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American Business Brokers & Advisors Founder & President MERGERS & ACQUISITIONS BUSINESS VALUATIONS
DECEMBER 2022
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What Is Next?
Looking Back on How We Got to Where We Are in 2022
I always say that life is about the journey, and as we are coming to the end of 2022, I reflected on the journey we all have lived through over the last couple of years, and it made me wonder where the journey is leading us. For example, my joke to many people is I did not know about the word pandemic and could not have spelled it. But I know what a pandemic is now and have no desire to live through another one. Little did we know, but the pandemic was only the beginning of what was about to come. I also learned that the price of crude oil could go to a negative price of $37 a barrel, which I thought was impossible, and yes, there were people in the crude oil market who had to pay to have someone take their oil. Who would have thought that could even happen?
nobody could work or didn’t want to work due to COVID-19, and we are still experiencing that issue. As a matter of fact, I think it is getting worse after two years. And economists say we will continue to experience this labor issue for a long time. Next, came the supply chain issue crisis, which was probably a no-brainer because nobody was working, so how could they make anything? Duh! Here again, this issue has stuck around, and it looks like it will be with us for a while, too. If you add labor shortage with supply chain issues together, you get high prices due to no supply and high demand, which equates to inflation. So, not only can you not get what you want, but you have to pay more for what you are getting. That’s sort of confusing, right? Just when things were bad enough, along comes an issue in Ukraine where they start messing around with more of the supply of food and fuel on a global scale. Now, we have another ingredient to mix into the pot of what was already a mess. With the shortage of labor and the supply chain all messed up and nobody wanting to work, someone came up with the idea of raising the interest rates, so if you finally found what you wanted to buy, you could pay more for it. Yay! Oh, what fun we are having now. But wait, there’s more. Next, it was announced that the government is spending $79 billion to hire 87,000 new IRS agents. I guess this is to go after the people who have extra money because they couldn’t find anything to buy and instead invested their money? Who knows?
Now, the next item doesn’t affect everyone, but since I live in Florida, particularly in Ft. Myers Beach, Florida, I had the opportunity of experiencing a category 5 hurricane. I also partook in the damage that goes along with a devastating hurricane. (I am not whining, just laying out a factual timeline). And with the hurricane, I saw how government works on a local, state, and federal level during a crisis. Trust me; this is something you can do without in your lifetime. Lastly, we are having a midterm election, which gives us a glimpse of what is to come regardless of who wins. And I will bet that glimpse will be more government regulation in what you do, where you go, and how you do it. Plus — don’t forget — more taxes. (Just a lucky guess.) So, it has been quite a journey over the last couple of years, and I am looking forward to seeing what is ahead for all of us in this wonderful journey we get to enjoy. Even with what has gone on in the past, we are very fortunate and blessed to live in the greatest country in the world, and as long as we, our family, and our loved ones are healthy, life is good. May we all continue on this journey of life together. I hope that you and your family have a wonderful Christmas and a fantastic new year. All the best, –Terry Monroe
Of course, with the pandemic, we got to experience the labor shortage where either
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4 STEPS TO CREATING A CHRISTMAS BUDGET Don’t Go Broke for the Holidays
Before you head to the mall or add items to your shopping cart online, you want to ensure you have enough money to cover your monthly expenses and buy your loved ones Christmas presents. You may feel overwhelmed about your finances and how you will manage to buy gifts. But if you create a Christmas budget, you won’t break the bank! HOW DO YOU CREATE A CHRISTMAS BUDGET? 1. Write down your monthly income: The first thing you want to do is tally up how much money you bring in each month. This lets you know how much money you have before you take out your expenses. 2. Write down your monthly expenses: You want to tally up the total amount of regular monthly costs, including housing, utilities, groceries, and internet. This also includes cars, credit cards, insurance, and other monthly payments. Be sure to add any streaming or subscription fees to this total.
3. Find out how much money you have left over: Subtract your total expenses from your monthly income. The number you get will be the money you have left over for discretionary spending, such as dinner
out, a concert, or Christmas presents. But make sure you leave some wiggle room for any unexpected costs.
2. Recycle gift cards: If you received a gift card to a store that you never used (or forgot about), re-gift it this year! Just be sure the card hasn’t expired. 3. Go thrifting: You can find great gifts at your local thrift store. Depending on where you go, you can get clothes, books, silverware, furniture, gadgets, and more. Christmas shopping can be stressful, but by creating a budget and sticking to it, you will survive this holiday season like a pro.
4. Plan out how much you want to spend on Christmas gifts: Write out whom you want to get gifts for and how much you want to spend. Track your spending as you go to ensure you don’t overspend or forget to buy someone a gift.
SHOP FOR CHRISTMAS ON A BUDGET. 1. Look at last-minute sales: Tons of
retailers will offer holiday sales as we get closer to Christmas. So be on the lookout for stores that mark prices down as St. Nick prepares for his journey.
10 EXCELLENT WAYS BUSINESSES FAIL
I recently had lunch with a friend of mine who happens to be in the banking business and has worked as a commercial banker for many years. Out of curiosity, I asked him, “When a customer comes to you with a request to borrow money, can you tell if they’ll be successful or not?” Suddenly, he got a big smile on his face and said, “Yes! Over the years, I’ve even come up with the top 10 reasons why I think businesses fail.” Then he started sharing his insights with me. I hope you’ll find them as interesting as I did.
Top 10 Excellent Ways That Businesses Fail by Todd Rinehart
1. The borrower tries to grow too fast. I have one location, but I want five more.
2. They start the business undercapitalized, and then come to the bank because they need more money because …
3. As an entrepreneur, they are great at selling, but their management skills are lacking.
4. They have weak financial reporting skills and are not preparing financial statements in a timely and efficient manner. Their year-end income statement will not be prepared until …
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SUDOKU (SOLUTION ON PG. 4) Take a Break!
Get the Wisdom of Other Business Owners’ Mistakes FROM TERRY MONROE’S ‘HIDDEN WEALTH’
Are you planning on selling your business in the next 1–2 years? If so, you need to start planning now. But where do you even start? Selling a business is a massive undertaking. With so many things to consider, some confusion is understandable, but if you don’t get the right kind of help, you could end up selling your business for far less than top dollar and leave tens of thousands of dollars on the negotiating table. These are the kinds of cautionary tales that market maker and four-time author Terry Monroe shares in “Hidden Wealth: The Secret to Getting Top Dollar for Your Business.” While we’d like to hope we’re accomplished
and savvy enough to sell our business without any help, the uncomfortable truth is that tons of successful business owners have lost out on millions of dollars in selling their businesses — all because they didn’t know exactly what they were doing. Sometimes, contemplating the financial implications of selling your business and dealing with the strain and grief that come with doing so are worse than actually selling the business. So, what then? Well, in Terry Monroe’s “Hidden Wealth,” you’ll also learn how to realistically assess your situation, deal wisely with the business you’ve built over the years, and maximize the money you’ll receive when you decide to sell. It has been said that we learn from our failures, not our successes, but the true sign of a successful individual is to learn from someone else’s failures and not your own. “Hidden Wealth” seeks to do just that — give every business owner access to the lessons learned from the mistakes of other business owners so they can avoid the setbacks and reap all the rewards. Find out how you can get a copy today by emailing Terry@terrymonroe.com .
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5. They lose focus on their core business and then tell the bank, “I want to open a ‘sports bar,’ too.”
6. They are reactive instead of proactive. This is, as always, the kiss of death.
7. They don’t understand the difference between equity capital and traditional bank financing. The bank does NOT want to be your equity partner.
8. The bank is not your solution provider. You are the solution provider.
9. Piecemeal documentation — or just not providing the documentation I request — speaks volumes of a person’s organizational skills and ability to pay attention to detail.
And lastly,
10. The borrower’s son or daughter will be the succession plan solution. I DO NOT think so … –Terry Monroe
CELEBRATION DECORATION FAMILY GATHERING
GINGERBREAD HEARTH HOLIDAY ICICLE
MIDNIGHT MITTENS PRESENT ROOTS
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INSIDE 7824 Estero Blvd., 3rd Floor Fort Myers Beach, FL 33931 1 How We Got Here and What’s Next
Sudoku Solution
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How to Christmas Shop on a Budget
10 Excellent Ways Businesses Fail
Get the Wisdom of Other Business Owners’ Mistakes
Great Advice From 3 Entrepreneurs
Entrepreneurs Every Business Should Listen To LEARN FROM THE BEST
When entrepreneurs prepare to start a business or try to grow their company, they often search for advice from other successful entrepreneurs. So much information about the business world is available though. Regardless of whether you head to the bookstore to buy a new book or navigate to YouTube to find helpful videos, it can be overwhelming. With all of these options available, you may wonder, “Which entrepreneurs or business owners are actually worth listening to?” While recently talking with successful entrepreneurs about which people inspired and taught them important lessons, the same few names came up repeatedly. So, according to leaders across various fields, here are three business owners you should learn from if you want to grow your business.
the developer of award-winning training programs for entrepreneurs and is the founder of SUCCESS magazine. He even prides himself on mentoring new business owners and helping them find success. SIMON SINEK To grow your business, you must become a successful leader, but what does that look like? Simon Sinek has written books like “Start With Why” and “Leaders Eat Last” to help train entrepreneurs so they can become successful leaders. Whether you watch his online talks, listen to his podcast, or read one of his books, Sinek will inspire you to build a business that you will truly believe in. MEL ROBBINS Procrastination is one of the greatest obstacles entrepreneurs can face. They might have great ideas in mind, but getting them started can often be a real challenge. That’s where Mel Robbins comes in. She struggled with procrastination for years, racking up hundreds of thousands of dollars in debt before she found the secret to overcoming her problems. Luckily, she shares her thoughts in her book “The 5 Second Rule” and has given helpful information through numerous speeches. Now she’s using her previous hardships to help other business leaders avoid making all-too-common mistakes.
DARREN HARDY It’s rare to meet a business owner who has not heard of or read one of Darren Hardy’s books. The author of “The Compound Effect” and “The Entrepreneur Roller Coaster” has been a leader in the personal development industry for over 20 years. Hardy is
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