sales Archives - Your ExitMap

EBITDAC : What is Your Business Worth Now?

John F. Dini — Mon, 20 Apr 2020 17:14:50 +0000

Several friends have sent me a picture of an EBITDAC coffee mug this week. As it states, EBITDAC stands for Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus. Will this be the new measure of cash flow for valuing your business? A bleak joke, but one that is on the minds of many business owners, especially Baby Boomers in their late 50s and 60s. Many were postponing their exit planning because business has been so good. As one client told me, “In March we had the best year in the history of my company. It looks like April might be the worst.” Downturns aren’t new, ... Read more

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The Nimble Small Business

John F. Dini — Sun, 23 Jul 2017 10:34:50 +0000

Almost since time began, the nimble small business has been axiomatic. Large corporations are like big ships, the common knowledge goes. They take a long time to change direction. That is a comforting thought to business owners who choose to see their one-person strategic planning team as a competitive advantage. Like the small furry mammals that survived as the dinosaurs died out, they are adaptable. The nimble small business can react to changes in the market faster, with less bureaucracy, and with greater attention to the customer’s needs. There is one problem. That “common knowledge” is no longer true. In fact, a new definition of nimble is ... Read more

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Stop Managing

John F. Dini — Sun, 29 Jan 2017 17:39:52 +0000

Why would anyone advise business owners to stop managing? Management is a proven science. From the time and motion studies of Frederick Winslow Taylor in the late 1800s, to Matthew Kelly and Patrick Lencione’s Dream Manager, we are constantly in search of ways to make employees more effective. Management trends (some say “fads”) come and go. Wikipedia lists a number of major theories since the 1950s, including Management by Objectives, Matrix Management, Theory Z, One-minute Management, Management by wandering around, Total Quality Management, Business process reengineering, Delayering, Empowerment, 360-degree feedback, Re-engineering and Teamwork. You could probably throw in a couple of offshoots like ISO 9000, Open Book ... Read more

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Good Customers Can Be Bad

John F. Dini — Sun, 21 Aug 2016 15:35:04 +0000

When can good customers be bad? What could be wrong with a customer who buys a lot, pays promptly, and never has a service problem? They might be buying too much. No matter how strong or comfortable a sales relationship is, it could end. You may be confident that the customer is yours for life, but therein lies the problem. Someone who buys the business doesn’t have the same level of confidence that the customer will be around for a whole new ownership lifetime. Many mid-market companies rode one horse to success. There were bringing in a few million dollars in revenue when the landed “the big one.” ... Read more

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What is the Right Price?

John F. Dini — Sun, 20 Mar 2016 14:38:14 +0000

Of all the misconceptions by business owners, the ones surrounding their company’s value are both the most common and often wildly inaccurate. I’ve been working for the last couple of months on the training videos for advisors in our new product, The ExitMap®. (You can take the assessment for free at www.myexitmap.com). In one session, we role-play a vignette about a financial planner discussing the value of a business with a client planning retirement. Part of it goes something like this. Q: “So Bob, how much do you expect to realize from your business when you sell it?” A: “I’ve heard from my accountant that most small businesses sell ... Read more

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Small Business can Sell in a Recession

John F. Dini — Thu, 16 Apr 2009 06:53:00 +0000

This was an article I had published in the San Antonio Express News yesterday. Guest Voices: Small businesses can sell in recession Many business owners think that the current recession has ruined their exit strategy. While the climate may be more daunting for budding entrepreneurs, there are still plenty of buyers around for small businesses. For Main Street businesses (those selling for less than $3 million), buyers chiefly are driven by personal economics. They are seeking a business as a way to make a living. Their main objective is cash flow, the amount of discretionary income the business generates to cover bank debt and an ... Read more

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