Acquiring Minds

WELCOME TO “ACQUIRING MINDS” – WHERE BUSINESS DREAMS TAKE FLIGHT!

Good morning, trailblazing entrepreneurs!

“Acquiring Minds” – Imagine turning a business not just into what it currently is, but into what it could be!?

Today's Power-Packed Agenda:

·????? Thinking Like a Seller: Still Slaying The Dragon: Business Owners Deal With Limited Capital and Cash Flow

·????? The Great Debate:? Discussing Deal Structures with a Prospective Seller

·????? Book Spotlight: ?This Is Marketing by Seth Godin

“Read at every wait; read at all hours; read within leisure; read in times of labor; read as one goes in; read as one goest out. The task of the educated mind is simply put: read to lead.” – Cicero

Imagine selling your business without all the overwhelm. Picture yourself walking away with way more cash, way less stress, and maybe even an early retirement. Sound too good to be true? It's not!? With over $200 million in deals closed, I've cracked the code. I'll reveal my proven "3 Secrets" (including how to legally slash your capital gains tax) plus the six insider systems that streamline the whole process. Ready to make your exit a success? Register for "How to Sell Your Business and Profit Without Pain and Hassle" on April 24, 2024 at 2 pm Central.

Still Slaying the Dragon: Business Owners Deal With Limited Capital and Cash Flow

As a small business owner, you know that limited capital and cash flow can be a major challenge. After all, you need money to start and grow your business, and you need to be able to pay your bills on time. But what can you do if you don't have a lot of money to work with?

Here are a few tips on how to deal with limited capital and cash flow:

1. Plan carefully. Before you do anything else, you need to create a business plan. This will help you to map out your business goals and figure out how you're going to achieve them. It will also help you to identify any potential challenges, such as limited capital and cash flow.

2. Seek funding. There are a number of ways to get funding for your small business. You can apply for loans, grants, or investors. You can also look into crowdfunding or peer-to-peer lending.

· Bank loans: Banks are a traditional source of funding for small businesses. However, it can be difficult to get a loan from a bank, especially if you don't have a good credit score.

· Small Business Administration (SBA) loans: The SBA offers a variety of loan programs to help small businesses. These loans are often easier to qualify for than traditional bank loans, and they offer lower interest rates.

· Venture capital: Venture capital is a type of investment that is used to fund high-growth businesses. Venture capitalists are willing to take on more risk in exchange for the potential for higher returns.

· Crowdfunding: Crowdfunding is a way to raise money from a large number of people, usually through online platforms. Crowdfunding can be a great way to raise money for small businesses that are just starting out.

· Peer-to-peer lending: Peer-to-peer lending is a type of online lending that connects borrowers with lenders. Peer-to-peer loans can be a great option for small businesses that need to borrow money quickly and easily.

3. Cut back on expenses. If you're struggling to make ends meet, you may need to cut back on your expenses. This could mean negotiating lower rent, canceling unnecessary subscriptions, or downsizing your office space.

4. Be creative. There are a number of ways to generate cash flow without having to borrow money. You could sell products or services, offer discounts or promotions, or partner with other businesses.

5. Get help. If you're struggling to manage your limited capital and cash flow, don't be afraid to ask for help. There are a number of resources available to small business owners, such as financial advisors, accountants, and lawyers.

Managing limited capital and cash flow can be a challenge, but it's not impossible. By following these tips, you can overcome these challenges and build a successful small business.

In addition to the tips above, here are a few more specific things you can do to manage your limited capital and cash flow:

• Invoice promptly. Make sure you send out invoices as soon as possible after you complete a job or sale. The sooner you get paid, the sooner you'll have cash in hand.
• Offer discounts and promotions. If you're struggling to generate sales, consider offering discounts or promotions. This can help you to attract new customers and boost your sales.
• Partner with other businesses. Partnering with other businesses can help you to save money and generate more sales. For example, you could partner with a company that offers a complementary product or service.
• Get organized. Being organized can help you to save money and avoid mistakes. Make sure you keep track of your income and expenses, and make sure you have a system for managing your bills.
• Be patient. It takes time to build a successful small business. Don't get discouraged if you don't see results overnight. Just keep working hard and you'll eventually reach your goals.

· #smallbusiness

·#entrepreneurship

·#business

· #marketing

· #sales

#cashflow

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The Great Debate:? ?Discussing Deal Structures with a Prospective Seller

Let's talk about deal structures. This is how we'll determine how you get paid for your business.There are a few different options, each with its own advantages and considerations.

Cash Acquisition: This is the most straightforward. You'd receive the entire purchase price upfront in cash. It provides immediate liquidity and security, but it also means you'll pay taxes on the full amount right away.

Stock Acquisition: Here, you'd receive shares of the acquiring company's stock instead of cash. This allows you to participate in the future growth of the combined company. However, the value of the stock can fluctuate, and you might not have as much control over your payout compared to cash.

Earn-Out: This structure ties a portion of the purchase price to the future performance of the business after the sale. So, you'd get a base price upfront, but you could earn additional payments if the business hits certain milestones. This can be attractive if you're confident in the company's continued success, but it also means delaying some of your payout and potentially being reliant on the new management team.

Clawback: This is a provision that allows the buyer to recoup some of the purchase price if certain conditions aren't met after closing. For example, if they discover undisclosed liabilities or the business performs significantly worse than expected. A clawback can protect the buyer, but it also adds some uncertainty for you as a seller.

Example: Let's say your machine shop is valued at $8 million.

• In a cash acquisition, you'd receive the full $8 million upfront, minus any selling expenses. You'd have immediate access to the money but face a potentially large tax bill.
• In a stock acquisition, you might receive shares worth $8 million based on the buyer's current stock price. The value of those shares could go up or down depending on the buyer's company performance.
• With an earn-out, you might get $5 million upfront and then an additional $3 million spread out over two years if the shop hits certain profitability targets. This would depend on the buyer's confidence in your ability to deliver those results.
• A clawback provision could be triggered if, after the sale, it's discovered you have hidden environmental violations that cost the buyer money to fix. They might then be able to claw back a portion of the purchase price.

Key Points to Consider:

• Liquidity: How quickly do you need access to the money?
• Tax Implications: Cash now means taxes now, while stock acquisitions can offer tax deferral strategies.
• Risk Tolerance: Are you comfortable with the potential volatility of stock or the performance-based nature of earn-outs?
• Future Involvement: Would you like to have some ongoing stake in the business through stock ownership?

We can tailor the deal structure to your specific needs and risk tolerance. There's no one-size-fits-all approach. My job is to make sure you understand all the options and their implications before we move forward.

Additionally:

• I can connect you with a tax advisor to delve deeper into the tax implications of each structure.
• We can also discuss potential earn-out structures and clawback provisions in more detail based on your specific business.

This is a big decision, and I want to make sure you're comfortable with every aspect of the deal. So, please don't hesitate to ask any questions you have, just email me at [email protected]

This Is Marketing by Seth Godin

Seth Godin's influential book, "This Is Marketing ":

Redefining Marketing: It's Not What You Think

Seth Godin turns traditional marketing on its head. Instead of sleazy tactics, manipulative ads, and broadcasting messages to the masses, Godin argues that true marketing is about empathy, generosity, and building authentic connections.

Key Points

• Smallest Viable Market: Niching down is essential. Don't try to be everything to everyone. Discover the smallest possible group of people who are a perfect fit for your product or service.
• Permission and Trust: In an age of spam, earning permission is paramount. People need to opt-in to your message because they trust you and value what you offer.
• Status and Culture: People seek belonging and make choices to enhance their status within groups. Understand the culture of your ideal customer and tailor your marketing to align with their aspirations.
• Tension Creates Change: Marketing involves identifying your customer's problem, highlighting its discomfort (tension), and presenting your solution as the path to a better future.
• Marketing as Service: Godin encourages seeing marketing as a way to serve, to make people's lives better. When you genuinely improve the lives of your customers, word-of-mouth becomes your most powerful marketing channel.

Who Should Read It

"This Is Marketing " is a must-read for:

• Marketers: Godin's philosophy offers a refreshing and ethical approach to marketing, shifting the focus to serving instead of selling.
• Businesses: This book challenges businesses to rethink how they connect with customers and prioritize relationships over short-term gains.
• Anyone in a Creative Field: As marketing evolves to value creativity and human connection, Godin's insights are essential for anyone who wants to make their work stand out.

Bottom Line:

"This Is Marketing " challenges us to be more empathetic and considerate in how we approach potential customers. Godin's message resonates in an era where people crave authenticity and trust is a scarce commodity.

#ThisIsMarketing, #businessgrowth, #acquiringminds, #JamesMontgomeryLaw

Get the book now.

1. Deal Spotlight: Looking for a deal?
2. Homebuilder Locale:? Central Texas Net Income:? $1,000,000
3. Government Contractor Locale:? Continental US Net Income:? $6,000,000
4. Online Educational Company Locale:? Continental US Net Income:? $650,000
5. Buy A Ranch, Preserve It Forever Locale:? Central Texas 1300 acres Homesites: $500,000
6. Want to know more? Email me at [email protected]

“The only asset that can be kept safe from every threat and made to appreciate in value year after year is the relationship you have with your customers. ”

— Dan S. Kennedy

Subscribe and we will explore some more ideas for acquiring minds next week,

?Jim Montgomery

JamesMontgomeryLaw.com

PS:

1. Have a business you want to sell? Email me at [email protected]

2. Looking to buy or invest in a business? Email me at [email protected]

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