Tag Archives: Michael Connor

Can You Continue to Fund Your Business Growth? A Look at Your Balance Sheet – Michael Connor

By Michael Connor

iStock_ChartCan your membership business continue to fund its growth? The balance sheet can answer this for you right away.

By knowing how to read a balance sheet, you’ll also be able to have a relevant discussion about it – or a discussion about the balance sheet of a business you’re interested in acquiring.

Two other uses: 1) Vendors and lenders can use the balance sheet in considering the creditworthiness of the business. 2) owners and potential investors can use it to help determine the value of the business.

Let’s look at the balance sheet to get a better understanding and get a picture of your financial health.
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6 Ways to Increase the Value of Your Membership Business – Michael Connor

By Michael Connor

sales_upWhen it comes to business valuation, you may be thinking: “Why should I even care about having a business valuation? I’m nowhere near retirement or looking to sell my business.”

While business valuation helps to circumvent “price shock” near the time of the sale, valuation isn’t just for retirement and planning your exit strategy. Smart business owners make the valuation process part of forward planning. Understanding the value of your business today will help you make informed decisions that positively impact the success of your business in the future.

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Valuation: How Much is Your Business Worth? – Michael Connor

By Michael Connor

dollarsHave you ever wondered what your business is actually worth? The price a buyer is willing to pay could be very different than what you think your company is worth. In this article, I’ll cover some simple ways to run a quick business valuation.

Keep in mind the methods will give you a general idea of your business worth. I strongly urge you to utilize an attorney and/or accountant with specialty in estate planning and taxes for a more formal and comprehensive valuation.

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Business Owner Cheat Sheet – Financial Terms Defined – Michael Connor

By Michael Connor

ABCEvery business owner, manager, and director needs to understand the basics of finance in order to be successful. At some point you will find yourself in a discussion in which certain financial slang will be used and it’s important for you to comprehend the language. This article will simplify those sometimes puzzling, but need-to-know, financial terms. This will be a good first step in learning the common jargon used and what each term means.

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Seller Financing: What Every Business Acquirer Needs to Know – Michael Connor

By Michael Connor

youngboysoodofoldIn today’s tough economy, buyers of businesses are having difficulty obtaining funding through some of the typical funding sources ― bank loans, friends and family, or taping into retirement funds.  If you are buying an existing Martial Arts school or fitness facility, you should consider seller financing.

Seller financing is when the seller allows the buyer to make a down payment and then make subsequent payments over time until the loan is fully paid. This type of transaction is becoming more and more common today.

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Profit & Loss Statements: What Every Business Owner Should Know – Michael Connor

By Michael Connor

profit_lossAs an owner or manager of a business I”m sure you have heard of Profit and Loss (also known as P & L). But do you know what it is and understand its components?

It”s important to understand in order for you to talk knowledgeably with your managers, bankers, tax advisors, and investors. In this article, I”ll show an example of a P & L Statement and explain what the terms mean.

A Profit and Loss Statement or Income Statement is one of the documents that show the financial condition of a company. Other documents include a Balance Sheet, Cash Flow Statement, and the Statement of Retained Earnings.

Here is an example of a P & L and an explanation of each item:

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9 Tips to Keep the Cash Flow Flowing – Michael Connor

By Michael Connor

describe the imageNo matter how impressive your business plan or Income Statement may appear, you will be out of business rather quickly if you don’t have the cash to pay your landlord for next month’s rent.

Every business has peaks and valleys in their business cycles ― particularly membership-based organizations like Martial Arts schools, MMA gyms and fitness businesses. These peaks and valleys could be a matter of days, weeks, months or even longer. Whatever the case, smart business owners have a plan for what to do with cash surpluses during the peaks, and what to borrow during the valleys, in order to stay strong and in business.

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Developing a Solid Business Plan for Your Membership-Based Business – Michael Connor

By Member Solutions

Developing a Business Plan for a Membership-Based BusinessWith high unemployment rates, foreclosures in the businesses that surround us, and an ever-tightening credit environment, 2012 will prove to be yet another challenging year for small business owners.

Developing a business plan is a great tool to help you effectively address any challenges you’ll face. More importantly, a solid business plan will help you set and reach your business objectives. After all, if you don’t have goals to meet, how do you know what you are aiming to achieve?

Here’s where to start when developing a business plan:

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8 Finance & Management Tips for Your Membership-Based Business – Michael Connor

By Member Solutions

The Holidays and New Year are fast approaching, making it an opportune time to put some good practices in place now and into 2012.

1)  Keep good records
You don’t know where you’ve been or where you’re going without good record-keeping.  As the business owner, you should be reviewing a set of financial statements regularly. The financials should show you the health and heartbeat of your business in a format that you understand. Review your financials with your trusted staff members and come away from staff meetings with actions and goals for the future.

Read Techniques for Smart Record Keeping for a list of records you should include in your record keeping system.

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