Category Archives: Small Business Finances

Financial matters for small business

Is Bad Debt Destroying Your Business?

Don’t look to our government as a model in understanding good vs. bad debt. Every day the media highlights another case of the government’s ignorance in the way money should be used. One side of the aisle says it is a revenue problem and we need to raise taxes on the rich. The other side says it is an [...]

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The Feeble Role of Government to Stimulate Small Business

The news is filled with quotes from government officials exposing the critical role small business play in our economy. Articles talk about the billions in government dollars directed toward supporting small businesses. However, before you stake your claim on these funds, you should understand the assumptions the government has about small business. Having made several trips to Washington D.C. to advocate [...]

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A Step by Step Guide to Business Financing

Several weeks ago, Sara Pope of ConsumerAffairs.com, reached out to me and asked if I could review a step by step guide to business loans and financing that her company had produced. My initial reaction was to just say no. My inclination to decline her offer was based on my experience with hundreds of nascent entrepreneurs. All too often, my first [...]

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Using Microeconomics to Maximize Revenue

As a small business, you have to consider the concept of microeconomics when pricing your product or service to maximize revenue. By definition, microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources (i.e., money). Contrast microeconomics with macroeconomics. Macroeconomics considers the the sum of all economic activity such as dealing with the [...]

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Selling a Business – What to Expect During Due Diligence

When I sold my first company, I got a call from my business broker just before I was packing up to go home one night. He said that there was some interest in my business by a potential out-of-state buyer. He added they were a publicly traded company and wanted to fly out a team to conduct their [...]

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Allocation of Sales Price Governs Tax Consequences

Once you agree on a final price for the business, the seller and buyer must agree to what portion of the purchase price applies to the tangible assets vs. intangible assets (e.g., goodwill). The allocation of the purchase price will dictate what portion of the sale price the seller can treat as capital gains vs. ordinary income tax. [...]

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Forms of M&A Payments

Most buyers and sellers just assume that when you buy or sell a business you pay cash. While cash may be a component in the sales price, generally a business sale is never an all cash deal. Often, there are secured notes and/or unsecured notes that the seller my extend to the buyer. Of course, a secured note [...]

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5 Reasons for a Business Valuation

There are many reasons to conduct a business valuation. Some valuations are pretty straight forward while others can be quite complicated. If there is a good possibility that the valuation will be challenged on legal grounds or by the IRS, it is often best to have the valuation performed by a qualified appraiser. That said, I have counseled scores of [...]

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Crowdfunding – Campaign Follow-up

Assuming you have met your funding goals, now the work really begins. However, be sure to thank your backers even if your funding goals are not met. Remember it is about community and you may need them in the future. If you ran a reward-based campaign, you made many reward promises. You should be aware that if you do not [...]

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Crowdfunding – Campaign Execution

Most campaigns run 4 to 6 weeks, long enough to gain enough traction, but short enough to maintain a sense of urgency. Most campaigns see a flurry of support at the start as the backers and influencers you reached out to during the outreach phase make their pledges. Also, there typically is a flurry of support near the end of [...]

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