Many companies operate under the assumption that there is no limit to growth, as long as sales continue to increase. However, growth can easily exceed a company’s financial resources and jeopardize the overall health of the business. The key is to determine an affordable growth rate.
Having a buy-sell agreement assures the departing owner (or the family) that there is a guaranteed buyer who will buy the business at a fair price. The buying shareholders benefit because the agreement enables them to continue the business without having to negotiate with outside parties.
In an increasingly rare example of bipartisan cooperation, President Donald Trump on Aug. 13 signed a defense bill into law that included a popular provision that allows the Small Business Administration to straightforwardly loan money to employee-owned businesses that wish to buy out retiring small business owners.
Going green is good for your employees, your customers, and your community. With these small changes, you can have a “big picture” impact. According to the U.S. Environmental Protection Agency (2012), if every home office purchased Energy Star qualified products this year, more than 900 million kWh of electricity would be saved. Now that’s good business!
Boosting profits and competitiveness by making continuous improvements in production costs, product quality, customer service, and delivery are the goals of the lean model. Companies that apply lean production or management techniques strive to create a culture of waste reduction, ongoing improvement, and worker empowerment.
A business succession plan is a comprehensive look at the estate planning picture that can include everything from shareholder buy-sell agreements to management plans, and any other documentation that will help ensure the smooth operation of the business. While traditional estate plans are designed with tax minimization in mind, business succession planning, in addition to such considerations, is aimed at maintaining the future health of the business.
If you wish your business to continue—and thrive—after you are gone, consider taking the time now to create a business succession plan.
Some entrepreneurs who have tried cold calling in the past refuse to try again because of the high frustration levels. But as in learning any skill, practice can make you a better cold caller. Trial and error can help you discover what approaches work best for you. If you are reluctant, consider hiring a professional agency to make cold calls on your behalf. Listening in can be instructive and may give you the confidence to start making calls yourself. Above all, maintain a positive attitude and a belief in your ability to meet the needs of the person on the other end of the line.
When successful small businesses attempt to expand too rapidly, they can fail. Slow, steady growth can help a company retain its uniqueness, responsiveness, and creativity. By cultivating a small business edge, you can find your niche in the marketplace, create the potential for growth, and build a solid foundation for sustainability.
