Work Toward Reward: Building Business Value Today for a Well-Deserved Future - Softcover

Chien, Chia-Li

Softcover

ISBN 10: 1475949030 ISBN 13: 9781475949032

Verlag: iUniverse, 2012

Inhaltsangabe

When you're finished, make sure you have something to show for your efforts. In Work Toward Reward, Chia-Li Chien, Succession Strategist at Value Growth Institute and award-winning author of Show Me the Money, presents the results of her Business Value Drivers Study. This two-year study reveals challenges business owners face and the Mission Critical Activities crucial to building a business in value. Chia-Li invited business owners to participate in the study, answering questions such as: $ Why are you in business? $ What have you created from your business (job, lifestyle, 3x to 5x value)? $ What gets you going in the morning? $ What keeps you up at night? $ What are the most common problems in your industry? Using examples of business owners she interviewed in the study, she illustrates the successes and challenges of their businesses to inspire and motivate us to focus on value creation through Mission Critical Activities-and how those activities can transform not only a business, but communities and even our world as well. Work Toward Reward helps you start building your business in value, and when you are ready, cash out with the reward you deserve after the risks you've taken and the years you've spent! (In praise of Show Me the Money) "With empowering advice for understanding true business value, attaining financial independence and knowing when to quit. Show Me the Money is a fine guide to making a profit" John Burroughs, Midwest Book Review, Oregon, WI

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WORK toward REWARD

Building Business Value Today for a Well-Deserved FutureBy Chia-Li Chien

iUniverse, Inc.

Copyright © 2012 Chien Associates LLC
All right reserved.
ISBN: 978-1-4759-4903-2

Contents

Acknowledgements..................................................................................ixThe Research......................................................................................xiBusiness Value Drivers Study......................................................................xiWhat Makes the BVD Study Valuable to You?.........................................................xvChapter 1: Risk vs. Reward........................................................................1Chapter 2: What impacts business value from an investor or buyer perspective?.....................4Chapter 3: BVD study Mission Critical Activities..................................................8Chapter 4: Selected Interviews from the BVD Study.................................................16Chapter 5: BVD Study Conclusion...................................................................47Appendix 1: BVD Study Results.....................................................................53Appendix 2: About The Study Participants..........................................................60Appendix 3: Demographics of the participants......................................................63Appendix 4: How The Study Is Conducted............................................................65Appendix 5: How The Interview Is Conducted........................................................68Appendix 6: Transfer Methods......................................................................71Bibliography......................................................................................81About Chia-Li Chien...............................................................................85Other Books by Chia-Li Chien......................................................................87Index.............................................................................................89

Chapter One

Risk vs. Reward

I have found, without exception, that entrepreneurs are risk takers. And I suppose I'm one of them. I went on my first whitewater rafting trip in 2011. But there was a huge risk for me in making this trip.

To minimize my risk, I wanted to sit closest to the guide. In addition, just to double-check my safety, I asked my daughter (you can see her in the front of the raft) to go on the trip with me. She's a Girl Scout and certified in these types of extreme outdoor sports. She was my additional safety net.

We were on Nantahala River, the coldest river in the Appalachian gorge in North Carolina. The entire run was two hours on the water, through many heart-pounding rapids, extreme moments of excitement, getting splashed and soaking wet, along with much laughter. I even sustained a hard hit from a hanging tree branch along the riverbank. Lee (our guide) tried to warn me with a "Watch out!" just two seconds before I saw it, but it was too late. Luckily I did not get knocked out of the raft.

The objective of the trip was to navigate to our destination of the 9-foot Nantahala Falls, stay in the boat and enjoy the trip.

There were many boats on the river that day, some without a Lee to guide their raft, and many of those rafts got stuck on the riverbank or hopelessly stranded on the rocks sticking out of the river. I asked Lee why these boats didn't have a rafting guide like him.

"People want to save money and go down this river on their own. Unfortunately, only the experienced guides know the river well enough to maneuver and navigate toward the finish line successfully," answered Lee.

Although a business exit can be triggered by different factors, the value varies depending on the exit methods. You must make sure all factors are working in your favor when cashing out—just like when Facebook made their IPO.

Even if you cash out due to the need for capital to expand your business you still must a have right guide. Why? Just like my whitewater rafting trip, with the right guide, I successfully reached my destination safely and claimed my reward for the day—in this case, FUN.

Yes, think of exiting your business as claiming your reward. Claim that reward and compensate yourself for the risk you took in creating and running your business. Don't wait too long or you could be faced with the triggers that might potentially decrease the value of your business.

Perhaps you don't want to or need to be a Mark Zuckerberg, CEO of Facebook. But doesn't it make sense to plan ahead for the wellbeing of your business,you and your family?Think about it—what does your end game look like in terms of an exit strategy?

In my BVD study report, there are specific value creation methods that help owners gain insights on how to avoid unfavorable exit triggers and proactively and intentionally build their business in value. Let's first look at what investors and buyers are looking for. Then, I'll illustrate how you can build your business in value to create a win-win situation for all parties.

Do yourself a favor—set a goal to be able to sell anytime! Profitably! Make it a win-win for you and your buyers/investors.

Chapter Two

What impacts business value from an investor or buyer perspective?

I'll answer that question with another question—what are the three major factors impacting real estate value, marketability and desirability?

LOCATION

LOCATION

LOCATION

That's right, and I'm sure everyone has heard this before. However, let's ask ourselves now—

What are the three major factors impacting privately-held businesses?

The first type of timing is Personal Timing; mostly triggered by health problems, emotional and physical fatigue and feeling of being drained from owning the business. You may be bored, have no fire in your belly or simply can't muster enough strength to face another economic cycle. A family situation, such as spousal pressure to retire, divorce, children who want to take ownership or employees who think you aren't as forward thinking, progressive, etc. as you should be can add to the pressure.

Secondly, you must consider Business Timing. Is your business mature enough to have the VALUE to create and ensure your financial independence?

Third, consider Economic Timing. What economic cycle are you currently in? In the other words—when is the right time to cash out profitably?

Do yourself a favor—set a goal to be able to sell anytime! Profitably! Make it a win-win for you and your buyers/investors.

For the past twenty years, investment banker Rob Slee has studied the privately-held business buy and sell cycle. He revealed the following pattern in Midas Marketing published in 2009:

Historic Business Value 10-Yr-Cycle Chart

This cycle correlates with the U.S. economic cycle. According to Slee, investment bankers will typically buy companies in distress around the third or fourth years in business and sell them about the eighth year or so. Accordingly, if we as business owners can predict the prime time to cash out for maximum value, why not plan in conjunction with this cycle?

The goal is to be able to sell at any time! Profitably!

This requires your business to have fundamental value for acquisition. As a value strategist, as long as my clients know their goals, I always plan "backward" for them, first uncovering what...

Details zur Ausgabe

• Verlag: iUniverse
• Erscheinungsdatum: 2012
• Sprache: Englisch
• ISBN 10: 1475949030
• ISBN 13: 9781475949032
• Einband: Taschenbuch
• Anzahl der Seiten: 110
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: KreGa Onlinehandel GmbH; 4950000000000; info@krega-onlinehandel.de; ; Birkenweg 31; Brakel; 33034; Deutschland