Run it Ready to Exit | Business BeyonDIY | Episode 001

Business BeyonDIY | Tips for Buying & Selling Businesses

Inventory Transferability & Value | Run it Ready to Exit | Business BeyonDIY | Episode 006

If you’re running a product-based business you’re dealing with inventory. Inventory management has a direct impact on the profitability of our business.

How easy it is to transfer not only our physical inventory but the processes, sources, and relationships that power our inventory will have a direct impact on how the value a potential buyer will place on our business.

At first glance, you might think inventory is one of the easiest parts of a business to put a number on when you’re getting a business ready to exit.

Or is it?

Do you use the balance sheet value?
Maybe you should use the retail value?
What about the liquidation value?
Will the buyer be able to source material at the same cost?
How does shelf life impact the value of your inventory?
What resources are required to store it?

Maybe it isn’t as simple after all.

Even though it isn’t as straightforward as you might think at first, understanding the bigger picture of inventory can help you assign an accurate value to the inventory in a transaction.

More importantly when you’re running your business ‘ready to exit’ you can take a few key steps to make your own inventory management easier and provide evidence to your buyer that critical elements of inventory management are transferable to new ownership.

This reduces the short-term risk of supply/production interruptions during the transition between owners and provides confidence in the long-term availability of supply.

Today we'll talk about:
Inventory Value
Sourcing
Storage

Watch the livestream recording on YouTube: https://youtu.be/aVGaVm3YA9Q

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Let's Talk
https://b50p.info/stephens_calendar

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

enMarch 25, 2022

Resources
https://www.ibba.org/resource-center/glossary/#:~:text=Seller's%20Discretionary%20Earnings%20(SDE)and,Net%20are%20other%20terms%20used
https://www.investopedia.com/terms/e/ebitda.asp
https://corporatefinanceinstitute.com/resources/knowledge/finance/sellers-discretionary-earnings/
https://www.midstreet.com/blog/sellers-discretionary-earnings-explained-with-examples
https://www.benitago.com/the-exit/sde-meaning/
https://www.exitstrategiesgroup.com/understanding-sellers-discretionary-earnings

Valuing Your Business | Seller's Discretionary Earnings | Business BeyonDIY | Episode 005

Valuing Your Business | Seller's Discretionary Earnings

When it's time to value your business it can quickly seem overwhelming.

It doesn't have to be!

There are a number of standard valuation methods that are used and in this episode, we'll go through one of them called 'Seller's Discretionary Earnings' or SDE.

We'll talk about:
1. What are Seller’s Discretionary Earnings?
2. When the Seller's Discretionary Earnings method should be used.
3. How SDE is calculated - with two examples.
4. Resources available to help you DIY.

Download the sample worksheet: https://b50p.info/valuation-calculator

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Let's Talk
https://b50p.info/stephens_calendar

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Business BeyonDIY | Tips for Buying & Selling Businesses

enMarch 20, 2022

Business BeyonDIY | Tips for Buying & Selling Businesses

3 Warning Signs for Business Buyers | Business BeyonDIY | Episode 004

There are no absolutes when it comes to ‘warning signs’ and just because a warning sign exists doesn’t mean there is a substantive problem with a deal.

Warning signs are merely what I call notifications for specific due diligence.

You may see warning signs in the initial numbers, the shared business plan, or other documentation. It is equally valid to explore warning signs that you just sense. If something feels off to you, explore that feeling enough to find verifiable ways to either confirm or disprove the concern.

Today we’ll cover three specific warning signs to watch out for.

Reason for Selling
Price vs. Value Proposition
3rd Party Anxiety

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

enMarch 10, 2022

Business BeyonDIY | Tips for Buying & Selling Businesses

3 First Steps to Sell Your Business | Business BeyonDIY | Episode 003

Get off to a good start when you’re ready to sell your business by putting these three things in place as early as possible.

I know you’re thinking about how much you’ll get. You might even be working on the project that you want to start after the sale, whether that’s your next venture, a long vacation, or retirement.

Bear with me though, it will be worth it.

While these are key elements of a successful sale, they are for you not necessarily for sharing. That means the format and formality can be whatever you need them to be.

Let’s get started:

Explain why you’re selling.
Establish your timeline.
Get your business ready to sell.

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

enMarch 03, 2022

Business BeyonDIY | Tips for Buying & Selling Businesses

Why Ask Why? | Business BeyonDIY | Episode 002

Why are you are buying a business?

There’s no wrong answer but understanding YOUR answer matters!

In some circles, the word ‘why’ is avoided and there are some good reasons for that. It can be off-putting and tends to put us on the defensive as we try to rationalize our position on a subject.

“Why did you do that?”
“Why is that important?”

So, it makes sense that “Why are you buying a business?” might immediately make us uncomfortable.

Answering this question isn’t about justification or defense.
It isn’t about defending your position.

It isn’t even about answering someone else who might pose the question to you.

It’s all about you and understanding what’s driving you to take the entrepreneurial leap.

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

enFebruary 24, 2022

Run it Ready to Exit | Business BeyonDIY | Episode 001

Q: How do you get the best value out of your business when you’re ready to exit?
Q: How do you get the best value out of your business while you’re still running it?

A: Good News! We can use the same work to meet both outcomes!

As entrepreneurs & business owners, it’s easy to get wrapped up in the doing. This puts both the day-to-day operational performance and our long-term value generation (exit value) out of focus.

Set aside the day-to-day operation and there are two values that may seem more abstract. You know they’re important but the operations side of things always seems to pull you away.

Value During Ownership
Value on Exit

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Business BeyonDIY | Tips for Buying & Selling Businesses

enFebruary 17, 2022

Introducing Business BeyonDIY | Business BeyonDIY | Episode 000

Introducing our new show "Business BeyonDIY"!

Buy a Business
Sell Your Business
Get your business ready for sale!

I'll be covering topics relating to the transfer of business value so if you're thinking of buying a business, selling one or have one that you want to prepare for sale in the future... you're in the right place!

Contact
stephen.krausse@b50p.com
https://beyond50percent.com

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

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Business BeyonDIY | Tips for Buying & Selling Businesses

enFebruary 10, 2022