by UFG | Jun 5, 2024 | News
For healthy companies that want to maximize their value, the qualitative indicators can be bundled into three main categories.
Determining a business’ value is not all about adding up revenue and subtracting expenses. While an important piece, these hard numbers are only half the equation for computing what a company is worth. To come up with the true value, we also look at factors like the level of owner involvement, company goals and growth opportunities. When we use the complete equation, we get a comprehensive picture of a business and can better understand the story of its past, present and future.
Calculations may vary depending on the company, but in a healthy one, there is about a 50/50 split between the quantitative (financial) and qualitative (non-financial) sides of performance. If the business isn’t profitable, it’s more important to focus on the quantitative side and fix the numbers first. Many owners don’t want to hear that, but if they’re not hitting their numbers, it may mean the business is not working. They must fix the quantitative issues before moving to the qualitative side.
For healthy companies that want to maximize their value, the qualitative indicators can be bundled into three main categories.
Evaluating quality
1. The owner’s goals
We’ve found significant research showing that if an owner has defined goals and plans for the future that are in line with market expectations for their company’s value, they’re going to have a much stronger exit. What is the owner’s defined goal for exiting the business — to get the most money, to take care of their employees and to ensure a legacy? You must then get to the “why” behind the goals and devise a plan of action. It almost doesn’t matter what the answers to the questions are; having achievable goals and a strategy for reaching them can increase the company’s value because it keeps the owner focused on improving the other areas of the business.
2. The owner’s role
The extent of the owner’s involvement is a critical indicator, but perhaps not for the reason you think. The more involved the owner is in day-to-day operations, the more central they are to the business, the less the business will be worth down the road. If the owner is the linchpin that holds everything together, what will happen to the company when they leave? Evaluating operations is more about the system and the structure of the team. Look at the organizational chart and who’s on it – are they good employees or bad employees? Examine the company’s processes and procedures and how new team members are trained and onboarded. The owner sets the vision, but it’s the team that increases company value by carrying out the vision.
3. Growth opportunities
Nobody wants to buy a business and keep it exactly as it is. They want to see potential for growth in the future, especially the potential for return on their investment as a buyer. Whether it’s a simple price increase or new locations, whoever buys the business is going to ask about growth opportunities. Indicators like product or service diversification in both the company and the industry it’s in give a good sense of whether the company is moving forward or standing still (and at risk of going backward). The more potential you can show, the more upside there will be for the next owner — adding up to greater value.
Cycle of success
When the qualitative side of the equation is working, it all ties together. The owner knows the goals, which are aligned with where the company is going, and is leading the organization but working themselves out of the day-to-day operations; the business grows and creates more growth opportunities for the next owner. Paired with profitable numbers, it’s a cycle that builds a high-quality business.
For the best owners, it takes a minimum of three to five years to get that cycle working for you and have reliable indicators of your value. Making it part of a 10-year strategy is even better.
At Exit Factor, we have 62 different qualitative indicators that we use for determining company worth. We don’t use them all, or even close to that, for every business; it’s usually a matter of tweaking three to five of the 62 indicators. Figure out which of those 62 are essential for your company, and you’ll have a truly forward-looking strategy for profitable growth.
by UFG | Jun 5, 2024 | News
Venture X®, Office Evolution®, and Intelligent Office® have launched a series of limited-time promotions this summer, offering specials on all-inclusive, hospitality-infused space and services across locations in the United States and Canada. In June, July, and August, the three brands are offering a different promotion each month at participating locations. The promotions include:
- June: Meeting Rooms – Buy One Hour, Get One Hour Free
Conference rooms and training spaces are fully equipped and can accommodate up to 20+ people, depending on location and size. They can be utilized for team gatherings, client meetings, presentations, and more – both in-person and virtually. This offer provides full access to meeting room spaces at participating Venture X, Office Evolution, and Intelligent Office locations from June 1 to June 30, 2024, and is available to new members only; limit one hour per customer. This promotion cannot be redeemed for any alternative membership package.
- July: Day Office – Buy One Hour, Get One Hour Free
Dedicated and private offices are ideal for professionals looking to work in a collaborative community but with access to an enclosed space to call their own. Participating Venture X, Office Evolution, and Intelligent Office locations feature an array of office sizes to accommodate different needs, and all come with high-speed internet as well as access to other amenities like an on-site receptionist, community kitchen, and more. This offer is available from July 1 to July 31, 2024 for new members only; limit one hour per customer. The promotion cannot be redeemed for any alternative membership package.
- August: Coworking Membership – Purchase Three Months, Receive a Complimentary Month (Venture X and Office Evolution Only)
Community memberships at Venture X and Office Evolution offer a way to work smarter and make new, meaningful connections in a professional setting. Having a designated space away from home is beneficial for many remote workers and entrepreneurs, and collaborative workspaces offer a communal working area that is proven to increase motivation and foster professional networking. New members who purchase a three-month coworking plan will receive a fourth month for free. This offer is available August 1-August 31, 2024 at participating Venture X and Office Evolution locations only.
- August: Phone Answering – First Month Free with 12-Month Entry-Level Plan (Intelligent Office Only)
Every Intelligent Office employs a local team of phone professionals trained to boost members’ businesses. Highly skilled experts work with members to create scripts and prompts so they represent their businesses with the same knowledge and consideration they’d expect from their own staff. New members that sign up for a 12-month entry-level plan will receive their first month free at participating Intelligent Office locations nationwide.
“We’re thrilled to be offering these promotions across our Vast network of brands this summer. Our goal is to make flexible options more accessible to businesses and entrepreneurs everywhere,” said Jason Anderson, President of Vast Coworking Group. “As more professionals and companies adopt hybrid work, we’re at the forefront of offering premium shared workspaces with flexible terms.”
by UFG | Jun 5, 2024 | News
Ray Titus is CEO of United Franchise Group (UFG), a global leader for entrepreneurs with brands in over 1,600 locations in 60 countries.
How much time are you wasting at business networking events with that tired, overused opening line: “What do you do?” I can’t imagine a more boring way to introduce yourself to a new contact; it invites a vague answer that doesn’t give you an opening to offer your services. This is the business equivalent of that groaner of a pick-up line, “Come here often?”
With a little more thought, you can engage in a real conversation with anyone you meet that could yield new business instead of just another name in your contacts app.
Stonger Networking
Every business owner and leader should be involved in networking. It can help you with everything from finding good vendors and future employees to selling your goods and services. But here’s a radical idea: Bringing in new business should not be your goal when you walk into the event; instead, you should focus on meeting new people that you can help reach their goals.
Attending the event with the intention of genuinely offering your time and resources will be far more beneficial than simply going to get things for yourself. If you display the attitude of helping others first without asking for something, you will more likely have people who feel the need to reciprocate and help you.
I understand meeting new people can be intimidating for reserved people, and it’s even more challenging to ask someone how you can help them when you’ve just met. That’s why uncertain people fall back on “What do you do?” It’s the easiest question to ask. If you hate talking about yourself, it gets the other person talking, so you don’t have to. But leaders can’t be afraid to do what it takes to build their business. Gaining more contacts is a must; networking is one of the best ways to do that.
Besides, with an answer like “I sell widgets,” the ball will be back in your court before you know it.
Instead, I recommend that you introduce yourself with open-ended questions that show your sincere interest in the other person and their business. This will give you the opportunity to showcase your company without seeming to brag.
Questions, Answers And More Questions
After you’ve swapped business cards, try these questions and possible follow-ups. Be careful not to pepper the other person with rapid-fire queries. Listen to each answer and respond to it. This is a conversation, not an interrogation.
• How did you get started? Listen for things you might have in common like similar schools attended, mutual friends or other connections you might share. Respond if you hear anything you want to touch on, but be brief so you don’t hijack the conversation.
• Why do you like this business/industry? Follow-up: Has it changed much since you started?
• What are you excited about lately? Follow-up: How’d you come up with that? Why does it excite you?
• What’s the best thing that’s happened to you this year? What has been your biggest success lately? Follow-up: How did you make it happen? What do you think made it work?
• What are you finding to be the most difficult in your business? Follow-up: Have you tried [your solution]? I’ve found that if you do [your solution], it makes it easier. It can feel great to help people get over a problem or situation.
• What’s on your radar for the next big thing? Follow-up: How did you hear about that? What are you doing to prepare?
• What kind of customers are you looking for? Follow-up: How can I help you connect with them?
• What are your big goals for the year? Follow-up: How can I help you reach them?
Making The Dream Work
Over the years, networking has helped me immensely. I’m always making new connections that I can utilize in some way. For instance, at an event where my company was receiving an award, I happened to sit next to a person who would become a very important financial contact.
That’s what you want to bring back from your networking events: Not a fresh pile of business cards but relationships that will benefit the people you meet and, later, you.
by UFG | Jun 5, 2024 | News
The food and beverage business is a challenging segment that requires incredible motivation and unwavering wisdom to make the best decisions. This year’s list of 28 Young Leaders to Watch fits that mold, and they aren’t letting any barrier stand in their way.
In the face of unpredictable economic times and ever-changing consumer tastes, these rising stars have shown remarkable resilience and strategic prowess. They are the embodiment of a new era of leadership, driving growth, sustainability, and inclusivity in their organizations and communities alike. As these young leaders navigate the twists and turns of the quick-service landscape, their passion and creativity shine through, illuminating the path forward for the entire industry.
The pandemic brought unprecedented challenges for the restaurant industry, but it also presented opportunities for young leaders to shine. In response to the crisis, many of these up-and-coming executives demonstrated remarkable resilience, creativity, and adaptability.
They quickly pivoted to new business models, embraced technology to enable contactless ordering and delivery, and implemented safety protocols to protect employees and customers. Moreover, they leveraged their digital savviness to build online communities and engage with customers in new and meaningful ways. By doing so, these 25 young leaders not only helped their restaurants survive but also positioned themselves as visionaries.
by UFG | May 28, 2024 | News
Audio
Jessica Fialkovich is a Business Exit Expert, Author, Speaker, and Small Business Advocate. When she sold her first business a decade ago, she had no idea where to start. Fortunately, she was able to exit successfully and then buy her next business — a business brokerage office.
For ten years she has built her Transworld Business Advisors franchise to be the fastest growing and most successful business brokerage firm in the U.S. But she realized that most business owners that decide to sell are not prepared, and although hundreds of experts will teach you how to start a business, how to grow one — very few will teach you how to sell.
In founding her education firm, Exit Factor, she decided to pull back the curtain about how the business sales process works and give buyers and sellers the tools to successfully (and profitability) complete a transaction. She is an entrepreneur at heart and successfully built and sold two startups, along with my husband and business partner, Al.
When not at work you her find in the mountains exploring with Al and our dogs (Sailor and Moose), spending time with her new son, Brix, or attending as many Springsteen shows as she possibly can.
by UFG | May 28, 2024 | News
The new HR position is responsible for helping tap into employees’ hopes and dreams — inside and outside of work.
Editor’s Note: ‘Happy Hour’ is an HR Dive column from Reporter Ginger Christ. Follow along as she dives into some of the offbeat news in the HR space.
“Welcome to Hollywood! What’s your dream? Everybody comes here; this is Hollywood, land of dreams.”
The iconic Pretty Woman line yelled at random passersby by a character identified only as Happy Man on IMDB highlights that hopeful energy that drives people from across the country to go after their dreams in Los Angeles.
Ray Titus, CEO of United Franchise Group, an organization of franchise brands, wants to tap into that same hopefulness in his company’s 240 employees. To that end, Titus recently created a new role at UFG: a dream coach.
While the title immediately makes me think of dream journals tucked away on nightstands, Titus’s vision for the role is a hybrid of a life coach and a career coach. Enter Mary Jo Kurtz, a certified life coach and holistic health counselor and the company’s first dream coach.
“We weren’t just looking for somebody for business coaching,” Titus said. “We wanted somebody for everything … who could talk to them from a financial side to a personal side, from saving money to relationships, to accomplishing their goals here at UFG.”
“It’s really about all parts of your life. ‘What are your dreams? What are your goals?’” Kurtz said.
In the past eight months, Kurtz has met one-on-one with more than 100 employees, and her calendar is booked out for the next three months. In individual one-hour introductory sessions, Kurtz works with employees to identify their goals and come up with action plans on how to achieve them.
“The bottom line is happier employees and a better business,” Titus said. Employees with healthy lives who are reaching their personal and professional goals will be more motivated and satisfied at work, he said.
Housed under the human resources department, Kurtz also is identified as the director of employee development.
While everyone is required to attend one session with Kurtz, the coaching isn’t mandatory. And while Titus said he expects there to be some holdouts, he hopes the momentum from the rest of the employee base engaging in the process will encourage others to join in.
“We have 240 employees, and at the end of the day, if we can make a difference with 200 of them, I’d be thrilled,” Titus said. The program, he said, will be successful when he can stand up in front of the company and share (anonymous) results: how many people were able to buy a home or send their kids to college, for example.
Part of that process involves directing employees to existing offerings like a 401K match, while another is using the information learned from these sessions to develop new programs to meet workers’ needs, Kurtz said.
A popular meme that regularly makes the rounds criticizes employers for asking workers what their dream jobs are, positing that employees work not for career satisfaction but to take trips, buy their cats cactus-shaped scratching posts and afford avocado toast.
In that vein, this idea of dream coaching — recognizing the intersection of the personal and the professional — is a realistic approach. We may not want to live to work, but we can be happy working to live if our lives are fulfilling and our needs are being met.
I’ll end with more advice from our friend, Happy Man: “Some dreams come true, some don’t; but keep on dreamin’ — this is Hollywood. Always time to dream, so keep on dreamin’.”
