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

How to use valuation as a management tool [video]

Posted by James Price | JPAbusiness on 03-Oct-2018 02:00:00

Don't wait until someone offers to buy your business to seek a business valuation or market appraisal.

Valuations are extremely useful management tools for business owners looking to maximise their current business performance and long-term value.

A valuation can help you identify what you are currently doing that is adding to your business value, and what you are doing that is detracting from value.

My advice is that, if your business is greater than five years old, you should have it valued on a reasonably regular basis.

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Topics: Business Value, Advice, Valuations, Video, business advice, business management, market appraisal

5 fundamentals of running a business [infographic]

Posted by James Price | JPAbusiness on 15-Aug-2018 02:00:00

There are 5 key business fundamentals a business owner or senior manager needs to grasp in order to run a business for optimum performance.

The following information is a distillation of the things many of our best clients do on any given day of the week, presented here as a simple infographic.

These fundamentals are not necessarily sequential, instead they often overlap and run in parallel, and also inform and interact.

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Topics: Business Value, infographic, business advice, running a business

How valuers assess a business' online presence [infographic]

Posted by James Price | JPAbusiness on 27-Jun-2018 02:00:00

In order to determine a business’s value we assess business health factors, which may include:

  • Financial performance
  • Quality of product or service delivery
  • Point of difference and competitive position
  • Staff culture and performance
  • Physical location and geographic coverage
  • Diversity, size and quality of clients
  • External pressures on business, including industry trends and dynamics
  • Future projections and prospects.

In the past five years, a critical new health factor has been added to that list: ‘Online presence and quality of online interaction’. 

The following infographic illustrates some of the factors we take into account when assessing a business' online position.

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Topics: Business Value, Online, Free download, Running your business, infographic, Business valuation

How can a valuation add value to a business? [video]

Posted by James Price | JPAbusiness on 20-Jun-2018 02:00:00

Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:

  • a family break-up
  • retirement
  • need for business restructuring
  • bank lending requirement
  • purchase offer
  • bringing in a new shareholder or partner, and so on.

In this video I explain how valuation can actually be used as an ongoing management tool, adding value while you’re running the business and also potentially boosting value on exit.

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Topics: Business Value, Valuations, Exiting your business, Business advisor, business management, growth strategies

How to value a business

Posted by James Price | JPAbusiness on 13-Jun-2018 02:00:00

Business Maintainable Earnings (or Sustainable Earnings) is often the way the market values businesses, particularly small- to medium-sized enterprises that are not traded on the stock exchange.

Business Maintainable Earnings (BME) is the ability of the business to generate earnings into the future.

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

Free template: Succession planning scorecard

Posted by James Price | JPAbusiness on 06-Jun-2018 02:00:00

As a business owner, it’s never too early to start thinking about your succession strategy and developing the skills of your team and business capability.

Many people think of succession planning as something old people do once they decide to exit their business. This is far from the truth.

Succession planning is a young person’s pathway to building a valuable business. It’s about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.

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Topics: Business Value, Selling your business, Advice, Valuations, Succession planning, Business advisor, business management

How to improve cash flow with customers [video]

Posted by James Price | JPAbusiness on 28-Mar-2018 02:00:00

We often come across cash flow issues when working with new business advisory clients or conducting business valuations.

The issues are generally related to two main areas of the business: customers and suppliers.

In this video I'm sharing some advice on how to better manage those cash flow issues that relate to customers.

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Topics: Business Value, Cash flow, business advice

How to ensure your suppliers add value to your business

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

Suppliers are key value drivers in a business.

Suppliers make up a large part of the cost of doing business, but more importantly they assist in providing consistency of whatever product or service you deliver.

The degree to which you’ve got that continuity locked down will allow you to drive more value in your business.

If you’re servicing a customer and you know you can be predictable and deliver at a certain time, then you’re much better at pitching to that customer against a competitor.

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Topics: Business Value, Suppliers, business advice, business management

5 tips for building a strong banking relationship [cheat sheet]

Posted by James Price | JPAbusiness on 21-Feb-2018 02:00:00

Many business owners consider banks a necessary evil, but I don’t subscribe to that view.

Your banker or financier is a key partner in your business and, as with all successful partnerships, good communication is key.

The following cheat sheet contains some of our top tips for communicating with your bank and setting yourself up for a healthy partnership.

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Topics: Business Value, Banks and lending, Banking, business advice, Business advisor, business partners

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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