Speaking at home town

I've been invited back to my home town to talk to a local service organization. I'm privileged but somewhat at a loss on what they may want to hear. I'm think they'll likely want to me to keep it light and short. I think I can do that without too much difficulty.

I plan to cover a brief history of my life since high school, lessons learned and some humor.

You can never go wrong with humor, especially with all of the negative news we hear.

Maybe I can talk to them about social media, but I'm not sure a majority of them use a computer. I'll give you feed back after the even, which is scheduled for June 24.

When to buy a business

There are more buyers of businesses than good businesses to purchase. In a recession that seems somewhat suprising. Consider the number of people who have been laid off from their jobs and the number of buy-outs by corporate America of jobs to entice people to take early retirement in a lump-sum buy-out. This results is a large pool of potential business owners. Why are good businesses difficult to find?

A recession impacts the bottom line of many businesses therefore the owner of that business doesn't want to sell when their bottom line doesn't look so good. The smaller the bottom line the less value exists for the business.

It behooves a potential buyer to use some creative thinking to entice owner's of good businesses who are experiencing a downturn due to the economy to sell. It makes sense to learn from the business owner their needs and their goals. Can something be structured to meet those needs and goals. Remember it is not necessarily the price for a business that is important so much as the amount the seller can actually realize from the sale. Some creative tax planning could result in a larger value realized by the buyer as could a longer payout with increases based on an economic index. The buyer might assume obligations of the seller rather than an actual cash outlay at closing. The buyer could create a joint venture arrangement leaving the seller as a part owner providing provisions for buyouts based on the business meeting certain sales targets at values tied to sales in years prior to the recession.

So there are ways to create a win-win situation without having to wait two to five years for the economy to fully recover. A business owner should not become a slave to their business because of a national/world economic meltdown. If it is a good business which has shown it's viability in good economic times then create a mechanism to reward the owner and allow the buyer to begin building for the future with an existing platform and base for a profitable future.

Are there risks to such an arrangement? Sure! Owning a business has risks, but also there are rewards. You work to create a situation where the risks are mimimized. Creative thinking is the key along with the overall concept of establishing a win/win situation.

What is an exit strategy for business?

Start early planning your exit from your business preferrably three years before you would like to exit.

Financial records kept in good order and up-to-date are essential. They should be void of personal expenses. If you presently are including personal expenses such as non-business related car, phone, utilities, etc. expense they should be eliminated. Begin with phasing out one-third per year until it is completely clean.

Buyers of business understand owning a business is risky. If they see personal expenses included in the business, although it may be a legitimate write-off, it sends a bad message to the buyer. Some of those expenses can be easily identified and are more easily dealt with, i.e. travel, dues and subscriptions, seminar expenses, client entertainment, etc. but they should be well documented.

The larger the business the more critical the financial records reliability becomes. Businesses who have incomes exceeding one-million dollars annually should at least have CPA reviewed financials annually.

The economy today dictates the owners to consider owner financing as a large part of the sale price. One should determine the absolute minimum of cash they will require to sell that would allow them to pay off all liabilities and to have cash, after taxes, to accomplish much of what they want over the next five to ten years. The note payments will provide monthly income, however, in the event there is a default planning needs to be in place to face that issue.

How long are you willing to stay as a part of the company and in what capacity? What compensation would you expect for a long term relationship beyond the initial training and transition?

What is the loyality of your customers, especially the larger customers, and what is the best arrangement to assure they would stay on board with a new owner?

Is your business concentrated with one or two customers? No one customer should consist of more than 25% of your business gross income.

Don't try to sell on your own. Find a qualified investment banker, business broker or merger and acquisition advisor to assist you with pricing, structuring, and marketing of the business.

Christian Community Divided

A pastor friend of mine is embarking on a challenging program to feed the underprivileged children in the neighbor adjoining our church during the summer months and provide activities for them. This covers several blocks, therefore, he will need several volunteers to commit for five days of the week. I suggested he visit one of our mainline neighbor churches just one block away and suggest we would welcome them as a partner to take one of the feeding stations.

His report to me was the pastor said they do not work with other churches. What a revelation! A Christain church that does not work with other churches (I assume he was talking about other churches not of his denomination) for the community good---in serving others. I was reflecting about the healing by Jesus of the Roman soldier's daughter; isn't that an example for us to use to pattern our lives and our churches.

It caused me to wonder why would a pastor say that or better yet why would he/she believe it was best not to work with other churches. Was it because they don't trust other people outside their own church? Could it be they are afraid their working side-by-side with other churches they might see things differently? Or could it mean they want to always be in control?

I think it is likely the later. Control is a powerful thing; reguiring no compromising, no sharing, no attempt to know and understand others, no thinking and always in fear.

Until we learn to work together as a Christian community we will find our task here on earth unfinished. Understanding that Jesus did not come into this world to establish a church; he did not come here for us to just worship him; he came to affirm the truth "the kingdom of heaven is here now." We are to live in the now not in the future or the past, but now----the kingdom is here and we as a Christian community are to join hands and reach out to others in love.

Does Twitter work for business?

I love new challenges. When I first heard about using Twitter from my friend Charlie Fern I was intrigued. I read everything I could get my hands on because for once I had a chance to be involved in a possible revolution rather than dragging up the rear. I then signed up and used the Christmas holidays to experiment and see if I could determine what all of the chatter was about.

I attended a Social Media Club breakfast and heard from a local company representative talking about how they use Twitter and other social media to promote their company and their products.

I saw a tweet from someone in Austin and checked out their bio and learned they were in a business that is closely aligned with my business. I sent a direct message and suggested we meet and talk, which we did. Later that contact referred me to someone he knew that might have a need for my services. I asked what I could do for him, after giving thanks for the referral. He asked if I knew someone who had experience with distressed loans. I did and made the connection and they are meeting next week to discuss. I met with the referral I received today and it may open some great areas of opportunities.

So it works. I have also made contact with others throughout the U.S. involved in ALS groups.

I'm still learning, but what I have seen so far makes me a believer.

Brian McLaren speaking at SSW

Last evening I had the opportunity to hear a talk by one of the great forward thinkers of theology in today's world, Brian McLaren.

Since we were at an Episcopalian Seminary the message was mainly to the Episcopalian crowd although most of it could be applied to any mainline church in America, or probably the world.

One observation was that the Episcopal Church comprises, for the most part, the upper income caucasion members. The growth churches are largely evanglical. Studies seem to indicate that college educated young people are not attracted to the church. They are turned off by the theological debates on what is right and what is wrong, therefore, they find other things to occupy their Sundays.

Furthermore, the emphasis of the mainline church on the church being the key to get you to heaven rather than to shine a light into the world and live out the teachings of Jesus. His point was that Jesus did not come into this world to establish a church; he came into this world to bring the message that the Kingdom of Heaven is here. His message was for us to share that message to everyone. The Kingdom of Heaven is at hand and you do not have to go to church to get there.

The Episcopal Church should be welcoming with open arms gays and lesbians into the church as a beginning to reach out to everyone. The church should be equipping each of their members to go out into the world to invite others to be a part of this wonderful community of people who are there to share with each other and to help others. It is about welcoming everyone with open arms and it is about living out the teachings of Jesus.

Finally, McLaren believes the hope of peace in the world lies with the teachings of Jesus on how to live. Not that one must believe that Jesus was the son of God or that Jesus is God, but that he was a great and wonderful teacher whose teachings can heal the world. All relegions recognize Jesus as a great teacher and prophet; can't we just go with that and not feel we have to win souls by declaring that Jesus was the son of God. We are all sons and daughters of God. If we take away the theology of Jesus' message and view it as a way of peace here on earth, therefore, to the Kingdom of God, the chance of bringing healing to the world is much greater.

So is the mainline church dead? No, but it is on life support. One way to change is to plant new churches and give them the freedom to try new and different things. Sort of a lab experiment. Those things that are working you can gradually implement them into the mainline church. You have to continue to plant churches to keep from getting stale and to find new and fresh ideas.

Can America survive?

I'm watching the Dow Jones go below 7000 and we seem to be in a panic. Is it because everything had reached a point where things were so overpriced they could no longer sustain themselves. Is our economy driven by the Dow Jones or is it driven by jobs and opportunities? The modest amount we had in a 401K was removed from the stock market over a year ago and placed in a savings account. It was clear to me this bubble was about to burst. I think we haven't seen the worst of it yet. In a free world economy these major corrections are necessary every few years. No one is immune from them. Even Warren Buffet has taken some hugh losses.

The price of everything, including the cost of labor, will decrease. People will have to adjust their standard of living. Maybe we go back to one car with one garage, two bedroom homes, public transportation, brown bag for lunch, no more $8 movies and $5 popcorn, we grow gardens in our backyards or in pots on the patio, we share in our things (lawnmowers, cars, etc.), we swear off of the newest and greatest electronic thing to hit the market, we sell all things we haven't used in six months at a neighborhood garage sale or a church garage sale.

We simplify our lives. This could be a good thing. We could come out much better and with a lot less stress in our lives by making things simple and sharing. Get back to a sense of community and no longer charge ahead as if we must do everything ourselves.