Typically, I write about what I refer to as “successful closely held and family businesses” that have minimum values on the order of $5-10 million or more, and often, much more. But many small businesses don’t have and may never have had such levels of value. Today’s post focuses on two baby boomer small business owners, Martin and Steve, whose businesses are worth about $2 million each. Martin and Steve have taken two different paths in their treatment of the earnings of their businesses, and have widely different business end games and retirement prospects as a result.

In our prior post, we discussed favorable reasons why businesses change hands. In this post, we take a look at the other side of the coin – the not-so-favorable reasons why businesses change hands. Unfortunately, many businesses sell or change hands under less favorable, even downright unfavorable, circumstances. The list of unfavorable circumstances that cause a business transfer is longer than the list of favorable reasons. Let’s take a look at some of these not-so-favorable reasons.

Businesses change hands for a variety of reasons, only a few of which might be considered positive from the viewpoint of selling owners. This post examines three reasons and provides commentary on the necessity of being READY for sale – even when/if your business is not up for sale.

As we embark on addressing the question, Is Your Business READY for Sale?, let’s talk about the ideal time to sell a business. As it turns out, this is an important question.

Recent surveys suggest that a large number of Americans and baby boomers do not have wills or a healthcare proxy, and often wills lag personal situations and desires. Conversations can be difficult, and the difficulties of an already difficult situation are compounded. However, unplanned situations happen. Consider these steps to do something, providing structure within which you can work.

As optimistic business owners, we tend to think that bad things happen, but to other people. So we wait to do things we know we should do. Financing that is readily available today to accomplish diversification objectives may not be available tomorrow. This can happen because of adverse events at your business, changes in the availability of financing, or both. Don’t wait.

CARRY is a simple reminder to do a few little things when you have the opportunity, making a difference in your business life.

Little things in our lives can have big consequences. Who would have thought that the position of my wallet would cause such trouble?

Begin with the assumption that one of the primary purposes of closely held and family businesses is to create wealth for their owners. Despite this driving purpose, the owners and managers of many private businesses engage in strategies that actually destroy wealth for their owners.

Carrying excess cash on your balance sheet is not a good thing. Learn why in this post.