What Is The Difference Between Margin And Markup In Finance?
When talking about finance and accounting, there are a variety of terms to keep in mind. One of those is the difference between margin and
Tim McLellan, CPA and partner at B2Bcfo.com recently posted a newsletter that talks about the changes that are going on in the marketplace, with respect to small businesses and the baby boomer population. Here is the article. Definitely worth a read.:
In 2012, the first wave of more that 66 million baby boomers become 65 years old and will begin to draw Social Security. By the end of 2012, 10,000 people a day will be turning 65 years old. Many of these baby boomers own their own Company. What will happen to these businesses as the owners continue to age?
Recently, Jerry Mills, the founder of B2B CFO®, was interviewed by Morningstar on this upcoming Small Business Tsunami See video here
Jerry noted that of the 12.5 million American businesses owned by baby-boomers it is estimated that 8.4 million of them will undergo some kind of significant ownership change. Other estimates say that most small business owners have 80 to 90% of their personal wealth tied up in their business. Those are staggering numbers.
So what is a business owner to do? The answer is to make a resolution. Resolve that you will position the business for sale long before you want or need to sell it. In his book, The Danger Zone, Jerry suggests you think like a buyer. Here’s how you do that:
When the day comes that you are negotiating with a potential buyer there are two additional things to remember. First, do your due diligence on that buyer to make sure they have the financial capacity to follow through on giving you the full value of your business. Second, do not become emotionally tied to your business or to your potential buyers. Step back and be objective. Listen to your advisors. That’s why you hired them!
A tsunami watch has been posted for American small business. Take precautions now to prevent financial injury when the wave comes crashing.
A B2B CFO® can help you survive the sale of your business. Putting all of the above processes in place is a 12 – 24 month process. The process needs to start well in advance of the date that you would like to sell your business.
Feel free to contact Tim and learn more about B2B CFO at 404-915-5539. B2B CFO works with the business owner to create financial and goal clarity. They try to understand the overall goals that their clients want to achieve, then help them create financial clarity to achieve those goals.
Aepiphanni Business Consulting: The Business Strategy People is an Atlanta, Georgia based Operations Management and Business Strategy Consulting Firm dedicated to serving the needs of small to medium sized business leaders. We help business leaders DESIGN| CREATE | BUILD extraordinary businesses. We support our clients with financial management, product and service production and delivery, outsourced services management, sales & marketing and business growth. We provide them with a number of flexible solutions to help them reach their goals.
Join us for a 30-minute complimentary Coffee & a Consult, to learn more about Aepiphanni and how we might help you move your company from existing to extraordinary.
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