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Last Update: Tuesday December 12, 2017

The web created more transparency than anybody ever anticipated.

Exit with your sweat equity, but leave the heart



The world:  Most of us small business owners do OK competing with the big businesses in our industries or we don't survive. But when it comes to the exit strategy and succession planning, we fall on our face.

Over 70% of us will fail to exit and the business will be liquidated.

This episode is to help each other maximize the value of our business. There is only a limited amount of capital out there and historically big business gets between 80-to-90% of it. They have history, but we offer diversification and tax advantages.

Nobody wants to see you liquidate (or have others do it because you died on us). Yet, liquidation is rampant. That's getting pennies on our dollars.
Tangible assets get sold (fire sales) and the intangibles are lost forever.

Liquidation is the worst kind of liquidity.  We can understand our equity and liquidity options -- it's just like doing a will -- and get more out of our life's work.  

Most of us will sell our business through merger or acquisition. But, if we get much over two-to-three times sales or six times earnings, we all think we've done very well. Yet, when big business sells, they usually begin at six times earnings. Then we see 40 times and even 300 times earnings (Google) on the open markets. Why should we be satisfied with so little?  

Most of us don't think about our stock certificates... if these could be sold to anyone. And, in fact, as long as we have that attitude, it's self-fulfilling.

Once we do our first business valuation and study key ratios, we begin to position our thinking to make decisions about people, products, and processes that'll help us focus on creating an asset we can transfer.

Every business, including the 17 million sole proprietors, should grow their business in a way that the knowledge base and the intangible assets can be transferred. 

View all the clips of this episode...

Transparency is good....and this transparency goes beyond investments.

Though the web is abused by many and it sometimes feels like there is nothing to be trusted on it, quite the opposite is happening just under the surface. The web is beginning to know the real you. Every nuance, every utterance, it is all being recorded. The web is quickly becoming a medium that can see deeply inside each of us. Once you lie or cheat, you can be found out. Do something good, even your motivations will be examined; and strangely, you reveal them.

We thought that "Big Brother" would be watching us. Turns out that we are all watching each other. Anything and everything you do is being documented somewhere.

The last link, knowledge management tools that compile data and make it all useful information, are in place and getting better. An online profile is evolving about everyone on this planet and its memory seems absolute. As we all begin to grasp this new reality, we will all naturally become producers, crafting our life and its meaning and value from cradle to grave.

There are about 70 clips about Information Services; this page opens to many.


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There are always four paths to walk and eight steps* to climb:

Shiv_Krishnan.jpg

Start a Business
Vienna, Virginia: Meet Shiv Krishnan of Indus. He comes from one of the cradles of civilization; his homeland is the Indus Valley which includes Pakistan and India. By truly discerning the continuum of information, he and his people (now over 500) implement ordering systems for data.
Go to all the Key Ideas and videos of this episode.

Key Question: How do I start a business?"

Miles Corbett

Grow a Business
Westerhan, England: Meet Miles Corbett (left) and David Bowden; they are real revolutionaries in our time. They can transform raw data into knowledge; they open pathways to deeper insights. And with a little thought, those insights become wisdom. Go to All their Key Ideas

Key Question: What is a path for growth?

SoutoBrothers.jpg

Buy a Business
Miami: Meet the Souto brothers.
They came from Cuba when Castro took over. They adopted the American dream and became one of the largest espresso coffee roasters in the world! They buy to grow and say, "Give people the latest technology."

Key Question: Can my business be my legacy?

WATKINS.JPG

Sell a Business
Throughout the world: Business valuation is difficult for small business; there is no P/E ratio; our books are generally closed or opaque. Yet, transparency is on the rise. Open book accounting is, too. Soon we will all be selling parts of our businesses to our best customers, suppliers, and the private equity market.

If you have come to that point where you want to exit your business, there are eight possible ways!

Key Question: Who is the best buyer?

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