Blue Sky would like to send a heartfelt thank you to Scott Snider, president of the Exit Planning Institute, for his recent senate testimony and continuing to spread awareness on behalf of business owners: We at Blue Sky Advisory Services extend our deepest gratitude to Scott Snider for his illuminating testimony before the U.S. Senate committee on “Succession Planning: Opportunities to Build Wealth and Keep Jobs in Local Communities” held on January 24, 2024. As the Presiden

As a 5-time entrepreneur who has helped several businesses increase their value, I know what it takes to run a successful business. If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. According to Oberlo , the number of small businesses increased from 32.5 million in 2021 to 33.2 million in 2022. This trend shows no signs of slowing down as more and more people are taking the

There comes a time for everyone to move on from the business they’ve created– some happier reasons than others. But even if you’re just starting, having an exit strategy for your business will help prime you for success, rather than leaving value on the table when the time comes. This guide will walk you through the signs to sell, the basics of valuation, options for selling your business, and tips on adjusting to life after the sale. Before you are ready to sell, it’s import

Why does nobody want to buy my business? 80% of businesses listed for sale never sell. If you have been counting on the proceeds from the sale of your business to fund your retirement, the burden of not being able to sell can be devastating. A good market strategy for any products or service is to see if there is interest, gather feedback, then adjusting based on said feedback. Selling your business is no exception. Despite thinking we know better, many entrepreneurs wear ro

Buying a business is an opportunity to skip the growing pains of launching a startup. It’s a chance to start with a proven model with customers and cashflow. How can you tell if the prospective business is a genuine investment opportunity or a disguised escape route for a burnt-out owner? The following is a list of the top five things to consider when prospecting a business purchase – and some red flags for each category so you can recognize trouble a long way away. This list

If you’re a business owner looking to retire soon, chances are you have a lot on your mind. You might be asking yourself: Am I really ready to retire? Is my business worth enough to warrant a buyer? If I do sell, will what I get be enough to help me live in retirement comfortably? What are my real concerns? Am I afraid to sell my business? If you’re having these thoughts, you’re not alone. Statistically speaking, nearly 80% (or 4 out of 5) of small businesses listed each yea

How do I sell my business? Such a simple question. Unfortunately there is no simple answer. When it comes to selling a business, one size does not fit all. The answer is a series of additional questions that need to be addressed first: Have you considered what you will do once you are no longer working 50+ hour weeks? Do you have a REALISTIC idea of what the business is worth? Have you updated your financial plan and Estate Plan to understand the impact of the net after tax p

Do I really need an Exit Plan? “In this world nothing can be said to be certain, except death and taxes”. This quote has been widely attributed to Benjamin Franklin and has endured for hundreds of years. I would like to add a third certainty to this phrase; “at some point you WILL exit your business”. It might be on your terms, it might not. Statistically, 50% of all businesses that are sold are unplanned sales. ( see related post: The 5D’s ). Sadly, 80% of all small business

We have all heard of the impending silver tsunami. The crashing sound of the baby boomers rushing to the exits to enter the world of...

We all know that every day is a gift; none of us know what tomorrow holds in store for us.  As a business owner, one of the most important things you can do to preserve your business, your legacy and protect your family in the event of an unforeseen event is to have a detailed and up-to-date contingency plan.  What is a contingency plan? Simply put, a contingency plan is a written set of instructions of who, should do what, when, in the event of your incapacitation or death.

What is my business worth? Ultimately, the person writing you a check for your business is the ultimate arbiter of the value of your business. Unfortunately, that is not the time you want to understand what someone is willing to pay for your business and why. Having a realistic understanding of the value of your business , why it is valued at that amount, and what that value means to your overall personal financial goals is critical. The price that someone is going to pay for

The decision to sell your business or take on an outside investor is not a singular event, but an ongoing strategic process defined as Exit Planning.  Most business owners avoid preparing an exit plan because they do not have a clear understanding of the process, or they are concerned about the cost and time commitment.   The reality is, that while exit planning is not easy, it is simple. If done properly, the out-of-pocket costs should be a fraction of the increased value of