Your Company is capable of making money.
Very few business owners think they are making all the income their business is capable of making. In fact this is overwhelmingly the number one complaint that business advisors hear.
Occasionally a CPA will hear a complaint from their client that he is making so much money the government is getting rich off of him. CPAs and tax attorneys love this kind of client because this is what they are trained for. Save the client taxes. Unfortunately many are not experienced in finding out WHY their client is not making enough money.
Have you ever heard the phrase? “If the problem is what you thought it was, it would not be a problem.” What exactly does that mean? It means that asking the right questions will get you the right answers. Let’s look this over very carefully.
For example, let’s take a situation where the profits are down, and the sales are stable. What do you do first? Find out what changed? If you do not know what changed, you cannot put it back the way it was. Conversely if you know what changed you can use your experience to solve the problem and return to affluence.
The normal solution for a business, that is not making as much money as they were before, is to go to their banker and say, “I need money.” But this is not the solution. Find the answers by clicking on this link Read more…
About the Author:
Willard Michlin is a Certified Public Accountant (CPA #106752), Certified Fraud Examiner (CFE) and a Business Broker. He offers assistance in the key areas involved in the buying of a business; due diligence, review of financial reports and business valuation. He is an experienced, honest and trustworthy consultant. His goal is to watch your back. His due diligence clients are located all over the world. He has published many articles and is in demand as a public speaker. See other articles and information about his services at: www.evaluateabusiness.com.
You can call Willard and he will always answer your questions. He can be contacted at his Orange County, California
office by calling 805-428-2063.
Due Diligence Investigation: Just Call Me Sherlock
/in Due Diligence/by Willard MichlinWhen buying a business one has to see what is not on the financial documents that are provided by the seller. To do that you need to graduate the Sherlock Holmes College of Observation. Mr. Holmes was famous for seeing small clues that appeared to others to be meaningless. But in truth they were the keys to solving the case. Read more
Business Buying Horror Story: Dog Kennel – He Never Got His Questions Answered
/in Business Due Diligence Horror Stories/by Willard MichlinPet Business Due Diligence “Bill” and his family were looking for a dog kennel and went on to the internet and started looking at various “Businesses for Sale” web sites. He located a dog kennel for sale with real estate in another state. Bill and his family had experience with boarding animals so it seemed the perfect business.
Due Diligence Case Study: Poor Bookkeeping Leads to Confusion
/in Articles, Business Buying, Business Buying Troubleshooting, Due Diligence/by Willard MichlinThis is a true story of one of my due diligence assignments regarding a thief operating from within a tree trimming and landscaping company in Northern California.
Read more
Business Evaluation Pitfalls: How to Evaluate the True Worth of a Business: Sanity Check-Buying A Business
/in Business Valuation TIps, Due Diligence/by Willard MichlinGetting the True Value of a Business.
In the business broker community there is a review process that helps a buyer determine if a business purchase makes sense or not. This check can be done by a Fortune 500 company where everything is figured down to the penny and takes 1000 hours of research or it can be done by a small main street shop buyer who figures it out in one hour. Each item in this review process requires a decision. Read more
Buying a Business: Disasters When You Don’t Have Your Own Agent
/in Business Buying, Business Valuation TIps/by Willard MichlinShould you allow a Dual Agent or Get your own buyer’s Agent? A Changing, More Aggressive Business Buying Market
Yesterday, I was reviewing a buyer’s signed escrow instructions.
He came to me after signing the escrow instructions and purchase contract, as his agent had said he should. His agent said he needed to hire someone to do the due diligence after he opened escrow. When I read the escrow instructions, I was shocked.
Read more to see how it turned out.
Read more
How to start your own business & be successful
/in Business Buying/by Willard MichlinDo you want to start a business and be successful?
In the movie and play South Pacific there is a song called “Happy Talking.” The words to that song go something like this (feel free to sing along if you know the tune):
“Happy talk, keep talkin’ happy talk,
Talk about things you’d like to do.
You got to have a dream,
If you don’t have a dream,
How you gonna have a dream come true?”
Surveys of successful people have shown that the love of the work has been more important than the money.
Interestingly, that usually equates into success in the work of love, which is then followed by financial success. To find out more on how to succeed. Read more
Everything You Wanted To Know About Buying An Auto Body Shop
/in Articles, Business Buying/by Willard MichlinA body shop can be a great investment, if you are the right kind of buyer. Who is the right buyer? Let’s discuss that in detail. Here is what we will cover in detail.
Read more
5 Ways to Protect your Purchase Deposit from Theft
/in Business Buying, Due Diligence, Newsletters/by Willard MichlinWhenever you make an offer for a business and put down a deposit you are putting yourself at risk that it could be forfeited to the broker and/or seller. Here are a few things you can do to make sure that does not happen:
Business purchase deposit protection
Do You Know Why Your Business is Not Making Enough Money?
/in Articles/by Willard MichlinYour Company is capable of making money.
Occasionally a CPA will hear a complaint from their client that he is making so much money the government is getting rich off of him. CPAs and tax attorneys love this kind of client because this is what they are trained for. Save the client taxes. Unfortunately many are not experienced in finding out WHY their client is not making enough money.
Have you ever heard the phrase? “If the problem is what you thought it was, it would not be a problem.” What exactly does that mean? It means that asking the right questions will get you the right answers. Let’s look this over very carefully.
For example, let’s take a situation where the profits are down, and the sales are stable. What do you do first? Find out what changed? If you do not know what changed, you cannot put it back the way it was. Conversely if you know what changed you can use your experience to solve the problem and return to affluence.
The normal solution for a business, that is not making as much money as they were before, is to go to their banker and say, “I need money.” But this is not the solution. Find the answers by clicking on this link Read more…
About the Author:
Willard Michlin is a Certified Public Accountant (CPA #106752), Certified Fraud Examiner (CFE) and a Business Broker. He offers assistance in the key areas involved in the buying of a business; due diligence, review of financial reports and business valuation. He is an experienced, honest and trustworthy consultant. His goal is to watch your back. His due diligence clients are located all over the world. He has published many articles and is in demand as a public speaker. See other articles and information about his services at: www.evaluateabusiness.com.
You can call Willard and he will always answer your questions. He can be contacted at his Orange County, California
office by calling 805-428-2063.
Find Your Passion In Your Work When Buying A Business
/in Business Buying, Due Diligence/by Willard MichlinThe most common comments I hear from business buyers are “What is a good business to buy?
I am open to any business that can make me money” They also bring up this question whenever they find any company that looks interesting. “Is this a good industry to be in?” What they are not getting is that every industry is a great industry for the few doing well and a terrible industry for the rest of the world. I would say that 50% of all business owners just barely get by, 30% do average, and 20% of the business owners make a profit that they are proud of. It has nothing to do with what industry it is but everything to do with the management of the company.
So if it is all about the management, how do you know if you are going to be good top management material?
Well there are several things.
Let’s review some of those traits. Read more