Is it Time to Sell Your Business or Buy a New One? |  |
- Is it Time to Sell Your Business or Buy a New One?
- Who’s the Boss: 9 Tips for Hiring C Level Talent
- 4 Cloud Storage Options for SMBs
- Facebook Fizzles on Wall Street, But Is Facebook Itself Still Worthwhile?
| Is it Time to Sell Your Business or Buy a New One? Posted: 23 May 2012 11:30 AM PDT Have you delayed retirement because the recession was preventing you from getting a fair price for the business you worked so hard to build? Have you been contemplating buying another business, but couldn't find the financing? Small business owners in both of these situations have a lot to be hopeful about if BizBuySell’s First Quarter 2012 Insight Report is any indication.
BizBuySell, an online marketplace for buyers and sellers of businesses, tracks business sales quarterly, and its latest report shows the number of businesses sold is continuing the steady rise begun in the third quarter of 2011. Almost 4 percent more businesses were sold in the first quarter of 2012 compared to the same period in 2011. What's more, the 1,729 businesses reported sold in the first quarter of 2012 represent the largest number of transactions since the fourth quarter of 2008, making it the most active quarter in more than three years. That sound like reason to celebrate, but there's some bad news, too (at least, if you're looking to sell your business): A major reason for the increase in business sales is that prices are dropping. The average sale price as a multiple of both revenue and cash flow decreased compared with the same period last year. In fact, the average sale price as a multiple of annual revenue fell over 10 percent to 0.59—the lowest it's been since the end of 2008. Of course, lower prices are good news if you're looking to buy a business. More good news for both buyers and sellers is that it's getting easier to finance the purchase. BizBuySell reports that there's been growing demand from people who are laid off and want to buy businesses instead of looking for jobs. However, until recently, those would-be buyers were stymied by the difficulty of getting financing. Now, banks are loosening the purse strings, and more business owners are able to offer seller financing, so buyers have a lot more options. The businesses up for sale are healthier overall, too. BizBuySell reports that the median revenue for businesses sold in the first quarter of 2012 increased from $346,000 to $360,000 compared to the same quarter last year. With many signs pointing to small business optimism, it's likely mHave you delayed retirement because the recession was preventing you from getting a fair price for the business you worked so hard to build? Have you been contemplating buying another business, but couldn't find the financing? Small business owners in both of these situations have a lot to be hopeful about if BizBuySell’s First Quarter 2012 Insight Report is any indication. If you're on the fence about selling your business, CNBC points out another factor that might convince you to make a move: The Bush tax cuts are set to expire at the end of this year. With these cuts' future uncertain, many business sellers seeking to avoid a possible increase in the capital gains tax are looking to exit their businesses before December 31, 2012. And if you want to do that, you'd best get started on the sale process soon before time runs out. Of course, you shouldn't let a deadline push you to sell your business before you're ready—but if you've been waiting to sell until you could get a better price, that time just might be now. More entrepreneurs will feel confident enough about their businesses' health to put them up for sale if they want to. Buy or Sell Photo via Shutterstock From Small Business Trends |
| Who’s the Boss: 9 Tips for Hiring C Level Talent Posted: 23 May 2012 08:30 AM PDT The process of filling entry-level positions is repetitive: screen applicants, sort through resumes, sit through interviews and select a lucky candidate to call your team their own. And though this new hire is vital to the company’s daily operations, it’s not the end of the world if it ends up being a bad fit — you simply part ways with the recently added employee, repost to the job boards once again and start the process from the beginning.
But looking to fill a seat in your company’s C-suite isn’t your average hiring process. The next “chief” of any of your departments will be making decisions that shape the current company culture and the future of your business. The repercussions of a bad C-level hire will spill over into every level below and can even turn off loyal clients and potential customers. We asked members of the Young Entrepreneur Council (YEC), an invitation only nonprofit organization comprised of the country's most promising young entrepreneurs, the following question to find out how they handle the high-level hiring process:
Here's what YEC community members had to say: 1. What’s in a Resume? “Intelligence, cultural fit, and an ability to work with the team are the most important factors that you should consider when interviewing C-level talent. Don't be dazzled by their accomplishments. A resume should be one of the last items that you look at.” ~ John Berkowitz, Yodle 2. Try Topgrading “Take your time and work through the Topgrading hiring process. We use it for all hires, but have found it gave us a great framework for evaluating all of the dimensions of pivotal C-level candidates.” ~ Nick Tarascio, Ventura Air Services 3. Ease the Transition “Integrating a C-level executive into an established corporate culture takes time and ongoing responsiveness. Create phases of transition for the executive to move into the role at a comfortable pace. Make yourself available to offer moral support and strategic guidance.” ~ Lisa Nicole Bell, Inspired Life Media Group 4. Remember, Success Is Subjective “Before you launch into the hiring process for C-level talent, make sure you articulate the metrics of success for the position. These benchmarks will help inform the candidates that you screen and the questions that you ask in the interview process. Ultimately, knowing the key success metrics will help the executive as well; they can better evaluate the job fit and will be more likely to succeed.” ~ Doreen Bloch, Poshly Inc. 5. Check Those References “Remember that executives will set the tone for the company. Don’t underestimate the recommendations given by references and be sure to actually check references. These are people that have worked next to the C-level candidate and can often shed light on important personality traits like how they respond to stress or friction in the workplace. Ask the provided references for additional referrals.” ~ John Hall, Digital Talent Agents 6. Don’t Forget the Fun “Hire people you like to be around more every time you meet with them. Startups require people to wear a lot of hats and interact with each other frequently. Don’t hire people who grate on your nerves, or you’ll feel like you can never get away from them.” ~ Brent Beshore, AdVentures 7. Involve Everyone “The success of a C-level employee hinges on buy-in from the entire team. Will they be able to trust and work with this person? Have team leads involved in each step of the interview process. Debrief regularly with everyone to hear their input and gauge their feelings. This will accelerate your efforts finding someone who meshes well with the organization, and adds to the established culture.” ~ Justin Beck, PerBlue 8. Don’t Be Fooled by Experience Alone “Be careful when hiring big wigs from large companies to sit in your chief seats. Individual success within those organizations is achieved by walking a different path than the one your startup is on. Look for someone with experience taking a company from where you are now to where you want to be, and then confirm that they share a belief and passion for your vision.” ~ Christopher Kelly, Sentry Centers 9. Where’s the Trust? “Only hire a C-level executive to whom you are 100 percent committed, and in whom you have the ultimate faith. These people must have autonomy to positively impact your company, so you must avoid conflicts of trust.” ~ Aaron Schwartz, Modify Watches
From Small Business Trends |
| 4 Cloud Storage Options for SMBs Posted: 23 May 2012 06:00 AM PDT As earlier predicted, cloud storage options are becoming increasingly popular, offering users the ability to access files and documents regardless of where they are in the world or what device they have in their hand. And with so many different services now available, I thought I'd share some of the most popular to help users and business owners decide which may be the best match for them.
Below are some of my personal favorites and options you may want to consider if you're thinking cloud storage may be right for your business: 1. Dropbox You'd be hard pressed to find anyone who doesn't love Dropbox. Like many of the other cloud storage options, Dropbox offers you the ability to store your files, documents, photos and videos in the cloud and keep them synced with your computer, phone, and online Dropbox account. What really stands out for me is the ease in which all of this happens. I can create a Dropbox folder, invite other people to it, and it's as if I've created that folder directly on their computer. Other sites many offer similar sharing options, but it's the simplicity of Dropbox that has made it such a crowd favorite. Dropbox offers tiered pricing plans which begin with a free 2GB option and extend all the way to a team pricing model offering 1TB of storage. If you've wanted to incorporate cloud storage into your business, but weren't sure how to get started, I'd recommend doing so with Dropbox. 2. SugarSync SugarSync is a great service for business owners who will be heavy on the file syncing. With SugarSync, you can backup, sync, access and share all your files on-the-go, instantly and securely from virtually any device. It learns the way that you organize your files and folders so that if you're working on a report from home, it will be synced and in the right folder when you head into the office tomorrow. For a frazzled SMB, that's a neat benefit. SugarSync also boasts a number of pretty intuitive features and value adds like robust file sharing capabilities, an admin dashboard, optional password protection, and integration with Microsoft Outlook to help business owners manage their businesses from where they are and do it securely. SugarSync offers a number of pricing plans for individual use, as well as a powerful small business option. 3. Bitcasa Bitcasa differs slightly from other cloud storage applications in that instead of copying your data to the cloud, Bitcasa gives you unlimited storage directly on your desktop by "cloudifying" that folder. Once you do, you'll be able to save as much data into that folder as you want. No external hard drives. No buying more storage space. Nothing. Also, when you share "cloudified" folders with team members (or, you know, family and friends), that folder will immediately appear on their desktop so that they'll have instant access to it. You don't have to wait for the whole folder to download. Sending large files is also now made a breeze, with SMBs being able to send terabytes of data by just right clicking any cloudified folder. Currently, users can only sign up for a private (and free) beta account for Bitcasa but there are more "pro" options in the works. I've heard lots of good things about Bitcasa from friends already in the beta, so this is one I definitely have my eye on. 4. Google Drive The long-rumored Google Drive was finally introduced to the world and users at the end of April. With Google Drive, business owners can once again seamlessly access all of their data regardless of where they are or what device they're working on. Business owners who currently rely heavily on Google services may find a certain ease with Google Drive, as it's essentially a more powerful version of Google Docs. It brings together Google services like documents, spreadsheets, images and more and puts them in one place so you can collaborate with team mates. And because it's Google, you can easily search for documents based on keyword, file type, and even browse through scanned documents. However, because it's Google, it also comes with some scary privacy concerns. Like the fact that Google can use and/or modify whatever you upload whenever they want. That's not exactly winning it fans with the small business crowd. If you want to give a try, you can get started with 5GB of storage for free or choose to upgrade to 25GB for $2.49/month, 100GB for $4.99/month or even 1TB for $49.99/month. Those are just four of the cloud storage applications getting a lot of buzz right now. Which one are you partial to? And how has cloud storage changed the way you do business? Cloud Computing Photo via Shutterstock From Small Business Trends |
| Facebook Fizzles on Wall Street, But Is Facebook Itself Still Worthwhile? Posted: 23 May 2012 02:30 AM PDT A disappointing performance on Wall Street has many bashing Facebook and questioning its value as an investment. But for the small business community, a totally different question arises about the value of the site’s low cost display ads compared to Google ads, for example. The fact is that there are still other ways that small businesses can take advantage of Facebook. So how is the Facebook flap affecting you? A Deeper Look At the ProblemWhat poor Wall Street performance means. Jeff Macke, investment pundit, and Todd Schoenberger, managing principal at BlackBay Group, square off on the viability of Facebook after a disappointing first few days on Wall Street. Macke’s view is that the company has no significant way to grow revenue, while Schoenberger insists the value of the social network lies in the number of people it reaches. Yahoo! Finance The real trouble with Facebook. Beneath all the projections shared by Henry Blodget is one that should concern not only investors but advertisers. Advertising revenue at Facebook is growing much more slowly than at Google. What does this say about Facebook’s prospects and about the value of its ad service? Business Insider Facebook Advertising ExaminedGM says Facebook ads aren’t worth it. It isn’t only the poor performance on Wall Street that has many concerned. Recently, General Motors, a $10 Million advertising client, announced it will be pulling its account, claiming display ads on Facebook aren’t getting consumers to buy. Wall Street Journal Google ads a better buy. For a closer look at why some companies are concerned about the viability of Facebook ads, take a look at this side by side comparison of Facebook and Google display ads. The first thing to notice, we think, is the difference in performance. Google ads get a response nearly 10 times better than Facebook, according to this infographic. WordStream Another Facebook PerspectiveBut hold on there! Just because Facebook ads don’t work for GM doesn’t mean the social network is a complete waste of time for companies hoping to connect with customers. After all, even if GM has pulled its $10 million advertising budget, it still spends $30 million in other Facebook marketing including creating content for brand pages. Forbes Why Facebook ads may not work for some. Ben Kunz, vice president of strategic planning for Internet and media marketing firm Mediassociates, says the way companies manage the rest of their Facebook presence can have a lot to do with performance of Facebook advertising campaigns. Bloomberg Businessweek Other Ways to Get CustomersGenerate leads with a content marketing tab. You don’t need Facebook display ads to connect with prospects on Facebook. Some simple instructions show any business how to create a tab on your Facebook page offering free whitepapers and other things to your visitors while promoting your Facebook presence and collecting potential leads for your product or service. Rightlook Creative For some, it’s not the ads but the community. The fact that some businesses can draw plenty of customers without ever spending a dime on ads, just from the community they create, isn’t likely to make investors very happy. But as vintage furniture and housewares dealer Stéphane St-Arnaud discovered, it’s the non-pay services Facebook offers that are sometimes most valuable to small businesses. The Montreal Gazette Some Last Advertising & Marketing TipsStill using Facebook ads? If you’re still using Facebook ads after all this, there’s a tip Facebook marketing expert Perry Marshall would like you to remember. Marshall wrote the book The Ultimate Guide to Facebook Advertising and tells Chris Hamilton in this video interview that when it comes to Facebook ads, less is more. Sales Tip A Day Remember it isn’t Facebook you’re selling. There’s another problem with Facebook, even if you only use it for marketing. The social network is still a great tool for promoting your Website, insists SEO consultant Nick Stamoulis, however, businesses with an online presence should be sure they are boosting their own Website, not Facebook. Trying to get more likes for your Facebook page is important, but don’t go overboard! Search Engine Optimization Journal From Small Business Trends |
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