Streamlining Payment Processes for Small Business Success

In this episode of Business Beyond DIY, host Steve Krausse addresses the common discomfort business owners feel when collecting money owed to them. He provides practical and actionable steps to streamline getting paid, ensuring it becomes an objective process. The episode covers four key actions: getting paid in advance, clarifying payment terms, making payments easy for customers, and controlling the credit offered to clients. Steve emphasizes the importance of maintaining clear communication, using digital invoicing systems, and considering the pros and cons of taking legal action or using third-party lenders for consumer credit. Additionally, he offers a downloadable structured collection procedure to assist businesses in handling overdue payments effectively.

Download the Example Collections Process here: http://nocobc.link/bbdiy010

00:00 Introduction and Host Welcome
01:10 The Importance of Getting Paid
01:23 Four Actions to Streamline Payments
01:53 Getting Paid in Advance
04:57 Clear Payment Terms
07:38 Consequences of Late Payments
14:36 Making It Easy to Get Paid
18:34 Controlling Credit
24:05 Conclusion and Final Thoughts

Navigating the Complexities of Input and Participation in Business Management

Input vs. Participation | Business BeyonDIY | 009

Show Notes: https://nocobc.link/bbdiy009

In this episode of Business Beyond DIY, host Steve Krausse explores why a proposed document control system faced implementation challenges despite incorporating input from various stakeholders. He emphasizes the importance of distinguishing between input and participation in a business setting. By defining both terms and elaborating on their benefits and risks, Krausse illustrates how to effectively gather valuable input and foster meaningful participation. He also shares practical advice on setting realistic expectations and maintaining control in collaborative environments. This episode offers actionable strategies to help business owners improve processes while ensuring employees feel heard and valued.

00:00 Introduction and Initial Expectations
00:37 Welcome to Business BeyonDIY
01:25 Defining Input and Its Benefits
04:29 Risks and Challenges of Input
06:57 Understanding Participation
07:58 Risks and Challenges of Participation
12:36 Combining Input and Participation for Success
20:05 Practical Tools and Templates
23:22 The Importance of Giving Credit
25:02 Conclusion and Lessons Learned

Change is hard… Does it have to be? | Business BeyonDIY | 008

Overcoming Resistance: Effective Strategies for Change Management in Small Businesses

In this episode of 'Business Beyond DIY,' host Steve Krausse discusses the common perception that 'change is hard' and explores whether it truly has to be that way for small businesses. Steve identifies factors contributing to resistance to change, such as discomfort with unfamiliarity and perceived threats to job roles. He offers practical strategies for motivating employees by aligning their self-interests with business goals, suggesting mechanisms like profit sharing, improved working environments, and better tools. Steve emphasizes the importance of ensuring that the benefits promised to employees are actually realized to foster a positive attitude toward change. The episode concludes with an invitation for small business owners to share their experiences with change management to shape an upcoming comprehensive online program.

00:00 Introduction: The Myth of 'Change is Hard'
00:51 Welcome to Business Beyond DIY
01:50 Why Do We Perceive Change as Hard?
04:05 The Necessity of Change in Business
04:52 Overcoming Resistance to Change
07:07 Motivating Employees for Change
09:10 Creating a Supportive Work Environment
10:06 Implementing Effective Change Processes
12:57 Training and Leadership Development
15:54 Conclusion and Call to Action

Participate in my anonymous small business process improvement survey!
http://nocobc.link/nocobc001smbchange

Reference
6 Reasons Why Change Management Fails and How To Avoid Them
Prosci
https://www.prosci.com/blog/why-change-management-fails

How will they value my business?
That's what we're asking when we start to look at our exit strategy.
If you research this you'll find what looks like a lot of possible valuation methods.
Today I'll talk about what they mean and see if we can simplify the process.
Spoiler alert... we can!

Chapter Markers
TBD after the show!

Because the stream cut me off... Remember that doing it yourself doesn't mean going it alone! :)

Need Business BeyonDIY on the go? Check your favorite podcatcher!
https://podcasts.apple.com/us/podcast/business-beyondiy/id1613986344?uo=4
https://open.spotify.com/show/2sITlBIUpfkijWhNeWMtAg
...and many more!

Contact
[email protected]
https://beyond50percent.com

Let's Talk
https://b50p.info/stephens_calendar

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/

Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

If you’re running a product-based business you’re dealing with inventory. Inventory management has a direct impact on the profitability of our business. 

How easy it is to transfer not only our physical inventory but the processes, sources, and relationships that power our inventory will have a direct impact on how the value a potential buyer will place on our business.

At first glance, you might think inventory is one of the easiest parts of a business to put a number on when you’re getting a business ready to exit.

Or is it?

Do you use the balance sheet value?
Maybe you should use the retail value?
What about the liquidation value?
Will the buyer be able to source material at the same cost?
How does shelf life impact the value of your inventory?
What resources are required to store it?

Maybe it isn’t as simple after all.

Even though it isn’t as straightforward as you might think at first, understanding the bigger picture of inventory can help you assign an accurate value to the inventory in a transaction.

More importantly when you’re running your business ‘ready to exit’ you can take a few key steps to make your own inventory management easier and provide evidence to your buyer that critical elements of inventory management are transferable to new ownership.

This reduces the short-term risk of supply/production interruptions during the transition between owners and provides confidence in the long-term availability of supply.

Today we'll talk about:
Inventory Value
Sourcing
Storage

Watch the livestream recording on YouTube: https://youtu.be/aVGaVm3YA9Q

Contact
[email protected]
https://beyond50percent.com

Let's Talk
https://b50p.info/stephens_calendar

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Valuing Your Business | Seller's Discretionary Earnings

When it's time to value your business it can quickly seem overwhelming.

It doesn't have to be!

There are a number of standard valuation methods that are used and in this episode, we'll go through one of them called 'Seller's Discretionary Earnings' or SDE.

We'll talk about:
1. What are Seller’s Discretionary Earnings?
2. When the Seller's Discretionary Earnings method should be used.
3. How SDE is calculated - with two examples.
4. Resources available to help you DIY.

Download the sample worksheet: https://b50p.info/valuation-calculator

Contact
[email protected]
https://beyond50percent.com

Let's Talk
https://b50p.info/stephens_calendar

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Resources
https://www.ibba.org/resource-center/glossary/#:~:text=Seller's%20Discretionary%20Earnings%20(SDE)and,Net%20are%20other%20terms%20used
https://www.investopedia.com/terms/e/ebitda.asp
https://corporatefinanceinstitute.com/resources/knowledge/finance/sellers-discretionary-earnings/
https://www.midstreet.com/blog/sellers-discretionary-earnings-explained-with-examples
https://www.benitago.com/the-exit/sde-meaning/
https://www.exitstrategiesgroup.com/understanding-sellers-discretionary-earnings

There are no absolutes when it comes to ‘warning signs’ and just because a warning sign exists doesn’t mean there is a substantive problem with a deal.

Warning signs are merely what I call notifications for specific due diligence.

You may see warning signs in the initial numbers, the shared business plan, or other documentation. It is equally valid to explore warning signs that you just sense. If something feels off to you, explore that feeling enough to find verifiable ways to either confirm or disprove the concern.

Today we’ll cover three specific warning signs to watch out for.

Reason for Selling
Price vs. Value Proposition
3rd Party Anxiety

Contact
[email protected]
https://beyond50percent.com

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Get off to a good start when you’re ready to sell your business by putting these three things in place as early as possible.

I know you’re thinking about how much you’ll get. You might even be working on the project that you want to start after the sale, whether that’s your next venture, a long vacation, or retirement.

Bear with me though, it will be worth it.

While these are key elements of a successful sale, they are for you not necessarily for sharing. That means the format and formality can be whatever you need them to be.

Let’s get started:

Explain why you’re selling.
Establish your timeline.
Get your business ready to sell.

Contact
[email protected]
https://beyond50percent.com

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Why are you are buying a business?

There’s no wrong answer but understanding YOUR answer matters!

In some circles, the word ‘why’ is avoided and there are some good reasons for that. It can be off-putting and tends to put us on the defensive as we try to rationalize our position on a subject.

“Why did you do that?”
“Why is that important?”

So, it makes sense that “Why are you buying a business?” might immediately make us uncomfortable.

Answering this question isn’t about justification or defense.
It isn’t about defending your position.

It isn’t even about answering someone else who might pose the question to you.

It’s all about you and understanding what’s driving you to take the entrepreneurial leap.

Contact
[email protected]
https://beyond50percent.com

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent

Q: How do you get the best value out of your business when you’re ready to exit?
Q: How do you get the best value out of your business while you’re still running it?

A: Good News! We can use the same work to meet both outcomes!

As entrepreneurs & business owners, it’s easy to get wrapped up in the doing. This puts both the day-to-day operational performance and our long-term value generation (exit value) out of focus.

The ‘doing’ is important. In fact, it’s critical, it’s what our customers pay for. What is getting done to serve customers pays for salaries, rent, utilities, raw materials, and everything else.

Set aside the day-to-day operation and there are two values that may seem more abstract. You know they’re important but the operations side of things always seems to pull you away.

Value During Ownership
Value on Exit

Contact
[email protected]
https://beyond50percent.com

Connect on Social
LinkedIn | https://www.linkedin.com/company/beyond-50-percent
Instagram | https://www.instagram.com/beyond50percent/
Facebook | https://www.facebook.com/beyond50percent/
Twitter | https://twitter.com/beyond50percent

Check out my show on Twitch | https://www.twitch.tv/beyond50percent