7Nov, 2024
    A Fresh Take on Investing: Three Asset Managers Team up on Custom ETFs

    Burney, Rayliant and Clough Capital Partners formed a joint venture to create Powered by ETFs, which incorporates U.S. and international equities and alternative investments.

    A Fresh Take on Investing: Three Asset Managers Team Up to Offer Custom ETF Models

    Investing isn’t just about putting money into the market anymore; it’s about crafting a strategy that genuinely reflects your goals, values, and vision for the future. That’s why three major asset managers recently announced a partnership to bring custom ETF (exchange-traded fund) models to the market. With their combined expertise, these companies are introducing a fresh, personalized approach to ETF investing—one that makes it easier for people to align their portfolios with what truly matters to them.

    In this blog, we’ll explore what makes these custom ETF models unique, why personalization is becoming such a big deal in investing, and how this partnership could mean new opportunities for investors who want more than the typical “one-size-fits-all” approach.

    What’s So Special About Custom ETFs?

    When you hear “custom ETFs,” think of them as a blend of the best parts of ETFs (low fees, tax efficiency, and ease of trading) with a level of personalization typically reserved for large, actively managed funds. Here’s a breakdown of how they work:

    • Tailored Themes and Sectors: Instead of only following standard market indexes, these custom ETFs can focus on specific areas like technology, renewable energy, or emerging markets. If you have a particular industry or trend you believe in, custom ETFs allow you to get more concentrated exposure to it.
    • Personalized Risk Levels: With custom ETFs, you’re not boxed into a fixed risk level. Whether conservative, aggressive, or somewhere in between, these models allow for adjustments that reflect your comfort with risk. It’s a win-win for those who want something unique but don’t want to actively manage it day-to-day.
    • Values-Based Investing: More and more people want their investments to align with their values, especially regarding environmental, social, and governance (ESG) principles. Custom ETFs make it possible to invest in companies that prioritize sustainability or ethical practices, allowing you to back causes that are meaningful to you while still working toward your financial goals.

    Why Personalization is Gaining Traction in the Investment World

    In today’s world, one-size-fits-all just doesn’t cut it. We customize everything—our playlists, our workouts, our coffee orders—so why not our investments? Traditional funds have always been focused on capturing broad market movements, but now, many investors want more say in where their money is going.

    With custom ETFs, it’s about having options that go beyond simply tracking a standard index. Maybe you’re passionate about tech innovation, or perhaps you care deeply about sustainable agriculture. Whatever your priorities, custom ETF models allow you to put your money where your passions are. With three major players coming together, investors can expect an even greater range of choices to explore, whether they want to focus on emerging trends or balance out their portfolios with specific strategies.

    How Custom ETFs Offer More Than Just Flexibility

    Let’s break down why these custom ETF models are exciting:

    1. Low Costs Meet Personalization: Traditional personalized funds usually come with high management fees, but custom ETFs offer the same low costs ETFs are known for, combined with that added level of personalization. This is great news for anyone who wants to keep costs down while still having a portfolio that feels unique.
    2. Better Tax Efficiency: ETFs are generally known for their tax efficiency, and these custom models are no exception. Unlike mutual funds, which may generate capital gains (and trigger taxes) when managers trade within the fund, ETFs often use “in-kind” transfers that help defer taxes. This keeps more money working for you in the long run.
    3. Targeted Diversification: Custom ETFs offer flexibility when it comes to diversification, too. You don’t have to commit to a broad market index if you don’t want to. Instead, you can diversify based on the themes or sectors that you believe have the most potential. Whether it’s renewable energy, AI, or global infrastructure, you can build a portfolio that reflects your outlook on the future.
    4. Real-Time Adjustments: Markets change constantly, and custom ETFs allow for dynamic rebalancing that keeps portfolios aligned with an investor’s goals as things shift. If a particular sector becomes riskier or gains momentum, your custom ETF can adapt without needing daily involvement from you.

    How This Partnership is Changing the ETF Game

    When three respected asset managers team up, it’s a big deal because it means pooled expertise, shared insights, and access to a wider range of strategies. This partnership is about bringing high-quality, customizable ETF models to more people, not just large institutions or ultra-wealthy individuals. It’s about broadening access and giving investors more flexibility without sacrificing performance.

    By combining their resources and experience, these asset managers are building custom ETF models that reflect diverse investment perspectives. It’s not just about tracking trends—it’s about creating options that cater to various investor needs, from long-term growth to balanced strategies that help protect against volatility.

    Is a Custom ETF Right for You?

    Custom ETFs are opening up a new world of possibilities, but they’re not necessarily for everyone. Here’s a quick rundown of who might benefit most:

    • Investors Who Want a Say: If you’re interested in tailoring your portfolio but don’t want to actively manage it, custom ETFs offer that blend of control and ease.
    • Cost-Conscious Investors: Many investors shy away from actively managed funds due to high fees. Custom ETFs keep costs low while allowing for greater personalization.
    • Values-Driven Investors: If you care about ESG and want your portfolio to reflect those values, custom ETFs can incorporate companies that align with ethical, sustainable, or social causes.
    • Those Looking to Capture Trends: Custom ETFs make it easier to tap into emerging themes or trends like AI, clean energy, and biotechnology.

    The Future of Investing is Personalized

    This new partnership is a clear signal that asset managers are listening to investors who want more than just a passive role in their financial future. By offering custom ETF models, they’re creating opportunities to invest in what matters to us personally, in ways that weren’t as accessible before.

    With custom ETFs, you’re not just along for the ride—you’re choosing a direction, one that aligns with your values, your risk tolerance, and your unique outlook on the future. As this trend continues to grow, we’re likely to see more innovations that bring even greater personalization to the investing experience.

    If you’re looking for a way to make your investments reflect your unique vision, custom ETFs could be the next step toward a more tailored, purposeful investment strategy. In the ever-evolving world of finance, this partnership is an exciting reminder that the future of investing is about putting your money where your values, interests, and ambitions are.

    27Oct, 2024
    Charitable Giving – What Every Small Business Should Know

    To Give or Not to Give – What Every Small Business Should Know About Charitable Giving

    Charitable Giving

    Imagine walking into your favorite local coffee shop during the bustling holiday season. The aroma of freshly brewed coffee fills the air, and the barista greets you with a warm smile. But this time, there’s something different: a sign on the counter announces that a portion of today’s sales will be donated to a local food bank. As you sip your coffee, you can’t help but feel good knowing that your purchase is helping to feed those in need in your community. This small act of charitable giving not only enhances the coffee shop’s image but also builds customer loyalty and support.

    For small businesses, charitable giving is not just a seasonal activity; it’s a strategic move that can foster community connections, boost employee morale, and provide significant tax benefits. Let’s explore how charitable giving can be a win-win for your business.

    The Impact of Charitable Giving

    Research shows that 85% of consumers have a more positive perception of a product or company when it supports a cause they care about. In fact, 90% of consumers want companies to communicate how they are contributing to causes. By aligning your business with charitable efforts, you enhance your brand image and foster loyalty among your customers.

    Boosting Employee Morale and Engaging Customers in Charitable Efforts

    Charitable giving can also improve employee morale. Engaging your team in community service or fundraising activities creates a sense of camaraderie and purpose. Employees often feel more fulfilled when they know their efforts contribute to a greater cause, leading to higher job satisfaction and retention rates.

    Plus, involving customers in your charitable efforts can amplify your impact and foster a sense of community. Consider running campaigns that encourage customer participation, such as donation matching or “round-up” initiatives where customers can choose to round up their purchase to the nearest dollar to donate to a designated charity.

    A small marketing agency could organize a “Day of Service” where employees volunteer at a local shelter. This experience not only strengthens team bonds but also instills a sense of pride and purpose among employees, improving their overall morale. Moreover, when employees feel connected to their community, they are more likely to represent the company positively.

    Helping Hands

    I can speak to this from first-hand experience. As the Chairman of the Board for Habitat for Humanity for 6 years, we had countless companies who brought their employees together and united on a sole purpose, a day of giving. At first, the employees joked, “oh, a day off from work”, but by the end of the day, they were laughing, crying, and creating memories together. Watching people transform and understand how impactful they are to someone else’s adventure is the most rewarding experience for me.

    Understanding Tax Deductions

    One of the significant advantages of charitable giving for small businesses is the potential for tax deductions that every small business should include as a part of their tax saving strategy. Most charities operate as tax-exempt 501(c)(3) organizations, meaning donations to them are generally tax-deductible. These contributions can include cash, volunteered services, sponsorship of local charity events, or the donation of inventory and services.

    Charitable contributions can qualify as tax deductions against a business’s annual tax liability. Generally, up to 10% of adjusted gross income can be deducted. However, it’s crucial to consult with a tax professional to clarify which charitable contributions are deductible and to ensure compliance with IRS regulations.

    Example: A local hardware store could donate materials for a community park renovation project. This donation would not only help beautify the neighborhood but also qualify for a tax deduction. Such contributions can significantly reduce the business’s taxable income while making a positive impact in the community.

    Choosing and Researching Charities

    Selecting a charity that resonates with your business’s goals can make your charitable contributions more meaningful. For instance, if you operate a restaurant, partnering with a charity that collects food for the homeless can create a direct connection to your business’s mission. If you struggle to find an appropriate charity, consider choosing one that aligns with the passions of you and your employees. Before committing to a charitable organization, it’s essential to investigate its legitimacy. Tools like Charity Navigator can help you assess how much of donations go toward administrative, marketing, and other overhead costs. The IRS also offers a search tool to verify the tax-exempt status of organizations, ensuring that your contributions are going to reputable charities. When researching, look for organizations with transparency in their operations. A charity that publishes annual reports detailing how funds are used can provide reassurance to your business and your customers.

    Conclusion

    Charitable giving presents an opportunity for small businesses to make a significant impact in their communities while reaping potential financial benefits. By fostering a culture of giving, engaging employees, and selecting meaningful causes, small businesses can build a positive reputation and create lasting relationships with their customers and the community.

    As you plan your tax-saving strategies this holiday season and beyond, consider charitable giving. Remember that giving back is not just a seasonal activity—it’s a great small business idea. By incorporating charitable giving into your business model, you can create a win-win situation: supporting those in need while enhancing your brand and fostering a sense of community. Embrace the spirit of giving, and let it reflect in every aspect of your business.

    Supporting Your Charitable Mission with Business Loan Solutions

    As small businesses embark on their journey of charitable giving, partnering with the right financial resources can amplify their impact. At Business Loan Solutions, we understand the vital role that charitable contributions play in fostering community connections and enhancing brand reputation. Our mission aligns with yours: to create a thriving environment where businesses can give back and make a meaningful difference.

    We offer tailored financial solutions that empower small businesses to allocate funds toward charitable initiatives without compromising their operational needs. Whether it’s through flexible loan options that enable you to invest in community projects or providing guidance on integrating charitable giving into your business model, we are here to support you every step of the way.

    By collaborating with Business Loan Solutions, you can ensure that your charitable efforts are sustainable and impactful. Together, we can cultivate a culture of giving that not only benefits those in need but also strengthens your business’s connection to the community. Let’s work hand in hand to make your charitable vision a reality, creating lasting change and a positive legacy for your business and the communities you serve. Call us today to learn more at 813-995-9595!

    Schedule a call

    14Apr, 2024
    Indicator Insights: Using Economic Signs to Time Your Business Sale!

    Indicator Insights: Using Economic Signs to Time Your Business Sale!

    The best time for a business sale often aligns with strong financial performance and market optimism, typically seen in late spring or early fall. Of course, to optimize your timing to sell is when your business showcases its full potential and industry trends peak, ensuring you strike when the iron is hot for maximum gain. But what happens when the economic signs show slow down?

    Economic signs to time a business sale.

    When contemplating the sale in today’s market of your well established and seasoned business, is already a challenge market. Then as you consider retirement or face health-related challenges, timing isn’t just a detail—it’s everything. Maximizing your exit strategy is the art of timing your exit from the business can drastically affect both the financial outcome and your emotional closure. Economic indicators are valuable tools in this decision-making process, providing insights that can guide you to choose the most opportune moment to sell.

    Understanding Economic Indicators

    Key Economic Indicators to Watch

    When planning the sale of your business, keeping an eye on several crucial economic indicators can provide a clearer picture of the market environment. These include:

    • GDP Growth Rates: A strong GDP growth suggests a healthy economy, potentially more favorable business selling conditions.
    • Unemployment Rates: Lower unemployment rates typically signal economic strength, suggesting more spending power and business activity.
    • Consumer Confidence Index: High consumer confidence can indicate a willingness to spend, beneficial for business sales.
    • Stock Market Trends: A bullish stock market often reflects economic optimism, which can be positive for business valuations.

    Interpreting These Indicators

    Each of these indicators tells a part of the story. For instance, rising consumer confidence might suggest that it’s a good time to sell consumer-facing businesses. However, an experienced business advisor would caution about oversimplifying these interpretations. It’s the trend and the interaction between these indicators that often provide the most actionable insights.

    Just recently..

    I worked with the owner of a popular local restaurant who decided to sell his business as he was nearing retirement. We noticed signs of an upcoming economic downturn, as he was experiencing a gradual drop in consumer spending. Several other restaurants in the area have already closed, so deciding to list the business for sale just before the recession hits, was his optimal concern. We managed to close the deal favorably, and created a win-win for both the seller and the buyer.

    Sadly, we have many businesses that will not complete the sale due to the economic headwinds. Being flexible about price and terms will help your business appeal to future buyers. So consider whether you really want to sell now, or you’re willing to hang on for the next 10 years.

    Timing Your Sale for Retirement or Health Reasons

    Assessing Personal and Business Readiness

    Timing a business sale isn’t solely about market conditions; it’s also about your personal readiness. Are you financially prepared to retire? Does selling your business align with your health needs? These personal factors must be synchronized with economic opportunities for a satisfying exit.

    For business owners facing health issues, the need to sell might be more immediate. In such cases, understanding the current economic climate becomes crucial to ensure you do not sell at a disadvantage. Strategic use of economic indicators can guide you in making an informed decision even when time is of the essence.

    Strategic Planning for Selling Your Business

    Preparing Your Business for Sale

    Enhancing your business’s appeal through meticulous financial records, operational efficiencies, and transparent dealings can significantly influence the sale process. Employing professional advisors can also provide a competitive edge, offering expert insights into when and how to market your business for sale effectively.

    Exit Strategies and Their Economic Dependencies

    Choosing the right exit strategy—be it a gradual transition with a long-term involvement or an outright sale—depends significantly on prevailing economic conditions. A robust market could facilitate a straightforward sale, whereas a weaker economy might require a more structured exit to maximize returns.

    Case Study: Overcoming Economic and Personal Challenges

    Consider another client with a manufacturing business. He was already experiencing a downturn in sale and it caused high stress which resulted in serious health issues. By closely monitoring economic forecasts and preparing the business for sale meticulously, we successfully navigated through these dual challenges, securing a deal that respected his health circumstances and financial expectations.

    Conclusion

    Using economic indicators to time the sale of your business can significantly enhance the outcomes of your strategic decisions. Whether you are driven by personal reasons like retirement and health or looking for the best financial return, understanding and leveraging these signs can lead to a more controlled and beneficial sale process. Always consider aligning your personal goals with economic realities and seek professional advice to navigate this complex landscape effectively.

    At Business Loan Solutions, we advise businesses of all shapes and sizes to face challenges with a positive focus, strong determination and out-of-the-box thinking. If you have questions, set up a time to talk. Our advisors are experts in their field and can help you navigate these difficult times.

    Schedule a call
    1Apr, 2024
    Volatility Meets Opportunity: Why its the perfect time to flip businesses.

    Why It’s the Perfect Time to Flip Businesses

    They call it the Golden Era of Opportunity when volatility meets opportunity, and this is one of those times. It’s a swan event normally reserved for the market at large, but in today’s ever-evolving economic landscape, the concept of flipping businesses has surged to the forefront as an entrepreneurial strategy. This practice, akin to the real estate flip but within the corporate sphere, involves acquiring underperforming or undervalued companies, enhancing their value, and reselling them for profit. As we delve into this dynamic arena, we uncover why the present moment is an unparalleled opportunity for business flipping and the infinite possibilities to exit on the upside. Here’s why…

    Volatility meets Opportunity

    “It’s the Golden Era where Volatility meets Opportunity.”

    The Rise of Market Opportunities

    Sixty-five percent of the small business market it owned by the baby boomers who are at a stage of retirement or experiencing health relate issues. Thereby, the current market is teeming with opportunities for the keen-eyed investor. The digital transformation wave, accelerated by recent global events, has opened new avenues for growth and innovation. Enterprises that can swiftly adapt to online platforms, e-commerce, and remote work environments are witnessing exponential growth. This environment is ripe for entrepreneurs to identify businesses lagging in digital adoption, implement necessary changes, and position them advantageously for sale.

    Financial Flexibility and Market Dynamics

    Today’s market dynamics are characterized by fluctuation and unpredictability. However, within this volatility lies opportunity. Through diligent market analysis and trend identification, flippers can anticipate shifts and position their businesses to capitalize on opportunities where none exist. Interest rates remain historically high, providing a challenging financial environment for borrowing. This in-accessibility to capital challenges entrepreneurs to get creative in potential flip opportunities with minimized upfront capital. It’s more about the deal structure and exit strategy than the business itself. Moreover, the proliferation of venture capital, angel investors, and special funds, are hungry for the next big success story, ensuring that promising flips can secure the necessary funding to execute a successful transformation.

    Technological Advancements and Operational Efficiency

    The relentless pace of technological innovation offers a double-edged sword: while it renders some business models obsolete, it also creates avenues for revamping and introducing new revenue streams. Entrepreneurs adept at leveraging technology can transform struggling businesses into thriving enterprises.

    Not to mention that technological innovations have dramatically reduced the barriers to entry for optimizing business operations. Tools for digitizing the business, such as: streamlining processes, enhancing customer experiences, and automating marketing efforts are more accessible and affordable than ever. Entrepreneurs can leverage technologies like AI to quickly improve a business’s operational efficiency, thereby increasing its market value and attractiveness to potential buyers.

    Strategic Acquisitions for Competitive Advantage

    In a marketplace where competition is fierce, acquiring a business can be a strategic move to eliminate rivals or gain a competitive edge. Entrepreneurs can identify potential acquisitions that offer synergies with existing operations, providing a fast track to expanded market share, diversified product lines, or access to new customer segments.

    The Evolving Consumer Behavior

    Consumer preferences have shifted dramatically, with an increased emphasis on sustainability, personalized experiences, and ethical practices. Businesses that can pivot to meet these contemporary demands are better positioned to capture a significant market share when it is time to flip. Flippers who can identify consumer trends and reposition their acquisitions can drive substantial value growth.

    But don’t go it alone. Surround yourself with a team of experts who can contribute to the flip and execute action plans will position you to take advantage of this very unique market. As we look to the future, the practice of business flipping is not just an investment strategy but a testament to the transformative power of entrepreneurial vision and execution. In this golden era of opportunity, the question isn’t why you should consider flipping businesses, but why you haven’t started already.

    Business Loan Solutions can be that partner. Feel free to give us a call at 813-995-9595 or schedule a call.

    30Mar, 2024
    Investors Look Back to Look Forward – Is this a revisit of 2008?

    When I look at the state of affairs in today’s economy, I am quickly reminded about the Great Recession in 2008 and subsequent years. It was an impactful time for me personally. I had just left my high paying corporate job to be in commercial real estate full time. I remember thinking, ut oh….what did I just do? You see, even though I had been in real estate almost all of my life, as a newbie in the commercial industry fulltime, I had to learn a thing or two. I went from commercial real estate agent to commercial real estate therapist. I listened to investors who lost everything including $80m in one day, to the boats, cars, houses, wife kids and even the dog moved out. More importantly, I listened, I observed and I learned what not to do. I asked questions from veterans in the industry, what is your strategy to get through the awful financial time? Here’s a culmination of what I learned.

    1. Diversification is Key: One of the most significant lessons from 2008 is the importance of diversifying investment portfolios. Relying solely on one market or property type can expose investors to heightened risks during a downturn. Spreading investments across different assets and locations can act as a safety net during economic upheaval.
    2. Avoid Overleveraging: The 2008 recession demonstrated the dangers of excessive borrowing and leverage. Maintaining a reasonable debt-to-equity ratio helps investors weather the storm during economic downturns, preventing foreclosure risks and financial strain.
    3. Research Market Fundamentals: Understanding the local market dynamics is crucial for making informed investment decisions. Pay attention to factors such as job growth, population trends, and infrastructure development, as these elements can impact property demand and rental income stability.
    4. Prepare for Volatile Markets: Recessions often lead to volatile markets. Being prepared for fluctuations in property values and rental rates enables investors to react swiftly and adjust strategies to minimize potential losses.
    5. Cash Reserves are Lifelines: Maintaining sufficient cash reserves acts as a buffer during challenging times. Having readily available funds allows investors to cover operating costs, mortgage payments, and take advantage of new opportunities that may arise amidst the downturn.
    6. Long-term Vision Trumps Short-term Gains: During periods of economic uncertainty, it’s crucial to adopt a long-term investment perspective. Avoid speculative investments driven solely by short-term gains and focus on properties with stable income potential and enduring value.
    7. Adaptability and Flexibility: In times of recession, markets shift, and investor preferences change. The ability to adapt and be flexible with investment strategies is crucial to surviving and thriving in a changing economic landscape.
    8. Analyze and Stress Test Investments: Before committing to a real estate investment, thoroughly analyze the property’s financials and stress test them against different economic scenarios. This process can help identify potential vulnerabilities and allow for appropriate risk mitigation measures.
    9. Consider Contrarian Investing: Opportunities often emerge during economic downturns, and contrarian investing involves going against the prevailing market sentiment. Identifying undervalued properties with strong growth potential can lead to substantial returns when the market rebounds.
    10. Learn from Past Mistakes: Lastly, one of the most valuable lessons from 2008 recession is to learn from past mistakes. Analyze what went wrong during the downturn, both on a macroeconomic level and in individual investment decisions. This retrospective evaluation can help investors refine their strategies and build resilience for the future.

    While we know that this is not a repeat of 2008, this economic downturn will The upcoming recession may present challenges for real estate investors, but it also offers valuable opportunities for growth and learning. By reflecting on the lessons from the 2008 crisis and applying them to today’s market, investors can position themselves to make informed and prudent decisions. Remember, knowledge, adaptability, and careful planning are the cornerstones of recession-proof real estate investing.

    These are lessons from 2008 that my clients learned and I learned through them. As always, we are here to answer your specific questions and help provide a guide when it feels like things are going sideways. Call us at 813-995-9595. We got your back.

    22Oct, 2023
    INVESTORS: How to avoid financial ruin in CRE deals…

    Nearly 65% of investors in CRE do not know when their loans are due. As we navigate through the dynamic economic landscape of today, waiting for the bank to call and renew your loan is too late. With increasing interest rates for longer, understanding and leveraging information in the finance industry becomes more crucial than ever. Our commitment to guiding investors in safeguarding their capital and real estate investments remains unwavering. It’s disheartening to witness the impact of bankruptcy and foreclosures on investors, often resulting from manageable circumstances. To assist you in thriving in the commercial real estate market while avoiding financial pitfalls, here are a few strategies:

    avoid financial ruin
    1. Conduct thorough due diligence on your CRE loans and promissory notes. Many investors overlook the importance of in-depth analysis of their financial instruments. It’s essential to conduct comprehensive research on your portfolio to identify the history of your loans, including previous ownerships and payments. Surprisingly, some loans might be prepaid, which could reveal untapped equity in properties you’re involved with. This equity, once identified, can significantly enhance your investment strategy. Our expertise lies in uncovering these opportunities, providing a unique advantage to our clients.
    2. Secure your REEIP Trust Claim(s). A significant number of properties are likely eligible for a REEIP (Real Estate Equity and Interest Protection) Trust claim, largely due to overlooked or misunderstood financial transactions by banks. Identifying such scenarios can lead to reclaiming equity lost in previous transactions, essentially recovering value that rightfully belongs to you. This process is directly linked to thorough due diligence and understanding the nuances of your property’s financial history.
    3. Property Tax Adjustments. As property values begin to decline, especially highly valued commercial real estate, the local assessors office may keep the high valuation on record, thereby keeping your tax bill high. In order to change the valuation, you need to appeal the value with the property assessors office. This doesn’t happen over night, so do not wait until October 31st to begin the paperwork.
    4. Changing market trends and valuations. In today’s volatile market, it is also vital to keep abreast of changing regulations and market trends that can affect real estate values and investment viability. For instance, understanding the impact of interest rate changes, economic downturns, or legislative shifts can provide investors with a strategic edge, allowing for proactive adjustments to investment strategies. Additionally, leveraging technology and analytics can offer deeper insights into market conditions, property valuations, and investment opportunities, enabling more data-driven decision-making.
    5. Network of knowledgeable professional. Moreover, building a network of knowledgeable professionals, including real estate agents, attorneys, and financial advisors, can be invaluable. These relationships can provide you with access to insider knowledge, advice on complex legal and financial issues, and opportunities that may not be widely known to the public. Engaging with the community and participating in real estate forums and seminars can also enhance your understanding and strategies within the industry.
    6. Sell Now and live to invest another day. Finally, selling your commercial real estate portfolio can help mitigate risks associated with market volatility, especially if your loans are due in the next 5 years. Conversely, investing in different types of properties, such as residential, commercial, and industrial, or in various geographic locations, can spread risk and increase the potential for steady returns.
    7. Sustainable, Energy, and Government. If you need to hold on, now is a great time to invest in SEG programs that will reduce your carbon footprint and will increase the future value for when the commercial real estate market does return. Embracing sustainability and considering environmental impacts when making investment decisions can also appeal to a broader market, potentially increasing property values and attractiveness to tenants and buyers.

    The path to success in real estate investment is multifaceted and requires a holistic approach that encompasses market analysis, due diligence, and continuous learning. By adopting these strategies, investors can not only avoid common pitfalls but also position themselves for long-term growth and success in the ever-evolving real estate market.

    Investing in commercial real estate is a complex endeavor that requires a blend of knowledge, diligence, and access to the right information and resources. By staying informed about the financial mechanisms at play within the real estate industry, investors can make more informed decisions, navigate challenges more effectively, and unlock new opportunities for growth and stability.

    We have seen a few downturns and we are here for you to answer questions, provide guidance and help navigate these unknown and challenging times. Call us at 813-995-9595.

    26Aug, 2023
    It’s Baffling How Little Thought Owners Put Into Maximizing Business Value When Preparing for a Sale

    When the time comes to sell a business, owners naturally want to obtain the highest possible return on their investment, right? Unfortunately, many owners overlook the significance of how to prepare for a sale, leading to missed opportunities and undervalued businesses. Maximizing business value not only ensures a more substantial financial gain but also signifies the culmination of years of hard work and dedication.

    maximizing business value prepare for a sale

    I am always shocked speaking to business owners when they have finally made the decision to sell; invariably, the price is too high and they leave money on the table at the same time. Kelly, how can the price be too high and be leaving money on the table? That is a great question. They make a classic mistake….going for a valuation too soon and not covering all of their basis.

    As business owners, the thought of selling your company might not be at the forefront of you mind, much less considering maximizing business value because selling is often an emotional decision rather than a strategic one. It’s not your fault. You have been told to “get a valuation up front, so then you know what you’re dealing with.” Unfortunately, that’s all wrong. However, it is crucial for entrepreneurs to recognize that maximizing the value of their business should be a continuous and strategic process. This article delves into the importance of preparing a business for sale, outlines steps to maximize its value, and emphasizes the human aspects and buyer demands that can significantly impact the overall worth of your company.

    Understanding the Sale Process

    Before delving into how to maximize business value, it’s crucial to understand the sale process itself. Preparing for a sale involves meticulous planning, financial evaluation, and strategic decision-making. Some common mistakes include undervaluing the company, neglecting necessary improvements, and insufficiently considering legal and compliance matters. To really understand the complexity in today’s market of selling your business, check out Chapter 8 “Due Diligence and Closing the Sale” from Maximizing Your Exit Strategy: A Guide To Selling Your Business in Today’s Market. Click Here. In this chapter you will learn the thoroughness of the due diligence process and the steps it takes to close the sale. It takes more than wishful thinking; it takes dedication, persistence and patience.

    Steps to Maximize Business Value

    Conduct a Business BreakThrough Session

    In nearly every business book I’ve read, they recommend getting an appraisal or business valuation as the starting point. So, everyone runs to get the business valuation first. However, that’s approaching the process of selling your business backwards. The first step in preparing for a sale is to conduct a comprehensive business e-valuation called a BreakThrough Session (BTS). A BTS systematically evaluates your business from a 5-point inspection perspective, i.e. finances, marketing/sales, operations including technology, production/equipment, and human resources.

    Learn more about getting your personalize BreakThrough Session.

    Schedule your 30-Minute Strategy Session

    Professional appraisals are important, but it is too soon in the sales process and certainly not the place to start. We want to dig deep into your company provide you with an accurate understanding of your company’s opportunities to maximize business value. This third-party unbiased assessment serves as the foundation for subsequent improvement strategies, and eventually a business appraisal that has real concrete value.

    Improve Financials and Profitability

    Buyers are naturally attracted to businesses with healthy financials and a track record of profitability. Prior to a sale, owners should focus on improving financial metrics, reducing unnecessary expenses, gathering the supporting documentation and maximizing revenue streams.

    Strengthen Customer Relationships

    Strong customer relationships not only contribute to current profits but also enhance the company’s long-term value. Engaged and loyal customers are more likely to attract potential buyers and ensure a stable customer base post-sale. Plus the cost of good-will is priceless.

    Enhance Operational Efficiency

    Efficient operations result in increased productivity and reduced costs. Streamlining internal processes and optimizing resource allocation can substantially boost a company’s value. Managing inventory and cleaning out the closets are a good first step to supporting the financial picture.

    Invest in Marketing and Branding

    A well-established brand and effective marketing strategies can significantly differentiate a business from its competitors. Increased brand recognition can attract more potential buyers and elevate the company’s perceived value. All too often, companies overlook the importance of branding your brand in marketing materials and telling one consistent story across the board.

    Develop a Skilled Workforce

    Beyond financials and strategies, the human aspects of a business play a pivotal role in determining its worth. A strong company culture, dedicated employees, and a positive public image can sway potential buyers in favor of the business.

    So, regardless of whether you have a formal human resources department, a competent and motivated workforce is a valuable asset. Business owners should invest in employee development, talent retention, and succession planning to demonstrate a sustainable and well-organized business structure.

    Diversify Revenue Streams

    Relying heavily on a single product or service can be risky for potential buyers. Unless they are looking to expand or supplement their own products and services, you might find an uphill battle to sell your company at the highest valuation. Diversifying revenue streams reduces this risk and positions the business as adaptable and capable of withstanding market fluctuations.

    Protect Intellectual Property

    Intellectual property, such as patents, trademarks, and copyrights, can significantly impact a company’s value. Ensuring proper protection of these assets is crucial during the sale process.

    Streamline Legal and Compliance Matters

    Untangled legal and compliance matters instill confidence in buyers. Addressing any outstanding legal issues and ensuring compliance with relevant regulations is essential. This also means, buyers will look for potential risks during the due diligence. By identifying and mitigating these risks in advance, sellers can maximize business value and make it more attractive to buyers.

    Considering Perplexity and Burstiness in Maximizing Business Value

    Apart from the traditional aspects of business value, it’s essential to consider perplexity and burstiness. Perplexity refers to the complexity and uniqueness of a business that makes it difficult to replicate, adding to its value. Burstiness refers to the potential for rapid growth and expansion, demonstrating the untapped opportunities that can attract buyers.

    Engaging the Buyer: The Human Side of Business Value

    Once you have your house in order and operating at peak performance, you want to engage with the buyer and make an irresistible offer they can’t refuse. To attract multiple buyers, create a compelling and professional presentation (commonly called a “pitch deck” or “information memorandum”) that showcases your company’s value proposition, financials, operations, management team, and future opportunities. It should tell the story of where you started and where the company is headed. Demonstrate potential for future growth that might involve developing new products, expanding into new markets, or increasing marketing efforts.

    By following these strategic steps and considering both financial and human factors, you can significantly enhance the worth of your business. This preparation will not only lead to a more profitable sale but also serve as a testament to their hard work and dedication.

    Want to learn more about maximizing your business value?

    BLS Funds
    27Jun, 2023
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