For Sale: 5 Effective Ways to Increase Your Company’s Valuation

Recently there’s been much discussion among our members about selling their remodeling business, or perhaps handing the business over to a 2nd or 3rd generation family member.

These discussions are typically driven by a company’s founder or current owner who is nearing retirement age and wants to take advantage of the value they’ve built up over the years.

The fact is, only a small fraction of remodeling companies are successfully bought or sold. However, that number is increasing as more business owners plan ahead and take the steps necessary to build a business that can grow and thrive even when they are gone.

So, how do you build a business that someone will want to buy? Here are five tips that can help you maximize your company’s valuation:

1. Be Consistently Profitable

Buyers value bottom line profitability. Although profit is always a business goal, it’s important to establish a track record of consistent profitability in the years leading up to a potential sale. In addition, profits that are growing every year are important as well. If you keep profitability and your exit strategy top of mind, you may find that you make different decisions than you might have otherwise.

2. Learn to Delegate

Many businesses revolve around their founders or current owners and remodeling companies are no different. A business built that way is not attractive to potential buyers, who need to know that the business can survive and continue to thrive without the founder/owner.

It is key to avoid the typical “hub-and-spoke” business model that is all too dependent on the owner. In this model the owner is the hub and performs most of the critical tasks, while employees aid the owner in performing these tasks, expanding the owner’s ability to do more. Employees are mere “helpers” and the owner is a never-take-a-real-vacation superhero who must perform most key functions, such as sales, product design, management — you name it.

There’s no meaningful delegation and a true sign of this is if the owner goes on a long vacation without a phone and computer, and everything falls apart.

The founder/owner needs to concentrate on growing the company, rather than taking care of day-to-day operations. Owners must build a company that is not reliant on him/her and that means distributing responsibilities throughout the organization.

3. Create Systems & Operating Manual

When you are preparing to sell your business, you will maximize your value if you can provide a buyer with an operating manual. A potential buyer wants to know the business will continue to run smoothly without you, beyond the transition period and that the institutional memory will be retained when there is staff turnover in the future. By making it easier for someone to step in and operate the business, you will directly affect the perceived value of the company, which will lead to a higher payout for you when you are ready to sell.

4. Clean Recordkeeping

Accurate and detailed recordkeeping is an important element in positioning your company for a higher sale price. Financial statements and other records need to be thoroughly compiled and updated. If buyers suspect that your records don’t accurately reflect the business, their subsequent offer will be lower, or worse, they will lose trust and the sale may fall apart.

5. Build a Strong Bench

Hire the most talented people you can afford and put them in critical roles. Let them take on larger roles as your business grows. A prospective buyer will see that they can purchase your company, keep the executive team and plug in their own new leader. The purchaser will have a viable, and likely improved, business. I know that it may sting a bit to think that your business can go on without you, but you can feel comfort in knowing that you built a strong, profitable business that will continue to grow.

Summary

The bottom line is that the process of building a business that you can sell isn’t overly complicated, it’s just very different than running a company that you have no interest in selling one day. Building an exit strategy that works for you and your family takes planning, consistency and a little extra effort; but the effort pays off in the long run… Literally.

 

 

Financial Data Analysis You Can Use Right Now!

You’re probably sitting around thinking “Now that the year’s over what would Judith do with all this information?” Today’s your lucky day because I’ve been thinking the very same thing: after tidying up your Balance Sheet here are useful analysis you can do with year-end information.

But FIRST, make sure your Balance Sheet accounts are 100% accurate: all the way from checking to equity.

That means:

  • No unexplained open checks or deposits older than 30 days. – same with credit cards;
  • AR aging only showing client invoices you will collect;
  • Same with AP – only invoices you intend to pay;
  • Payroll liabilities tied into 4th Quarter PR tax reports;
  • Workers comp and general liability balances are reasonable;
  • and Retained Earnings accounts tied out to the 2015 tax return.

Only then you can dig into the Profit/Loss statement, because when the Balance Sheet is accurate the Profit/Loss is correct TO THE PENNY (even though there might be some mis-postings).

So now that you’re on the P&L Statement, you’ll want to:

  • Compare the gross margin on the Profit/Loss statement (less WIP) to that from the Job Cost Reports – they should be within 2% (plus or minus);
  • Compare the Gross Margin Percent on the Profit/Loss statement (including WIP) to that on the WIP Final GP% – again they should be within 2%, plus or minus;

Now for a really useful analysis: compare your estimated labor rate to that shown in your job cost reports. This will probably take some digging. From Quickbooks, Job Profitability Summary which is used to compare the GP%, Customize/Filter/Transaction Type should equal Paycheck and then double click on any large dollar job.

Here you’ll be taken into the detail of the numbers. Be sure to Customize Columns and add “Source Name” and “Qty” so you can see the employee and the number of hours.

Choose one paycheck and add up all the costs, divide by the number of hours shown on the first line and VOILA! You’ll have calculated the average labor cost actually hitting the job.

If this is different by more than 2% (again + or -) then you’ll have to do some more work! Download the Labor Burden Calculator from the RemodelersUniversity.com member’s resource library to determine how much field-employees really cost and compare that number to the estimated labor rate and the actual you’ve just figured.

And some other great tools in Calculator section of RemodelersUniversity.com is the Growth Sustainability Calculator as well as the Critical Ratios Tool. Now that your numbers are clean and pretty USE THEM to make 2017 one of your BEST YEARS EVER!

Happy New Year – be safe, work hard and enjoy yourself!

The Top 5 Accounting Issues Remodelers Face

I’m just returning from Remodeling Excellence week in Kansas City where I not only facilitated two fantastic Remodelers Advantage Roundtables groups, but I also had several sessions during the week’s capstone event: The Remodelers Summit.

As usual, I heard some fascinating stories and learned more about some of the unique challenges Remodelers face. Unfortunately, I also heard an all too common complaint. One attendee said, in no uncertain terms, “to me, probably the least understood part of running a business is the accounting side.”

This always saddens me to hear. Especially since Remodelers Advantage has so many wonderful resources to help you learn the ins-and-outs of accounting.

But before I could comment, he asked: “What would you say are the top five issues that small contractors face when it comes to accounting?”

What an excellent question!

So good, in fact, that I couldn’t wait to share it with all our PowerTips readers.

So…without further adieu:

THE TOP 5 ACCOUNTING ISSUES REMODELERS FACE

#5. Paying the position too little, and not respecting the position enough. The attitude “oh, my girl does that, I don’t touch it” is still too pervasive in young (and some old) companies.

#4. Failing to tie job costing into project management culture. Too many field people have no idea what the accounting/bookkeeping department does and why it matters. This can lead to less than stellar communications, the backbone of good decision making.

#3. Dismissing an annual company budget or not getting it entered into your system (QB or Sage) so that it can become a useful tool for protecting profit.

#2. Not understanding what makes up OVERHEAD as opposed to COGS, as well as not understanding the importance of having your gross profit from the financial statements tie into that of the job costs.

And, BY FAR, the number one accounting issue that remodelers face…

#1. Not believing you need to understand accounting and the related issue of not believing you need to understand your financial statements. Without understanding your financial statements, you have no ability to know if the person you have tasked with getting the information into a system is doing it right.

https://www.remodelersadvantage.com/events/master-your-remodeling-business-workshop/. Meet Judith LIVE at the Master Your Remodeling Business Workshop!  Learn More

Getting over a Cash-Flow Hump: Which is better – a Loan or a Line?

Unless your business has piles of cash available there will—at some point—probably be a need for a short-term or long-term cash infusion to get through.

Before approaching a lender for either a loan or a line of credit, first and foremost, your company house must be in order. To successfully approach any financial institution for a cash infusion, your financials should be clean and show your company’s financial strength and history.

Be ready to bring a current and accurate balance sheet and P&L statement. It will also help to locate an advocate at your bank or lender by leveraging your account relationships, or ask for recommendations from colleagues.

There may even be a lender in your area who is particularly versed in the complexities of the remodeling industry. It will pay off, in the end, to do your homework on the right lender and to approach that lender with a complete package of information about your successful company.

So you have your financials, you have an appointment to talk to the lender. Now what?

First of all, understand the difference in the two main forms of business financing: A business line of credit and a Term Loan.

 Term Loan

 With a business term loan, you borrow a lump sum of money, get it all at once and pay it back over a specific time period (or “term”)—it can range from a year to 20 years. Unlike lines of credit that are typically renewed every 1 – 2 years, a term loan is fixed for the specified amortization period. Lenders prefer loans to be collateralized, but there are options for unsecured terms notes.

You can select term loans with different repayment periods and with fixed or variable interest rates. However, you must begin repaying the loan immediately (even if you don’t use the money right away). Closing costs and interest rates for term loans are typically higher than those on a business line of credit. And, unlike a revolving line of credit, once you use up all the loan funds, you’ll need to reapply for a new loan.

Business Line of Credit

A business line of credit is similar to personal lines of credit, such as credit cards or home equity lines of credit. You have access to a specific amount of financing—say, $50,000—but you don’t make payments or incur any interest until you tap into the funds.

Lines of credit are often referred to as “revolving,” which means you can tap into them again and again. For instance, if you have a $50,000 line of credit and take out $25,000, you still have access to the remaining $25,000. If you pay that $25,000 back down to $0, you still have access to the entire $50,000 without reapplying.

A line of credit typically has a lower interest rate and closing costs than a loan of comparable size. However, if you’re late with a payment or go over your borrowing limit, your interest rate may increase substantially—unlike a term loan, where the interest rate stays the same for the life of the loan.

When to choose a LOAN?

Think of a business LOAN a little bit like a mortgage loan:

  • One-time loan meant for a specific purpose. You will be asked to show exactly what you plan to use the money for and how that will help your business increase sales and profits.
  • A fixed monthly payment is standard with a loan.
  • There will be closing costs.
  • A loan will have a fixed term or amortization period.
  • Loans are best used for long-term investments like buying capital equipment — not cash flow.
  • A business loan will carry a higher interest rate than a line of credit.

A business loan is better when you need to make a large, one-time capital investment that will increase the value of your company over time.

When to choose a LINE?

This kind of cash infusion is meant to help finance ongoing operating expenses. Think of a line of credit as an insurance policy providing a cushion of cash when you need it. That’s why it’s important to apply for a line of credit before you need it!

  • A secure line of credit may require collateral.
  • Borrowers with lower credit ratings will pay a higher interest rate.
  • A business owner may be asked to sign a personal guarantee.
  • If you carry a large balance or make only minimum monthly payments, you can end up paying a lot of interest.

Of course, the drawbacks are balanced by the many benefits:

  • You use the line as needed.
  • You only pay interest on the amount borrowed; quick payoffs can result in virtually zero interest paid.
  • The available credit remains in place for the next time you need short-term access to cash.

Remember, use your lenders to help you grow your company. Lenders are in business to supply you with the capital you need to work and be successful. They are eager to help but will always expect that you understand their requirements. After all, they are in business themselves, and as long as responsible lenders and borrowers can continue to rely on each other, commerce will speed along, and capital will continue to flow.

Have You Ever Flown a Profit Simulator?

You don’t need a huge transformation in your remodeling business to see a huge transformation in the results you achieve. In fact, improving productivity and efficiency by only a few percentage points can rock your business world—in a good way.

This is what we demonstrate to remodelers the first time they work with us, either as University students, Roundtables™ members, at the Master Your Remodeling Business Workshop or by conducting a business review. It’s wonderful to see eyebrows raise when these busy business owners realize the impact that this little difference can have on their lives.

If you’re working too hard for too little money, you should look at three areas:

1. Sales Price

When we meet remodeling company owners for the first time, they are inevitably selling their work for less than they need . . . that is, if they want the benefits that come with a successful business.

If you’re saying to yourself, “I can’t charge more in my market. My clients already tell me I’m expensive.” I’m here to tell you that this is head trash. I can take you to any market in the US and most in Canada and introduce you to dozens of remodelers who ARE charging more in your market and living better than 90% of their competitors. It CAN be done – and we can prove it.

2. Overhead Expenditures

There’s nothing wrong with overhead. . . IF you can sell enough at the right price to cover these expenses AND create a net profit that is over and above your salary. If you’re not sure if your business plan allows you to do this, learn how to create a budget to see. You might need to pare back on the overhead expenses for a time until you can ramp up sales.

3. Production Efficiency

It absolutely kills me when I see a remodeling company producing work for more than they estimated the costs to be. After all of the work you’ve done to attract the prospect, qualify the lead, sell the darned thing, estimate it and do all of the work to organize the project, it’s terrible to then earn less money than you need and deserve.

So, if you can consistently produce your projects on budget or with less than a 2% variance either way, you’ll be in the catbird seat. (and if you don’t know if your jobs are being produced on budget, shame on you. Call us, we can help.)

The best remodelers I know focus on improving these three areas by a few percentage points each month, each quarter, each year. These small improvements can deliver a bang for every hour you invest.

It’s amazing how the dollars can pour in when these three areas are in alignment.

Want to see for yourself?

Click here to use our Profit First Simulator. Play around with the numbers, change the overhead, the net and the gross profit by a percentage or two and see how your life can change. Specifically look at how increasing that gross profit can reduce the volume that your remodeling company needs.

But before you go…

I’d love to hear from you! Let me know your thoughts in the comments below.

Pricing on Your Website? Don’t Do It!

A couple of weeks ago I received a guest contributor submission from one of our Marketplace partners, Brian Brauntuch of EVEN Financial. The moment I opened the draft and read the title, 3 Reasons to Put Prices on your Website, I recognized it would be controversial to say the least. I had my reservations about publishing the submission, but in the end, I chose not to let my personal opinions dictate.

That’s the thing about marketing: there is rarely a right or wrong. I like to think of various strategies and tactics that come my way as merely different approaches.

(I’ve seen it many times. Something will fail miserably for one company yet work flawlessly for others.)

But back to Brian’s article. It went out in our PowerTips newsletter and, as I predicted, the comments lit up pretty quickly. Some good. Some bad.

In addition, I received an email from Chris Stebnitz of Stebnitz Builders. He had some strong opinions about the topic and wanted to get it off his chest. He was so passionate in his response, I thought I should share his perspective on the idea of posting prices on your website.

And so, with his permission, I’ve published his email as a counter-point to Brian’s article. (And yes, the email included all the screenshots you see below.) Enjoy:


Mark,

Remodelers Advantage ran an article this week by Brian Bauntuch on the “transparency of pricing” and how professional remodelers needed to catch up with the shopping habits of today’s more tech-savvy consumer. After reading it several times, I was left with the reality that I was so opposed to this position and that it was so far off from the reality I knew, I needed to pen a response.

So, in the interest of fairness, I figured I should give this concept of transparent pricing a fair shot. Maybe people CAN go online and find realistic and reliable information on the internet to give them an idea of what a professional service should provide and at what price. I did as Brian had indicated everyone can do – a simple search online to find out the cost of hiring a professional be it remodeling, finance, tax preparation or even a lawyer.

My search was: “How much does it cost to complete my business tax preparation”

how much to complete tax prep

I took the first website Google gave me, right after the paid ads. Small Business Cost Helper sounded perfect for what I was looking for.

But, before I could get very far, I realized this was anything but the clear-cut answer Brian promised was out there.

  1. First thing (in yellow below) I noticed was “Low $250” to “High $2,000+.” I’m certain those are similar services. You know, like how similar the steak filler at Taco Bell is to a Ruth’s Chris NY Strip. (Plus, can you really get away with telling potential clients that their kitchen remodel may cost, Low: $10,000 and High: $100,000+? How would this ever be useful?)
  2. Next (in purple below) notice the statement “Charges…vary depending on the complexity, the size of the firm and kind of the business.”  Looks like this site doesn’t believe it’s quite so easy to price this professional service.huge price ranges!
  3. And there’s so much more. The first bullet says that tax forms are “usually included.” Does this mean I could be charged as high as $2,000 and then get jacked up for additional fees?

And that’s just the tip of the iceberg. If you take the time to read through the page, you’ll see the word “depending” throughout. Which effectively nullifies any statement the sentence is making. I could go on but I think you see my point.

Actually, one last thing on debunking the myth of professional service pricing over the internet. Check out the website for Ruth’s Chris Steak House. You’ll find no pricing! (With the exception of a “Season Favorite’s Special”). How can this be? I thought everybody was doing this. I thought the public demanded this transparency before making a decision.

If you’ve read [my email] this far, Mark, then thank you. I appreciate you taking the time to let me vent and present my reality.

I realize R.A. used Bauntuch’s column as a launching pad for conversation. But, to newer members, or those just starting out in business, it looks like you endorse it as a “new movement.”

I think these business owners should be made aware of the drastic difference between comparing the price of  “Liver and Gizzards Snacks” with pricing the services of a professional remodeling contractor.

Chris Stebnitz, Stebnitz Builders


Conclusion

So, there you have it. A passionate remodeler’s opinion on putting pricing on your website.

Now to be fair to Brian, I think it should be restated that his original point was that you should make an effort to give your website visitors a general idea of what to expect.

As he wrote, “It is clearly impossible to estimate an exact cost for any project without hearing more from the customer, but your customers will understand and reward your efforts by giving you their business. You’ll be surprised – a little transparency will go a long way.

And to be fair to us, I don’t know that we “endorsed” it. In fact the email that went out said: “[here is] a very interesting take on a contentious subject. See what you think!”

So, I recommend you read through both articles (and their comments) and determine which strategy works best for you.

Thanks for reading and remember… Opinions expressed by PowerTips Contributors are their own. 🙂

See you next week.

Start 2016 Right: with an Accurate December WIP

You do want to know your gross margin every month in 2016 – right? That’s a critical metric to watch as it defines your sales success and production efficiency: raise your rates and your margin goes up, increase labor productivity and margin goes up. Good stuff!

Now, IF you want the very most accurate gross margin % every month in 2016 you have to start with an accurate WIP (aka over/under billings) in December. That’s because jobs open in December flow into the New Year bringing with them accumulated costs and invoices to date as well as accumulated over/under billing amounts. NO MATTER WHAT ANYONE SAYS you must carry those jobs forward into the New Year to get an accurate gross margin going forward.

NOW – it’s not any harder to do an accurate December WIP than any other month of the year – it’s just MORE IMPORTANT.

SO –here’s how:

1. Set up a QB or Sage Memorized Report titled “WIP Dec 2015”

2. From Reports/Jobs-Times & Mileage/Job Estimates vs. Actuals Summary

a. Enter the END date 12/31/15 in the “TO” date cell

Step 1

b. Customize and remove the “$Diff” columns in both Act. Cost and Act. Revenue

c. Customize and from the Header/Footer tab change the “Title” to read “WIP Dec 2015”

Step 2

d. Customer and Filter for ONLY WIP jobs – if correct Job Status has been applied to your jobs and updated as the jobs flow through the system then choose “In Progress”

Step 3

e. IMMEDIATELY you will see 2 very important things:

i. Are the Job Status markers correct for the jobs you expected to see?
ii. Is the QB information correct – in this example Bilbo Baggins’ job needs some clarification – in a BIG way.

Step 4

3. Now – correct in QB and then translate the information to the RA Excel WIP Workbook on the December 15 tab

Step 5

4. Proof the information between the two:

a. Est. Cost (in QB) = Current Job Cost Budget (column G)
b. Act. Cost (in QB) = Actual Cost to Date (Column H)
c. Est. Revenue (in QB) = Current Contract Price (column D)
d. Act. Revenue (in QB) = Total Invoiced to Date (column V)

5. When they match – column by column – you’ve finished the easy part of calculating your year end WIP (over/under billings)

6. Now you can begin the difficult part of the WIP calculation – the Estimated Cost to Complete

a. From Reports/Jobs-time & Mileage/Job Estimates vs Actuals DETAIL pull a report for each job where the Actual Costs to Date are significant – in this example you don’t need a Cost to Complete analysis on Bilbo Baggins’ house as there are so few costs.
b. Drop this report into Excel and makes notes on EVERY LINE ITEM – will you spend more to finish the job or have you saved this amount. From this report you can determine a BEST GUESS of how much the final project will cost.

Step 6

Don’t just assume the numbers are right – this is so important at year end that it’s worth the time to analyze each job which has significant costs to date in detail. You’ll get better at this over time.

c. THEN make the journal entry in QB shown at the bottom of the Excel spreadsheet

Step 7

BUT you’re NOT DONE YET – remember to REVERSE every WIP journal entry (click the “reverse” button and QB will do it automatically.

NOW you’re done with WIP for year end and set up for a more accurate gross profit calculation in 2016. Good work! Keep it up ….

Members, DOWNLOAD the new R.A. WIP Workbook for 2016 from the University website – this allows you to keep all monthly WIP in one workbook for the entire year AND see the all-important December year end 2015 WIP in the same place.

3 Reasons to Put Prices on your Website

Imagine walking into an upscale restaurant on a Saturday night. You’re willing to spend $75. That should include an appetizer, an entree, two drinks and maybe a dessert if it fits within the budget. There’s only one problem: the restaurant’s menu doesn’t have any prices listed.

Based on reviews you’ve read, it would seem the pricing is arbitrary because patrons are reporting paying different prices for the very same dishes. Apparently, the only way to estimate the cost of each item is to have the waiter and chef consult on a “fair price” for each guest that evening.

This is a pretty frustrating scenario, isn’t it? Of course it is. But it should also sound very familiar. This is the experience that most customers have when looking to remodel their home. It’s unlike virtually any other purchasing experience they will have.

We live in an age where any information you need is just one Google search away. As a result, the consumer experience has now become entirely transparent – when a customer is looking to purchase an item on Amazon, they can clearly see the price and customer reviews for any product Amazon offers.

sample amazon reviews

We see this change happening in the financial world, where consumers demand to know any and all fees associated with a financing option or a mortgage before they choose one. More and more consumers are looking to comparison shop to find the best financing options.

As difficult as it may be to create, consumers want the same experience from you. Before they request an estimate, they want to have a good understanding of how much it will cost them. Remodeling is scary to a consumer because it is 1) a big commitment both in terms of time and cost and 2) difficult to translate a vision into a price without the help of a professional.

So why should you attempt to provide definitive cost ranges of projects on your website, given that there are an infinite number of variables that go into an estimate? Here are three important reasons:

  • You’ll win more business through trust: Given that this is likely a first-time customer, they are overly cautious to make sure they are not getting ripped off. By being upfront and transparent, you are showing that you have nothing to hide and will be honest throughout the entire process. This will drive more sales and make a customer more willing to commit to a higher budget.
  • They’ll make faster decisions: If a customer has a good sense of cost per item ahead of time, they will spend less time weighing options with your sales team and feel more empowered to make the yes/no decision at the end of the consultation.
  • They’ll be more satisfied: According to the McKinsey Global Institute, Banks have reaped the benefits of improved customer satisfaction and increased sales by making data available to customers online. The effect will be the same for your business if you make costs and other information readily accessible to the customer.

It is clearly impossible to estimate an exact cost for any project without hearing more from the customer, but your customers will understand and reward your efforts by giving you their business. You’ll be surprised – a little transparency will go a long way.


Opinions expressed by PowerTips Contributors are their own.

How Remodelers can turn $50k into $2,505,000

Building your savingsDo you find yourself constantly aggravated about never having the cash on hand to accomplish all you desire or the capacity to jump at opportunities as they arise?

As small amounts of reserve capital begin to accumulate, it’s incredible how many demands surface to deplete us of that money: quarterly tax deposits, a job gone bad, a late subcontractor invoice that floated in from a job completed 90 days ago; and so on and so on.

Smart owners feverishly squirrel away any extra money not needed to pay this month’s bills and hope they won’t need it next month and maybe even will have a bit more to add to it if they’re lucky. This is building a savings account by the wish-and-hope method.

Really smart owners use a planned method that builds cash reserves. Here’s one I’ve recommended for years and used myself quite successfully.

Go to your bank and open a corporate savings account. The next check that you receive, have the bank show you how to make a split deposit between the operating account and your new corporate savings account.

Do not deposit the entire check into your operating account.

Take five percent of the total check and put it into that corporate savings account. Ninety-five percent lands in your operating account.

After that comes the hard part: You have to forget about that five percent split. Pay all obligations out of the operating account.

Put this money away mentally under a lock and key.

Do not touch it!

I have found that accumulating cash reserves in this way is addicting, and once entrepreneurs begin to taste it, it becomes an unquenchable thirst.

A $1 million company, at the end of one year, should have an unencumbered savings account of $50,000. At the end of five years, this will grow to $250,000 in cash sitting in a standalone account.

If this is accomplished by the time you are 40, and you never add another dime to it after that, you can simply let it grow at a 2.5 percent compounded interest rate until you’re 65 and you’ll have a $440,000 nest egg waiting for you at retirement. At five percent interest, it would be $770,000.

Now that’s really smart.

In that same 25 years, if you do add $50,000 every year, and it keeps growing at a compounded 2.5 percent interest rate, you’ll have $1.75 million. At 5 percent interest, it would be $2,505,000.

Now that’s really, really smart . . . and yeah, it is addictive!

You like playing with numbers? Check out the Growth Stability Calculator over at Remodelers University!

Choosing the Right Entity for your Start-up or Scale-up

length 5:16 (not including bonus content)

Of all the choices you make when starting a business, one of the most important is the type of legal structure you select for your company.

But this is not a “set it and forget it” decision limited to start-ups. If you’re in scale-up mode, then you may want to re-evaluate if your business structure is still the right fit.

In this week’s episode, I’ll cover the four most common forms of business entities, and I’ll discuss the primary factors you should look at when considering the right choice for your business.

What about you?

Have you changed your business structure since it launched? What was the catalyst for the change? Share your story in the comments below!


Choosing the right business entity for scale-ups