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American Business Brokers & Advisor Founder & President PROFESSIONAL INTERMEDIARY & MARKET MAKER FOR PRIVATELY HELD COMPANIES Author of ‘The Art of Buying and Selling a Convenience Store’ & ‘Selling with Certainty’ Involved in the Sale of 750+ Businesses Advisor • Consultant • Speaker
DECEMBER 2019
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The Biggest Misconception About What I Do
“Trying to evaluate the state of a business is like trying to hold onto a pile of Jell-O—you have tomake sure nothing important slips through your fingers!”
When I ask myself, “What is the biggest misconception my clients have about my business?” I can sum it up like this: They think I’m a realtor. They think I’m someone who makes a listing for their business, snaps a few photos of the place to put online, and waits for a buyer. This couldn’t be further from the truth. Back when I was in my early 20s, I used to sell homes before I started buying and selling businesses valued between $10 million and $120 million. So, you can trust me when I say you can’t compare selling a multimillion-dollar business to selling a $300,000 home; my profession and that of a realtor couldn’t be more different. Let me explain. When someone wants to sell a house and a realtor finds people who might want to buy it, he or she is going to consider a few different aspects of the property. First, they’ll make sure the roof and the foundation are in good condition. Then, they’ll look at the walls, the electrical systems, the plumbing, and the carpet, followed by a million other little things. There’s a very systematic pecking order in place when evaluating a house, and this is true for evaluating the state of a business as well. But that’s where the similarities stop. All the things a realtor may consider about a house are, in a sense, static characteristics. Sure, components of a house will need replacing every now and again, but for all intents and purposes, a house can stand unchanged for years, even decades. Businesses, on the other hand, are always changing — they’re more than just a building. If you take a family out of a house, the house doesn’t change. But, if you take away a business’s employees, or tweak their assets, the whole business can fundamentally change. Trying to evaluate the state of a business is like trying to hold onto a pile of Jell-O — you have to make sure nothing important slips through your fingers! I’m Not a Real Estate Broker!
When a client wants me to evaluate their business, I look at their finances, their employees, the quality of the assets of the business, the demographics around the business, and any number of things that could change at a moment’s notice, and I try to discern whether the business is trending generally upward or downward. When I present one of these two conclusions to a client regarding their business, it usually results in another, smaller misconception. When someone’s business is trending upward, they usually want to keep it and nurture that success. But, if their business is trending downward, their first impulse is to sell. It seems logical, but buyers are more likely to buy a successful business than a failing one, so it actually makes more sense to sell a business when it’s doing well than when it’s failing. Unfortunately, in my experience, many have hung onto their businesses for too long, only to see them fail under their ownership. That’s not to say I have much power to stop any of that from happening. Because, when it comes right down to it, I’m not really in the business of brokering sales — at least not first and foremost. I’m in the business of helping business owners make informed decisions. Many of my clients come to me just looking for my take on their business. They trust I’ll be able to give them new information that can help them decide their next move. I don’t hop in only after you’ve decided to sell — I can steer you straight right from the start and help you to be the most successful business owner you can be. To learn exactly what I do, check out my latest book “Selling with Certainty” available on Amazon or TerryMonroe. com. In the book, I outline the entire process from beginning to end on how to prepare and ultimately sell one’s business for the highest value.
–Terry Monroe
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There’s No Expiration Date on Entrepreneurship
The Joys of Starting a Business After You ‘Retire’
DO YOU HAVE THIS SKILL? We live in the age of information. The phones in our pockets are more complex than the computer systems that landed people on the moon just 50 years ago, and they’re only getting smarter and faster. Our world should be a technological paradise, but, just like the moon, all that information comes with a dark side. The Greatest Work Skill of the 21st Century As a nation, America is getting older. By 2030, 20% of Americans will be 65 or older. With people living longer than ever before and the baby boomers approaching retirement age en masse, older adults will continue to have a massive impact on the American economy at large. Normally, we think of seniors as people who cash in on the hard work they’ve already accomplished. Many young people even worry Social Security will be wiped out by the time they reach retirement age. But who’s to say older adults can’t contribute to the economy? If you’ve ever tried to change jobs late in your career or pick up some part-time work after retirement, you know it’s hard to be hired as a senior. Quartz recently called seniors “the economy’s most underused natural resource.” Until more employers understand the value and potential of older workers, entrepreneurship remains the most viable avenue for seniors wanting to work after their primary career has ended. There are a number of reasons why seniors find creating their own business to be rewarding and why they tend to succeed when they do. Unlike younger people, who often become business owners in an attempt to make a fortune, older entrepreneurs can be content with small, sustainable micro-businesses. They also approach their businesses with a wealth of experience that can’t be purchased. As a result, 70% of ventures founded by older entrepreneurs are still open five years later, more than double the rate of the general population. How familiar does this story sound to you: You get to work in the morning and fire up your computer with every intention of getting right to work. But then you decide to check the news to see if the president said something noteworthy, or if your fantasy football team is still going strong. Maybe then you watch a sports highlights video that’s only a few, harmless minutes long, but then, before you know it, half the day is gone and so is your productivity. That access to information divided your attention and conquered your day before you could conquer it yourself. One skill is at the root of everything else workers will need in the 21st century: paying attention. Even before the internet, in 1971, psychologist Herbert A. Simon said that a wealth of information would undoubtedly be accompanied by a deficit of attention. But workers who can master their focus long enough to solve problems with creative solutions are the ones who have what it takes to survive the dark side of the information age.
With so much potential to be found in senior-run businesses, it’s no surprise that organizations are rushing to empower older adults with the tools they need to succeed. Senior Planet, a coworking space for seniors with outposts nationwide, teaches classes on skills like website creation in a space that makes older learners feel welcome and comfortable. On top of being an important economic driver, entrepreneurship can be a wonderful way for seniors to generate meaning and value in their lives. It’s never too late to start the business of your dreams.
So what can you do to become a master of your attention? Well, in short, a lot of things. Look at the websites, the tabs, the apps, or the topics that distract you from the task at hand. One study found it takes the average worker 64 seconds to reorient their attention after responding to an email, so it can pay to send and respond to fewer emails. That said, group chats, apps, and even unproductive meetings and conversations with coworkers can become time sucks. Do you want to be more successful and have successful employees working under you? Then start by focusing your undivided attention on the distractions you can eliminate. Also, you may want to read the New York Times Bestseller “Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,” by James Clear. I just finished reading it, and it is a great book to help you get your life back in order or set on the right course of life. Enjoy.
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Take a Break!
I Couldn’t Help Myself —Again THE LATEST ADDITION TO MY OLD CAR COLLECTION
WORD SEARCH
I love buying and fixing up old cars in my spare time. It’s not the cheapest hobby in the world, but, man, does buying those old cars bring back memories. A few years ago, I decided to buy a 1973 Opel GT. For those of you not familiar with that car, it looks kind of like a miniature corvette. I owned one back in 1973 when it was a brand-new model, and decided I wanted to own one again. So, I found one in Ohio, bought it, and fixed it up. It’s fun to drive but hard to get in and out of — especially when you get to my age! Back in July, I shared the story of how I bought my Volkswagen Thing. If you’re not familiar with what a Thing looks like, just imagine a square steel box painted bright yellow. That should give you a basic idea of its appearance. And, as different as it is from my Opel GT, it’s just as fun to drive. Sometimes I buy old cars just because they’re fun or because they remind me of my teenage years. Recently, however, I bought a car because it brought back fond memories with my family. The car I just bought is a 1976 Chevrolet Camaro LT. My dad bought it new for my sister’s 16th birthday. She’s owned it ever since, but about 10 years ago, she stopped driving it. It was just sitting in her garage gathering dust. My sister had said she would never sell the car, but, when I visited her recently, she seemed to have changed her mind. She was thinking of selling it. Now, we both had a personal attachment to that car. Our dad, who has long since passed away, had bought it, and we decided right then we wanted to keep it in the family. So, I bought it from her and fixed it up. Turns out, all it needed was some new tires, new exhaust, and a good tuneup to make it run like a champ. After all, it only had 22,800 miles on it! Every old car comes with a history, but the memories that come with the Camaro really make it something special.
HOLIDAYS FLURRY FROZEN PENGUIN
WREATH SNOWFLAKE
COOKIES ORNAMENTS REINDEER STOCKINGS
WINTER SLEIGH
SUDOKU (SOLUTION ON PG. 4)
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INSIDE P.O. Box 810 Effingham, IL 62401 1 The Biggest Misconception About What I Do
Sudoku solution
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The Power of Senior Entrepreneurship
The Greatest Work Skill of the 21st Century
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The Latest Addition to My Old Car Collection
Take a Break
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Last-Minute Holiday Marketing Ideas
If you haven’t capitalized on the holiday season for your business’s marketing campaign yet, don’t worry, because you still have time! Even if you’re still a long sleigh ride away from finishing your own holiday to-do list, you can ensure your business flourishes this season with a few last-minute marketing ideas for the holidays. Send season’s greetings to loyal customers. Even if your Christmas or holiday-themed cards don’t mail on time, you can still send personalized emails or social media messages to let your customers know you’re thinking of them this holiday season. Established customers can be responsible for up to 40% of a business’s sales, and your unexpected holiday greeting could keep your business in mind as they go about their holiday shopping. Decorate your website for the season. Your customers are already in the holiday spirit, so why not indulge them with some seasonal
trappings on your website? Festive holiday touches to your company logo or new webpages recommending holiday gift ideas can go a long way to attract customer attention. You don’t have to be the flashiest display on the block, but showing off your holiday spirit will spread cheer and goodwill. Create gift card giveaways or incentives. Gift cards, even digital ones, are more popular than ever around the holiday season. In one survey, 43% of respondents said they planned on giving gift cards or certificates in lieu of other holiday presents. With 1 in 4 gift cards sold in the last four days leading up to Christmas, these ideal presents make the perfect last-minute marketing tool. Offer gift card incentives or giveaways for your loyal customers. They can make the perfect present for them and, in turn, your business.
Don’t Get Lost in the Bustle 3 Last-Minute Holiday Marketing Ideas
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