Business Education

Should I Sell My Business During the Downturn or Wait until the Economy Rebounds

If you run a successful business — and have for many years — it’s understandable that during such an uncertain time as there is now, you might consider just getting out. This is particularly true for individuals who’ve enjoyed a good amount of success but just don’t want to go through another cycle that again puts them emotionally through the wringer. However, because of all of that’s going on in the economy, with things largely down, is it best to sell now or wait until the economy recovers?

The Downsides of Selling During a Recession

That’s really the million-dollar question. Of course, a recession will naturally be a more tough environment in which to sell. There will be fewer buyers available as small business credit tightens and even larger organizations avoid potential risk. So, you’ll probably find it a bit challenging to find a suitable buyer.

The Great Recession ended in 2009 and impacted the lives of many. Now as the economy appears to be headed into another downturn, it’s a good time to review how to take advantage of the recession instead of letting it take advantage of you. —Investopedia

Then, there’s another fairly obvious factor — will your business bring the amount you expect? Put another way, can you sell it for the same amount or near the same amount you would be able to during normal economic times? Also, how do you effectively market your business in order to attract the right type of buyer? (This is where an experienced business consultant/coach would come in very handy.)

The Advantages of Selling During a Recession

Conversely, there are some distinct advantages to selling during an economic downturn. Here are some benefits you should know about:

You might be able to leverage a slight discount. Okay, so that’s probably not what you want to hear, but this doesn’t mean giving your company away for an undervalued, low-ball price. What it does mean is being able to attract qualified buyers with the promise of a fair deal. By taking this approach, you may be able to sell it faster and move on to something else, or perhaps retire, in a shorter period of time.
You can separate out time-wasters from serious buyers. This is something just about any business that’s for sale encounters. People who talk a good game but never really follow through and actually take action. On the flip side, serious buyers will understand the overall economic circumstances. Therefore, they’ll be more sincere and eager to get the deal done. In other words, they’ll likely have their ducks in a row and be ready to proceed because they’re serious.
Remember that you’re in control. Very few business owners who decide to sell are completely comfortable with their decision. The majority will second-guess themselves over and over again, even after they go through with a transaction. The bottom line is, if you are able to get a fair price, it’s probably not worth risking waiting any longer, because the economic environment could worsen and that will most definitely hurt your chances of selling.

What other advice do you have? Please take a moment to share your thoughts and experiences by commenting and giving others valuable feedback!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

November 22, 2017 No Comments

Elon Musk and Richard Branson are two names which really stand out. And, both stand apart from other business leaders. When people hear their names, they probably think about their brands. But, people equally associate their personality traits. Most notably, both individuals are leaders. However, they’re not just leaders — they are bold leaders. Take this Cue from Elon Musk and Richard Branson You might not regard yourself as an Elon Musk or Richard Branson personality. But, that doesn’t mean you can’t be bold. Remember, taking chances and being bold doesn’t mean you’re without fear. Also, it doesn’t mean you can simply look past your blind spot. But, it does mean you have an untapped capacity to go forward confidently. People who choose to be bold are inspiring not just because they get big things accomplished, but because they also instigate growth, progress, and movement for themselves and others around them. Sadly, far more people wait for someone who is bold to lead the way, hoping somehow luck will shine success upon them. —Inc.com Now, you’ll always have insecurities. And, you’ll always have to deal with critics. So, there’s no reason not to act bold. Of course, it might feel unnatural at first and a few tries might totally be a necessity. That’s okay because you’ll have to develop this trait over time. The trick is to balance it with pragmatism. Just don’t let your fears get out of control or give into complacency. How to Be Bold in Business When you’re in business for yourself, no one else will muster the same passion. It’s become a bit of a cliché, although the underlying point remains true. You just need to stay positive and put your doubts in check. Here’s a few suggestions for how to be bold in business: Dream big. If you’re an entrepreneur, chances are good you already dream big. But, not all people who go into business for themselves are big dreamers. Some people don’t like to dream big because it overwhelms them. So, if this describes you, give yourself permission to dream big. You’ll discover more about what you want and what you can achieve. Stay focused. While dreaming big is a great motivator, it’s not a straightforward path to success. To get from A to B, you’ll need a plan of attack. Do this by focusing in on one goal at a time. Each should represent a step in the right direction toward your ultimate goal. Don’t be intimidated. It’s quite easy to feel intimidated when you’re starting out and there’s already another established company plowing ahead. That’s okay, that company didn’t start where they are now. Keep this in mind and you can avoid feeling intimidated by others. Remember achieved goals. Always take time to reflect on the obstacles you overcame. When you put these in perspective, you’ll feel more confident. And, you’ll also realize you do have what it takes to succeed in business. In what ways are you bold? Have you found other traits which make a great leader? How else do you deal with fear? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Tackling Irrational Fears. Effective Strategies for Entrepreneurs to Achieve Small Business Success

July 1, 2023 No Comments

Starting a small business is an exciting and challenging endeavor. Entrepreneurs often face numerous obstacles along their journey, and one significant hurdle is overcoming irrational fears that can hinder progress and success. These fears can stem from uncertainties, self-doubt, or the fear of failure. Tackling Irrational Fears: Effective Strategies for Entrepreneurs to Achieve Small Business Success The good news is that by employing effective strategies, entrepreneurs can confront and conquer their irrational fears, paving the way for their small businesses to thrive. So, let’s take a little time to explore some actionable strategies that entrepreneurs can utilize to tackle their fears head-on and achieve the success they desire. Identify and Acknowledge Fears The first step in overcoming irrational fears is to identify and acknowledge them. Take the time to reflect on your fears, noting specific triggers and patterns. This self-awareness will enable you to address them directly. Remember, fear is a natural human emotion, and everyone experiences it. By acknowledging your fears, you take the first step towards conquering them. Challenge Negative Thoughts Irrational fears often arise from negative thought patterns. Challenge these thoughts by examining their validity. Are your fears based on concrete evidence or mere speculation? Analyze the potential risks and rewards objectively. Reframe negative thoughts into positive ones, focusing on possibilities and opportunities. Embrace a growth mindset and replace self-limiting beliefs with empowering affirmations. Seek Support and Guidance Entrepreneurship can be a lonely journey, but you don’t have to face your fears alone. Surround yourself with a supportive network of mentors, peers, or fellow entrepreneurs who can offer guidance and encouragement. Share your fears with trusted individuals who can provide a fresh perspective or share their own experiences. Sometimes, simply talking about your fears can bring clarity and relief. Break Down Goals into Manageable Steps Feeling overwhelmed often fuels irrational fears. Combat this by breaking down your goals into small, manageable steps. By focusing on one step at a time, you create a sense of progress and accomplishment. Celebrate each milestone achieved, reinforcing positive emotions and building confidence. This incremental approach helps to dispel fears associated with the enormity of the task at hand. Embrace Continuous Learning One powerful way to combat irrational fears is through knowledge and education. Invest in your personal and professional development by attending workshops, seminars, or courses relevant to your industry. The more you learn, the more equipped you become to tackle challenges and make informed decisions. Expanding your knowledge base provides a solid foundation and boosts confidence in your abilities. Take Calculated Risks Entrepreneurship inherently involves taking risks. However, calculated risks are essential for growth and success. Analyze each potential risk carefully, considering the potential rewards and consequences. Develop contingency plans to mitigate potential pitfalls. By approaching risks methodically, you can alleviate irrational fears associated with uncertainty, enabling you to make informed decisions with confidence. Celebrate and Learn from Failure Failure is an integral part of the entrepreneurial journey. Rather than fearing it, reframe failure as an opportunity for growth. Embrace a mindset that sees failure as a stepping stone toward success. Analyze each failure objectively, extracting valuable lessons and adjusting your strategies accordingly. By celebrating your resilience and learning from setbacks, you will develop a greater sense of fearlessness. Lastly, be sure to practice self-care. Entrepreneurship can be demanding and stressful, making self-care crucial for maintaining a healthy mindset. Prioritize activities that promote mental and physical well-being, such as exercise, meditation, adequate sleep, and hobbies. Taking care of yourself strengthens your ability to cope with fears, enhancing your overall resilience and decision-making abilities. The Take-Away Conquering irrational fears is a vital component of entrepreneurial success. By identifying fears, challenging negative thoughts, seeking support, breaking down goals, embracing continuous learning, taking calculated risks, celebrating failure, and practicing self-care, entrepreneurs can effectively tackle their fears. Remember, fear is a natural part of the journey, but it should never hinder progress or define the outcome. With determination, perseverance, and the implementation of these strategies, entrepreneurs can overcome their irrational fears and pave the way for their small businesses to achieve great success. Are you interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

How to Fire a Family Member You Hired to Work for Your Small Business

January 1, 2022 No Comments

How do you fire a family member you hired to work in your small business? It’s a very complicated and stressful situation. You hired your brother-in-law, your cousin, nephew, niece, sister-in-law, or even a sibling. And, you probably did so with a lot of enthusiasm. But, it’s been in one unmitigated disaster after another. He or she just isn’t up to the job. Now, it’s come to the point where it’s hurting your business and you can’t continue on any longer. Fortunately, there are ways to break the bad news. Read on to learn about some of the best ways to fire a family member from a small business. Training versus Termination If you have given him or her more direction and a little extra attention, that might have been insufficient. It could be that he or she needs a lot more in order to really be an asset. So, the first step to take is to try and fix what’s broken. Make a prioritized list of what isn’t working and address those things first. Then, mentor him or her according to that list, going one by one. Many entrepreneurs take pride in their ability to provide jobs for their family members, but it can turn sour quickly when the family member doesn’t perform well. Subsequently, firing a family member can cause a rift between the entrepreneur and relatives who are close to the fired family member. And the entrepreneur may feel guilty if the family member can’t readily find work. —The Business Journals If this isn’t really applicable to your circumstances, consider moving him or her into a different position. Sometimes, people seem like a really good fit for a particular role and simply can’t do the job up to expectations. This might not even be his or her fault, so turn it into an opportunity to reassign him or her to a position where he or she can thrive. If these two strategies will not work or fail to produce any results, you will have to face the unenviable task of terminating him or her. Most Effective Strategies for Letting a Family Member Go from a Family Business Sadly, not every situation will work out as envisioned or intended. Sometimes, it’s just the wrong person for the job and there’s no changing the fact that you cannot pound a square peg into a round hole. Here’s some advice about how to fire a family member from a small business: Be prepared to break the bad news in an appropriate way. Even if this person is driving you crazy, don’t let anger be the emotion that causes you to lose control. First off, you’ll probably say something you’ll regret, and moreover, you might come off so angry that he or she will think you were just incensed and letting off steam. Take some time to reflect on what has occurred and make notes if necessary. Choose the right time and place. The most tactful way to engage is away from the workplace but in private. If you do this at your place of business, there’s too much potential for things to go wrong and become an embarrassing situation in front of your employees. It’s best to have the discussion somewhere else than your business — like a neutral, public place — perhaps a restaurant or park. Be honest but empathetic. You need to be straightforward with him or her but don’t make a big speech. Instead, be brief and direct but empathetic at the same time. Then, give him or her a chance to talk and don’t interrupt. If necessary, repeat your points but don’t belabor them. Remain emphatic and stay courteous. It’s very likely that he or she will push back hard and that may cause you to recant. If you begin to feel guilty, that’s a normal emotion. Try to stay pragmatic and be emphatic yet courteous. Don’t let him or her guilt you into making another bad decision. What other advice would you give people facing the unpleasant prospect of having to fire a family member from a small business? Please share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.