Federal Grants: On Small Business Saturday American Express offered both consumers and business owners the opportunity to buy from a local business  It’s a great incentive to play a role in helping to grow the engine of economic prosperity: small business.   There are other incentives available to businesses that want to play an even greater role in the development of local businesses in the agricultural sector.   The United States Department of Agriculture Rural Development program offers … [Read more...]

Once a decision to sell a business has been made, ensuring that the proper approach is selected to conduct the sale is very important. Here are different approaches to selling your company Choosing the wrong method can expose your company to unnecessary risks. The different approaches to a company sale can be organized into four types: auctions, controlled sales, targeted sales and private negotiations. Auction sale This type of sale casts the widest possible net and invites anyone and … [Read more...]

With Small Business Saturday only a few days away, it’s important to remember that business owners – not just consumers – can also support local, small businesses.  One sector where supporting local businesses has tremendous financial advantages is the food service business.  The $580 billion restaurant industry is realizing that sourcing ingredients locally is not just a “feel good fad” but instead a long-term trend with inherent advantages over today’s food sourcing model.   What is … [Read more...]

I had a conversation the other day with a business owner who had decided to sell his company.  After over 30 years in business, his children didn’t want the company.  They had chosen to work in other professions.  He had not developed a pipeline of management leadership within the company that could operate the business without his continual presence either.  He was tired, and frankly wanted to enjoy driving his motor home across the country.  But despite having clarity in his decision to sell, … [Read more...]

When most business owners address the issue of managing company's cash, it usually revolves around contingency planning in case there isn’t enough money to cover monthly expenses. That type of cash problem can quickly put you out of business if it isn’t resolved. But that isn’t the only important issue involving cash. At the opposite end of the spectrum, business owners need to consider what to do with their short-term cash balances. Having extra cash is good, but many business owners simply … [Read more...]

Working capital is an important measure of a company’s financial health.   It’s defined as the difference between Current Assets and Current Liabilities (Working Capital = Current Assets – Current Liabilities).  When a company has positive working capital, it is able to pay off its short-term liabilities from assets that can be quickly converted to cash.    Inventory is a part of current assets and therefore has a direct impact on working capital levels.   Because of its impact on working … [Read more...]

It’s a common problem faced by businesses that build a good-sized customer base over time.  A customer leaves a deposit, uses your services for a few years then moves on.  They forget to ask for the deposit back and you are focused on getting new business, so returning that deposit doesn’t exactly keep you up at night.  When certain conditions are met, property like this deposit can no longer be held by your business. It must be turned over to the state government.  Failure to do so can result … [Read more...]