Dec 29
Everywhere you look people are talking about layoffs, bailouts, and the horrible economy that we are in. Is this going to stop?
The bigger question is whether the bailout proposals are going to work?!
For that we put up a blog, for regular people like you and I to put up our opinions on this bailout situation – www.bailoutopinion.com.
Take a look at www.bailoutopinion.com and put up your story, let’s see if we have similar views or not.
Just this morning I heard that Best Buy is offering buyout settlements to their employees.
Best Buy? What? How is the electronics retailer king being hit as bad as the auto industry, what in the world is happening?!
GM and Ford are not getting what they want, and are we officially done with the $700 billion and Citi Group?
I don’t know about everyone else, but my head is spinning with the amount of bailouts that are going on. Auto industry, California, small businesses, big businesses, banks, and more to come I’m sure. The worst thing is that this is the holiday season and people are being laid off.
Solutions….let’s talk about what can be done – will Obama pull off the next FDR? We all hope so, and now more than ever he has everyones support – just solve the problem!
From a small business owners point of view, small business financing is essential. Smaller banks and other lending institutions are still out to do business financing, some confidence needs to be reinstilled back into the small business owners. The real uncertainty is with the consumers, will anyone start spending and stop worrying? 2009 is not looking to be a great year, but if we all gain some confidence and get back to borrowing and spending things should pick back up, right? Stay tuned.
Sincerely,
Ilya Bodner
Small Business Owner
Initial Underwriting Group
By: Ilya Bodner
Tagged with: Auto Industry • Bailout • Best Buy • Bodner • Citi Group • Confidence • Fdr • Gm • Holiday Season • Industry California • Layoffs • Lending Institutions • Point Of View • Proposals • Small Business Financing • Small Business Owner • Small Business Owners • Small Businesses • Uncertainty • Underwriting Group
Oct 13
Accounting is considered the necessary evil for most business owners. Understanding small business finance is a must for any entrepreneur especially one at the helm of a enterprise running full steam ahead.
More importantly, if you expect to get top dollar for your business when it’s time to sell, you need to stay on top of your accounting.
Any business broker can tell you that probably one of the biggest reasons a business will not sell is because their accounting is a mess.
Good accounting and keeping clean books will help prove to a buyer that you are telling the truth about your businesses financial claims.
If a seller claims to gross $500,000 in sales and has no real internal bookkeeping and his tax returns only show $300,000 – the buyer will not have confidence.
If the buyer is savvy and already has the background in your particular industry you’ll get an offer – but a substantially lower one. Low-Ball.
The fact of the matter is that the overwhelming majority of buyers are first-time buyers.
They are people leaving Corporate America due to layoffs, retiring, or just plain looking for something new. First-time buyers will have more hesitation paying fair-market value for a business that cannot back up its claims.
A business that can show most or all of their gross sales on their tax returns stands a much better chance of selling at a good price.
One way of looking at it is: businesses that do not report a healthy portion of their sales are “stripping value” as they are operated. On the other hand, when reporting more income on the tax returns, the business will receive more value later when it sells.
If your serious about selling your business some day, a couple of suggestions are to brush up on your small business finance and incorporate better accounting methods or consider hiring a bookkeeper or an accountant put your finances on system.
The other suggestion is simply to report more income. If you’re worried about higher taxes, talk with a competent small business accountant about taking advantage of all the available write-offs and tax laws.
This way, when the time comes to sell, you command a higher asking price and reduce your likelihood of qualified buyers losing confidence in you and your business.
By: Jason L. Pittman
Tagged with: Accounting Methods • Better Chance • Bookkeeper • Bookkeeping • Business Accounting • Business Broker • Fact Of The Matter • First Time Buyers • Gross Sales • Hesitation • Layoffs • Leaving Corporate America • Necessary Evil • Overwhelming Majority • Selling A Business • Selling Your Business • Small Business Finance • Tax Returns • Telling The Truth • Top Dollar
