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Business Consulting

Build your new career selling our products and services.  Or, let us help you develop your products and services based on your experience and expertise!

Financial Wellness Report

Financial Wellness Report 

The statisticians allow up to 80% of all businesses fail in the first ten years. These same people make money as the number one cause of business failure. Personally, I think that assessment is a little superficial. Yes, the owner closed the doors when the money ran out.

But, was that the real reason or was it a management issue?

Benjamin Franklin said time is money. If you think about it, sales did not come in fast enough.

More sales in a shorter period give more cash flow enabling you to pay the bills on time and continue to operate your business.

Have you considered getting consulting help to keep your company from joining the ranks of failure like eight out of 10 business startups?

Have you had a financial checkup in the last 12 months?

Or, are you the kind of person who says “I feel fine.” “I do not have time for a trip to the doctor’s office so that they can poke around.”

The medical profession gives five reasons why you should have a physical every year.

  1. Weight and blood pressure checks can help avoid heart disease which causes one out of four deaths in the US.
  2. Monitoring your height can detect shrinkage that can lead to osteoporosis causing disability and or death.
  3. Cancer screening – early detection increases the cure rate significantly.
  4. Staying current with vaccines
  5. A closer relationship with your physician allows them to provide better health advice.

The financial strength of your company is no less important than your physical health.

At American Hope Success we provide a 3 to 5-year financial analysis that will reveal:

  1. The credit worthiness of your business. One segment of the report has an 80% plus accuracy rate in predicting a failure in the next 12 months.
  2. Our Financial Wellness Report will help you show your company in its best light.
  3. We will identify the strengths and weaknesses of your business.
  4. The Financial Wellness Report will establish a framework for either a turnaround or a new growth strategy.
  5. It will give early detection warning signs of any negative trends.
  6. We will compare your business and financial ratios to industry benchmarks allowing you to compare your results with other firms your size in the same SIC code.

Growth Strategies

Grow a Business

Whether you have started your own business by pulling yourself up by the bootstraps, or buying another’s going concern if you are looking to grow your business that means you’re doing something right!!

The Small Business Administration has given their ideas for Growing Your Business.

  • Open another location. 
  • Offer your business as a franchise or business opportunity. 
  • License your product. 
  • Form an alliance. 
  • Diversify. 
  • Target other markets. 
  • Win a government contract. 
  • Merge with or acquire another business. 
  • Expand globally. 
  • Expand to the internet. 
  • Four specific methods of growing your business: Organic Growth, License Growth, Franchise Growth and Acquisition Growth.

Organic Growth

Organic growth is growing your business naturally or organically, as opposed to growing it by acquiring another business or franchising it.

Market penetration.  You can expand sales of an existing product into your current market. This is the most reliable option because you already know both the product and market.

Product development. Introduce a new product into your current market.

Market development.  Some of the ways of doing this are finding a new use for the product, adding new features and benefits to the product that will make it attractive to the new market.

Diversification. Diversification a risky option. Here, you introduce a new, unproven product into a new market that you may be unfamiliar with.

When you are tracking your organic sales growth, it is helpful to find out whether your growth is coming from a growing market (a bigger pie), or an increasing market share (a bigger piece of the pie). If the pie is getting bigger (your industry is growing), your growth can be considered more sustainable.

License Growth

Licensing is a business agreement in which one company gives another company permission to manufacture its product for a specified amount of money.

One of the fastest and most profitable ways to grow your business is to license copyrights, designs, patents, trademarks and other intellectual property to others.

The advantages of Licensing are:

  • You may have something unique that your competition doesn’t.
  • You may be able to sell your product for more.
  • You may be able to get your product into more retail locations because of its uniqueness, and that may help get your other products into these locations as well.

Franchise Growth

Franchising is when you allow the use of your business name and business system for the payment of an upfront fee as well as ongoing fees.

Why should you use franchising to grow your business?

If you have a high-quality proven product or service, and a unique method of selling or providing that service, you might consider growing by franchising.

  • Franchising allows someone to use your name and trademark
  • They pay you a fee, usually an upfront fee plus a continuing royalty payment such as a percentage of sales or a fee per product sold
  • Can be a cost effective solution to expansion
  • Allows for consistency in operational control
  • Provides an exit strategy for your business, if you want to stop running your own business and oversee franchising by others
  • Allows for common branding and marketing to have better brand awareness
  • Franchising has been used to expand businesses in many kinds of industries such as food, hotel/motel and lodging, retail, medical, services.

Acquisition Growth

I like the concept of growing by acquisition for several reasons.

  • The location is already secured
  • The staff is in place
  • You can gain profit margin by economies of scale (such as combined advertising dollars, volume buying, management consolidation and more)
  • Sometimes you can fund your purchase with stock
  • Often you can retain acquired owners in management positions

Tell Your Story

American Hope Success Publishing will help you develop and publish your book, from concept to completion.

We will provide:

Expert guidance in writing your book
Grammar & Editing
Cover Design
Publishing
PLUS – 25 copies of your very own book!

“Build a better mousetrap, and the world will beat a path to our door,” is pure nonsense.

If the world has never heard of you or your mousetrap that will be the end of the story. You will sit on your porch enjoying the view of your beautiful mousetrap.

If you want to sit on the beach and watch the sunset and listen to the waves crashing into the coastline, you will have to advertise the benefits of your mousetrap!
Tell Your Story is a book about free advertising. You will discover how you can establish yourself as the industry expert by writing your book. As a published author you will receive speaking invitations where you can build rapport with prospective new customers.

You can also book interview slots on radio and TV with your new position as a published author. Calculate the value of a fifteen (average) length of a radio interview against the station’s ad rate for a 30-second spot in the same time range. Typically you will discover the time alone is worth thousands of dollars.

The actual value of the interview is significantly higher as you can connect with the listener far better than the possibility of a 30-second commercial spot that is vying for attention along with dozens of other ads.

Add Tell Your Story to your shopping cart and get started promoting yourself for free in a world of expensive advertising. Don’t be worried about writing the book, American Hope Success can help you write your book or contract a ghost writer for you. When you finish the book, we can publish it for you.

Video Marketing

Learn why video marketing has become critical for the success of your business.  Really, the statistics say it all.  For example did you know that, on average, a visitor to your website will stay 2 minutes longer once they’ve watched a video?  And 65% of those visitors will make a purchase decision after viewing the video.  Today’s customers are researching for opportunities to see and hear about the products or services they’re interested in to help them decide whether or not to make that purchase.  So, whether you’re an author, lawyer or sell vitamins, think about your prospect…Do they trust that your product or service will help solve their problem?  If they have any doubt at all, a video is a sure way to help build trust and put their minds at ease.

With over one hundred million people watching online videos each day, video is expected to become 90% of all internet traffic for 2017.  Why?  Because video is short, to the point, entertaining and easy to understand.  In fact, a one minute video can convey the equivalent of 1.8 million words!  That’s a lot of words!  Videos allow you tap into the billions of viewers watching videos, drive traffic to your website and increase sales.

At American Hope Success we take a unique approach to creating attention getting business generating videos.

In cooperation with American Hope Radio Network, we create Edumercials.  No one wants to be sold, but everyone wants to purchase.  Slick video costing thousands of dollars simply cannot tell your story like you can.  Book an interview on American Hope Radio.  I will ask the questions your prospects would ask if they were sitting in the coffee shop talking with you in person.

The interview is video taped, edited and provided to you for use on your website, social media sites and YouTube, Vimeo and wherever you would like to post it. 

Your prospects will see your sincerity, get to know and trust you watching your radio interview replayed hundreds or thousands of times over.

If you are serious about building your business and increasing your sales call me today at 855-574-HOPE that is 855-574-4673

How to Grow Your Business

with our Success2 Marketing Campaign

 

Your business is a tool capable of creating Xtreme Wealth for you and your family. The three most common forms of growth are:

  1. Organic growth by opening additional locations.  The best example of organic growth is WalMart. Starting with one five and dime store in 1950 WalMart has grown to become the largest retailer in the world with more than 6,000 stores worldwide.  The Waltons are the richest family in America thanks to their ironclad control over the world’s largest retailer, WalMart with a combined wealth of more than 130 billion dollars.
  2. Franchising – the best example is McDonald’s hamburgers.  Richard and Maurice McDonald founded the company in San Bernadino California.  Ray Kroc, a milkshake mixer machine salesman, joined them and opened the first franchise store in Des Plaines, Illinois. After buying our the McDonald brothers for $2.7 million, Ray built the most successful fast food restaurant in the world by franchising single locations.  When he died in 1983, there were more than 7,500 stores worldwide doing more than $8 billion.  Growth has continued with more than 34,000 McDonald’s restaurants in the world currently.

3.Wikipedia Definition of a Rollup – A Rollup (also “Roll-up” or “Roll up”) is a process used by investors (commonly private equity firms) where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. It also has the effect of increasing the valuation multiples the business can command as it acquires greater scale. Rollups may also have the effect of rationalizing competition in crowded and fragmented markets, where there are often many small participants but room for only a few to succeed.

An investor faced with an opportunity to invest in two competing companies may reduce risk by simply investing in both and merging them. Rollups are often part of the shakeout and consolidation process during an economic downturn or as new market sectors begin to mature.

Rollups of complementary or unrelated companies are also done to:

  • Build a full-capability company, when it would be too costly or time-consuming to develop the missing pieces through internal expansion.
  • Blending companies have different financial metrics, often to make the combined company attractive for investment, mergers, and acquisitions, or an initial public offering.

Kraft Foods (now renamed Mondelēz International) was an early example of a rollup, in the dairy industry. Waste Management was the most notable rollup during the 1970s and 1980s. Waste Management’s acquisition of 133 small-time haulers quickly became the largest waste disposal company in the US. The characteristics that can make a rollup attractive are: there are many small players in fragmented markets or: where technology can play a role in revitalizing industries with small margins, but technology can impact growth and profits. AutoNation was also a successful rollup effort in the car dealership space spearheaded by Wayne Huizenga, founder of Waste Management. The other reason companies do rollups is due to the higher earnings multiple achievable in businesses with large-scale relative to smaller mom and pop operations which remain vulnerable to changing markets and poor access to capital markets. A recent rollup is Valeant Pharmaceuticals International that used more than $30 billion to acquire over 100 companies.

The above examples can be a major source of encouragement and prompt inspiration and hope.  On the other hand, it can be discouraging. People like Ray Kroc, Sam Walton, Wayne Huizenga, Michael Dell, Bill Gates and Mark Zuckerberg seem larger than life.

Please be assured; they are excellent examples of what any of us can do with determination and a little help.  Wayne started with a single used garbage truck; Sam started with one five and dime store, Bill dropped out of college to give us the “windows” operating system.

The American Hope Success “Success Squared” marketing strategy is built on the premise you can double your current business.

How did you get from point “A” to point “B”?  Doing it again is one way to get from point “B” to point “C.”  It is a huge mistake to think any of the success stories went from point “A” to point “Z” overnight with little or no effort.

Read their stories; you will find them filled with up and down periods of success and discouragement and hurdles they had to overcome.

We will help you build your business with a combination of our “Tell Your Story” and “Edumercial” marketing programs.

“Tell Your Story” is a way to establish yourself as an expert in your field and receive thousands of dollars in free publicity. 

Publicity is more valuable than advertising because it is not perceived to be a sales pitch.  One of the benefits of becoming an author is the chance to be interviewed on Radio and TV stations.  A 30 or 60-second spot on the radio may cost in the vicinity of 1,000 dollars.  The same radio station may interview you for fifteen or twenty minutes at no charge to you whatsoever.

The listener perceives the advertising spot as just that – a piece of advertising.  The interview is longer and gives you time to lay out your entire story.  It carries an implied endorsement because after all the station has invited you to speak, you must be important.

We will help you write your book and publish it for you.  Our system will enable you to put your thoughts down and actually write your book over a weekend.  We don’t expect it to be a classic, but we do expect it to build your business.  WL Laney, our founder, wrote an 82-page book that generated more than a million dollars in sales without selling a single copy.  Be sure to ask us how that worked.

The second half of the Success Squared marketing campaign is a twenty-two-minute interview on American Hope Radio.  Your interview will be videotaped and publicised on YouTube providing you with a marketing video for your business, brand or individual product. 

 

Book and Video Marketing Package

Nothing happens without sales. You can build a better mouse trap, but if no one knows about it, they will not be beating a path to your door.

American Hope Success’s “Success squared” marketing program is a combination of “Tell Your Story” and “Edumercial” video marketing of your business.

Individually priced pay $4,990.00. Purchase as a combined package for only $3,995.00 and watch your business grow!

Exit Strategy

Seven Secrets to Sell for a Premium!

1. Question the need for a business broker.

Business brokers are the number one reason most owners sell far below the market value of their business. I am not trying to write a “bash the broker” report. Throughout life, you will find good examples and bad examples. We can learn from both – do what the good examples dead and don’t do what the bad examples did. The results from models are evident; it is up to you if you learn from others successes and failures.

The issues that steal your profits are those of omission, not dishonesty (most of the time) or even motive. Let me explain what the average broker misses that is costing you thousands of dollars in value from your sale proceeds. 

a. There is a failure to provide competent M and a (merger and acquisition) advice. Your transaction is treated more like a residential house sale instead of a complex business offering.

b. The average broker neglects to advise you on the list of things you need to do when selling your business, dealing with them will add thousands of dollars to the cost of selling your business.,/p>

i. “Spitshine” your business in preparation for the sale. Clean up the premises, review employment agreements, customer contracts and other documents impacting your business operationBe sure your financial statements are accurate and up-to-date.

ii. Work with your accountant to “recast” your financial statement. Identify all the owner’s perks listed as expenses in the P&L. Reassess the balance sheet to today’s market value.

iii. Work with your attorney on a strategy to protect your interest in the business in the event you decide to finance a portion of the sales price. Refusing to offer to finance a qualified buyer is one of the reasons most sellers sell for some value far below the potential for your company. “Goodwill” is the dollar amount assigned to the difference between the tangible asset value and your asking price. What is it about your business that makes it valuable? Build unimpressive presentation to describe the “real” value of your business. Make goodwill the strength of your presentation.

iv. Include an evaluation of the industry for the buyer. Is the industry growing? What are the prospects of your industry? What if the sector is declining? As companies drop out in a declining industry, there is more business for those who remain.

v. Determine what kind of buyer is best for your business. The two primary types are Financial Buyers who focus on the numbers. They are looking for a return on investment. The other is Strategic Buyers. They are looking for ways to build the business they currently own. An example was the acquisition of Kinko’s printing company by FedEx. Kinko’s was already a pickup point for FedEx. Shipping services were a logical extension of the services Kinko’s supplied their customers. (Be sure to be creative when writing potential synergistic matches for your business into your offering memorandum.)

vi. Do not let the news of your desire to sell reach your employees, competitors or customers. News of a sale can have a damaging effect on your business if released prematurely.

c. Never allow yourself to be pressured by a commission-hungry broker, or anyone else for that matter, into accepting a “lowball” offer for the business you worked so hard to build!

2. Set your sales team in place.

a. Your team should consist of –

i. Attorney

ii. Accountant

iii. Spouse or partner

iv. A business broker or M&A advisor (We can act as your M&A advisor on an hourly rate. There is no need to pay the high commission rates of the business broker.)

– You need their expertise and assistance dealing with the buyer’s advisors.

b. Consult with your legal advisers

Your accountant, attorney, and others who will have a say in the sale. Calling lawyers and accountants “deal breakers” is all too common in the business sales industry.
You can avoid the frustration of a transaction going up in smoke at the closing table by consulting with your advisors when you decide to sell. Keep them informed as the search for your best buyer proceeds.
Do not wait until closing to spring creative terms on your advisors. Your team must be prepared to deal with the buyer’s team for issues related to price and terms. The last thing you want is the accountant for the purchaser to say your price is too high. Your accountant must be prepared to justify the price and terms in language the attorney and accountant on the other side of the closing table can understand. Always remember a buyer is not likely to ignore the advice of his lawyer or accountant.

3. Develop an offering memorandum

Your offering memorandum should include the following information for the purchaser.

a. Industry research and analysis highlighting the benefits of having a business in said industry. Show your industry with its strengths and weaknesses. Build a case for the value of both.

b. Highlight your local economy. Demonstrate the power of the market. Discuss the availability of the labor pool for expansion. Talk about the business environment and the power of your local business community. Give the “Chamber of Commerce” sales pitch for living and doing business in your town.

c. Write a full description of your business. Show it for what it is and what you believe it can be. If you cannot do a sales pitch for your business, hire someone to do it for you. The description of your business is your opportunity to make the prospect’s mouth water in “pure desire” for your business. More desire on the part of the buyer equals more money for you at the closing. Sell it strong up front. A buyer that sees the full value of your business will pay more and give you the terms you want because they “want” your business.

4. Deal with 100% honesty.

Would you seriously consider purchasing a business from someone with two sets of books? If a seller is willing to risk financial penalties or even jail time for lying to the IRS, whatever would convince you to believe his second set of books. In fact, would you trust anything he says about his business?

5. Be firm but reasonable.

Stick to your guns. There are lots of buyer prospects. With a convincing offering memorandum an adequate confidential marketing, you can find a buyer willing to pay what your business is worth.

a. A willingness to accept terms will significantly increase your proceeds. As I suggested earlier, work with your attorney to design the protection you need for a seller carryback. Offering attractive terms will increase your proceeds significantly. Look at the marketplace and see what you can expect to get for your cash after the sale. If the best interest rate is 6% and the buyer is willing to pay 8% why not invest your money with your buyer who has the strength of your business to make his payback? If your attorney needs help in this area, have them call me for ideas that will allow you to get a premium for your business safely.

6. Make sure this is the right time to sell.

If your business is still in the startup phase, it may not be the best time for a sale. Instituting an aggressive marketing campaign may make your company worth two or three times more in the matter of just one productive year.

7. Don”t neglect your business while you are marketing it for sale.

I like to suggest launching an aggressive marketing campaign while you are in the process of selling. Nothing excites a buyer more than seeing growth in the last quarter that exceeds your previous growth rate for growth ideas, call American hope success 855-574 HOPE (4673) and ask about our “Double your Success” marketing program.
Thank you for taking the time to read this report, I hope it has been helpful giving you a better understanding of the process for selling your business at a premium. If you have any questions, please call American Hope Success at 1-855-574-4673.

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