BUSINESS INOVATE

BUSINESS INOVATE

When most people hear the thought of an Online Think Tank, they ponder all the online information flowing and how best to use it to solve problems. Indeed, this is part of an online think tank and the think tank itself uses the Internet for online meetings and discussions. However one should not be so naïve to consider only online sources as they seek to find bits and pieces of knowledge to help them in discovering the wisdom, knowledge or information needed to come to solutions to complex challenges.

Indeed, the Online Think Tank also goes thru books of all sorts in order to learn from the past, see what thinkers are saying in the present and what authors and writers or even experts in their field are saying about the future. Do you remember when cable TV first came out and how everyone ended up paying $60 per month for something they thought would be free? Kind of reminds you of some other industries doesn't it? Well and interesting book on this subject and a somewhat scathing report is the "The Billionaire Shell Game - How Cable Baron John Malone and assorted corporate titans invented a future nobody wanted" by L.J. Davis 1998.

John Malone was the CEO behind TCI Cable Company, who announced that soon a 500 - channel Information Highway was to be the new media future paradigm. This statement was a bit forward looking at the time, yet it started a revolution in investments to the industry. Also conceived where "mirrors in the sky" or satellite cable channel relays, now we know such scenarios as companies like Direct TV and EchoStar and radio followed suit with Cirrus and XM Radio. It seems those previous events shaped what we have today.

On another Think Tank topic, "the middle east crisis" our Online Think Tank scoured books prior to the first Gulf War, only to find things have not changed much nor has the radical fundamentalism of religion that predicts a dire future that cometh. We read for a book review;

"Armageddon, Oil and the Middle East Crisis" by John F. Walvoord 1990.

It seems many believe we live in the end of times and the rapture cometh. Indeed, many on both sides of the Middle East VS. West believe this - Christians and Muslims. Does that mean they will make it a fulfilling prophesy? This book discusses Oil Blackmail, Religion, Claims to Jerusalem, and the whole ball of wax. Many of the very same issues today in the Middle East crisis stem from such beliefs and conflicts and the author says the final stage is set for Armageddon.

Of course, the biblical predictions are someone vague and general as to the month and year of the final conflict, nevertheless, it seems many on both sides are headed towards the eventual potentiality that they have chosen to believe. Today we have the international terrorist organization of Hezbollah, which is financed by the nation state of Iran, that promises to blow Israel off the map, if Iran has nuclear weapons can Israel survive the onslaught? Fear, often drives mankind to do hideous things.

Unfortunately the indoctrination of middle eastern international terrorism is unacceptable in today's world, thus it appears a preemptive strike must occur to prevent World War III. If we look at all the wars between the Arabs and Israel. It is obvious in hindsight, that nothing will ever change in the future, and perhaps there will never be complete peace. If there ever is peace. It is predicted that following the 17 year peace will be the Armageddon. If you believe any of this religious stuff, which many people do and you can see the incredible problems that lie ahead. Throw in a rogue nation state with nuclear weapons in the hands of a proxy international terrorist organization and it is clear, there can be no positive end result, said the Online Think Tank.

But not all of the world is evil, there are a lot of great things being done in the world. For instance, more and more people are volunteering to go on missions to four in Third World countries and assist the world's poorest people. Folks are building schools, sewer treatment plant's and assisting with microloans to start free enterprise and create jobs. Many medical professionals are taking time off and traveling on vacation on their own money to go on medical missions. The online think tank recently read the book; "Volunteer Vacations - Short-term Adventures that will benefit you and others" by Bill McMillion, Doug Crutchins and Anne Greissinger 2003.

We were amazed all that is going on in the world in a huge number of people who are giving and using their own money to travel to foreign lands. Simply to help others and there are hundreds of thousands of stories of people who have went on both religious and nonreligious missions to Africa or Central America are being enjoyed by Americans who wish to travel and visit far off lands and do good or volunteer while enjoying exotic lands. It is a fulfilling journey and considered a vacation by many. Please read the following;

http://www.charityguide.org/volunteer/vacations.htm

http://www.worldthinktank.net/pdfs/Honduras.pdf

http://www.worldthinktank.net/pdfs/Nairobi.pdf

One thing that we often say at The Online Think Tank is that there is nothing wrong with making a profit and free enterprise in the past has solved more problems at all the governments of the world put together. Free enterprise is brought people together in trade, and in understanding each other's culture and traditions, thus preventing wars and conflict. Of course, every great concept or entrepreneurial idea or invention needs marketing and a spokesperson. This is why the online think tank is constantly reviewing marketing books. This week our team read the following books:

1. "Infiltration Marketing - Achieve Astounding Sales Increases on a Very Low Budget by Entering Your Customer's World " by Don Debalak 2000.

2. "The Marketing Plan Workbook" by James C. Makens 1985.

3. "Start Your Own Business - A Beginner's Guide" by Vickie Reierson 1998.

4. "Total Marketing - Capturing Customers with Marketing Plans That Work." Published by Dow Jones Erwin, 1989.

5. "How to Bring a Product to Market for Less Than $5,000." Published by John Wiley, 1991.

6. "Marketing Magic" by Bob Adams, 1994.

7. "Entrepreneur Magazine - Bringing Your Product to Market." By John Wiley publishing, 1997.

8. "Street Wise Marketing Plan." By Adams Media Corp. 2000.

Indeed, the Online Think Tank recommends all these books to someone who is truly interested in promoting their concept that will either help mankind or assist in a profitable product being brought to market, where the proceeds or some of them can be donated towards a noble and worthy common cause all of humankind.

Now let us discuss why we recommend these books, and let's start with the first three and list just some of the great advice that you will receive from reading them. In Infiltration Marketing -the book described how small companies and concepts can receive big results and either start trends or develop extremely strong brand names. In today's day and age. The Internet allows people to market, smaller ideas, much faster. The book describes infiltration marketing techniques and how to put it all together - and how it is not necessarily important to be first to market, but rather the best and the consumer's choice.

Becoming the market leader on a shoestring may seem impossible. However, there are many significant case studies in the current information age paradigm. That proves it is not only impossible is more likely that a small and agile company can be a larger more bureaucratic company to the punch. A small company can often piggyback on a larger company or on their supplier vendors. A smaller company is often much closer to the customer's mindset, and therefore can adapt quickly to changes in consumer buying behavior and received all the referrals and cross promotions needed to set a micro brand on a course for a new trend.

In my days developing my company, The Car Wash Guys, many of the techniques in this book, we used although this book had not been produced yet. And it would have been very interesting to have read this book prior to although a hard work and the school of hard knocks that we learned along the way. Creating a buzz and interest in a product or service is much easier in a defined local or regional niche or online with a specific group of customers in a social network situation. Infiltration marketing, discusses the psychological aspects of getting into your customer's mind, making your product or service fun and in becoming main topic at the family's dinner table. The Online Think Tank recommends reading Infiltration Marketing.

The Marketing Plan Workbook reads much like a textbook and will allow the reader to develop an operational marketing plan to get the ball rolling on a new product or service. It also discusses the need for upgrading and updating the marketing plan as a perpetual document, as the planning never stops due to new input from customers and modifications to the product changing the product's life cycle. The operational marketing plan should be a roadmap for management and should not be shown with anyone who is in a competitive business. And lastly, not to potential vendors of the company who may also supply the competition.

In writing a marketing plan is important to have accurate data, without such you cannot develop the strongest strategy. Using old data from past products may not always work, however, these might

be essential in estimating the potential customer base and developing a pro forma for sales. The marketing plan for a new product or service is as important as the business plan itself in the should be treated as such, for a business is worth nothing unless it is selling and making a profit.

In the book "Start Your Own Business - a Beginner's Guide" I personally noted that it was the same Publisher as my first authored book, Franchising 101. This book, however was listed in the Top 40 Small Business Books in Inc. Magazine and was considered a classic for small business start-ups.

In chapter 1 it discusses the legal requirements to start a business into the following chapters it discusses how to put together a management team, a business plan, a marketing plan, and such considerations as staffing, environmental regulations and whether or not you should start a business or buy a franchise. The online think tank recommends that anyone starting their own small business pick up a copy of this book.

Online think tanks are a source of virtual wisdom, and yet they draw their information from the real world. Online think tanks should not discriminate from the information they review or the thoughts that they invoke. The online world is a crazy place, and the real world is even crazier, and as we finish this online video segment, we would like to recommend one more book. So that you do not get too hung up on reality:

"The Big Book of Hell - A Cartoon Book" by Matt Groening

We thank you for joining us this evening, and wish you all the best and hope you will remember to think around the box and outside the box, even if you are all boxed in. This is Lance Winslow signing off, and thanks for listening.

BUSINESS INOVATE

Why do businesses fail? The Small Business Administration in 2004 (latest year for available date) identified the launch of 580,900 new employer businesses and the closing of 576,200. This report suggests that for every business failure another business took the chance to open and to fail.

Many business writers. business consultants and business coaches attribute business failure to a lack of strategic planning, a lack of leadership, a lack of vision, a lack of processes, the list is endless. Dan Kennedy, a renowned marketing and sales expert said "That there is no business success or failure, but rather people success and people failure." However, the problem with identifying one reason for business failure is the problem.

Businesses are complex by their very nature. To believe that only one factor will either make or break a business is foolhardy and contributes to the silo solution mentality. This approach is simply stated like this: If I fix this one problem, then everything else is OK.

Successful businesses harness what I call the dynamic forces of performance – strategic planning, execution and measurement. These forces, much like the forces in nature, act upon each performance field such as profitability, customer service, growth and innovation to name a few. When all 3 forces are in alignment, the field experiences tremendous energy and improved performance happens.

Processes help to unite the forces and close any performance gaps between the forces. People development process links strategic planning and execution. Many companies have great strategic planning capacity, but fail to execute or implement the performance change.

Even if strategic planning and execution are OK, sometimes measurement of the desired results is still lacking. A goal achievement process helps to bridge this gap.

Between measurement and planning is the process of quality. Reviewing the quality of the performance field helps to not only improve measurement, but establishes a high performance culture of continuous improvement.

All of these forces and processes operate within the eye of leadership. Effective leadership is necessary to manage each of the forces as well as the processes. If effective leadership is not present, then the forces fail to maximize their impact upon the field.

Take the time to look at the forces within your business along with the processes. Implement action where necessary so that you will be one of those businesses that will not fail.

Leanne Hoagland-Smith, M.S. is a business coach who specializes in strategic planning with offices near Chicago, IL and in Indianapolis, IN. She writes, speaks and coaches businesses along with individuals to quickly double results through the creation of executable strategic plans.

BUSINESS INOVATE

Would you like to join a Think Tank? If so, you must understand that wallowing in linear thought just will not cut it, you must be able to draw from all your education, observations, experiences and knowledge, call it blending if you will. Then you have to concentrate on the problem at hand, if you are to be any use to a Think Tank in solving the challenges of mankind, so let me give you a for instance of the serious issues that our society and the future of our Republic face. Not long ago the headlines read:

Math and Science and the Future of Our Republic - "As he prepared to go on a short vacation, President Bush said at a Thursday news conference that he'd signed legislation to spend $33.6 billion over the next three years to promote math and science skills and develop additional technology needed to compete in the global economy."

Obviously this is a needed expenditure, but if the schools are not working at maximum efficiency, will throwing more money at the problem really help? Many believe that our schools are drowning in political correctness; few could argue against that point, something must be done, as the average age of an aerospace engineer is 58.9 years old and they will be soon retiring and who is going to take their place? Well, whomever it turns out to be, those students have not entered college yet. Is it too late? It is never too late as they say, but still this is a crisis, just like the shortages of school-teachers, soldiers, nurses, truck drivers and auto-mechanics as well.

Okay, so there is a for instance of something a Think Tank must consider, now lets switch gears to a small business problem. A small business person has started a mobile auto-detailing business and hopes to use this to feed his family. What type of carpet shampoo should he be using? The Think Tank needs to be able to switch gears and the participants in the Think Tank need to down shift to tackle this problem:

Carpet Shampoo for Detailing - I really like Folex myself, although have found that it depends on the type of carpet shampoo'er, extractor or steam cleaner. Hot water 180 degree plus, steam or extractors that use cold water change the choice of which chemical you use. In thin carpets water volumes are less like on a Lear Jet, thus very little shampoo is recommended and low PSI with high suction rates, spot remover like Folex works best for this and for removing stains, also works well as an all-around.

Next, a Think Tank must continually have input from many sources and some must be fun or the thinking becomes a chore rather than a pleasure. So, we ask our membership to read:

"An Exaltation of Business and Finance" by James Lipton; and "The Megalomaniac Pleasure of Creation,” the Psychoanalyst Edmund Berger.

This helps get the juices flowing and takes the Think Tankers from technical solutions and overwhelming problems and puts them back into abstract thought with a sense of humor. Now they are ready to take in more input and discuss other books such as:

1. "Stealth Aircraft - Secrets of Future Airpower" by Bill Sweetman. This book is a brief history of former secret projects in stealth aircraft such as; Have Blue, XST, T.H.A.P., Maverick Stealth, Hughes HGM 65, F-19, A-12, Lockheed ATF KH-12 and the stealth cruise missile. Also discussed are enemy surface-to-air missiles such as the SA-10. Is this stealth technology, the ultimate in "The Fog of War?" After the Think Tank members complete this book they discuss ways to uncloak stealth aircraft and then re-design them to counter the new systems they had imagined. While that is still fresh in their brains, we switch to another topic, this time Economics.

2. "Economic Issues - Economic Perspective on the Internet" by Alan E. Weissman. July 2000. This is an excellent book, although Mr. Weissman missed a couple of Internet predictions and projections, as the Internet had over 10 billion pages when he believed it might only approach one billion. He also predicted the digital divide, which never really matured, and now we have programs such as One Laptop for Child. May be due to his book, and the promotion of this problem, or the fact that he create awareness helped prevent the digital divide calamity.

He also talked about the race to the bottom, which also never occurred. One of the issues we saw was the Federal Trade Commission attacked Microsoft and other online business is calling their tactics of bundling anti-competitive to justify their Microsoft case. Mr. Weissman also predicted that there would be collusion online due to price comparisons, and also believed that Metcalfe's Law would pervade the day in the value would be proportional to the square of the users.

He got the number of users wrong, and did not understand all that the Internet would become and on top of that, he called for Internet taxes to prevent our civilization from collapsing or the government from running out of money. This book was done as a project by the Federal Trade Commission and was not to be the leading authority on the future economics of the Internet and this just goes to show you how horrific, government reports can be and how wrong. Their predictions are.

We must be very careful to trust government reports done by those who proclaim themselves to be experts; this is one thing that a think tank needs to be cognizant of. A true of think tank must completely understand the issues, watch the trends and carefully sift through the data as to not make such silly mistakes.

Perhaps you can see the importance of being able to take information from all different sources, both current and past to put together the right answer, at the right time, and for the right reasons. Just because someone has a Ph.D. or is an expert in a specific industry does not mean that they are looking at the total picture. All data and information, and all your life experiences, observations, knowledge and education is all interrelated.

Just like all the challenges and problems of mankind are inter-related, and therefore these issues must be dealt with, knowing full well that every single decision you ever make will change something else. Once you master this concept, you should be able to prevent the unfortunate law of unintended consequences, as you reason through the toughest perils that face our species. Think on this.

BUSINESS INOVATE

The business plan is a foreign tool to most REALTORS®. After studying, observing, interviewing, and coaching hundreds of Agents, I have concluded that very few have taken the time to create a quality business plan. Fewer still review their business plan on a regular basis. The few who have good business plans often make them so complicated that they possess little value. Those Agents create such a complex business plan that they will never carry it out. What kind of value does this complex business plan have to them? . . . Zero!

A well-written, concise business plan can provide an exceptional road map to guide your quarter, year, or next five years. Most well-run companies have well-developed business plans. You, as an Agent, are the President of your own real estate sales company. You have to view yourself as the head of a corporation that needs direction, vision, and a well-conceived road map to follow. The business plan can provide all these tools that lead to success.

To create a quality business plan, you have to know where you are today - right now - in your business. You have to ask some basic questions about your business.

1. How much do I want to earn in gross commission?
2. Where does my business come from?
3. What is my average commission check?
4. What is my average cost per transaction?
5. How many days am I going to work this year?
6. How many hours per day am I going to work?
7. What things do I need to implement to take my business to the next level?

The best place to start is at the top. Ask yourself, "How much do I want to earn?" You can have total control of your income. You can make as much or as little as you desire. The only person or thing that determines your income is you. The market, other Agents, and other outside factors have very little control over your income. You alone have absolute and complete control.

Once you determine the amount you want to earn, break it down to quarterly, monthly, and weekly amounts. For example, if you decide to earn $500,000 next year, you need to earn $125,000 per quarter, $41,666 per month, or $9,615 per week. Secondly, you need to determine where your business comes from. Figure out the percentage of transactions that are done in every category. Let's say you closed seventy-five deals last year. The break down was thirty from referrals, fifteen from open houses, eighteen from sign calls, and twelve from expireds.

Here is the breakdown in percentages:

• 40% Referrals
• 24% Sign calls
• 20% Open houses
• 16% Expireds

You should also know the ratio or percentage of listings sold versus buyer controlled sales.

The next exercise is to determine your average commission check. Take your gross commission and divide by the number of transactions. For the purpose of our example, we will use $5,500 as the average commission check. You want to earn $500,000 next year. In order to do that, you divide $500,000 by $5,500 which equals 91 transactions. You will need to close an additional 16 transactions next year to reach your goal.

Then figure out the number of transactions you need in each category.

• 40% of 91 = 37 transactions from referrals
• 24% of 91 = 22 transactions from sign calls
• 20% of 91 = 18 transactions from open houses
• 15% of 91 = 14 transactions from expireds

You can break these numbers down to a quarterly, monthly, and weekly number of transactions from each category. This break down will give you a clear path to achieve your income goal. If you do the number of transactions you need weekly, by year's end, you will achieve your goal.

Then you need to break down each category of business: referrals, sign calls, open houses, and expireds. You need to figure out exactly what you need to do to create the results you desire. The further you can break your business down, the easier the overall goal is to achieve. It is easier to achieve your goals if you can break them down to daily activities. All you have to do is the daily activities to achieve the desired results.

Another important factor is profitability. You determine your profitability by subtracting your gross expenses from your gross commission dollar. The critical point is to not forget any of your expenses. Organize all of your expenses into categories such as automobile, staff, mailings, marketing, office supplies, etc. You are only fooling yourself if you are not accurate. Take your gross expenses and divide them by the number of transactions. For example, gross expenses of $95,000 / 75 = $1,267, which is what it costs you to close one transaction in our example. You can see how profitable you really are in your business if you follow this example.

To answer questions five and six, you need to address your work days and hours. You need to factor them in against the work that needs to be done. Then allocate the work that needs to be completed to the number of days worked. This process will give you a schedule of what needs to be accomplished daily.

The last section of a well-planned business plan is implementing new ideas or systems. Determine the weaknesses in your business and devise a plan to overcome them. Do not overdo in this area because, often, when Agents over implement, they slow their business down to a crawl. Since everyone is different and all staffs are different, a good rule of thumb is: Do not implement more than two major changes in a month. Determine what needs to be completed. Prioritize your list, and then devise a plan to implement changes at specific times.

A business plan can be the backbone of your successful business. The backbone will weaken if not checked on a regular basis. You must review your business plan daily for the first few months; then you will need to review it regularly after that. Do not make the mistake of writing a fantastic business plan and then never look at it again. That mistake would be almost as bad as if you had never written it in the first place.

Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate Champions. His company trains more than 250,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. He's the widely published author of Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Agent Team and over 300 articles in print.

BUSINESS INOVATE

Most problems small business owners face boil down to one common theme: Limited resources. Resources include time, money, and energy. How do you decide the best way to allocate your resources? How do you leverage limited financial resources to grow your business into a wildly successful business-one that runs itself and brings in income for you even when you're not there? How do you manage your staff and use their talents effectively in your business to maintain morale, increase productivity, and reduce turnover?

There are lots of strategies I share with my coaching clients to accomplish all of this. Ironically, the most effective strategy for addressing these tough questions is a strategy that most business owners overlook. Develop a clear vision for your business.

Without a clear vision for your business, you are groping around in the dark, making "hit or miss" decisions, often based on how you're feeling on a particular day, or based on problems that are presenting themselves on a particular day. Without a vision for your business, you really don't know where you are going in your business.

You may have heard the saying, "Start with the end in mind." That's exactly what a vision is. Your vision for your business is the end-how will your business look when it's done?

Often we think our business vision is clear until we share it with someone else. Then they ask questions, and we realize our vision is not as clear as we thought. Many business owners operate from a "fuzzy" vision-a vague idea of what we'd like our businesses to be. There's a temptation to keep that vision fuzzy because of a fear of committing to something and missing opportunities. But, there is tremendous power in committing to a vision and sticking with it.

Being clear about your business vision helps you make the daily choices that build a successful business. Here are some examples of what a clear vision can do for your business:

*Simplify Marketing. Knowing your vision for your business, including who your ideal customer is, is the most powerful marketing tool you can have. Once you know that, it is much easier to make choices about where to spend your marketing money and energy. Marketing can be amazingly inexpensive and easy when you focus your efforts based on your vision and your ideal customer. When your vision is clear, you find yourself attracting more qualified customers- people who are eager to do business with you because what you have to offer them is so enticing. Marketing becomes almost effortless. Your enthusiasm about your vision makes it so much easier to "toot your own horn." When you do that, you speak with clarity about what you have to offer and your ideal customers are naturally drawn to you.

*Improve Workplace Morale & Decrease Turnover. Think about your experiences as an employee. Have you ever worked for a business where you knew the vision for the business? Have you ever worked for a business with a vision that compelled you?

Usually, if a business has a vision statement, it's in an operations manual. You may see it when you initially start, but no one ever discusses it with you. No one ever shares their excitement for the vision with you. A clear business vision is one of those secret ingredients of highly successful businesses.

When you have a clear, compelling business vision, you don't keep it a secret. You talk about it at every opportunity. Your excitement is contagious and it comes through when you meet with prospective applicants.

A simple discussion about your business vision with an applicant is a very effective screening tool. You can gauge their reaction to your vision. You can tell right away when an applicant buys into your vision. That's someone you want to hire, even if they lack some of the skills you need. Skills are trainable. Passion and enthusiasm are not.

Your vision also gives your staff something to rally around. It builds cohesiveness and a team mentality-"we're all in this together...this is what we do here."

Your vision helps your staff to think independently and make decisions that support your business-not undermine it. Because your staff know what you are working toward, it is easier to trust them to make decisions when you are not there. All of a sudden, it feels easier to be away from your business.

As you can see from these examples, your vision for your business is tremendously important in developing a business that doesn't take up all of your time and energy, that is fun to work on, and that grows into something that supports you in the lifestyle you want to live.

It's ideal to develop your business vision at the beginning, before you do anything else to start your business, but the truth of the matter is that most of us don't. The good news is that it's never too late to work on the vision for your business. When you finally do this work, it is tremendously clarifying and powerful in shaping up your business, letting go of irrelevant tasks and energy drains, and bringing in better, more enjoyable business.

BUSINESS INOVATE

You, or someone very close to you, are part of 78 million Americans that make up the largest population segment in the United States: Baby Boomers. This generation is classified as anyone born between 1946 and 1964. According to a recent study by BIG Research, 9% of boomers with household incomes exceeding $50,000 are small business owners. Using simple math that means 7 million companies in the United States are owned by individuals 44 – 62 years old.

If you or a family member fall into this category (baby boomer business owner), what is your exit strategy with your business? Currently, 33% of business owners in America will successfully transfer their family business to the next generation (Family Firm Institute). If you fall into the majority of US business owners (67%), then your children (X & Y generations) have opted to not follow in your footsteps of taking over the family business, leaving you with significant, life shaping decisions.

It is safe to say that 5 million baby boom business owners do not have a son or daughter to take over their privately-held business. This massive group of societal leaders is now left with only a handful of options:

• Keep the business well into their retirement years, possibly leaving it to estate settlement proceedings
• Dissolve the business should competent leadership not be in place after retirement
• Sell the business to a qualified buyer and have financial stability for future retirement and heirs

Based on the financial burden Baby Boomers have from their children, parents and own personal lives, combined with the wave of owners reaching retirement sooner rather than later, we recommend the latter -- sell the business.

The Exit Planning Institute has projected that over the next 12-15 years, more than 8 million privately-held US companies will be sold. This is a tidal wave of “for sale” companies flooding the market place, primarily due to baby boomers seeking retirement. The sheer volume of companies for sale will inherently reduce purchase prices due to simple supply-demand economics; tipping the balance of available businesses for sale compared to capable, motivated business buyers. Trying to stand out in a crowd of sellers will be difficult due to a saturated marketplace of other baby boom-owned businesses. Those business owners that truly plan ahead and start executing their exit strategy today, can avoid a major dilemma and be prepared for the future (a flooded marketplace of similar companies for sale).

In order to start the process of planning the sale of your business, you first need to know what that business is worth. Determining the fair market value of your business can be an eye opening and empowering process. Seek out professional, independent expertise in order to conduct an accurate business valuation report. For the purpose of planning and determining fair market value, you should expect business valuation fees to range from $3,000 - $7,000, relative to the size and complexities of your small business operation. Once you have identified what the company is worth, you can then make decisions with confidence and choose your future path wisely. You will also be able to better understand value drivers specific to your type of business and industry. If the stars are aligned, you may wish to consider selling the business sooner rather than later. If the value is lower than you had expected, you can strategically grow and refine your business to increase value for your future exit. Timing is everything in the sale of a business.

Don’t try to go at it on your own as that can be a long, painstaking process filled with inaccuracies and frequent misses. Rely on trained professionals and advisors to guide you down the exit planning path and give yourself plenty of time to do it right. A typical exit advisory group could consist of an attorney, accountant, business appraiser, business intermediary/broker, and financial planner. For smaller businesses, a couple of these roles can be consolidated for cost efficiencies.

Now more than ever it is critical that baby boom business owners figure out where they stand so they can strategically navigate for the future. You may have heard the adage, how can you be lost if you do not know where you are going? Ask yourself where you want to end up in life, not just for yourself but your family. What new challenges or hobbies do you want to take on in the second half of your life? Can you afford to do these things? Determine your ideal destination and end result, then reverse engineer your path to reach those specific goals. For the retirement planning of a small business owner, the starting point in all of this should be a small business valuation. It takes years to build a successful business, don’t rush your exit. Know your value, know your business!