{"id":32953,"date":"2020-02-14T09:27:37","date_gmt":"2020-02-14T14:27:37","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?p=32953"},"modified":"2020-02-14T13:41:15","modified_gmt":"2020-02-14T18:41:15","slug":"business-report-are-you-working-on-your-business","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/","title":{"rendered":"Business Report: Are You Working On Your Business?"},"content":{"rendered":"<figure id=\"attachment_32954\" aria-describedby=\"caption-attachment-32954\" style=\"width: 194px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-32954\" src=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2020\/02\/faz-column-ferraro-c-1-194x300.jpg\" alt=\"\" width=\"194\" height=\"300\" srcset=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2020\/02\/faz-column-ferraro-c-1-194x300.jpg 194w, https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2020\/02\/faz-column-ferraro-c-1.jpg 576w\" sizes=\"(max-width: 194px) 100vw, 194px\" \/><figcaption id=\"caption-attachment-32954\" class=\"wp-caption-text\">Stephen Ferraro is a partner with FAZ Forensics in Saratoga Springs.<\/figcaption><\/figure>\n<p>by Stephen Ferraro,<br \/>\nCPA\/ABV\/CFF, MAFF, CVA, CEBC<br \/>\nBusiness owners need an ongoing planning process to grow, maximize business value and create the most successful business transfers. It\u2019s just as important to work on your business as it is to work in your business.<br \/>\nThe process should coordinate business valuation, growth planning and business transfer analysis with personal retirement planning. The ultimate goal\u2026successfully operate, grow and transfer your business on your terms and time frame, while maximizing and protecting your personal wealth.<br \/>\nMaximize Business Value<br \/>\nTo determine how fast you can get to where you want to go, you need to know where you are now. That\u2019s why business valuation is so important. As part of the process, you should review the profits and cash flow generated by your business so you can understand the range of values the market will place on your business as it is today and in the future.<!--more--><br \/>\nYou should assess your value drivers\u2014those factors that enhance the inherent value of your business\u2014and discuss strategies that allow you to maximize business value. The process should focus on key areas such as growth, recurring revenue, product differentiation, customer diversification, financial, sales and marketing, customer satisfaction, human resources and more.<br \/>\nMental Readiness &amp; Owner Dependence<br \/>\nWhen will you be ready to leave your business? Mental readiness for a transition is a critical factor for nearly every business owner who wants to continue with their business, but still protect their illiquid wealth. You need to know what the business really means to you\u2014personally\u2014and what you are going to do with your time after the transition.<br \/>\nPersonal Value Gap<br \/>\nIn order to answer the question \u201ccan I afford to transfer my business?\u201d You must know your personal financial situation. In other words, is there enough money saved outside the business to provide financial freedom.<br \/>\nIn the case of most owners the majority of your wealth is locked in your business. You need to understand the following:<br \/>\nWhat you currently have saved outside the business.<br \/>\nWhat other sources of income are available to you today and in the future.<br \/>\nWhat your lifestyle expenses are today and are expected to be in the future.<br \/>\nWhat the difference is between what you have for assets and income versus what you need for personal living expenses. This is called your Personal Value Gap.<br \/>\nThe Personal Value Gap analysis provides an overview of your current financial situation as it relates to being financially free from your business. As part of this process you should discuss and review the following:<br \/>\nYour existing lifestyle and how much the business pays for personal expenses.<br \/>\nYour current savings, investments, and savings habits, as well as, your current and projected sources of income (such as real estate, social security, pension income, etc.).<br \/>\nYour comfort level with projecting certain estimates of return on investments and growth of your liquid assets to complete the Personal Value Gap calculation.<br \/>\nTransfer Options Analysis<br \/>\nAs you move through the process you will continually explore when, as well as how you would like to transfer your business. This also leads towards identifying the transfer option(s) that are most likely suitable for you to begin to build your transfer strategy around.<br \/>\nEach business owner can identify transfer alternatives available that fit your respective situation. You should examine all the options available to determine which one is the best fit for helping you to achieve your overall goals. This may include one, or a combination of, the following transfer options:<br \/>\nSale of the business to an outside party\/strategic buyer; private equity group recapitalization; employee stock ownership plan (ESOP); management buyout (MBO), and gifting program<br \/>\nThe various transfer options may have different business values associated with them. In order to evaluate the outcome from each of the options, you should understand the \u201crange of values\u201d that exists for your business. The estimated range of values for the transfer of a business could include the following different values:<br \/>\n\u201cFair market value\u201d through the establishment of an ESOP, MBO or gifting program; \u201cinvestment value\u201d an investor (such as private equity) may pay for your business; and \u201csynergistic or strategic value\u201d a competitor may pay for your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Stephen Ferraro, CPA\/ABV\/CFF, MAFF, CVA, CEBC Business owners need an ongoing planning process to grow, maximize business value and create the most successful business transfers. It\u2019s just as important to work on your business as it is to work in your business. The process should coordinate business valuation, growth planning and business transfer analysis [&hellip;]<\/p>\n","protected":false},"author":196,"featured_media":32954,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Business Report: Are You Working On Your Business? - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Business Report: Are You Working On Your Business? - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"by Stephen Ferraro, CPA\/ABV\/CFF, MAFF, CVA, CEBC Business owners need an ongoing planning process to grow, maximize business value and create the most successful business transfers. 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The process should coordinate business valuation, growth planning and business transfer analysis [&hellip;]\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Glens Falls Business Journal\" \/>\r\n<meta property=\"article:published_time\" content=\"2020-02-14T14:27:37+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2020-02-14T18:41:15+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/wp-content\/uploads\/sites\/109\/2020\/02\/faz-column-ferraro-c-1.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"576\" \/>\r\n\t<meta property=\"og:image:height\" content=\"890\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"jessewinters\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"jessewinters\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/\",\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/\",\"name\":\"Business Report: Are You Working On Your Business? - Glens Falls Business Journal\",\"isPartOf\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website\"},\"datePublished\":\"2020-02-14T14:27:37+00:00\",\"dateModified\":\"2020-02-14T18:41:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/b937a48daf87d7a8bd713a73b5d6a1ae\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Report: Are You Working On Your Business?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#website\",\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/\",\"name\":\"Glens Falls Business Journal\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/b937a48daf87d7a8bd713a73b5d6a1ae\",\"name\":\"jessewinters\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b496e0843f9d888b12500994b6a8562b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b496e0843f9d888b12500994b6a8562b?s=96&d=mm&r=g\",\"caption\":\"jessewinters\"},\"url\":\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/author\/jessewinters\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Business Report: Are You Working On Your Business? - Glens Falls Business Journal","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2020\/02\/business-report-are-you-working-on-your-business\/","og_locale":"en_US","og_type":"article","og_title":"Business Report: Are You Working On Your Business? - Glens Falls Business Journal","og_description":"by Stephen Ferraro, CPA\/ABV\/CFF, MAFF, CVA, CEBC Business owners need an ongoing planning process to grow, maximize business value and create the most successful business transfers. 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