Knowledge Is Power? Hogwash!

By Dan J Spiegel

Misconceptions Of Knowledge

During my daily reading of Think & Grow Rich (which is one of the best things anyone can do for themselves), I came across a section that really resonated with me. It addressed knowledge: general vs. specialized.

The beginning of Chapter 5 states, "General knowledge, no matter how great or variety it may be, is of but little use in the accumulation of money. The faculties of the great universities possess, in the aggregate, practically every form of general knowledge known to civilization. Most of the professors have but little money. They specialize in teaching knowledge, but they do not specialize in the organization, of the use of knowledge."

When I read this it was reiterating what I already know, especially as a golf instructor who's business is having specialized knowledge, but it was said in a different way that was very powerful.

In other words, if one never acquires specialized knowledge about anything, it is almost impossible to be rich. If one specializes in industries that are not known for wealth or continuous growth and advancements in technology, they might also be doomed regarding attaining wealth.

When a new student comes to me for golf lessons, they are learning specialized knowledge, as well as, over time, how to apply it. When one seeks change in any part of their life, similar actions are required to achieve any goals they may have regarding that new skill.

Specializing Knowledge Can Be Uncomfortable

Sadly change in and of itself is uncomfortable for most people, so remaining inside their own box of comfortability is the path of least resistance. As a result, no real progress is ever made in their lives in the areas that could provide the most benefit.

What does it take for people to take the leap of being temporarily uncomfortable in order to gain specialized knowledge to change their lives forever? Sometimes it is a traumatic event. Sometimes it is a look in the mirror and the reflection is undesirable. But whatever causes it, it needs to be welcomed. Even forced. We all have our flaws. Most of us are self-aware of these things.

For the most part, going to college fuels our need for general knowledge. Sure we narrow down our focuses on the things we enjoy, but nothing learned ever is more valuable than the actual experience in the work force. Often times college graduates realize what they learned in school was relatively needless in relation to what is quickly learned when they are out in the "real world."

The advancing technology of today and the entire world going online is an amazing shift in mindset for most of us. The 35+ year olds in this world certainly remember a life of no internet or cell phones, but can't imagine life without them now. Money, lifestyle, culture, and KNOWLEDGE have all moved or are moving online.

Become A Leader Through Knowledge

No matter what one enjoys or considers themselves to be an "expert" in, there is still much to learn and ways to get better. Additionally, taking yourself out of your comfort zone to learn how to be a person of influence and a leader online can do wonders for your life and self-esteem.

Imagine a world where everyone gave a noble effort to be helpful and lead others to specific answers on how to do anything. Fix anything. Achieve anything. Some of that is out there. Some of it is incorrect or unreliable. But there is always room for those looking to make a positive difference in this sometimes frightful world.

I and many, many others have found the way to capitalize on their specialized knowledge on a mass scale. It first starts with reading Think & Grow Rich daily. The rest is focusing sharply on becoming a person people look to for specialized advice. There is no limit to what you can achieve in such a scenario, that specialized knowledge created.

Want to become specialized in the online world? Want to turn your passions and interests into things you can market for the betterment of you and your family? Click here to watch a short video and change your life: http://myinternetfortune.com.

Knowledge Is Power? Hogwash!

By Dan J Spiegel

Misconceptions Of Knowledge

During my daily reading of Think & Grow Rich (which is one of the best things anyone can do for themselves), I came across a section that really resonated with me. It addressed knowledge: general vs. specialized.

The beginning of Chapter 5 states, "General knowledge, no matter how great or variety it may be, is of but little use in the accumulation of money. The faculties of the great universities possess, in the aggregate, practically every form of general knowledge known to civilization. Most of the professors have but little money. They specialize in teaching knowledge, but they do not specialize in the organization, of the use of knowledge."

When I read this it was reiterating what I already know, especially as a golf instructor who's business is having specialized knowledge, but it was said in a different way that was very powerful.

In other words, if one never acquires specialized knowledge about anything, it is almost impossible to be rich. If one specializes in industries that are not known for wealth or continuous growth and advancements in technology, they might also be doomed regarding attaining wealth.

When a new student comes to me for golf lessons, they are learning specialized knowledge, as well as, over time, how to apply it. When one seeks change in any part of their life, similar actions are required to achieve any goals they may have regarding that new skill.

Specializing Knowledge Can Be Uncomfortable

Sadly change in and of itself is uncomfortable for most people, so remaining inside their own box of comfortability is the path of least resistance. As a result, no real progress is ever made in their lives in the areas that could provide the most benefit.

What does it take for people to take the leap of being temporarily uncomfortable in order to gain specialized knowledge to change their lives forever? Sometimes it is a traumatic event. Sometimes it is a look in the mirror and the reflection is undesirable. But whatever causes it, it needs to be welcomed. Even forced. We all have our flaws. Most of us are self-aware of these things.

For the most part, going to college fuels our need for general knowledge. Sure we narrow down our focuses on the things we enjoy, but nothing learned ever is more valuable than the actual experience in the work force. Often times college graduates realize what they learned in school was relatively needless in relation to what is quickly learned when they are out in the "real world."

The advancing technology of today and the entire world going online is an amazing shift in mindset for most of us. The 35+ year olds in this world certainly remember a life of no internet or cell phones, but can't imagine life without them now. Money, lifestyle, culture, and KNOWLEDGE have all moved or are moving online.

Become A Leader Through Knowledge

No matter what one enjoys or considers themselves to be an "expert" in, there is still much to learn and ways to get better. Additionally, taking yourself out of your comfort zone to learn how to be a person of influence and a leader online can do wonders for your life and self-esteem.

Imagine a world where everyone gave a noble effort to be helpful and lead others to specific answers on how to do anything. Fix anything. Achieve anything. Some of that is out there. Some of it is incorrect or unreliable. But there is always room for those looking to make a positive difference in this sometimes frightful world.

I and many, many others have found the way to capitalize on their specialized knowledge on a mass scale. It first starts with reading Think & Grow Rich daily. The rest is focusing sharply on becoming a person people look to for specialized advice. There is no limit to what you can achieve in such a scenario, that specialized knowledge created.

Want to become specialized in the online world? Want to turn your passions and interests into things you can market for the betterment of you and your family? Click here to watch a short video and change your life: http://myinternetfortune.com.

Is It Always A Good Idea To Pass The Family Business To The Children?

By Robert John Kemp

For many owners keeping the business in the family is an emotional as much as a commercial decision. There are genuine benefits to keeping a company in the family. On the other hand I have seen enough failed transfers to know that there are some downside risks as well. A recent experience with a local family company that had run into difficulties set me thinking. Just how does a business owner decide if it is a good idea to pass on the family business rather than try to sell it? What are the pros and cons of transferring a business to the children?

The benefits are easy to list. The owner is spared the cost, disruption and stress of a company sale process. If the children have the drive and ability to run a company, and get on well together, they should earn more than they would as paid employees. There is also the emotional satisfaction of seeing the company you have built live on. These are not benefits to be lightly set aside.

So what are the risks that might outweigh these clear benefits?

Portfolio management to spread risk is the most basic rule of wealth management. Passing the company on can result in an unhealthy concentration of family wealth in one asset. This can be solved in part by requiring the younger generation to pay for the company, but the resulting debts can drain cash and limit future growth.

What if the kids just don't have the ability to run and grow the company, or just don't get along? Hard as it may be you have to find a way to take a dispassionate view of your children's ability. You also need to be sure that running the business is what they really want to do. It takes a lot of energy and passion to run a successful business; if your children are motivated only by a sense of obligation they are less likely to be successful.

Building a business takes independence of mind and belief in your own judgement. If you have these qualities it might not be easy to let go. Some of your children will most likely have inherited the same traits sowing the seeds of future conflict. Are you sure you can walk away?

If the business in need of fresh energy and your children have worked in the company for several years, they may not be the best source of new ideas. New owners may be better placed to take the business forward.

Despite the emotional attraction of passing a company on to the next generation experience tells me that it is not the right decision for every family. It may only be the right decision for a minority of family companies.

Robert John Kemp is Managing Director of UK business broker Select Business Sales. Select specialise in retirement sales of private companies.

Visit our website to find out more: http://www.sellingprivatecompanies.co.uk

Finding The Right Kind Of UK Business Broker To Sell Your Business

By Robert John Kemp

At the end of last year I met with the owner of an e-mail marketing bureau contemplating a retirement sale of his company. We were the fifth broker he had met and it is fair to say he was confused about the different approaches and fee structures he had been offered. It was not the first time we had faced this situation, and I offered him my own much practiced verbal overview of the types of broker operating in the UK market. In summary this is what I told him.

At one end of the scale are the advertising based agencies. You can recognise them by their websites holding long lists of businesses for sale. This type of agency is best for local market retail outlets and any business with less than �250k turnover. A business of this size will typically be bought by an owner manager looking to make a full time living. Advertising is the only practical way to reach this type of buyer. Upfront fees will typically be less than �2000 but the commission on eventual sale might be as high as 8%. The downside of the advertising based agency is that there will be limited or no support through the sale process. If you cannot handle the sale process yourself you might need to involve your accountant or legal advisor at a further cost.

For mid-range private companies with turnover up to �10 million a full service broker is a better choice. This type of broker will put considerable effort into preparing detailed sales particulars and financial forecasts for your company. They will research the most likely buyers and approach them directly to create a market for the company. Upfront fees will be in the range of �5000 and expect to pay a commission on eventual sale of 5%. A good broker will provide assistance and support at every stage of the sale process.

Companies above �10m turnover will typically employ the corporate finance team of a large chartered accountancy practice or a "boutique" corporate finance agency. The approach will be much the same as the full service broker but the advisors should have more experience of the expectations of large corporate buyers. Upfront fees for this type of advisor will typically be �10-15000 usually paid as a monthly retainer. Expect a commission on sale of 2% to 5% depending on the size of your business.

Robert John Kemp is Managing Director of UK Business Broker Select Business Sales. Select specialise in retirement sales of private companies.

Visit our website to find out more: http://www.sellingprivatecompanies.co.uk

6 Smart Things Entrepreneurs Can Do To Save Time

By Sule Yesufu

I have heard it said by many management gurus that time is money. Saving time therefore is like saving money. Saving money in a business has a lot of benefits for its cash-flow. Many businesses today have also realized that saving time is one other smart way to reduce costs. Management practices that save time are now trending topics among business managers worldwide. Everyone now wants to do things more efficiently and effectively as a way of adding value to the bottom-line of their businesses. They now know that getting more done within a shorter time frame increases effectiveness and efficiency. Among the many things business managers can do to save time, these six things appear to be the smartest.

01. Planning before executing. This is one of the smartest time-saving tools available to business managers. The ten or fifteen minutes spent each morning to plan the day's work creates order and sequence which consequently saves plenty of time for those executing the plan. The time spent to draw up a plan usually turns out to be the best use of time at execution stage. If a plan is in place, many smart managers always have in front of them each morning a "to-do" list. That is the list that enables them to prioritize activities for the day thereby accomplishing more within a shorter time frame.

02. Use strategy for responsibilities. This way, you can take on tasks at once which can be accomplished together. If it is possible to accomplish two or more things together which the available logistics allow, it should be done. For example, if you have to run an errand along a certain route, it saves plenty of time to take on all the tasks to be done along same route. That is one sure way to save plenty of time and efforts.

03. Use fast delivery services. Whether you want to deliver a mail or a package, what you need is fast and safe delivery. Courier companies are faster and more reliable than surface mails when delivering parcels. Emails beat surface mails all the time in mail delivery when speed is required. These are tools business managers can always employ to save time and get a lot more done as well.

04. Delegate tasks. You must accept that you are human and as such you have plenty of limitations like everyone else. You can therefore not do everything all by yourself. You can get a great deal more done by asking others to take some tasks off you if they have the competence to accomplish such tasks. That way, more gets done within a shorter time period.

05. Document your activities. When written down, it is easier to remember tasks to be performed than when they are not written. You can form the habit of having a note pad around you most of the time when at work. When on phone or while discussing with an important customer, you can always jot down important points to help you remember to take action later. That saves time and increases efficiency.

06. Build short breaks into your work schedule. You can give yourself little breaks while at work to recover your thinking pattern and recoup some mental energy. If you work full steam every day no matter how much you love the work, sooner than later you will experience the law of diminishing returns. This is because the human brain has its limits. Apart from weekend breaks, you can also take mini-breaks every few hours while at work. You can use such mini-breaks to grab a cup of coffee or just walk around to improve your blood circulation. After that, you will be able to return to your desk completely energized and ready for more work.

Every business manager needs all the time she can get to accomplish the goals of her business. Anything she does which helps her to accomplish more within a shorter time frame is usually very helpful on the long run. Doing things smartly and intelligently is the key here because time waits for no one. When customers want a service, they want it real fast. Anyone who can deliver to them at the shortest possible time usually gets more of their patronage. That is the one who will get the largest market share and subsequent profits, a scenario every smart business manager should always crave for.

Sule Yesufu, a Certified Speaking Professional, is a Strategic Partner in S D Y Management Consult, a firm of Investment, Small Business and Entrepreneurial Consultants. He is a Published Author and a Newspaper Columnist. An expert in Small Business and Personal Development, he focuses on communicating his ideas and thoughts mostly through his Training Seminars and popular free blog. He offers useful tips on Self-Improvement, Personal Finance, Entrepreneurship, Current News, Politics and Business in Nigeria, the most populous country in Africa.

For more tips visit: http://www.sdymanagers.com/apps/blog/

Selling Your Company - Should You Approach A Competitor?

By Robert John Kemp

Business owners are always understandably nervous about approaching a competitor during a company sale process. There is always the fear that any information provided will be used to steal customers, or that rumours will start that the company is for sale unsettling staff and customers.

We recently completed the sale of a private company to its biggest competitor. We tiptoed around the competitor for the first few weeks of the sale process. Then late on a Friday afternoon the inevitable happened. An adviser to the competitor saw our advertisement on a corporate finance bulletin board and brought it to his client's attention. The Managing Director of the competitor called me the following day, certain he knew which company was for sale, and asking to be part of the process.

By this time we had a couple of offers on the table but not at the full price our client was looking for. Potential buyers were still coming to initial meetings and we might be able to squeeze more out of the existing offers through negotiation or setting up an auction. We had options, but whichever way we looked at it there was no doubt that the competitor would get the most benefit from acquiring the company, and could best afford to pay the price we were looking for.

It's not difficult to understand why the competitor could afford to pay more. Duplicate administration costs could be squeezed out and eventually the combined company could be consolidated into one set of premises. There was some overlap in the customer base, which would need to be handled carefully, but many new customers for the competitor's broader product range. These were real profit improvement possibilities for the competitor, but also an important defensive element. Between them the two companies dominated the local market. The competitor feared a strong new opponent buying into the region.

Reluctantly the client gave permission to involve the competitor and within a fortnight we were in face to face negotiations. The two sides quickly built up a good relationship. They had a lot of contacts and experiences in common. To my client's surprise the competitor already knew most of his customers but feared they would not be able to secure them without his help handing over the relationships he had built up over many years; so keen in fact that they offered a generous consulting contract on top of the offer price.

There are broader lessons to be drawn out of this specific situation? First of all direct competitors will probably have the most potential synergies with your company, and be in the position to pay the best price. If you leave them out of the process you risk leaving money on the table. Secondly, the seller's fear that competitors will use any information they disclose to attack customers is often exaggerated. In reality a competitor will already have a good idea about your customer base and probably be talking to most of them already. Don't underestimate the other side's fear that they will lose some of the business they have bought after the sale. This can often work to your advantage.

Robert John Kemp is Managing Director of UK Business Broker Select Business Sales. Select specialise in retirement sales of private companies.

Visit our website to find out more: http://www.sellingprivatecompanies.co.uk

Negotiating A Deal To Sell A Company - Why You Need Professional Help

By Robert John Kemp

Recently one of our deal managers took a call from a business owner I knew from local networking meetings. He had received an unsolicited offer for his company and was involved in negotiations with the potential buyer. In the last couple of weeks things had started to go wrong. The owner had never sold a company before and was learning on his feet. A number of issues had come up that the seller saw as a reduction of the original offer. The buyer was adamant they were a normal part of any company sale process.

The owner was trying to handle the negotiation himself to save fees on advisors. Negotiating complex customer contracts was a regular part of his business and how could a company sale contract be any more difficult? From a certain perspective this might be true; but selling a company has its own jargon and peculiar issues. Some of the issues are unusually complex and it is easy to make an expensive mistake.

So what are some of the issues that are peculiar to a company sale process?

If you are trading through a limited company a buyer will make either an offer for the shares of the company or its trading assets. In the UK selling shares has a big tax advantage for the seller. For the buyer a share sale carries more risk. Buyers will expect to negotiate a contract that leaves the buyer with long term obligations to pay the costs of any pre-sale problems.

Most offers are made 'Free of cash and debt'. At its simplest level this means that part of the offer price will be used to pay off any debt in the company. Debt includes not only bank loans but also overdrafts, invoice discount advances and outstanding balances on finance leases and hire purchase agreements.

If an offer is made for shares the seller will be expected to maintain normal levels of working capital in the company (Trade debtors, trade creditors and stocks) prior to the sale. If working capital at the date of sale is less than expected the shortfall will be deducted from the selling price.

The seller will have to pay Corporation Tax up to the date of sale. Typically an estimate of the tax bill will be deducted from the selling price at closing and held in a reserve to pay the bill when due.

In a share sale part up to 20% of the selling price will be held in a reserve to settle any claims that arise under the contract. The reserve might be held for between one and two years.

For a business owner that has never sold a company before some of these issues might come as a shock. My advice would always be to involve an accountant, solicitor or business broker with extensive experience of this type of negotiation. Selling a company is one of the few occasions in business where there is no second chance. Think of any fees incurred as protection against an expensive mistake.

Robert John Kemp is Managing Director of UK Business Broker Select Business Sales. Select specialise in retirement sales of private companies.

Visit our website to find out more: http://www.sellingprivatecompanies.co.uk