In response to the disruption to businesses from the coronavirus, we want to be able to provide resources to help small business owners during this time. If we can be of a resource, please do not hesitate to reach out and contact IBA with your questions about the impact of this current economic state and the businesses we represent.Read more
As Indiana Business Brokers, we see more often than not, that the largest asset business owners have is their business. Some may have as much as 90% of their net worth tied up in this illiquid asset. The majority haven’t saved adequately outside of their business. Which means that when it comes time to sell the business, they are financially dependent on it to fund the rest of their lives. But as with any investment, it’s extremely risky to put all your eggs in one basket.Read more
5 Reasons Why Your Business Is Too Dependent On You. If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of an organizational chart, or stuck in the middle of your business like a hub in a bicycle wheel? The Hub & Spoke model is a drive that shows how dependent your business is on you for survival. The Hub & Spoke model can only be as strong as the hub. The moment the hub feels overwhelmed, the entire system fails. Acquirers generally avoid these types of managed businesses because they understand the dangers of buying a company too dependent on the owner. Here’s a list of the 5 top warning signs that show your business could be too dependent on you.Read more
The One Number Owners Need to Stop Focusing On. If you’re spending too much time and effort on increasing your profit, you could find yourself diminishing the overall value of your business. The solution? Focus on driving your multiple (the other number in the equation above). Driving your multiple will ultimately help you grow your company value, improve your profit and redeem your freedom.Read more
Something most rags-to riches stories have in common is that a good budget is always needed to help anyone achieve financial security. If you want to significantly improve your credit, you have to learn how to pace your spending and increase your savings.