A Gambler’s Advice for Business
You gotta know when to hold em, know when to fold em…….
Members of a certain generation can already complete the word of a song detailing a late-night meeting on a train “bound for nowhere” between the narrator and a man known only as the Gambler. The gambler spends his days trusting his sense of people and moved by what he sees on the narrator’s face, the Gambler offers this advice
You’ve got to know when to hold ’em, know when to fold ’em,
Know when to walk away, know when to run.
You never count your money when you’re sittin’ at the table,
There’ll be time enough for countin’ when the dealin’s done.
This song was first recorded in 1975 yet it’s one that’s stuck in popular culture precisely because the advice is so universal. And whether you’re gambling with a business or a straight flush, knowing what it takes to win is key.
Know When to Hold Em
Gambling is about knowing what to throw away and what to keep according to the gambler and that’s great advice for the business owner. Knowing a business is worth holding onto – even in challenging economic times gives you an edge. But how can you know? One clue is in the type of business. Pay attention to industries that are expanding: in 2019, Senior Care, Social Media, HVAC and Pet-Related business are expected to continue expanding. The key is simply knowing the market trends. That’s where your Sunbelt Network partners come in. We take the time to learn about the trends and help keep you on top. (For more information on businesses expected to be profitable in 2019, check out our blog: https://www.sunbeltnetwork.com/buying-a-business/businesses-to-buy-in-2019/)
Know When to Fold Em
Selling a business is never easy but when the time comes to fold, walk away or run it’s vital to have a strong business partner beside you. Starting with a Broker’s Opinion of Value (or BOV) can provide a jumping off point. A BOV is a broker’s opinion of what a business may sell for, based upon personal analysis, industry expertise, knowledge of local markets and lending, and comparable past sales. While not a formal business valuation, an experienced business broker should be able to deliver a BOV and articulate a realistic Most Probable Sales Price (MPSP) range. This lets you set the terms of the table right up front so that as you walk away, the next gambler can step up to success. (for more details review our website section on Valuations: https://www.sunbeltnetwork.com/valuations/)
When the Dealin’s Done
Buying, selling, merging or anywhere in between is a risk. Strong partners can help you navigate the hand you’ve been dealt, and a Sunbelt Business intermediary can be an ace you can keep. Contact us today.
A question I get asked often in speaking with company owners is “When is the right time to sell my business?” There is a great deal of emotion that goes into selling a business. In terms of stress, it canRead more…