6 Things We Learned About Business Interviewing Josh Ploch - Serial Entrepreneur, HR Expert and Business Broker E5 Watch Here:
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit crude, you're reading our notes, so. yeah. -Ron
Concept 1: Fill Business Owner Needs With Solutions
The demand for solutions to fill the needs of business owners is a common one. Whether it’s a small mom-and-pop operation or a large multinational corporation, business owners are always looking for solutions to help their business run more efficiently and to be more successful. One of the best ways to fill these needs is through the help of a business advisor.
Josh Ploch is a serial entrepreneur and business broker/advisor who has seen firsthand how advisors can help business owners. Josh started his career as a Division One women’s basketball coach, but after listening to a mentor, he realized that this was not a lifestyle that would work for a family. So he pivoted and got into operations and HR and staffing. Through his experience, he found that many of the same tools used in corporate America could also be applied to smaller operations and help them grow.
Josh has seen how business owners can benefit from solutions such as value stream mapping and Six Sigma. These tools can help business owners identify areas where they can be more efficient and make improvements that can lead to increased success.
Josh has also seen the need for business brokers in helping business owners transition into a new business or out of their current one. Business brokers can provide guidance and advice, as well as access to resources and contacts that can help make the transition as smooth as possible.
Business owners have a lot of needs, and finding solutions to fill these needs is an important part of running a successful business. Josh is one example of a business advisor and broker who has seen first-hand how solutions can help business owners. He has helped many businesses transition into a new business or out of their current one and has seen how solutions can help them be more successful. Business owners should take advantage of the resources and expertise of business brokers to help them fill their needs with solutions.
Concept 2: Managing Expectations Is Key
One of the most important aspects of any business transaction is having reasonable expectations. Josh Ploch has seen many business owners come to him with unrealistic expectations of what their business is worth or what they can get out of a transaction. He explains that the process of valuing a business begins with analyzing tax returns and then determining the revenue that can be maximized for the business owner. After that, the hard work begins on the selling side. It is similar to real estate in that everyone can lock up a house, but selling it for the right price is the challenge. The fun thing about business brokers is that there are many solutions available depending on the type of business.
Unfortunately, Josh has also seen brokers who give overly optimistic valuations in order to get the business owner to sign up with them. This can lead to a situation where the business owner has unreasonable expectations of what they can get out of the transaction. This can be very frustrating for an acquisitions team who is looking to acquire the business. It is important for business owners to understand the process of valuing a business, as well as the market conditions, in order to have reasonable expectations of what they can get out of the transaction.
Having reasonable expectations is key when it comes to business transactions. Business owners should take the time to understand the process of valuing a business and the market conditions in order to have realistic expectations of what they can get out of a transaction. They should also take advantage of the resources and expertise of business brokers to help them find solutions that will help their business be more successful.
Concept 3: Know Your Deal's Value
The process of valuing a business is complex and involves many factors. Business owners should take the time to understand the market conditions and the value of their business. They should also be aware of the potential risks associated with the transaction. By taking the time to understand these factors, they can make an informed decision about the best course of action.
It is also important to be aware of the potential pitfalls of working with brokers. There are brokers who may be overly optimistic about the value of a business, or who may be more focused on getting the most money for the seller. This can lead to a bad taste in the mouth of the business owner and can lead to deals falling through. It is important for business owners to be aware of these potential pitfalls and to find brokers who are honest and who have their best interests in mind.
Finally, business owners should also be aware of the potential for creative financing solutions. These solutions can help both buyers and sellers achieve their goals, but they can also be risky. It is important to find a broker who is experienced in these types of transactions and who can provide advice and guidance.
Ultimately, it is important for business owners to understand the value of their business, the market conditions, and the potential risks associated with any transaction. By taking the time to understand these factors, they can make an informed decision and find the best solution for their business. Additionally, they should take advantage of the expertise of brokers to help them find the best solution for their business.
Concept 4: Minimize Tax Burden To Qualify.
While you want to maximize sales price, one of the most important factors to consider when selling a business is to minimize the tax burden. This is especially important for businesses that are exiting the market. By minimizing the tax burden, the business owners can reduce their overall costs and maximize the value of the sale.
It is important to look at the financials of the business and determine what can be kept and what can be removed. This includes looking at the revenue of the business, as well as any losses that may be incurred. Additionally, it is important to ensure that any deductions are verifiable and can be proven. Furthermore, it is important to consider the debt structure of the business and determine if it is too high to be serviced. If this is the case, it may be necessary to look for buyers that specialize in restructuring high debt structures.
Finally, it is important to understand the common myths surrounding the business brokerage profession. One of the most common myths is that it is no longer a good value. However, this is not true. Brokers are able to bring added value to the table and help structure deals to ensure that both the buyer and the seller are getting the best possible outcome.
In conclusion, it is important for business owners to understand the importance of maximizing their profit from the exit by minimizing their tax burden. By taking the time to understand the financials of the business and utilizing the expertise of brokers, they can ensure that they are getting the best possible outcome for their business.
Concept 5: Entrepreneurship Is Fascinating
Entrepreneurship is a fascinating process that requires a combination of creativity, determination, and hard work. It can be a rewarding and fulfilling experience for those who take the time to understand the nuances of the business and the ever-changing landscape of the industry. From mobile mechanics to giant ball bearings, entrepreneurs have the ability to create something from nothing, and it is this process of innovation and creativity that makes entrepreneurship so fascinating.
They highlighted the story of a mobile mechanic shop owner who was looking to add to his business. He was looking for a broker to help him structure the deal and was curious about the boundaries of creativity he could explore.
The story of the mobile mechanic shop owner is just one of many inspiring stories of entrepreneurship. From selling spindles to selling giant ball bearings, the possibilities are endless when it comes to creating something new. It is this creative process that makes entrepreneurship so fascinating, and it is an area that can provide immense rewards for those willing to take the time to understand the intricacies of the industry.
Entrepreneurship is a complex journey that requires a lot of hard work and dedication. It is an ever-changing landscape and the rules and regulations can be difficult to navigate. However, with the help of brokers and the creativity of entrepreneurs, it is possible to create something new and make a living doing it. Entrepreneurship is a fascinating process that can provide immense rewards for those willing to take the time to understand it.
Concept 6: Plan Ahead For Business Exit.
One of the most important aspects of entrepreneurship is planning ahead for business exit. Business exit is the process of selling or transferring ownership of a business. It can be a difficult process, but it is essential for entrepreneurs to understand and plan for.
When planning for a business exit, it is important to start planning early. This means looking at the business’s financials and understanding the current market. It is important to understand the value of the business and how it fits into the current market. It is also important to understand the different types of mergers and acquisitions and how they can affect the value of the business.
It is also important to understand the different types of businesses that can be sold. Manufacturing, online businesses, and restaurants are all popular options. Understanding the different types of businesses and how they can be sold is essential for entrepreneurs to understand.
Finally, entrepreneurs should understand the importance of succession planning. Succession planning is the process of preparing for an owner to exit the business. It is important to have a plan in place in case the owner needs to leave the business. This includes having a CEO or COO in place to take over the business.
Planning ahead for business exit is an important part of entrepreneurship. It is essential to understand the different types of businesses and how they can be sold. It is also important to understand the value of the business and how it fits into the current market. Finally, it is important to understand the importance of succession planning and having a plan in place in case the owner needs to leave the business. By understanding these aspects of business exit, entrepreneurs can better prepare for their future.
When planning ahead for a business sale, it is important to have the right team in place. This team should include people who understand the business and can help maintain it and grow it. This team should also be able to handle the financials and revenue, as well as the ad-backs. Having a team in place will help ensure that the business is ready for sale when the time comes.
It is also important to understand the importance of succession planning. This is especially true for family businesses or businesses that have been around for a long time. Having a succession plan in place will help ensure that the business is ready for the next owner. It will also help ease the transition for the staff and the new buyer.
Finally, it is important to understand the importance of preparing the staff for the transition. This is especially true for family-type businesses or businesses that have been around for a long time. It is important to communicate with the staff and start to plan for the transition. This may mean having a retirement party or talking about the transition. By preparing the staff, it will make the transition easier for everyone involved.
When planning ahead for a business sale, it is important to have the right team in place, understand the importance of succession planning, and prepare the staff for the transition. By understanding these aspects of business exit, entrepreneurs can better prepare for their future.
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