You may know that Stop & Shop recently bought all the King Kullen stores. One has already been closed and two others will close soon. This means that residents of Mount Sinai, Lake Ronkonkoma and North Babylon have to find alternatives for their grocery shopping needs.
For me, the obvious solution is to start member owned and controlled food co-ops to replace them. The purpose is to provide groceries to members the way they want, not to make a profit for investors.
Added by Finn Mauritzen on August 19, 2019 at 12:39pm — No Comments
Many business owners regret selling their business within the first year. Why? Because they failed to plan for their exit. Almost no business owners have a formal eit plan so they end up with limited options. Most think they will sell to a third-party and many actually are able to, but regret it when they realize how the new owner changes it.
A proper exit plan begins with setting goals for the business owner, spouse, children and other stake holders. These goals are the foundation…Continue
Added by Finn Mauritzen on August 5, 2019 at 12:00pm — No Comments
This article describes in-depth the difference between Employee Stock Ownership Plans and worker cooperatives as well as the difference between worker cooperatives and unions. In addition, it details how worker cooperatives function and how they are different from traditional companies. The example is about breweries, but the concept applies to any industry.…Continue
Added by Finn Mauritzen on May 13, 2019 at 10:30am — No Comments
The Tax Cuts and Jobs Act of 2017 provides a new way to shelter capital gains when you convert your traditional business to a worker cooperative. Actually, it works for any realized capital gain.
Added by Finn Mauritzen on May 3, 2019 at 2:47pm — No Comments
Forbes has provided a great primer on Community Development Financial Institutions (CDFIs). They are not just for startups. They also work when you want to convert your traditional business to a worker cooperative.
Added by Finn Mauritzen on May 3, 2019 at 2:43pm — No Comments
The assumptions you make about the value of your business are far more likely to kill your sale than a lack of buyers. Buyers want to buy businesses but only if they have value. Does yours?
Added by Finn Mauritzen on March 26, 2019 at 2:53pm — No Comments
This article mentions a dry cleaning business that had to be closed and jobs were lost. The initiative would have provided up to $10,000 in incentives to convert it to an Employee Stock Ownership Plan (ESOP). For such a small business, even a $10,000 incentive may not have made an ESOP feasible. A better choice may have been converting it to a Worker Cooperative or an Employee Ownership Trust both of which are less heavily regulated and therefore easier and less costly to set up and…Continue
Added by Finn Mauritzen on March 22, 2019 at 12:48pm — No Comments
From a seller perspective, converting a business to a worker cooperative is similar to a management buyout. Instead of just one or a few of the employees, most of the employees will become owners. This presents a few advantages over the simple buyout. First, with more buyers, a greater portion of the purchase price may be provided by the buyers directly. Second, more financial stakeholders increases their overall commitment to its success. Third, more committed buyers means safety of…Continue
Added by Finn Mauritzen on March 18, 2019 at 10:05am — No Comments
A management buyout is the most common exit plan for small business owners. Most want to sell to a third-party, but only one in five actually succeed. Management buy-outs will almost always have to be financed somehow and traditional owner financing will be subordinate to all other financing. Why not consider financing the whole deal if you can? A Case for Seller…Continue
Added by Finn Mauritzen on March 11, 2019 at 9:58am — No Comments
Retiring business owners have some challenges in common with other retirees. In other ways retirement planning is very different. Retiring is not as simple as giving notice at work. Exiting a business takes careful planning and that takes time. Start with these Four Fundamental Questions.
Added by Finn Mauritzen on March 7, 2019 at 10:53am — No Comments
Even if you convert your business to a worker cooperative, you still need to do some fundamental things as when you sell the old fashioned way.
Added by Finn Mauritzen on March 4, 2019 at 11:30am — No Comments
Who are the most motivated buyers when you want to sell your small business? It's not who you think. I'm talking about your employees. They literally have everything to lose when you sell or close. Preserve your legacy. Get fair market value. The process is non-adversarial and collaborative.
Added by Finn Mauritzen on February 27, 2019 at 2:23pm — No Comments
It is not enough to want to sell your business. Someone is actually going to want to buy it. Is it salable? Is it profitable? Will it continue to be? That's what all buyers care about.
Added by Finn Mauritzen on February 21, 2019 at 4:36pm — No Comments
Yesterday, I was invited to talk to David Barnett, author of How to Sell my Own Business: A guide to selling your own business privately and not pay a broker's commission. We talked a little about what cooperatives are and how you convert an existing business to worker ownership.
Added by Finn Mauritzen on January 11, 2019 at 1:43pm — No Comments
It makes sense that employee owned companies would perform better, but there was no real proof - until now. The National Center for Employee Ownership (NCEO) created the Employee Ownership Index on the Motif.com trading platform. The Index beats the S&P500 decisively. Take a look: Employee Ownership Index
Added by Finn Mauritzen on December 31, 2018 at 10:27am — No Comments
This artists' cooperative has been around since 1988. It makes perfect sense for a group of artists to share the task of marketing their art cooperatively.
Even better, the concept can be implemented by many other solopreneurs. Independence is the number one motivation for becoming self-employed. By marketing your products or services cooperatively, you can share the cost and still maintain your independence.…Continue
Added by Finn Mauritzen on November 27, 2018 at 12:07pm — No Comments
This week, I attended a resource meeting at the Stonebridge Country Club. Not once, but twice, I found myself listening to people explaining to other people what worker cooperatives are so I didn't have to. You can't buy this stuff for money. This is what happens when you show up consistently, making connections and making friends.
My job is to explain something that is unfamiliar to most people. When people begin to do my job for me, I think I have reached a milestone. It didn't…Continue
Added by Finn Mauritzen on September 7, 2018 at 2:30pm — No Comments
Starting a business on your own is really hard. Chances of success are really low. Fortunately, there is a better way. Start one together. Start a worker cooperative.
Added by Finn Mauritzen on May 14, 2018 at 10:34am — No Comments
Soon there will be more freelancers, contract or on-demand workers than traditionally employed workers. That presents some significant challenges, but there are solutions: Worker cooperatives.
Added by Finn Mauritzen on April 16, 2018 at 2:33pm — No Comments
This Maine espresso cafe/bookstore owner preserved her business, rewarded the employees who helped her build it and secured adequate retirement funds for herself by transferring ownership to her employees. And so can you.…Continue
Added by Finn Mauritzen on March 30, 2018 at 4:15pm — No Comments