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
You may think that your biggest concern when you want to retire is having enough money for you and your family to live a decent lifestyle. That is of course important, but have you thought about what you will be doing for the next 40 years or so? For some of us, our identity is totally tied to what we do as business owners or in our jobs. Will we still have meaning and purpose when that changes? What about friends? If they are still working, will they still have time to talk to us? Have you…Continue
Added by Finn Mauritzen on March 23, 2018 at 4:18pm — No Comments
When you retire, you really retire three times: Physically, financially and emotionally. For many, the emotional retirement can be the most challenging of the the three. You need to create a new identity for yourself and often a new social circle of friends. None of that is easy.
Added by Finn Mauritzen on February 26, 2018 at 6:27pm — No Comments
Maybe you chose to be a self-employed freelancer for the freedom to do things your way. Maybe you have discovered that you also have to do it all yourself. There is a better way: The Worker Cooperative. Join with others and enjoy the best of both worlds.
Added by Finn Mauritzen on January 4, 2018 at 11:00am — No Comments
There are three reasons you need your business to be able to run without you:
There are several other good reasons why you would want your business…Continue
Added by Finn Mauritzen on December 16, 2017 at 2:58pm — No Comments
As a business owner, you are probably focused on building your business. Every spare penny goes into making it grow so that some day you will be able to sell it and retire in comfort.That is how most people do it and I get the thinking behind that.
I think it is better to do it the other way around. Start with deciding when you want to retire, how you want to live and who will take over. Do it in that order, not the other way around. This article explains the steps:…Continue
Added by Finn Mauritzen on October 16, 2017 at 10:09am — No Comments
Do you have an exit plan? Congratulations. More than 8 of 10 of your colleagues do not. Do you want to sell to a third-party? Most do, but only 1 of 5 actually do. Some even end up closing altogether.
Failing to have an exit plan could seriously jeopardize your retirement. Please get started today. Selling to your employees is an increasingly popular option and there are several ways to do that. Some come with significant tax benefits. Others leave you in control till the last penny…Continue
Added by Finn Mauritzen on September 23, 2017 at 1:43pm — No Comments