Small business dilemma: should startups pursue growth or profit? Aug 29

Start-ups face the dilemma of whether to grow fast to gain market share or focus on becoming cash flow positive – what should your business do?

I had a debate recently with one of my investee companies on whether he should spend more money on sales and marketing in order to grow future revenue. Based on past experience, the investment would gain market share and pay back within three years. The problem was that it would mean turning a budgeted net profit into an actual net loss.

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Has your business outgrown your bank? Aug 23

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Companies are like people—they can change, for better or worse. Are your financial partners growing alongside you or is the relationship stuck in a rut, with each annual review simply a roll-over of the prior year’s facilities?  If you answer yes to two or more of the following questions, you may have outgrown your bank: Continue Reading

Business owners need to have corporate exit plans at the ready Jun 28

Over the past decade there has been much speculation over when a wave of baby boomers would sell their businesses. Study after study predicted a mass transition that never came. As a result, there has been a shortage of supply that has pushed up prices for good businesses. Why are business owners staying on well into their retirement years?

Bob Lawrence, certified planning adviser at Veer Business Advisors, advises business owners on what it takes to be ready to sell.

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