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Nebraska Business Development Center Overview
NBDC is a hidden treasure to many Nebraska business owners according to Odee Ingersoll, Director of the Nebraska Business Development Center at the University of Nebraska at Kearney. NBDC is a one-stop shop for new, expanding and exiting business owners. Most services are free and include services such as loan packaging, premium market research, and business planning. Fee-based premium services include business valuations, manufacturing efficiency, and exit strategies. Read more
Exit Planning – Purchasing Options
Are you looking to sell or buy a business? Even though the buyer may not have the 20% down payment, there are options available to get the deal done. Odee Ingersoll, Director of the Nebraska Business Development Center at the University of Nebraska at Kearney details an exit planning strategy that allows buyers to get into the business. Valuation experts look at the value of the business and the cash flow it produces. They also conduct an appraisal to determine the fair market value of the business. The objective is to get the buyer a 30 – 40% ownership in the company quickly. Ownership is then discounted and used as leverage to finance the remaining amount of the business. 2 of 3 exit planning videos. (http://www.nbdcunk.com)View Video
Exit Planning – Selling Strategies
Prepare for the end game and get the most out of your business investment. Odee Ingersoll, Director of the Nebraska Business Development Center at the University of Nebraska at Kearney, encourages business owners to prepare their exit strategy. This will increase their business value, help them find potential buyers and make a quicker sell. About three years out, owners need to develop internal processes that show potential buyers and lenders the value of the business. The goal is to strategically sell the business at the highest value rather than letting the general market determine the value of the business. 1 of 3 videos. (http://www.nbdcunk.com)View Video
Are You a Want or Need Business
Peter Fink, owner of Certified Transmission in Omaha, NE, emphasizes that providing value and customization is critical for a business’ ability to compete. People are looking for something different in the marketplace…unique products or customized, personal services. Peter defines value as to how long it will last, not necessarily how much it costs today. Decide what kind of product you have…a want product or a need product. A transmission is a need product. People only buy transmissions when they need replacements, not because they want one. Make sure you thoroughly understand your customer base. Your makret success will depend on correctly identifying the motivations and needs of the customer. (http://www.certifiedtransmission.com)View Video
Business Planning for Future Growth
Business planning is critical to a business’ future success. According Dale Marples, CFO Omaha, the plan is the essential guide that leads a business into the future. A plan must be updated as situations change. Every month, compare actual results to plan goals and make changes as needed. The financial section is the most difficult to develop as correct numbers and projection are needed to match future goals. If sales fail to meet expectations, operational goals must be adjusted. Always project conservatively. If sales are above expectations, take advantage of it by protecting the profits and prepaying debt. (http://www.cfoomaha.com)View Video
Part-time CFO Solves Problems
CFO Omaha offers part-time help to small businesses. Dale Marples, owner of CFO Omaha, provides insight into the money problems that many business owners face. Problems often arise because owners don’t know their costs, they over obligate their business to purchases, or they take on too large of a project that delays payments. These situations can result in cash flow deficiencies and a closed business. Owners need to look at both the expenses and income to increase profit margins. Before seeking a loan, owners should determine their ability to repay the loan and be able to prove it to the funder. Never prejudge the bank response, there are funding options available such as the SBA guaranteed loan. If the business needs an immediate cash infusion, the business can look to selling convertible assets or obtaining employee concessions to get over the cash flow crunch. (http://www.cfoomaha.com) View Video
Systems Build Businesses
Peter Fink started Certified Transmission 30 years ago in Omaha, NE. He has steadily built the company from one repair business to 15 retails stores, two manufacturing plants, and 15 distributors. Peter quickly learned that standardization was key to duplicating his business, from cross-training employees to consistent suppliers and uniform procedures. In a good system, employees must be able to routinely repeat the process. Although systems are costly, it does allow the company to offer higher quality products and reach efficiencies. Peter believes in sharing business information and performance results with employees for accountability and buy-in. (http://www.certifiedtransmission.com). View Video
Share Your Vision with Employees
Janet Walker, President and CEO, J. Walker Associates, Inc. (Omaha, NE) discusses with Lynn Hinderaker questions surrounding company culture, leadership, management styles and the hiring of employees that fit with the company. Janet suggests you help employees buy in to the vision by providing an emotional connection – be willing to express your vision or the dream that drives you to succeed. As a business leader, you need to tell your story, don’t assume the employees embrace the vision. The management style and cultural values of the organization also needs to be translated into “this is how we do things.” When interviewing potential employees, detail your values and management style to the candidate so that they too can decide whether they fit with your company. View Video
Tips for Hiring that First Employee
Janet Walker, President and CEO, J. Walker Associates, Inc. (Omaha, NE) highlights key steps a business owner should take when hiring the first employee. 1) Define what success looks like for that position. Keep in mind that you are not hiring co-workers, but employees that need defined roles. 2) Articulate the details and identify what you want to them to do and how they are to do it. 3) See yourself as a leader/manager of the organization. 4) Don’t get caught up in first impressions, watch and listen to what the candidate says. 5) Past performance can predict future performance, pay attention to job skills. 6) Let the candidate ask questions. 7) Don’t make any promise until after all are interviewed. View Video
Importance of Agricultural Tax Planning
Tina Barrett, Executive Director of the Nebraska Farm Business, Inc. discusses farm tax issues common to farm operations. Minimizing the tax burden is critical to a farm business. Planning one to two years ahead helps the producer situate themselves so they are not paying for more taxes than necessary. Read more
