Steve: One of Our Contractors Wants Out of The Business and Has Offered Us Equity In Exchange for An Employment Contract. Is This A Good Deal?
Posted by steve on Apr 2, 2008
However, the approach to answering this question is the same as if you were acquiring a business. In summary - you need to complete the same level of due diligence you would complete in the purchase of a company. The due diligence includes the evaluation of the company’s financial strength, expected continuation of revenue and profit trends, how this business will be integrated with yours and most importantly, does your management team have the time and skills to integrate and manage this new business.
My answer is an overview. As discussed the first step is to obtain detailed information on business performance which goes way beyond standard financial statements and tax returns.
Shameless plug: you will need an outside consulting expert to help you.
Be Well and Prosper,
Steve Pohlit
Business Development Consulting
Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve consults with clients to design and implement processes that will deliver improved business performance for the long term. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting 10 Minute MBA or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant
What Is the Key Indicator of Business Strength or Weakness?
Posted by steve on Apr 2, 2008
My business development consulting practice is clearly focused on a company’s cash and liquidity trends as they will almost always tell you the strength of business. I spend a substantial amount of time on an effective technique I use with every consulting client that is detailed in the free course you can register for below. Candidly seeing how this works I can’t imagine why every business isn’t using it.
Be Well and Prosper,
Steve Pohlit
Business Development Consulting
Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve consults with clients to design and implement processes that will deliver improved business performance for the long term. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting 10 Minute MBA or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant
What Is The Single Biggest Reason Companies Fail?
Posted by steve on Apr 2, 2008
Once a company is out of business, I can only guess as to what happened. Reports in the news, from former employees and companies that did business with the failed business do not provide the true picture. Based on my experience in strengthening business performance by working closely with the people who run companies, the number one issue is that business leaders of underperforming companies have never really been taught how to manage a company for consistent profit.
Every business will run into some level of difficulty at some point. The smart business people know that often they are too close to the details of an issue or the people to really see all the opportunities for improving the situation and so they ask for help.
Be Well and Prosper,
Steve Pohlit
Business Development Consulting
Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve consults with clients to design and implement processes that will deliver improved business performance for the long term. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting 10 Minute MBA or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant
Great Question Posed To Joel Comm On What Resources To Subscribe To - Not So Great Advice From Joel
Posted by steve on Mar 8, 2008
If you do not know Joel Comm, just type Joel Comm into your search screen and you will soon learn Joel is known for his work on Adsense and has now expanded his reach so as to not place the destiny of his business in one business model.
One of Joel newsletter subscribers recently asked advice on what newsletters he recommended. Joel produced a You Tube video to answer this question. First I love videos but I don’t want to watch one for an answer I can get in print in about 15 seconds. If you want to use video for a question and answer format then provide both print and video options.Joel’s response to this question was to pay attention to what you feel is valuable and then stay subscribed to those newsletters. My view is that this is incomplete advice. I recommend you seek out the clear experts in your field of interest and subscribe to their newsletters. All they write about may not be of immediate interest and value to you. However, I am confident their material will have long term value for your.
There are a lot of people I pay attention do but only a few who have a big impact on me long term. I suspect you will discover this is true for you as well.
I welcome your comment.
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Your expert business consultant is Steve Pohlit with more than 20 years experience helping companies with annual sales volumes ranging from $5 mil to over $10 billion improve business performance. Steve is the author of The 10 Minute MBA and is currently integrating his work with The Prosperity Now Program into all of his consulting engagements.