Ellen McIlhenny - “The Smart and Savvy Exit – Building Value for Exit Part 5”
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I was reading an article the other day about America’s small business owner’s outlook in 2021, and it is pessimistic according to recently released survey data from the National Federation of Independent Businesses. They have something called the “optimism index”, which has suffered a huge drop – one driven in large part by concerns over tax policy.
Many say policymakers should be focused on targeted tax relief as opposed to oftentimes failed corporate bailouts.
According to the survey, its small business optimism index plummeted 5.5 points to 95.9 – which is below its historical average reading of 98. Nine out of ten index indicators declined – including sales expectations, earnings expectations, and likelihood of expansion.
Small businesses are concerned about potential new economic policy in the new administration and the increased spread of COVID-19 that is causing renewed government-mandated business closures across the nation.
So, what are they most concerned about?
The single most important problem facing small businesses was taxes – with 21 percent of survey respondents indicating this was their top concern, slightly ahead of quality of labor, which 21 percent also mentioned.
Third was government regulation, which was listed as the single most important problem by 14 percent of respondents.
While the previous administration did not deliver targeted tax cuts the new administration vows to raise taxes on many businesses. Clearly, a tax climate adversarial to small businesses would have a disastrous impact on our fragile economy – which desperately needs to relearn how to stand on its own two feet as opposed to being perpetually propped up by government subsidies and loose monetary policy.
Any of you who may be concerned, there are several lobbying organizations that you can join to help them be a voice for your concerns. A couple of those organizations are:
Show Objectives - The Why
This week is the fourth in a series of shows in which we will look at specific ways to build value in the company prior to exit.
Today we will be talking about how having good financial data readily available will help build value. Whether you are a few years from your planned exit or ready to enter the due diligence phase, perception of your company and you as the builder of the business will always be better if your financial house is in order.
1. Determining the accuracy of your numbers
5. The financial report checklist
6. The due diligence checklist for financial statements.
7. Owner’s’ Discretionary Income
Find My Podcast at https://pod.co/future-financial-confidence-with-ellen-mcilhenny
Next Week: Episode 8 of Season 4 – Another Interview..
Written by Ellen McIlhenny
Owner of CFO Plus Services, a Fractional CFO services firm which also offers Back Office Bookkeeping Services. Author of the business novel The Big Turnaround; How Bad Management Nearly Destroyed an Exceptional Company. Check it out at https://thebigturnaround.com
You can connect with Ellen on any of her #cfoplusservices platforms or firstname.lastname@example.org
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