Sometimes it’s nice just to have an idea of what your business is worth… even if you don’t plan on selling it. Admittedly there is a nice feeling associated with seeing the equity value and saying “WOW, my business is worth $X (hopefully many more X’s). For that we have ‘rules of thumb’, which I am going to break down. #1 Your Business Is Worth a Multiple of Discretionary Earning. The valuation of small businesses that are established more than 5 years is heavily weighted on a multiple of their discretionary earnings. As a small

In 2012 I started a local home service business.  Over the next several years it grew pretty quickly to over 60 employees.   There was never an exit strategy or a plan, simply just grow as fast as I could while maximizing profitability.  I'm not one of those 'grow at any cost' kind of guys.  I believe in business fundamentals and that a business needs to produce cash... but that's a whole 'nother topic. After about 6 years I was ready for exit.  It was that time.  I felt that I had grown it as far

Did you know that companies in the U.S spend more than $100 billion on incentive programs annually? Spending is a crucial aspect because it allows them to motivate their employees. After all, a motivated employee means higher productivity and better business. Many organizations use the power of incentive pay to keep their employees happy and productive. If you are wondering what is incentive pay and how it works, you are in the right place. Here is your complete resource guide to incentive pay.   What Is Incentive Pay? As the name suggests, incentive pay is a financial performance

Considering a "PEO" for the Human Resources and payroll needs of your business?We'll break down PEO's, and how they could benefit your business in this pose.What is PEO?You might be wondering, “What does PEO stands for?” Or you’re simply asking “What is PEO?”  Well, it simply means Professional Employer Organization. It is a firm that goes into a relationship with an employer and outsourced its workers to the employer, and then manages and shares most of the employer's employee-related responsibilities. This joint-employment relationship allows employers to commit their operations to third parties. These human-resources operations include compensation and payroll administration, employee benefits, employment taxes, and

Workers’ compensation: it’s usually not a pleasant thing to talk about but it’s important to be informed just in case. Whether you’ve recently been injured at work, or a member of your family has, or even if you’re just wanting to educate yourself in case something goes wrong, it’s important to know. Filing a claim after something happens is one part of the equation, but you might be wondering “Who pays for workers’ compensation in the first place?”While it might seem like companies are just shelling out their own money when someone has an injury

As an entrepreneur or an employer, you need to familiarize yourself with many business terms and concepts. That is why it is crucial to know what does TTM mean, as it will help you with your business performance and finances. So, if you are wondering the meaning of TTM, you are in the right place.Here is everything you need to know about TTM.What Does TTM Mean?Trailing twelve months (TTM) refers to the past twelve consecutive months of an organization's performance data used to report financial figures. Remember that the twelve months here do not have

It’s absolutely vital that you appoint a General Manager within your small business who is up to the task. And in order to attract the best talent, you need to create a highly effective and attractive compensation strategy that covers all bases.  But what should you include in a compensation strategy for your GM? And how do you work out what’s fair and appropriate?  In this guide, we explain what you need to think about when developing a compensation strategy for the GM of your small business, so you’re in the best position to attract

When it comes to buying a business, people often think they have to complete the deal by using their own funds. While self-financing a business acquisition is undoubtedly a good option to those who can afford it, it’s by no means the only way to acquire the small business of your choice.In fact, as we introduce below, you don’t need to put your hand in your own pocket to buy a business. If you’re savvy, you can utilize one of several attractive financing options that minimize (or completely restrict) cash out of pocket when you’re buying