time to publish a reminder of what we believe businesses should be considering at this time.

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Topics: Business Planning, infographic, business advice, Business advisor, JPAbusiness, Parramatta, cash flow management, COVID-19, business strategy, coronavirus, scenario planning

Staff training and PD plans – why you need to think about them now [templates]

Posted by James Price | JPAbusiness on 29-Jul-2020 02:00:00

As we head into an uncertain FY20/21 business owners and managers may be tempted to think now is not the time to prioritise staff professional development needs. I believe the opposite is true.

One of the key elements of your business proposition – large or small – is your team, and they’re going through the same anxiety you are. The COVID-19 crisis is impacting their professional lives, personal lives, physical and mental wellbeing, just as it is yours.

Even though you may be struggling simply to pay wages, the last thing you want is to lose good people, whether you lose them physically, or in the sense that they become disengaged as a result of their anxiety about the current environment.

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Topics: Template, business advice, business management, staff performance, running a business, professional development, Parramatta, staff wellbeing, managing employees, staff training, COVID-19, coronavirus, Central West NSW

What are some 'rules of thumb' for valuing a business?

Posted by James Price | JPAbusiness on 22-Jul-2020 02:00:00

When it comes to valuing businesses – listed or private – you will often hear people refer to ‘rules of thumb’. Some will say the value of a business is:

  • ‘x times its revenue’ or
  • ‘x multiples of its earnings’ or
  • ‘a function of its after-tax profit’ or
  • ‘a function of its gross profit’ and so on.

These ‘rules of thumb’ tend to be industry based i.e. “a business in Industry A is worth ‘x’ times multiple of earnings” while “a business in Industry B is worth ‘x’ times revenue”. (I won’t repeat the actual ‘rules’ I’ve heard – I don’t want to encourage anyone to use them!) 

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Topics: Business Value, business advice, Business valuation, Business advisor, business valuer, JPAbusiness, Parramatta, Central West NSW

 
Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
 
 

 

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