14 tips for controlling cash flow [cheat sheet]

Posted by James Price | JPAbusiness on 09-Jan-2019 02:00:00

Cash flow is a critical part of the operation of a business.

If your business were a human body then cash flow would be the system of veins and arteries and the blood that runs through them: it's essential for keeping the body/business alive, active and functioning.

This cheat sheet contains 14 of our top tips for managing your cash flow. 

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Topics: Cash flow, Working capital, Running your business, Advice, cheat sheet

How to create an annual business plan

Posted by James Price | JPAbusiness on 09-Jan-2019 02:00:00

You can’t plan for every eventuality, but you can plan to withstand shocks. Having a business plan and following our 3-Step Annual Business Plan Process will help you make your business as robust as possible, should such a shock occur.

Planning is about influencing the things you can influence, while taking account of the things you can’t. The latter are risks or opportunities that may or may never eventuate.

By changing the things you can change, you can position yourself to take advantage of opportunities should they arise, or mitigate risks that might flow.

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Topics: Business Planning, Running your business, Advice, Business advisor, annual business plan, Template

How to sort genuine buyers from tyre kickers when selling a business

Posted by James Price | JPAbusiness on 02-Jan-2019 02:00:00

When selling your business, it’s important that you value the information you have put together on the business and don’t just share it with anyone.

I would advise working with a broker or advisor who is sensitive about how they share your information and who actively uses a prequalification process in dealing with potential purchasers.

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Topics: Selling your business, Advice, selling a business, Business advisor, prequalifying buyers

How to drive success with employee share ownership

Posted by James Price | JPAbusiness on 02-Jan-2019 02:00:00

Share ownership is often considered by private mid-cap and small business firms as a way to have a more meaningful relationship with key members of the team. 

Basically, employee shareholding arrangements involve applying mechanisms to enable key personnel to share in the earnings, performance and direction of your business.

Providing employees with an opportunity to share in your business is seen as a way to motivate their performance and engagement; to help them see their work as more than just a job – it’s an interesting idea.

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Topics: Staff, Employment and recruitment, Advice, Running your business, Business advisor, staff share plans

Do business buyers still pay for goodwill?

Posted by James Price | JPAbusiness on 12-Dec-2018 02:00:00

Goodwill is an intangible value associated with a business and is based on the business' potential to provide a future flow of earnings beyond the current owner. 

Stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market. Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

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Topics: Business Value, Selling your business, Exiting your business, Business transfer, Due diligence, Advice, goodwill

3 questions to ask when valuing a business [video]

Posted by James Price | JPAbusiness on 05-Dec-2018 02:00:00

Business valuation is not an exact science and nor is it a simple science. However there are some factors you should always consider when assessing a business’ value.

The following video lists 3 key factors to consider when valuing a business and 3 questions you need to ask to uncover this important information.

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Topics: Video, Advice, BME, Business Value, Business maintainable earnings, business advice, Business advisor, Business valuation

How to create a business plan in 3 steps

Posted by James Price | JPAbusiness on 14-Nov-2018 02:00:00

Business plans don't need to be weighty documents, but they do need to be:

  • referenced regularly,
  • shared with others, and 
  • pressure tested.

The following graphic illustrates the 3 fundamental components of an annual business planning process:

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Topics: Business Planning, Running your business, Starting a business, Advice, infographic

How to avoid real estate traps when buying a business [cartoon]

Posted by James Price | JPAbusiness on 17-Oct-2018 02:00:00

Businesses – particularly family businesses – often use real estate assets as part of their wealth generation strategy.

This may lead to situations where the business and real estate assets are interdependent, creating complexities when it comes time to exit and establish a fair market valuation.

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Topics: Family business, Business Value, Selling your business, Buying a business, Starting a business, Advice, Valuations, cartoon

How to transfer business ownership [cheat sheet]

Posted by James Price | JPAbusiness on 17-Oct-2018 02:00:00

There are many issues vendors need to deal with in the lead-up to a business sale settlement, from staff contracts and entitlements, right through to P&E roadworthiness certificates.

When selling – or buying – a business, the last thing you want is a handover in which business performance is negatively impacted by transfer issues not planned out ahead of time and dealt with appropriately.

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Topics: Selling your business, Advice, selling a business, Buying a business, Business transfer, cheat sheet

10 do’s and don’ts when selling a business [infographic]

Posted by James Price | JPAbusiness on 10-Oct-2018 02:00:00

Planning, professional marketing, timing and finding the right match regarding value and terms are just some of the ingredients that go to making a successful business sale. (As we often say, selling a business is not an exact science!)

The following infographic is a distillation of lessons we've learned over many years of advising business sale clients.

Use these tips to help you make the right decisions when preparing your business for sale.

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Topics: Selling your business, Advice, infographic, selling a business, Business Planning

 
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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