What’s a Fair Price for a Privately Held Company?

October 22, 2018

By Shawn Hyde, International Society of Business Appraisers (ISBA) –

Publicly traded companies are valued every day on the stock market. But how do private business owners determine what a fair price is to buy out their partners? At what price they should sell their company? What’s the value of a 10% ownership interest in their company for gifting purposes?

The International Society of Business Appraisers (ISBA), www.intlBCA.com, exists to teach people how to answer these and other questions relating to the values of small businesses. Appraising privately held businesses involves logical thinking, financial analysis, and a healthy dose of practicality.

Some folks look at an enterprise’s balance sheet, find the equity section, and state that this is the value of the company. Not necessarily. If the company is going to be sold, are all the assets listed on the balance sheet going to transfer to the new owner? Also, the assets tracked on the financials are listed at cost less accumulated depreciation. If the equipment is fully depreciated, does that mean it has zero value? What about intangible assets like goodwill? This asset is typically not even listed on the balance sheet, and if it is, it only accounts for that portion that was purchased and not any goodwill that exists as part of the operation of the subject business.  (more…)

4 Benefits of Monitoring Your Business Credit

October 15, 2018

By Connor Wilson –

Monitoring business creditYou don’t need a new year to resolve to work on your credit. It’s a common goal, and as people look to buy a home or a new car or get out of debt, credit monitoring becomes a hot topic. If you’re a small business owner, you might be surprised to know that you don’t just have a personal credit score, you also have a business credit score to think about. In a Nav survey, 45% of responding small business owners did not realize they had a business credit score, 72% didn’t know where to find information on their business credit score, and 82% had no idea how to interpret their score. If you fall under any of those categories, it’s definitely time to learn more about your business credit score.

Running a business means time is at a premium, so why should you invest time in monitoring your business credit? Here are 4 benefits of keeping an eye on your business credit score.

1. More timely dispute incorrect information

Credit bureaus are far from perfect, and they make mistakes. This is true for personal credit, but almost more so for business credit. Having an incorrect tradeline on your credit report can wreak havoc if not taken care of promptly, and often they are left for months or even years, much to the surprise of the impacted individuals.  (more…)

How to Get Enough Inventory to Make Black Friday Wildly Successful

October 9, 2018

By Jennifer Lobb –

ShoppingBefore long, the air will be cooler, evergreen and twinkling lights will deck homes and storefronts, and holiday music will begin to play – albeit earlier than seems necessary. Though the holiday season begins as soon as Jack-o-Lanterns end their month-long reign, when it comes to planning and sales most small businesses focus on what many consider to be the biggest shopping day of the year – Black Friday.

Business owners and managers alike plan meticulously for the big day, with efforts covering everything from staffing and business hour updates to marketing and sales initiatives. However, as you likely already know, when it comes to Black Friday, inventory is often the make-or-break factor.

So, how do you have a wildly successful Black Friday? Take these inventory tips into consideration as you plan for the biggest shopping day of the year.  (more…)

An Energy Engineer Overcomes Obstacles to Bring Business to Light

October 1, 2018

Success Story: Idaho –

Idaho SBDC success - RetroluxRetrolux was founded by Leif Elgethun, a self-described serial clean energy entrepreneur and advocate for a world as a carbon neutral society. After building software and honing workflows that greatly reduced the time and cost required to sell and install commercial building lighting retrofits for a former employer, Leif decided to found Retrolux.

This company seeks to accelerate the adoption of market-ready technologies that decrease fossil fuel usage and toxic materials in the lighting market by providing software that brings products to consumers faster and cheaper than ever before. With his background in energy engineering and project management, the first major obstacle was learning how to build a software company. The next obstacle was raising the capital required to build enterprise-grade software and bring it to market.

The SBA and SBDC were very influential in Leif & co-founder Brett Adler’s preparation for pitching to angel investors and making sure they had the supporting documentation they required. Retrolux was able to raise $600k in May, 2016, to help the company build the software and get it to market.  (more…)