Build Value By Choice

By Nana BonsuBusiness Entrepreneurship Education How To Marketing

Build Value By Choice episodes

December 15, 2021Employee Stock Ownership & Business Worth; Jason Pittman, Businesses Brokerage
As a business owner in manufacturing, what should you be looking out for when exit planning, especially in the metal and food production fields? This week on Build Value By Choice, Nana is joined by President and CEO of the business brokerage company, ExitAdvisor, LLC, Jason Pittman. Jason is not just an expert but is also from the Chicago area which is a hotbed for the manipulation of metals and food processing industries.

KEY TAKEAWAYS
About 41% of owners prefer family transitions, 19% are looking towards an employee stock ownership model, 14% are leaning towards a management buyout, only 7% want to be bought out by their partners, and 10% to be bought out by an external partner.
The wholesale and food production side will probably have lower margins as you’re supplying large retail chains. One of the first problems you will run into is running out of space.
Inflation tops the list of concerns for small business owners, followed by supply chain issues, then labor, and Covid concerns.
Companies looking to tackle their labor issues should look to get their name out there to young people who will shortly be entering the workforce.
Talk to your accountant about changes you can make now to increase the value of your business. Things like vacation homes and travel expenses make your business less attractive to potential buyers.

BEST MOMENTS
‘A lot of people are planning for years on their future and all they’ve really done is place an arbitrary number on their business worth’
‘Studying the success of somebody without understanding their drivers for success could be a disaster’

EPISODE RESOURCES
Leave a comment or question on the Build Value By Choice Facebook community page
Get your free value builder score here bit.ly/get-free-valuation
Get more resources on https://infhorizons.com/podcast
Jason on LinkedIn
exit-advisor.com
Don’t forget to subscribe to the podcast and share it.

ABOUT THE GUEST
Jason is a business broker and certified value builder in the industrials and manufacturing industries. He's the President and CEO of the business brokerage company, ExitAdvisor, LLC.

PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.

ABOUT THE HOST
Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who's applying his experience and knowledge from working in various ways to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business...
36 min
December 08, 2021Risk Management Strategies (& Diversification) with Brian Trczynski
Following on from the last episode, Brian Trczynski returns to join host Nana Bonsu this week on Build Value by Choice. He’s back to discuss various risk management strategies for events such as owner's death, disability or business transfer/transition. In this podcast, you’ll learn how to protect your business, avoid silent killers of your business value, and set your business up to generate higher value and exit without regrets.

KEY TAKEAWAYS
Once you've obtained your business valuation (linked below) and an income replacement value from your wealth management advisor, a business owner's next priority is to protect the value they already have by mitigating their personal/financial/business risks.
Most businesses have a value gap, in other words they’re not operating best in class relative to their industry peers. There is value they’re leaving on the table because there are operational gaps in their business they can improve.
The challenge to business owners addressing risk, is that if the task seems too big then they often just do nothing. Addressing risk should be done at a manageable pace with achievable tasks.
The thing that makes your business attractive to prospective buyers and sellable is the fact that it will be able to be profitable for someone else. If a buyer comes in and sees a lot of risks like an owner dependent business, not having customers who stick with you, and a lack of diversity in clients, then the number they value your business at gets lower and lower.
You have to have a dominant market share, you have to have a recurring revenue model, there has to be a barrier for entry to competitors, you have to have product differentiation, and you have to have a strong brand. If you have these things in place, regardless of your size, then you will be very appealing to a potential buyer.

BEST MOMENTS
‘Before you can grow you’ve got to protect’
‘A business is not a liquid asset’
‘Diversification is one of the most important things a business owner has to understand’

EPISODE RESOURCES
Leave a comment or question on the Build Value By Choice Facebook community page
Get your free value builder score here bit.ly/get-free-valuation
Get more resources on https://infhorizons.com/podcast
Don’t forget to subscribe to the podcast and share it.

PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.

ABOUT THE HOST

Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who's applying his experience and knowledge from working in various to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees,...
39 min
December 01, 2021Income Replacement Value is Room For Scale & Growth with Brian Trzcinski
With the familiar pattern of some form of a global crisis almost every decade, what should business owners be thinking about when it comes to the concept of income replacement of their business before this decade is over? This week on Build Value By Choice Nana is joined by Brian A. Trzcinski, Director of Business Market Development at MassMutual to discuss these critical topics around making sure your exit strategy is not just beneficial for your business, but beneficial for you too.

KEY TAKEAWAYS
Income replacement value is about what the business owner needs the business to be worth in order to maintain the current lifestyle they have built for themselves when they retire.
Income Replacement Value Valuation Method (How much will I need. Take the Personal value you receive in terms of compensation and other benefits and apply a recap value percentage to it, say 3/4/5%). Market Value Valuation method (Earnings * Multiple (Affected by things you can’t control such as: your industry, overall economy & capital markets and some things you can control (8 drivers))). Income replacement is about what the owner needs the business to be worth versus what they think it's worth.
An Exit Planning Institute survey stated that 70% of businesses never make it to market. Of the 30% that do, only 16% are actually able to be sold. Of up to 250,000 businesses that are going up for sale, only about 15,000 of them are going to sell at the prices that the business owner set out to get at the beginning, all the rest are not going to even make a due diligence, or they're going to sell with some concessions.
According to the 2018 MassMutual Business Owner Perspectives Study, 10% of businesses say they don’t ever plan to exit. 66% say they don’t know all of the available exit options. 13% of business owners sought business valuation to know if the value is sufficient to fund their retirement. Nearly half of the business owners surveyed don’t think about retirement or can’t imagine ever retiring. 70% have no idea when they will retire.
26% of owners surveyed stated that their source of retirement income will either come from the sale of their business or the income from their business. However, in reality, three out of four business owners have less than $500,000 saved in their retirement accounts. That means business owners are underestimating their financial reliance on the business post-retirement. Many may be forced to rely on the proceeds from the sale of the business or continue to receive income from the business to fund their retirements.
According to the 2017 Exit Planning Institute Survey, 72% of business owners don’t believe their exit will impact their lifestyle.

BEST MOMENTS

‘I knew a business owner who ran expenses through a personal credit card and the rewards earned paid for a family vacation every year’
‘We call this the keep or leave decision’
‘If you’re not thinking about it already you don’t want to wait for the next crisis to come around’

EPISODE RESOURCES

Leave a comment or question on the Build Value By Choice Facebook community page
Get more resources on https://infhorizons.com/podcast
Connect with Brian on Linkedin
Don’t forget to subscribe to the podcast and share it.

PODCAST DESCRIPTION

Hosted by Nana Bonsu of...
32 min
November 24, 2021 Shrink Tax Expenses & Scale Profits with Ryan Gardner
Taxes ranked second as the single most important problem for small businesses in the US, only lower than Quality of Labor. In this episode of Build Value By Choice, find out what business owners need to stop doing now to prevent you from paying up to 45% in taxes. Guest Ryan Gardner is an attorney and joins Nana to discuss these topics as well as minimizing tax expenses to maximize profits.
51 min
November 17, 2021Amy Wirtz- Why Valuation Metrics Matter to Family Businesses (Generational Transfers)
Find out all about generational transfers, valuation metrics for family business, and so much more on this week's Build Value By Choice. Host Nana Bonsu of Infinite Horizons is joined by Amy Wirtz, consultant with The Family Business Consulting Group, specializing in shareholder value enhancement. Hear all about the work Amy does and her advice for exit planning in your business.
get your free valuation with Nana here https://bit.ly/get-free-valuation
KEY TAKEAWAYS
Family businesses only have a 30% success rate through the second generation, 12% through the third generation, and 3% through the fourth generation and beyond.
You need a true valuation of your business even if you’re just passing it along to the next generation due to tax laws.
Most of the families Amy works with don’t know that your valuation formula or metric can be different for different reason.
You should make sure that the valuation of your business and the next steps for the business aren’t a surprise to your family in the event of an unexpected death. You should make these things readily available to your family, updating them as and when.
CEOs are often not getting advice before they go to board meetings and get grilled on why they're not getting the expected ROI.
Some of the most successful family businesses change what they do. The world changes so your business must be able to do that too.

BEST MOMENTS
‘The issues of sweat equity and taxation drive how we define how we’re going to value a business’
‘Waiting until after your dead until after you’re dead for your family to find out what happens to your business is cowards’
‘Good shareholder stewardship must involve knowledge of value’
'We no longer count liquidity as failure’

EPISODE RESOURCES
https://infhorizons.com/
Leave a comment or question on the Build Value By Choice Facebook community page
Buy-Sell Agreements for Closely Held and Family Business Owners by Z. Christopher Mercer
Getting Things Done by Dave Allen
https://www.thefbcg.com/
[email protected]

ABOUT THE GUEST
Amy Wirtz is a consultant with The Family Business Consulting Group specializing in shareholder value enhancement, business planning processes, and transition implementation of management, leadership or ownership of a business. Her passion stems from growing up in her grandparents’ second-generation business, surrounded by the wonderfully complex matters a family business presents.
Amy brings a diverse range of experience to family enterprises by serving in various roles such as an exit-planning advisor, collaborative lawyer, mediator, arbitrator, lecturer, and teacher. While no longer practicing law, today Amy focuses on providing creative solutions to family business engagements and presenting to relevant audiences. She also helps business owners use their advisors as a resource team to create optimal value.
Amy serves on the Advisory Board for NewComer Farms located in Bryan, Ohio; M&D Farms located in Napolean, Moore Industries in Montpeliar, OH, and Neal’s Design in Cincinnati, OH. She frequently speaks on the topic of business succession at conferences including the Jellystone Symposium (2019,2018); Association of RV Parks and Campgrounds National Conference...
49 min
November 10, 2021Billing Cycles? Cash Flow? How a Lack of Financial Acumen Ruins Business with Jayne McQuilla
Are you looking to become a more competent business owner by learning how to transform your business, so that it will eventually improve your valuation? If so then Join Nana Bonsu in this week's Build Value By Choice where he chats with Jayne McQuillan of Journey Consulting. Find out all about billing cycles, cash flow, and how cash flow differs from profitability.
get your free valuation with Nana here https://bit.ly/get-free-valuation
KEY TAKEAWAYS
You should monitor cash flow report every month. Not just monitor it, but really understand it.
Monitor Accounts Receivable; Accounts Receivable Aging; and Accounts Payable reports every week.
How and when are you billing. You should know how quickly you’re paying and if you’re paying in advance. Keep good relationships with your suppliers but slow down how you send cash out.
Sit down with your accounting team to understand how they put the numbers together.
Understand EBITDA on your income statement. EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization.
Factors that impact your EBITDA include having systems and documentation, recurring revenue, a competent management team among others.

BEST MOMENTS
‘During the financial crisis many profitable businesses went out of business because they didn’t have cash’
‘Slow it down but maintain relationships with your suppliers’
‘It’s better to take a hit on the tax side rather than the value side’

EPISODE RESOURCES

https://infhorizons.com/
Leave a comment or question on the Build Value By Choice Facebook community page
Training mentioned on the interview: Financial Acumen Training | Journey Consulting
Books mentioned on interview: Seeing the Big Picture by Kevin Cope; Unscramble Your Numbers by Amanda Fisher; Built to Sell by John Warrilow

ABOUT THE GUEST

Jayne founded Journey Consulting in 2007, combining her passion for business with her passion for people, to comprehensively serve the needs of family owned and privately held businesses. Her passion for business has roots in her extensive experience first at Price Waterhouse in Milwaukee and later in executive roles with several family owned and privately held businesses. Those experiences gave her incredible perspective on the needs and challenges business owners face in an increasingly competitive and uncertain environment. They also taught her how to be successful despite external conditions.
Jayne is a recognized expert in exit planning. She is a Certified Exit Planning Advisor (CEPA) and one of the elite advisors for exit planning in the country. She was instrumental in establishing the northeast Wisconsin chapter of The Exit Planning Institute. She strongly believes in educating owners on the exit planning process. Proper planning and business strategy add value to the business and gives the owner flexibility and options.
[email protected]
https://www.journeyconsult.com/

PODCAST DESCRIPTION

Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement....
36 min
November 03, 2021CPA Perspective on Tax Law (Does it affect business & Growth)with Martha Sullivan
Do you know what to do and what not to do in the next six months due to the proposed tax law changes? If you don’t, this week’s Build Value By Choice will tell you everything you need to know as Nana is joined by expert guest Martha Sullivan. Find out about how a Certified Value Builder or Exit Planning Advisor could be vital to your plans moving forward.
get your free valuation with Nana here https://bit.ly/get-free-valuation
KEY TAKEAWAYS
Wall Street Investment banking firm Goldman Sachs sponsored a survey four months ago in which they found that only 13% of small business owners say that the proposed tax policy changes debated by Congress will have a positive impact on their business.
Estate tax is now an issue for more people as the tax threshold has lowered significantly.
Business Owners should get a Certified Value Builder or Exit Planning Advisor to lead a board of advisors to help them ask the right questions re: tax law changes and collaborate to form a holistic perspective that the owner can make and implement the right decisions on.
It would be a foolish idea to try and push a transaction through before the capital gains tax changes if negotiations haven't already been started, it will take months to properly negotiate and structure a deal.
Always keep tax issues in mind as it will have vast implications on the nature of the negotiations and structure of any buy-sell deals. But don’t let the tax lead the deal.

BEST MOMENTS

‘If you don’t have an estate planner in place then I don’t care what your wealth levels are, do it as a gift to your family’
‘It’s prudent to pause and think about the long-term bigger implications’
‘Don’t let the tail wag the dog’

EPISODE RESOURCES

Examples of some of Martha’s work can be found in Forbes – “At Tokyo Olympics, Simone Biles Provides 7 Lessons For Business Executives” and “Royal Family’s Crisis Has Lessons For All Family Businesses,”
Martha’s blog can be found at In Business Magazine
She was recently featured in the Exit Planning Institute’s Whitepaper “A Look Inside the Unique World of - Value Creation” and The Authentic Business Adventures podcast.

ABOUT THE GUEST

A one-time information systems consultant turned her most brilliant act of rebellion into a career as a CPA, CFO, COO, and profit & value growth strategist, consulting to hundreds of clients and colleagues over the past three decades.
Martha Sullivan, President of Provenance Hill Consulting, LLC, founded her firm with one purpose: to help business owners build, buy and sell strong, profitable companies that are attractive enough for someone to want to buy it when the owner decides to chase their next adventure. It’s not just a transaction at that point; it’s a transformation.
Maximizing the value and transferability of a company requires...
38 min
October 27, 2021 How to Make My Business Sellable with Jason Pittman
Companies are moving quickly and decisively in the manufacturing industry to digitize their business. 95% of business owners say the pandemic has affected their company and this digitization is a form of future proofing. This week on Build Value By Choice, Nana is joined by President and CEO of the business brokerage company, ExitAdvisor, LLC, Jason Pittman, to discuss all things digitization and how to make your business more sellable.
31 min
October 20, 2021 Ray Croff - Retain Your Skilled Staff (for Business Growth)
How do you locate qualified employees and how do you keep hold of skilled employees? Those are just some of the questions Nana Bonsu and this week’s guest on Build Value By Choice, Ray Croff will answer. Ray is the CEO and President of Mobius Financial Advisors, which provides Financial Planning and Business Advisory Services for Entrepreneurs and Families.
32 min
October 13, 2021 Build Value By Choice – Optimal Decision Making with Matt Johnson
Build Value By Choice – Decision Making with Matt
30 min

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This show aims to serve small business owners who want to grow their businesses, while reducing their own personal involvement. We do this through a

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Build Value By Choice

Build Value By Choice episodes

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