Financially Simple

In episode 31 of Financially Simple, Justin gives an overview of the various documents and agreements that Business buyers and sellers must check at the time of sale. During the sales process of a Business, both the buyer and the seller will need to make carefully considered compromises and agreements on the terms of the sale. Justin goes over the types of agreements that may crop up, as well as why it is important to check the details of such agreements so that neither party is caught out. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: The Many MANY Ways a Purchase Agreement Protects Both Seller & Buyer – Post #31   TIME INDEX: 00:31 - The Documents and the Terms 01:53 - Tying Up Loose Ends 03:04 - Questions to Ask Yourself 04:32 - What Is a Release? 05:08 - Indemnification Clauses 05:23 - Insurance 06:32 - The Non-Compete Agreement 08:50 - The Non-Solicit Agreement 09:45 - The Indemnification Agreement 10:14 - The Confidentiality Agreem

In episode 30 of Financially Simple, Justin looks at how to go about reducing your tax bill when you sell so that you're not left feeling short-changed. When you sell your Business, the taxman takes a portion of the proceeds. Fortunately, there are ways and means to minimize his cut. Justin goes over some of the tactics that Business owners can use to save as much of the money from the sale of their business as possible. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Minimizing Negative Tax Implications When Selling a Business – Post #30   TIME INDEX: 00:31 - How to Minimize Taxes When We Sell Our Business 02:59 - It Starts with the Purchase Agreement 04:05 - Kim's Story 05:01 - Major Pitfalls to Beware Of 05:07 - An Asset Sale 08:08 - A Stock Sale 09:03 - The Stupid Tax: C-Corp 09:56 - Start Planning Ahead 11:42 - Making Adjustments During the Time of Sale 13:59 - Phantom Income 15:18 - The Attorney, the CFP® Professional, and the CPA For mo

In episode 29 of Financially Simple, Justin goes over the different ways you could be paid when you sell your Business. When the deals have been made, there are a number of ways for you to get paid by the Buyer. Justin looks at each method, from the big check to being employed by the Buyer, and considers the pros and cons of each. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Top 5 Ways of Getting Paid When Selling a Business   TIME INDEX: 00:32 - The Ways You'll Be Paid for Selling Your Business 01:34 - The Big Check 02:49 - Stock, ESOP 05:32 - Stock, Maintain Stock in the Company/Buyer's Company 08:03 - Earn-Out 12:31 - Promissory Note 18:41 - Employment 22:37 - Recap For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale USEFUL LINKS: Investopedia Financially Simple.com Financially Simple on YouTube Financially Simple on Facebook Financially Simple on Twitter __________ BIO: Justin A.

In episode 28 of Financially Simple, Justin talks about the Letter of Intent - the first step of many along the road to selling your Business. A Letter of Intent, or LOI, is like a declaration of war - it signals the buyer's desire to purchase your Business and your willingness to sell, without committing to anything just yet. Justin examines the format of an LOI, and also some of the terms and conditions that might be included in it that you should be aware of. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Don't Let the Thrill of a Letter of Intent to Buy Your Business Cost You – Post #28   TIME INDEX: 00:44 - The Letter of Intent, the First Step in a Formal Business Sale 02:45 - What Is a Letter of Intent? 04:49 - What Is Included in the LOI? 08:46 - An LOI Is Not Really a Binding Agreement 09:01 - Why Have an LOI? 10:42 - Conditions to Look Out For 15:08 - State What Is Not for Sale 17:26 - Other Ts&Cs to Be Aware Of 20:27 - Conclusi

In episode 27 of Financially Simple, Justin looks at the process of selling your Business by Auction. Auctioning a Business is similar to auctioning a car or a cow - but there are some differences and things that a Business owner should consider. Justin goes over the basics of auctioning a Business for sale, how they work, what is needed, and whether or not an auction is the best tactic for selling your Business. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: What's The Best Way to Sell Your Business? Auction or Private Sale? – Post #27   TIME INDEX: 00:33 - Can I Get a Bid or Not? 02:52 - Selling Your Business by Auction 03:35 - Is this a Good Deal? 06:29 - How Does an Auction work? 09:37 - Should I Use an Auction? 10:45 - You Need a Plan in Place 12:23 - When Should You Use an Auction? 14:42 - Reasons Not to Auction 17:03 - In Summary For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale

In episode 26 of Financially Simple, Justin goes over putting together the Sales Presentation of your Business, and how to approach the Buyer. When it comes to selling your business, it's important to have a good Sales Presentation for the buyers and to have the right team to help present it. Justin talks about preparing for the presentation, knowing what to expect, and how to pick the players to support you and your Business throughout this phase of negotiations. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Your Business Sales Presentation: Putting the Sales into the Sale – Post #26   TIME INDEX: 00:31 - The Sales Presentation 03:57 - Assembling Your Team 04:43 - Unintended Consequences 05:17 - Example Scenario 06:31 - How to Avoid Making this Mistake 07:24 - How Much Will it Cost? 07:58 - Next Comes the Pitch 08:34 - Look for the Cracks 10:21 - Practice, Practice, Practice 11:03 - Just Answer the Questions 11:42 - Pitch an Unranked Team 1

In episode 25 of Financially Simple, Justin talks about having your Pitch Book ready to go for when the Business gets an offer. The Pitch Book of your Business will contain all of the information about the Business, from key players, the type of Business Model, to projections of where the Business is headed. Justin gives a brief introduction and description of a Pitch Book, what's needed of it, and some things you need to be careful about when putting yours together. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: The Offer: Bring Your Business Pitch Book to the Table – Post #25   TIME INDEX: 00:32 - The Offer: Get Out the Pitchbook 01:25 - Time to Get the Business Sold 03:50 - What Is a Pitchbook? 04:28 - What Makes Up the Pitchbook? 09:21 - How to Compile Your Pitchbook 10:41 - Using the Right Language 11:37 - Be Careful of What You Say 18:39 - Be Careful of What You Do 19:24 - In Conclusion For more in-depth reading about this podcast serie

In episode 24 of Financially Simple, Justin goes into Business Valuation - how and why. Knowing what your Business is worth will help you when it comes to selling or accepting offers. It will also help you to identify weaknesses in the Business so that you can improve its value. Justin looks at the various methods of determining the value of your Business, and their pros and cons. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: How Much Is My Business Worth? A Surprisingly Complex Number – Post #24   TIME INDEX: 00:31 - How Much Is it Worth? 01:15 - Reality Check 03:59 - The Methodology Behind Business Valuations 04:39 - Three Ways to Value a Business 04:42 - Replacement Cost 06:49 - Comparable Value 08:21 - Income Method 10:54 - EBITDA 13:46 - Ways to Increase the Value of Your Business 15:04 - How Is the Income of Your Business? 15:43 - Is There an Easier Way? 16:27 - Certified Valuation Analysts 19:35 - Bench Marking Software For more in-de

In episode 23 of Financially Simple, Justin asks who your real customer is, that is to say, who do you want to sell your Business to? Knowing who your ideal customer is will help you plan your business. Justin looks at each type of Business Buyer and gives advice on how to determine which is most suited to purchasing your Business. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Types of Business Buyers Likely to Purchase Your Company – Post #23   TIME INDEX: 00:34 - Who is Your Customer? 00:59 - How to Identify the Customer 05:30 - How do We Know Which Buyer to Pursue? 06:02 - Types of Buyers 06:30 - Financial and Strategic Buyers 10:08 - High-Risk Takers 12:44 - Identify Buyers by Location 14:13 - Large Companies 15:19 - Summary For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale   USEFUL LINKS: Financially Simple  Financially Simple on YouTube  ________ BIO: Justin A. Goodbread, CFP®,

In episode 22 of Financially Simple, Justin takes a look at the specialist players you need to have on your bench when it comes to selling your Business. Once you've set up your team to deal with the day-to-day running of your Business, and to help plan your exit strategy, you'll need to enlist a specialist player to help you sell the Business. Depending on the size of the business, the type of player will vary. Justin looks at the three different types: Business Broker, Mergers & Acquisitions Advisor, and Investment Banker, and discusses which will be the best fit for you. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: How to Pick a Business Broker or Other Facilitator to Sell Your Business – Post #22   TIME INDEX: 00:32 - The Business Broker, M&A Advisor, Investment Banker 01:21 - Three Specialist Players for Your Team 02:54 - The Business Broker 07:12 - The Mergers & Acquisitions Advisor 08:58 - The Difference Between an M&

In episode 21 of Financially Simple, Justin talks about being prepared as a Business Owner for when that offer comes. Unlike in golf, there are no mulligans or second chances when it comes to selling your Business. Justin gives practical guidance on steps to take if you receive an offer to sell, or if you are preparing to sell your Business so that you can get it right the first time. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Avoid These Costly Mistakes in the Business Sales Process – Post #21   TIME INDEX: 00:37 - There Are No Mulligans in the Sales Process 00:43 - Teeing Off 03:57 - No Mulligans in Business 05:49 - Most Know How to Run a Business, Few Know How to Sell One 06:40 - Personal Restraint 07:47 - Are You Ready? 10:16 - Assemble the Team 14:31 - Build the Plan 15:55 - Don't make Rookie Errors 16:40 - Rookie Errors to Be Aware Of 20:38 - Remember, There Are No Mulligans For more in-depth reading about this podcast series, pick

In episode 20 of Financially Simple, Justin compares Lawyers to chainsaws - potentially dangerous to the inexperienced, and incredibly useful to those in the know. Justin talks about having a good lawyer on your team, using them to navigate contracts and the legal terms and conditions involved. Knowing the provisions and basics of a good contract is invaluable, and a good lawyer will help you with these - and they may even know a few tricks to help you get the advantage! Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: What a "Sharp" Attorney Brings to a Good Business Sales Contract – Post #20   TIME INDEX: 00:32 - Chainsaws, Lawyers, and Documents 00:40 - Dangerous, but Useful 02:26 - Rules for Using a Chainsaw 04:20 - Lawyers are Like Chainsaws 06:17 - Why Do You Need a Lawyer? 06:38 - What Is a Contract? 08:42 - What Makes for a Good Contract? 09:38 - Special Provisions 14:00 - What to Look For 17:31 - Lawyers' Tricks 21:21 - In Summary For

In episode 19 of Financially Simple, Justin talks about being financially prepared as a Business Owner for the sale of your Business. Do you know what your worth is? Is it enough to cover the lifestyle you hope to have after the sale of your Business? Justin talks the talk, sharing his Iron Man experience, and how it relates to being ready for the big one - the sale of your Business. Knowing if the money from the sale will be enough to retire on, or if it will only last a few years depending on your lifestyle, is important. Taking an assessment of you and your business will help to prepare for that day. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Assess Your Minimum Business Sales Price Before the Buyer Does – Post #19   TIME INDEX: 00:32 - The Assessment 00:38 - Iron Man 05:00 - Take an Assessment of Where You're At 06:24 - Personal Assessment 08:09 - Cost of Capital 09:23 - Personal Tax Planning 10:07 - Risk Management 10:42 - Investmen

In episode 18 of Financially Simple, Justin talks about mentally preparing yourself, as Business owners, for life after the sale. As business owners approach the sale of their businesses, or are made an offer, most will accept it and ride off into the sunset. But some may self-destruct. Justin talks about the psychological issues business owners have after leaving, and what you can do to prepare for life after business. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Life After the Business Sells… Mentally Preparing for Retirement – Post #18 For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale TIME INDEX: 00:34 - This Message Will Self-Destruct… 01:35 - Business Owners Can Self-Destruct! 03:18 - 3 Categories of Business Owners 06:16 - The Self-Destructive 07:55 - Two Decisive Questions 09:27 - Self-Destructive Mode 11:53 - Define Life After Business 12:39 - Ways to Prepare Yourself   USEFU

In episode 17 of Financially Simple, Justin talks about having your Exit Strategy in place and acting on it. As your business's most important team member, how and when you plan to leave your business will have an effect on your company's value. It is best to know well in advance your plans and clearly present them so you and the next owner are both on the same page when negotiating the sale. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Act Now: Your Owner's Exit Plan Can't Wait Until You Sell Your Business – Post #17   TIME INDEX: 00:39 - Duck! 00:52 - Didn't See it Coming 02:59 - Life Has Interruptions 05:27 - Businesses also Have Interruptions 07:39 - Start With a Goal 08:18 - Set a Timeline for Your Plans 09:48 - Make a Step-by-Step Agenda 12:02 - Choose the Right Team 13:58 - Start! 17:56 - When to Start Planning 20:19 - Develop an Exit Plan For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The

In episode 16 of Financially Simple, Justin gives a crash course introduction to Marketing. Marketing your business is necessary for sustainable long-term growth - sowing the seeds today so that you reap the profits tomorrow. Justin covers the basics of what, why, who, when, where, and how of Marketing, as well as the benefits of having a consistent Marketing strategy that will lead to a successful sale of the business. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Readdressing Your Marketing Campaign System for Business Continuity – Post #16   TIME INDEX: 00:33 - The Law of Sowing & Reaping - It's Not a Waste of Money 01:30 - The Three Phases 03:23 - How These Laws Apply to Business 05:48 - Case Study 08:44 - The What, Why, Who, When, Where, and How 09:40 - What? 13:10 - Why? 16:18 - Who? 17:34 - When? 18:16 - Where? 20:48 - How? 22:44 - Marketing to Exit For more in-depth reading about this podcast series, pick up a copy of Justin's ne

In episode 15 of Financially Simple, Justin looks at the ways and means of ensuring employee loyalty and retention. Having committed employees that work hard for you, makes for good Business - having a high employee turnover is not. Justin looks at "carrot and stick" approaches to keeping your employees dedicated to the company, and avoiding the problems and losses associated with losing disaffected employees. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Employee Agreements – Helping Protect from Loss to Competitors – Post #15   TIME INDEX: 00:45 - Don't Share the Corn Seed! 03:39 - You Must Not Train Your Competitors' Labor Force or Your Competition 06:19 - What Are Business Owners to Do? 07:04 - Fear and Greed 09:50 - Greed: Sweet Greens Rewards 14:06 - Fear: Big Stick Persuasion 18:17 - Why Does this Matter? For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale USEFUL LINKS: Financi

In episode 14 of Financially Simple, Justin considers how to build confidence and motivate your team to improve the growth and value of Your Business. A rising tide lifts all ships. As your Business grows, succeeds, and makes you more money, be sure to share that success with the people that helped to achieve it. Justin talks of how rewarding the team that grows the Business will, in turn, encourage them to invest their time, and even their money into the Business, and in turn create further development; and he discusses some of the ways to reward your Team. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: Employee Incentive Programs – Which Best Fit Your Business Structure? – Post #14   TIME INDEX: 00:39 - A Rising Tide Lifts All Ships 02:41 - Why Did You Start the Company? 03:41 - Monetary Motivation 06:00 - How to Build a Dedicated Team 07:52 - Keep Your Equity 10:24 - Share the Success 12:30 - Take Care of Your Leaders 13:58 - Reward Actio

In episode 13 of Financially Simple, Justin takes a look at the ins and outs of Risk Assessment. In business there are risks - the key to a successful business is knowing the specific risks to that industry and how to counter or absorb them. Justin talks about what risk is, the legal side of it, how to identify it, and how to address it, giving a candid example from his own experience dealing with risk. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!  TRANSCRIPT: A Business Risk Assessment Today Can Boost Value Tomorrow – Post #13   TIME INDEX: 00:41 - Listen to Your Good Angel - Don't Do It! 02:00 - A Cautionary Tale 04:18 - Risk Management 04:53 - What Is Risk? 08:19 - The Legal Aspect 08:51 - Why Does it Matter? 09:55 - How to Identify Risk 10:39 - Where to Start 13:43 - Risk Assessment 16:48 - Know the Law 20:05 - Risk Management is Vital For more in-depth reading about this podcast series, pick up a copy of Justin's new book: The Ultimate Sale USEFUL

In episode 12 of Financially Simple, Justin talks about having the systems in place to track a small business's performance and success. There are two main factors that are looked at when it comes to selling a Business - the Financials, and Performance. Justin looks at these factors, breaks them down to their fundamentals, and explains how Business Owners can start keeping track of them to ensure the Business's success and sale. Don't forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening! TRANSCRIPT: Clear Financial Reports Entice Business Buyers – Post #12   TIME INDEX: 00:44 - Which Way Did He Go? 02:33 - Which Way are You Headed? 03:20 - Factors That Drive a Business Sale 05:12 - Putting Systems in Place 08:29 - Financials 09:08 - What Is a Balance Sheet? 10:05 - Why Does a Balance Sheet Matter? 13:57 - Operating Statements 15:20 - Net Profit Margin Ratio 16:45 - Return on Investment Ratio 18:29 - Inventory Value Ratio 20:31 - Benefits of Ratio Analysis 21:14 - Key