January 2021 #Smallbizchat: How to Sell a Business & New Cash Flow Options for 2021

#Smallbizchat LIVE is a monthly video chat where small business owners can get answers to their questions. The focus of #Smallbizchat LIVE is to end small business failure by helping participants succeed as your own boss. Please join us live every third Wednesday of the month from 8-9 pm ET Live on my SmallBizLady Facebook Page, YouTube Channel, and LIVE on Twitter.  

How to Build a Business You Can Sell

John Warrillow is the founder of The Value Builder System™, a simple software for building the value of a company used by thousands of businesses worldwide. He is the host of Built To Sell Radio, and author of the bestselling books, Built to Sell: Creating a Business That Can Thrive Without You, The Automatic Customer and his latest book, that has just been released The Art of Selling Your Business: Winning Strategies & Secret Hacks for Exiting on Top. For more information visit: www.valuebuilders.com

SmallBizLady: What selling trends do you foresee with business owners who were hit hard during COVID? Post-COVID?

John Warrillow: The biggest impact COVID has had on the small business market is an increased appetite to sell. Where traditionally businesses have been passed down from one generation to the next, 56% of business owners now say they plan to sell their business to a third party. According to our research, they’ve also moved up their “sell by” date by 20%. 

SmallBizLady: What’s the best way to gain leverage when negotiating with a giant? 

John Warrillow: When a small business owner sells his or her company, it’s usually a David and Goliath battle, so punching above your weight is critical. The secret to gaining leverage over an acquirer is to attract multiple offers, which I lay out a formula for doing in my new book, The Art of Selling Your Business.

 SmallBizLady: What are the evil tricks Fortune 500 giants and private equity groups use to prey on inexperienced owners try to sell their business?

John Warrillow: The dirtiest trick used by acquirers is called re-trading. The acquirer gets you to agree to a non-binding letter of intent where they offer a price for your company. They also include a “no-shop clause” which means that the seller must suspend negotiating with other potential acquirers. With other buyers sidelined, the acquirer knows the owner has given up negotiating leverage by signing the “no shop clause” and drops their offer agreed to in the letter of intent.

How to Better Manage Cashflow in a Small Business

Eliot Buchanan is the Co-founder and CEO of Plastiq, a payments company that helps small businesses pay or accept payments via a credit card or cash for virtually any expense. Eliot founded Plastiq after he found he couldn’t charge his Harvard tuition to his credit card. Since then, Plastiq has enabled millions of consumers and more than 100,000 small businesses to make billions of dollars in payments – particularly where credit cards are not accepted – enabling them to better manage cash flow and growth. Eliot is passionate about helping small businesses achieve their growth potential. For more information visit: www.plastiq.com

SmallBizLady: What is Plastiq?

Eliot Buchanan: Plastiq is the intelligent payments solutions provider – the smarter way to pay and get paid. We help businesses use the credit they already have to pay virtually any bill, even at places that don’t accept credit cards. On the other side, savvy businesses use and promote Plastiq as a way to receive payments for free, giving more choice and convenience to their customers. Plastiq empowers small business leaders to grow faster and more confidently and has signed up more than 1.5 million clients, processing billions in payments for a wide range of expenses, from business supplier payments to contractors, taxes, and rent. The platform allows owners to better manage their cash flow and save thousands of dollars in time spent on making or tracking payments across disparate tools and services.

SmallBizLady: Why do small businesses need a solution like Plastiq?

Eliot Buchanan: A majority of SMBs worldwide (61%) struggle with cash flow and only about half of all small businesses survive five years or longer. A major inhibitor to SMBs acquiring working capital is access to credit, with 27% of SMBs claiming they can’t access the capital they need. Compounding the problem, big banks only approve 23% of funding requests. Plastiq is filling a critical gap by bridging credit access and payables and is becoming the leading working capital solution for small businesses. Plastiq has revolutionized how its more than 1.5 million SMB and other customers optimize working capital by enabling them to pay or accept payments for anything with a credit card, even where credit cards are not accepted. Plastiq empowers businesses to pay or be paid any way they want, including checks, wire transfers, and ACH transfers.

When businesses use Plastiq Accept, there are no merchant fees for them to accept payments, and their customers are given an easy link to make their payment and only have to pay a convenience Plastiq fee to use their standard credit card or debit card. There is no fee if they opt for ACH cash transfer. Plastiq also just announced integration with Intuit QuickBooks. The integration helps businesses save time and money with an even more seamless, automated way to reconcile payments, bills, and invoices with their accounting system with no manual entry required.

SmallBizLady: Tax season is coming up soon. How can Plastiq help small businesses balance tax due dates with ongoing business expenses such as employee payroll and supply purchases?

Eliot Buchanan: By funding ongoing business expenses and taxes through Plastiq and keeping track of finances, businesses can balance how much cash they need to keep on hand for unexpected expenses and even make decisions on how to grow the business when taxes are due. The Plastiq fee is even tax-deductible. 

With Plastiq, you can choose the best way to pay from the platform depending on how much cash you want to keep on hand, whether that’s by debit or credit card or ACH cash payments from a linked bank account. Plastiq tracks all your transactions and syncs them with your QuickBooks online.

Did you find these interviews helpful? Please tell me how they helped and then share them.

Would you like to be a guest on #Smallbizchat Live?

If you are a small business owner, author, or subject matter expert, we’d love to have you appear as a guest on #Smallbizchat LIVE. Submit your name, headshot, Twitter handle, bio, website, topic and 3 questions and answers in paragraph form to demonstrate your expertise. To submit your materials to be a guest on #Smallbizchat click here.

Read More
Source