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10 Things to Watch Out for When Acquiring A Business

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StrategyDriven Entrepreneurship Article |Acquiring a business|10 Things to Watch Out for When Acquiring A BusinessInvestors must evaluate all elements of a business purchase. Acquisitions help investors and existing business owners purchase another company and merge the two businesses. However, there are factors they must watch out for when examining the new acquisition.

1. Do You Have a Clear Transition Plan?

The buyer must have a clear transition plan that indicates when the existing business owner passes the torch to the new owner. It is easier to transition a staff to a new owner when there is a transition phase. However, the plan must enforce the transition in ownership, too. Investors can learn more about the plan by reviewing business ownership transition services now.

2. Are the Financial Records Accurate?

It is recommended that a buyer hire a certified and licensed accountant to examine the company’s current financial records. During a business acquisition, the business owner must present accurate financial records to the buyer. If the accountant finds any inconsistencies, the buyer shouldn’t acquire the company.

3. Acquiring Products and Companies That Coincide With Your Brand

The investor must acquire companies that have products that coincide with their brand. For example, if the investor’s company manufacturers vegan products, the acquisition of a company that uses animal products in their products could not coincide with the brand or its mission.

4. Avoid Non-Compete Provisions

When acquiring a competing company, the buyer must be careful not to sign a strict non-compete contract with limited provisions. This could allow the competing company to prosper and decrease the profits of the company that is acquiring the business. Each product line must perform at the same rate.

5. The Realistic Costs of Operating the Business

The seller must present realistic costs of operating the business. If they present low-ball overhead costs, the buyer doesn’t have the correct information, and this could lead to excessive costs for the buyer for which they are not prepared when taking over the company.

6. Does the Company’s Culture Fit Your Ideals?

The business must operate in the same manner as the buyer’s own business. For example, if the buyer’s company is all-inclusive and diverse, it is not wise to acquire a business that isn’t. They do not want to acquire a company where the workers cannot work well with other workers who are different from them.

7. Background Checks for the Company and Its Key Workers

Background checks for the company, its owner, and key workers give the buyer information about potential criminal activities. If there are records that show key workers who present serious risks to the investor, the company may not be the right choice for the buyer.

8. The Market Conditions When You’re Buying

The current condition of the market defines the cost of businesses in all industries. It is best to consider the state of the market and if the price of the business will increase when marketing conditions improve. They shouldn’t buy if the price reflects a company that is not profitable and could present a financial loss for the buyer.

9. Does the Company Share Your Values?

All business owners have their own set of morals, values, and even political affiliation. If the owner’s morals and values do not line up with the investor’s own belief systems. It could create damage for the investor. They must be consistent in what they believe and what views they share.

10. Can You Make the Company More Profitable?

A company that is failing may present the buyer with a chance to turn the tables for the company, but the company must have products that could generate profits.

Investors want a sound investment when considering a business purchase. However, there are factors that could affect the acquisition and present shortcomings. A complete assessment of the opportunity helps the buyer make a sound choice.

COVID-19 Vaccines And Job Listings: Ways to Provide Comfort To Potential Employees

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StrategyDriven Managing Your People Article |COVID-19|COVID-19 Vaccines And Job Listings: Ways to Provide Comfort To Potential EmployeesDebates about the coronavirus vaccines and workplace mandates have everyone up in arms. As employers try to fill vacancies to enhance productivity and boost their bottom line, they run into serious challenges. Should you aim for herd immunity and mandate that employees and new hires get the COVID-19 vaccine? More importantly, how do you prevent these changes from discouraging ideal candidates from applying?

Encourage Vs. Require

Unless you own a business in the healthcare, warehouse, or retail industry, your best bet is to encourage instead of requiring employees to get the vaccine. Mandates can feel controlling and cause hesitant applicants to look elsewhere for employment. On the other hand, encouraging your employees through informative materials, seminars, training, communication, incentives, and reasonable accommodations lets applicants know they have a choice.

Work With An Expert

There’s a lot of misinformation out there about the COVID-19 vaccines. This type of content often fuels personal fears, prompting employees to remain hesitant about getting vaccinated. Trying to argue these claims on your own isn’t very assuring. If you’re going to make potential employees feel comfortable, the most efficient solution is to work with a few experts.

An attorney, healthcare professional, and human resources expert are better positioned to provide fact-based information. Consult with them to find out how to draft and implement your policy in a way that protects your business and your staff. Make a note of the experts or reputable resources you used to develop your policies to put applicants’ minds at ease.

Make It Plain

Life amid the pandemic is already unpredictable, so don’t make matters worse. If you want to ease the concerns of job seekers, you should state your company policies and requirements plain and clear. When creating posts for job boards, list the need for a job background check and policies or incentives for the COVID-19 vaccine. While this tactic might drive some applicants elsewhere, at the very least, it shows that your company is honest, transparent, and upfront. If they chose to continue with the application process, informing them upfront also allows them to prepare.

Offer Reasonable Accommodations

If an applicant expresses that they have reservations about the COVID-19 vaccine or objects due to religion or disabilities, be prepared to offer reasonable accommodations. You can allow them to work remotely, reduced hours in-house, or a hybrid version of the two options. If you have departments that don’t require a vaccine, you can recommend compatible positions. If they’re financially strapped, you can offer incentives like cash bonuses, transportation discounts, or paid time off to anyone that wants to get the vaccine.

Offering reasonable accommodations when applicants inquire boosts their confidence and lets down their guard. Potential employees will know that you’re interested in what they have to offer and that you’re willing to go the extra mile to accommodate their needs. This could encourage them to accept a job offer.

Highlight Other Health And Safety Measures

If you’re still on the fence about the COVID-19 vaccine mandate, or you’ve decided against it, you can still make job seekers feel comfortable working with your organization. On your company website or in the job description, ensure that you highlight other health and safety measures you’ve implemented. If they know that you require wellness checks, face masks, gloves, social distancing, frequent handwashing, and additional cleaning services, they’ll be less fearful about being in the workplace.

The COVID-19 pandemic has wreaked havoc on businesses in various industries. Business owners had to do what they could to survive while keeping their employees, customers, and the general public safe. Now that the coronavirus vaccines are on the scene, they have helped some sense of normalcy and control. As you begin putting up ads for available positions, remember to prioritize job seekers’ health, safety, and comfort. By applying the strategies above, you can put their minds at ease and increase your chances of attracting top talent despite the madness.

Small Business Bankruptcy – The Next Steps

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StrategyDriven Managing Your Finances Article |Small Business Bankruptcy|Small Business Bankruptcy – The Next StepsBankruptcy might be your best shot at eliminating debts and restructuring your finances. 2020 brought with it an economic disaster on a scale not seen since the Great Depression. Forbes predicts bankruptcies this year will increase by over 140%, and these bankruptcies will affect small businesses the most.

Bankruptcy Options For Small Businesses

Depending on what kind of business you own, its income, and your relationship to it, there are potentially three types of bankruptcy available to you. We will break down chapter 7, chapter 11, and chapter 13 in detail so you can decide what bankruptcy option is right for you.

Chapter 7

This option is best if you are a general partner or sole proprietor of a business. Chapter 7 can eliminate all debts for which you are personally responsible. You can file for certain exemptions that may make it possible for your small business to continue operating.

What Exemptions Can Keep Your Business in Operation?

Your chapter 7 trustee cannot sell off exempted assets, but what counts as a potential exemption varies state by state. So, depending on where and how you operate your business, it may continue despite the bankruptcy.

Some state exemptions allow debtors to exempt “tools of the trade,” which can cover items essential to certain types of businesses up to a certain price. Another exemption that may be available to you is a “wildcard” exemption. These protect any asset of the debtor’s choice.

Chapter 7 For LLCs and Corporations?

If you are an LLC or corporation, chapter 7 can only really help you liquidate your business. Unlike chapter 11, there is no way to keep your business operating under chapter 7. All of your business’ assets will be liquidated.

Chapter 11

Chapter 11 bankruptcy is the stereotypical type of bankruptcy you hear about in the news. When giant corporations claim bankruptcy, this is usually the kind they file. However, the majority of chapter 11 bankruptcies are filed by small and medium-sized businesses.

Under chapter 11, business entities like LLCs and corporations can restructure their debt by selling some assets. This option allows businesses to remain in operation, usually at a reduced scale.

Special Provisions for Small Businesses

Chapter 11 bankruptcy is a time-consuming and expensive process. Usually, larger businesses can handle the costs, but smaller companies may have trouble with the legal fees and restructuring costs.

The CARES Act and Small Business Bankruptcy

Since the CARES Act increased the debt ceiling for small business bankruptcies in 2021, the bankruptcy code considers a small business as an individual or entity that owes no more than $7,500,000 of business-related debts. This amount will hold until the provision is set to expire in March 2022. Previously, the debt ceiling was only $2,725,625.

The Creditor’s Committee Can Be Waived

The creditor’s committee is formed to protect the interests of the creditors, and it is formed and retained at the debtor’s expense. This includes fees for attorneys, experts, and other legal professionals. Creditor’s committees are usually very expensive to maintain. A designated small business debtor can petition to waive the creditor’s committee from the bankruptcy process.

More Oversight, Deadlines, and Reporting for Small Business Debtors

Small business debtors are subject to stricter guidelines, increased oversight, and more rigorous enforcement of deadlines for meeting all of the steps in the bankruptcy process.

Chapter 13

This bankruptcy option is only meant for individuals, but by default, becomes available to individuals who are also sole proprietors. LLCs or corporations are not eligible for chapter 13. This option is typically harder to file for because it allows the debtor to keep most of their assets and creates a payment plan for the debtor to pay off some of their debt.

This means that as the sole proprietor of a business, you have three to five years to pay back some or all of the debts in monthly installments. You can select workspace and equipment as some of your exemptions and, technically, through chapter 13, you can keep your business in operation.

What Option Is Right For Your Business?

Declaring bankruptcy is a massive step toward debt relief. By knowing your options, you can make an educated decision and select the chapter that is best for you and your business interests.

About the Author

StrategyDriven Expert Contributor |Veronica BaxterVeronica Baxter is a writer, blogger, and legal assistant operating out of the greater Philadelphia area. She writes extensively for the Law Offices of David Offen, a bankruptcy attorney in Philadelphia.

Gain The Funding You Need To Grow Your Business

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StrategyDriven Managing Your Finances Article |Funding|Gain The Funding You Need To Grow Your BusinessAre you thinking about growing your business? Growing your business is important and it’s one of the measures of a company to determine whether it is successful. If your business remains stagnant on the market for too long then the longevity of your model will almost certainly be called into question. However, growth does cost money. So, let’s look at some of the ways that you can fund a change like this in your business model.

Self Fund

First, you might want to think about self funding your business growth plan. This could be possible if you have enough money already in your personal accounts. Even if you don’t you might be able to free up some money. For instance, you could sell structured settlement damages that you claimed in a court case. This will provide you with a massive sum of money that you can then inject into your business. There is absolutely no limit on how you use annuity like this. If you want to fund your business with the cash, then you can.

Head To A Tradeshow

You could consider attending a tradeshow to gain the funding you need for your business. Attending a tradeshow will be useful because it means that you will be able to get the interest of investors. Unfortunately, attending a tradeshow is also massively expensive so it does require you to take on quite a lot of risk. You’ll have to spend about a year planning for this type of event and you need to think about ways to ensure that your business does stand out. However, even with these issues attending the right tradeshow can catapult your company to new heights.

Get A Loan

Next, you could think about using a loan to fund the growth of your business. If you are going to get a loan for a company, then you’ll need to ensure that your books are in order. It’s essential to guarantee that you are not in the red or taking on too much risk. Your credit rating can also impact your ability to get a loan for a private company. As such, you might need to improve your credit before you take this action and move forward with this possibility.

Other loan options include private equity and venture capital funding. However it is important to know what position is right for your business and what you qualify for. Taking on the wrong type of funding can go one of two ways so while both of these are viable options for funding you should research private equity vs venture capital funding to ensure you know exactly what you are getting into.

Crowdfunding

Of course, you could also look at crowdfunding options as well as a way to get the money that you need to grow your business. This could be a useful option if you are planning to sell a new product or service and you know that there’s already an audience interested in buying. Crowdfunding is a smart choice if you know how to build demand, get people excited and use viral media. However, it’s highly competitive these days and it’s difficult to breakout or get attention unless your company has a hook. There needs to be something unique that makes an audience connect.

As you can see, there are numerous paths that you can choose which will allow you to fund your business growth. It’s just about choosing the right one for your particular business model.

Taking On Your First Team Members: Everything That You Need To Know

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StrategyDriven Talent Management Article |Team Members|Taking On Your First Team Members: Everything That You Need To KnowYou’ve done what seemed impossible – you’ve managed to grow your business to a point where you need to take on additional team members – and you couldn’t be more excited. Your business has started to grow and you know that if you get your approach right, you can ensure that your business has the very best chance of continuing to grow and thrive.

The only issue is that you’re feeling a little overwhelmed by the process of taking on your first team members; it’s a lot to take in, after all. The good news is that just because the concept of taking on your first team members seems like a somewhat daunting one, that doesn’t have to be the case – there are plenty of steps that you can take to make taking on your first team members a less stressful and more enjoyable experience.

Wondering what those steps are? Below is a guide to everything that you need to know about taking on your first team members!

Bolster your knowledge

Before you can even think about hiring your first team members, it’s important that you take the time to boost your knowledge and understanding of how the hiring process works, as well as what it takes to be a good employer. You might find that by choosing to undertake a couple of management courses that you might find learning to be a boss – because it is something that’s learned – becomes easier to manage. If you’re serious about being the best employer that you can be, then it’s definitely something that it’s worth taking the time to master.

Don’t go it alone

Not sure how to cope with taking on your first team members and all of the admin that goes with it? Don’t panic – take the time to think about hiring a specialist to help and support you with the hiring process. You will find that if you have some HR support on hand, either full-time or on an adhoc or freelance basis, you can make the process of hiring team members a far more enjoyable and less stressful one.

Take safety seriously

One of the most important things when it comes to taking on team members is to understand the importance of adequate health and safety at work. When you run a business, you can be held accountable should a team member hurt themselves while they are at work, which is why getting health and safety right is so important. You might find that guides like Carlos Ramirez Safety guide could be useful to help make understanding the ins and outs of workplace safety a little easier.

There you have it, a simple guide to the ins and outs of taking on your first team members. There’s a lot to think about but the process doesn’t have to be as stressful as you might think.