9 Mistakes Plumbing Company Owners Make When Selling Their Businesses That Cost Them Time and Money

Introduction:

If you are the owner of a plumbing company, then you are probably like many other business owners.

You realize that you can’t work forever. In fact, it may be that you do not WANT to work forever despite enjoying what you do.

Even the most successful plumbers eventually get to the place where they are ready to hang up the wrench and do something different.

They may be burned out from the daily stresses of running a business, have physical or family issues that demand more of their time, or they simply want to move on to a new challenge.

However, for many owners, it’s difficult to find the time to sit down and map out a strategy for exiting the business. If you own a successful plumbing company, you probably don’t have a plan in place that will facilitate your goals of selling your business quickly, without a lot of hassles, while creating a lifetime stream of income from the proceeds.

A significant portion of your retirement planning is likely predicated on a successful sale of your business. Exiting a business is truly one of life’s most important transitions; a transition whose outcome can make or break your retirement future.

That’s why it is so important to create an action strategy that will help you avoid making mistakes that can result in you running out of money in retirement.

But, do you know exactly what it will take to create such a sale? When the time comes to leave will you become so frustrated, overwhelmed and desperate that you make poor decisions that will cost you lots of money?

Knowing the answers to these questions is important, especially if you are nearing retirement and more than ready to start the process of selling your business. You must seek solutions that promise a better, more financially lucrative and less stressful way of achieving your selling goals.

Plumbing company owners who want to sell in the 21st Century must seek alternative systems for selling a business that address some of the common mistakes owners make when they try to sell their companies.

I say “try” because more often than not, sellers wind up either not selling at all or having their businesses sit on the market for months, even years, before they find a qualified buyer. Even if they do manage to find a good buying prospect, there are currently so many businesses on the market that they may wind up getting a lot less money than anticipated.

9 of the most common business exit planning mistakes plumbers make and how to avoid them:

It is not uncommon for plumbing company owners to have no exit blueprint at all. They usually either haven’t given it much thought or they make assumptions about the future that may not be true.

1. Not planning at all

As the old saying goes, “it isn’t a plan until it’s written down.” For a succession plan to be effective and implementable, it MUST be written down and reviewed by all parties involved. A plan must be clear, concise, and free of ambiguities that could cause problems later.

A business exit plan, while being distinctly different than your estate plan, should nevertheless complement the estate plan and ensure that your overall retirement goals are being met.

That’s why it’s a good idea to have your CPA and/or estate planner review the blueprint and make suggestions that align with your goals and aspirations.

2. Making too many assumptions

In talking with business owners who are thinking about selling, it’s interesting to see how many of them are making assumptions about both the process of selling and the outcome of the sale. The skies in their world are a different color than reality when it comes to the futures of their businesses.

For example, some plumbing company owners take for granted that a son, daughter, granddaughter, grandson, or other relative will take over the business. They may have the idea that in the event their heirs don’t want it; a group of key employees will step in to buy out the company. Or, some savvy investment group will recognize how great the business really is and snap it up.

Another common assumption made by sellers is that the selling process is easy and quick -a handshake, a check and it’s done. They take it for granted that there will always be someone looking to buy at exactly the time they decide to sell, and that the price they are asking is correct and reasonable.

Unfortunately, none of these assumptions may wind up being true. Selling in the 21st century, with its economic flux and massively shifting demographics, is anything but simple. You can’t afford to predicate your plan on assumptions based in the past.

3.Not including your family in the planning process

“Stan” was the owner of an extremely successful commercial plumbing business.

His oldest son had worked alongside him for several years, proving himself especially adroit at bidding for large jobs, handling customer issues, and managing employees. Stan assumed, without ever really discussing it, that his son would take over from him when he decided to retire.

When he finally made that decision and approached his son, he was stunned to learn that Stan, Jr. had applied to a local business college and had no interest in taking over his dad’s company. Neither did the other kids, for that matter.

It’s easy to avoid this situation (and many others) by keeping your family apprised of your intentions from the very beginning in an honest, transparent manner.

You should work to achieve consensus on all important issues, including discovering whether or not a family member or spouse wants to take over, which family members will stay on as employees or move into management.

Business succession planning is definitely NOT something you want to keep secret from your loved ones.

Meet regularly with the family all during the planning process. Explain to them what your vision of the future looks like and what must occur in order for you to achieve this. By doing these things, you will go a long way toward avoiding the kinds of family feuds that can derail the sale of a business.

4. Poor organization and record keeping

The day before you decide to sell is not the time to discover that your records are a mess and that key documents are missing. If you intend to sell, or even if you want to keep the business in the family, organized records are essential.

Buyers will want to see your financial records for at least the past five years, perhaps even for the last ten years. They will want to know where to locate your marketing pieces, customer lists, employee records, leases, and everything else pertaining to the business that should be filed and easy to locate.

To ensure less stress when selling, start organizing your records right now.

Note: To get a free exit planning checklist detailing exactly what kinds of documents buyers will want to see when valuating your business visit the website listed at the end of this article.

5. Forgetting to give the business “curb appeal.”

A temptation for all business owners who realize they want to sell the business and retire is to stop putting any more money into the company that is necessary to keep the daily operations going.

They might stop repairing or replacing tools and machinery, not wash their fleet vehicles as much, or allow their building and landscaping to become shabby.

Owners might postpone doing things such as buying new uniforms and badges for employees or upgrading safety equipment and signage.

Just as a home that has had some basic TLC before going on the market usually sells for more money, it’s the same for a business that wants to attract more qualified buyers.

Buyers of businesses are in short supply and they know it. They can afford to be very picky when it comes to which businesses they decide to purchase.

A savvy plumbing company owner who wants to sell more quickly and for more money will invest a bit of time and money in ensuring that their company looks appealing and professional.

6. Not sustaining your succession planning focus

Many times plumbing company owners who, coming to terms with their need to plan their exits, throw themselves into succession planning with a vengeance.

They hold formal planning review meetings, talk to their families and seek out the counsel of their trusted advisors and mentors,

Then, for whatever reason, the succession planning process just dies on the vine. It goes nowhere, frustrating the owner as well as all his key employees and advisors.

Why does this happen? I believe it is because business owners tend to see succession planning as a “one of” event, rather than a vital part of the company’s business planning cycle.

Exit strategies risk gathering dust unless they are integrated into the overall plans of any business long before the time comes to leave

7. Failure to integrate your plan into your company culture

It’s absolutely true: Long-term business objectives can’t be reached without an effective succession plan. That plan has to be as integrated into your company culture as your mission statement or guarantees.

Having an exit plan in place will allow you to retain your best and brightest employees by allowing them to know that when ready to sell, they will still have a future with the company.

A company built around the idea that there will be an orderly succession that keeps the business intact and thriving is a company whose managers and key employees are not inclined to abandon.

8. Not understanding that selling takes time

In the same way you take time to plan before performing a complex plumbing project, you must allow an adequate amount of preparation when you get ready to sell your company. In fact, your success is directly related to how much quality time you put into the process.

You need to sit down and write down what your idea of a successful sale looks like. How do you want the sales process to play out? Walk through everything thing has to happen to make this a reality.

You need to be able to articulate what success in exiting your business looks like to you and share this vision with your key players, employees, and family members.

Yes, this will take a lot of time and thought. But it is definitely NOT something you want to rush through just to “get it over with.” After all, if you are like most people, you are only going to get one chance to sell your business and retire successfully. Take the time to do it the right way and avoid any mistakes that could wind up significantly impacting your lifestyle in retirement.

9. Not staying on top of the plan

Exiting your plumbing business, in many ways, is a lot more work than when you first started it. There are many moving parts and complex tasks that must be executed successfully in order to avoid failure.

You need to be sure that all of your employees and family members have bought into your vision and are performing their tasks as assigned.

You are going to need the support of all key players if you are going to break past the lousy 3% success rate for selling a business in the United States.

Check in often with those entrusted to help you exit, and hold each one accountable for completing their assigned tasks within a stated time frame.

Conclusion

Selling your successful plumbing business is a process that should be begun right now, even if you think you NEVER want to sell.

By having a plan firmly established before you need it, you will be able to make better overall business decisions and give your employees, family members, and yourself more peace of mind.

Forex Education Tips – 5 Steps to Successful Forex Trading

Close to 95% of all Forex traders will lose money. We’re not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That’s a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!Like the TV show says … “How’d they do that, anyway?”That’s the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.The Process of Trading is:Strategy > Money Management > Self-MasteryHere are some simple Forex Education tips to help you master the process of forex trading:Success Tip #1 – You’ve Got To Have a PlanYou must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.

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Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.Success Tip #2 – Focus on Your Personal PsychologyKnowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!Success Tip #3 – Be Realistic About Your ExpectationsThis is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.Success Tip #4 – Exercise PatienceRome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.Keep the focus on the process and with time your results will blow your mind.Success Tip #5 – Money Management Is Top PriorityI would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.

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Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% – 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.

The Energy Healing Power of Natural Medicine

Natural medicine is a system that uses a variety of therapeutic or preventive health care practices such as homeopathy, naturopathy, chiropractic, and herbal medicine. Alternative medicine is also known as traditional, naturopathic, natural or holistic medicine. Proponents of alternative medicine are not refuting the validity of discoveries in and the practical uses of conventional medicine, but are merely trying to put some things into perspective. Due to the widespread interest in natural medicine along with the disappointment and disenchantment with Western medicine, many people, especially in the United States and Europe, where conventional medicine has taken a dominant foothold, are seeking the advice and treatment from naturopathic physicians. These practitioners include herbalists, acupuncturists, naturopaths, chiropractors, and others, who advocate preventative health measures as well as recommend wholesome foods and nutritional supplements for their patients and clients. Considering the growing popularity and effectiveness of alternative health treatments and products, certified and licensed professional practitioners of such medical practices should be given their rightful and respectful place in medical society. Natural medicine has been proven not only to be safe, but more effective than Western medicine in treating many chronic illnesses such as diabetes, hypertension, asthma and many other diseases as well

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The history of Natural Medicine and its roots can be traced back thousands of years to ancient cultures such as India and China. Ayurvedic (E. Indian) and Chinese medicine, along with their diagnostic and herbal systems, are still used in these countries extensively, as well as in the United States, especially in Europe, where alternative medicine is well respected. Chinese herbal medicine has a documented history of over 2500 years in China, and is now widely used by practitioners all over the world. It has been legally practiced in the United States. since the mid seventies by licensed acupuncturists. Homeopathy is also a well-known form of alternative medicine discovered in the 18th century by German physician Samuel Hahnemann, but was practically stamped out in the U.S. in the late nineteenth century by the American Medical Association. In 1938, though, the U.S. Food, Drug, and Cosmetic Act finally recognized homeopathic pharmacopoeia as the legal equivalent of allopathic medicine.Another more contemporary and popular form of herbal medicine, called Western herbalism, can be traced back about two hundred years in America. Samuel Thomson, born in 1769, is considered the father of Western herbalism. He discovered over sixty different medically effective native plants by clinical testing, and on the basis of these findings, devised a theory of disease and botanical drug action. Randy Kidu, D.V.M., Ph.D., writes in his articled entitled A Brief History of Alternative Medicine: “The history of herbal medicine is interesting because herbs have been a part of our diet and pharmacy since man began roaming the earth. Coprophytic evidence (seeds and other plant part(found in preserved fecal pellets) points to herbal use by cavemen. Early herbalists practiced their trade since before recorded history in all parts of the world including China, Egypt, Greece, Rome, Africa, England, the Americas, and Europe. Many herbs are also mentioned in the Bible. Today, based on sheer numbers of folks who use one form of herbal medicine or another, it remains the most-used medicine worldwide.”Twenty-five hundred years after the advent of allopathic medicine, modern medicine is still grappling with the idea that herbal medicine could be an effective treatment, and not just quackery, although thousands of years of recorded history has proved its efficacy. A new model of understanding in medicine needs to be incorporated into the existing allopathic model. Because of the growing popularity and effectiveness of natural medicine, practitioners may eventually be given their deserved place in medical society. The incorporation of natural medical practices into the existing model of conventional Western medicine, including the training of new medical doctors, is now called Complimentary Medicine. In order to solve our health problems, this modern paradigm for treatment in medicine must be promoted. This can only truly emerge when bias, self-interest, greed and discrimination is discarded and diverse medical knowledge is promoted and shared, not only between university trained scientists and medical doctors, but among Alternative Medicine practitioners, philosophers, metaphysicians, and other intelligentsia of society as well.

Skip The Lines – Bring The Amusement Park Right To Your Own Back Yard

There’s no shortage of things to do in Atlanta. From professional sports to amusement parks, there’s something for everyone. In fact, Atlanta is proud to house some of the nations largest amusement attractions, including the ever popular Six Flags Over Georgia. Children (and adults) love the thrill and adrenaline rush of the large roller coasters. However, one thing most people don’t like about amusement parks is the long lines. By the time it’s all said and done, you can spend several hundred dollars for your family to have an afternoon of fun, and only get a few rides in. This year, instead of spending the day waiting in long lines for short rides, why not bring the fun right to your back yard? With today’s technology, you can literally do just that! One of the advantages of living in a large city like Atlanta is that we have large rental companies that can make your special event feel just like a trip to Six Flags… complete with a train and an ice cream cart!

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If you’re trying to replicate the amusement park feel, there are definitely specific items that you’ll want to be on the lookout for. As mentioned previously, ice cream carts and trackless trains help make the special event feel more like a day at Six Flags.In order to make your next special event more special, try some of the following tips:

Head online to do some research on the party rental company that has the selection your looking for. If you want an ice cream cart to complete your theme park adventure, look around until you find what you’re looking for.

Don’t settle for the first website you see. There are literally hundreds of inflatable party rental companies in Atlanta. Keep looking for a website that offers a wide variety of rental items that you’re looking for.

It’s better to rent everything from one company. Renting in bulk can help you save money. Larger companies will offer discounts for larger purchases of multiple units and rental items.

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Having a day of amusement park fun is cheaper and easier than ever before. By bringing the amusement park to your front door by using a party rental industry, you can include more people at a lower price. So next time you’re planning a special day, instead of spending tons of money for just a few people and braving the long lines of amusement parks, invite the whole neighborhood and bring the amusement park right to your own back yard!