For many business owners, the sale of their business is a once in a lifetime event, perhaps the culmination of years of hard work to grow the value of the business. In many cases, the business represents the owner’s principal asset to fund a comfortable retirement. Even if retirement is not the motivation, selling business owners are always focused on retaining as much of the proceeds from the sale of their business as possible. Unfortunately, business owners have to share part of their good fortune (and the results of their hard work) with Uncle Sam in the form of taxes.
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KPIs, Key Performance Indicators, are an important way for any manager or business owner to keep track of how he or she is doing. Remember one key point – If you don’t measure it, you can’t improve it. Which KPIs should you use to determine the success of your business? It would be nice and easy to tell you the six (6) most important KPIs for your business. The problem is that each business is different, and to make the decisions more difficult, each business owner has different goals. So how do you determine what KPIs are the ones that
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I was visiting with a business owner the other day, and we were talking about his Cash Flow. The chart he showed me had a slow, but steady decline in cash flow over the past two years. I asked him what he was going to do about it, and he took a long ruler, laid it on the trend line, and pointed at the point where the cash flow hit $0. He said “That’s when I leave the company.” This raises a lot of issues. The biggest one, and one I hear from an increasing number of business owners is
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trying to run away from taxes
  Nobody wants to pay more taxes than they need to. But this is a strange time of year in a strange year. The tax code is in flux, and what should you do between now and the end of the year to improve your tax situation? The conventional wisdom is that taxes aren’t going to go up for businesses next year. They might go down, or they might be the same, but they’re not going up. So, what should you do to take advantage of whatever changes might happen? The secret sauce is to reduce or defer your taxes
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keep more of your money cut your taxes
It’s too late to reduce costs or increase sales if you haven’t been doing it all year. So how can you improve your company’s performance before year end? Business success is not defined just by higher Net Income, it’s Free Cash Flow that’s critical. That’s spendable cash. You can reduce your taxes without reducing your Free Cash Flow. Review the assets on your balance sheet. What are the REAL numbers? By correcting those balances, you might reduce your assets, thereby reducing Net Income and your taxes. Correct your inventory – reducing the value reduces your taxes. A physical inventory will
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