with JC Maldonado
On this episode of Quit Getting Screwed, we have JC Maldonado from BizGroPartners chatting with us again, but this time we will be discussing growing value in your construction business. This is a hot topic for business owners for a slew of reasons and JC joins Karalynn Cromeens to break everything down and provide a game plan on what you can be doing to work on moving your business forward in a positive direction. When we last spoke to JC, he shared some of expertise on business acquisition processes and how it can be extremely beneficial for business acceleration. One of the main reasons to buy or sell a construction business is because there is room for growth. In many cases revising the staff, business model, and other key factors will bring value to the business. JC explains how to assess and provide solutions for business valuations.
The first order of business is determining “what exactly are you selling?” Certifying elements like income stream and business management that are transferable will be indicators of where your business currently stands. JC explains how net earnings are a big deal—not only because they measure profit, but also because they can gauge tax responsibilities. Karalynn mentions that a major concern for small business owners is not having to pay taxes or minimizing the amount of taxes that need to be paid. JC explains what can be done to overcome tax challenges starting with clean books. He also emphasizes the importance of being transparent in disclosing what your earnings are so that the value is made clear to potential buyers when the time comes.
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The next big component is customer retention. Do your consumers return and how often? This ties back to the idea of what you are selling and does it work. If your product or service proves to be a good one, you will likely have a higher customer retention rate which in turn improves the value of your business. This is something that should be monitored and reported on a regular basis because it contributes to the company’s predictable revenue. For buyers, this helps identify the risks and can make your business more or less favorable. In the amount of time that JC has been working in the industry, having these types of reports can make buying or selling a construction business less stressful and give it more credibility. The more credibility a business has, the stronger the leg to stand on when assessing its worth.
As JC digs into the process of increasing and maintaining business value, listeners are sure to get the encouragement they need to dive into the realm of selling your business. From business transferability to earnings, there are so many aspects that play into making your business more desirable. If you are interested in learning more on this topic, you can reach out to JC on LinkedIn or through his website. For more from Karalynn, follow The Cromeens Law Firm on Facebook, LinkedIn, or Instagram. You can also purchase the book that started it all, Quit Getting Screwed, on Amazon.
This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.