Rick's Business of Audiology Blog

What is the Value of your Business?

What is your business worth?  There are days when we wish we knew; perhaps today.

Here is a very useful short article to help you start your rational thinking process.

How much is your car worth?  Hmmm... Hard to know exactly; depends.  Was it just washed?  Just in a fender bender?  Making funny sounds?  What is the make, model, and color?  Where it is located?  Etc.   Perhaps most importantly: Who is the buyer?

It all makes a difference, and your business is similar. 

First Right of Refusal: Think before you act.

Friday's post about the business advice from vendors generated some comments. Good.

Several revolved around vendors asking for a first right of refusal on your business. This is a HUGE deal in the business world. It is potentially giving your family wealth to someone else.

Here is how I encourage you to think.

Financial Advice from Vendors - Bad Idea

Here is an article about suppliers providing financial advice.  It is worth a read.

In this short article Meidar points out the "obvious" problem of taking financial advice from the sales groups you are buying from.  Madoff's scheme to separate wealthy people from their money has made this a hot topic today in the popular press.  The idea has been around for as long as there have been people with money who are willing to wish as opposed to reason.

Three Points:

1. A lot of people have been taken this way. Slick sales people offer you a carrot, while stealing your farm. There is a saying a fool and his money are soon parted. This is often a way they part.
2. The people taken are often good at something, but not the finances. Called Marks in the industry. Audiologists as a group are very smart, honest, and trusting. The supplier company management may not be honest or trusting. It makes for an uneven playing field. If you are honest and trusting you are at risk for a smooth sales persons to woo you out of your inheritance and the family wealth you have worked so hard to create.
3. Successful people use fee for service. It removes the obvious conflict of interest.

http://www.forbes.com/2009/06/05/financial-advice-health-opinions-contributors-ubs-madoff.html

When you go to pay cash for a car, do you allow the sales person to examine all of your financial portfolio, business strategies, and take a look at all of your personal financial information before you even look at the car?

Obviously not.

I hope this helps you,

Rick

Mobile and 24 Hour are OK

As I write this the birds are chirping, and the sun is out. It is almost midnight and the campsite fire is puffing out enough smoke to keep the mosquitoes away.  I am about to pick up a good book.