Carl Grimes – Confidential Business Intermediaries

Business Survival: Are you ready for the next downturn?

Carl Grimes — Tue, 22 Oct 2019 12:02:26 +0000

It’s not a question of “if” but a question of “when.”
Economic downturns (I hate the term “recession”) are a cycle of business.
Everyone knows we’re one day closer to the next one.
As a business owner are you prepared?
Here is the story of one entrepreneur who wasn’t prepared and the lessons he learned.
https://www.cnbc.com/2019/10/20/i-lost-my-business-in-great-recession-im-prepared-for-next-one.html

Tips for protecting your personal assets as a business owner

Carl Grimes — Sat, 05 Oct 2019 16:17:37 +0000

With more than a million lawsuits filed in state courts every year, some reports show all of us have a 10 percent chance of being sued in any given year. That’s especially concerning if you own a business. Brad Wiewel shares helpful tips to protecting you and your business including:

Purchase adequate liability insurance
Structure your business appropriately
Minimize the amount of cash in your business
Take advantage of the asset exemptions provided by the law in your state

Find the complete article here: https://www.nav.com/blog/protecting-your-personal-assets-as-a-business-owner-241379/

Five Reasons To Avoid FSBO

Carl Grimes — Fri, 06 Sep 2019 10:57:55 +0000

FSBO (For Sale By Owner) has become popular in the residential real estate market over the last few years, primarily because of the internet. However, for many reasons, selling a business isn’t like selling a house. That’s why FSBO is a dead end for most business owners. Here are five reasons why (and there are many others) you shouldn’t go it alone.

Time – Most business owners have more than a full-time job just managing their businesses. Selling a business requires hours of preparation, marketing, screening, meeting, negotiating, document preparation, and hundreds of other details. It generally takes 6 to 18 months to sell a business and that’s with someone devoting full time to the effort.
Objectivity – Can you objectively value your business? Can you determine the amount of good-will versus the buyer’s estimate of blue sky? Can you separate your ego from the market value of your lifetime work?
Confidentiality– Keeping quiet and having trusted partners is crucial. Simply put, confidentiality reduces risk and keeps your business momentum from stalling with employees, customers or suppliers.
Screening prospective buyers to determine who is a real buyer versus a tire kicker or, worse, a competitor, who wants to steal your customers and employees. How do you protect your business from folks like that? How do you know who has the money and experience and resources to buy your business?
Negotiations – This is oftentimes where feelings get hurt and money is left on the table. Buyers are increasingly savvy and know how to get sellers to give up terms and money. Buyers have a team of accountants, attorneys and advisors who are experienced in negotiations. Who will represent the seller? How do you negotiate the allocation of assets, an exercise that can cost an unwise, inexperienced business owner thousands of dollars in taxes.

These are just a few of many reasons why smart business owners choose a trained, professional, experienced, full-time business broker/intermediary to represent them in the once-in-a-lifetime experience of selling a business. Reach out to your local CBI team or call or email today for a no-obligation consultation at 877-582-5200 or confidential@cbiteam.com.

CBI Team Named Arkansas Mid-Market Business Broker Of The Year By Global Advisory Experts (GAE)

Carl Grimes — Fri, 06 Sep 2019 10:39:38 +0000

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London, UK – Global Advisory Experts (GAE) named CBI Team in its 2019 Annual GAE Awards. The firm was chosen as the winner of the Mid-Market Business Broker of the Year in Arkansas award. Since 2010, the Global Advisory Experts annual awards have been celebrating excellence, innovation and performance from around the world. The annual awards are designed to reward those most deserving in this global and very challenging environment. They give a comprehensive analysis of the industry and a complete run through of the best of the best in terms of industry experts.

“We’re proud of the recognition. It has been our long-standing practice of having a CBI attorney support our sellers and buyers during the sale & subsequent close of a business. We bring trusted legal expertise to the table to ensure everything is managed well and in compliance to ensure a successful sale,” explained Carl Grimes, CBI founder.

GAE has become a valuable tool for business leaders, in-house counsel, high net-worth individuals, operations directors, investors, accountants, banks, and the general population looking for quality legal advice in all corners of the world and in all relevant fields. GAE now recommends over 2,000 lawyers from 140 countries in over 50 practice areas.

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Be Ready To Sell; Simple Steps To Plan For Your Transition

Carl Grimes — Fri, 06 Sep 2019 10:16:10 +0000

Jon Holbert, CBI NWA Managing Partner

It’s been said the time to plan for the sale of your business is when you first launch it. Truer words have never been spoken. At CBI, our team provides turn-key business sales and transition support, creating benefits for both the seller and the buyer.

“We know business continuity begins with smart planning and strong organization,” explained Jon Holbert, CBI’s Northwest Arkansas managing partner. “When you decide to exit your business, you’ll discover sellers who have taken the time to plan are the ones who could realize even greater rewards.”

Planning for the sale also means planning for the transition. And, as a bonus, buyers will respect an organized seller as it creates trust and adds transparency.

Savvy business owners will have taken the time to compile necessary documentation and detail to allow for a seamless transition and continued day-to-day operation of the business.

Some transition files to compile in advance include everything from alarm codes; office, vehicle and filing cabinet keys; operating manuals; passwords for everything from operational systems to social platforms – Google My Business, Shopify, Etsty, eBay, Facebook, LinkedIn, Twitter, etc. And, knowing how the transition will be shared and with which stakeholders – key clients, important vendors, employees, is critical. Building that list should be top of mind. And, don’t forget service providers. Knowing who to call during an outage or if key machinery needs repair will keep the new business thriving and avoid excessive downtime.

“Everything from contracts, passwords, talent succession and more, makes a big difference and enables the survival of your business in the event of an emergency, crisis or ownership change,” explained CBI founder Carl Grimes.

Not sure where to begin? Contact CBI for a no-obligation business sales and transition consultation.

CBI TEAM Utilizes CAP To Sell Marketplace Grill To Clean Plate

Carl Grimes — Wed, 19 Dec 2018 17:01:25 +0000

By Carl Grimes, Chairman/Founder

Confidential Business Intermediaries/The CBI TEAM of Northwest Arkansas served as Advisor on the sale of Marketplace Grill (www.marketplacegrill.com) to Clean Plate Restaurants (www.cleanplaterestaurants.com) of Galveston, Texas according to CBI TEAM Chairman Carl E. Grimes and Northwest Arkansas Managing Partner Jon Holbert.

Marketplace Grill owner Dave Godwin retained the services of CBI earlier in 2018 and utilizing the proprietary CAP (www.confidentialauction.com) identified numerous prospective buyers and negotiated the sale to Clean Plate.

Marketplace has two locations, Springdale and Conway, Arkansas and is a recognized leader in casual dining with systems and operations that are industry trend setters.

Grimes said, “We’re pleased and honored to have served as Confidential Business Intermediaries to Mr. Godwin and his family on the sale of Marketplace Grill.”

CBI TEAM (www.cbiteam.com) was founded in 1994 to confidentially help people sell and buy businesses to secure their financial future according to Mr. Holbert.

CBI TEAM has four locations, Northwest Arkansas, Central Arkansas, Fort Smith/River Valley, Arkansas and Tulsa, Oklahoma.

For more information email confidential@cbiteam.com or call 479-770-8989.

Business Survival: The Law of Unintended Consequences

Carl Grimes — Thu, 01 Nov 2018 10:33:05 +0000

Carl E. Grimes,

Chairman-CBI TEAM

The Law of Unintended Consequences (or, the Oh, crap, I didn’t mean for THAT to happen) decision.

In a small village in Borneo, well-intentioned health workers once sprayed the straw huts with the now-illegal substance, DDT. The purpose of the spraying was to control the mosquito population, thereby reducing cases of life-threatening malaria among the tribe. Little did they realize the unintended consequences they’d incur.

The spray didn’t kill just the mosquitos. It also killed the lizards that normally inhabited the thatch walls of the huts. The village cats then ate the lizards and died also. That resulted in an unrestrained influx of rats into the village.

Not only that, but the lizards’ demise left the population of straw-consuming caterpillars free to reproduce. They eventually gobbled up the straw roofs of the huts.

Almost every action has unintended consequences. Sometimes they’re harmless; other times they aren’t. But it’s important, as believers in Christ, for us to think through the consequences of our actions.

What if I told you that Not making a decision can lead to the Law of Unintended Consequences. Not taking time to plan the sale of your business can be even worse for your family when they deal with your unintended consequence.

Call us at CBI TEAM today and let’s get started. 877-582-5200

Business Survival: The Armageddon Calculation

Carl Grimes — Tue, 30 Oct 2018 12:45:22 +0000

When will the next economic downturn hit our business community.

As Dirty Harry said, “Do you feel lucky, punk?”

Here are some thoughts from professional business appraiser Daniel Hall on the value of selling NOW and not rolling the dice, hoping for later.

View on Valuations

What may be said with an air of flippancy, could be worth considering in a different context when thinking about our economic times today. Many years ago when my father would say “let’s make hay while the sun shines”, I knew enough to look for the nearest tractor bailing hay and not question that admonition. I catch myself thinking those same words today but in an entirely different setting when I hear our political leaders cheer about another glowing economic report or jobs growth indicator. Yes, we are rolling along pretty well economically now but as business valuation professionals I think we have some responsibility to point out to our clients that it will not always be a clear and sunny day in the proverbial economic hay field. Our lead news article this week points out that one of the leading causes of job losses is the closure of businesses due to the retirement/demise of aging business owners. Holding out for the highest transaction price possible when trying to negotiate the sale of a business may not always be the wisest choice when we are this late in the economic game. No, the financial world may not end tomorrow but it will not be long before the economic events of September, 2007 could begin to replicate themselves and then the exit door may be closed. Business valuation is said to be a forward looking exercise and realizing that storm clouds are gathering on the horizon is a fact to be considered and addressed in our valuation process.

Business Survival: Small Business Revival

Carl Grimes — Thu, 18 Oct 2018 19:04:56 +0000

By: Carl E. Grimes, CBI and Chairman of Confidential Business Intermediaries/The CBI TEAM

Own a business and want some good new?

Here you go:

The Revival of New Main Street Small Businesses

In an article written for Entrepreneur magazine by Kabbage’s Co-founder and CEO, Rob Frohwein, Rob predicts that “by 2025 a whole host of small businesses that once thrived on Main Street USA will be back with a vengeance—thanks to technology.” He says the new and not so new technologies and services are supplying small businesses with valuable tools in online marketing, financing, purchasing and fulfillment that enable them to compete with the larger online companies.
A Pew Research study shows that almost 24% of American adults have earned money in the online economy over the last year. Point of Sale systems and mobile apps, as well as platforms used by such companies as Uber and Airbnb, provide little or no capital investment along with flexibility and control.

Frohwein goes on to say that millennials (people born between 1981 and 1996) will be important in the small business revival. A survey by Coldwell Banker Commercial found that almost 40% of millennials would support small businesses when making buying decisions. Another study by Small Business Development Centers found that 26% of millennials had made their total income from a small business. The study also found that 49% of millennials would like to start their own business in the next three years.

Rob believes that with the tools available today to support small business, along with the millennial generation’s entrepreneurial spirit, Main Street USA will be “bigger (or smaller) and better than ever!

For more information, read Mr. Frohwein’s article: “The New-Old Adage for Main Street 2025? The More Things Change, the More They Stay the Same.”

Business Survival: The Founder’s Tale

Carl Grimes — Wed, 17 Oct 2018 09:46:39 +0000

10-17-18

By: Carl E. Grimes, CBI

Being the Founder of the CBI TEAM, when this article came to my attention yesterday, I read every line. If you are the Founder of a company/business, I’d suggest you read Steve Graves’ insightful tome.

I’ve worked with hundreds of founders in my three-plus decades of executive advising. Men and women representing all shapes and sizes of organizations. Massive nonprofits and hometown businesses, Fortune 100 companies and boot strapping start ups.

I believe founders face some atypical challenges.

I love founders. I love the risk they take and the courage they have. I’m one myself (sometimes a successful one and sometimes a failed one), and I know how hard it is to start something that lasts.

Starting a business or enterprise is difficult. Sustaining it through hard times and scaling it in good times requires an even more diverse skill set. Try to find one person who can do all three of those things well—start, sustain, and scale—and you’ll be looking for a long time.

Most founders are able to start the organization but then, the very skills that helped them start the organization often become the problem. This is often referred to as the Founder’s Syndrome.

This Forbes article does a good job of clarifying the concept.

Over and over again, I’ve seen founders struggle with the same three challenges: overreaching your narrative, one-dimensionality, and insularity.

Overreaching Your Narrative
At the beginning, the brand of the organization is inextricably linked to the founder (and understandably so). Microsoft was Bill Gates, Blake Mycoskie was TOMS (and vice versa) in the early days. If the founder doesn’t press his/her personal narrative there would be no organization.

As the organization grows, however, there should be healthy separation. The organization must develop a narrative other than simply that of the founder. It must birth a culture, mission, and vision with edges other than the founder’s passions, gifts, and personality. Otherwise the organization will delay in growth and development.

For example, if the founder is driven by hyper-ambition, the organization is in constant growth mode. If the founder loves victory, the organization is out to defeat all competitors. If the nonprofit founder expresses only compassion, the organization may quickly exhaust its resources.

The founder has a narrative, but so does the organization. And over time they must find a healthy separation.

One-Dimensionality
Put simply, most founders are workaholics with all the energy focused on the organization we birthed. Very often we say, “it doesn’t feel like work” because we enjoy the work so much. It is very common for founders to have no hobbies and no life away from our work.

Every growing organization asks more and more from the founder. In the end you can feel trapped. You’ve invested so much of yourself into the organization that dialing down could topple the very thing that defines you.

But every founder must grow as a leader and as a person at the same time they are growing the organization. And this will only happen if the founder has a fierce conviction of the value and payback from making that investment.

I call this “building a composite scorecard.” This includes the many roles in life other than the founder/work role. This includes nurturing my inner person, my physical health, my relationships, my faith, my service to my community, my family, etc.

Over time a founder with no life other than working in the organization he or she birthed will find himself in trouble. Succession becomes impossible. Fulfillment eludes us. Recruiting and retaining balanced leaders can’t happen. Having a healthy company culture unravels. And then the crash of all crashes happens if for some reason the organization doesn’t make it (which happens more times than not).

Insularity
Without outside perspective, the founder can drive the car straight off the cliff.

I always say, “You don’t know what you don’t know.” Therefore, I need people around me who can help, not simply regurgitate my own point of view.

The film Lincoln was based on Doris Kearns Godwin’s book Team of Rivals. Godwin wrote that Lincoln’s genius lay in his decision to surround himself with people who disagreed with him.

Most founders, though, build a circle of folks who only give good news. They often establish their board like this: The founder calls his accountant friend and says, “I’m starting an organization and I need somebody who can do the books. Want to be on the board?”

That organization will wake up five years down the road with a rubber-stamp board. Why? Because those board members are essentially volunteer staff. All power and influence resides with the founder. Decisions (including staff hires) are rarely debated or tested.

In this scenario, the founder says, “Jump!” and the board says, “How high?” All strategic direction comes from the founder and the organization ends up lurching headlong from one ditch into another. The board is working for the founder rather than the other way around.

Wise founders find dissenting viewpoints and learn when to listen to them.

Conclusion
To some degree, I can’t blame founders. Noam Wasseman (author of The Founder’s Dilemmas) says that only 16% of businesses have single founders, and Harvard Business Review says that only 25% of businesses ever return the projected return on investment.

Therefore, the few founders who have launched a successful organization have, to some degree, earned the right to self-confidence. They’ve emerged successful in the “survival of the fittest” world, so listening to others seems like folly.

This argument is the kind that looks to heroes like Henry Ford, Walt Disney, and Steve Jobs, singular figures who created cultural icons.

And yet, Henry Ford had to shut down his assembly lines in 1927. Disney stock rose the day Walt Disney died. Steve Jobs was fired by his own company. In each of these cases, the founder let his personal narrative, one dimensionality and insularity stifle the growth of the company.

Founders are a gift to the world. Without them, much would just be hype and hot air. But that amazing contribution doesn’t automatically erase the challenges with the role. If you are a founder, think deeply on the three big dangers mentioned above. Spotting them early is so much easier than the damage and confusion caused late in the game.

The post A Founder’s Role appeared first on Dr. Stephen R. Graves.

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ABOUT THE STEVE GRAVES WEEKLY

The Steve Graves Weekly explores strategy, leadership, and impact for helping leaders grow themselves and their business. The topics covered always include practical, proven advice that Steve learned on the “street” by helping thousands of organizations over the years. More often than not, Steve’s lifelong journey of faith emerges, adding another level of insight.

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