Advising, Consulting and Mentoring Greater Houston area business since 1986
August 2015
 
   


 
From The Editor...     

 

If you have ever watched the popular television show "Shark Tank", the business owners in the Tank pitching their Company almost always start out by making a statement about how much money they are looking for and then follow that up by offering a percentage equity position in their company. Some presenters are realistic with their offers, while others throw out a percentage that makes the Sharks roll their eyes or almost fall out of their chairs.

Putting a high value on their Company is a typical position business owners take. They have put in many long hours, spent sleepless nights worrying about making that next payroll and faced the challenges of being an entrepreneur every day. However, investors look at the offer from an entirely different perspective. Investors are analyzing how much return they can get on their investment, for very little risk. That is why investors are looking for at least a somewhat proven track record of revenues and profits.

Most investors are in a high tax bracket, so they factor in what their true net return after tax may be. As an example: For every $1,000 return on their investment, their true net return may only be $650 after taxes. Thus, investors wanting a 50.0%, 100.0% or even higher return on their investment is not out of line. Further, investors typically are not in any investment for the long haul. They want out in three to five years, maybe seven years tops.

Here are some tips that may help you when presenting your Company to an investor:

Do your homework first. Know your numbers backwards and forwards. Be realistic in the valuation of your Company. Be positive, but don't oversell. Offer an exit timeframe. Consider what else the investor can and is willing to bring to the table other than just money. Finally a word of caution, if you have to give up more than 50% ownership in your Company, it is no longer your Company. You then become an employee with some ownership in the Company.

You also may need assistance from an outside experienced business advisor, consultant, or mentor; so before you seek out an investor for your Company, contact a Silver Fox Advisor. Remember, having experience on your side always helps.

We encourage you to visit our Website at www.silverfox.org or www.silverfoxadvisors.com to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors, our Associates and their businesses, as well as our great programs and community outreach endeavors. 

 

Richard T. Hendee, Editor

The Silver Fox Advisor

Learning And Leading

By Lane Sloan, a Silver Fox Advisor

You will never become a leader without getting  into the fray of trying to lead. Likewise, you will become a much better leader by continuing to learn how to do so.

Leadership has many similarities to sports activities. I learned how to swim on my own in a small lake because I wanted to water ski. While I can swim, I can't compete with individuals who practiced swimming daily taking lessons from a coach. And then they go to competitions watching and talking with fellow swimmers on how to improve their style before, during, and after the race. Their learning is just far greater than mine.

Like swimming lessons, there is a lot of academic and experiential information on how to improve your leadership. That is why in my book, Develop a Leadership Plan: Become a Great Leader, has a chapter on Leadership Insights. Here is a brief summary from the book on what I think are leadership essentials.


Read more...

Communications Reflect Your Strategy.

Beacon To Your Business Success

By Hank Moore, Corporate Strategistâ„¢

The biggest problem with our business in our society, in a capsule sentence:

People with one set of experiences, values, wants and perceptions make mis-targeted attempts to communicate with others in trying to get what they want and need.

Success is just in front of our faces. Yet, we often fail to see it coming. Too many companies live with their heads in the sand. Many go down into defeat because it was never on their radar to change.

One of the biggest cop-outs that businesses in denial use is the term Messaging. They say, "We're in the right business. We only need to improve our messaging." That's a rationalization to avoid confronting key strategic issues.

 

Read More... 

 

 

Silver Fox Advisors 

 

Silver Fox Advisors are current and former business owners, entrepreneurs and executives dedicated to assisting business owners to improve their enterprises through mentoring and consulting. Advisors have been sharing their knowledge, experience and skills since 1986.

To work with a Silver Fox Advisor, please visit our website at  www.silverfox.org and select your advisor.

Books by
Silver Fox Advisors
  

Several Silver Fox Advisors have written books sharing their business experiences and expertise. These books contain information that you may find helpful to you and your business. We encourage you to visit our web site and click on the Resources link to find a listing of all books that are available.

 

This Month's Featured Book 

 

 

 
 

Lunch & Learn

Thursday, August 27, 2015
 

Topic: "The Future(s) of Human Spaceflight in the 21st Century"

 

Presented By: Dr. Bonnie J. Dunbar, Pres & CEO of the Seattle Museum of Flight


 
 

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Silver Fox Advisors  713.467.5900  executivedirector@silverfox.org